<PAGE>
AUXIER FOCUS FUND UPDATE
BY JEFF AUXIER
Dear Fellow Shareholders:
A number of fundamental factors have led us to take an increasingly cautious
stance toward US stocks in general. These include the following:
>> An explosion in margin account borrowing. Recent margin debt levels
exceeded $230 billion, almost double year-ago totals. At the same time the
US savings rate has fallen to an all time low of 1.5%. Such borrowing
against inflated asset values is dangerous and can lead to mass
liquidations in the event of a market downturn. Be fearful when others are
greedy.
>> An overheated economy. The second half 1999 GDP grew in excess of 5.75%.
This is well above the 3% Fed target. The inflation picture has been
deteriorating as labor markets continue to tighten. The recently re-elected
Fed Chairman can be very aggressive in raising rates. Four rate hikes in
seven months have done little to slow the economy.
>> The bond market finished 1999 with the worst decline in 50 years. The
30-year bond was off over 12.5%. There have been two years in the past
thirty (1981, 1987) where bond prices lagged stock prices by such a wide
margin. In both cases the stock prices caught up---on the downside.
>> Normally stocks with the highest dividend yields are the most defensive;
however, in 1999 if you bought the highest yielding stocks on the S&P 500
(2% or better) at the beginning of the year, you ended the year with a
decline in excess of 12%. (Source:
Barron's)
For these reasons we are exercising greater scrutiny and care. Now is not the
time for complacency.
Strategy 2000
We are constantly working to identify superior businesses that can make money in
any economic environment. I recently spent three days at a Salomon Smith Barney
telecommunications conference where leading CEOs from the fiberoptic, wireless,
cable and media industries presented. The most important theme had to do with
communications capacity referred to as "bandwidth". By some estimates, the cost
of communicating is dropping by half every nine months. Bandwidth is rapidly
replacing computer power as the driving force of technological advance.
Microchips historically have been dropping in price by 50% every 18-24 months
for over 20 years. Look at the value created on the personal computer today as a
result. Going forward, bandwidth is predicted to double at a rate four times
faster than the semiconductor industry. That might explain why last year the top
performers in the market were in the telecom (wireless) area. The fundamentals
are extremely powerful.
Other noteworthy developments in the wireless area:
>> The US domestic wireless sector should more than double its penetration
from 32% today to more than 67% by 2007.
>> The most highly valued companies in Europe and Japan are wireless related.
The US currently trails both regions.
>> Wireless data has begun to represent more than 10% of revenues within one
year of inception. The volume of data is doubling every six to seven
months.
>> Global wireless subscribers should move from 300 million today to one
billion by 2002. (Source: Nokia)
>> The number of mobile Internet users will exceed the number of fixed line
users by 2003.
We have identified and are closely monitoring the best managed companies in this
sector and will invest for the long term as attractive opportunities present
themselves.
Thank you for your trust.
Sincerely,
/s/
J. Jeffrey Auxier
<PAGE>
<TABLE>
<CAPTION>
Auixer Focus Fund
Schedule of Investments - December 31, 1999 (Unaudited)
<S> <C> <C>
Common Stocks - 33.8% Shares Value
Air Courier Services - 0.4%
FDX Corp. (a) 100 $ 4,094
-----------------
-----------------
Beverages - 0.3%
PepsiCo, Inc. 100 3,525
-----------------
-----------------
Cable & Other Pay Television Services - 1.9%
Charter Communications - Class A 900 19,688
-----------------
-----------------
Capital Goods - Aerospace and Defense - 0.5%
Precision Castparts Corp. 200 5,250
-----------------
-----------------
Commercial Printing Services- 0.2%
Successories, Inc. 1,000 2,250
-----------------
-----------------
Computers & Office Equipment - 3.1%
International Business Machines, Inc. 300 32,362
-----------------
-----------------
Crude Petroleum & Natural Gas - 4.2%
Enron Corp. 1,000 44,375
-----------------
-----------------
Electronic Computers - 0.4%
Ceridian Corp. 200 4,312
-----------------
-----------------
Federal & Federally-Sponsored Credit Agencies - 3.1%
Federal Home Loan Mortgage Corp. 700 32,944
-----------------
-----------------
Financial Services - 0.8%
Associates First Capital Corp. - Class A 300 8,231
-----------------
-----------------
Fire, Marine, Casualty Insurance - 1.2%
Berkshire Hathaway, Inc. - Class B (a) 7 12,810
-----------------
-----------------
Mutual Funds - 0.4%
Sector SPDR Trust 200 4,753
-----------------
-----------------
National Commercial Banks - 2.5%
U.S. Bancorp 400 9,525
Bank One Corp. 200 6,400
Fleet Boston Financial Corp. 300 10,444
Firstar Corp. 200 4,225
-----------------
-----------------
30,594
-----------------
-----------------
Pharmaceutical Preparations 1.8%
American Home Products, Inc. 400 15,700
Pfizer, Inc. 100 3,250
-----------------
-----------------
18,950
-----------------
-----------------
Auixer Focus Fund
Schedule of Investments - December 31, 1999 (Unaudited) - continued
Common Stocks - continued Shares Value
Radio Telephone Communications - 3.5%
Loral Space & Communications, Ltd. 1,300 $ 31,606
Vodafone Airtouch Public Limited Co. (c) 100 4,950
-----------------
-----------------
36,556
-----------------
-----------------
Retail-Grocery Stores - 2.6%
Albertson's, Inc. 350 11,288
Kroger Corp. 500 9,437
Safeway, Inc. (a) 200 7,150
-----------------
-----------------
27,875
-----------------
-----------------
Services-Miscellaneous Amusement & Recreation - 0.6%
Walt Disney Co. 200 5,850
-----------------
-----------------
State Commercial Bank - 0.7%
Washington Mutual, Inc. 300 7,762
-----------------
-----------------
Telephone & Telegraph Apparatus - 0.6%
Brazilian Telecommunication Corp. - Telebras (c) 50 6,438
-----------------
-----------------
Telephone Communications (No Radio Telephone) - 4.6%
MCI WorldCom, Inc. (a) 525 27,858
AT&T Corp. 400 20,325
-----------------
-----------------
48,183
-----------------
-----------------
TOTAL COMMON STOCKS (Cost $348,032) 356,802
-----------------
Principal
Value
Money Market Securities - 67.1%
Firstar Treasury Fund, 4.06% (b) (Cost $709,674) $ 709,674 709,674
-----------------
TOTAL INVESTMENTS - 100.9% (Cost $1,057,706) 1,066,476
-----------------
Liabilities in excess of other assets - (0.9%) (9,578)
-----------------
TOTAL NET ASSETS - 100.0% $ 1,056,898
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at December 31, 1999.
(c) American Depository Receipt
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Auixer Focus Fund December 31, 1999
Statement of Assets & Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities (cost $1,057,706) $ 1,066,476
Cash 2,028
Dividends receivable 320
Interest receivable 2,110
------------------
Total assets 1,070,934
------------------
Liabilities
Accrued investment advisory fee payable $ 1,138
Payable for securities purchased 12,898
-----------------
Total liabilities 14,036
------------------
Net Assets $ 1,056,898
==================
Net Assets consist of:
Paid in capital $ 1,061,575
Accumulated net investment loss (105)
Accumulated net realized loss on investments (13,343)
Net unrealized appreciation on investments 8,771
------------------
Net Assets, for 103,016 shares $ 1,056,898
==================
Net Asset Value
Offering price and redemption price per share ($1,056,898/ 103,016) $ 10.26
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Auixer Focus Fund
Statement of Operations for the Period July 9, 1999
(Commencement of Operations) to December 31, 1999 (Unaudited)
<S> <C> <C>
Investment Income
Dividend income $ 444
Interest income 5,137
---------------
Total Income 5,581
Expenses
Investment advisory fee $ 2,249
Trustees' fees 261
------------------
Total expenses before reimbursement 2,510
Reimbursed expenses (261)
------------------
Total operating expenses 2,249
---------------
Net Investment Income 3,332
---------------
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (13,343)
Change in net unrealized appreciation
on investment securities 8,771
------------------
Net loss on investment securities (4,572)
---------------
Net decrease in net assets resulting from operations $ (1,240)
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Auixer Focus Fund
Statement of Changes in Net Assets for the period July 9, 1999
(Commencement of Operations) to December 31, 1999 (Unaudited)
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 3,332
Net realized loss on investment securities (13,343)
Change in net unrealized appreciation 8,771
-----------------
Net decrease in net assets resulting from operations (1,240)
-----------------
Distributions to shareholders
From net investment income (3,437)
From net realized gain -
-----------------
Total distributions (3,437)
-----------------
Share Transactions
Net proceeds from sale of shares 1,058,153
Shares issued in reinvestment of distributions 3,437
Shares redeemed (15)
-----------------
Net increase in net assets resulting
from share transactions 1,061,575
-----------------
Total increase in net assets 1,056,898
-----------------
Net Assets
Beginning of period -
-----------------
End of period [including accumulated net
investment loss of $105] $ 1,056,898
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Auixer Focus Fund
Financial Highlights for the period July 9, 1999
(Commencement of Operations) to December 31, 1999 (Unaudited)
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.10
Net realized and unrealized gain 0.19
--------------
Total from investment operations 0.29
--------------
Less distributions:
Distributions from net investment income (0.03)
Distributions from net realized gains -
--------------
Total distributions (0.03)
--------------
Net asset value, end of period $ 10.26
==============
Total Return (a) 2.94%
Ratios and Supplemental Data
Net assets, end of period (000) 1,057
Ratio of expenses to average net assets 1.35% (b)
Ratio of expenses to average net assets
before reimbursement 1.51% (b)
Ratio of net investment income to
average net assets 2.00% (b)
Ratio of net investment income to
average net assets before reimbursement 1.84% (b)
Portfolio turnover rate 962.90% (b)
(a) For periods of less than a full year, total returns are not annualized.
