ANNUAL SHAREHOLDER LETTER
MONTEAGLE FIXED INCOME FUND FALL 2000
DEAR SHAREHOLDER,
As the new millennium begins a new era in history, so does the Monteagle Fixed
Income Fund signal the start of a new fund for intermediate-term bond investors.
Both events have brought forth great expectations.
As we began the year, the concern for most bond investors was the possibility of
increasing inflation in the economy. The Federal Reserve Board had been paying
close attention to the seemingly, never-ending robust economy resulting in tight
labor markets and the potential for higher wages and prices. In response, the
Federal Open Market Committee raised short-term interest rates three times since
the beginning of 2000. The last raise coming in May has likely signaled the end
of Fed tightening, but maintained the bias the Fed has had for combating
inflation.
Bond prices in the intermediate and long-term markets acted positively to the
last Fed increase. The bond market took comfort in the fact that the Fed had
acted aggressively to avert a potential inflationary spiral. Most bond market
participants correctly perceived that the Fed was probably done tightening for
2000 and no further action would be taken pending the outcome of the
Presidential election in the fall.
Prior to the last Fed rate increase our proprietary bond market model (the "BMW"
or Bond Market Watch) signaled a potential for lower interest rates. As interest
rates fall bond prices rise, with intermediate and long-term bonds usually
rising higher in price than shorter maturities. We acted upon this signal by
lengthening our average maturity in the portfolio to take advantage of this
anticipated interest rate drop. This strategy proved very beneficial to
investors in the Fund. Intermediate-term interest rates have come down nearly
100 basis points since the beginning of the year.
The Fund also took advantage of wider interest rate or yield differences between
the Treasury bond market and the corporate bond market. This yield rate
difference, known as the "spread," caused high-grade corporate bonds to be more
attractive on a total return basis than other bond market sectors.
Two factors will likely cause some market volatility in the near future. First,
the outcome of the election, which may have long-term economic consequences; and
second, the rise in world petroleum prices, which eventually work their way into
the world's economies. As we take steps to keep portfolio volatility at a
moderate level, we are confident in our ability and tools used to manage the
Fund for the intermediate-term fixed income investor.
Date LB Int Gvt./Credit Monteagle Fixed Income
Index - $10,487 - $10,454
12/20/99 10,000.00 10,000.00
12/31/99 9,967.00 9,976.25
1/31/00 9,930.12 9,929.74
2/29/00 10,011.55 10,004.40
3/31/00 10,115.67 10,109.70
4/28/00 10,092.40 10,085.23
5/31/00 10,108.55 10,058.92
6/30/00 10,286.46 10,240.10
7/31/00 10,364.64 10,323.22
8/31/00 10,486.94 10,453.73
THIS GRAPH, PREPARED IN ACCORDANCE WITH SEC REGULATIONS,
COMPARES A $10,000 INVESTMENT IN THE FUND WITH A SIMILAR INVESTMENT IN THE
UNMANAGED LEHMAN BROTHERS INTERMEDIATE TERM GVT./CREDIT BOND INDEX ON DECEMBER
20, 1999 HELD THROUGH AUGUST 31, 2000. RESULTS FOR THE FUND AND LEHMAN BROTHERS
INTERMEDIATE TERM GOV./CREDIT BOND INDEX INCLUDE THE REINVESTMENT OF DIVIDEND
AND CAPITAL GAIN DISTRIBUTIONS IF ANY. THE FUND'S PERFORMANCE IS AFTER ALL FEES.
THE INDEX DOES NOT HAVE ANY FEES. INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURN REPRESENTS PAST
PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
PERFORMANCE
<S> <C> <C>
Six Month Total Return Since
Inception
2/29/00 - 8/31/00 12/20/99 -8/31/00
----------------- -----------------
MONTEAGLE FIXED INCOME 4.49% 4.54%
FUND
LB IT Gvt./Credit TR 4.75% 4.87%
</TABLE>
Sincerely,
HOWE AND RUSLING
Thomas G. Rusling
President
MONTEAGLE LARGE-CAP FUND FALL 2000
DEAR SHAREHOLDER,
The three main factors that have driven the bull market over the past several
years have been low inflation, strong earnings growth, and an accommodative
Federal Reserve. Two of those factors are no longer present. Monetary policy has
become more restrictive, which has caused a slowdown in earnings growth.
The net result has been the most difficult equity markets in a decade.
Technology stocks have been particularly hard hit with NASDAQ falling as much as
40% from its high, a bear market by any definition. Internet stocks were quite
simply a disaster with many of the stocks falling over 80% from their highs.
Fortunately, we had taken some protective measures that mitigated the effect of
the decline in tech stocks. First, we completely avoided the speculation in the
"dot.coms" (now redubbed the "dot.bombs"). This was simply a function of
following our discipline of investing in companies with consistent earnings
growth selling at reasonable valuations.
In addition, our discipline indicated that the valuation of technology stocks,
particularly compared to their "old economy" brethren, had become excessively
high. As a result, we systematically reduced our holdings in technology stocks
throughout the late winter and early spring. We currently have the lowest
exposure in technology stocks that we have had in several years.
This leaves us in an excellent position to take advantage of increasingly
attractive valuations in tech stocks. We still believe that technology is the
growth engine for the economy and the best place for growth investors over time.
Over the next several months we anticipate taking advantage of the wonderful
opportunities the technology sell off has created.
Date S&P 500 Index Monteagle Large-Cap Fund
- $10,410 - $9,920
1/18/00 10,000.00 10,000.00
1/31/00 9,497.63 9,390.00
2/29/00 9,318.02 9,430.00
3/31/00 10,229.02 9,860.00
4/28/00 9,921.39 9,630.00
5/31/00 9,717.72 9,390.00
6/30/00 9,957.32 9,430.00
7/31/00 9,801.41 9,640.00
8/31/00 10,409.87 9,920.00
THIS GRAPH, PREPARED IN ACCORDANCE WITH SEC REGULATIONS, COMPARES A $10,000
INVESTMENT IN THE FUND WITH A SIMILAR INVESTMENT IN THE UNMANAGED S&P 500 INDEX
ON JANUARY 18, 2000 HELD THROUGH AUGUST 31, 2000. RESULTS FOR THE FUND AND S&P
500 INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS IF
ANY. THE FUND'S PERFORMANCE IS AFTER ALL FEES. THE INDEX DOES NOT HAVE ANY FEES.
INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. TOTAL RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS.
<TABLE>
<CAPTION>
PERFORMANCE
<S> <C> <C>
Six Month Total Return Since
Inception
2/29/00 - 8/31/00 1/18/00 -8/31/00
----------------- ----------------
MONTEAGLE LARGE-CAP FUND 5.20% (0.80)%
S&P 500 Index 11.72% 4.10%
</TABLE>
Sincerely,
HOWE AND RUSLING
Thomas G. Rusling
President
MONTEAGLE OPPORTUNITY GROWTH FUND FALL 2000
DEAR SHAREHOLDER,
Date S&P 500 Index Monteagle Opportunity Growth Fund
- $11,023 - $11,210
12/20/99 10,000.00 10,000.00
12/31/99 10,588.60 11,360.00
1/31/00 10,056.66 11,400.00
2/29/00 9,866.48 17,100.00
3/31/00 10,831.10 13,710.00
4/28/00 10,505.36 11,300.00
5/31/00 10,289.70 9,270.00
6/30/00 10,543.41 10,010.00
7/31/00 10,378.32 9,480.00
8/31/00 11,022.59 11,210.00
THIS GRAPH, PREPARED IN ACCORDANCE WITH SEC REGULATIONS, COMPARES A $10,000
INVESTMENT IN THE FUND WITH A SIMILAR INVESTMENT IN THE UNMANAGED S&P 500 INDEX
ON DECEMBER 20,1999 HELD THROUGH AUGUST 31, 2000. RESULTS FOR THE FUND AND S&P
500 INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS IF
ANY. THE FUND'S PERFORMANCE IS AFTER ALL FEES. THE INDEX DOES NOT HAVE ANY FEES.
INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. TOTAL RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF
FUTURE RESULTS.
<TABLE>
<CAPTION>
PERFORMANCE
<S> <C> <C>
Six Month Total Return Since
Inception
2/29/00 - 8/31/00 12/20/00 -8/31/00
----------------- -----------------
MONTEAGLE OPPORTUNITY (34.44)% 12.10%
GROWTH FUND
S&P 500 Index 11.72% 10.23%
</TABLE>
Bears had the run of Wall Street for yet another quarter as investor concerns
about skyrocketing energy prices, rising interest rates, and global inflation
unsettled the markets.
The deflated "wealth effect," punctured by a collapsing stock market, where an
estimated 60% of U.S. households are investors, has signified possibly larger
problems for retailers as six interest rate increases, and the oil price surge
are beginning to curb spending.
By most estimates, according to the The Wall Street Journal, the economy is
"downshifting," and with it has come a flood of disappointing earnings
pre-announcements. Not to be caught napping in this clearly hostile earnings
environment, the NASDAQ composite index plunged 12.7% in September. It was the
worst September in this index's 29-year history as the market dismantled some of
the most visible names in corporate America -- a true-life "Ride of the
Valkyries".
It is becoming clearer to investors that the second-half boom forecast by most
analysts will not materialize. The debate, today, is whether the bull market is
over, or merely pausing, before it resumes growth at a more moderate pace. By
most estimates, technology stocks will continue to show the most consistent
earnings and revenue growth and will lead the market, even in a period of slower
economic growth. It is the direction of this leadership, up or down, that
remains to be seen.
As of October 31, 2000, the Monteagle Opportunity Growth Fund is hedged on that
question with about 12% of the portfolio held in technology stocks, 20% in
energy stocks, and 21% in drug/healthcare stocks. The Fund holds about 47% in
cash or cash equivalents.
Sincerely,
T.H. Fitzgerald, Jr.
MONTEAGLE VALUE FUND Fall 2000
DEAR SHAREHOLDER,
We are pleased to report a successful inaugural year ending August 31, 2000 for
the Monteagle Value Fund. In the past twelve months, the financial markets have
endured an extremely volatile period. Markets soared throughout 1999 and into
early 2000 before higher short-term interest rates halted the market's climb in
mid-March.
The Dow Jones Industrial Average and the NASDAQ have fallen 4.57% and 17.20%
respectively through October 31, 2000, yet the twelve-month returns remain
positive at +4.61% and 13.74% respectively. The markets reached the speculative
phase in 1999 and continued on that track until excess liquidity dried up in
March 2000.
Since its inception on December 20, 1999 registration date, the Monteagle Value
Fund's price has risen from $10.00 to its October 31, 2000 price of $11.93
returning +19.3% for that period of time. For the same period of time, the Dow
Jones Industrial Average and the NASDAQ are down 0.32% and 10.82% respectively.
The Fund currently trades at 14.62 times 2000 earnings and has an estimated
yield of 2.2%.
Date Russell 2000 Value Monteagle Value Fund
Index - $11,978 - $11,660
12/20/99 10,000.00 10,000.00
12/31/99 10,482.75 10,250.00
1/31/00 10,208.61 9,930.00
2/29/00 10,832.56 9,240.00
3/31/00 10,883.36 10,240.00
4/28/00 10,947.76 10,200.00
5/31/00 10,780.72 10,600.00
6/30/00 11,095.72 10,610.00
7/31/00 11,465.42 10,760.00
8/31/00 11,978.01 11,660.00
THIS GRAPH, PREPARED IN ACCORDANCE WITH SEC REGULATIONS, COMPARES A $10,000
INVESTMENT IN THE FUND WITH A SIMILAR INVESTMENT IN THE UNMANAGED RUSSELL 2000
VALUE INDEX ON DECEMBER 20, 1999 HELD THROUGH AUGUST 31, 2000. RESULTS FOR THE
FUND AND RUSSELL 2000 VALUE INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND
CAPITAL GAIN DISTRIBUTIONS IF ANY. THE FUND'S PERFORMANCE IS AFTER ALL FEES. THE
INDEX DOES NOT HAVE ANY FEES. INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURN REPRESENTS PAST
PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
PERFORMANCE
<S> <C> <C>
Six Month Total Return Since
Inception
2/29/00 - 8/31/00 12/20/00 -8/31/00
----------------- -----------------
MONTEAGLE VALUE FUND 26.19% 16.60%
Russell 2000 Value Index 10.57% 19.78%
</TABLE>
The Federal Reserve worked to reduce excess liquidity in the markets as monetary
growth slowed during the second and third quarter of 2000. Federal Reserve
Chairman Alan Greenspan remains biased toward tightening. Higher energy prices
and full employment are adding to the strain on the markets as inflationary
pressures reduce investment returns.
The leadership in the equity markets for 2000 is concentrated in defense
contractors, health care, savings and loans, natural gas, tobacco, hospital
management, investment banks, and energy exploration companies. Groups that have
significantly underperformed include containers, telecommunications, office
equipment, steel, household furnishings, photography, aluminum and paper and
forest products.
In the coming months, we believe the Federal Reserve will do what is necessary
to orchestrate an economic soft landing. We believe that the Monteagle Value
Fund is positioned to benefit from the current economic conditions and remain
committed to buying companies which trade below average market valuations based
on book values, price/earnings ratios and dividend yields.
In conclusion, the Monteagle Value Fund investment strategy remains to offer
investors a lower risk portfolio of stocks producing positive investment returns
over time.
