GJMB GROWTH FUND
ANNUAL REPORT
JUNE 30, 2000
FUND ADVISOR:
GAMBLE, JONES, MORPHY & BENT
301 EAST COLORADO BOULEVARD, SUITE 802
PASADENA, CALIFORNIA 91101
FOR A PROSPECTUS AND MORE INFORMATION, INCLUDING CHARGES AND EXPENSES CALL
1-888-912-4562. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE FUND'S INCEPTION DATE IS
DECEMBER 31, 1998. DISTRIBUTED BY AMERIPRIME FINANCIAL SECURITIES, INC.
<PAGE>
GJMB GROWTH FUND
Fund Report dated June 30, 2000
Dear Fellow Shareholders:
We are pleased to present you with our Fund's investment results for the past
eighteen months. The Fund's average annual total return from December 31, 1998
(inception of the Fund) through June 30, 2000 was 17.50%, net of all fees. This
return was well ahead of the 13.27% return of the market capitalization weighted
Standard & Poor's 500 Index. We are especially proud of our results on a
trailing 12-month basis, due in large part to our superior stock selections in
the final quarter of 1999. The Fund's investment results are compared below with
the Standard & Poor's 500 Index.
RETURNS FOR THE PERIODS ENDED JUNE 30, 2000
Average Annual Total
Fund/Index Year-To-Date 1 Year Return Since Inception
---------- ------------ ------- ----------------------
GJMB Growth Fund 1.44% +15.61% +17.50%
S&P 500 Index -0.43% +7.25% +13.27%
Comparison of the change in value of a $10,000 investment in the
GJMB Growth Fund and the unmanaged S&P 500 Index
[OBJECT OMITTED]
GJMB Growth Fund S&P 500 Index
12/31/98 $10,000 $10,000
01/31/99 $10,110 $10,418
02/28/99 $ 9,990 $10,094
03/31/99 $10,330 $10,498
04/30/99 $10,670 $10,905
05/31/99 $10,270 $10,648
06/30/99 $11,020 $11,238
07/31/99 $10,720 $10,887
08/31/99 $10,900 $10,834
09/30/99 $10,800 $10,537
10/31/99 $11,610 $11,203
11/30/99 $11,980 $11,431
12/31/99 $12,559 $12,104
01/31/00 $12,257 $11,496
02/29/00 $12,036 $11,279
03/31/00 $12,820 $12,381
04/30/00 $12,830 $12,009
05/31/00 $12,368 $11,762
06/30/00 $12,740 $12,052
This chart shows the value of a hypothetical initial investment of $10,000 in
the Fund and the S&P 500 Index on December 31, 1998 (inception of the Fund) and
held through June 30, 2000. 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
PREDICTIVE OF FUTURE RESULTS.
PORTFOLIO OVERVIEW (as of June 30, 2000)
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<S> <C> <C> <C>
SECTOR WEIGHTINGS TEN LARGEST EQUITY HOLDINGS
----------------- ---------------------------
Capital Equipment & Services 5.7% Pfizer 5.2%
Consumer Cyclicals 4.3% Oracle Corporation 4.3%
Consumer Non-Cyclicals 6.6% Intel Corporation 3.9%
Energy/Oil Services 2.0% Microsoft Corp 3.9%
Financial Services 7.7% EMC Corp 3.9%
Health Care/Pharmaceuticals 18.6% General Electric 3.5%
Technology 29.5% Sun Microsystems 3.4%
Telecommunications 9.7% Lucent Technologies 3.4%
Cash Equivalents 15.9% Cisco Systems 3.3%
-------- Coca-Cola 3.3%
Total 100.0% --------
Total 38.1%
</TABLE>
OUR MARKET OUTLOOK
The economy continues to provide a strong fundamental backdrop for
investors. Declining interest rates due to the Federal Reserve's goal to keep
inflation in check, combined with the government's operating surplus, should
provide a scenario for continued long-term growth for our domestic economy.
Notwithstanding the encouraging investing landscape, we anticipate continued
rough treatment of those equities that fail to measure up to Wall Street's
expectations.
With the above components in place for the foreseeable future, we
intensify our focus on corporate earnings. The market has reacted dramatically
to both good and bad earnings results in the last several months. We believe in
being long-term investors and therefore tend to look beyond one or even two
quarters of earnings results as long as the long-term fundamentals remain
intact. Sometimes the best opportunities are found as a result of the
near-sighted nature of much of the investing arena. We try to take advantage of
price weakness in the quality stocks that we are enthusiastic about and hope
that they will be next year's successes for our fund.
Although common stocks continue to be expensive on a historical basis,
we feel long-term investors will be rewarded by our fund, which is designed to
own companies that have a proven track record over the long term. We feel that
the companies listed in our "Ten Largest Equity Holdings" are representative of
our total fund holdings.
We look forward to another successful year and are delighted that you
have chosen to invest in the Fund with us.