(b) Annualized
</TABLE>
<PAGE>
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
NOTE 1. ORGANIZATION
The Auxier Focus Fund (the "Fund") was organized as 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.
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FEDERAL INCOME TAXES- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
DIVIDENDS AND DISTRIBUTIONS- The Fund intends to 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.
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 January 1, 2000, the
advisor manages approximately $170 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,
interest, 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 December 31,
1999, the Advisor received a fee of $2,249 from the Fund. The Advisor has
voluntarily agreed to limit the total expenses of the Fund (excluding borrowing
cost, 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 December 31, 1999, the Advisor reimbursed
expenses of $261. There is no assurance that such reimbursement will continue in
the future.
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator")
to manage the Fund's business affairs and provide the Fund with administrative
services, including all regulatory reporting and necessary office equipment and
personnel. For the period from July 9, 1999 (commencement of operations) through
December 31, 1999, the Administrator received fees of $5,625 from the Advisor
for administrative services provided to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor") to
act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor from July 9, 1999 (commencement of operations) through
December 31, 1999.
NOTE 4. SHARE TRANSACTIONS
As of December 31, 1999, there was an unlimited number of authorized shares
for the Fund. Paid in capital at December 31, 1999 was $1,061,575.
Transactions in shares of Class R were as follows:
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD JULY 9, 1999 (COMMENCEMENT OF
OPERATIONS) TO DECEMBER 31, 1999
SHARES DOLLARS
<S> <C> <C>
Shares sold 102,680 $1,058,153
Shares issued in
Reinvestment of
Dividend 338 3,437
Shares redeemed (1) (15)
======== ===========
103,016 $1,061,575
======== ===========
</TABLE>
<PAGE>
AUXIER FOCUS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDTED) CONTINUED
NOTE 5. INVESTMENTS
For the period from July 9, 1999 (commencement of operations) through
December 31, 1999, purchases and sales of investment securities, other than
short-term investments, aggregated $883,456 and $522,082, respectively. As of
December 31, 1999, the gross unrealized appreciation for all securities totaled
$20,255 and the gross unrealized depreciation for all securities totaled $11,484
for a net unrealized appreciation of $8,771. The aggregate cost of securities
for federal income tax purposes at December 31, 1999 was $1,057,706.
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 December 31, 1999, J.
Jeffery Auxier, the President and Chief Investment Officer of the Advisor,
beneficially owned in aggregate more than 65% of the Fund.
<PAGE>
<TABLE>
<CAPTION>
Cornerstone MVP Fund
Schedule of Investments - December 31, 1999
(Unaudited)
<S> <C> <C>
Common Stocks - 91.6% Shares Value
AEROSPACE & DEFENSE - 2.3%
Aerospace & Defense - 2.3%
Boeing Co. 8,000 $ 331,500
---------
BASIC INDUSTRIES - 5.2%
Iron & Steel - 1.9%
Worthington Industries, Inc. 17,000 281,563
---------
Manufacturers - Diversified - 3.3%
Minnesota Mining & Manufacturing Co. 5,000 489,375
---------
TOTAL BASIC INDUSTRIES 770,938
---------
CONSTRUCTION & REAL ESTATE - 2.6%
REITs - 2.6%
Crescent Real Estate Equities Co. 20,875 383,578
---------
ENERGY - 6.4%
Energy Services - 3.5%
Halliburton Co. 6,300 253,575
Weatherford International Corp. (a) 6,550 261,591
---------
515,166
---------
Oil & Gas - 2.9%
Exxon Mobil Corp. 5,300 426,981
---------
TOTAL ENERGY 942,147
---------
FINANCE - 10.2%
Banks - 4.5%
Bank One Corp. 3,700 118,400
Citigroup, Inc. 5,095 283,728
First Security Corp. 10,000 255,313
---------
657,441
---------
Insurance - 3.9%
Aetna, Inc. 4,500 251,156
PMI Group, Inc. 6,500 317,281
---------
568,437
---------
Investment Company - 1.8%
Franklin Resources, Inc. 8,500 272,531
---------
TOTAL FINANCE 1,498,409
----------
Cornerstone MVP Fund
Schedule of Investments - December 31, 1999 - continued
(Unaudited)
Common Stocks - continued Shares Value
HEALTH - 12.6%
Diversified - 1.8%
Johnson & Johnson, Inc. 2,800 261,100
---------
Drugs & Pharmaceuticals - 5.6%
Bio-Technology General Corp. (a) 29,000 442,250
Teva Pharmaceutical Industries, Ltd. 5,400 387,113
---------
829,363
---------
General Medical & Surgical Hospitals - 2.4%
Tenet Healthcare Corp. (a) 15,000 352,500
---------
Specialized Health Services - 2.8%
Express Scripts, Inc. - Cl A (a) 6,475 414,400
---------
TOTAL HEALTH 1,857,363
----------
INDUSTRIAL MACHINERY & EQUIPMENT - 1.0%
Industrial Machinery & Equipment - 1.0%
Caterpillar, Inc. 3,000 141,188
---------
MEDIA & LEISURE - 8.2%
Lodging & Gaming - 1.9%
Mandalay Resort Group (a) 14,000 281,750
---------
Publishing - 4.3%
Gannett Co., Inc. 3,800 309,937
Knight Ridder, Inc. 5,300 315,681
---------
625,618
---------
Restaurants - 2.0%
Starbucks Corp. (a) 12,400 300,700
---------
TOTAL MEDIA & LEISURE 1,208,068
----------
NON-DURABLES - 2.9%
Household Products - 2.9%
Kimberly-Clark Corp. 6,600 431,888
---------
RETAIL & WHOLESALE - 4.5%
Catalog & Mail-order Houses - 2.7%
CDW Computer Centers (a) 5,000 393,125
---------
Department Stores - 1.8%
Dayton Hudson Corp. 3,700 271,719
---------
TOTAL RETAIL & WHOLESALE 664,844
---------
Cornerstone MVP Fund
Schedule of Investments - December 31, 1999 - continued
(Unaudited)
Common Stocks - continued Shares Value
SERVICES - 1.7%
Services - 1.7%
Modis Professional Services, Inc. (a) 18,000 256,500
---------
TECHNOLOGY - 26.7%
Communications Services - 3.1%
PanAmSat Corp. (a) 7,750 460,156
---------
Computer Services & Software - 22.1%
Entrust Technologies, Inc. (a) 7,000 419,562
Gerber Scientific, Inc. 19,400 425,587
Network Associates, Inc. (a) 15,900 424,332
Oracle Corp. (a) 3,750 420,234
Remedy Corp. (a) 8,000 379,000
Sykes Enterprises, Inc. (a) 8,200 359,775
Synopsys, Inc. (a) 7,600 507,300
Visio Corp. (a) 6,700 318,250
----------
3,254,040
----------
Computers & Office Equipment - 1.5%
Gateway, Inc. (a) 3,100 223,394
----------
TOTAL TECHNOLOGY 3,937,590
----------
UTILITIES - 7.4%
Natural Gas - 2.0%
Consolidated Natural Gas Co. 4,500 $ 292,219
---------
Telephone Services - 5.4%
Cable & Wireless (c) 7,500 397,031
Qwest Communications Int'l, Inc. (a) 9,500 408,500
---------
805,531
----------
TOTAL UTILITIES 1,097,750
----------
TOTAL COMMON STOCKS (Cost $11,698,981) 13,521,763
----------
Principal
Amount Value
Money Market Securities - 8.4%
Firstar Treasury Fund, 4.06% (b) (Cost $1,234,397) $ 1,234,397 1,234,397
----------
TOTAL INVESTMENTS - 100.0% (Cost $12,933,378) 14,756,160
----------
Other assets less liabilities - 0.0% (2,492)
----------
TOTAL NET ASSETS - 100.0% $ 14,753,668
===========
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
December 31, 1999
(c) American Depository Shares
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone MVP Fund December 31, 1999
Statement of Assets & Liabilities
(Unaudited)
Assets
<S> <C> <C>
Investment in securities (cost $12,933,378) $ 14,756,160
Dividends receivable 5,978
Interest receivable 4,474
------------------
Total assets 14,766,612
Liabilities
Accrued investment advisory fee payable $ 12,944
-----------------
Total liabilities 12,944
------------------
Net Assets $ 14,753,668
==================
Net Assets consist of:
Paid in capital $ 12,828,063
Accumulated undistributed net investment income 446
Accumulated net realized gain on investments 102,377
Net unrealized appreciation on investments 1,822,782
------------------
Net Assets, for 1,275,846 shares $ 14,753,668
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($14,753,668/1,275,846) $ 11.56
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone MVP Fund
Statement of Operations for the six months ended December 31, 1999
(Unaudited)
<S> <C> <C>
Investment Income
Dividend income $ 67,234
Interest income 32,869
---------------
Total Income 100,103
Expenses