Sincerely,
Russell L. Robinson
President
Robinson Investment Group
<PAGE>
<TABLE>
<CAPTION>
Monteagle Fixed Income Fund
Schedule of Investments - August 31, 2000
<S> <C> <C>
Principal
Amount Value
CORPORATE BONDS - 39.8%
Archer Daniels Midland Co. 8.125%, 06/01/2012 1,000,000 $ 1,043,263
Caterpillar, Inc. 9.375%, 08/18/2011 1,000,000 1,133,425
ChaseManhattan Corp. 7.875%, 07/15/2006 1,050,000 1,078,161
Cit Group Holdings, Inc. 6.625%, 06/15/2005 850,000 819,013
Commercial Credit 10.00%, 12/01/2008 1,000,000 1,150,764
Daimler Chrysler NA Holding 8.00%, 06/15/2010 500,000 513,404
Deutsche Telekom International 8.00%, 06/15/2010 1,000,000 1,014,283
Equifax, Inc. 6.50%, 06/15/2003 500,000 492,210
Lehman Brothers Holdings, Inc. 7.875%, 11/01/2009 600,000 601,513
Maytag Corp. 7.61%, 03/3/2003 250,000 248,967
MBIA, Inc. NT 9.375%, 02/15/2011 376,000 418,914
MCI Communications Corp. 7.50%, 08/20/2004 550,000 554,626
Merrill Lynch & Co. Inc. 8.00%, 06/01/2007 500,000 514,790
Monsanto Co. 8.875%, 12/15/2009 250,000 277,291
Morgan Stanley Dean Witter & Co. 8.00%, 06/15/2010 600,000 622,739
Norfolk Southern Corp. 7.750%, 08/15/2002 200,000 202,215
Vodafone Airtouch PLC 7.00%, 10/1/2003 500,000 495,474
Wal-Mart Stores, Inc. 6.875%, 08/10/2009 500,000 496,150
-----------------
-----------------
TOTAL CORPORATE BONDS (Cost $11,709,613) 11,677,202
-----------------
-----------------
MUNICIPAL OBLIGATIONS - 30.3%
Municipal Obligations (General) - 17.4%
Buffalo NY Pension Systems Services 8.50%, 08/15/2005 500,000 528,075
Delaware River Port Authority 7.50%, 01/01/2012 1,500,000 1,500,135
Los Angeles County CA Pension Obligation Series D 5.92%, 06/30/2007 1,100,000 1,082,323
Mississippi Street MS Farm Reform Act Series N & Ecomony
Development Highway Act Series F 6.20%, 09/01/2010 345,000 318,187
Morris TN 6.00%, 03/01/2007 410,000 384,449
NJ Sports & Expos 7.37%, 03/01/2007 500,000 505,235
Tulare County CA Pension Obligation 7.31%, 08/15/2010 800,000 799,944
-----------------
5,118,348
-----------------
Monteagle Fixed Income Fund
Schedule of Investments - August 31, 2000 - continued
Principal
Amount Value
MUNICIPAL OBLIGATIONS - continued
Municipal Obligations (Revenue) - 12.9%
Atlanta & Fulton County GA Recreation Authority Downtown
Arena project 6.625%, 12/01/2011 300,000 $ 283,734
Detroit MI Downtown Development Authority 6.30%, 0701/2010 500,000 464,985
Harris County Houston Texas Sports Authority 6.15%, 11/15/2008 300,000 279,843
LaGrange, GA Development Authority 6.10%, 02/01/2010 750,000 688,995
New York City, NY Transportation Finance Authority
6.25%, 05/01/2009 700,000 654,220
New York Street Environmental Facilities Corp. 6.66%, 03/15/2007 950,000 922,678
New York Street Mortgage Agency 6.70%, 10/01/2004 500,000 493,540
-----------------
3,787,995
-----------------
TOTAL MUNICIPAL OBLIGATIONS ( Cost $9,312,794) 8,906,343
-----------------
U.S. TREASURY AND AGENCY OBLIGATIONS - 27.1%
Federal Home Loan Bank 7.46%, 08/24/2006 500,000 496,955
Federal Home Loan Bank 6.120%, 08/26/2008 500,000 469,148
Federal Home Loan Bank 7.00%, 03/15/2010 450,000 453,918
Federal National Mortgage Association 6.04%, 02/25/2009 1,000,000 927,227
Federal National Mortgage Association 6.58%, 12/17/2007 1,200,000 1,161,713
Federal National Mortgage Association 6.60%, 03/11/2009 850,000 817,004
Federal National Mortgage Association 6.56%, 11/26/2007 675,000 650,325
US Treasury Notes 7.25%, 05/15/2004 100,000 103,812
US Treasury Notes 7.25%, 08/15/2004 400,000 416,625
US Treasury Notes 6.50%, 02/15/2010 1,000,000 1,044,063
US Treasury Notes 5.625%, 05/15/2008 1,275,000 1,250,297
US Treasury Notes 5.50%, 05/15/2009 150,000 145,828
-----------------
TOTAL U.S. TREASURY & AGENCY OBLIGATIONS (Cost $8,133,003) 7,936,915
-----------------
Principal
Amount Value
Money Market Securities - 1.7%
Firstar Treasury Fund, 5.53% (a) (Cost $501,094) 501,094 501,094
-----------------
TOTAL INVESTMENTS - 98.9% (Cost $29,656,504) 29,021,554
-----------------
Other assets less liabilities - 1.1% 324,387
-----------------
TOTAL NET ASSETS - 100.0% $ 29,345,941
=================
(a) Floating rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
<TABLE>
<PAGE>
<CAPTION>
<S> <C> <C>
Monteagle Fixed Income Fund August 31, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $29,656,504) $ 29,021,554
Receivable for fund shares sold 54,665
Interest receivable 431,999
-------------------
Total assets 29,508,218
Liabilities
Accrued investment advisory fee $ 28,431
Dividends payable 133,846
-----------------
Total liabilities 162,277
-------------------
Net Assets $ 29,345,941
===================
Net Assets consist of:
Paid in capital $ 30,288,043
Accumulated net realized loss on investments (307,152)
Net unrealized depreciation on investments (634,950)
-------------------
Net Assets, for 2,915,703 shares $ 29,345,941
===================
Net Assets
Offering price and redemption price per share ($29,345,941 / 2,915,703) $ 10.06
===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Fixed Income Fund
Statement of Operations for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C> <C>
Investment Income
Interest income $ 1,053,983
------------------
Total Income 1,053,983
Expenses
Investment advisory fee $ 235,276
Trustees' fees 850
------------------
Total operating expenses 236,126
------------------
Net Investment Income 817,857
------------------
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (307,152)
Change in net unrealized appreciation
on investment securities 793,704
------------------
Net gain on investment securities 486,552
------------------
Net increase in net assets resulting from operations $ 1,304,409
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Fixed Income Fund
Statement of Changes in Net Assets for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 817,857
Net realized loss on investment securities (307,152)
Change in net unrealized appreciation 793,704
-----------------
-----------------
Net increase in net assets resulting from operations 1,304,409
-----------------
Distributions to shareholders
From net investment income (1,131,991)
From net realized gain -
-----------------
Total distributions (1,131,991)
-----------------
Share Transactions
Net proceeds from sale of shares 31,244,919
Shares issued in reinvestment of distributions 48,153
Shares redeemed (2,119,549)
-----------------
Net increase in net assets resulting
from share transactions 29,173,523
-----------------
-----------------
Total increase in net assets 29,345,941
-----------------
Net Assets
Beginning of period -
-----------------
End of period [including accumulated undistributed net
investment income of $0] $ 29,345,941
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Fixed Income Fund
Financial Highlights for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.28
Net realized and unrealized gain 0.16
--------------
Total from investment operations 0.44
--------------
Less Distributions
From net investment income (0.38)
--------------
Total distributions (0.38)
--------------
Net asset value, end of period $ 10.06
==============
Total Return (a) 4.54%
Ratios and Supplemental Data
Net assets, end of period (000) $ 29,346
Ratio of expenses to average net assets 1.15% (b)
Ratio of net investment income to
average net assets 3.97% (b)
Portfolio turnover rate 58.87% (b)
(a) For periods of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Large Cap Fund
Schedule of Investments - August 31, 2000
<S> <C> <C>
Common Stocks - 92.1% Shares Value
Cement, Hydraulic - 4.0%
Southdown, Inc. 8,270 $ 518,943
-----------------
-----------------
Computer Communication Equipment - 4.3%
Cisco Systems, Inc. (a) 8,050 552,431
-----------------
-----------------
Computers & Office Equipment - 4.9%
Hewlett Packard Co. 5,170 624,278
-----------------
-----------------
Construction, Mining & Materials Handling - 4.0%
Dover Corp. 10,600 518,075
-----------------
-----------------
Diversified - Manufacturing - 4.7%
Tyco International, Ltd. 10,550 601,350
-----------------
-----------------
Drug - Wholesale - 4.3%
Cardinal Health, Inc. 6,740 551,416
-----------------
-----------------
Insurance - 8.0%
American International Group, Inc. 6,600 588,225
MGIC Investment Corp. 7,330 431,096
-----------------
-----------------
1,019,321
-----------------
-----------------
National Commercial Banks - 4.7%
Citigroup, Inc. 10,267 599,317
-----------------
-----------------
Perfumes, Cosmetics & Other Toilet Preparations - 3.4%
Colgate-Palmolive Co. 8,650 440,609
-----------------
-----------------
Petroleum Refining - 3.8%
Shell Transportation & Trading Co. PLC (c) 9,590 493,286
-----------------
-----------------
Pharmaceutical Preparations - 9.3%
Elan Corp. PLC (a) (c) 11,020 642,604
Johnson & Johnson 5,930 545,189
-----------------
-----------------
1,187,793
-----------------
-----------------
Retail - Lumber & Other Building Materials Dealers - 2.8%
Home Depot, Inc. 7,360 353,740
-----------------
-----------------
Retail - Variety Stores - 3.8%
Dollar Tree Stores, Inc. (a) 12,150 492,834
-----------------
-----------------
Semiconductors - 4.0%
Fairchild Semiconductor International, Inc. (a) 12,750 506,813
-----------------
-----------------
Services-Computer Integrated Systems Design - 4.7%
General Electric, Inc. 10,300 604,481
-----------------
-----------------
Monteagle Large Cap Fund
Schedule of Investments - August 31, 2000 - continued
Common Stocks - continued Shares Value
Services-Computer Processing & Data Preparations - 4.0%
First Data Corp. 10,600 $ 505,488
-----------------
-----------------
Services-Engineering, Accounting, Research - 4.0%
Paychex, Inc. 11,350 506,494
-----------------
-----------------
Specialty Industry Machinery - 4.6%
Applied Materials, Inc. (a) 6,870 592,966
-----------------
-----------------
Telephone & Telegraph Apparatus - 6.8%
ADC Telecommunications, Inc. (a) 12,240 501,075
Polycom, Inc. (a) 3,300 370,837
-----------------
-----------------
871,912
-----------------
-----------------
Telephone Communications (No Radio Telephone) - 2.0%
Verizon Communications 6,020 262,622
-----------------
-----------------
TOTAL COMMON STOCKS (Cost $10,915,633 ) 11,804,169
-----------------
-----------------
Principal
Amount Value
Money Market Securities - 7.7%
Firstar Treasury Fund, 5.53% (b) (Cost $994,729) 994,729 994,729
-----------------
-----------------
TOTAL INVESTMENTS - 99.8% (Cost $11,910,362) 12,798,898
-----------------
-----------------
Other assets less liabilities - 0.2% 20,893
-----------------
-----------------
Total Net Assets - 100.0% $ 12,819,791
=================
(a) Non-Income Producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
(c) American Depository Receipt
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Large Cap Fund August 31, 2000
Statement of Assests & Liabilities for the period January 18, 2000
(Commencement of Operations) to August 31, 2000
<S> <C> <C>
Assets
Investment in securities (cost $11,910,362) $ 12,798,898
Interest receivable 4,820
Dividends receivable 8,537
Receivable for fund shares sold 20,438
------------------
Total assets 12,832,693
Liabilities
Accrued investment advisory fee $ 12,902
-----------------
Total liabilities 12,902
------------------
Net Assets $ 12,819,791
==================
Net Assets consist of:
Paid in capital $ 12,397,674
Accumulated undistributed net investment income 3,613
Accumulated net realized loss on investments (470,032)
Net unrealized appreciation on investments 888,536
------------------
Net Assets, for 1,292,935 shares $ 12,819,791
==================
Net Assets
Offering price and redemption price per share ($ 12,819,791 / 1,292,935) $ 9.92
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Large Cap Fund
Statement of Operations for the period January 18, 2000
(Commencement of Operations) to August 31, 2000
<S> <C> <C>
Investment Income
Dividend income $ 32,992
Interest income 18,511
---------------
Total Income 51,503
Expenses
Investment advisory fee $ 47,040
Trustees' Fee 850
------------------
Total operating expenses 47,890
---------------
Net Investment Income 3,613
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (470,032)
Change in net unrealized appreciation
on investment securities 888,536
------------------
Net gain on investment securities 418,504
---------------
Net increase in net assets resulting from operations $ 422,117
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Large Cap Fund
Statement of Changes in Net Assets for the period January 18, 2000
(Commencement of Operations) to August 31, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 3,613
Net realized loss on investment securities (470,032)
Change in net unrealized appreciation 888,536
-----------------
-----------------
Net increase in net assets resulting from operations 422,117
-----------------
Distributions to shareholders
From net investment income 0
From net realized gain 0
-----------------
-----------------
Total distributions 0
-----------------
Share Transactions
Net proceeds from sale of shares 12,609,433
Shares issued in reinvestment of distributions 0
Shares redeemed (211,759)
-----------------
Net increase in net assets resulting
from share transactions 12,397,674
-----------------
-----------------
Total increase in net assets 12,819,791
-----------------
Net Assets
Beginning of period 0
-----------------
End of period [including accumulated undistributed net
investment income of $3,613] $ 12,819,791
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Large Cap Fund
Financial Highlights for the period January 18, 2000
(Commencement of Operations) to August 31, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income (loss) 0.01
Net realized and unrealized gain (loss) (0.09)
--------------
Total from investment operations (0.08)
--------------
Less Distributions
From net investment income 0.00
From realized gain 0.00
--------------
--------------
Total distributions 0.00
--------------
Net asset value, end of period $ 9.92
==============
Total Return (0.80)% (a)
Ratios and Supplemental Data
Net assets, end of period (000) 12,820
Ratio of expenses to average net assets 1.27% (b)
Ratio of net investment income to
average net assets 0.10% (b)
Portfolio turnover rate 68.00% (b)
(a) For a period of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Opportunity Growth Fund
Schedule of Investments - August 31, 2000
<S> <C> <C>
Common Stocks - 91.1% Shares Value
Cogeneration Services & Small Power Products - 3.1%
Calpine Corp. (a) 23,100 $ 2,286,900
------------------
------------------
Communications Equipment - 10.0%
Extreme Networks, Inc. (a) 30,400 2,829,100
Juniper Networks, Inc. (a) 15,700 3,355,875
MRV Communications, Inc. (a) 17,500 1,348,593
------------------
------------------
7,533,568
------------------
------------------
Electronic Components, NEC - 5.5%
Power-One, Inc. (a) 26,200 4,151,063
------------------
------------------
Electronic Computers - 1.4%
Sun Microsystems, Inc. (a) 8,200 1,040,888
------------------
------------------
Glass, Glassware, Pressed or Blown - 3.4%
Corning, Inc. 7,800 2,557,913
------------------
------------------
Laboratory Analytical Instruments - 4.0%
Newport Corp. 18,200 2,893,800
------------------
------------------
Oil and Natural Gas - 2.8%
Anadarko Petroleum Corp. 32,400 2,130,948
------------------
------------------
Pharmaceutical Preparations - 1.3%
Barr Laboratories, Inc. (a) 13,600 965,600
------------------
------------------
Printed Circuit Boards - 10.0%
Sanmina Corp. (a) 35,600 4,200,800
Plexus Corp. (a) 21,500 3,327,125
------------------
------------------
7,527,925
------------------
------------------
Semiconductors - 24.4%
PMC Sierra, Inc. (a) 7,300 1,722,800
Applied Micro Circuits Corp. (a) 16,900 3,429,643
Broadcom Corp. (a) 16,900 4,225,000
Integrated Devise Technology, Inc. (a) 23,300 2,044,575
SDL, Inc. (a) 7,000 2,781,188
Semtech Corp. (a) 8,700 1,030,406
JDS Uniphase Corp. (a) 25,000 3,112,109
------------------
------------------
18,345,721
------------------
------------------
Services - Business Services, NEC - 3.5%
Redback Networks, Inc. (a) 17,700 2,643,938
------------------
------------------
Services-Commercial Physical & Biological Research - 4.1%
Celgene Corp. (a) 20,000 1,480,000
Quest Diagnostics, Inc. (a) 12,800 1,584,000
------------------
------------------
3,064,000
------------------
------------------
Monteagle Opportunity Growth Fund
Schedule of Investments - August 31, 2000 - continued
Common Stocks - continued Shares Value
Services - Medical Laboratories - 3.7%
Laboratory Corp. of American Holdings (a) 23,600 $ 2,792,175
------------------
------------------
Services-Prepackaged Software - 7.6%
Brocade Communications Systems, Inc. (a) 10,400 2,348,450
Check Point Software Technologies Ltd. (a) 11,200 1,633,100
Siebel Systems, Inc. (a) 8,900 1,760,531
------------------
------------------
5,742,081
------------------
------------------
Telephone & Telegraph Apparatus - 6.3%
ADC Telecommunications, Inc. (a) 81,400 3,332,312
Nortel Networks Corp. 17,400 1,419,188
------------------
------------------
4,751,500
------------------
------------------
TOTAL COMMON STOCKS (Cost $53,301,410) 68,428,020
------------------
------------------
Principal
Amount
Money Market Securities - 11.5 %
Firstar Treasury Fund, 5.53% (b) (Cost $8,637,824) 8,637,824 8,637,824
------------------
------------------
TOTAL INVESTMENTS - 102.6% (Cost $61,939,234) 77,065,844
------------------
------------------
Liabilities in excess of other assets - (2.6%) (1,964,149)
------------------
------------------
Total Net Assets - 100.0% $ 75,101,695
==================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Monteagle Opportunity Growth Fund August 31, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $61,939,234) $ 77,065,844
Receivable for fund shares sold 2,413,445
Dividends receivable 1,730
Interest receivable 71,723
------------------
Total assets 79,552,742
Liabilities
Accrued investment advisory fee $ 72,248
Payable for investments purchased 4,378,799
-----------------
Total liabilities 4,451,047
------------------
Net Assets $ 75,101,695
==================
Net Assets consist of:
Paid in capital $ 43,001,812
Accumulated net realized gain on investments 16,973,273
Net unrealized appreciation on investments 15,126,610
------------------
Net Assets, for 6,701,952 shares $ 75,101,695
==================
Net Assets
Offering price and redemption price per share ($75,101,695/6,701,952) $ 11.21
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Opportunity Growth Fund
Statement of Operations for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C> <C>
Investment Income
Dividend income $ 7,880
Interest income 403,929
-----------------
Total Income 411,809
Expenses
Investment advisory fee $ 710,649
Trustees' fees 850
------------------
Total operating expenses 711,499
-----------------
Net Investment Loss (299,690)
-----------------
Realized & Unrealized Gain (Loss)
Net realized gain on investment securities 17,272,963
Change in net unrealized depreciation
on investment securities (7,919,048)
------------------
Net gain on investment securities 9,353,915
-----------------
Net increase in net assets resulting from operations $ 9,054,225
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Opportunity Growth Fund
Statement of Changes in Net Assets for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment loss $ (299,690)
Net realized gain on investment securities 17,272,963
Change in net unrealized depreciation (7,919,048)
-------------------
-------------------
Net increase in net assets resulting from operations 9,054,225
-------------------
Distributions to shareholders
From net investment income 0
From net realized gain 0
-------------------
-------------------
Total distributions 0
-------------------
Share Transactions
Net proceeds from sale of shares 87,385,790
Shares issued in reinvestment of distributions 0
Shares redeemed (21,338,320)
-------------------
Net increase in net assets resulting
from share transactions 66,047,470
-------------------
-------------------
Total increase in net assets 75,101,695
-------------------
Net Assets
Beginning of period 0
-------------------
End of period [including undistributed accumulated net
investment income of $0] $ 75,101,695
===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Opportunity Growth Fund
Financial Highlights for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment loss (0.04)