Best regards,
Thomas S. Jones Christopher E. Morphy
Principal-Gamble, Jones, Morphy & Bent Principal-Gamble, Jones, Morphy & Bent
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<TABLE>
<CAPTION>
GJMB GROWTH FUND
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<S> <C> <C>
COMMON STOCKS - 84.1% SHARES VALUE
CAPITAL EQUIPMENT & SERVICES - 5.7%
Honeywell International, Inc. 3,600 $ 121,275
General Electric Co. 8,650 458,450
Illinois Tool Works, Inc. 2,900 165,300
-----------------
745,025
-----------------
CONSUMER CYCLICALS - 4.3%
Ford Motor Co. 5,600 240,800
Home Depot, Inc. 6,200 309,612
Visteon Corp. (a) 733 8,890
-----------------
559,302
-----------------
CONSUMER NON-CYCLICALS - 6.6%
Coca-Cola Co. 7,500 430,781
Procter & Gamble Co. 7,400 423,650
-----------------
854,431
-----------------
ENERGY - 2.0%
Chevron Corp. 1,500 127,219
Royal Dutch Petroleum Co. (d) 2,200 135,437
-----------------
262,656
-----------------
FINANCIAL SERVICES - 7.7%
American International Group, Inc. 2,400 282,000
Bank of America Corp. 5,300 227,900
Fannie Mae 4,600 240,062
FleetBoston Financial Corp. 7,175 243,950
-----------------
993,912
-----------------
HEALTH CARE & PHARMACEUTICALS - 18.6%
Abbott Laboratories 8,525 379,895
American Home Products Corp. 4,400 258,500
Bristol-Myers Squibb Co. 5,800 337,850
Johnson & Johnson 4,175 425,328
Merck & Co., Inc. 4,350 333,319
Pfizer, Inc. 14,050 674,400
-----------------
2,409,292
-----------------
PREPACKAGED SOFTWARE - 8.2%
Microsoft Corp. (a) 6,300 504,000
Oracle Corp. (a) 6,610 555,653
-----------------
1,059,653
-----------------
GJMB GROWTH FUND
SCHEDULE OF INVESTMENTS - JUNE 30, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
TECHNOLOGY - 21.3%
Cisco Systems, Inc. (a) 6,800 $ 432,225
EMC Corp. (a) 6,500 500,094
Intel Corp. 3,825 511,355
Lucent Technologies, Inc. 7,500 444,375
Motorola, Inc. 14,800 430,125
Sun Microsystems, Inc. (a) 4,896 445,230
-----------------
2,763,404
-----------------
TELECOMMUNICATIONS - 9.7%
AT&T Corp. 9,100 287,788
Bell Atlantic Corp. 5,550 282,009
Vodafone Airtouch PLC (c) 7,300 302,494
Worldcom, Inc. (a) 8,400 385,350
-----------------
1,257,641
-----------------
TOTAL COMMON STOCKS (COST $9,530,890) 10,905,316
-----------------
PRINCIPAL
AMOUNT VALUE
Money Market Securities - 15.6%
Firstar Treasury Fund, 5.54% (b) (Cost $2,025,893) 2,025,893 2,025,893
-----------------
TOTAL INVESTMENTS - 99.7% (COST $11,556,783) 12,931,209
-----------------
OTHER ASSETS LESS LIABILITIES - 0.3% 36,016
-----------------
TOTAL NET ASSETS - 100.0% $ 12,967,225
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at June 30, 2000.
(c) American Depository Receipt
(d) New York registry shares
</TABLE>
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<TABLE>
<S> <C> <C>
GJMB GROWTH FUND JUNE 30, 2000
Statement of Assets & Liabilities
ASSETS
Investment in securities (cost $11,556,783) $ 12,931,209
Receivable for fund shares sold 31,962
Dividends receivable 8,133
Interest receivable 8,119
------------------
TOTAL ASSETS 12,979,423
LIABILITIES
Accrued investment advisory fee payable $ 12,195
Payable to custodian bank 3
-----------------
TOTAL LIABILITIES 12,198
------------------
NET ASSETS $ 12,967,225
==================
Net Assets consist of:
Paid in capital $ 11,144,350
Accumulated undistributed net investment income 33,577
Accumulated undistributed net realized gain on investments 414,872
Net unrealized appreciation on investments 1,374,426
------------------
NET ASSETS, for 1,022,389 shares $ 12,967,225
==================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($12,967,225 / 1,022,389) $ 12.68
==================
</TABLE>
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<TABLE>
<CAPTION>
GJMB GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 90,239
Interest income 62,184
---------------
TOTAL INCOME 152,423
EXPENSES
Investment advisory fee $ 114,130
Trustees' fees 2,055
------------------
Total expenses before reimbursement 116,185
Reimbursed expenses (2,055)
------------------
Total operating expenses 114,130
---------------
NET INVESTMENT INCOME 38,293
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 414,873
Change in net unrealized appreciation (depreciation)
on investment securities 903,367
------------------
Net gain on investment securities 1,318,240
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,356,533
===============
</TABLE>
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<TABLE>
<CAPTION>
GJMB GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<S> <C> <C>
YEAR ENDED PERIOD ENDED
JUNE 30, 2000 JUNE 30, 1999 (A)
---------------------- ----------------------
Increase (Decrease) in Net Assets
OPERATIONS
Net investment income $ 38,293 $ 6,675
Net realized gain on investment securities 414,873 34,482
Change in net unrealized appreciation (depreciation) 903,367 471,059
---------------------- ----------------------
Net increase in net assets resulting from operations 1,356,533 512,216
---------------------- ----------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (11,391) 0
From net realized gains (34,483) 0
---------------------- ----------------------
Total distributions (45,874) 0
---------------------- ----------------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 5,493,847 5,990,403
Shares issued in reinvestment of distributions 45,673 0
Shares redeemed (385,290) (283)
---------------------- ----------------------
Net increase in net assets resulting
from share transactions 5,154,230 5,990,120
---------------------- ----------------------
TOTAL INCREASE IN NET ASSETS 6,464,889 6,502,336
---------------------- ----------------------
NET ASSETS
Beginning of period 6,502,336 0
---------------------- ----------------------
End of period [including accumulated undistributed net
investment income of $33,577 and $6,675, respectively] $ 12,967,225 $ 6,502,336
====================== ======================
(a) December 31, 1998 (commencement of operations) to June 30, 1999.
</TABLE>
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<TABLE>
<CAPTION>
GJMB GROWTH FUND
FINANCIAL HIGHLIGHTS
<S> <C> <C>
YEAR ENDED PERIOD ENDED
JUNE 30, 2000 JUNE 30, 1999 (A)
-------------------- --------------------
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 11.02 $ 10.00
-------------------- --------------------
Income from investment operations
Net investment income 0.05 0.02
Net realized and unrealized gain 1.67 1.00
-------------------- --------------------
Total from investment operations 1.72 1.02
-------------------- --------------------
Less distributions:
From net investment income (0.02) 0.00
From net realized gains (0.04) 0.00
-------------------- --------------------
Total distributions (0.06) 0.00
-------------------- --------------------
Net asset value, end of period $ 12.68 $ 11.02
==================== ====================
TOTAL RETURN 15.61% 10.20% (c)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $12,967 $6,502
Ratio of expenses to average net assets 1.20% 1.20% (b)
Ratio of expenses to average net assets
before reimbursement 1.22% 1.25% (b)
Ratio of net investment income to
average net assets 0.40% 0.34% (b)
Ratio of net investment income to
average net assets before reimbursement 0.38% 0.28% (b)
Portfolio turnover rate 16.99% 24.26% (b)
(a) December 31, 1998 (commencement of operations) to June 30, 1999.
(b) Annualized
(c) For a period of less than a full year, the total return is not annualized.
