-14-
united states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
Investment Company Act file number 811-09096
Ameriprime Funds
(Exact name of registrant as specified in charter)
431 North Pennsylvania Street, Indianapolis, Indiana 46204
(Address of principal executive offices) (Zip code)
Unified Fund Services, 431 North Pennsylvania Street, Indianapolis,Indiana 46204
(Name and address of agent for service)
Registrant's telephone number, including area code: 317-917-7000
Date of fiscal year end: 3/31
Date of reporting period: 3/31/2003
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. 3507.
<page>
Item 1. Reports to Stockholders.
Columbia Partners Equity Fund
Management Discussion of Fund Performance
Good Riddance, 2002! Candidly, I did not expect the markets to
continue their downward slide all year. History told us otherwise. The Bear
Market had already fallen the "average" amount; three consecutive down
years had happened only once before during the Great Depression. Surely
things weren't that bad. Having had a bullish posture going into the most
recent fiscal year I am pleased to report that the fund declined only
slightly more than the S&P 500. That said, none of us is pleased with the
absolute decline experienced over the last 12 months.
The most recent year was a year where if it could go wrong, it did.
The fiscal year started with the President's "Axis of Evil" speech, was
followed shortly by double-barreled hoaxes of the first order, Enron and
WorldCom. Martha Stewart brought the dessert. Whatever signs of life there
were in a recovering economy were extinguished by fear and tightening
capital markets. As the fiscal year ended, oil prices had touched $40 per
barrel, the United States, about to embark on a war, was being humiliated
by former friends and foes alike. Had enough?
There is a silver lining. The old saying that markets climb a "wall of
worry" is apt here. Going into this next fiscal year, I am quite bullish.
It can only get better. The War in Iraq is over, oil prices have declined,
the accounting scandals, if not behind us, are less frequent occurrences.
Yes, earnings will be challenged in the second quarter; but investors
should look over the valley. First quarter earnings reports are better than
feared in many sectors. Investors have sought safety in bonds in record
numbers. My guess is that all bond purchases made in the fourth quarter of
2002 will be regretted and will fuel a powerful rally as investors move out
the risk curve. When investors realize that short yields are not beating
inflation and the market is slowly advancing, money will come to the stock
markets. If we have learned anything over the past 10 years, it is that
everything happens faster.
As in any year, we had both winners and losers. We made good money in
health care, and in names like Nextel, Coach and Mid Atlantic Medical and
had our heads returned to us in some high tech names like Seibel Systems,
Main Street and Main, and Vitesse Semiconductor. On the latter, as is
always the case with ideas gone wrong, I have to reflect, learn and commit
to not making that mistake again. Cutting one's losses comes to mind and I
will be more mindful of that in the years to come.
As you know, the Columbia Partners Equity Fund is an all-cap fund. We
seek a mix of large Blue Chip companies and small companies that occupy
attractive growth niches. I have favored small caps for most of the last
year and continue to do so with approximately 70% of the Fund invested in
them. If history repeats itself, small cap growth stocks should lead us out
of the bear market. The portfolio is reasonably diversified with important
concentrations in the consumer cyclical sector. Despite our heaviest sector
weight being in the consumer area, our largest holdings (in order),
Sovereign Bancorp, Barr Labs, Nabors Industries, Alliant Techsystems and
Weatherford International exemplify the diversity.
<page>
Returns for Period Ended March 31, 2003
<table>
<s> <c> <c> <c> <c>
Average Annual Return
1st Quarter Last 6 Since Inception
Funds Index 2003 Months 1 Year (April 1, 1999)
Columbia Partners Equity Fund -3.52% 1.63% -27.05% -3.95%
S&P 500 Index -3.15% 5.01% -24.78% -8.77%
</table>
<table>
<s> <c> <c> <c>
Columbia S&P 500
04/01/99 10,000.00 10,000.00
06/30/99 10,980.00 10,663.68
12/31/99 13,879.53 11,464.14
06/30/00 16,245.94 11,415.23
12/31/00 14,061.06 10,420.68
06/30/01 12,508.38 9,722.91
12/31/01 11,800.36 9,183.13
06/30/02 9,999.25 7,972.84
12/31/02 8,819.22 7,152.09
03/31/03 8,508.68 6,926.85
</table>
This chart shows the value of a hypothetical initial
investment of $10,000 in the Fund and the S&P 500 Index on April 1, 1999
(commencement of operations) and held through March 31, 2003. The S&P 500
Index is a widely recognized unmanaged index of equity prices and is
representative of a broader market and range of securities than is found in
the Columbia Partners Equity Fund portfolio. Individuals cannot invest
directly in this index. Performance figures reflect the change in value of
equity in the Index, and are not annualized. The index returns do not
reflect expenses, which have been deducted from the Fund's return. The
returns shown do not reflect deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund shares. THE FUND'S
RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS.