Net realized and unrealized gain 1.25
--------------
--------------
Total from investment operations 1.21
--------------
Less Distributions
From net investment income 0
From net realized gain 0
--------------
--------------
Total Distributions 0
--------------
Net asset value, end of period $ 11.21
==============
Total Return (a) 12.10%
Ratios and Supplemental Data
Net assets, end of period (000) $ 75,102
Ratio of expenses to average net assets 1.27% (b)
Ratio of net investment income to
average net assets (0.53)% (b)
Portfolio turnover rate 605.41% (b)
(a) For period of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Value Fund
Schedule of Investments - August 31, 2000
<S> <C> <C>
Common Stocks - 95.7% Shares Value
Aeronautical Systems - 2.8%
Litton Industries, Inc. (a) 10,000 $ 553,125
-----------------
-----------------
Air Transportation Scheduled - 3.8%
AMR Corp. Delaware (a) 8,000 262,500
Delta Airlines, Inc. 10,000 495,000
-----------------
-----------------
757,500
-----------------
-----------------
Aircraft - 2.6%
Northrop Grumman Corp. 6,500 505,781
-----------------
-----------------
Asset Backed Securities - 6.3%
Amsouth Bancorp. 21,000 383,250
Bank of America Corp. 16,225 869,052
-----------------
-----------------
1,252,302
-----------------
-----------------
Auto Controls For Regulating Residential - 2.7%
Honeywell International, Inc. 13,700 528,306
-----------------
-----------------
Chemicals - 4.7%
Dow Chemical Co. 15,000 392,813
Great Lakes Chemical Corp. 5,000 168,750
ICN Pharmaceuticals, Inc. 13,000 368,062
-----------------
-----------------
929,625
-----------------
-----------------
Communications Equipment - 1.8%
Motorola, Inc. 10,000 360,625
-----------------
-----------------
Consumer Products - 4.5%
Nashua Corp. 40,000 325,000
Procter & Gamble Co. 9,000 556,312
-----------------
-----------------
881,312
-----------------
-----------------
Depository Banking - 3.3%
Concord EFS, Inc. (a) 20,500 658,563
-----------------
-----------------
Electric Services - 5.7%
TXU Corp. 12,000 419,250
Western Resources, Inc. 35,000 700,000
-----------------
-----------------
1,119,250
-----------------
-----------------
Engines & Turbines - 1.6%
McDermott International, Inc. 40,000 307,500
-----------------
-----------------
Financial Services - 3.5%
Raymond James Financial, Inc. 24,500 698,250
-----------------
-----------------
Health Products & Services - 3.3%
Quorum Health Group, Inc. (a) 51,000 656,625
-----------------
-----------------
Monteagle Value Fund
Schedule of Investments - August 31, 2000 - continued
Common Stocks - continued Shares Value
Industrial Instruments - 1.9%
Rockwell International Corp. 9,400 $ 380,112
-----------------
-----------------
Insurance - 4.4%
Safeco Corp. 18,000 473,625
Torchmark Corp. 14,000 392,875
-----------------
-----------------
866,500
-----------------
-----------------
Motor Vehicles - 3.7%
General Motors Corp. 10,000 721,875
-----------------
-----------------
National Commercial Banks - 9.6%
Bank One Corp. 8,000 282,000
First Tennessee National Corp. 27,100 596,200
First Union Corp. 15,200 439,850
Regions Financial Corp. 26,700 580,725
-----------------
-----------------
1,898,775
-----------------
-----------------
Oil & Gas Filed Machinery & Equipment - 1.1%
Friede Goldman Halter, Inc. (a) 40,000 225,000
-----------------
-----------------
Pharmaceutical Preparations - 2.0%
Bristol-Myers Squibb, Inc. 7,500 397,500
-----------------
-----------------
Photographic Equipment & Supplies - 1.9%
Xerox Corp. 23,000 369,438
-----------------
-----------------
Publishing or Printing - 1.7%
Knight Ridder, Inc. 6,300 344,138
-----------------
-----------------
Railroads, Line Haul Operating - 3.7%
CSX Corp. 30,500 728,188
-----------------
-----------------
Retail - Department Stores - 1.0%
Saks, Inc. (a) 19,000 190,000
-----------------
-----------------
Retail-Drug Stores & Proprietary Stores - 1.0%
Rite Aid Corp. (a) 48,000 192,000
-----------------
-----------------
Security Brokers, Dealers & Flotation Companies - 2.6%
Knight Trading Group, Inc. (a) 16,000 502,000
-----------------
-----------------
Monteagle Value Fund
Schedule of Investments - August 31, 2000 - continued
Common Stocks - continued Shares Value
State Commercial Banks - 4.0%
Summit Bancorp. 15,000 $ 415,312
SunTrust Banks, Inc. 7,500 370,312
-----------------
-----------------
785,624
-----------------
-----------------
Surgical & Medical Instruments & Apparatus - 2.3%
Becton Dickinson & Co. 15,000 451,875
-----------------
-----------------
Telephone Communications (No Radio Telephone) - 5.7%
AT&T Corp. 16,300 513,450
Lucent Technologies, Inc. 1,000 41,813
Verizon Communications 13,000 567,125
-----------------
-----------------
1,122,388
-----------------
-----------------
Water Supply - 2.5%
American Water Works, Inc. 20,500 502,250
-----------------
-----------------
TOTAL COMMON STOCKS (Cost $18,618,368) 18,886,427
-----------------
-----------------
Principal
Amount
Money Market Securities - 4.1%
Firstar Treasury Fund, 5.53% (b) (Cost $801,731) 801,731 801,731
-----------------
-----------------
TOTAL INVESTMENTS - 99.8% (Cost $19,420,099) 19,688,158
-----------------
-----------------
Other assets less liabilities - 0.2% 46,049
-----------------
-----------------
Total Net Assets - 100.0% $ 19,734,207
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Monteagle Value Fund August 31, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $19,420,099) $ 19,688,158
Cash 6,523
Dividends receivable 43,636
Interest receivable 7,187
Receivable for fund shares sold 11,000
------------------
Total assets 19,756,504
Liabilities
Accrued investment advisory fee $ 22,297
-----------------
Total liabilities 22,297
------------------
Net Assets $ 19,734,207
==================
Net Assets consist of:
Paid in capital $ 18,985,790
Accumulated undistributed net investment income 98,396
Accumulated net realized gain on investments 381,962
Net unrealized appreciation on investments 268,059
------------------
Net Assets, for 1,693,196 shares $ 19,734,207
==================
Net Assets
Offering price and redemption price per share ($19,734,207 / 1,693,196) $ 11.66
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Value Fund
Statement of Operations for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C> <C>
Investment Income
Dividend income $ 229,957
Interest income 41,283
----------------
Total Income 271,240
Expenses
Investment advisory fee $ 171,994
Trustee's fees 850
------------------
Total operating expenses 172,844
----------------
Net Investment Income 98,396
----------------
Realized & Unrealized Gain (Loss)
Net realized gain on investment securities 381,962
Change in net unrealized appreciation
on investment securities 2,411,473
------------------
Net gain on investment securities 2,793,435
----------------
Net increase in net assets resulting from operations $ 2,891,831
================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Value Fund
Statement of Changes in Net Assets for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 98,396
Net realized gain on investment securities 381,962
Change in net unrealized appreciation 2,411,473
-----------------
Net increase in net assets resulting from operations 2,891,831
-----------------
Distributions to shareholders
From net investment income 0
From net realized gain 0
-----------------
Total distributions 0
-----------------
Share Transactions 0
Net proceeds from sale of shares 18,835,833
Shares issued in reinvestment of distributions 0
Shares redeemed (1,993,457)
-----------------
Net increase in net assets resulting
from share transactions 16,842,376
-----------------
Total increase in net assets 19,734,207
-----------------
Net Assets
Beginning of period 0
-----------------
End of period [including accumulated undistributed net
investment income of $98,396] $ 19,734,207
=================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Monteagle Value Fund
Financial Highlights for the period December 20, 1999
(Commencement of Operations) to August 31, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.06
Net realized and unrealized gain 1.60
--------------
--------------
Total from investment operations 1.66
--------------
Less Distributions
From net investment income 0.00
From net realized gain 0.00
--------------
--------------
Total Distributions 0.00
--------------
Net asset value, end of period $ 11.66
==============
Total Return (a) 16.60%
Ratios and Supplemental Data
Net assets, end of period (000) $ 19,734
Ratio of expenses to average net assets 1.36% (b)
Ratio of net investment income to
average net assets 0.77% (b)
Portfolio turnover rate 375.67% (b)
(a) For periods of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000
NOTE 1. ORGANIZATION
The Monteagle Fixed Income Fund, Monteagle Opportunity Growth Fund, Monteagle
Value Fund, and Monteagle Large Cap Fund (each a "Fund" or collectively, the
"Funds") were organized as series of AmeriPrime Advisers Trust (the "Trust") on
August 3, 1999. The Monteagle Fixed Income Fund, Monteagle Opportunity Growth
Fund, and Monteagle Value Fund, commenced operations on December 20, 1999, and
the Monteagle Large Cap Fund commenced operations on January 18, 2000. Prior to
December 20, 1999 the Monteagle Fixed Income, Monteagle Opportunity Growth, and
the Monteagle Value Funds were a collection of trusts at First Farmers &
Merchants National Bank. On December 20, 1999 these trusts transferred their
assets to the Monteagle Funds in a tax-free exchange where the trusts received
in return an amount of shares of the Funds equal to the market value of the
assets transferred to the Funds. The Funds retained the historical cost basis of
the securities that were transferred and as a result the Funds had unrealized
gains and losses on the securities that were transferred. The following table
represents components of net assets at December 20, 1999:
<TABLE>
<CAPTION>
<S> <C> <C>
FUND UNREALIZED PAID-IN CAPITAL
APPRECIATION/(DEPRECIATION)
Monteagle Fixed Income $ (1,428,654) $31,140,824
Monteagle Opportunity Growth $ 23,045,658 $46,689,282
Monteagle Value $ (2,143,415) $20,679,002
</TABLE>
The investment objective of the Monteagle Fixed Income Fund is total return and
the investment objective of the other Funds is to provide long-term growth of
capital. The Monteagle Opportunity Growth Fund is a non-diversified series of
the Trust. The Monteagle Fixed Income Fund, the Monteagle Large Cap Fund, and
the Monteagle Value Fund are diversified series of the Trust. The Trust is an
open-end investment company established under the laws of Ohio by an Agreement
and Declaration of Trust dated August 3, 1999 (the "Trust Agreement"). The Trust
Agreement permits the Trustees to issue an unlimited number of shares of
beneficial interest of separate series without par value. Each Fund is one of a
series of funds currently offered by the Trust.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
Fund in the preparation of its financial statements.
SECURITIES VALUATIONS- Securities, that 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 applicable adviser'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
applicable adviser determines the last bid price does not accurately reflect the
current value or when restricted securities are being valued, such securities
are valued as determined in good faith by the applicable adviser, 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
applicable adviser 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 applicable adviser, 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.
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUE
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FEDERAL INCOME TAXES- Each Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, each 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- Each Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on at least an
annual basis. Each Fund intends to distribute its net long-term capital gains
and its net short-term capital gains at least once a year.
OTHER- Each 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. Generally accepted accounting principles require that permanent financial
reporting tax differences relating to shareholder distributions be reclassified
to net realized gains for the Opportunity Growth Fund, and to paid-in capital
for the Fixed Income Fund.
NOTE 3. CHANGE IN ACCOUNTING PRINCIPLE
Fixed income securities normally will be amortized/accreted over the respective
life of the securities. Long-term debt securities that were transferred-in-kind
and used as the basis for the initial subscription into the Fixed Income Fund
had not been amortized/accreted from their initial purchase date. As a result,
the Fixed Income Fund has made amortization and accretion adjustments
accordingly. The cumulative effect of this accounting change had no impact on
total net assets of the Fixed Income Fund, but resulted in a $317,154 reduction
in cost of securities and a corresponding $317,154 decrease in net unrealized
depreciation, based on securities transferred into the Fund on December 20,
1999.
The effect of the change for the period ended August 31, 2000 was to decrease
net investment income by $317,154, resulting in a reclassification to paid-in
capital for the Fixed Income Fund.
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville TN
37203, serves as investment manager to the Funds. In this capacity, Nashville
Capital Corporation advises and assists the officers of the Trust in conducting
the business of the Fund and is responsible for providing general investment
advice and guidance to the Funds, although the investment manager has delegated
responsibility for the selection and ongoing monitoring of the securities in
each Fund's investment portfolio to the Fund's respective applicable adviser set
forth below. Nashville Capital Corporation was formed in 1986 and, as of
September 30, 1999, managed assets of approximately $98 million for financial
institutions. Each Fund is authorized to pay the investment manager a fee based
on average daily net assets at the following rates:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Assets Opportunity Growth Value Fixed Income Large Cap
------ ------------------ ----- ------------ ---------
Up to and
including $25 million 1.35% 1.35% 1.15% 1.25%
From $25 up to and
including $50 million 1.30% 1.25% 1.10% 1.13%
From $50 up to and
Over $100 million 1.10% 1.00% 0.90% 0.95%
</TABLE>
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUE
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
Under the terms of each Fund's management agreement (the "Agreement"), the
investment manager manages each Fund's investments subject to approval of the
Board of Trustees and pays all of the expenses of each Fund except brokerage
commissions, taxes, borrowing costs, fees and expenses of non-interested person
trustees, 12b-1 expenses and extraordinary expenses. It should be noted that
most investment companies pay their own operating expenses directly, while the
Funds' expenses, except those specified above, are paid by the investment
manager. For the period December 20, 1999 (commencement of operations of the
Fixed Income, Opportunity Growth, and Value Funds) through August 31, 2000, the
investment manager received fees of $235,276, $710,649, and $171,994 from the
Fixed Income, Opportunity Growth, and Value Funds, respectively. For the period
January 18, 2000 (commencement of operations of the Large Cap Fund) through
August 31, 2000, the investment manager received a fee of $47,040 from the Large
Cap Fund.
LARGE CAP FUND AND FIXED INCOME FUND. The investment manager has retained Howe
and Rusling, Inc. to serve as the adviser to the Large Cap Fund and the Fixed
Income Fund. The firm was established in 1930. The Howe and Rusling Investment
Committee are primarily responsible for the day-to-day management of the Funds.
Nashville Capital Corporation has agreed to pay Howe and Rusling an annual
advisory fee for the Large Cap Fund of 0.40% of net assets up to $25 million,
0.30% of net assets from $25 million up to $50 million, and 0.25% of net assets
of $50 million and greater. Nashville Capital Corporation has agreed to pay Howe
and Rusling an annual advisory fee for the Fixed Income Fund of 0.30% of net
assets up to $25 million, 0.25% of net assets from $25 million up to $50
million, and 0.20% of net assets of $50 million and greater.
For the period December 20, 1999 (commencement of operations of the Fixed Income
Fund) through August 31, 2000, the adviser received a fee of $60,228 from
Nashville Capital Corporation for the Fixed Income Fund. For the period January
18, 2000 (commencement of operations of the Large Cap Fund) through August 31,
2000, the adviser received a fee of $15,054 from Nashville Capital Corporation
for the Large Cap Fund.
OPPORTUNITY GROWTH FUND The investment manager has retained T.H. Fitzgerald, Jr.
(d/b/a T.H. Fitzgerald & Co.) to serve as the adviser to the Opportunity Growth
Fund. The firm has been owner-managed since it's founding in 1959. Mr.
Fitzgerald is primarily responsible for the day-to-day management of the Fund.
Nashville Capital has agreed to pay T.H. Fitzgerald & Co. an annual advisory fee
equal to 0.70% of net assets up to $25 million, 0.60% of net assets from $25
million up to $50 million, and 0.45% of net assets from $50 million up to $100
million, and 0.40% of net assets of $100 million and greater. For the period
December 20, 1999 (commencement of operations of the Opportunity Growth Fund)
through August 31, 2000, the adviser received a fee of $321,945 from Nashville
Capital Corporation for the Opportunity Growth Fund.
VALUE FUND. The investment manager has retained Robinson Investment Group, Inc.
to serve as the adviser to the Value Fund. Russell L. Robinson founded the firm
in 1996. Mr. Russell is primarily responsible for the day-to-day management of
the Value Fund. Nashville Capital has agreed to pay Russell Investment Group an
annual advisory fee of 0.60% of net assets up to $25 million, 0.45% of net
assets from $25 million up to $50 million, 0.35% of net assets from $50 million
up to $100 million, and 0.30% of net assets of $100 million and greater. For the
period December 20, 1999 (commencement of operations of the Value Fund) through
August 31, 2000, the adviser received a fee of $76,442 from Nashville Capital
Corporation for the Value Fund.
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
Each Fund retains AmeriPrime Financial Services, Inc. ("the Administrator"), a
wholly owned subsidiary of Unified Financial Services, Inc., to manage each
Fund's business affairs and to provide each Fund with administrative services
including all regulatory reporting and necessary office equipment and personnel.
The Administrator receives a monthly fee from Nashville Capital Corporation
equal to an annual average rate of 0.10% of each Fund's average daily net assets
up to $50 million dollars, 0.075% of each Fund's average daily net assets from
$50 million to $100 million dollars and 0.050% of each fund's average daily net
assets over $100 million dollars. For the period December 20, 1999 (commencement
of operations of Fixed Income, Opportunity Growth, and Value Funds) through
August 31, 2000, the Administrator received fees of $20,651, $56,182, and
$12,812 from Nashville Capital Corporation for administrative services provided
to the Fixed Income, Opportunity Growth, Value Funds, respectively. For the
period January 18, 2000 (commencement of operations of Large Cap Fund through
August 31, 2000, the Administrator received fees of $3,888 from Nashville
Capital Corporation for administrative services provided to the Large Cap Fund.
Each Fund retains AmeriPrime Financial Securities, Inc. (the "Distributor") to
act as the principal distributor of each Fund's shares. There were no payments
made to the Distributor for the period December 20, 1999 (commencement of
operations) through August 31, 2000 for the Fixed Income, Opportunity Growth,
and Value Funds, respectively. There were no payments made to the Distributor
for the period January 18, 2000 (commencement of operations) through August 31,
2000 for the Large Cap Fund. Certain members of management of the Administrator
and the Distributor are also members of management of the AmeriPrime Trust.