</TABLE>
<PAGE>
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1. ORGANIZATION
GJMB Growth Fund (the "Fund") was organized as a series of the AmeriPrime
Funds (the "Trust") on October 22, 1998 and commenced operations on December 31,
1998. The Trust is established under the laws of Ohio by an Agreement and
Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). 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 Trust Agreement
permits the Board of Trustees (the "Board") 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.
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.
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.
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
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 advisor 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 year ended June
30, 2000 the Advisor received a fee of $114,130 from the Fund. The Advisor has
contractually agreed to reimburse other expenses to the extent necessary to
maintain total operating expenses at the rate of 1.20% through October 31, 2004.
For the year ended June 30, 2000, the Advisor reimbursed expenses of $2,055.
There is no assurance that such reimbursement will continue in the future.
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 Advisor 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 year ended
June 30, 2000, the Administrator received fees of $30,000 from the Advisor for
administrative services provided to the Fund.
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 Advisor of $1.20 per shareholder (subject to a minimum
monthly fee of $750). For the year ended June 30, 2000, Unified received fees of
$13,002 from the Advisor for transfer agent services provided to the Fund. For
its services as fund accountant, Unified receives an annual fee from the Advisor
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 million to $100 million). For the year ended June
30, 2000, Unified received fees of $15,000 from the Advisor for fund accounting
services provided to the Fund.
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. There were no payments made to the
Distributor for the year ended June 30, 2000. Certain members of management of
the Administrator and the Distributor are also members of management of the
AmeriPrime Trust.
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
NOTE 4. SHARE TRANSACTIONS
As of June 30, 2000, there were an unlimited number of authorized shares
for the Fund. Paid in capital at June 30, 2000 was $11,144,350.
Transactions in shares were as follows:
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<S> <C> <C> <C> <C>
FOR THE YEAR ENDED FOR THE PERIOD DECEMBER 31, 1998
JUNE 30, 2000 (COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 1999
SHARES DOLLARS SHARES DOLLARS
Shares sold 460,218 $5,493,847 589,954 $5,990,403
Shares issued in
reinvestment of
dividends 3,651 45,673 0 0
Shares redeemed (31,407) (385,290) (27) (283)
--------- ----------- --------- -----------
432,462 $5,154,230 589,927 $5,990,120
========= =========== ========= ===========
</TABLE>
<PAGE>
NOTE 5. INVESTMENTS
For the year ended June 30, 2000, purchases and sales of investment securities,
other than short-term investments, aggregated $5,186,176 and $1,400,994,
respectively. As of June 30, 2000, the gross unrealized appreciation for all
securities totaled $2,295,215 and the gross unrealized depreciation for all
securities totaled $920,789 for a net unrealized appreciation of $1,374,426. The
aggregate cost of securities for federal income tax purposes at June 30, 2000
was $11,556,783.
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, 2000, Charles
Schwab & Co. owned of record, in aggregate, more than 94% of the Fund.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
GJMB Growth Fund (a series of the AmeriPrime Funds)
We have audited the accompanying statement of assets and liabilities of the GJMB
Growth Fund, including the schedule of portfolio investments, as of June 30,
2000, and the related statement of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
then ended, and the period from December 31, 1998 to June 30, 1999 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 audits 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 June 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 audits 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
GJMB Growth Fund as of June 30, 2000, the results of its operations for the year
then ended, the changes in its net assets and the financial highlights for the
year then ended, and the period from December 31, 1998 to June 30, 1999 in the
period then ended, in conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
July 19, 2000
<PAGE>
June 30, 2000
Dear Fellow Shareholders,
Since inception, August 5, 1996, the Fund has returned an average of
+14.02% annually to shareholders. Over the same time period, our benchmark, the
Russell Mid-Cap Value Index, has returned +12.74%. Year-to-date, the Fund has
returned +5.30% versus our benchmark's return of -0.69%. Our returns continue to
excel relative to our peers and benchmarks.
<TABLE>
<CAPTION>
RETURNS FOR THE PERIODS ENDED JUNE 30, 2000
<S> <C> <C> <C> <C>
Average Annual
Return Since
Fund/Index YTD 1-Year 3-Year Inception
IMS Capital Value Fund +5.30% +6.39% +10.28% +14.02%
Russell Mid-Cap Value Index -.69% -7.91% +6.95% +12.74%
Lipper Multi-Cap Value Category -.52% -4.30% +7.91% +13.01%
</TABLE>
According to Lipper, our returns rank in the top quartile of our
category over the last one and three-year periods. Our one-year return ranked in
the 15th percentile and our three-year return ranked in the 25th percentile of
our category (Lipper Multi-Cap Value, 482 funds).
The objective of the IMS Capital Value Fund is long-term growth. The
Fund invests in the stocks of quality, undervalued companies that are
demonstrating positive business momentum. Our research is concentrated on
companies that fall into one or more of our seven STRATEGIC FOCUS AREAS; these
are industries or sectors of the market that are particularly opportunistic due
to demographic or other long-term trends. While the Fund is concentrated in the
stocks of just 35 companies, it's also well diversified, with representation in
every major sector of the economy. We choose to limit the number of holdings to
avoid diluting the impact of our best research.
Thank you for joining us as shareholders in the IMS Capital Value Fund.
We appreciate your confidence and trust. We continue to strive towards our goal
of becoming one of the most successful and respected value funds in the
industry.
Sincerely,
Carl W. Marker
Portfolio Manager
(Graphic Omitted)
IMS Capital Value Fund Russell Midcap Value Index
8/5/96 $10,000 $10,000
9/30/96 10,500 10,504
12/31/96 11,141 11,410
3/31/97 11,721 11,604
6/30/97 12,451 13,065
9/30/97 13,221 14,732
12/31/97 11,888 15,331
3/31/98 13,602 16,863
6/30/98 13,236 16,430
9/30/98 11,210 14,186
12/31/98 13,463 16,110
3/31/99 13,980 15,609
6/30/99 15,694 17,354
9/30/99 13,624 15,508
12/31/99 15,857 16,093
3/31/00 17,393 16,255
6/30/00 16,698 15,982
This graph shows the value of a hypothetical initial investment of $10,000 in
the Fund and the Russell Mid-Cap Value Index on August 5, 1996 (inception of the
Fund) and held through June 30, 2000. 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.