Investment returns and principal values will fluctuate so that your shares,
when redeemed, may be worth more or less than their original purchase
price. For more information on the Columbia Partners Equity Fund, please
call 1-888-696-2733 to request a prospectus. Investing in the Fund involves
certain risks that are discussed in the Fund's prospectus. Please read the
prospectus carefully before you invest or send money.
<page>
Columbia Partners Equity Fund
Schedule of Investments
March 31, 2003
<table>
<s> <c> <c>
Common Stocks - 89.21% Shares Value
Abrasive Asbestos & Misc Nonmetallic Mineral Products - 2.28%
Cabot Microelectronics Corp. (a) 6,640 $278,017
----------------
Air Transportation, Scheduled - 1.61%
Northwest Airlines Co., Class A (a) 28,560 197,064
----------------
Aircraft - 0.74%
Boeing Co. 3,600 90,216
----------------
Aircraft Engines & Engine Parts - 0.97%
United Technologies Corp. 2,055 118,738
----------------
Beverages - 1.44%
Coca-Cola Co. 4,340 175,683
----------------
Cable & Other Pay Television Services - 1.04%
Comcast Corp. Class A (a) 4,455 127,368
----------------
Computer Communication Equipment - 1.68%
Enterasys Networks, Inc. (a) 110,785 204,952
----------------
Computer Storage Devices - 1.19%
Network Appliance, Inc. (a) 12,970 145,134
----------------
Concrete, Gypsum & Plaster Products - 2.15%
Florida Rock Inds 7,735 261,830
----------------
Drilling Oil & Gas Wells - 3.17%
Nabors Industries, Inc. (a) 9,725 387,736
----------------
Electronic & Other Electrical Equipment (No Computer Equipment) - 1.41%
General Electric Co. 6,740 171,870
----------------
Electronic Computers - 1.57%
Dell Computer Corp. (a) 7,025 191,853
----------------
Gold and Silver Ores - 1.92%
Placer Dome, Inc. 23,930 234,514
----------------
Hospital & Medical Service Plans - 2.52%
Mid Atlantic Medical Services Inc (a) 7,600 308,180
----------------
Industrial Inorganic Chemicals - 2.20%
Georgia Gulf Corp 13,335 268,434
----------------
Motor Vehicle Parts & Accessories - 1.83%
Gentex Corp. (a) 8,790 223,618
----------------
National Commercial Banks - 3.97%
Citigroup, Inc. 4,054 139,660
Hibernia Corporation 20,380 345,645
----------------
485,305
----------------
</table>
<page>
Columbia Partners Equity Fund
Schedule of Investments - continued
March 31, 2003
<table>
<s> <c> <c>
Common Stocks - 89.21% - continued Shares Value
Newspapers: Publishing or Publishing & Printing - 2.10%
Knight-Ridder, Inc. 4,380 256,230
----------------
Oil & Gas Field Machinery & Equipment - 2.87%
Weatherford International Corp. (a) 9,265 349,939
----------------
Operative Builders - 2.03%
Meritage Corp (a) 7,410 248,457
----------------
Ordnance & Accessories, (No Vehicles/Guided Missiles) - 3.07%
Alliant Techsystem, Inc. (a) 6,947 375,207
----------------
Paperboard Mills - 2.18%
Smurfit Stone Container Corp. (a) 19,925 266,178
----------------
Pharmaceutical Preparations - 7.67%
Barr Laboratories, Inc. (a) 7,410 422,370
Bristol-Myers Squibb, Inc. 3,885 82,090
Johnson & Johnson 2,115 122,395
Pfizer, Inc. 4,685 145,985
Wyeth 4,340 164,139
----------------
936,979
----------------