Investment advisory fee $ 73,879
Trustees' fees 24
------------------
Total expenses before reimbursement 73,903
Reimbursed expenses (24)
------------------
Total operating expenses 73,879
---------------
Net Investment Income 26,224
---------------
Realized & Unrealized Gain
Net realized gain on investment securities 399,340
Change in net unrealized appreciation
on investment securities 655,808
------------------
Net gain on investment securities 1,055,148
---------------
Net increase in net assets resulting from operations $ 1,081,372
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone MVP Fund
Statement of Changes in Net Assets
For the six
months ended For the year
December 31, 1999 ended
Increase (Decrease) in Net Assets (Unaudited) June 30, 1999
---------------------- -----------------
<S> <C> <C>
Operations
Net investment income (loss) $ 26,224 $ (1,850)
Net realized gain (loss) on investment securities 399,340 (296,963)
Change in net unrealized appreciation (depreciation) 655,808 1,166,974
---------------------- -----------------
Net increase in net assets resulting from operations 1,081,372 868,161
---------------------- -----------------
Distributions to shareholders
Return of capital - -
From net realized gain - -
From net investment income (25,778) -
---------------------- -----------------
Total distributions (25,778) -
Share Transactions
Net proceeds from sale of shares 283,573 12,725,078
Shares issued in reinvestment of distributions 25,778 -
Shares redeemed (204,516) -
---------------------- -----------------
Net increase (decrease) in net assets resulting
from share transactions 79,057 12,725,078
---------------------- -----------------
Total increase in net assets 1,160,429 13,593,239
Net Assets
Beginning of period 13,593,239 -
---------------------- -----------------
End of period [including accumulated undistributed net
investment income(loss) of $446 and ($1,850), respectively] $ 14,753,668 $ 13,593,239
====================== =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cornerstone MVP Fund
Financial Highlights
Six months
ended Period
December 31, ended
1999 June 30,
(Unaudited) 1999 (a)
-------------- ---------------
Selected Per Share Data
<S> <C> <C>
Net asset value, beginning of period $ 10.73 $ 10.00
-------------- ---------------
Income from investment operations
Net investment income (loss) 0.02 0.00
Net realized and unrealized gain (loss) 0.83 0.73
-------------- ---------------
Total from investment operations 0.85 0.73
-------------- ---------------
Less Distributions
From net investment income (0.02) -
From net realized gain - -
-------------- ---------------
Total Distributions (0.02) -
-------------- ---------------
Net asset value, end of period $ 11.56 $ 10.73
============== ===============
Total Return (b) 7.93% 7.30%
Ratios and Supplemental Data
Net assets, end of period (000) $14,754 $13,593
Ratio of expenses to average net assets 1.10% (c) 1.10% (c)
Ratio of expenses to average net assets
before reimbursement 1.10% (c) 1.13% (c)
Ratio of net investment income (loss) to
average net assets 0.39% (c) (0.05)%(c)
Ratio of net investment income (loss) to
average net assets before reimbursement 0.39% (c) (0.07)%(c)
Portfolio turnover rate 130.33% (c) 162.54% (c)
(a) For the period December 31, 1998 (Commencement of operations) to June 30, 1999.
(b) For periods of less than a full year, total returns are not annualized.
(c) Annualized
</TABLE>
<PAGE>
CORNERSTONE MVP FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
NOTE 1. ORGANIZATION
Cornerstone MVP Fund (the "Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on October 22, 1998 and
commenced operations on December 31, 1998. The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
investment company. The Fund's investment objective is to provide long term
capital appreciation. The Declaration of Trust permits the Trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
SECURITIES VALUATIONS- Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the Advisor's opinion, the last bid price does not accurately reflect
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Advisor determines the last bid price does not accurately reflect the current
value or when restricted securities are being valued, such securities are valued
as determined in good faith by the Advisor, in conformity with guidelines
adopted by and subject to review of the Board of Trustees of the Trust (the
"Board").
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
CORNERSTONE MVP FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FEDERAL INCOME TAXES- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
DIVIDENDS AND DISTRIBUTIONS- The Fund intends to distribute substantially all of
its net investment income as dividends to its shareholders on an annual basis.
The Fund intends to distribute its net long-term capital gains and its net
short-term capital gains at least once a year.
OTHER- The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Cornerstone Investment Management, LLC (the "Advisor") to
manage the Fund's investments. The Advisor was organized as a Colorado
corporation in 1997. Christopher S. Ryan, President and Managing Partner of the
Advisor, is primarily responsible for the day-to-day management of the Fund's
portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage commissions, taxes,
interest, fees and expenses of non-interested person trustees, and extraordinary
expenses. As compensation for its management services and agreement to pay the
Fund's expenses, the Fund is obligated to pay the Advisor a fee of 1.10% of the
average daily net assets of the Fund. It should be noted that most investment
companies pay their own operating expenses directly, while the Fund's expenses,
except those specified above, are paid by the Advisor. For the six months ended
December 31, 1999, the Advisor received a fee of $73,879 from the Fund. The
Advisor has voluntarily agreed to reimburse other expenses to the extent
necessary to maintain total operating expenses at the rate of 1.10%. For the six
months ended December 31, 1999, the Advisor reimbursed expenses of $24. There is
no assurance that such reimbursement will continue in the future.
CORNERSTONE MVP FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator")
to manage the Fund's business affairs and provide the Fund with administrative
services, including all regulatory reporting and necessary office equipment and
personnel. For the six months ended December 31, 1999, the Administrator
received fees of $15,000 from the Advisor for administrative services provided
to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor for the six months ended December 31, 1999. Certain
members of management of the Administrator and the Distributor are also members
of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of December 31, 1999, there was an unlimited number of authorized shares
for the Fund. Paid in capital at December 31, 1999 was $12,828,063.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD DECEMBER 31, 1998
FOR THE SIX MONTHS ENDED (COMMENCEMENT OF OPERATIONS) TO
DECEMBER 31, 1999 JUNE 30, 1999
SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
Shares Sold 26,977 $283,573 1,266,500 $12,725,078
Shares issued 2,253 $25,778 - -
in reinvestment
Shares redeemed (19,884) ($204,516) - -
-------- ---------- --------- -----------
9,346 $104,835 1,266,500 $12,725,078
===== ======== ========= ===========
</TABLE>
<PAGE>
CORNERSTONE MVP FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 5. INVESTMENTS
For the six months ended December 31, 1999, purchases and sales of
investment securities, other than short-term investments, aggregated $7,799,622
and $8,128,889, respectively. As of December 31, 1999, the gross unrealized
appreciation for all securities totaled $2,433,005 and the gross unrealized
depreciation for all securities totaled $610,223 for a net unrealized
appreciation of $1,822,782. The aggregate cost of securities for federal income
tax purposes at December 31, 1999 was $12,933,378.
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 December 31, 1999, Charles
Schwab & Co. owned of record in aggregate more than 97% of the Fund.