TOP TEN HOLDINGS - JUNE 30, 2000
American Power Conversion 5.28%
IBM 4.73%
Citigroup 4.68%
Intel 4.62%
Johnson & Johnson 4.40%
Oracle Corp. 4.35%
Chiron 4.10%
T. Rowe Price 3.85%
Disney 3.35%
Symantec 3.26%
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<S> <C> <C>
COMMON STOCKS - 97.8% SHARES VALUE
BANKS - 4.7%
Citigroup, Inc. 9,000 $ 542,250
--------------
CHEMICALS - 1.9%
DuPont (E.I.) de Nemours & Co. 5,000 218,750
--------------
COMMUNICATIONS EQUIPMENT - 3.1%
Loral Space & Communications Ltd. (a) 15,000 104,063
Motorola, Inc. 9,000 261,562
--------------
365,625
--------------
COMPUTER SERVICES & SOFTWARE - 17.5%
DST Systems, Inc. (a) 4,000 304,500
International Business Machines Corp. 5,000 547,812
Novell, Inc. (a) 32,000 296,000
Oracle Corp. (a) 6,000 504,375
Symantec Corp. (a) 7,000 377,563
--------------
2,030,250
--------------
DRUGS & PHARMACEUTICALS - 4.1%
Chiron, Inc. (a) 10,000 475,000
--------------
ELECTRIC UTILITY - 2.9%
Niagara Mohawk Holdings, Inc. (a) 24,000 334,500
--------------
ELECTRICAL EQUIPMENT - 5.3%
American Power Conversion, Inc. (a) 15,000 612,187
--------------
ELECTRONICS - 4.6%
Intel Corp. 4,000 534,750
--------------
ENTERTAINMENT - 3.3%
Disney (Walt) Co. 10,000 388,125
--------------
FOODS - 3.1%
Wm. Wrigley Jr. Company 4,500 360,844
--------------
GENERAL MEDICAL & SURGICAL HOSPITALS - 2.3%
Tenet Healthcare Corp. (a) 10,000 270,000
--------------
HEALTH - DIVERSIFIED - 4.4%
Johnson & Johnson 5,000 509,375
--------------
HOME HEALTH CARE - 2.3%
Gentiva Health Services, Inc. (a) 33,000 268,125
--------------
HOUSEHOLD PRODUCTS - 3.7%
Kimberly-Clark Corp. 5,000 286,875
Sunbeam Corp. (a) 40,000 137,500
--------------
424,375
--------------
INSURANCE - 1.7%
Conseco, Inc. 20,000 195,000
--------------
LEISURE DURABLES & TOYS - 4.0%
Marvel Enterprises, Inc. (a) 40,000 247,500
Mattel, Inc. 16,000 211,000
--------------
458,500
--------------
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS - JUNE 30, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
Miscellaneous Shopping Goods Stores - 1.2%
Office Depot, Inc. (a) 23,000 $ 143,750
--------------
NETWORKING - 2.0%
3Com Corp. (a) 4,000 230,500
--------------
OIL & GAS - 5.2%
Pennzoil-Quaker State, Inc. 28,000 337,750
Texaco, Inc. 5,000 266,250
--------------
604,000
--------------
POLLUTION CONTROL - 3.0%
Waste Management, Inc. 18,000 342,000
--------------
SAW MILLS, PLANNING MILLS, GENERAL - 1.6%
Louisiana Pacific Corp. 17,000 184,875
--------------
SECURITIES INDUSTRY - 3.9%
T. Rowe Price Associates, Inc. 10,500 446,250
--------------
SERVICES - 5.3%
Block (H&R), Inc. 9,000 291,375
Cendant Corp. (a) 23,000 322,000
--------------
613,375
--------------
SPECIALTY - 2.5%
Toys R Us, Inc. (a) 20,000 291,250
--------------
TELEPHONE SERVICES - 2.2%
AT&T Corp. 8,000 253,000
--------------
TRUCKING & FREIGHT - 2.0%
FedEx Corp. (a) 6,000 228,000
--------------
TOTAL COMMON STOCKS (COST $8,820,061) 11,324,656
--------------
PRINCIPAL
AMOUNT VALUE
Money Market Securities - 3.0%
Firstar Treasury Fund, 5.54% (b) (Cost $352,351) 352,351 $ 352,351
--------------
TOTAL INVESTMENTS - 100.8% (COST $9,172,412) 11,677,007
--------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.8%) (92,433)
--------------
TOTAL NET ASSETS - 100.0% $ 11,584,574
==============
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at June 30, 2000.