Radiotelephone Communications - 2.06%
NEXTEL Communications, Inc. - Class A (a) 18,770 251,330
----------------
Retail - Apparel & Accessory Stores - 1.61%
Pacific Sunwear of California, Inc. (a) 9,655 196,479
----------------
Retail - Drug Stores and Proprietary Stores - 1.33%
Longs Drug Stores 10,805 162,075
----------------
Retail - Family Clothing Stores - 1.22%
Gap, Inc. 10,280 148,957
----------------
Retail - Miscellaneous Shopping Goods Stores - 1.82%
Barnes & Noble, Inc. (a) 11,735 222,848
----------------
Retail - Variety Stores - 3.41%
Costco Wholesale Corp. (a) 5,995 180,030
Target Corp. 4,510 131,963
Wal-Mart Stores, Inc. 2,000 104,060
----------------
416,053
----------------
Retail-Eating Places - 1.51%
AFC Enterprises Inc. (a) 13,740 184,940
----------------
Retail-Lumber & Other Building Materials Dealers - 1.00%
Home Depot Inc. 5,025 122,409
----------------
Retail-Women's Clothing Stores - 2.20%
Ann Taylor Stores (a) 13,115 269,251
----------------
</table>
<page>
Columbia Partners Equity Fund
Schedule of Investments - continued
March 31, 2003
<table>
<s> <c> <c>
Common Stocks - 89.21% - continued Shares Value
Savings Institution, Federally Chartered - 4.39%
Sovereign Bancorp, Inc. 38,750 536,688
----------------
Security Brokers, Dealers & Flotation Companies - 1.64%
Merrill Lynch & Co., Inc. 5,655 200,187
----------------
Semiconductors & Related Devices - 4.95%
Intel Corp. 7,880 128,286
LSI Logic Corp. (a) 42,055 190,089
Micron Technology, Inc. (a) 13,275 108,058
Skyworks Solutions (a) 28,560 177,929
----------------
604,362
----------------
Services - Miscellaneous Amusement & Recreation - 1.07%
Walt Disney Co. 7,710 131,224
----------------
Services - Prepackaged Software - 2.97%
Microsoft Corp. 9,370 226,848
Oracle Corp. (a) 12,565 136,318
----------------
363,166
----------------
Telephone & Telegraph Apparatus - 1.97%
Research In Motion Ltd. (a) 18,410 240,250
----------------
Television Broadcasting Stations - 2.52%
USA Interactive, Inc. (a) 11,485 307,683
----------------
X-Ray Apparatus, Tubes & Related Irradiation Apprts - 1.93%
Invision Technologies Inc. (a) 10,480 235,486
----------------
TOTAL COMMON STOCKS (Cost $13,643,884) 10,896,890
----------------
Unit Investment Trusts - 4.32%
NASDAQ - 100 Trust Series 1 20,845 527,378
----------------
TOTAL UNIT INVESTMENT TRUSTS (Cost $509,814) 527,378
----------------
Rights - 0.00%
Seagate Technology Escrow (c) (Cost $0) 10,210 0
----------------
Money Market Securities - 6.51%
Huntington Money Market Investors Shares - Class A, 0.25%, (Cost $795,699) (b) 795,699 795,699
----------------
TOTAL INVESTMENTS (Cost $14,949,397) - 100.04% $12,219,967
----------------
Liabilities in excess of other assets - (0.04%) (5,374)
----------------
TOTAL NET ASSETS - 100.00% $12,214,593
================
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents the rate at
March 31, 2003.
(c) Veritas Software Corp. acquired Seagate Technology in November, 2000.
Veritas has established these escrow rights for possible future payments
from pending litigation settlements. Amounts are unknown at this time.