<PAGE>
<TABLE>
<CAPTION>
GJMB Growth Fund
Schedule of Investments - December 31, 1999
(Unaudited)
<S> <C> <C>
Common Stocks - 94.4% Shares Value
Capital Equipment & Services - 8.1%
Honeywell International, Inc. 3,600 $ 207,675
General Electric Co. 2,650 410,087
Illinois Tool Works, Inc. 2,900 195,931
-----------------
813,693
-----------------
Consumer Cyclicals - 3.0%
Ford Motor Corp. 5,600 298,550
-----------------
Consumer Non-Cyclicals - 6.6%
Coca-Cola Co. 4,825 281,056
Procter & Gamble, Inc. 3,500 383,469
-----------------
664,525
-----------------
Energy - 5.3%
Chevron Corp. 1,500 129,938
Royal Dutch Petroleum ADR 2,200 133,237
Schlumberger Ltd. 4,200 235,725
Transocean Sedco Forex, Inc. 813 27,392
-----------------
526,292
-----------------
Financial Services - 9.4%
American International Group 2,400 259,500
Bank of America Corp. 4,950 248,428
Fannie Mae 3,600 224,775
Fleet Boston Financial Corp. 6,175 214,967
-----------------
947,670
-----------------
Health Care & Pharmaceuticals - 19.3%
Abbott Laboratories, Inc. 8,525 309,564
American Home Products, Inc. 3,800 149,150
Bristol-Myers Squibb, Inc. 4,675 300,077
Johnson & Johnson, Inc. 3,175 296,069
Merck & Co., Inc. 4,350 292,266
Pfizer, Inc. 8,900 289,250
Warner Lambert, Inc. 3,600 294,975
-----------------
1,931,351
-----------------
Prepackaged Software - 11.3%
Microsoft, Inc. (a) 4,500 525,375
Oracle Corp. (a) 5,405 605,698
-----------------
1,131,073
-----------------
Technology - 19.8%
Cisco Systems, Inc. (a) 4,000 428,500
EMC Corp. (a) 4,250 464,312
Intel Corp. 3,825 314,845
Lucent Technologies, Inc. 4,600 345,000
Sun Microsystems, Inc. (a) 5,596 433,340
-----------------
1,985,997
-----------------
GJMB Growth Fund
Schedule of Investments - December 31, 1999 - continued
(Unaudited)
Common Stocks - continued Shares Value
Telecommunications - 11.6%
AT&T Corp. 5,050 $ 256,603
Bell Atlantic Corp. 4,700 289,344
MCI Worldcom, Inc. (a) 5,625 298,477
Vodafone Airtouch Public ADR 6,300 311,850
-----------------
1,156,274
-----------------
TOTAL COMMON STOCKS (Cost $7,840,722) 9,455,425
-----------------
Principal
Amount Value
Money Market Securities - 3.8%
Firstar Treasury Fund, 4.06% (b) (Cost $379,261) $ 379,261 379,261
-----------------
TOTAL INVESTMENTS - 98.2% (Cost $8,219,983) 9,834,686
-----------------
Other assets less liabilities - 1.8% 177,511
-----------------
TOTAL NET ASSETS - 100.0% $ 10,012,197
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at December 31, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GJMB GROWTH FUND DECEMBER 31, 1999
Statement of Assets & Liabilities
(UNAUDITED)
<S> <C> <C>
ASSETS
Investment in securities (cost $8,219,983) $ 9,834,686
Cash 20
Receivable for fund shares sold 272,943
Dividends receivable 7,099
Interest receivable 2,330
------------------
TOTAL ASSETS 10,117,078
LIABILITIES
Accrued investment advisory fee payable $ 9,802
Dividends payable 45,874
Payable for securities purchased 49,205
-----------------
TOTAL LIABILITIES 104,881
------------------
NET ASSETS $ 10,012,197
==================
Net Assets consist of:
Paid in capital $ 8,385,461
Accumulated undistributed net investment income 3,007
Accumulated undistributed net realized gain on investments 9,026
Net unrealized appreciation on investments 1,614,703
------------------
NET ASSETS, for 800,908 shares $ 10,012,197
==================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($10,012,197/800,908) $ 12.50
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GJMB GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999
(UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 37,373
Interest income 17,140
---------------
TOTAL INCOME 54,513
EXPENSES
Investment advisory fee $ 46,789
Trustees' fees 287
------------------
Total expenses before reimbursement 47,076
Reimbursed expenses (287)
------------------
Total operating expenses 46,789
---------------
NET INVESTMENT INCOME 7,724
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 9,026
Change in net unrealized appreciation (depreciation)
on investment securities 1,143,644
------------------
Net gain on investment securities 1,152,670
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,160,394
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GJMB GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX
MONTHS ENDED FOR THE
DECEMBER 31, 1999 PERIOD ENDED
(UNAUDITED) JUNE 30, 1999 (A)
----------------- ------------------
Increase (Decrease) in Net Assets
<S> <C> <C>
OPERATIONS
Net investment income $ 7,724 $ 6,675
Net realized gain on investment securities 9,026 34,482
Change in net unrealized appreciation (depreciation) 1,143,644 471,059
----------------- ------------------
Net increase in net assets resulting from operations 1,160,394 512,216
----------------- ------------------
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 2,414,528 5,990,403
Shares redeemed (19,187) (283)
----------------- ------------------
NET INCREASE IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS 2,395,341 5,990,120
----------------- ------------------
TOTAL INCREASE IN NET ASSETS 3,509,861 6,502,336
Net Assets
Beginning of period 6,502,336 0
----------------- ------------------
End of period [including accumulated undistributed net
investment income of $2,437and $6,675 respectively] $ 10,012,197 $ 6,502,336
================= ==================
(a) December 31, 1998 (commencement of operations) to June 30, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GJMB Growth Fund
Financial Highlights
For the six
months ended Period Ended
December 31, 1999 June 30,
(Unaudited) 1999 (a)
------------------- ------------------
<S> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $ 11.02 $ 10.00
------------------- ------------------
Income from investment operations
Net investment income 0.02 0.02
Net realized and unrealized gain 1.52 1.00
------------------- ------------------
Total from investment operations 1.54 1.02
------------------- ------------------
Less distributions:
Distributions from net investment income (0.02) -
Distributions from net realized gains (0.04) -
------------------- ------------------
------------------- ------------------
Total distributions (0.06) -
------------------- ------------------
Net asset value, end of period $ 12.50 $ 11.02
=================== ==================
Total Return (c) 13.96% 10.20%
Ratios and Supplemental Data
Net assets, end of period (000) $10,012 $6,502
Ratio of expenses to average net assets 1.20% (b) 1.20% (b)
Ratio of expenses to average net assets
before reimbursement 1.22% (b) 1.25% (b)
Ratio of net investment income to
average net assets 0.20% (b) 0.34% (b)
Ratio of net investment income to
average net assets before reimbursement 0.19% (b) 0.28% (b)
Portfolio turnover rate 11.42% (b) 24.26% (b)
(a) December 31, 1998 (commencement of operations) to June 30, 1999.
(b) Annualized
(c) For periods of less than a full year, total returns are not annualized.
</TABLE>
<PAGE>
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
NOTE 1. ORGANIZATION
GJMB Growth Fund (the "Fund") was organized as a series of the AmeriPrime
Funds, an Ohio business trust (the "Trust"), on October 22, 1998 and commenced
operations on December 31, 1998. The Fund is registered under the Investment
Company Act of 1940, as amended, as a non-diversified open-end management
investment company. The Fund's investment objective is to provide long term
capital appreciation. The Declaration of Trust permits the Trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
SECURITIES VALUATIONS- Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the Advisor's opinion, the last bid price does not accurately reflect
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Advisor determines the last bid price does not accurately reflect the current
value or when restricted securities are being valued, such securities are valued
as determined in good faith by the Advisor, in conformity with guidelines
adopted by and subject to review of the Board of Trustees of the Trust (the
"Board").
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) - CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FEDERAL INCOME TAXES- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
DIVIDENDS AND DISTRIBUTIONS- The Fund intends to distribute substantially all of
its net investment income as dividends to its shareholders on an annual basis.
The Fund intends to distribute its net long-term capital gains and its net
short-term capital gains at least once a year.
OTHER- The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Gamble, Jones, Morphy & Bent (the "Advisor") to manage the
Fund's investments. The Advisor became a registered investment adviser in 1956
and was reorganized as a California corporation in 1990. Thomas S. Jones,
President of the Advisor, and Thomas W. Bent, Executive Vice President of the
Advisor, are the controlling shareholders of Gamble, Jones, Morphy & Bent. The
investment decisions for the Fund are made by the executive committee of the
Advisor, which is primarily responsible for the day-to-day management of the
Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage commissions, taxes,
interest, fees and expenses of non-interested person trustees, and extraordinary
expenses. As compensation for its management services and agreement to pay the
Fund's expenses, the Fund is obligated to pay the Advisor a fee of 1.20% of the
average daily net assets of the Fund. It should be noted that most investment
companies pay their own operating expenses directly, while the Fund's expenses,
except those specified above, are paid by the Advisor. For the period from June
30, 1999 through December 31, 1999 the Advisor received a fee of $46,789 from
the Fund. The Advisor has voluntarily agreed to reimburse other expenses to the
extent necessary to maintain total operating expenses at the rate of 1.20%. For
the period June 30, 1999 through December 31, 1999, the Advisor reimbursed
expenses of $287. There is no assurance that such reimbursement will continue in
the future.