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
IMS CAPITAL VALUE FUND JUNE 30, 2000
Statement of Assets & Liabilities
ASSETS
Investment in securities (cost $9,172,412) $ 11,677,007
Dividends receivable 7,990
Interest receivable 5,480
Prepaid Insurance 145
Deferred organization costs 9,982
------------------
TOTAL ASSETS 11,700,604
LIABILITIES
Accrued investment advisory fee payable, net of waiver $ 3,855
Payable for fund shares redeemed 102,301
Other payables and accrued expenses 9,874
-----------------
TOTAL LIABILITIES 116,030
------------------
NET ASSETS $ 11,584,574
==================
Net Assets consist of:
Paid in capital $ 8,800,927
Accumulated undistributed net realized gain on investments 279,052
Net unrealized appreciation on investments 2,504,595
------------------
NET ASSETS, for 832,670 shares $ 11,584,574
==================
NET ASSET VALUE
Offering price and redemption price per share ($11,584,574 / 832,670) $ 13.91
==================
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
IMS CAPITAL VALUE FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
INVESTMENT INCOME
Dividend income $ 116,193
Interest income 23,439
-------------------
TOTAL INCOME 139,632
EXPENSES
Investment advisory fee $ 142,721
Administration fees 23,275
Transfer agent fees 18,363
Pricing & bookkeeping fees 16,862
Legal fees 9,939
Custodian fees 5,705
Audit fees 5,000
Amortization of organizational expenses 4,729
Shareholder reports 5,815
Trustees' fees 2,054
Registration fees 417
Insurance 286
------------------
Total expenses before reimbursement 235,166
Reimbursed expenses (55,066)
------------------
Total operating expenses 180,100
-------------------
NET INVESTMENT LOSS (40,468)
-------------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 333,492
Change in net unrealized appreciation (depreciation)
on investment securities 431,787
------------------
Net gain on investment securities 765,279
-------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 724,811
===================
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR PERIOD
ENDED ENDED
JUNE 30, JUNE 30,
2000 1999 (A)
----------------- ------------------
Increase (Decrease) in Net Assets
OPERATIONS
Net investment loss $ (40,468) $ (3,035)
Net realized gain on investment securities 333,492 1,172,251
Net realized gain on options transactions 0 2,923
Change in net unrealized appreciation (depreciation) 431,787 1,803,897
----------------- ------------------
Net increase in net assets resulting from operations 724,811 2,976,036
----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain (1,175,174) 0
----------------- ------------------
Total distributions (1,175,174) 0
----------------- ------------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 918,215 607,468
Shares issued in reinvestment of distributions 1,165,509 0
Shares redeemed (1,656,678) (3,499,602)
----------------- ------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS 427,046 (2,892,134)
----------------- ------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (23,317) 83,902
Net Assets
Beginning of period 11,607,891 11,523,989
----------------- ------------------
End of period [including accumulated undistributed net
investment income of $0 and $0, respectively] $ 11,584,574 $ 11,607,891
================= ==================
(a) For the period November 1, 1998 through June 30, 1999
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
IMS CAPITAL VALUE FUND
FINANCIAL HIGHLIGHTS
PERIOD
YEAR ENDED PERIOD ENDED YEARS ENDED OCTOBER 31, ENDED
JUNE 30, JUNE 30, ------------------------------ OCTOBER 31,
2000 1999 (C) 1998 1997 1996 (D)
------------- ------------- ----------- ----------- -----------
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 14.56 $ 11.28 $ 12.06 $ 10.76 $ 10.00
------------- ------------- ----------- ----------- -----------
Income from investment operations:
Net investment income (loss) (0.05) 0.00 (0.06) (0.08) (0.01)
Net realized and unrealized gain 0.88 3.28 0.12 1.38 0.77
------------- ------------- ----------- ----------- -----------
Total from investment operations 0.83 3.28 0.06 1.30 0.76
------------- ------------- ----------- ------------- -----------
Less Distributions
From net investment income 0.00 0.00 (0.03) 0.00 0.00
From net realized gain (1.48) 0.00 (0.81) 0.00 0.00
------------- ------------ ----------- ------------- -----------
Total Distributions (1.48) 0.00 (0.84) 0.00 0.00
------------- ------------ ----------- ------------- -----------
Net asset value, end of period $ 13.91 $ 14.56 $ 11.28 $ 12.06 $ 10.76
============ ============ =========== ============= ===========
TOTAL RETURN 6.39% 29.08% (b) 2.27% 12.08% 7.60% (b)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $11,585 11,608 $11,524 $9,932 $4,741
Ratio of expenses to average net assets 1.59% 1.59% (a) 1.73% 1.97% 1.84% (a)
Ratio of expenses to average net assets
before reimbursement 2.08% 2.50% (a) 2.34% 2.54% 3.92% (a)
Ratio of net investment income (loss) to
average net assets (0.36)% (0.04)% (a) (0.53)% (0.64)% (0.25)% (a)
Ratio of net investment income (loss) to
average net assets before reimbursement (0.84)% (0.95)% (a) (1.14)% 1.20)% (2.32)% (a)
Portfolio turnover rate 75.69% 68.16% (a) 81.74% 34.76% 3.56% (a)
(a) Annualized
(b) For a period of less than a full year, the total return is not annualized.
(c) For the period November 1, 1999 through June 30, 1999
(d) August 5, 1996 (commencement of operations) to October 31, 1996
</TABLE>
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1. ORGANIZATION
IMS Capital Value Fund (the "Fund") was organized as a series of the
AmeriPrime Funds (the "Trust") on July 30, 1996, and commenced operations on
August 5, 1996. The Trust is established under the laws of Ohio by an Agreement
and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). 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 Trust Agreement permits the Board
of Trustees (the "Board") 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 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.
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. Generally accepted
accounting principles require that permanent financial reporting tax differences
relating to shareholder distributions be reclassed to paid-in capital.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains IMS Capital Management, Inc. (the "Advisor") to manage
theFund'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
1.26% of the average daily net assets of the Fund. For the year ended June 30,
2000 the Advisor received fees of $142,721 from the Fund. The Advisor has
contractually agreed to reimburse Fund expenses to the extent necessary to
maintain total operating expenses at the rate of 1.59% of net assets through
October 31, 2004. For the year ended June 30, 2000 the Advisor reimbursed
expenses of $55,066. 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 months of July and August 1999, the Administrator received a
monthly fee from the Advisor 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). Currently the Administrator receives a monthly fee
from the Advisor equal to an annual rate of 0.20% of the Fund's assets with no
monthly minimum. For the year ended June 30, 2000 the Administrator received
fees of $23,275 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 for the year ended June 30, 2000. Certain members of
management of the Administrator and the Distributor are also members of
management of the Trust.
NOTE 4. SHARE TRANSACTIONS
As of June 30, 2000, there were an unlimited number of authorized shares
for the Fund. Paid in capital at June 30, 2000 was $8,800,927.
Transactions in shares were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999
SHARES DOLLARS SHARES DOLLARS
Shares sold 67,647 $918,215 45,949 $607,468
Shares issued in
reinvestment of 89,723 1,165,509 0 0
distributions
Shares redeemed (121,795) (1,656,678) (270,632) (3,499,602)
--------- ------------ --------- ------------
35,575 $427,046 (224,683) $(2,892,134)
========= ============ ========= ============
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
NOTE 5. INVESTMENTS
For the year ended June 30, 2000, purchases and sales of investment
securities, other than short-term investments, aggregated $8,216,569 and
$9,066,048, respectively. The gross unrealized appreciation for all securities
totaled $2,831,707 and the gross unrealized depreciation for all securities
totaled $327,112 for a net unrealized appreciation of $2,504,595. The aggregate
cost of securities for federal income tax purposes at June 30, 2000 was
$9,172,412.
