<TABLE>
<CAPTION>
10K SMARTTRUST FUND
SCHEDULE OF INVESTMENTS - MARCH 31, 2000
(UNAUDITED)
<S> <C> <C>
COMMON STOCKS - 20.3% SHARES VALUE
COMPUTER HARDWARE - 3.6%
EMC Corp. (a) 200 25,200
-----------------
COMPUTER SERVICES & SOFTWARE - 4.6%
America Online, Inc. (a) 475 32,241
-----------------
FINANCIAL SERVICES - 4.0%
Fannie Mae 500 28,187
-----------------
DRUGS & PHARMACEUTICALS - 3.9%
Pfizer, Inc. 750 27,469
-----------------
SEMICONDUCTORS - 4.2%
Xilinx, Inc. (a) 350 28,962
-----------------
TOTAL COMMON STOCKS (COST $124,221) 142,059
-----------------
MUTUAL FUNDS - 31.9%
Janus Global Life Sciences Fund 1,332 25,206
Rydex Series Trust Biotechnology Fund 926 26,741
Vanguard 500 Index Fund 1,237 170,878
-----------------
TOTAL MUTUAL FUNDS (COST $220,000) 222,825
-----------------
PRINCIPAL
AMOUNT VALUE
Money Market Securities - 47.9%
Firstar Treasury Fund, 5.09% (b) (Cost $334,841) $ 334,841 334,841
-----------------
TOTAL INVESTMENTS - 100.1% (COST $679,062) 699,725
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1)% (432)
-----------------
TOTAL NET ASSETS - 100.0% 699,293
=================
(a) Non-Income Producing
(b) Variable rate security; the coupon rate shown represents the rate at March 31, 2000.
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
10K SMARTTRUST FUND MARCH 31, 2000
Statement of Assets & Liabilities
(UNAUDITED)
ASSETS
Investment in securities (cost $679,062) $ 699,725
Interest receivable 1,645
-------------------
TOTAL ASSETS 701,370
LIABILITIES
Accrued investment advisory fee payable $ 883
Accrued 12b-1 fees 1,194
-----------------
TOTAL LIABILITIES 2,077
-------------------
NET ASSETS $ 699,293
===================
Net Assets consist of:
Paid in capital $ 670,000
Accumulated undistributed net investment income 1,046
Accumulated undistributed net realized gain on investments 7,584
Net unrealized appreciation on investments 20,663
-------------------
NET ASSETS, for 66,716 shares $ 699,293
===================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($699,293/66,716) $ 10.48
===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
10K SMARTTRUST FUND
STATEMENT OF OPERATIONS FOR THE PERIOD NOVEMBER 15, 1999
(COMMENCEMENT OF OPERATIONS) TO MARCH 31, 2000
(UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
Interest income $ 4,031
---------------
TOTAL INCOME 4,031
EXPENSES
Investment advisory fee $ 1,791
Administration fees 4,225
Transfer agent fees 1,539
Pricing & bookkeeping fees 1,500
Audit fees 1,200
12b-1 fees 1,194
Miscellaneous fees 159
-------------------
Total expenses before reimbursement 11,608
Reimbursed expenses (8,623)
-------------------
Total operating expenses 2,985
---------------
NET INVESTMENT INCOME 1,046
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 7,584
Change in net unrealized appreciation (depreciation)
on investment securities 20,663
-------------------
Net gain on investment securities 28,247
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 29,293
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
10K SMARTTRUST FUND
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD NOVEMBER 15, 1999
(COMMENCEMENT OF OPERATIONS) TO MARCH 31, 2000
(UNAUDITED)
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income $ 1,046
Net realized gain on investment securities 7,584
Change in net unrealized appreciation (depreciation) 20,663
-----------------
Net increase in net assets resulting from operations 29,293
-----------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income 0
From net realized gain 0
-----------------
Total distributions 0
-----------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 670,000
Shares issued in reinvestment 0
Shares redeemed 0
-----------------
Net increase in net assets resulting
from share transactions 670,000
-----------------
TOTAL INCREASE IN NET ASSETS 699,293
-----------------
Net Assets
Beginning of period 0
-----------------
End of period [including accumulated undistributed net
investment income of $1,046] $ 699,293
=================
</TABLE>
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<TABLE>
<CAPTION>
10K SMARTTRUST FUND
FINANCIAL HIGHLIGHTS FOR THE PERIOD NOVEMBER 15, 1999
(COMMENCEMENT OF OPERATIONS) TO MARCH 31, 2000
(UNAUDITED)
<S> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 10.00
---------------
Income from investment operations
Net investment income 0.03
Net realized and unrealized gain 0.45
---------------
Total from investment operations 0.48
---------------
Less Distributions
From net investment income 0.00
From net realized gain 0.00
---------------
Total distributions 0.00
---------------
Net asset value, end of period $ 10.48
===============
TOTAL RETURN (a) 4.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 699
Ratio of expenses to average net assets 2.50% (b)
Ratio of expenses to average net assets
before reimbursement 9.72% (b)
Ratio of net investment income to
average net assets 0.88% (b)
Ratio of net investment income to
average net assets before reimbursement (6.35)% (b)
Portfolio turnover rate 69.79% (b)
(a) For periods of less than a full year, total returns are not annualized.