Each Fund retains Unified Fund Services, Inc. ("Unified"), 431 North
Pennsylvania Street, Indianapolis, Indiana 43204, and acts as each Fund's
transfer agent and, in such capacity, maintains the records of each
shareholder's account answers shareholders inquiries concerning their accounts,
processes purchases and redemptions of each Fund's shares, acts as dividend and
distribution disbursing agent and performs other transfer agent and shareholder
service functions.
For its services as transfer agent, Unified receives a monthly fee from the
Funds of $1.20 per shareholder (subject to a minimum monthly fee of $900). For
the period December 20, 1999 (commencement of operations of the Fixed Income,
Opportunity Growth, and Value Funds) through August 31, 2000 and for the period
of January 19, 2000 (commencement of operations for Large Cap Fund) through
August 31, 2000, Unified received fees of $10,013, $10,022, and $9,907 from
Nashville Capital Corporation for transfer agent services provided to the Fixed
Income, Opportunity Growth, and Value Funds, respectively and $8,993 for the
Large Cap Fund. In addition, Unified provides each Fund with fund accounting
services, which includes certain monthly reports, record keeping and other
management-related services. For its services as fund accountant, Unified
receives an annual fee from the Nashville Capital Corporation equal to 0.0275%
of each Fund's assets up to $100 million, 0.0250% of each Fund's assets from
$100 million to $300 million and 0.020% of each Fund's assets over $300 million
(subject to various minimum fees, the maximum being $2,100 per month for assets
of $20 to $100 million). For the period December 20, 1999 (commencement of
operations of the Fixed Income, Opportunity Growth, and Value Funds) through
August 31, 2000 and for the period of January 18, 2000 (commencement of
operations for Large Cap Fund) through August 31, 2000, Unified received fees of
$17,319, $17,961, and $15,102 for fund accounting services provided to the Fixed
Income, Opportunity Growth, and Value Funds, respectively, and a fee of $8,205
for fund accounting services provided to the Large Cap Fund.
NOTE 5. SHARE TRANSACTIONS
FIXED INCOME FUND. As of August 31, 2000, there were an unlimited number of
authorized shares for the Fund. Paid in capital at August 31, 2000 was
$30,288,043.
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 5. SHARE TRANSACTIONS - CONTINUED
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD DECEMBER 20, 1999
(COMMENCEMENT OF OPERATIONS)
TO AUGUST 31, 2000
<S> <C> <C>
SHARES DOLLARS
Shares sold 3,125,249 31,244,919
Shares issued from
Reinvested of Dividend 4,860 48,153
Shares redeemed (214,406) (2,119,549)
------------------- --------------------
2,915,703 $29,173,523
=================== ====================
</TABLE>
OPPORTUNITY GROWTH FUND. As of August 31, 2000, there were an unlimited number
of authorized shares for the Fund. Paid in capital at August 31, 2000 was
$43,001,812.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD DECEMBER 20, 1999
(COMMENCEMENT OF OPERATIONS)
TO AUGUST 31, 2000
<S> <C> <C>
SHARES DOLLARS
Shares sold 8,618,264 87,385,790
Shares redeemed (1,916,312) (21,338,320)
----------- ------------
6,701,952 $66,047,470
=========== ============
</TABLE>
VALUE FUND. As of August 31, 2000 there was an unlimited number of authorized
shares for the Fund. Paid in capital at August 31, 2000 was $18,985,790.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD DECEMBER 20, 1999
(COMMENCEMENT OF OPERATIONS)
TO AUGUST 31, 2000
<S> <C> <C>
SHARES DOLLARS
Shares sold 1,883,761 18,835,833
Shares redeemed (190,565) (1,993,457)
-------------- ------------
1,693,196 $16,842,376
============== ============
</TABLE>
LARGE CAP FUND. As of August 31, 2000, there were an unlimited number of
authorized shares for the Fund. Paid in capital at August 31, 2000 was
$12,397,674.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD JANUARY 18, 1999
(COMMENCEMENT OF OPERATIONS)
TO AUGUST 31, 2000
<S> <C> <C>
SHARES DOLLARS
Shares sold 1,315,309 $12,609,433
Shares redeemed (22,374) (211,759)
------------- ------------
1,292,935 $12,397,674
============= ============
</TABLE>
MONTEAGLE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 6. INVESTMENTS
FIXED INCOME FUND. For the period December 20, 1999 (commencement of operations)
to August 31, 2000 purchases and sales of investment securities, other than
short-term investments, aggregated $13,891,412 and $11,620,723, respectively.
The gross unrealized appreciation for all securities totaled $192,954 and the
gross unrealized depreciation for all securities totaled $827,904 for a net
unrealized depreciation of $634,950. The aggregate cost of securities for
federal income tax purposes at August 31, 2000 was $29,656,504.
OPPORTUNITY GROWTH FUND. For the period December 20, 1999 (commencement of
operations) to August 31, 2000 purchases and sales of investment securities,
other than short-term investments, aggregated $286,287,871 and $295,567,172,
respectively. The gross unrealized appreciation for all securities totaled
$15,302,746 and the gross unrealized depreciation for all securities totaled
$176,136 for a net unrealized appreciation of $15,126,610. The aggregate cost of
securities for federal income tax purposes at August 31, 2000 was $61,939,234.
VALUE FUND. For the period December 20, 1999 (commencement of operations) to
August 31, 2000 purchases and sales of investment securities, other than
short-term investments, aggregated $44,428,304 and $45,753,100, respectively.
The gross unrealized appreciation for all securities totaled $1,458,256 and the
gross unrealized depreciation for all securities totaled $1,190,197 for a net
unrealized appreciation of $268,059. The aggregate cost of securities for
federal income tax purposes at August 31, 2000 was $19,420,099.
LARGE CAP FUND. For the period January 18, 2000 (commencement of operations) to
August 31, 2000 purchases and sales of investment securities, other than
short-term investments, aggregated $13,563,736 and $2,178,070, respectively. The
gross unrealized appreciation for all securities totaled $1,110,580 and the
gross unrealized depreciation for all securities totaled $222,044 for a net
unrealized appreciation of $888,536. The aggregate cost of securities for
federal income tax purposes at August 31, 2000 was $11,910,362.
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.
NOTE 8. RELATED PARTY TRANSACTIONS
Nashville Capital Corporation and the advisers are not registered broker-dealers
of securities and thus do not receive commissions on trades made on behalf of
the Funds. 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 August
31, 2000, Farmers and Merchants Corporation, for the benefit of its customers,
beneficially owned 100% of each Fund.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
Monteagle Opportunity Growth Fund
Monteagle Value Fund
Monteagle Large Cap Fund
Monteagle Fixed Income Fund
(series of AmeriPrime Advisors Trust)
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Monteagle Opportunity Growth Fund, the
Monteagle Value Fund, the Monteagle Large Cap Fund and the Monteagle Fixed
Income Fund, as of August 31, 2000, the related statements of operations, the
statements of changes in net assets, and the financial highlights for each of
the periods indicated. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash held as
of August 31, 2000 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of the
Monteagle Opportunity Growth Fund, the Monteagle Value Fund, the Monteagle Large
Cap Fund and the Monteagle Fixed Income Fund as of August 31, 2000, the results
of their operations, the changes in their net assets, and their financial
highlights for each of the periods indicated in conformity with generally
accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
September 24, 2000
Dear Fellow Shareholders,
The StoneRidge Funds have performed well since their inception in October 1999.
The StoneRidge Small Cap Equity Fund has returned 71.94% from its inception on
October 1, 1999 versus the Russell 2000 Growth index return of 36.44%. The
StoneRidge Equity Fund has returned 36.93% since its inception on October 1,
1999 versus a return of 19.58% for the Standard & Poor's 500 index. Finally, the
StoneRidge Bond Fund advanced 5.21% since its October 13, 1999 inception versus
the 5.70% return of the Lehman Intermediate Government/Corporate Index.
Outlook
Since the inception of the StoneRidge Funds last year, both equity and fixed
income markets have been extremely volatile. Some of the more vexing issues
facing investors over the past year have been high energy prices, rising
inflation and interest rates, the strong US dollar, the Federal Reserve's
tightening actions, historically high equity valuations, slowing corporate
earnings, presidential and congressional elections and political instability in
the Middle East. This is quite a daunting list, but is not meant to imply that
all is bleak. When viewed from a more upbeat perspective, there are a number of
positives in the list as well. The Fed is likely finished raising interest
rates. While inflation has risen during the year, it has not become problematic
thanks to this same aggressive action by the Fed. Likewise, interest rates have
begun to decline and energy prices appear to have ceased their steep climb. The
elections have been settled and equity valuations are becoming more reasonable.
The greatest remaining difficulty for the equity markets is the nascent economic
slowdown. The potential far-reaching impacts of a slowing economy are causing
weak stock markets and relatively strong bond markets at present. Only time will
tell whether the Fed will be able to achieve the economic soft landing it seeks.
We think that patient investors should continue to seek investments in those
companies exhibiting positive earnings momentum and attractive valuations. The
quantitative methods utilized by StoneRidge to assist us in identifying
attractive investments focus specifically on these attributes. The qualitative
analysis performed by our team of sector specialists confirms our belief that we
are investing in the best available securities on behalf of our fellow
investors.
We are grateful for the trust you have placed in the StoneRidge Funds. We pledge
to do everything we can to continue to earn that trust. We look forward to a
successful new year.
Sincerely,
Joseph E. Stocke, CFA
Managing Director and Chief Investment Officer
StoneRidge Investment Partners
<PAGE>
StoneRidge Equity Fund
The StoneRidge Equity Fund has performed well since its inception in October
1999, led higher by superior stock selection in a number of economic sectors. In
the last few months of the Fund's fiscal year, there has been a notable shift
away from the recent narrow focus on ultra large cap stocks in favor of mid
caps. The increase in market breadth favors funds like ours, which invest across
a spectrum of market capitalizations.
Percent of Net Assets
Ten Largest Equity Holdings August 31, 2000
--------------------------- ---------------
WorldCom, Inc. 4.19%
General Electric Co. 4.06%
Apple Computer, Inc. 3.70%
EMC Corp. 3.65%
America Online, Inc. 3.48%
AES Corp. 2.96%
Texas Instruments, Inc. 2.40%
CIENA Corp. 2.38%
Integrated Device Technology, Inc. 2.38%
Cisco Systems, Inc. 2.36%
-------
Total 31.56%
Percent of Net Assets
Sector Weightings August 31, 2000
----------------- ---------------
Basic Materials 1.99%
Capital Goods 8.59%
Consumer Cyclicals 10.59%
Consumer Staples 3.93%
Energy 5.18%
Finance 14.42%
Health Care 7.09%
Technology 31.65%
Telecommunications 8.22%
Utilities 3.74%
Cash 4.60%
-------
Total 100.00%
We believe the StoneRidge Equity Fund will continue to perform well over the
long term. Our focus is on investments in mid cap to large cap stocks possessing
a combination of good growth prospects and reasonable valuation. The Fund will
continue to be diversified across all economic sectors. We expect this approach
to continue to unlock value in this difficult marketplace.
RETURNS FOR THE PERIODS ENDING AUGUST 31, 2000
Average Annual
Return Since Inception
Fund/Index (October 1, 1999)
---------- ----------------------
StoneRidge Equity Fund 36.93%
S&P 500 Index 19.58%
[OBJECT OMITTED]
StoneRidge Equity Fund S&P 500 Index
10/01/99 $10,000 $10,000
10/31/99 $10,780 $10,633
11/30/99 $11,160 $10,849
12/31/99 $11,611 $11,487
01/31/00 $11,111 $10,910
02/29/00 $10,941 $10,704
03/31/00 $12,242 $11,750
04/30/00 $11,972 $11,397
05/31/00 $11,461 $11,163
06/30/00 $12,192 $11,438
07/31/00 $12,202 $11,259
08/31/00 $13,693 $11,958
This chart shows the value of a hypothetical initial investment of
$10,000 in the Fund and the S&P 500 Index on October 1, 1999
(commencement of operations) and held through August 31, 2000. The
S&P 500 Index is a widely recognized unmanaged index of common stock
prices. Performance figures reflect the change in value of the
stocks in the index, reinvestment of dividends and are not
annualized. The index returns do not reflect expenses, which have
been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS
PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
StoneRidge Small Cap Equity Fund
The StoneRidge Small Cap Equity Fund has performed extremely well since its
inception in October 1999. A number of factors contributed to this performance.
Chief among those was superior stock selection. The Fund additionally benefited
from strategic over and under weightings in certain economic sectors. Finally,
the StoneRidge Small Cap Equity Fund was a natural beneficiary of the shift away
from the narrow focus on ultra large cap stocks in favor of small cap stocks.
Percent of Net Assets
Ten Largest Equity Holdings August 31, 2000
--------------------------- ---------------
Electronics Boutique Holdings Corp. 5.07%
Actuate Corp. 5.06%
Rudolph Technologies, Inc. 4.50%
Diversa Corp. 4.03%
REX Stores Corp. 3.92%
AirGate PCS, Inc. 3.43%
JNI Corp. 3.33%
Pemstar, Inc. 3.19%
F5 Networks, Inc. 2.42%
MIPS Technologies, Inc. - Class A 2.32%
-------
Total 37.27%
Percent of Net Assets
Sector Weightings August 31, 2000
----------------- ---------------
Capital Goods 1.62%
Consumer Cyclicals 16.51%
Consumer Staples 1.95%
Energy 7.33%
Finance 2.82%
Health Care 16.26%
Technology 36.32%
Telecommunications 9.34%
Cash 7.85%
-------
Total 100.00%
We believe the StoneRidge Small Cap Equity Fund will continue to perform well
over the long term. We are optimistic that the Fund's focus on selecting those
small cap stocks with a combination of robust growth prospects and reasonable
valuation will lead to continued outperformance.
RETURNS FOR THE PERIODS ENDING AUGUST 31, 2000
Average Annual
Return Since Inception
Fund/Index (October 1, 1999)
---------- ----------------------
StoneRidge Small Cap Equity Fund 71.94%
Russell 2000 Growth Index 36.44%
[OBJECT OMITTED]
StoneRidge Small Cap Russell 2000
Equity Fund Growth Index
10/01/99 $10,000 $10,000
10/31/99 $11,140 $10,256
11/30/99 $12,570 $11,341
12/31/99 $13,676 $13,339
01/31/00 $14,071 $13,215
02/29/00 $15,314 $16,290
03/31/00 $16,112 $14,578
04/30/00 $13,788 $13,106
05/31/00 $12,019 $11,958
06/30/00 $15,253 $13,503
07/31/00 $14,778 $12,346
08/31/00 $17,194 $13,644
This chart shows the value of a hypothetical initial investment of
$10,000 in the Fund and the S&P 500 Index on October 1, 1999
(commencement of operations) and held through August 31, 2000.
The S&P 500 Index is a widely recognized unmanaged index of common
stock prices. Performance figures reflect the change in value
of the stocks in the index, reinvestment of dividends and are not
annualized. The index returns do not reflect expenses, which
have been deducted from the Fund's return. THE FUND'S RETURN
REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE
RESULTS.
StoneRidge Bond Fund
The StoneRidge Bond Fund has marginally trailed its benchmark since its
inception in October 1999. This Fund's investments have been skewed in favor of
fixed income sectors stressing higher yields, notably investment grade corporate
bonds and asset and mortgage backed securities. Economic activity has slowed in
the face of higher interest rates and this has led to relative underperformance
in the sectors we favored and outperformance by Treasuries, where we have
maintained an underweighted posture.
Percent of Net Assets
Sector Weightings August 31, 2000
----------------- ---------------
U.S. Treasury 16.41%
U.S. Agency 8.71%
Mortgage Backed 13.98%
Asset Backed 4.70%
Industrial 19.68%
Utilities 11.40%
Finance 13.95%
Cash 11.17%
------
Total 100.00%
We remain optimistic about the prospects for the Fund. As the economy regains
its footing, we believe the focus of the Fund on higher yielding, investment
grade securities will yield positive results.