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. SUBSEQUENT EVENT
As of July 1, 2000, Unified Fund Services, Inc., 431 N. Pennsylvania St.,
Indianapolis, IN 46204 ("Unified"), a wholly owned subsidiary of Unified
Financial Services, Inc., acts as the Fund's transfer agent and, in such
capacity, maintains the records of each shareholder's account, answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of the Fund's shares, acts as dividend and distribution disbursing
agent and performs other shareholder service functions. For its services as
transfer agent, Unified receives a monthly fee from the Advisor of $1.20 per
shareholder (subject to a minimum monthly fee of $750). In addition, Unified
provides the Fund with fund accounting services, which includes certain monthly
reports, record keeping and other management-related services. For its services
as fund accountant, Unified receives an annual fee from the Advisor equal to
0.0275% of the Fund's assets up to $100 million, and 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 million to $100 million). Prior to July 1, 2000,
American Data Services, Inc. ("ADS"), Hauppauge Corporate Center, 150 Motor
Parkway, Hauppauge, New York 11788, acted as the Fund's transfer agent and fund
accountant.
AmeriPrime Financial Services, Inc. is also a wholly owned subsidiary of
Unified Financial Services, Inc., and as such, this relationship would require
that Unified Financial Services, Inc. be considered an affiliate of the Fund.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
IMS Capital Value Fund (a series of the AmeriPrime Funds)
We have audited the accompanying statement of assets and liabilities of the IMS
Capital Value Fund, including the schedule of portfolio investments, as of June
30, 2000, and the related statement of operations for the year then ended, the
statement of changes in net assets, and the financial highlights for each of the
periods indicated. 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 audits 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 June 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 audits 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
IMS Capital Value Fund as of June 30, 2000, the results of its operations for
the year then ended, the changes in its net assets, and the financial highlights
for each of the periods indicated, in conformity with generally accepted
accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
July 19, 2000
<PAGE>
AUXIER FOCUS FUND UPDATE
BY JEFF AUXIER
Dear Fellow Shareholders:
INVESTMENT RESULTS - FISCAL YEAR ENDED JUNE 2000
The Auxier Focus Fund (the "Fund"), ticker symbol AUX1Z, ended its June fiscal
year with a (0.47)% return since commencement of investment activities. It
should be noted that the Fund did not start investing in accordance with its
investment objective until October 1, 1999. Therefore, the true time frame is
not twelve months, but closer to six or seven months. The Fund is not fully
invested in common stocks. Your Fund manager is currently the largest
shareholder. I treat your money like my own.
Total Return
Periods Ending 6/30/00 AUX1Z S&P 500
--------------------------------------------------------------------------------
Year to date (2.63)% (0.43)%
Since commencement of investment
in accordance with investment objective (10/01/99) (0.47)% 14.38%
Date Auxier Focus Fund - $9,953 S&P 500 Index - $11,438
10/1/99 10000.00 10000.00
10/31/99 10377.36 10632.60
11/30/99 10188.68 10848.67
12/31/99 10222.24 11487.25
1/31/00 10341.81 10910.21
2/29/00 10062.84 10703.85
3/31/00 10501.22 11750.33
4/30/00 10162.47 11396.97
5/30/00 9943.28 11163.03
6/30/00 9953.24 11438.23
|X| Past performance is not indicative of future performance
|X| The Auxier Focus Fund's historical results are net of all expenses, versus
the gross market benchmark (the S&P 500 Index). Investors are reminded that
when trying to achieve benchmark returns, investment management fees,
transaction costs and execution costs will be incurred.
|X| The S&P 500 Index is an unmanaged index of 500 selected common stocks, most
of which are listed on the New York Stock Exchange. The Index is adjusted
for dividends and weighted toward stocks with large market capitalizations.
|X| Commencement of investment in accordance with investment objective:
October 1, 1999
APPROACH
My goal is to first identify fundamentally strong, well-managed companies, and
then determine a price that provides for a compelling risk/reward ratio. I
always start with an assessment of the downside risk. In order to keep the
compounding process going, it is imperative to first avoid permanent capital
loss.
COMMENTARY AND OUTLOOK
Over the past 12 months the Federal Reserve Board raised interest rates by
1.75%. This has put pressure on equity valuations and helped to wring out
excesses in the speculative areas of the market. Recently, evidence is appearing
that points to a slower, more moderate economic pace. Housing starts and
unemployment numbers are slowing, while productivity figures look good. If
interest rates have peaked, where is one to invest?
Salomon Smith Barney went back through 30 years of data to identify significant
peaks in interest rates using the 10-year treasury yield. The table below shows
the returns following the peak in rates.
S&P 500 TOTAL RETURN FOLLOWING A REVERSAL IN YIELDS
Date Total Return - 6 months Total Return - 12 Months
---- ----------------------- ------------------------
05-02-80 +23.9% +32.1%
11-06-81 +0.02% +22.7%
08-03-84 +12.6% +23.3%
01-15-88 +10.0% +16.8%
02-10-95 +16.8% +39.8%
Average Returns: 12.7% 26.9%
The best performing sector after interest rates peaked was the financial
sector-- up an average of 33.4% versus 17.56% for any 12-month period. Given
this historical track record, together with the fact that the financial sector
currently trades for roughly half the valuation of the S&P 500 and less then 1/5
of the NASDAQ 100, it makes sense to be currently overweighted in this sector.
An additional study was conducted that spanned the past 45 years. An analysis
was made on the effects of both falling interest rates and slowing earnings
growth on the performance of the equity market. Falling interest rates resulted
in above average equity returns while rising interest rates resulted in below
average returns. Surprisingly, liquidity in the form of lower interest rates was
shown to be more important than earnings growth in driving equity market
performance.
We hope these investments as well as other first tier companies purchased at
attractive prices will contribute to future rewards for our shareholders. Thank
you for your continuing support.