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) - CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator")
to manage the Fund's business affairs and provide the Fund with administrative
services, including all regulatory reporting and necessary office equipment and
personnel. For the period from June 30, 1999 to December 31, 1999, the
Administrator received fees of $15,000 from the Advisor for administrative
services provided to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor from June 30, 1999 to December 31, 1999. Certain members
of management of the Administrator and the Distributor are also members of
management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of December 31, 1999, there was an unlimited number of authorized shares
for the Fund. Paid in capital at December 31, 1999 was $8,385,461.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTH PERIOD ENDED FOR THE PERIOD DECEMBER 31, 1998
DECEMBER 31, 1999 (COMMENCEMENT OF OPERATIONS) TO JUNE 30, 1999
--------------------------------- --------------------------------------------
SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
Shares sold 209,061 $2,368,854 589,954 $5,990,403
Shares issued in
reinvestment of
dividends 3,651 45,674 - -
Shares redeemed
(1,731) (19,187) (27) (283)
------- --------- ------- ---------
210,981 $2,395,341 589,927 $5,990,120
======= ========= ======= =========
</TABLE>
<PAGE>
GJMB GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) -CONTINUED
NOTE 5. INVESTMENTS
For the period from June 30, 1999 through December 31, 1999, purchases and sales
of investment securities, other than short-term investments, aggregated
$2,855,757 and $354,896, respectively. As of December 31, 1999, the gross
unrealized appreciation for all securities totaled $1,939,042 and the gross
unrealized depreciation for all securities totaled $324,339 for a net unrealized
appreciation of $1,614,703. The aggregate cost of securities for federal income
tax purposes at December 31, 1999 was $8,219,983.
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 December 31, 1999, Charles
Schwab & Co. owned of record in aggregate 97% of the Fund.
<PAGE>
February 22, 2000
Dear Shareholder,
The IMS Capital Value Fund returned 17.8% to shareholders in 1999, beating 90%
of the funds in its category according to Lipper. The fund is part of the
multi-cap value category and ranked 47th out of 482 similar funds. 1999 was a
year in which several of the Fund's previously undervalued stocks surged and
exceeded our price targets, prompting us to take our gains and move on to better
opportunities. Because of these moves the fund paid a capital gain distribution
of $1.48 a share to shareholders on record as of December 28, 1999. 61 cents of
the distribution was classified as a short-term gain while 87 cents was
classified as a long-term gain. Since most of you elect to reinvest your
distributions, your account value did not change as a result of the
distribution. While the share price may be lower, you now own more shares. We
did not anticipate making a taxable distribution in 1999, however, market
conditions and the price movement of certain stocks in our portfolio
necessitated the sales. We continue to manage the portfolio for tax efficiency
and after-tax total return. Our objective remains to minimize or eliminate
taxable gains in the year 2000, just as we did in 1998.
The Russell Mid-Cap Value Index, returned -0.1% in 1999. Though the value style
of investing is out of favor at the moment, we continue to post solid returns
with an approach we believe involves less risk. The Fund's average annualized
return since inception is 14.5% and while our 17.8% return for 1999 may pale by
comparison to the high risk returns generated by the tech-heavy NASDAQ and the
.com stocks, we are proud to report our results and look forward to a strong
2000. We continue to look for quality, undervalued companies that are showing
signs they have turned the corner.
Thank you for investing along side us as fellow shareholders of the IMS Capital
Value Fund. We appreciate your trust and confidence as we continue BUILDING
WEALTH WISELY. Our objective remains to become one of the most respected and
successful value funds in the industry.
Sincerely,
/s/
Carl W. Marker
Portfolio Manager
IMS Capital Value Fund
www.imscapital.com
(503) 654-3138
<PAGE>
RETURNS FOR THE PERIOD ENDED DECEMBER 31, 1999
IMS Capital Russell Mid-Cap
Value Fund Value Index
8/5/1996 $10,000 $10,000
10/31/1996 $10,760 $10,785
4/30/1997 $11,360 $11,901
10/31/1997 $12,060 $14,290
4/30/1998 $13,612 $16,776
10/31/1998 $12,157 $15,111
6/30/1999 $15,682 $17,362
12/31/1999 $15,856 $16,102
This graph shows the value of a hypothetical $10,000 investment in the Fund and
the Russell Mid-Cap Value Index. The index is an unmanaged group of stocks
whose total return includes the reinvestment of any dividends and capital gain
distributions, but does not reflect expenses which have lowered the Fund's
return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT A GUARANTEE
OF FUTURE RESULTS.
<TABLE>
<S> <C> <C>
- ------------------------------------- --------------------- --------------------------
ONE YEAR TOTAL AVERAGE ANNUAL
TOTAL RETURN SINCE INCEPTION
AVERAGE ANNUAL RETURNS RETURN AUGUST 5, 1996
- ------------------------------------- --------------------- --------------------------
IMS Capital Value Fund 17.78% 14.48%
- ------------------------------------- --------------------- --------------------------
Russell Mid-Cap Value Index -0.10% 14.97%
- ------------------------------------- --------------------- --------------------------
Value Line Index 10.56% 16.61%
- ------------------------------------- --------------------- --------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999
(UNAUDITED)
COMMON STOCKS - 99.1% SHARES VALUE
<S> <C> <C>
BASIC INDUSTRIES - 7.7%
IRON & STEEL - 4.0%
USX-U.S. Steel Group 14,000 $ 462,000
-----------------
PACKAGING & CONTAINERS - 1.6%
Crown Cork & Seal Co., Inc. 8,500 190,188
-----------------
SAW MILLS, PLANNING MILLS, GENERAL - 2.1%
Louisiana Pacific Corp. 17,000 242,250
-----------------
TOTAL BASIC INDUSTRIES 894,438
-----------------
ENERGY - 4.7%
OIL & GAS - 4.7%
Pennzoil-Quaker State, Inc. 28,000 285,250
Unocal Corp. 8,000 268,500
-----------------
553,750
-----------------
FINANCE - 10.4%
BANKS - 4.3%
Citigroup, Inc. 9,000 500,062
-----------------
INSURANCE - 2.8%
Conseco, Inc. 18,000 321,750
-----------------
SECURITIES INDUSTRY - 3.3%
T. Rowe Price Associates 10,500 387,844
-----------------
TOTAL FINANCE 1,209,656
-----------------
HEALTH - 9.0%
DIVERSIFIED - 1.9%
American Home Products, Inc. 5,500 216,906
-----------------
DRUGS & PHARMACEUTICALS - 3.6%
Chiron, Inc. (a) 10,000 423,750
-----------------
GENERAL MEDICAL & SURGICAL HOSPITALS - 2.0%
Tenet Healthcare Corp. (a) 10,000 235,000
-----------------
MANAGED CARE - 1.5%
Pacificare Health Systems, Inc. - Class A (a) 3,300 174,900
-----------------
TOTAL HEALTH 1,050,556
-----------------
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(UNAUDITED)
COMMON STOCKS - CONTINUED SHARES VALUE
INDUSTRIAL MACHINERY & EQUIPMENT - 7.1%
ELECTRICAL EQUIPMENT - 5.6%
American Power Conversion, Inc. (a) 25,000 $ 659,375
-----------------
POLLUTION CONTROL - 1.5%
Waste Management, Inc. 10,000 171,875
-----------------
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 831,250
-----------------
MEDIA & LEISURE - 6.0%
ENTERTAINMENT - 2.5%
Disney (Walt) Co. 10,000 292,500
-----------------
LEISURE DURABLES & TOYS - 3.5%
Marvel Enterprises, Inc. (a) 37,000 203,500
Mattel, Inc. 16,000 210,000
-----------------
413,500
-----------------
TOTAL MEDIA & LEISURE 706,000
-----------------
NON-DURABLES - 8.4%
BEVERAGES - 2.9%
PepsiCo, Inc. 9,500 334,875
-----------------
FOODS - 1.3%
Nabisco Group Holdings Corp. 14,000 148,750
-----------------
HOUSEHOLD PRODUCTS - 4.2%
Kimberly-Clark Corp. 5,000 326,250
Sunbeam Corp. (a) 40,000 167,500
-----------------
493,750
-----------------
TOTAL NON-DURABLES 977,375
-----------------
RETAIL & WHOLESALE - 4.0%
MISCELLANEOUS SHOPPING GOODS STORES - 1.5%
Office Depot, Inc. (a) 16,000 175,000
-----------------
SPECIALTY - 2.5%
Toys R Us, Inc. (a) 20,000 286,250
-----------------
TOTAL RETAIL & WHOLESALE 461,250
-----------------
SERVICES - 3.4%
SERVICES - 3.4%
Block (H&R), Inc. 9,000 393,750
-----------------
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS - DECEMBER 31, 1999 - CONTINUED
(UNAUDITED)
COMMON STOCKS - CONTINUED
TECHNOLOGY - 29.8%
COMMUNICATIONS EQUIPMENT - 6.5%
Loral Space & Communications Ltd. (a) 13,000 $ 316,063
Motorola, Inc. 3,000 441,750
-----------------
757,813