RETURNS FOR THE PERIODS ENDING AUGUST 31, 2000
Average Annual
Return Since Inception
Fund/Index (October 13, 1999)
---------- ----------------------
StoneRidge Bond Fund 5.21%
Lehman Intermediate
Government/Corporate Bond Index 5.70%
[OBJECT OMITTED]
Lehman Intermediate
StoneRidge Bond Fund Govt/Corp Bond Index
10/13/99 $10,000 $10,000
10/31/99 $10,090 $10,065
11/30/99 $10,105 $10,078
12/31/99 $10,059 $10,045
01/31/00 $10,016 $10,008
02/29/00 $10,086 $10,090
03/31/00 $10,201 $10,196
04/30/00 $10,178 $10,172
05/31/00 $10,178 $10,188
06/30/00 $10,341 $10,368
07/31/00 $10,404 $10,447
08/31/00 $10,521 $10,570
This chart shows the value of a hypothetical initial investment of
$10,000 in the Fund and the unmanaged Lehman Intermediate
Government/Corporate Bond Index on October 13, 1999 (commencement
of operations) and held through August 31, 2000. Performance
figures include the reinvestment of dividends and are not
annualized. The index returns do not reflect expenses, which have
been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS
PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
<S> <C> <C>
COMMON STOCKS - 95.4% SHARES VALUE
ADVERTISING - 2.0%
Interpublic Group of Companies, Inc. 1,400 $ 53,550
Lamar Advertising Co. (a) 1,300 60,369
-----------------
113,919
-----------------
AEROSPACE & DEFENSE - 1.3%
Northrop Grumman Corp. 1,000 77,813
-----------------
AIRLINES - 0.6%
Delta Air Lines, Inc. 650 32,175
-----------------
APPAREL STORES - 0.6%
Abercrombie & Fitch Co. - Class A (a) 1,400 32,462
-----------------
AUTOS & AUTO PARTS - 1.6%
Ford Motor Co. 656 15,856
General Motors Corp. 225 16,242
Lear Corp. (a) 2,775 59,836
-----------------
91,934
-----------------
BANKS - 5.3%
Bank of America Corp. 1,250 66,953
Chase Manhattan Corp. 675 37,716
Comerica, Inc. 575 32,380
FleetBoston Financial Corp. 625 26,680
Hibernia Corp. - Class A 1,920 24,120
North Fork Bancorp, Inc. 1,460 26,098
PNC Financial Services Group, Inc. 500 29,469
UnionBanCal Corp. 2,530 62,776
-----------------
306,192
-----------------
BEVERAGES - 1.5%
Anheuser-Busch Companies, Inc. 175 13,792
Canandaigua Brands, Inc. - Class A (a) 400 21,550
PepsiCo, Inc. 1,200 51,150
-----------------
86,492
-----------------
BROADCASTING - 3.0%
Infinity Broadcasting Corp - Class A (a) 3,025 114,572
USA Networks, Inc. 2,375 57,148
-----------------
171,720
-----------------
CABLE TV & SATELLITE SYSTEMS - 1.8%
Charter Communications, Inc. - Class A (a) 5,025 76,945
Cox Communications, Inc. - Class A (a) 800 28,450
-----------------
105,395
-----------------
CHEMICALS - 0.9%
Praxair, Inc. 1,150 50,888
-----------------
STONERIDGE EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
COMPUTER HARDWARE - 10.9%
Apple Computer, Inc. 3,525 $ 214,805
Cisco Systems, Inc. (a) 2,000 137,250
Compaq Computer Corp. 1,800 61,312
EMC Corp. (a) 2,165 212,170
F5 Networks, Inc. (a) 175 10,150
-----------------
635,687
-----------------
DEPARTMENT STORES - 0.5%
Federated Department Stores, Inc. (a) 710 19,614
Saks, Inc. (a) 1,200 12,000
-----------------
31,614
-----------------
DISCOUNT STORES - 0.2%
Target Corp. 350 8,138
-----------------
DRUGS & PHARMACEUTICALS - 6.0%
American Home Products Corp. 800 43,350
Merck & Co., Inc. 350 24,456
Mylan Laboratories, Inc. 1,650 43,828
Pfizer, Inc. 281 12,153
Pharmacia Corp. 1,510 88,429
Schering-Plough Corp. 250 10,031
Watson Pharmaceuticals, Inc. (a) 2,045 126,151
-----------------
348,398
-----------------
ELECTRIC UTILITIES - 0.8%
Dominion Resources, Inc. 500 26,500
Duke Energy Corp. 250 18,703
-----------------
45,203
-----------------
ELECTRONIC INSTRUMENTS & CONTROLS - 1.4%
Celestica, Inc. (a) 1,050 82,031
-----------------
ENERGY SERVICES - 0.7%
R & B Falcon Corp. (a) 1,350 38,475
-----------------
FINANCIAL SERVICES - 4.5%
Associates First Capital Corp. 950 26,719
AXA Financial, Inc. 350 18,113
Citigroup, Inc. 2,267 132,317
Federal National Mortgage Assoc. 475 25,531
Household International, Inc. 550 26,400
Providian Financial Corp. 275 31,608
-----------------
260,688
-----------------
GAMBLING & CASINOS - 0.3%
Harrah's Entertainment, Inc. (a) 600 17,025
-----------------
STONERIDGE EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
GROCERY STORES - 1.5%
Kroger Co. (a) 3,275 $ 74,302
Safeway, Inc. (a) 250 12,328
-----------------
86,630
-----------------
HEALTHCARE FACILITIES - 0.8%
HEALTHSOUTH Corp. (a) 3,655 22,387
Tenet Healthcare Corp. 850 26,350
-----------------
48,737
-----------------
INDEPENDENT POWER PRODUCERS - 3.0%
AES Corp. (a) 2,700 172,125
-----------------
INSURANCE - 3.9%
Allstate Corp. 950 27,609
American International Group, Inc. 850 75,756
Hartford Financial Services Group, Inc. 725 48,303
Nationwide Financial Services, Inc. - Class A 1,925 76,759
-----------------
228,427
-----------------
INTERNET SERVICES - 4.2%
America Online, Inc. (a) 3,450 202,256
At Home Corp. - Class A (a) 1,000 14,563
Genuity, Inc.(a) 2,250 19,406
Walt Disney Internet Group (a) 600 9,825
-----------------
246,050
-----------------
INVESTMENT SERVICES - 0.7%
Knight Trading Group, Inc. (a) 1,375 43,141
-----------------
LODGING - 0.1%
Cendant Corp. (a) 550 7,253
-----------------
LUMBER & WOOD PRODUCTS - 0.3%
Georgia-Pacific Group 600 16,050
-----------------
MANUFACTURER - DIVERSIFIED - 6.3%
General Electric Co. 4,025 236,217
Honeywell International, Inc. 400 15,425
Tyco International Ltd. 2,000 114,000
-----------------
365,642
-----------------
MEDIA - DIVERSIFIED - 0.3%
Viacom, Inc. - Class A (a) 250 16,938
-----------------
MEDICAL EQUIPMENT & SUPPLIES - 0.2%
Sybron International Corp. (a) 650 14,787
-----------------
STONERIDGE EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
METALS & MINING - 0.5%
Alcan Aluminium Ltd. 825 $ 27,070
-----------------
MISCELLANEOUS COMMUNICATIONS SERVICES - 0.4%
Critical Path, Inc. (a) 225 17,381
TyCom Ltd. (a) 100 4,162
-----------------
21,543
-----------------
OIL & GAS - 4.1%
Apache Corp. 375 23,625
Exxon Mobil Corp. 1,350 110,194
Kerr-McGee Corp. 925 58,448
USX-Marathon Group 1,750 48,016
-----------------
240,283
-----------------
OIL REFINING - 0.4%
Sunoco, Inc. 825 22,430
-----------------
PAPER & PAPER PRODUCTS - 0.4%
Smurfit-Stone Container Corp. (a) 1,650 21,656
-----------------
RESTAURANTS - 0.3%
TRICON Global Restaurants, Inc. (a) 650 18,931
-----------------
SEMICONDUCTORS - 12.3%
Altera Corp. (a) 1,200 77,775
Applied Materials, Inc. (a) 725 62,577
Integrated Device Technology, Inc. (a) 1,575 138,206
KLA-Tencor Corp. (a) 1,600 105,000
LSI Logic Corp. (a) 925 33,242
MIPS Technologies, Inc. - Class A (a) 725 41,506
Texas Instruments, Inc. 2,080 139,230
TriQuint Semiconductor, Inc. (a) 2,155 119,198
-----------------
716,734
-----------------
SPECIALTY CONTRACTING SERVICES - 0.4%
Quanta Services, Inc. (a) 500 23,375
-----------------
TELECOMMUNICATION EQUIPMENT - 2.7%
CIENA Corp. (a) 625 138,555
QUALCOMM, Inc. (a) 350 20,956
-----------------
159,511
-----------------
STONERIDGE EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
COMMON STOCKS - CONTINUED SHARES VALUE
TELECOMMUNICATION SERVICES - 7.8%
AT&T Corp. 716 $ 22,566
Global Crossing Ltd. (a) 425 12,777
NEXTLINK Communications, Inc. - Class A (a) 3,200 112,200
Time Warner Telecom, Inc. - Class A. 450 29,223
Verizon Communications 823 35,903
WorldCom, Inc. (a) 6,675 243,637
-----------------
456,306
-----------------
TOBACCO - 0.9%
Philip Morris Companies, Inc. 1,875 55,547
-----------------
TOTAL COMMON STOCKS (COST $4,758,962) 5,545,415
-----------------
PRINCIPAL
AMOUNT VALUE
MONEY MARKET SECURITIES - 5.5%
Firstar Treasury Fund, 5.53% (b) (Cost $320,725) 320,725 320,725
-----------------
TOTAL INVESTMENTS - 100.9% (COST $5,079,687) 5,866,140
-----------------
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.9)% (53,191)
-----------------
TOTAL NET ASSETS - 100.0% $ 5,812,949
=================
(a) Non-Income Producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STONERIDGE EQUITY FUND AUGUST 31, 2000
STATEMENT OF ASSETS & LIABILITIES
ASSETS
Investment in securities (cost $5,079,687) $ 5,866,140
Dividends receivable 4,646
Interest receivable 1,135
Receivable for securities sold 83,708
Receivable from advisor 7,285
-------------------
TOTAL ASSETS 5,962,914
LIABILITIES
Other payables and accrued expenses $ 11,309
Payable to custodian bank 56,516
Payable for securities purchased 82,140
------------------
TOTAL LIABILITIES 149,965
-------------------
NET ASSETS $ 5,812,949
===================
Net Assets consist of:
Paid in capital $ 4,161,078
Accumulated undistributed net investment income 6,436
Accumulated undistributed net realized gain on investments 858,982
Net unrealized appreciation on investments 786,453
-------------------
NET ASSETS for 424,900 shares $ 5,812,949
===================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($5,812,949 / 424,900) $ 13.68
===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE EQUITY FUND
STATEMENT OF OPERATIONS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C> <C>
INVESTMENT INCOME
Dividend income $ 37,550
Interest income 14,682
---------------
TOTAL INCOME 52,232
EXPENSES
Investment advisory fee $ 27,017
Administration fees 27,500
Transfer agent fees 18,112
Pricing & bookkeeping fees 11,700
Custodian fees 8,352
Legal fees 7,637
Audit fees 4,938
Registration fees 2,033
Trustees' fees 1,332
Shareholder reports 512
Insurance 360
Taxes 20
Miscellaneous fees 335
------------------
Total expenses before reimbursement 109,848
Expenses waived and reimbursed by the advisor (60,135)
Expenses waived and reimbursed by the administrator (9,187)
------------------
Total operating expenses 40,526
---------------
NET INVESTMENT INCOME 11,706
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 858,982
Change in net unrealized appreciation (depreciation)
on investment securities 786,453
------------------
Net gain on investment securities 1,645,435
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,657,141
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income $ 11,706
Net realized gain on investment securities 858,982
Change in net unrealized appreciation (depreciation) 786,453
---------------
Net increase in net assets resulting from operations 1,657,141
---------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,270)
From net realized gain 0
---------------
Total distributions (5,270)
---------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 10,585,135
Shares issued in reinvestment 5,270
Shares redeemed (6,429,327)
---------------
Net increase in net assets resulting
from share transactions 4,161,078
---------------
TOTAL INCREASE IN NET ASSETS 5,812,949
---------------
Net Assets
Beginning of period 0
---------------
End of period [including accumulated undistributed net
investment income of $6,436] $ 5,812,949
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE EQUITY FUND
FINANCIAL HIGHLIGHTS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<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 3.66
--------------
Total from investment operations 3.69
--------------
Less Distributions
From net investment income (0.01)
From net realized gain 0.00
--------------
Total distributions (0.01)
--------------
Net asset value, end of period $ 13.68
==============
TOTAL RETURN 36.93% (a)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $5,813
Ratio of expenses to average net assets 0.90% (b)
Ratio of expenses to average net assets
before waivers and reimbursements 2.44% (b)
Ratio of net investment income to
average net assets 0.26% (b)
Ratio of net investment income to average
net assets before waivers and reimbursements (1.28)%(b)
Portfolio turnover rate 139.22% (b)
(a) For a period of less than a full year, the total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
<S> <C> <C>
COMMON STOCKS - 92.2% SHARES VALUE
ADVERTISING - 1.9%
@Plan, Inc. (a) 16,833 $ 102,050
Snyder Communications, Inc. (a) 9,500 260,063
-----------------
362,113
-----------------
APPAREL STORES - 0.9%
Abercrombie & Fitch Co. - Class A (a) 7,425 172,167
-----------------
BANKS - 1.9%
GBC Bancorp 4,575 173,278
Hibernia Corp. - Class A 14,600 183,412
-----------------
356,690
-----------------
BIOTECHNOLOGY - RESEARCH - 9.8%
Applied Molecular Evolution, Inc. (a) 6,200 199,563
Biomatrix, Inc. (a) 3,725 79,156
Cell Genesys, Inc. (a) 4,420 136,191
Diversa Corp. (a) 26,965 768,502
Dyax Corp. (a) 10,800 378,000
Guilford Pharmaceuticals, Inc. (a) 3,850 102,987
Large Scale Biology Corp. (a) 1,955 60,422
NeoPharm, Inc. (a) 1,985 47,888
Telik, Inc. (a) 8,650 88,122
-----------------
1,860,831
-----------------
BUSINESS SERVICES - 1.1%
Digitas, Inc. (a) 6,200 85,250
IXL Enterprises, Inc. (a) 12,900 123,356
-----------------
208,606
-----------------
COMPUTER & SOFTWARE STORES - 5.1%
Electronics Boutique Holdings Corp. (a) 42,880 964,800
-----------------
COMPUTER HARDWARE - 5.7%
JNI Corp. (a) 9,460 635,003
F5 Networks, Inc. (a) 7,950 461,100
-----------------
1,096,103
-----------------
COMPUTER SERVICES & SOFTWARE - 11.3%
Actuate Corp. (a) 37,150 963,578
Allaire Corp. (a) 4,500 152,719
AppNet, Inc. (a) 5,450 269,434
Bluestone Software, Inc. (a) 9,750 227,906
Digimarc Corp. (a) 3,625 54,375
Extensity, Inc. (a) 5,375 120,937
Netsolve, Inc. (a) 7,625 67,672
Pivotal Corp. (a) 6,675 300,375
-----------------
2,156,996
-----------------
CONSUMER ELECTRONIC & APPLIANCE RETAILING - 4.7%
REX Stores Corp. (a) 41,725 745,834
Sound Advice, Inc. (a) 18,450 152,213
-----------------
898,047
-----------------
STONERIDGE SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
CREDIT & OTHER FINANCE - 0.9%
Allied Capital Corp. 8,900 $ 180,225
-----------------
DRUGS & PHARMACEUTICALS - 3.1%
Esperion Therapeutics, Inc. (a) 4,290 68,908
Inspire Pharmaceuticals, Inc. (a) 6,375 111,563
ISTA Pharmaceuticals, Inc. (a) 16,900 222,869
Matrix Pharmaceuticals, Inc. (a) 6,650 97,256
Pharmaceutical Resources, Inc. (a) 15,275 97,378
-----------------
597,974
-----------------
ELECTRONIC INSTRUMENTS & CONTROLS - 3.2%
Pemstar, Inc. (a) 32,725 607,458
-----------------
ENERGY SERVICES - 6.4%
Horizon Offshore, Inc. (a) 5,700 106,163
Nabors Industries, Inc. (a) 2,975 141,498
National-Oilwell, Inc. (a) 5,627 195,187
Newpark Resources, Inc. (a) 5,175 53,044
Petroleum Geo-Services (a) (c) 8,350 157,606
Smedvig A S A - Class B (c) 10,330 182,066
Stolt Offshore S.A. (a) (c) 13,225 183,497
Superior Energy Services, Inc. (a) 13,400 147,400
Tidewater, Inc. 1,075 43,403
-----------------
1,209,864
-----------------
ENGINEERING & CONSTRUCTION - 0.6%
Shaw Group, Inc. (a) 2,200 122,512
-----------------
ENTERTAINMENT - 0.5%
Mediabay, Inc. (a) 4,500 10,266
VDI Multimedia (a) 21,950 90,544
-----------------
100,810
-----------------
FOODS - 2.0%
Canandaigua Brands, Inc. - Class A (a) 2,475 133,341
Fresh Del Monte Produce, Inc. (a) 30,375 178,453
Scheid Vineyards, Inc. - Class A (a) 8,350 27,138
Northland Cranberries, Inc. 19,875 32,297
-----------------
371,229
-----------------
GAMBLING RESORTS & CASINOS - 1.9%
Sun International Hotels Ltd. (a) 16,335 355,286
-----------------
INTERNET SERVICES - 1.4%
Backweb Technologies Ltd. (a) (c) 7,750 142,406
Launch Media, Inc. (a) 2,250 17,016
N2H2, Inc. (a) 4,815 14,746
Voyager.Net, Inc. (a) 13,800 95,738
-----------------
269,906
-----------------
STONERIDGE SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000 - CONTINUED
COMMON STOCKS - CONTINUED SHARES VALUE
MEDICAL EQUIPMENT & SUPPLIES - 2.0%
Computer Motion, Inc. (a) 5,200 $ 48,100
Tripath Imaging, Inc. (a) 41,250 340,312
-----------------
388,412
-----------------
MEDICAL LABS & RESEARCH - 1.3%
Regeneration Technologies, Inc. (a) 17,325 250,130
-----------------
OIL & GAS - 1.0%
Forest Oil Corp. (a) 12,200 186,813
-----------------
RESTAURANTS - 1.5%
California Pizza Kitchen, Inc. (a) 3,500 87,281
Landry's Seafood Restaurants, Inc. 20,825 163,997
Quality Dining, Inc. (a) 16,010 41,026
-----------------
292,304
-----------------
SEMICONDUCTORS - 12.1%
Applied Science & Technology, Inc. (a) 6,450 99,572
Dialog Semiconductor Plc. (a) (c) 4,550 222,950
DSP Group, Inc. (a) 3,800 175,750
MIPS Technologies, Inc. - Class A (a) 7,725 442,256
Netsilicon, Inc. (a) 9,135 236,368
Rudolph Technologies, Inc. (a) 21,425 857,000
Silicon Storage Technology, Inc. (a) 8,150 267,422
-----------------
2,301,318
-----------------
STEEL PRODUCTION - 1.0%
Maverick Tube Corp. (a) 6,600 185,213
-----------------
TELECOMMUNICATIONS EQUIPMENT - 1.5%
Accord Networks Ltd. (a) 18,125 183,516
Giganet Ltd. (a) 3,225 94,079
-----------------
277,595