J. Jeffrey Auxier
Portfolio Manager
<PAGE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Schedule of Investments - June 30, 2000
<S> <C> <C>
Common Stocks - 50.1% Shares Value
Auto Manufacturer - 0.3%
General Motors Corp. 75 $ 4,355
-----------------
Banks - 3.3%
Fleet Boston Financial Corp. 400 13,600
Firstar Corp. 200 4,200
Bank One Corp. 200 5,375
U.S. Bancorp 600 11,550
Washington Mutual, Inc. 300 8,794
-----------------
43,519
-----------------
Biological Products - 2.6%
Amgen, Inc. (a) 500 35,125
-----------------
Broadcasting & Publishing - 1.7%
Charter Communications, Inc. - Class A (a) 1,200 19,725
TV Guide, Inc. - Class A (a) 100 3,425
-----------------
23,150
-----------------
Building Materials - 0.7%
Home Depot, Inc. 100 4,994
Lowe's Companies, Inc. 100 4,106
-----------------
9,100
-----------------
Communications Equipment - 1.2%
Cox Communications, Inc. - Class A (a) 100 4,631
Lucent Technologies, Inc. 200 11,850
-----------------
16,481
-----------------
Computer Equipment & Services - 0.4%
Ceridian, Corp. (a) 200 4,825
-----------------
Computer Systems - 2.5%
International Business Machines, Inc. 300 32,869
-----------------
Computers-Networking - 0.7%
Auspex Systems, Inc. (a) 2,000 9,875
-----------------
Data Telecommunications - 0.3%
SBC Communications, Inc. 100 4,325
-----------------
Delivery Services - 0.3%
Fed Ex Corp. (a) 100 3,800
-----------------
Electronics - 2.0%
Motorola, Inc. 900 26,156
-----------------
Entertainment - 0.5%
Carnival Corp. 300 5,813
-----------------
</TABLE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Schedule of Investments - June 30, 2000 - continued
<S> <C> <C>
Common Stocks - continued Shares Value
Financial Services - 6.9%
Associates First Capital Corp. - Class A 500 $ 11,125
Berkshire Hathaway, Inc. - Class B (a) 7 12,320
Fannie Mae 100 5,219
Federal Home Loan Mortgage Corp. 1,100 44,550
H&R Block, Inc. 600 19,425
-----------------
92,639
-----------------
Food & Beverage - 1.5%
Albertson's Inc. 150 4,988
Kroger Corp. (a) 500 10,969
Safeway, Inc. (a) 100 4,500
-----------------
20,457
-----------------
Foreign Telecommunications - 2.9%
Telefonica, S.A. (c) 29 1,851
Telstra Corp. Ltd. (c) 100 2,069
Telefonos De Mexico S.A. (c) 600 34,275
-----------------
38,195
-----------------
Healthcare Services - 2.6%
American Home Products, Inc. 200 11,750
Bristol-Myers Squibb, Inc. 400 23,300
-----------------
35,050
-----------------
Insurance - 0.2%
Allstate Corp. 100 2,294
-----------------
Internet - 0.6%
America Online, Inc. (a) 150 7,903
-----------------
Office Products - 0.4%
Xerox Corp. 300 6,000
-----------------
Oil & Natural Gas - 3.9%
Enron Corp. 800 51,600
-----------------
Paper & Forest Products - 0.8%
Willamette Industries, Inc. 400 10,900
-----------------
Personal Care - 0.5%
Gillette Co. 200 6,988
-----------------
Pharmaceutical - 0.4%
Pfizer, Inc. 100 4,800
-----------------
Restaurants - 0.7%
McDonald's Corp. 300 9,806
-----------------
Retail - 0.1%
Successories, Inc. (a) 1,000 1,781
-----------------
</TABLE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Schedule of Investments - June 30, 2000 - continued
<S> <C> <C>
Common Stocks - continued Shares Value
Software Products - 2.1%
Microsoft Corp. (a) 350 $ 28,000
-----------------
Steel - 0.7%
Precision Castparts Corp. 200 9,050
-----------------
Telecommunications - 8.9%
Centurytel, Inc. 100 2,906
Sprint Corp. 100 5,181
Global Crossing Ltd. (a) 200 5,262
General Motors Corp. - Class H (a) 26 2,281
Loral Space & Communications, Ltd. (a) 1,900 13,062
Nextlink Communications, Inc. (a) 200 7,587
AT&T Corp. 1,300 41,113
Williams Communications Group, Inc. (a) 100 3,313
WorldCom, Inc. (a) 825 37,847
-----------------
118,552
-----------------
Transportation - 0.4%
United Parcel Services, Inc. 100 5,900
TOTAL COMMON STOCKS (Cost $725,056) 669,308
-----------------
Unit Investment Trust - 0.4%
Amex Financial Select SPDR 200 4,750
-----------------
TOTAL UNIT INVESTMENT TRUST (Cost $4,775)
Preferred Stocks - 0.4%
Telecomunicacoes Brasileiras S.A. - Telebras (c) 50 4,856
Tele Norte Leste Participacoes S.A. (c) 5 118
-----------------
TOTAL PREFERRED STOCK (Cost $4,109) 4,974
-----------------
Principal
Value
Money Market Securities - 51.5%
Firstar Treasury Fund, 5.44% (b) (Cost $688,477) $ 688,477 688,477
-----------------
TOTAL INVESTMENTS - 102.4% (Cost $1,422,417) 1,367,509
-----------------
Liabilities in excess of other assets - (2.4%) (31,467)
-----------------
TOTAL NET ASSETS - 100.0% $ 1,336,042
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
June 30, 2000.