-----------------
COMPUTER SERVICES & SOFTWARE - 15.6%
Electronic Data Systems Corp. 7,500 502,031
Oracle Corp. (a) 6,000 672,375
Symantec Corp. (a) 11,000 644,875
-----------------
1,819,281
-----------------
COMPUTERS & OFFICE EQUIPMENT - 2.8%
Compaq Computer Corp. 12,000 324,750
-----------------
ELECTRONICS - 4.9%
Intel Corp. 7,000 576,187
-----------------
TOTAL TECHNOLOGY 3,478,031
-----------------
TRANSPORTATION - 2.1%
TRUCKING & FREIGHT - 2.1%
FDX Corp. (a) 6,000 245,625
-----------------
UTILITIES - 6.5%
ELECTRIC UTILITY - 2.9%
Niagara Mohawk Holdings, Inc. (a) 24,000 334,500
-----------------
TELEPHONE SERVICES - 3.6%
AT&T Corp. 8,250 418,687
-----------------
TOTAL UTILITIES 753,187
-----------------
TOTAL COMMON STOCKS (COST $9,309,923) 11,554,868
-----------------
PRINCIPAL
VALUE VALUE
Corporate Bonds - 0.9%
Paging Network, 10.00%, 10/15/2008 (Cost $119,097) 350,000 103,250
-----------------
Money Market Securities - .1%
Firstar Treasury Fund, 4.06% (b) (Cost $11,036) 11,036 11,036
-----------------
TOTAL INVESTMENTS - 100.1% (COST $9,440,056) 11,669,154
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1%) (11,576)
-----------------
TOTAL NET ASSETS - 100.0% $ 11,657,578
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
December 31, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND DECEMBER 31, 1999
Statement of Assets & Liabilities
(UNAUDITED)
<S> <C> <C>
ASSETS
Investment in securities (cost $9,440,056) $ 11,669,154
Receivable for fund shares sold 1,500
Dividends receivable 11,858
Interest receivable 5,879
Deferred organization costs 12,333
-----------------
TOTAL ASSETS 11,700,724
LIABILITIES
Accrued investment advisory fee payable, net of waiver $ 11,439
Payable for fund shares redeemed 18,882
Other payables and accrued expenses 3,159
Dividends payable to shareholders 9,666
-----------------
TOTAL LIABILITIES 43,146
-----------------
NET ASSETS $ 11,657,578
=================
Net Assets consist of:
Paid in capital $ 9,528,235
Undistributed net investment income (20,860)
Accumulated undistributed net realized gain on investments (78,895)
Net unrealized appreciation on investments 2,229,098
-----------------
NET ASSETS, for 882,766 shares $ 11,657,578
=================
NET ASSET VALUE
Offering price and redemption price per share ($11,657,578/882,766) $ 13.21
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
STATEMENT OF OPERATIONS FOR THE
SIX MONTHS ENDED DECEMBER 31, 1999
(UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 57,115
Interest income 13,423
----------------
TOTAL INCOME 70,538
EXPENSES
Investment advisory fee $ 70,042
Administration fees 12,249
Transfer agent fees 9,830
Legal fees 8,399
Pricing & bookkeeping fees 8,343
Audit fees 5,034
Custodian fees 3,437
Amortization of organizational expenses 2,377
Shareholder reports 2,242
Trustees' fees 287
Registration fees 65
---------------
Total expenses before reimbursement 122,305
Waived fees and reimbursed expenses (33,942)
---------------
Total operating expenses 88,363
----------------
NET INVESTMENT LOSS (17,825)
----------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities (27,490)
Change in net unrealized appreciation (depreciation)
on investment securities 156,291
---------------
Net gain on investment securities 128,801
----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 110,976
================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR
DECEMBER 31, ENDED
1999 JUNE 30,
(UNAUDITED) 1999
----------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
OPERATIONS
Net investment loss $ (17,825) $ (3,035)
Net realized loss on investment securities (27,490) 1,172,251
Net realized gain on options transactions - 2,923
Change in net unrealized appreciation (depreciation) 156,291 1,803,897
----------------- -----------------
Net increase in net assets resulting from operations 110,976 2,976,036
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS
Return of capital - -
From net realized gain (1,175,174) -
----------------- -----------------
Total distributions (1,175,174) -
----------------- -----------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 463,730 607,468
Shares issued in reinvestment of distributions 1,165,508 -
Shares redeemed (515,353) (3,499,602)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS 1,113,885 (2,892,134)
----------------- -----------------
TOTAL INCREASE IN NET ASSETS 49,687 83,902
Net Assets
Beginning of period 11,607,891 11,523,989
----------------- -----------------
End of period [including accumulated undistributed net
investment loss of ($20,860), and $0, respectively] $ 11,657,578 $ 11,607,891
================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED YEAR PERIOD
DECEMBER 31, ENDED YEARS ENDED OCTOBER 31, ENDED
1999 JUNE 30, ---------------------------- OCTOBER 31,
(UNAUDITED) 1999 1998 1997 1996 (C)
----------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
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) (0.02) - (0.06) (0.08) (0.01)
Net realized and unrealized gain 0.15 3.28 0.12 1.38 0.77
----------------- -------------- ------------- ------------- -------------
Total from investment operations 0.13 3.28 0.06 1.30 0.76
----------------- -------------- ------------- ------------- -------------
Less Distributions
From net investment income - - (0.03) - -
From net realized gain (1.48) - (0.81) - -
----------------- -------------- ------------- ------------- -------------
Total Distributions (1.48) - (0.84) - -
----------------- -------------- ------------- ------------- -------------
Net asset value, end of period $ 13.21 $ 14.56 $ 11.28 $ 12.06 $ 10.76
================= ============== ============= ============= =============
TOTAL RETURN (b) 1.04% 29.08% 2.27% 12.08% 7.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $11,658 $11,608 $11,524 $9,932 $4,741
Ratio of expenses to average net assets 1.59% (a) 1.59% 1.73% 1.97% 1.84% (a)
Ratio of expenses to average net assets
before reimbursement 2.20% (a) 2.50% 2.34% 2.54% 3.92% (a)
Ratio of net investment income (loss) to
average net assets (0.32)% (a) (0.04)% (0.53)% (0.64)% (0.25)% (a)
Ratio of net investment income (loss) to
average net assets before reimbursement (0.93)% (a) (0.95)% (1.14)% (1.20)% (2.32)% (a)
Portfolio turnover rate 61.79% (a) 68.16% 81.74% 34.76% 3.56% (a)
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
(c) August 5, 1996 (commencement of operations) to October 31, 1996
</TABLE>
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
NOTE 1. ORGANIZATION
IMS Capital Value Fund (the "Fund") is organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on July 30, 1996, and
commenced operations on August 5, 1996. The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to provide
long-term growth. The Declaration of Trust permits the trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value.
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.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FEDERAL INCOME TAXES - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
DIVIDENDS AND DISTRIBUTIONS - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long-term capital gains and its
net short-term capital gains at least once a year.
OTHER - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains IMS Capital Management, Inc. (the "Advisor") to manage the
Fund's investments. Carl W. Marker, Chairman and President of the Advisor, is
primarily responsible for the day to day management of the Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees. As
compensation for its management services, the Fund is obligated to pay the
Advisor a fee computed and accrued daily and paid monthly at an annual rate of
1.59% of the average daily net assets of the Fund. Through December 31, 1999,
the Advisor has voluntarily agreed to waive the management fee to a rate of
1.26%. For the six-month period ended December 31, 1999 the Advisor received
fees of $70,042 from the Fund. The Advisor has voluntarily agreed to reimburse
other expenses for the Fund through December 31, 1999 to the extent necessary to
maintain total operating expenses at the rate of 1.59%. For the six-month period
ended December 31, 1999 the Advisor waived fees and reimbursed expenses of
$33,942. 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 six-month period ended December 31, 1999 the Administrator
received fees of $12,249 from the Advisor for administrative services provided
to the Fund.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
The Fund retains AmeriPrime Financial Securities, Inc. (the "Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor for the six-month period ended December 31, 1999.