<page>
Columbia Partners Equity Fund
Statement of Assets and Liabilities
March 31, 2003
<table>
<s> <c>
Assets
Investments in securities, at value (cost $14,949,397) $12,219,967
Interest receivable 161
Dividends receivable 6,965
Receivable for fund shares sold 5,809
--------------------
Total assets
12,232,902
--------------------
Liabilities
Accrued advisory fees 12,309
Payable for funds shares redeemed 6,000
--------------------
Total liabilities
18,309
--------------------
Net Assets $12,214,593
====================
Net Assets consist of:
Paid in capital 21,710,750
Accumulated net realized gain (loss) on investments (6,766,727)
Net unrealized appreciation (depreciation) on investments (2,729,430)
--------------------
Net Assets, for 1,783,176 shares $12,214,593
====================
Net Asset Value
Offering price and redemption price per share ($12,214,593 / 1,783,176) $6.85
====================
</table>
<page>
Columbia Partners Equity Fund
Statement of Operations
Year ended March 31, 2003
<table>
<s> <c>
Investment Income
Dividend income $76,650
Interest income 7,639
-----------------
Total Income 84,289
-----------------
Expenses
Investment advisor fee 164,584
Trustee fees and expenses 2,842
-----------------
Total Expenses 167,426
Reimbursed expenses (2,842)
-----------------
Total operating expenses 164,584
-----------------
Net Investment Income (Loss) (80,295)
-----------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (2,321,862)
Change in net unrealized appreciation (depreciation)
on investment securities (2,369,790)
-----------------
Net realized and unrealized gain (loss) on investment securities (4,691,652)
-----------------
Net increase (decrease) in net assets resulting from operations $(4,771,947)
=================
</table>
<page>
Columbia Partners Equity Fund
Statements of Changes In Net Assets
<table>
<s> <c> <c>
Year ended Year ended
Increase (Decrease) in Net Assets March 31, 2003 March 31, 2002
------------------- -------------------
Operations
Net investment income (loss) $(80,295) $(84,304)
Net realized gain (loss) on investment securities (2,321,862) (2,386,171)
Change in net unrealized appreciation (depreciation) (2,369,790) 2,442,189
------------------- -------------------
Net increase (decrease) in net assets resulting from operations (4,771,947)
(28,286)
------------------- -------------------
Capital Share Transactions
Proceeds from shares sold 830,252 1,770,340
Amount paid for shares repurchased (1,737,167) (911,542)
------------------- -------------------
Net increase (decrease) in net assets
resulting
from share transactions (906,915) 858,798
------------------- -------------------
Total Increase (Decrease) in Net Assets (5,678,862)
830,512
------------------- -------------------
Net Assets
Beginning of period 17,893,455 17,062,943
------------------- -------------------
End of period
$12,214,593 $17,893,455
=================== ===================
Capital Share Transactions
Shares sold 109,968 185,510
Shares repurchased (231,692) (98,699)
------------------- -------------------
Net increase (decrease) from capital transactions (121,724) 86,811
=================== ===================
</table>
<page>
Columbia Partners Equity Fund
Financial Highlights
<table>
<s> <c> <c> <c> <c>
Year ended Year ended Year ended Year ended
March 31, 2003 March 31, 2002 March 31, 2001 March 31, 2000
-------------------- ------------------- ------------------- -------------------
Selected Per Share Data
Net asset value, beginning of period $9.39 $9.39 $17.16 $10.00
-------------------- ------------------- ------------------- -------------------
Income from investment operations
Net investment income (loss) (0.04) (0.05) (0.05) (0.04)
Net realized and unrealized gain (loss) (2.50) 0.05 (5.41) 7.59
-------------------- ------------------- ------------------- -------------------
Total from investment operations (2.54) 0.00 (5.46) 7.55
-------------------- ------------------- ------------------- -------------------
Less Distributions to shareholders:
From net investment income 0.00 0.00 0.00 0.00
From net realized gain 0.00 0.00 (2.31) (0.39)
------------------- -------------------- ------------------- -------------------
Total distributions 0.00 0.00 (2.31) (0.39)
-------------------- ------------------- ------------------- -------------------
Net asset value, end of period $6.85 $9.39 $9.39 $17.16
==================== =================== =================== ===================
Total Return (27.05)% 0.00% (33.94)% 76.56%
Ratios and Supplemental Data
Net assets, end of period (000) $12,215 $17,893 $17,063 $24,040
Ratio of expenses to average net assets 1.20% 1.20% 1.20% 1.20%
Ratio of expenses to average net assets
before reimbursement 1.22% 1.21% 1.21% 1.22%
Ratio of net investment income to
average net assets (0.59)% (0.48)% (0.34)% (0.31)%
Ratio of net investment income to
average net assets before reimbursement (0.61)% (0.49)% (0.35)% (0.34)%
Portfolio turnover rate 61.29% 102.94% 67.93% 215.08%
</table>
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
March 31, 2003
NOTE 1. ORGANIZATION
Columbia Partners Equity Fund (the "Fund") was organized as a diversified
series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on
February 2, 1999 and commenced operations on April 1, 1999. The Trust is
established under the laws of Ohio by an Agreement and Declaration of Trust
dated August 8, 1995, (the "Trust Agreement"). The Trust Agreement permits the
Board of Trustees to issue an unlimited number of shares of beneficial interest
of separate series without par value. The Fund is one of a series of funds
currently authorized by the Board of Trustees. The Fund's investment objective
is to provide long-term capital growth. The investment advisor to the Fund is
Columbia Partners L.L.C. (the "Advisor").