(c) American Depository Receipt
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Auxier Focus Fund June 30, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $1,422,417) $ 1,367,509
Cash 2,098
Receivable for fund shares sold 258
Dividends receivable 637
Interest receivable 2,861
------------------
Total assets 1,373,363
Liabilities
Accrued investment advisory fee $ 2,386
Payable for securities purchased 34,935
-----------------
Total liabilities 37,321
------------------
Net Assets $ 1,336,042
==================
Net Assets consist of:
Paid in capital $ 1,374,313
Accumulated undistributed net investment income 10,662
Accumulated undistributed net realized gain on investments 5,975
Net unrealized depreciation on investments (54,908)
------------------
Net Assets, for 133,686 shares $ 1,336,042
==================
Net Asset Value
Offering price and redemption price per share ($1,336,042/ 133,686) $ 9.99
==================
</TABLE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Statement of Operations for the period July 9, 1999
(Commencement of Operations) to June 30, 2000
<S> <C> <C>
Investment Income
Dividend income $ 3,522
Interest income 20,923
-----------------
Total Income 24,445
Expenses
Investment advisory fee $ 10,346
Trustees' fees 2,055
------------------
Total expenses before reimbursement 12,401
Reimbursed expenses (2,055)
------------------
Total operating expenses 10,346
-----------------
Net Investment Income 14,099
-----------------
Realized & Unrealized Gain (Loss)
Net realized gain on investment securities 5,975
Change in net unrealized depreciation
on investment securities (54,908)
------------------
Net loss on investment securities (48,933)
-----------------
Net decrease in net assets resulting from operations $ (34,834)
=================
</TABLE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Statement of Changes in Net Assets for the period July 9, 1999
(Commencement of Operations) to June 30, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 14,099
Net realized gain on investment securities 5,975
Change in net unrealized depreciation (54,908)
-----------------
Net decrease in net assets resulting from operations (34,834)
-----------------
Distributions to shareholders
From net investment income (3,437)
-----------------
Total distributions (3,437)
-----------------
Share Transactions
Net proceeds from sale of shares 1,370,891
Shares issued in reinvestment of distributions 3,437
Shares redeemed (15)
-----------------
Net increase in net assets resulting
from share transactions 1,374,313
-----------------
Total increase in net assets 1,336,042
-----------------
Net Assets
Beginning of period 0
-----------------
End of period [including accumulated undistributed net
investment income of $10,662] $ 1,336,042
=================
</TABLE>
<TABLE>
<CAPTION>
Auxier Focus Fund
Financial Highlights for the period July 9, 1999
(Commencement of Operations) to June 30, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.18
Net realized and unrealized loss (0.16)
--------------
Total from investment operations 0.02
--------------
Less distributions:
Distributions from net investment income (0.03)
Distributions from net realized gains 0.00
--------------
Total distributions (0.03)
--------------
Net asset value, end of period $ 9.99
==============
Total Return (0.47)(a)(b)
Ratios and Supplemental Data
Net assets, end of period (000) $ 1,336
Ratio of expenses to average net assets 1.35% (c)
Ratio of expenses to average net assets
before reimbursement 1.62% (c)
Ratio of net investment income to
average net assets 1.84% (c)
Ratio of net investment income to
average net assets before reimbursement 1.57% (c)
Portfolio turnover rate 192.04% (c)
(a) For periods of less than a full year, total return is not annualized.
(b) Total return is calculated starting October 1, 1999
which is the date the Fund began investing in accordance with its investment
objectives.
(c) Annualized
</TABLE>
<PAGE>
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1. ORGANIZATION
The Auxier Focus Fund (the "Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust") on March 22, 1999 and
commenced operations on July 9, 1999. 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. The Fund is one of the series of funds currently authorized
by the Trustees.
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 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.
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 of 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 accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Auxier Asset Management, LLC, 8050 S. W. Warm Springs, Suite 130, Tualatin,
OR 97062, serves as investment advisor to the Fund. As of June 30, 2000, the
advisor manages approximately $175 million in assets. J. Jeffrey Auxier is
President and Chief Investment Officer of the advisor and is 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 commissions, taxes,
borrowing costs, fees and expenses of non-interested person trustees, and
extraordinary expenses. 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 1.35% of the average daily net assets of the Fund. It
should be noted that most investment companies pay their own operating expenses
directly, while the Fund's expenses, except those specified above, are paid by
the Adviser. For the period from July 9, 1999 (commencement of operations)
through June 30, 2000, the Advisor received a fee of $10,346 from the Fund. The
Advisor has voluntarily agreed to limit the total expenses of the Fund
(excluding borrowing costs, taxes, brokerage commissions and extraordinary
expenses) to an annual rate of 1.35% of the average net assets of the Fund. For
the period July 9, 1999 (commencement of operations) through June 30, 2000, the
Advisor reimbursed expenses of $2,055. There is no assurance that such
reimbursement will continue in the future.
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 to provide the Fund with administrative services,
including all regulatory reporting and necessary office equipment and personnel.
The Administrator receives a monthly fee 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 July 9, 1999 (commencement of
operations) through June 30, 2000, the Administrator received fees of $20,625
from the Advisor for administrative services provided to the Fund.
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 Advisor of $1.20 per shareholder (subject to a minimum
monthly fee of $750). For the period July 9, 1999 (commencement of operations)
through June 30, 2000, Unified received fees of $11,041 for transfer agent
services provided to the Fund. For its services as fund accountant, Unified
receives an annual fee from the Advisor 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 million to
$100 million). For the period July 9, 1999 (commencement of operations) through
June 30, 2000, Unified received fees of $8,300 for fund accounting services
provided to the Fund.
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. No payments were made to the
Distributor for the period July 9, 1999 (commencement of operations) through
June 30, 2000. Certain members of management of the Administrator and the
Distributor are also members of management of the AmeriPrime Trust.
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 - CONTINUED
NOTE 4. SHARE TRANSACTIONS
As of June 30, 2000, there was an unlimited number of authorized shares
without par value for the Fund. Paid in capital at June 30, 2000 was $1,374,313.
Transactions in shares were as follows:
FOR THE PERIOD JULY 9, 1999 (COMMENCEMENT OF
OPERATIONS) TO JUNE 30, 2000
SHARES DOLLARS
Shares sold 133,350 $1,370,891
Shares issued in
Reinvestment of
Dividend 337 3,437
Shares redeemed (1) (15)
--------- ------------
133,686 1,374,313
======== ============
<PAGE>
NOTE 5. INVESTMENTS
For the period from July 9, 1999 (commencement of operations) through June
30, 2000, purchases and sales of investment securities, other than short-term
investments, aggregated $1,368,648 and $640,683, respectively. As of June 30,
2000, the gross unrealized appreciation for all securities totaled $47,275 and
the gross unrealized depreciation for all securities totaled $102,183 for a net
unrealized depreciation of $54,908. The aggregate cost of securities for federal
income tax purposes at June 30, 2000 was $1,422,417.
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, 2000, J. Jeffery
Auxier, the President and Chief Investment Officer of the Advisor, beneficially
owned in aggregate more than 50 % of the Fund.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
Auxier Focus Fund (a series of the AmeriPrime Funds)
We have audited the accompanying statement of assets and liabilities of the
Auxier Focus Fund, including the schedule of portfolio investments, as of June
30, 2000, and the related statement of operations, the statement of changes in
net assets, and the financial highlights for the period from July 9, 1999 to
June 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 audits 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 June 30, 2000 by correspondence with the custodian and broker. 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 audits 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
Auxier Focus Fund as of June 30, 2000, the results of its operations, the
changes in its net assets and the financial highlights for the period from July
9, 1999 to June 30, 2000, in the period then ended, in conformity with generally
accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
July 19, 2000