Certain members of management of the Administrator and the Distributor are also
members of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of December 31, 1999, there was an unlimited number of authorized shares
for the Fund. Paid in capital at December 31, 1999 was $9,528,235.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
Shares sold 33,666 $463,730 45,949 $607,468
Shares issued in
reinvestment 89,723 1,165,508 - -
Shares redeemed (37,717) (515,353) (270,632) (3,499,602)
------ ------- ------- ---------
85,672 $1,113,885 (224,683) $(2,892,134)
====== ========= ======= =========
</TABLE>
NOTE 5. INVESTMENTS
For the six-month period ended December 31, 1999, purchases and sales of
investment securities, other than short-term investments, aggregated $3,453,053
and $3,332,691, respectively. The gross unrealized appreciation for all
securities totaled $3,006,366 and the gross unrealized depreciation for all
securities totaled $777,268 for a net unrealized appreciation of $2,229,098. The
aggregate cost of securities for federal income tax purposes at December 31,
1999 was $9,440,056.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
<PAGE>
DEAR FELLOW SHAREHOLDER,
The Jumper Strategic Advantage Fund has performed extremely well in a very
difficult market due to the increase in short-term interest rates. The fund had
a return of 3.44% versus the Lehman Bros. 1 Year Treasury Index of 1.96%. The
fund made some significant changes in the third quarter that we discussed in our
last annual report. We have discontinued using the market neutral strategy for a
portion of the fund. This portion of the fund increased the volatility of the
fund while decreasing the income. We have changed the fund making its goal to
seek a greater total return than may generally be earned in money market funds
for clients who are willing to accept some NAV fluctuation to pursue this
objective. The Advisor will manage the portfolio primarily consisting of
short-term investment grade securities (bonds rated BBB+ - AAA). The Fund
possesses extremely low volatility while providing daily liquidity. The Jumper
Strategic Advantage Fund is an alternative for short-term capital and a unique
product. The Advisor has the flexibility to extend the average maturity in a
declining rate environment and shorten average maturities in a market with rates
rising.
We feel that our changes have proven to be effective as the NAV has risen from
1.96 (6/30/99) to 1.98 (12/31/99). Currently, we believe there is significant
value in the bond market versus historical returns and we are well positioned to
take advantage of this situation.
SHORT TERM INTEREST RATES
The fund significantly outperformed the index over the past 6 months, having a
3.44% return over the last six month while the 1-year Treasury yield increased
from 5.05% to 5.96%, or an increase of 91 basis points. The Fund's average
maturity remained at one year during the past six months. The Federal Reserve
raised rates 75 basis points during 1999 and has already raised rates 25 basis
points in 2000. The market has another 25-50 basis points built into the current
interest rates. This will allow us to lock rates in the current environment as
we expect short-term rates to decline over the next year.
PERFORMANCE
As previously mentioned, the fund performed extremely well in a very difficult
market. For the 6 month period ending December 31, 1999, the Fund had a total
return of 3.44% while the total return for the Lehman 1-year Treasury Index for
the same period was 1.96%. The fund also dramatically decreased the volatility
of the NAV by removing the market neutral component and making the fund an ultra
short duration, high quality bond fund. We feel these changes better represent
the type of investment the investor preferred for this fund. The fund is not a
money market fund, but is a nice alternative for those investors who are willing
to accept some NAV fluctuation to achieve a better return.
Date Jumper Strategic Advan Lehmanu1dYear*
10/26/98 10000 10000
10/31/98 10050 10000
11/30/98 10050 10002
12/31/98 10100 10035
1/31/99 10100 10074
2/28/99 10095 10085
3/31/99 10113 10146
4/30/99 10040 10183
5/31/99 10068 10212
6/30/99 10096 10261
7/31/99 10199 10305
8/31/99 10251 10336
9/30/99 10354 10390
10/31/99 10343 10419
11/30/99 10396 10440
12/31/99 10444 10461
*THE LEHMAN 1-YEAR TREASURY BELLWETHER IS AN UNMANAGED INDEX REPRESENTATIVE OF
THE AVERAGE CURRENT 1-YEAR TREASURY BILL. SOURCE OF THE LEHMAN 1-YEAR TREASURY
BELLWETHER DATA IS LEHMAN BROTHERS FIXED INCOME RESEARCH GLOBAL FAMILY OF
INDICES.
This graph shows compares the value of a $10,000 investment in the Fund and the
Lehman 1-year Treasury Bellwether Government Index on October 26, 1998 and held
through December 31, 1999. The Lehman 1-year return does not reflect expenses,
which have been deducted from the Fund's return. The Fund's return represents
past performance and is not a guarantee of future results.
FORWARD OUTLOOK
Looking forward, we will continue to seek to provide our shareholders with a
total return above traditional money market funds. We would like to thank you
for your continued support. We are delighted by your confidence and look forward
to serving your investment needs.
Please feel free to contact us with you questions or comments.
Sincerely,
/s/
Jay Jumper
President
<PAGE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund
Schedule of Investments - December 31, 1999
(Unaudited)
<S> <C> <C>
Principal
Corporate Notes - 96.3% Amount Value
Alabama Power Co., 6.00%, 03/01/00 $ 40,000 $ 39,988
AMR Corp., 7.225%, 02/01/01 75,000 76,893
Associates Corp. North America, 6.75%, 07/15/01 50,000 49,916
Bankers Trust New York Corp., 9.00%, 08/01/01 50,000 51,378
Carnival Corp., 5.65%, 10/15/00 50,000 49,708
Comdisco Inc., 5.75%, 02/15/01 50,000 49,078
Cox Communications, Inc. 6.864%, 08/15/01 75,000 74,856
Delta Air Lines, Inc., 9.75%, 1/2/00 62,000 62,000
Donaldson Lufkin & Jenrette Inc. MTN, 6.25%, 08/01/01 50,000 49,438
Finova Capital Corp., 6.375%, 10/15/00 50,000 49,817
General Motors Corp., 9.125%, 07/15/01 50,000 51,535
Heller Financial, Inc. MTN, 6.42%, 8/25/00 70,000 69,902
Hertz Corp., 6.462%, 07/15/00 75,000 75,040
Ikon Capital Inc. MTN, 6.33%, 12/08/00 100,000 98,497
International Lease Finance Corp., 7%, 5/15/00 50,000 50,100
Lehman Brothers Holdings, 6.90%, 03/30/01 50,000 49,864
Midatlantic Corp., 9.20%, 08/01/01 50,000 51,490
Paine Webber Group, Inc. MTN, 6.585%, 7/23/01 50,000 49,413
Philip Morris Cos. Inc., 9.00%, 01/01/01 50,000 50,636
Quintiles Transnational Corp., 4.25%, 05/31/00 25,000 24,281
Raytheon Co., 7.257%, 03/15/01 75,000 73,990
Reebok International Ltd., 6.75%, 5/15/00 50,000 49,999
Supervalu Inc. MTN, 6.50%, 10/06/00 60,000 59,587
Tyco International Group, 7.236%, 06/15/01 75,000 73,734
Whirlpool, 9.50%, 06/15/00 50,000 50,623
Williams Cos., Inc. MTN, 6.697%, 06/13/00 75,000 75,052
-----------------
TOTAL CORPORATE NOTES (Cost $1,514,796) 1,506,815
-----------------
Money Market Securities - 1.5%
Firstar Treasury Fund, 4.06% (a) (Cost $22,677) 22,677 22,677
-----------------
TOTAL INVESTMENTS - 97.8% (Cost $1,537,473) 1,529,492
-----------------
Other assets less liabilities - 2.2% 35,144
-----------------
TOTAL NET ASSETS - 100.0% $ 1,564,636
=================
(a) Variable rate security; the coupon rate shown represents the rate at December 31, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund December 31, 1999
Statement of Assets & Liabilities
(Unaudited)
<S> <C> <C>
Assets
Investment in securities (cost $1,537,473) $ 1,529,492
Interest receivable 40,703
------------------
Total assets 1,570,195
Liabilities
Due to custodian $ 4,599
Accrued investment advisory fee payable 841
Dividends payable 94
Accrued 12b-1 fees 25
-----------------
Total liabilities 5,559
------------------
Net Assets $ 1,564,636
==================
Net Assets consist of:
Paid in capital $ 1,662,546
Accumulated net investment loss (1,760)
Accumulated net realized gain (loss) on investments (88,169)
Net unrealized depreciation on investments (7,981)
------------------
Net Assets $ 1,564,636
==================
Net Asset Value
Class A:
Net Asset Value, Offering price
and redemption price per share ($1,222,411/618,424) $ 1.98
==================
Class B:
Net Asset Value, Offering price
and redemption price per share ($342,225/172,912) $ 1.98
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund
Statement of Operations for the six months ended
December 31, 1999 (Unaudited)
<S> <C> <C>
Investment Income
Interest income 34,305
---------------
Expenses
Investment advisory fee $ 5,208
Trustees' fees 287
Accrued 12b-1 fee 25
------------------
Total expenses before reimbursement 5,520
Reimbursed expenses (287)
------------------
Total operating expenses 5,233
---------------
Net Investment Income 29,072
---------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (43,623)
Change in net unrealized appreciation (depreciation)
on investment securities 54,481
------------------
Net gain (loss) on investment securities 10,858
---------------
Net increase in net assets resulting from operations $ 39,930
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund
Statement of Changes in Net Assets
For the six
months ended For the period
December 31, 1999 ended
(Unaudited) June 30, 1999 (a)
----------------------- --------------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 29,072 $ 127,679
Net realized gain (loss) on investment securities (43,623) (44,546)
Change in net unrealized appreciation (depreciation) 54,481 (62,462)
----------------------- --------------------
Net increase in net assets resulting from operations 39,930 20,671
----------------------- --------------------
Distributions to shareholders
From net investment income Class A (30,276) (127,679)
From net investment income Class B (556) -
----------------------- --------------------
Total distributions (30,832) (127,679)
----------------------- --------------------
Share Transactions
Net proceeds from sale of shares:
Class A 1,040,000 5,408,500
Class B 342,000
Shares issued in reinvestment of distributions:
Class A 30,017 127,679
Class B 365
Shares redeemed:
Class A (2,285,985) (3,000,030)
Class B - -
----------------------- --------------------
Net increase in net assets resulting
from share transactions (873,603) 2,536,149
----------------------- --------------------
Total increase in net assets (864,505) 2,429,141
----------------------- --------------------
Net Assets
Beginning of period 2,429,141 -
----------------------- --------------------
End of period $ 1,564,636 $ 2,429,141
======================= ====================
(a) For the period October 26, 1998 (commencement of operations) to June 30, 1999.