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuations- Securities 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 Advisor's opinion, the last bid price does not accurately reflect the
current value of the security. All other securities for which over-the-counter
market quotations are readily available are valued at their last bid price. When
market quotations are not readily available, when the Advisor determines the
last bid price does not accurately reflect the current value or when restricted
securities are being valued, such securities are valued as determined in good
faith by the Advisor, in conformity with guidelines adopted by and subject to
review of the Board of Trustees.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. If the Advisor decides that a price
provided by the pricing service does not accurately reflect the fair market
value of the securities, when prices are not readily available from a pricing
service or when restricted or illiquid securities are being valued, securities
are valued at fair value as determined in good faith by the Advisor, in
conformity with guidelines adopted by and subject to review of the Board of
Trustees. 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 of Trustees has determined will represent fair value.
Federal Income Taxes- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions- The Fund intends to distribute substantially
all of its net investment income as dividends to its shareholders on at least an
annual basis. The Fund intends to distribute its net long-term capital gains and
its net short-term capital gains at least once a year.
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
March 31, 2003 - continued
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
Other- The Fund follows industry practice and records security transactions
on the trade date. The specific identification method is used for determining
gains or losses for financial statements and income tax purposes. Dividend
income is recorded on the ex-dividend date and interest income is recorded on an
accrual basis. Discounts and premiums on securities purchased are amortized over
the life of the respective securities. Generally accepted accounting principles
require that permanent financial reporting tax differences relating to
shareholder distributions be reclassified to paid-in capital.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Columbia Partners, L.L.C. to manage the Fund's
investments. The Advisor was organized in 1995, as an independent limited
liability company owned 50% by its employees and 50% by Galway Capital
Management, L.L.C., a venture capital firm. A team of the Advisor makes the
investment decisions for the Fund, which is primarily responsible for the
day-to-day management of the Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board and pays all of
the expenses of the Fund except brokerage fees and commissions, taxes, interest,
fees and expenses of non-interested person trustees and extraordinary expenses.
As compensation for its management services and agreement to pay the Fund's
expenses, the Fund is obligated to pay the Advisor a fee of 1.20% of the average
value of the daily net assets of the Fund. It should be noted that most
investment companies pay their own operating expenses directly, while the Fund's
expenses, except those specified above, are paid by the Advisor. For the fiscal
year ended March 31, 2003, the Advisor earned a fee of $164,584 from the Fund.
The Advisor has contractually agreed to permanently reimburse fees and expenses
of the non-interested person Trustees to maintain total operating expenses at
1.20% of net assets. For the fiscal year ended March 31, 2003, the Advisor
reimbursed fees and expenses of $2,842.
The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned
subsidiary of Unified Financial Services, Inc., to manage the Fund's business
affairs and to provide the Fund with administrative, transfer agency, and fund
accounting services, including all regulatory reporting and necessary office
equipment and personnel. The Advisor paid all administrative, transfer agency,
and fund accounting fees on behalf of the Fund per the management Agreement. A
Trustee and the officers of the Trust are members of management and/or employees
of Unified.