-----------------
TELECOMMUNICATIONS SERVICES - 4.7%
Adelphia Business Solutions, Inc. - Class A (a) 2,750 41,078
Allied Riser Communications, Inc. (a) 42,865 348,278
Intermedia Communications, Inc. (a) 3,375 70,031
Net2000 Communications, Inc. (a) 38,830 339,763
US LEC Corp. - Class A (a) 5,700 59,850
Viatel, Inc. (a) 2,325 31,823
-----------------
890,823
-----------------
WIRELESS COMMUNICATIONS SERVICES - 4.7%
AirGate PCS, Inc. (a) 9,600 653,400
Dobson Communications Corp. (a) 10,900 235,031
-----------------
888,431
-----------------
TOTAL COMMON STOCKS (COST $17,245,671) 17,552,656
-----------------
STONERIDGE SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000 - CONTINUED
PRINCIPAL
AMOUNT VALUE
MONEY MARKET SECURITIES - 5.6%
Firstar Treasury Fund, 5.53% (b) (Cost $1,072,379) 1,072,379 $ 1,072,379
-----------------
TOTAL INVESTMENTS - 97.8% (COST $18,318,050) 18,625,035
-----------------
OTHER ASSETS LESS LIABILITIES - 2.2% 421,902
-----------------
TOTAL NET ASSETS - 100.0% $ 19,046,937
=================
(a) Non-Income Producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
(c) American Depository Receipt
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STONERIDGE SMALL CAP EQUITY FUND AUGUST 31, 2000
STATEMENT OF ASSETS & LIABILITIES
ASSETS
Investment in securities (cost $18,318,050) $ 18,625,035
Cash 33,761
Interest receivable 3,298
Receivable for securities sold 813,181
-------------------
TOTAL ASSETS 19,475,275
LIABILITIES
Accrued investment advisory fee payable $ 1,336
Other payables and accrued expenses 14,339
Payable for securities purchased 412,663
-----------------
TOTAL LIABILITIES 428,338
-------------------
NET ASSETS $ 19,046,937
===================
Net Assets consist of:
Paid in capital $ 13,112,367
Accumulated undistributed net realized gain on investments 5,627,585
Net unrealized appreciation on investments 306,985
-------------------
NET ASSETS, for 1,119,905 shares $ 19,046,937
===================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($19,046,937 / 1,119,905) $ 17.01
===================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE SMALL CAP EQUITY FUND
STATEMENT OF OPERATIONS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C> <C>
INVESTMENT INCOME
Interest income $ 49,699
Dividend income 17,121
---------------
TOTAL INCOME 66,820
EXPENSES
Investment advisory fee $ 122,345
Administration fees 27,500
Transfer agent fees 18,057
Pricing & bookkeeping fees 16,500
Custodian fees 14,510
Legal fees 7,637
Audit fees 5,938
Registration fees 2,284
Trustees' fees 1,332
Insurance 503
Shareholder Reports 572
Miscellaneous fees 335
------------------
Total expenses before reimbursement 217,513
Expenses waived and reimbursed by the advisor (55,415)
Expenses waived by the administrator (9,167)
------------------
Total operating expenses 152,931
---------------
NET INVESTMENT LOSS (86,111)
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 5,846,273
Change in net unrealized appreciation
on investment securities 306,985
------------------
Net gain on investment securities 6,153,258
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,067,147
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE SMALL CAP EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment loss $ (86,111)
Net realized gain on investment securities 5,846,273
Change in net unrealized appreciation (depreciation) 306,985
------------------
Net increase in net assets resulting from operations 6,067,147
------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (10,151)
From net realized gain (122,426)
------------------
Total distributions (132,577)
------------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 14,051,151
Shares issued in reinvestment 131,551
Shares redeemed (1,070,335)
------------------
Net increase in net assets resulting
from share transactions 13,112,367
------------------
TOTAL INCREASE IN NET ASSETS 19,046,937
------------------
Net Assets
Beginning of period 0
------------------
End of period [including accumulated undistributed $ 19,046,937
net investment income of $0] ==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE SMALL CAP EQUITY FUND
FINANCIAL HIGHLIGHTS FOR THE PERIOD OCTOBER 1, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income (loss) (0.09)
Net realized and unrealized gain 7.24
--------------
Total from investment operations 7.15
--------------
Less Distributions
From net investment income (0.01)
From net realized gain (0.13)
--------------
Total Distributions (0.14)
--------------
Net asset value, end of period $ 17.01
==============
TOTAL RETURN 71.94% (a)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $19,047
Ratio of expenses to average net assets 1.25% (b)
Ratio of expenses to average net assets
before waivers and reimbursements 1.78% (b)
Ratio of net investment income to
average net assets (0.70)%(b)
Ratio of net investment income to average
net assets before waivers and reimbursements (1.23)%(b)
Portfolio turnover rate 253.91% (b)
(a) For a period of less than a full year, the total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STONERIDGE BOND FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000
PRINCIPAL
AMOUNT VALUE
ASSET BACKED OBLIGATIONS - 4.7%
Capital One Master Trust, 1998-4 CL A, 5.43%, 1/15/2007 225,000 $ 215,261
EQCC Home Equity Loan Trust, 1999-1 CL A-2F,
5.765%, 6/20/2015 225,000 221,336
Heller Equipment Asset Receivables, 1999-2 CL A-3,
6.65%, 3/14/2004 225,000 223,831
MBNA Master Credit Card II, 1999-I CL A,
6.40%, 1/18/2005 228,000 226,330
-----------------
TOTAL ASSET BACKED OBLIGATIONS ($891,175) 886,758
-----------------
CORPORATE BONDS - 45.0%
Allstate Corp., 7.20%, 12/1/2009 170,000 166,160
Anheuser-Busch Companies, Inc., 6.75%, 8/1/2003 340,000 340,163
Chevron Corp., 6.625%, 10/1/2004 300,000 297,763
Diageo Capital PLC, 7.25%, 11/1/2009 300,000 298,832
Disney (Walt) Co., 6.375%, 3/30/2001 250,000 249,184
Duke Capital Corp., 7.50%, 10/1/2009 300,000 299,169
FPL Group Capital, Inc., 7.375%, 6/1/2009 365,000 358,330
FleetBoston Financial Corp., 7.375%, 12/1/2009 300,000 297,066
Ford Motor Credit Corp., 6.25%, 11/8/2000 150,000 149,827
Ford Motor Credit Corp., 7.875%, 6/15/2010 400,000 402,066
GATX Capital Corp., 7.75%, 12/1/2006 250,000 242,754
General Electric Capital Corp., 7.50%, 6/5/2003 425,000 431,117
General Motors Acceptance Corp., 7.75%, 1/19/2010 375,000 378,908
Goldman Sachs Group, Inc., 7.50%, 1/28/2005 325,000 327,208
Hartford Life, Inc., 7.10%, 6/15/2007 140,000 137,111
Hertz Corp., 7.00%, 4/15/2001 250,000 249,451
Honeywell, Inc., 7.50%, 3/1/2010 290,000 294,430
Lehman Brothers Holdings, Inc., 7.875%, 11/1/2009 450,000 451,135
Morgan Stanley Dean Witter & Co., 5.625%, 1/20/2004 200,000 191,265
Pennsylvania Electric Co., Series A, 5.75%, 4/1/2004 400,000 379,668
Procter & Gamble Co., 6.60%, 12/15/2004 450,000 446,049
Sprint Capital Corp., 6.375%, 5/1/2009 250,000 228,048
Target Corp., 7.50%, 2/15/2005 300,000 305,120
Tele Communications, Inc., 7.25%, 8/1/2005 300,000 299,969
Textron, Inc., 6.375%, 7/15/2004 450,000 433,862
Travelers Property Casualty Corp., 6.75%, 4/15/2001 250,000 249,628
WorldCom, Inc., 6.125%, 8/16/2001 250,000 247,798
WorldCom, Inc., 6.40%, 8/15/2005 350,000 337,022
-----------------
TOTAL CORPORATE BONDS ($8,483,974) 8,489,103
-----------------
STONERIDGE BOND FUND
SCHEDULE OF INVESTMENTS - AUGUST 31, 2000 - CONTINUED
PRINCIPAL
AMOUNT VALUE
U.S. TREASURY & AGENCY OBLIGATIONS - 39.1%
FNMA, 6.52%, 3/16/2001 700,000 $ 699,203
FNMA, 4.75%, 11/14/2003 675,000 637,929
FNMA, 7.125%, 2/15/2005 300,000 304,150
FNMA, Pool #501301, 6.50%, 6/1/2029 198,246 189,355
FNMA, Pool #505221, 7.00%, 8/1/2029 281,648 274,694
FNMA, Pool #323995, 6.00%, 10/1/2029 273,559 254,281
FNMA, Pool #528981, 7.50%, 1/1/2030 294,429 292,542
FNMA, Pool #534058, 6.50%, 3/1/2030 337,855 322,703
FNMA, Pool #537148, 8.00%, 4/1/2030 297,316 300,149
GNMA, Pool #512867, 6.50%, 6/15/2029 332,445 319,254
GNMA, Pool #468376, 7.00%, 9/15/2029 346,970 340,825
GNMA, Pool #466174, 7.50%, 10/15/2029 342,171 342,257
U.S. Treasury Note, 6.625%, 7/31/2001 975,000 977,743
U.S. Treasury Note, 7.50%, 2/15/2005 590,000 623,003
U.S. Treasury Note, 7.00%, 7/15/2006 325,000 340,641
U.S. Treasury Note, 5.625%, 5/15/2008 1,175,000 1,152,234
-----------------
TOTAL U.S. TREASURY & AGENCY OBLIGATIONS ($7,312,060) 7,370,963
-----------------
PRINCIPAL
AMOUNT VALUE
MONEY MARKET SECURITIES - 9.8%
Firstar Treasury Fund, 5.53% (b) (Cost $1,841,908) 1,841,908 1,841,908
-----------------
TOTAL INVESTMENTS - 98.6% (COST $18,529,117) 18,588,732
-----------------
OTHER ASSETS LESS LIABILITIES - 1.4% 263,714
-----------------
TOTAL NET ASSETS - 100.0% $ 18,852,446
=================
(a) Non-Income Producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STONERIDGE BOND FUND AUGUST 31, 2000
STATEMENT OF ASSETS & LIABILITIES
ASSETS
Investment in securities (cost $18,529,117) $ 18,588,732
Cash 29,326
Interest receivable 241,838
Receivable from advisor 5,648
------------------
TOTAL ASSETS 18,865,544
LIABILITIES
Other payables and accrued expenses $ 13,098
-----------------
TOTAL LIABILITIES 13,098
------------------
NET ASSETS $ 18,852,446
==================
Net Assets consist of:
Paid in capital $ 18,906,334
Accumulated undistributed net investment income 1,138
Accumulated net realized loss on investments (114,641)
Net unrealized appreciation on investments 59,615
------------------
NET ASSETS, for 1,889,305 shares $ 18,852,446
==================
NET ASSET VALUE
Net Assets
Offering price and redemption price per share ($18,852,446 / 1,889,305) $ 9.98
==================
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
STONERIDGE BOND FUND
STATEMENT OF OPERATIONS FOR THE PERIOD OCTOBER 13, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
INVESTMENT INCOME
Interest income $ 1,139,568
---------------
TOTAL INCOME 1,139,568
EXPENSES
Investment advisory fee $ 69,831
Administration fees 27,500
Pricing & bookkeeping fees 19,944
Transfer agent fees 17,362
Custodian fees 7,933
Legal fees 7,637
Audit fees 5,938
Taxes 2,235
Trustees' fees 1,832
Registration fees 1,500
Insurance 647
Shareholder reports 512
Miscellaneous fees 335
------------------
Total expenses before reimbursement 163,206
Expenses waived and reimbursed by the advisor (38,329)
Expenses waived and reimbursed by the administrator (11,402)
------------------
Total operating expenses 113,475
---------------
NET INVESTMENT INCOME 1,026,093
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized loss on investment securities (112,759)
Change in net unrealized appreciation
on investment securities 59,615
------------------
Net loss on investment securities (53,144)
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 972,949
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIOD OCTOBER 13, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income $ 1,026,093
Net realized loss on investment securities (112,759)
Change in net unrealized appreciation 59,615
------------------
Net increase in net assets resulting from operations 972,949
------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (1,024,955)
From net realized gain (1,882)
------------------
Total distributions (1,026,837)
------------------
SHARE TRANSACTIONS
Net proceeds from sale of shares 44,860,542
Shares issued in reinvestment 1,026,837
Shares redeemed (26,981,045)
------------------
Net increase in net assets resulting
from share transactions 18,906,334
------------------
TOTAL INCREASE IN NET ASSETS 18,852,446
------------------
Net Assets
Beginning of period 0
------------------
End of period [including accumulated undistributed net
investment income of $1,138] $ 18,852,446
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STONERIDGE BOND FUND
FINANCIAL HIGHLIGHTS FOR THE PERIOD OCTOBER 13, 1999
(COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 2000
<S> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.52
Net realized and unrealized loss (0.02)
--------------
Total from investment operations 0.50
--------------
Less distributions
From net investment income (0.52)
From net realized gain 0.00
--------------
Total distributions (0.52)
--------------
Net asset value, end of period $ 9.98
==============
TOTAL RETURN 5.21% (a)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $18,852
Ratio of expenses to average net assets 0.65% (b)
Ratio of expenses to average net assets
before waivers and reimbursements 0.93% (b)
Ratio of net investment income to
average net assets 5.88% (b)
Ratio of net investment income to average
net assets before waivers and reimbursements 5.59% (b)
Portfolio turnover rate 156.53% (b)
(a) For a period of less than a full year, the total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000
NOTE 1. ORGANIZATION
The StoneRidge Equity Fund (the "Equity Fund"), StoneRidge Small Cap Equity Fund
(the "Small Cap Equity Fund"), and StoneRidge Bond Fund (the "Bond Fund"), were
organized as diversified series of the AmeriPrime Advisors Trust (the "Trust")
on August 3, 1999 and commenced operations on October 1, 1999 for the Equity
Fund and Small Cap Equity Fund and October 13, 1999 for the Bond Fund. The Trust
is an open-end management investment company established under the laws of Ohio
by an Agreement and Declaration of Trust dated August 3, 1999 (the "Trust
Agreement"). The Equity Fund's investment objective is to provide capital
appreciation over the long term. The Small Cap Equity Fund's investment
objective is to provide capital growth over the long term. The Bond Fund's
investment objective is to provide income consistent with preservation of
capital. The Trust Agreement permits the Board of Trustees to issue an unlimited
number of shares of beneficial interest of separate series without par value.
Each Fund is one of a series of funds currently authorized by the Board of
Trustees (the "Board").
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
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 Fund adviser'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
Fund's adviser determines the last bid price does not accurately reflect the
current value or when restricted securities are being valued, such securities
are valued as determined in good faith by the Fund's adviser, 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 Fund's
adviser 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 Fund's
adviser, subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
FEDERAL INCOME TAXES - Each Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, each 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. For the period October 1, 1999 (commencement of
operations) through August 31, 2000, the Equity Fund incurred an excise tax in
the amount of $20. For the period October 13, 1999 (commencement of operations)
through August 31, 2000, the Bond Fund incurred an excise tax in the amount of
$2,235. The administrator reimbursed the Equity Fund and the Bond Fund for the
amount of the excise taxes.
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DIVIDENDS AND DISTRIBUTIONS - Each 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 - Each Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities. Generally accepted accounting principles
require that permanent financial reporting tax differences relating to
shareholder distributions be reclassified to net realized gains for the Small
Cap Equity Fund.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser to the Funds is StoneRidge Investment Partners, L.L.C., 7
Great Valley Parkway, Suite 290, Malvern, PA 19355, (the "Adviser). Joseph E.
Stocke, CFA, Philip H. Brown II, CFA, Lester Rich, CFA and Daniel H. Cook are
the controlling members of the Adviser.
Under the terms of the management agreement (the "Agreement"), the Adviser
manages each Fund's investments subject to approval of the Board of Trustees. As
compensation for its management services, each Fund is obligated to pay the
Adviser a fee (based on average daily net assets) computed and accrued daily and
paid monthly at the following annual rates: StoneRidge Equity Fund, 0.60%;
StoneRidge Small Cap Equity Fund, 1.00%; StoneRidge Bond Fund, 0.40%. For the
period October 1, 1999 (commencement of operations) through August 31, 2000, the
Adviser received a fee of $27,017 from the Equity Fund and $122,345 from the
Small Cap Equity Fund. For the period October 13, 1999 (commencement of
operations) through August 31, 2000, the Adviser received a fee of $69,831 from
the Bond Fund.