(b) Annualized
</TABLE>
<PAGE>
10K SMARTTRUST FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
(UNAUDITED)
NOTE 1. ORGANIZATION
The 10K SmartTrust Fund (the "Fund") was organized as a series of 10K
SmartTrust (the "Trust"). The Trust is an open-end investment company
established under the laws of Ohio by an Agreement and Declaration of Trust
dated April 6, 1999 (the "Trust Agreement") and commencing operations on
November 15, 1999. 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 growth. The Trust
Agreement permits the Trustees to issue an unlimited number of shares of
beneficial interest of separate series without par value. The Fund is one of a
series of funds currently authorized by the Trustees.
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.
10K SMARTTRUST FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (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 at least 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 Trust retains Monument Investments, Inc. (the "Advisor") to manage the
Fund's investments. The Advisor was organized in 1996. J. Paul Hamilton is
primarily responsible for the day-to-day management of the Fund's portfolio. The
President of the Advisor is also President of the Trust.
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 of 1.50% of the average daily net assets of the Fund. For the
period November 15, 1999 (commencement of operations) through March 31, 2000 the
Advisor received a fee of $1,791 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 2.50%. For the period November 15, 1999
(commencement of operations) through March 31, 2000, the Advisor reimbursed
expenses of $8,623. There is no assurance that such reimbursement will continue
in the future.
10K SMARTTRUST FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (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 November 15, 1999 (commencement of operations) through
March 31, 2000, the Administrator received fees of $4,225 from the Fund for
administrative services provided to the Fund.
The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940. This rule allows the Fund to pay distribution
fees for the sale and distribution of its shares and for services provided to
its shareholders. The annual distribution and service fee is 1.00% of the Fund's
average daily net assets. This fee is payable to the Advisor, as Distribution
Coordinator. Because these fees are paid out of the Fund's assets on an on-going
basis, over time these fees will increase the cost of your investment in Fund
shares and may cost you more than paying other types of sales charges. 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 November 15, 1999 (commencement of operations)
through March 31, 2000.
NOTE 4. TAXES
When you establish a 10K SmartTrust Account, you will be treated, for Federal
gift tax purposes, as the donor of a future interest. Any additional investments
you make in your 10K SmartTrust Account during the term of your 10K SmartTrust
will likewise be considered to be gifts of a future interest. As a result,
neither your initial investment nor any subsequent investment will qualify for
the Annual Gift Tax Exclusion of $10,000 (indexed for inflation). Accordingly,
you will be required to file a United States Gift Tax Return (Form 709) with
respect to any year in which you make an investment in your 10K SmartTrust. No
gift tax is payable, however, until your "Lifetime Exemption" or "Unified Tax
Credit" is exceeded. For tax years through 1999, the Unified Tax Credit is
$650,000; this amount will increase to $1,000,000 by 2006. Each gift is applied
against the exemption equivalent that would otherwise be available in the
future. Each 10K SmartTrust Account for which the trustee files a tax return
will be charged a $25 fee to help offset a portion of the tax return
preparation. Additionally, as each 10K SmartTrust Account reaches maturity a
$100 administrative fee will be charged to help offset any costs incurred by the
trustee associated with the 10K SmartTrust attaining maturity.
10K SMARTTRUST FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED) - CONTINUED
NOTE 4. TAXES - CONTINUED
Note: The above paragraph holds true unless the grantor offers the beneficiary
the right to withdraw the annual gift tax exclusion of $10,000 (indexed for
inflation) within 30 days of establishing the 10K SmartTrust. In making
available the withdrawal option to the beneficiary, the gift would be deemed a
current interest gift and would now qualify for the annual gift tax exclusion of
$10,000.
NOTE 5. SHARE TRANSACTIONS
As of March 31, 2000 there were an unlimited number of authorized shares
for the Fund. Paid in capital at March 31, 2000 was $670,000.
Transactions in shares were as follows:
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 15, 1999
(COMMENCEMENT OF OPERATIONS) THROUGH
MARCH 31, 2000
<S> <C> <C>
SHARES DOLLARS
Shares sold 66,716 $670,000
Shares issued in
reinvestment 0 0
Shares redeemed
0 0
------- --------
66,716 $670,000
======= ========
</TABLE>
<PAGE>
NOTE 6. INVESTMENTS
For the period November 15, 1999 (commencement of operations) through March
31, 2000, purchases and sales of investment securities, other than short-term
investments, aggregated $370,675 and $34,038, respectively. As of March 31,
2000, the gross unrealized appreciation for all securities totaled $28,716 and
the gross unrealized depreciation for all securities totaled $8,053 for a net
unrealized appreciation of $20,663. The aggregate cost of securities for federal
income tax purposes at March 31, 2000 was $679,062.
10K SMARTTRUST FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED) - CONTINUED
NOTE 7. 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.