The Fund retains Unified Financial Securities, Inc., a wholly owned
subsidiary of Unified Financial Services, Inc. to act as the principal
distributor of its shares. There were no payments made to Unified Financial
Securities, Inc. during the fiscal year ended March 31, 2003. A Trustee and
officer of the Trust may be deemed to be an affiliate of Unified Financial
Securities, Inc.
NOTE 4. INVESTMENTS
For the fiscal year ended March 31, 2003, purchases and sales of investment
securities, other than short-term investments, aggregated $8,246,898 and
$7,739,709, respectively. As of March 31, 2003, the gross unrealized
appreciation for all securities totaled $535,425 and the gross unrealized
depreciation for all securities totaled $4,476,769, for a net unrealized
depreciation of $3,941,344. The aggregate cost of securities for federal income
tax purposes at March 31, 2003 was $16,161,311. The difference between book cost
and tax cost consists of wash sales in the amount of $13,660 and post October
losses in the amount of $1,198,254.
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
March 31, 2003 - continued
NOTE 5. 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 fiscal year. Actual results could
differ from those estimates.
NOTE 6. LOSS CARRYFORWARDS
At March 31, 2003, the Fund had available for federal tax purposes an
unused capital loss carryforward of $5,492,428, of which $1,992,862 expires in
2009, $2,384,751 expires in 2010, and $1,114,815 expires in 2011. Capital loss
carryforwards are available to offset future realized capital gains. To the
extent that these carryforwards are used to offset future capital gains, it is
probable that the amount, which is offset, will not be distributed to
shareholders. The Fund elected to defer post-October losses of $1,198,254.
NOTE 7. DISTRIBUTION TO SHAREHOLDERS
There were no distributions during the fiscal years ended March 31, 2003
and 2002.
As of March 31, 2003, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
<table>
<s> <c>
Undistributed ordinary income/(accumulated losses) $ -
Undistributed long-term capital gain/(accumulated losses) (5,554,813)
Unrealized appreciation/(depreciation) (3,941,344)
--------------
$ (9,496,157)
===============
</table>
The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of wash sales and
post-October losses.
The following table provides information regarding each Trustee who is an
"interested person" of the Trust, as defined in the Investment Company Act of
1940, and each officer of the Trust (Unaudited).
<table>
<s> <c> <c> <c> <c>
- ------------------------ ---------------------------------------- ------------------------------- --------------------
Number of
Name, Age and Address Position(s) Held with the Fund Complex1 Length of Time Served Portfolios in Fund
Complex1 Overseen
by Trustee
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
Timothy Ashburn 2 President, Secretary and Trustee President and Secretary since 27
1104 Buttonwood Court October 2002; Trustee of
Lexington, KY 40515 AmeriPrime Advisors Trust
since November 2002,
Year of Birth: 1950 AmeriPrime Funds since
December 2002, and Unified
Series Trust since October
2002
</table>
<table>
<s> <c> <c>
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ----------------------------------------------------------------- ----------------------------------------------------
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- ----------------------------------------------------
- ----------------------------------------------------------------- ----------------------------------------------------
Chairman of Unified Financial Services, Inc. since 1989 and Unified Financial Services, Inc.
Chief Executive Officer from 1989 to 1992 and 1994 to April since 1989
2002; President of Unified Financial Services from November
1997 to April 2000.
- ----------------------------------------------------------------- ----------------------------------------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
</table>
<table>
<s> <c> <c> <c> <c>
Number of
Name, Age and Address Position(s) Held with the Fund Complex1 Length of Time Served Portfolios in Fund
Complex1 Overseen
by Trustee
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
Ronald C. Tritschler 3 Trustee Trustee of AmeriPrime Funds 27
2361 Old Hickory Lane and Unified Series Trust
Lexington, KY 40515 since December 2002 and
AmeriPrime Advisors Trust
Year of Birth: 1952 since November 2002
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ----------------------------------------------------------------- ----------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- ----------------------------------------------------
- ----------------------------------------------------------------- ----------------------------------------------------
Chief Executive Officer, Director and legal counsel of The Webb None
Companies, a national real estate company, from 2001 to
present; Executive Vice President and Director of The Webb
Companies from 1990 to 2000; Director, The Lexington Bank, from
1998 to present; Director, Vice President and legal counsel for
The Traxx Companies, an owner and operator of convenience
stores, from 1989 to present.