The Adviser has contractually agreed to waive fees and/or reimburse expenses
through December 31, 2000 to maintain each Fund's total operating expenses as
follows: Equity Fund, 0.90%; Small Cap Equity Fund, 1.25%; Bond Fund, 0.65%. For
the period October 1, 1999 (commencement of operations) through August 31, 2000,
the Adviser waived and/or reimbursed expenses of $60,135 for the Equity Fund and
$55,415 for the Small Cap Equity Fund. For the period October 13, 1999
(commencement of operations) through August 31, 2000, the Adviser reimbursed
expenses of $38,329 for the Bond Fund. There is no assurance that such
reimbursement will continue in the future.
Each Fund retains AmeriPrime Financial Services, Inc. (the "Administrator"), a
wholly owned subsidiary of Unified Financial Services, Inc., to manage each
Fund's business affairs and to provide each Fund with administrative services,
including all regulatory reporting and necessary office equipment and personnel.
The Administrator receives a monthly fee from the Fund equal to an annual
average rate of 0.10% of each Fund's average daily net assets up to $50 million
dollars, 0.075% of each Fund's average daily net assets from $50 million to $100
million and 0.050% of each Fund's average daily net assets over $100 million
(subject to a $2,500 minimum monthly fee). For the period October 1, 1999
(commencement of operations) through August 31, 2000, the Administrator received
fees of $27,500 for administrative services provided to the Equity Fund and
$27,500 for administrative services provided to the Small Cap Equity Fund. For
the period October 13, 1999 through August 31, 2000, the Administrator received
fees of
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
$27,500 for administrative services provided to the Bond Fund. The Administrator
has voluntarily agreed to waive a portion of its fees for each Fund. For the
period October 1, 1999 (commencement of operations) through August 31, 2000, the
Administrator waived fees and reimbursed expenses of $9,187 for the Equity Fund.
For the period October 1, 1999 (commencement of operations) through August 31,
2000, the Administrator waived fees of $9,167 for the Small Cap Equity Fund. For
the period October 13, 1999 (commencement of operations) through August 31,
2000, the Administrator waived fees and reimbursed expenses of $11,402 for the
Bond Fund. There is no assurance that such waiver and reimbursement will
continue in the future.
Each Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned
subsidiary of Unified Financial Services, Inc., to act as each Fund's transfer
agent and to provide each Fund with fund accounting services. For its services
as transfer agent, Unified receives a monthly fee from the Fund of $1.20 per
shareholder (subject to a minimum monthly fee of $750). For the period October
1, 1999 (commencement of operations) through August 31, 2000, Unified received
fees of $18,112 for transfer agent services provided to the Equity Fund and
$18,057 for transfer agent services provided to the Small Cap Equity Fund. For
the period October 13, 1999 (commencement of operations) through August 31,
2000, Unified received fees of $17,362 for transfer agent services provided to
the Bond Fund. For its services as fund accountant, Unified receives an annual
fee from each Fund equal to 0.0275% of each Fund's assets up to $100 million
(subject to various monthly minimum fees, the maximum being $2,100 per month for
assets of $20 million to $100 million). For the period October 1, 1999
(commencement of operations) through August 31, 2000, Unified received fees of
$11,700 for fund accounting services provided to the Equity Fund and $16,500 for
fund accounting services provided to the Small Cap Equity Fund. For the period
October 13, 1999 (commencement of operations) through August 31, 2000, Unified
received fees of $19,944 for fund accounting services provided to the Bond Fund.
Each Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor"), a
wholly owned subsidiary of Unified Financial Services, Inc., to act as the
principal distributor of each Fund's shares. There were no payments made to the
Distributor from October 1, 1999 (commencement of operations) through August 31,
2000 for the Equity Fund and Small Cap Equity Fund. There were no payments made
to the Distributor from October 13, 1999 (commencement of operations) through
August 31, 2000 for the Bond Fund. Certain members of management of the
Administrator and the Distributor are also members of management of the Trust.
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 4. SHARE TRANSACTIONS
EQUITY FUND. As of August 31, 2000, there were an unlimited number of authorized
shares for the Fund. Paid in capital at August 31, 2000 was $4,161,078.
Transactions in shares were as follows:
<TABLE>
<S> <C> <C>
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT
OF OPERATIONS) THROUGH AUGUST 31, 2000
SHARES DOLLARS
Shares sold 945,293 $10,585,135
Shares issued in reinvestment 454 5,270
Shares redeemed (520,847) (6,429,327)
-------- ------------
424,900 $4,161,078
======== ===========
</TABLE>
SMALL CAP EQUITY FUND. As of August 31, 2000, there were an unlimited number of
authorized shares for the Fund. Paid in capital at August 31, 2000 was
$13,112,367.
Transactions in shares were as follows:
<TABLE>
<S> <C> <C>
FOR THE PERIOD OCTOBER 1, 1999 (COMMENCEMENT
OF OPERATIONS) THROUGH AUGUST 31, 2000
SHARES DOLLARS
Shares sold 1,181,347 $14,051,151
Shares issued in reinvestment 9,951 131,551
Shares redeemed (71,393) (1,070,335)
---------- -------------
1,119,905 $13,112,367
========== =============
</TABLE>
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 4. SHARE TRANSACTIONS - CONTINUED
BOND FUND. As of August 31, 2000, there were an unlimited number of authorized
shares for the Fund. Paid in capital at August 31, 2000 was $18,906,334.
Transactions in shares were as follows:
<TABLE>
<S> <C> <C>
FOR THE PERIOD OCTOBER 13, 1999 (COMMENCEMENT
OF OPERATIONS) THROUGH AUGUST 31, 2000
SHARES DOLLARS
Shares sold 4,488,302 $44,860,542
Shares issued in reinvestment 103,469 1,026,837
Shares redeemed (2,702,466) (26,981,045)
----------- -------------
1,889,305 $18,906,334
=========== =============
</TABLE>
NOTE 5. INVESTMENTS
EQUITY FUND. For the period October 1, 1999 (commencement of operations) through
August 31, 2000, purchases and sales of investment securities, other than
short-term investments, aggregated $9,645,839 and $5,745,860, respectively. As
of August 31, 2000, the gross unrealized appreciation for all securities totaled
$1,062,325 and the gross unrealized depreciation for all securities totaled
$275,872 for a net unrealized appreciation of $786,453. The aggregate cost of
securities for federal income tax purposes at August 31, 2000 was $5,079,687.
SMALL CAP EQUITY FUND. For the period October 1, 1999 (commencement of
operations) through August 31, 2000, purchases and sales of investment
securities, other than short-term investments, aggregated $38,774,392 and
$27,366,244, respectively. As of August 31, 2000, the gross unrealized
appreciation for all securities totaled $3,292,691 and the gross unrealized
depreciation for all securities totaled $2,985,706 for a net unrealized
appreciation of $306,985. The aggregate cost of securities for federal income
tax purposes at August 31, 2000 was $18,318,050.
BOND FUND. For the period October 13, 1999 (commencement of operations) through
August 31, 2000, purchases and sales of investment securities, other than
short-term investments, aggregated $ 34,867,403 and $19,672,216, respectively.
As of August 31, 2000, the gross unrealized appreciation for all securities
totaled $110,708 and the gross unrealized depreciation for all securities
totaled $51,093 for a net unrealized appreciation of $59,615. The aggregate cost
of securities for federal income tax purposes at August 31, 2000 was
$18,529,117.
STONERIDGE FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 2000 - CONTINUED
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RELATED PARTY TRANSACTIONS
The Adviser is not a registered broker-dealer of securities and thus does not
receive commissions on trades made on behalf of each 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 August 31, 2000, Sheet
Metals Workers Annuity Fund beneficially owned in aggregate more than 73% of the
Equity Fund. As of August 31, 2000, Saxon & Co. beneficially owned in aggregate
more than 42% of the Small Cap Equity Fund. As of August 31, 2000, Sheet Metal
Workers Annuity Fund beneficially owned in aggregate more than 99% of the Bond
Fund.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
StoneRidge Funds (series of AmeriPrime Advisors Trust)
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the StoneRidge Funds (comprising, respectively,
the StoneRidge Equity Fund, StoneRidge Small Cap Equity Fund, and StoneRidge
Bond Fund), as of August 31, 2000, the related statements of operations, the
statements of changes in net assets, and the financial highlights for each of
the periods indicated. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash held as
of August 31, 2000 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of each
of the respective portfolios constituting the StoneRidge Funds as of August 31,
2000, the results of their operations, the changes in their net assets, and
their financial highlights for each of the periods indicated in conformity with
generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
September 24, 2000
<PAGE>
Dear Fellow Shareholders,
MASTER INVESTOR FUND
The ENHANS Master Investor Fund began its operations on December 30, 1999;
however, it wasn't until April 2000 when the first public money was deposited in
the Fund that the Fund was able to accumulate sufficient capital to effectively
pursue its strategy. Declining global markets and volatile domestic markets
caused the manager to maintain higher money market balances and focus on
protecting capital to minimize risk. While the Fund has declined 23.60% from
December 30, 1999 (inception) through August 31, 2000 (it should be noted that a
majority of the Fund's decline occurred prior to the investment of any public
money), it has appreciated 0.13% in the quarter ending August 31, 2000. During
the same periods the S&P 500 Index appreciated 4.51% and 7.12%, respectively,
and the NASDAQ Composite Index appreciated 4.17% and 23.73%, respectively.
The manager has sought ways to decrease risk and increase returns in flat or
declining market environments. The manager has sought to reduce risk by
minimizing investment into exchange-traded funds that lack sufficient liquidity
for the Fund to easily buy and sell. Furthermore, the manager has identified
covered call option writing as a means for the Fund to generate additional
income. The manager has arranged for the Fund to be able to write covered call
options.
<TABLE>
<S> <C> <C>
Total Return
Since Inception
Comparative Investment Returns Last 3 months (December 30, 1999)
------------------------------ ------------- -------------------
ENHANS Master Investor Fund 0.13% -23.60%
S & P 500 Index 7.12% 4.51%
NASDAQ Composite Index 23.73% 4.17%
ENHANS Master Investor Fund S&P 500 Index NASDAQ Composite Index
--------------------------- ------------- ----------------------
12/30/99 $10,000 $10,000 $10,000
01/31/00 10,030 9,535 9,751
02/29/00 10,190 9,355 11,622
03/31/00 9,560 10,270 11,318
04/30/00 8,050 9,961 9,556
05/31/00 7,630 9,756 8,419
06/30/00 7,890 9,997 9,820
07/31/00 7,340 9,840 9,328
08/31/00 7,640 10,451 10,417
</TABLE>
The chart shows the value of a hypothetical initial investment of
$10,000 in the Fund and the S&P 500 Index and the NASDAQ Composite
Index on December 30, 1999 (the inception of the Fund) and held through
August 31, 2000. The S&P 500 Index and NASDAQ Composite Index are
widely recognized, unmanaged indices of common stock prices.
Performance figures include the change in value of the stocks in the
index and the reinvestment of dividends; they are not annualized. The
index returns do not reflect expenses, which have been deducted from
the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS
NOT PREDICTIVE OF FUTURE RESULTS.
RT 500 FUND
The ENHANS RT 500 Fund also began its operations on December 30, 1999; however,
it wasn't until April 2000 when the first public money was deposited in the Fund
that the Fund accumulated sufficient capital to effectively pursue its strategy.
The absence of any sustained upward or downward market direction caused the
manager to maintain a defensive posture and focus on protecting capital to
minimize risk. The Fund declined 12.00% from December 30, 1999 (inception)
through August 31, 2000 (it should be noted that a majority of the Fund's
decline occurred prior to the investment of any public money); however, it only
declined 0.56% in the quarter ending August 31, 2000. During the same periods
the S&P 500 Index appreciated 4.51% and 7.12%, respectively. During this period,
the Federal Reserve Board increased interest rates to slow domestic economic
growth.
The manager has sought ways to increase returns in flat market environments. The
manager has identified covered call option writing as an alternative available
to the fund and has arranged for the Fund to be able to write covered call
options.
<TABLE>
<S> <C> <C>
Total Return
Since Inception
Comparative Investment Returns Last 3 months (December 30, 1999)
------------------------------ ------------- -------------------
ENHANS RT 500 Fund -0.56% -12.00%
S & P 500 Index 7.12% 4.51%
ENHANS RT 500 Fund S&P 500 Index
------------------ -------------
12/30/99 $10,000 $10,000
01/31/00 10,030 9,535
02/29/00 9,530 9,355
03/31/00 10,160 10,270
04/30/00 9,000 9,961
05/31/00 8,850 9,756
06/30/00 8,900 9,997
07/31/00 8,470 9,840
08/31/00 8,800 10,451
</TABLE>
The chart shows the value of a hypothetical initial investment of
$10,000 in the Fund and the S&P 500 Index on December 30, 1999 (the
inception of the Fund) and held through August 31, 2000. The S&P 500
Index is a widely recognized, unmanaged index of common stock prices.
Performance figures include the change in value of the stocks in the
index and the reinvestment of dividends; they are not annualized. The
index returns do not reflect expenses, which have been deducted from
the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS
NOT PREDICTIVE OF FUTURE RESULTS.
MARKET OUTLOOK
Higher interest rates have historically led to economic slowdown lagging 6 to 9
months. Economic slowdown leads to declining corporate earnings and ultimately a
stabilization or future reduction of interest rates. This period historically
exhibits choppy market conditions as the "tug-of-war" between slowing corporate
earnings is offset by the benefits of higher market valuations caused by lower
interest rates. Historically, this type of environment has ultimately resolved
itself by leading to lower interest rates and higher equities prices.
The manager believes slowing economic growth will lead equity markets through
the completion of the current volatile period and give way to a more favorable
market in 2001. The manager will seek to increase returns through option writing
during these volatile markets.
The rising interest rates of the past 18 months have stifled recent financial
returns; however, history has shown that durable, non-inflationary earnings
growth is necessary to sustain longer-term bull markets. The manager believes
financial markets have nearly completed their recent consolidation and will
resume a bullish trend in 2001.
Thank you for your trust and confidence in both the ENHANS Master Investor Fund,
as well as the ENHANS RT 500 Fund.
Sincerely,
Kenneth S. Ray
<PAGE>
Enhans Master Investor Fund
Schedule of Investments - August 31, 2000
<TABLE>
<S> <C> <C>
Common Stocks - 108.5% Shares Value
Computer Software & Services - 0.1%
KANA Communications, Inc. (a) 3 $ 120
-----------------
Internet - 6.0%
B2B Internet HOLDRs Trust 5,000 261,875
-----------------
Investment Companies/Unit Investment Trusts - 80.6%
DIAMONDS Trust Series I 2,000 224,938
i Shares, Inc. MSCI Australia Index Fund 35,000 347,812
i Shares, Inc. MSCI Austria Index Fund 13,000 100,750
i Shares, Inc. MSCI Italy Index Fund 10,000 224,375
i Shares, Inc. MSCI Japan Index Fund 19,300 268,994
i Shares, Inc. MSCI Malaysia (Free) Index Fund 34,000 201,875
i Shares, Inc. MSCI Mexico (Free) Index Fund 10,000 167,500
i Shares, Inc. MSCI Netherlands Index Fund 15,000 354,375
i Shares, Inc. MSCI Spain Index Fund 15,900 386,569
i Shares, Inc. MSCI Sweden Index Fund 5,600 137,900
NASDAQ 100 Trust, Series I 5,000 509,375
The Energy Select Sector SPDR Fund 9,300 301,088
The Financial Select Sector SPDR Fund 10,000 284,688
-----------------
3,510,239
-----------------
Pharmaceutical - 6.5%
Pharmaceutical HOLDRs Trust 3,000 283,687
-----------------
Telecommunications - 15.3%
Telecom HOLDRs Trust 10,000 668,750
-----------------
TOTAL COMMON STOCKS (Cost $4,891,816) 4,724,671
-----------------
Principal
Amount Value
Money Market Securities - 2.6%
Firstar Treasury Fund, 5.53% (b) (Cost $114,794) 114,794 114,794
-----------------
TOTAL INVESTMENTS - 111.1% (Cost $5,006,610) 4,839,465
-----------------
Liabilities in excess of other assets - (11.1)% (485,462)
-----------------
Total Net Assets - 100.0% $ 4,354,003
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
<TABLE>
<S> <C> <C>
Enhans Master Investor Fund August 31, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $5,006,610) $ 4,839,465
Cash 101
Interest receivable 2,941
Receivable for fund shares sold 59,693
Receivable for securities sold 1,901,202
----------------
Total assets 6,803,402
Liabilities
Accrued investment advisory fee 6,138
Accrued 12b-1 fees 4,040
Payable for securities purchased 2,392,210
Payable for fund shares redeemed 47,011
------------
Total liabilities 2,449,399
---------------
Net Assets $ 4,354,003
================
Net Assets consist of:
Paid in capital 4,515,615
Accumulated undistributed net investment income 159,124
Accumulated net realized loss on investments (153,591)
Net unrealized depreciation on investments (167,145)
----------------
Net Assets, for 569,961 shares $ 4,354,003
================
Net Asset Value
Net Assets
Offering price and redemption price per share ($4,354,003 / 569,961) $ 7.64
================
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans Master Investor Fund
Statement of Operations for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
<TABLE>
<S> <C> <C>
Investment Income
Dividend income $ 181,982
Interest income 15,361
-----------
Total Income 197,343
Expenses
Investment advisory fees $ 23,797
12b-1 fees 14,422
Trustees' fees 799
-----------
Total operating expenses before reimbursement 39,018
Reimbursed expenses (799)
------------
Total operating expenses 38,219
------------
Net Investment Income 159,124
------------
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (153,591)
Change in net unrealized appreciation / (depreciation)
on investment securities (167,145)
-------------
Net loss on investment securities (320,736)
------------
Net decrease in net assets resulting from operations $(161,612)
============
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans Master Investor Fund
Statement of Changes in Net Assets for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
<TABLE>
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 159,124
Net realized loss on investment securities (153,591)
Change in net unrealized appreciation / (depreciation) (167,145)
-------------------
Net decrease in net assets resulting from operations (161,612)
-------------------
Distributions to shareholders
From investment income 0
From net realized gain 0
-------------------
Total distributions 0
-------------------
Share Transactions
Net proceeds from sale of shares 5,604,928
Shares issued in reinvestment 0
Shares redeemed (1,089,313)
-------------------
Net increase in net assets resulting
from share transactions 4,515,615
-------------------
Total increase in net assets 4,354,003
-------------------
Net Assets
Beginning of period 0
--------------------
End of period [including accumulated undistributed net
investment income of $159,124] $ 4,354,003
====================
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
<TABLE>
<S> <C>
Enhans Master Investor Fund
Financial Highlights for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
Selected Per Share Data
Net asset value, beginning of period $ 10.00
---------------------
Income from investment operations
Net investment income 0.57
Net realized and unrealized loss (2.93)
---------------------
Total from investment operations (2.36)
---------------------
Less Distributions
From net investment income 0.00
From net realized gain 0.00
---------------------
Total Distributions 0.00
---------------------
Net asset value, end of period $ 7.64
=====================
Total Return (23.60)% (a)
Ratios and Supplemental Data
Net assets, end of period (000) $ 4,354
Ratio of expenses to average net assets 2.65% (b)
Ratio of expenses to average net assets
before reimbursement 2.71% (b)
Ratio of net investment income to
average net assets 11.03% (b)
Ratio of net investment income to
average net assets before reimbursement 10.98% (b)
Portfolio turnover rate 1356.71% (b)
(a) For a period of less than a full year, the total return is not annualized.