</TABLE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund
Financial Highlights Institutional Class
For the six
months ended For the
December 31,1999 period ended
(Unaudited) June 30, 1999 (a)
<S> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $ 1.96 $ 2.00
------------------- ------------------
Income from investment operations
Net investment income 0.05 0.05
Net realized and unrealized gain (loss) 0.02 (0.04)
------------------- ------------------
Total from investment operations 0.07 0.01
------------------- ------------------
Less distributions
from net investment income (0.05) (0.05)
------------------- ------------------
Net asset value, end of period $ 1.98 $ 1.96
=================== ==================
Total Return (b) 3.43% 0.51%
Ratios and Supplemental Data
Net assets, end of period (000) $1,222 $2,429
Ratio of expenses to average net assets 0.75% (c) 0.75% (c)
Ratio of expenses to average net assets
before reimbursement 0.78% (c) 0.85% (c)
Ratio of net investment income to
average net assets 4.11% (c) 3.89% (c)
Ratio of net investment income to
average net assets before reimbursement 4.08% (c) 3.79% (c)
Portfolio turnover rate 175.32% (c) 255.18% (c)
(a) For the period October 26,1998 (Commencement of operations) to June 30, 1999.
(b) For periods of less than a full year, total returns are not annualized.
(c) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Jumper Strategic Advantage Fund
Financial Highlights Investor Class
For the
period ended
December 31,1999
(Unaudited) (a)
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 1.98
-------------------
Income from investment operations
Net investment income 0.02
Net realized and unrealized gain (loss) 0.00
-------------------
Total from investment operations 0.02
-------------------
Less distributions
from net investment income (0.02)
-------------------
Net asset value, end of period $ 1.98
===================
Total Return (b) 0.91%
Ratios and Supplemental Data
Net assets, end of period (000) $342
Ratio of expenses to average net assets 1.00% (c)
Ratio of expenses to average net assets
before reimbursement 1.54% (c)
Ratio of net investment income to
average net assets 3.08% (c)
Ratio of net investment income to
average net assets before reimbursement 2.54% (c)
Portfolio turnover rate 175.32% (c)
(a) For the period November 2,1999 (commencement of operations) to December 31, 1999.
(b) For periods of less than a full year, total returns are not annualized.
(c) Annualized
</TABLE>
<PAGE>
JUMPER STRATEGIC ADVANTAGE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
NOTE 1. ORGANIZATION
Jumper Strategic Advantage Fund (the "Fund") was organized as a series of
the AmeriPrime Funds, an Ohio business trust (the "Trust"), on February 26, 1998
and commenced operations on October 26, 1998. The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company, whose investment objective is to provide a
greater total return than may generally be earned in money market funds while
attempting to limit general market risk. The Trust Agreement permits the
trustees to issue an unlimited number of shares of beneficial interest of
separate series without par value. The Fund currently offers two classes of
shares: Institutional Class and Investor Class.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
SECURITIES VALUATION - Securities are valued primarily on market quotations,
where available. Securities for which current market quotations are not readily
available, including the current market value of underlying funds, are valued at
fair value as determined in good faith by procedures approved by the Fund's
board of trustees. Short-term investments maturing in sixty days or less are
valued at amortized cost, which approximates fair market value.
FEDERAL INCOME TAXES - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains. The Fund intends to pay dividends to avoid all income
and excise taxes; however, the Fund paid a small excise tax for the taxable
period October 26, 1998 (commencement of operations) to December 31, 1998.
DIVIDENDS AND DISTRIBUTIONS - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on a daily basis
and to pay such dividends monthly. The Fund intends to distribute its net
long-term capital gains and its net short term capital gains at least once a
year.
OTHER - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
JUMPER STRATEGIC ADVANTAGE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains The Jumper Group, Inc. (the "Advisor") to manage the
Fund's investments. Jay Colton Jumper, the Fund's portfolio manager, is
primarily responsible for the day to day management of the Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees and
pays all expenses of the Fund except brokerage commissions, distribution fees
(12b-1) for the Investor class, taxes, interest, fees and expenses of
non-interested person trustees, and extraordinary expenses. As compensation for
its management services and agreement to pay the Fund's expenses, the Fund is
obligated to pay the Advisor a fee computed and accrued daily and paid monthly
at an annual rate of 0.75% of the average daily net assets of the Fund. It
should be noted that most investment companies pay their own operating expenses
directly, while the Fund's expenses, except those specified above, are paid by
the Advisor. For the period from June 30, 1999 through December 31, 1999, the
Advisor has received a fee of $5,208 from the Fund. The Advisor has voluntarily
agreed to reimburse other expenses to the extent necessary to maintain total
operating expenses at the rate of 0.75% for the Institutional Class and 1.00%
for the Investor Class. For the period June 30, 1999 through December 31, 1999,
the Advisor reimbursed expenses of $287. There is no assurance that such
reimbursement will continue in the future.
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator")
to manage the Funds business affairs and provide the Fund with administrative
services, including all regulatory reporting and necessary office equipment and
personnel. For the period from June 30, 1999 through December 31, 1999, the
Administrator received fees of $15,000 from the Advisor for administrative
services provided to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. (the Distributor) to
act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor for the period from June 30, 1999 to December 31, 1999.
Certain members of management of the Administrator and the Distributor are also
members of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of December 31, 1999, there was an unlimited number of authorized shares
for the Fund. Paid in capital at December 31, 1999 was $1,662,546.
<PAGE>
JUMPER STRATEGIC ADVANTAGE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 4. SHARE TRANSACTIONS - CONTINUED
<TABLE>
<CAPTION>
Transactions in shares were as follows:
SIX MONTHS ENDED FOR THE PERIOD OCTOBER 26, 1999
DECEMBER 31, 1999 (COMMENCEMENT OF OPERATIONS) TO JUNE 30,
1999
SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
INSTITUTIONAL:
Shares sold 526,381 $1,040,000 2,702,357 $5,408,500
Shares issued in
reinvestment of
dividend 15,160 $30,017 64,846 $127,679
Shares Redemption
(1,159,691) $(2,285,985) (1,530,628) $(3,000,030)
----------- ------------ ----------- -------------
(618,150) $(1,215,968) 1,236,575 $2,536,149
=========== ============= ========= =============
</TABLE>
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 2, 1999
(COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1999
SHARES DOLLARS
<S> <C> <C>
INVESTOR:
Shares sold 172,727 $342,000
Shares issued in 185 $365
Shares Redemption (0) $(0)
--------- ---------
172,912 $342,365
========= =========
</TABLE>
JUMPER STRATEGIC ADVANTAGE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 - (UNAUDITED) CONTINUED
NOTE 5. INVESTMENTS
For the period from June 30, 1999 through December 31, 1999, purchases and sales
of investment securities, other than short-term investments, aggregated $709,215
and $872,222, respectively. As of December31, 1999, the gross unrealized
appreciation for all securities totaled $169 and the gross unrealized
depreciation for all securities totaled $8,150 for a net unrealized depreciation
of $7,981. The aggregate cost of securities for federal income tax purposes at
June 30, 1999 was $1,537,473.
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 December 31, 1999, the
Tennessee Aquarium beneficially owned more than 61% of the Fund.