- ----------------------------------------------------------------- ----------------------------------------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
</table>
<table>
<s> <c> <c> <c> <c>
Position(s) Held with the Fund Complex1 Length of Time Served Number of
Name, Age and Address Portfolios in Fund
Complex1 Overseen
by Trustee
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
Thomas G. Napurano Treasurer and Chief Financial Officer Since October 2002 for N/A
2424 Harrodsburg Road AmeriPrime Funds and
Lexington, KY 40503 AmeriPrime Advisors Trust;
since December 2002 for
Year of Birth: 1941 Unified Series Trust
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ----------------------------------------------------------------- ----------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- ----------------------------------------------------
- ----------------------------------------------------------------- ----------------------------------------------------
Chief Financial Officer and Executive Vice President of Unified N/A
Financial Services, Inc., the parent company of the Trust's
administrator and principal underwriter; member of the board of
directors of Unified Financial Services, Inc. from 1989 to
March 2002.
- ----------------------------------------------------------------- ----------------------------------------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
</table>
<table>
<s> <c> <c> <c> <c>
Number of
Name, Age and Address Position(s) Held Length of Time Served Portfolios
with Trust in Fund Complex 1
Overseen by Trustee
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ------------------------ ---------------------------------------- ------------------------------- --------------------
Carol Highsmith Assistant Secretary Since December 2002 for N/A
431 N. Pennsylvania St. AmeriPrime Funds; since
Indianapolis, IN 46204 November 2002 for AmeriPrime
Advisors Trust and Unified
Year of Birth: 1964 Series Trust
- ------------------------ ---------------------------------------- ------------------------------- --------------------
- ----------------------------------------------------------------- ----------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held
- ----------------------------------------------------------------- ----------------------------------------------------
- ----------------------------------------------------------------- ----------------------------------------------------
Employed by Unified Fund Services, Inc. (November 1994 to None
present); Vice President and Asst. Secretary of Lindbergh
Funds; Asst. Secretary of AmeriPrime Funds and AmeriPrime
Advisors Trust (October 2002 to present).
- ----------------------------------------------------------------- ----------------------------------------------------
</table>
1 The terms "Fund Complex" refers to AmeriPrime Funds,
AmeriPrime Advisors Trust, and Unified Series Trust.
2 Mr. Ashburn is an "interested person" of the Trust because
he is an officer of the Trust. In addition, he may be deemed to
be an "interested person" of the Trust because he is Chairman and
a director of Unified Financial Securities, Inc., the principal
underwriter for certain funds in the Fund Complex.
3 Mr. Tritschler may be deemed to be an "interested person"
of the Trust because he has an ownership interest in Unified
Financial Services, Inc., the principal underwriter for certain
funds in the Fund Complex.
The following table provides information regarding each Trustee who
is not an "interested person" of the Trust, as defined in the
Investment Company Act of 1940 (Unaudited).
- ------------------------------ ---------------------------------- --------------
<table>
<s> <c> <c> <c> <c>
Name, Age and Address Position(s) Held with the Fund Length of Time Served Number of Portfolios in
Complex1 Fund Complex1 Overseen
by Trustee
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ------------------------------ ---------------------------------- ----------------------- -------------------------
Gary E. Hippenstiel Trustee Trustee of AmeriPrime 27
600 Jefferson Street Funds since 1995,
Suite 350 AmeriPrime Advisors
Houston, TX 77002 Trust since July 2002
and Unified Series
Year of Birth: 1947 Trust since December
2002
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- -------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- -------------------------------------------------
- ----------------------------------------------------------------- -------------------------------------------------
Director, Vice President and Chief Investment Officer of Legacy None
Trust Company since 1992.