(b) Annualized
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans RT 500 Fund
Schedule of Investments - August 31, 2000
<TABLE>
<S> <C> <C>
Shares Value
Unit Investment Trusts - 85.4%
Standard & Poors Depositary Receipts, Series 1 (Cost $4,474,778) 30,000 $ 4,570,314
----------------
Call Options Purchased - 14.9%
S & P 500 Index, October 1,400 (a) 2,000 271,000
S & P 500 Index, November 1,400 (a) 3,500 525,000
-----------------
Total Call Options Purchased (Cost $757,952) 796,000
-----------------
Principal
Amount Value
Money Market Securities - 2.2%
Firstar Treasury Fund, 5.53% (b) (Cost $120,212) 120,212 $ 120,212
-----------------
TOTAL INVESTMENTS - 102.5% (Cost $5,352,942) 5,486,526
-----------------
Liabilities in excess of other assets - (2.5%) (132,476)
-----------------
Total Net Assets - 100.0% $ 5,354,050
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at August 31, 2000.
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans RT 500 Fund August 31, 2000
Statement of Assets & Liabilities
<TABLE>
<S> <C> <C>
Assets
Investment in securities (cost $5,352,942) $ 5,486,526
Cash 110
Due from administrator 2,422
Interest receivable 14,904
Receivable for fund shares sold 85,569
-------------
Total assets 5,589,531
Liabilities
Accrued investment advisory fee 7,449
Accrued 12b-1 fees 4,812
Payable for securities purchased 150,083
Payable for fund shares redeemed 73,137
----------
Total liabilities 235,481
-------------
Net Assets $ 5,354,050
=============
Net Assets consist of:
Paid in capital 5,346,051
Accumulated undistributed net investment income 15,486
Accumulated net realized loss on investments (141,071)
Net unrealized appreciation on investments 133,584
-------------
Net Assets, for 608,445 shares $ 5,354,050
=============
Net Asset Value
Net Assets
Offering price and redemption price per share ($5,354,050 / 608,445) $ 8.80
============
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans RT 500 Fund
Statement of Operations for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
<TABLE>
<S> <C> <C>
Investment Income
Dividend income $ 11,930
Interest income 51,944
---------------
Total Income 63,874
Expenses
Investment advisory fees $ 30,128
12b-1 fees 18,260
Trustees' fees 799
-------------
Total expenses before reimbursement 49,187
Reimbursed expenses (799)
--------------
Total operating expenses 48,388
---------------
Net Investment Income 15,486
---------------
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (21,453)
Net realized loss on options transactions (119,618)
Change in net unrealized appreciation /
(depreciation) on investment securities 133,584
-------------
Net loss on investment securities (7,487)
---------------
Net increase in net assets resulting from operations $ 7,999
===============
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans RT 500 Fund
Statement of Changes in Net Assets for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
Increase (Decrease) in Net Assets
Operations
Net investment income $ 15,486
Net realized loss on investment securities (21,453)
Net realized loss on options transactions (119,618)
Change in net unrealized appreciation / (depreciation) 133,584
--------------
Increase in net assets resulting from operations 7,999
--------------
Distributions to shareholders
From investment income 0
From net realized gain 0
--------------
Total distributions 0
--------------
Share Transactions
Net proceeds from sale of shares 6,849,437
Shares issued in reinvestment 0
Shares redeemed (1,503,386)
-------------
Net increase in net assets resulting
from share transactions 5,346,051
-------------
Total increase in net assets 5,354,050
-------------
Net Assets
Beginning of period 0
-------------
End of period [including accumulated undistributed net
investment income of $15,486] $ 5,354,050
=============
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans RT 500 Fund
Financial Highlights for the period December 30, 1999
(Commencement of Operations) to August 31, 2000
Selected Per Share Data
<TABLE>
<S> <C>
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.05
Net realized and unrealized loss (1.25)
--------------
Total from investment operations (1.20)
--------------
Less Distributions
From net investment income 0.00
From net realized gain 0.00
--------------
Total Distributions 0.00
--------------
Net asset value, end of period $ 8.80
==============
Total Return (12.00)%(a)
Ratios and Supplemental Data
Net assets, end of period (000) $5,354
Ratio of expenses to average net assets 2.65% (b)
Ratio of expenses to average net assets
before reimbursement 2.69% (b)
Ratio of net investment income to
average net assets 0.85% (b)
Ratio of net investment income to
average net assets before reimbursement 0.80% (b)
Portfolio turnover rate 2139.19% (b)
(a) For a period of less than a full year, the total return is not annualized.
(b) Annualized
</TABLE>
See accompanying notes which are an integral part of the financial statements.
<PAGE>
Enhans Funds
Notes to Financial Statements
August 31, 2000
NOTE 1. ORGANIZATION
The Enhans Master Investor Fund (the "Master Investor Fund") and the Enhans RT
500 Fund (the "RT 500 Fund") were organized as diversified series of the
AmeriPrime Advisors Trust (the "Trust") on December 22, 1999 and commenced
operations on December 30, 1999. The Trust is an open-end investment company
established under the laws of Ohio by an Agreement and Declaration of Trust
dated August 3, 1999 (the "Trust Agreement"). Each Fund's investment objective
is capital appreciation. The Trust Agreement permits the Board of Trustees (the
"Board") to issue an unlimited number of shares of beneficial interest of
separate series without par value. Each Fund is one of a series of funds
currently authorized by the Board.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
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 adviser'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
Fund's adviser determines the last bid price does not accurately reflect the
current value or when restricted securities are being valued, such securities
are valued as determined in good faith by the adviser, subject to review of the
Board.
Fixed-income securities generally are valued by using market quotations, but may
be valued based on prices furnished by a pricing service when the Fund's adviser
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 adviser,
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.
Option writing - When the Fund writes an option; an amount equal to the premium
received by the Fund is recorded as a liability and is subsequently adjusted to
the current fair value of the option written. Premiums received from writing
options that expire unexercised are treated by the Fund on the expiration date
as realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium is less than
the amount paid for the closing purchase transaction, as a realized loss. If a
call option is exercised, the premium is added to the proceeds from the sale of
the underlying security or currency in determining whether the Fund has realized
a gain or loss. If a put option is exercised, the premium reduces the cost basis
of the securities purchased by the fund. The Fund as writer of an option bears
the market risk of an unfavorable change in the price of the security underlying
the written option.
Federal Income Taxes - Each Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, each 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- Each Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on at least an
annual basis. Each Fund intends to distribute its net long-term capital gains
and its net short-term capital gains at least once a year.
Other - Each 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 investment adviser to each fund is AExpert Advisory, Inc., 25 West King
Street, Lancaster, Pennsylvania 17603 (the "Adviser"). AExpert Advisory, Inc. is
a wholly owned subsidiary of AExpert, Inc. Kenneth S. Ray and Y W Kim may be
deemed to control AExpert, Inc. due to their respective share of the ownership
of AExpert, Inc.
Under the terms of each Fund's management agreement (the "Agreement"), the
investment adviser manages each Funds' investments subject to approval of the
Board of Trustees and pays all of the expenses of each Fund except brokerage,
taxes, borrowing costs (such as interest and dividend expense of securities sold
short), Rule 12b-1 expenses, fees and expenses of non-interested person
trustees, and extraordinary expenses. As compensation for its management
services and agreement to pay the Funds' expenses, each Fund is obligated to pay
the Adviser a fee computed and accrued daily and paid monthly at an annual rate
of 1.65% 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
Funds' expenses, except those specified above, are paid by the Adviser. For the
period December 30, 1999 (commencement of operations) through August 31, 2000,
the investment Adviser received fees of $23,797 from the Master Investor Fund
and $30,128 from the RT 500 Fund. The adviser has agreed to voluntarily
reimburse fees to keep the overall expense ratio at 2.65% for each Fund. For the
period from December 30, 1999 (commencement of operations) through August 31,
2000, the Adviser's reimbursement was $799 for the Master Investor Fund and $799
for the RT 500 Fund.
The Trust has adopted distribution expense plans (the "Distribution Plans") for
each Fund under Rule 12b-1 of the 1940 Act. Under the Distribution Plan, the
applicable Fund is authorized to pay a fee in an amount not to exceed on an
annual basis 1.00% of the average daily net asset value of the Fund. For the
period from December 30, 1999 (commencement of operations) through August 31,
2000, distribution expenses of $14,422 and $18,260 were incurred for the Master
Investor Fund and RT 500 Fund, respectively. The portion of the distribution
fees paid to the Adviser was $5,894 from the Master Investor Fund and $6,528
from the RT 500 Fund for expenses related to the sale of Fund shares.
The Funds retain AmeriPrime Financial Services, Inc. (the "Administrator"), a
wholly owned subsidiary of Unified Financial Services, Inc., to manage each
Fund's business affairs and to provide each Fund with administrative services,
including all regulatory reporting, necessary office equipment and personnel.
The Administrator receives a monthly fee from the Adviser equal to an annual
average rate of 0.10% of each Fund's average daily net assets up to fifty
million dollars, 0.075% of each Fund's average daily net assets from fifty
million to one hundred million and 0.050% of each Fund's average daily net
assets over one hundred million, subject to $2500 minimum. For the period
December 30, 1999 (commencement of operations) through August 31, 2000, the
Administrator received $11,915 per Fund from the Adviser for the services
provided.
Each Fund retains Unified Fund Services, Inc. ("Unified"), 431 North
Pennsylvania Street, Indianapolis, Indiana 43204, a wholly owned subsidiary of
Unified Financial Services, Inc., to act as each Fund's transfer agent and, in
such capacity, maintains the records of each shareholder's account answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of each Fund's shares, acts as dividend and distribution disbursing
agent and performs other transfer agent and shareholder service functions. For
its services as transfer agent, Unified receives a monthly fee from each Fund of
$1.20 per shareholder (subject to a minimum monthly fee of $900). For the period
December 30, 1999 (commencement of operations) through August 31, 2000, Unified
received fees of $10,610 and $11,225 from the Adviser for transfer agent
services provided to the Master Investor and the RT 500 Funds, respectively. In
addition, Unified provides each Fund with fund accounting services, which
includes certain monthly reports, record keeping and other management-related
services. For its services as fund accountant, Unified receives an annual fee
from the Adviser equal to 0.0275% of each Fund's assets up to $100 million,
0.0250% of each Fund's assets from $100 million to $300 million and 0.020% of
each Fund's assets over $300 million (subject to various minimum fees, the
maximum being $2,100 per month for assets of $20 to $100 million). For the
period December 30, 1999 (commencement of operations) through August 31, 2000.
Unified received fees of $7,200 and $8,100 from the Adviser for fund accounting
services provided to the Master Investor and RT 500 Funds, respectively.
Each Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor"), a
wholly owned subsidiary of Unified Financial Services, Inc., to act as the
principal distributor of each Fund's shares. There were no payments made to the
Distributor from December 30, 1999 (commencement of operations) through August
31, 2000 for the Master Investor Fund.
Certain members of management of the Administrator, Unified and the Distributor
are also members of management of the Trust.
NOTE 4. SHARE TRANSACTIONS
Master Investor Fund. As of August 31, 2000, there were an unlimited number of
authorized shares for the Fund. Paid in capital at August 31, 2000 was
$4,515,615.
Transactions in shares were as follows:
For the period December 30, 1999
(Commencement of Operations) through
August 31, 2000
Shares Dollars
Shares sold 711,733 $5,604,928
Shares issued in reinvestment
0 0
Shares redeemed (141,772) (1,089,313)
-------------- ------------
569,961 $4,515,615
============== ============
RT 500 Fund. As of August 31, 2000, there were an unlimited number of authorized
shares for the Fund. Paid in capital at August 31, 2000 was $5,346,051.
Transactions in shares were as follows:
For the period December 30, 1999
(Commencement of Operations) through
August 31, 2000
Shares Dollars
Shares sold 779,149 $6,849,437
Shares issued in reinvestment
0 0
Shares redeemed (170,704) (1,503,386)
---------- ------------
608,445 $5,346,051
========== =============
NOTE 5. INVESTMENTS
Master Investor Fund. For the period December 30, 1999 (commencement of
operations) through August 31, 2000, purchases and sales of investment
securities, other than short-term investments, aggregated $21,245,662 and
$16,200,141 respectively. As of August 31, 2000, the gross unrealized
appreciation for all securities totaled $14,985 and the gross unrealized
depreciation for all securities totaled $182,130 for a net unrealized
depreciation of $167,145. The aggregate cost of securities for federal income
tax purposes at August 31, 2000 was $5,006,610.
RT 500 Fund. For the period December 30, 1999 (commencement of operations)
through August 31, 2000, purchases and sales of investment securities, other
than short-term investments, aggregated $31,845,563 and $27,349,333
respectively. As of August 31, 2000, the gross unrealized appreciation for all
securities totaled $133,584 and the gross unrealized depreciation for all
securities totaled $0 for a net unrealized appreciation of $133,584. The
aggregate cost of securities for federal income tax purposes at August 31, 2000
was $5,352,942.
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. CALL OPTIONS WRITTEN
Transactions in options written by the RT 500 Fund during the year ended
August 31, 2000 were as follows:
Number of Premiums
Contracts Received
Options outstanding at December 30, 1999 0 $0
Options written 3 22,253
Options terminated in closing purchase transactions (3) (22,253)
Options outstanding at August 31, 2000 0 (0)
---- ---------
0 0
==== =========
NOTE 8: SUBSEQUENT EVENTS
Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified Fund
Services, Inc., both wholly owned subsidiaries of Unified Financial Services,
Inc., merged with one another. The result of this merger is now Unified Fund
Services, Inc., still a wholly owned subsidiary of Unified Financial Services,
Inc. Certain members of management of the Trust may be deemed to be affiliates
of Unified Fund Services, Inc.
Effective December 31, 2000, AmeriPrime Financial Securities, Inc. sold
substantially all of its assets to Unified Financial Securities, Inc. Both
companies are wholly owned subsidiaries of Unified Financial Services, Inc.
Effective as of the same date, each Fund will retain Unified Financial
Securities, Inc. to act as the principal Distributor of its shares. A Trustee
and officer of the Trust may be deemed to be an affiliate of Unified Financial
Securities, Inc.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
Enhans Funds (series of AmeriPrime Advisors Trust)
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Enhans Funds (comprising, respectively, the
Enhans Master Investor Fund and the Enhans RT 500 Fund), as of August 31, 2000,
the related statements of operations, the statements of changes in net assets,
and the financial highlights for the period of December 30, 1999 (commencement
of operations) through August 31, 2000. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash held as
of August 31, 2000 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of each
of the respective portfolios constituting the Enhans Funds as of August 31,
2000, the results of their operations, the changes in their net assets, and
their financial highlights for the period of December 30, 1999 (commencement of
operations) through August 31, 2000, in conformity with generally accepted
accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
September 24, 2000