- ----------------------------------------------------------------- -------------------------------------------------
- ------------------------------ ---------------------------------- ----------------------- -------------------------
</table>
<table>
<s> <c> <c> <c> <c>
Position(s) Held Length of Time Served Number of Portfolios in
Name, Age and Address with the Fund Complex1 Fund Complex1
Overseen by Trustee
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ------------------------------ ---------------------------------- ----------------------- -------------------------
Stephen A. Little Trustee Trustee of AmeriPrime 27
3647 Totem Lane Funds and Unified
Indianapolis, IN 46208 Series Trust since
Year of Birth: 1946 December 2002 and
AmeriPrime Advisors
Trust since November
2002
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- -------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- -------------------------------------------------
- ----------------------------------------------------------------- -------------------------------------------------
President and founder, The Rose, Inc., a registered investment None
advisor, since April 1993.
- ----------------------------------------------------------------- -------------------------------------------------
- ------------------------------ ---------------------------------- ----------------------- -------------------------
</table>
<table>
<s> <c> <c> <c> <c>
Position(s) Held with the Fund Number of Portfolios in
Name, Age and Address Complex1 Length of Time Served Fund Complex1 Overseen
by Trustee
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ------------------------------ ---------------------------------- ----------------------- -------------------------
Daniel Condon Trustee Trustee of AmeriPrime 27
2385 The Woods Lane Funds and Unified
Lexington, KY 40502 Series Trust since
December 2002 and
Year of Birth: 1950 AmeriPrime Advisors
Trust since November
2002
- ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- -------------------------------------------------
</table>
<table>
<s> <c> <c>
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- -------------------------------------------------
- ----------------------------------------------------------------- -------------------------------------------------
Vice President and General Manager, International Crankshaft None
Inc., an automotive equipment manufacturing company, 1990 to
present; Trustee, The Unified Funds, from 1994 to 2002;
Trustee, Star Select Funds, a REIT mutual fund, from 1997 to
2000.
- ----------------------------------------------------------------- -------------------------------------------------
</table>
1 The terms "Fund Complex" refers to AmeriPrime Funds, AmeriPrime Advisors
Trust and Unified Series Trust.
<page>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
Columbia Partners Equity Fund (a series of AmeriPrime Funds)
We have audited the accompanying statement of assets and liabilities of the
Columbia Partners Equity Fund, including the schedule of portfolio investments,
as of March 31, 2003, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the four years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. 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 owned as of March 31, 2003, by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Columbia Partners Equity Fund as of March 31, 2003, the results of its
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the four years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
/s/ McCurdy & Associates CPA's, Inc.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
April 16, 2003
<page>
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Items 5-6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.
Not applicable.
Item 8. Reseved.
Item 9. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure
controls and procedures as of April 30, 2003 [within 90
days of filing date of this Form N-CSR], the disclosure controls
and procedures are reasonably designed to ensure that the
information required in filings on Forms N-CSR is recorded,
processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant's
internal controls or in other factors that could affect these
controls subsequent to the date of our evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10. Exhibits.
(a) Not applicable.
(b) Certifications required by Item 10(b) of Form N-CSR are filed
herewith.
[File the exhibits listed below as part of this Form. Letter
or number the exhibits in the sequence indicated.
(a) Annual reports only: Any code of ethics, or amendment
thereto, that is the subject of the disclosure required by Item
2, to the extent that the registrant intends to satisfy the Item
2 requirements through filing of an exhibit. (registrant may file
the Code of Ethics, or state in the annual report that 1) the
Code is available on website (give address) or 2) state that the
Code is available on request without change, and explain how to
request a copy. This Exhibit is named "EX-99.CODE ETH" for EDGAR
filing.].
(b) A separate certification for each principal executive
officer and principal financial officer of the registrant as
required by Rule 30a-2 under the Act (17 CFR 270.30a-2). This
Exhibit is named "EX-99.CERT" for EDGAR filing.]
SIGNATURES [See General Instruction F: the report must be
signed by the registrant, and by each officer that provided a
certification.]
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
(Registrant)
By (Signature and Title)
* /s/ Timothy Ashburn
[Timothy Ashburn, President]
Date 5/22/03
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, this report has
been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By (Signature and Title)
* /s/ Timothy Ashburn
[Timothy Ashburn, President]
Date 5/22/03
By (Signature and Title)
* /s/ Thomas Napurano
[Thomas Napurano, Chief Financial Officer]
Date 5/22/03