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 811-09541
Ameriprime Advisors Trust
(Exact name of registrant as specified in charter)
431 North Pennsylvania Street, Indianapolis, IN 46204
(Address of principal executive offices) (Zip code)
Timothy Ashburn, Unified Fund Services, Inc., 431 North Pennsylvania Street
Indianapolis, IN 46204
(Name and address of agent for service)
Registrant's telephone number, including area code: 317-917-7000
Date of fiscal year end: 08/31
Date of reporting period: 08/31/03
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.
Item 1. Reports to Stockholders.
<page>
===============================================================================
Monteagle Funds
===============================================================================
Annual Report
August 31, 2003
Fund Advisor:
Nashville Capital Corporation
209 10th Avenue South
Suite 332
Nashville, TN 37203
Toll Free: (877) 272-9746
<page>
Monteagle Fixed Income Fund
Returns for the Periods Ended August 31, 2003
<table>
<s> <c> <c> <c>
Average Annual
1 Year 3 Year Total Return
Average Annual Average Annual Since Inception
Total Return Total Return (December 20, 1999)
------------------------------------------------
Monteagle Fixed Income Fund 3.06% 8.03% 7.77%
Lehman Interm. Govt. Credit Bond Index 5.25% 8.39% 8.14%
</table>
Growth of a $10,000 Investment
<table>
<s> <c> <c>
Monteagle Fixed Income Fund Lehman Interm Govt Credit Bond Index
12/20/99 10,000.00 10,000.00
2/29/00 10,004.40 10,014.57
8/31/00 10,464.12 10,490.98
2/28/01 11,424.56 11,263.39
8/31/01 11,851.70 11,780.43
2/28/02 12,206.75 12,120.37
8/31/02 12,799.95 12,692.09
2/28/03 13,250.15 13,322.44
8/31/03 13,191.42 13,358.33
</table>
This chart shows the value of a hypothetical initial investment of $10,000
in the Fund and the Lehman Brothers Intermediate Gov. Credit Bond Index on
December 20, 1999 (commencement of operations) and held through August 31, 2003.
The Lehman Brothers Intermediate Gov./Credit Bond Index is a widely recognized
unmanaged index of bond prices and is representative of a broader market and
range of securities than is found in the Monteagle Fixed Income Fund portfolio.
Individuals cannot invest directly in an index. Performance figures reflect the
change in value of the bonds in the Index, 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 DOES NOT GUARANTEE
FUTURE RESULTS. Investment returns and principal value will fluctuate so that
your shares, when redeemed, may be worth more or less than their original
purchase price. For more information on the Monteagle Fixed Income Fund, please
call 1-800-459-9084 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>
Management Discussion
The fund seeks to realize its investment objectives by investing at least
80% of its assets in fixed income securities, including the following:
o U. S. Government Obligations
o Government Sponsored Enterprises (Agencies) Obligations
o Taxable Municipal bonds
o Corporate Debt instruments
The fund's performance is affected by various elements of risk, including:
Interest Rates:
In general, shorter term interest rates (two years and less) were lower,
and longer term interest rates (five years and greater) were higher at the end
of the fund's fiscal year than they were at the beginning. However, for most of
the year, interest rates were at historic lows. Most of the price appreciation
and positive returns for the year were generated in the first three quarters.
Duration/Average Maturity of Assets:
Over the last year, fixed income securities having longer maturities
outperformed those of shorter duration. The fund's overall average maturity
remained fairly constant throughout the year at 4.1 years. The fund's
performance was negatively impacted by keeping its duration shorter than past
years. Given the relatively low absolute levels of interest rates, we continue
to be cautious in our expectations of price appreciation in the fixed income
markets.
Credit Risk:
The overall credit quality of the Fund's assets is AA-, the fourth highest
rating of ten levels that comprise the Investment Grade Market. The fund's
performance was positively affected by an increased allocation in Corporate
bonds versus U.S. Treasury notes and Agency bonds. This sector performed well
based on expectations of economic recovery and increased demand for current
higher yielding assets.
Sincerely,
HOWE AND RUSLING, INC.
<page>
Monteagle Opportunity Growth Fund
Returns for the Periods Ended August 31, 2003
<table>
<s> <c> <c> <c>
Average Annual
1 Year 3 Year Total Return
Average Annual Average Annual Since Inception
Total Return Total Return (December 20, 1999)
----------------------------------------------------------------------------
Monteagle Opportunity Growth Fund 4.17% -21.74% -15.45%
S & P 500 Index 12.06% -11.43% -8.39%
</table>
Growth of a $10,000 Investment
<table>
<s> <c> <c>
Monteagle Opportunity Growth Fund S & P 500
12/20/99 10,000.00 10,000.00
2/29/00 17,100.00 9,318.02
8/31/00 11,210.00 10,410.25
2/28/01 6,190.78 8,554.43
8/31/01 5,732.20 7,872.44
2/28/02 5,732.20 7,741.15
8/31/02 5,158.98 6,454.65
2/28/03 4,514.11 5,984.25
8/31/03 5,373.94 7,232.91
</table>
This chart shows the value of a hypothetical initial investment of $10,000
in the Fund and the S&P 500 Index on December 20, 1999 (commencement of
operations) and held through August 31, 2003. The S&P 500 Index is a widely
recognized unmanaged index of common stock prices and is representative of a
broader market and range of securities than is found in the Monteagle
Opportunity Growth Fund portfolio. Individuals cannot invest directly in an
index. The graph and performance table do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of Fund
shares. Performance figures reflect the change in value of the stocks in the
Index plus 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 DOES NOT GUARANTEE FUTURE RESULTS.
Investment returns and principal value will fluctuate so that your shares, when
redeemed, may be worth more or less than their original purchase price. For more
information on the Monteagle Opportunity Growth Fund, please call 1-800-459-9084
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>
Management Discussion
The U.S. markets edged higher during the past quarter, spurred by rising
corporate profits, growth in capital spending, continued consumer spending and a
red-hot housing market. The quarter marked the first back-to-back quarterly
gains since 2000. Stocks have gained considerable momentum during the past six
months - after a brief war-related pause in the first quarter - putting all
major stock indices on track for their first winning year since 1999.
OUTLOOK FOR THE US STOCK MARKET
The US economy shows unmistakable signs of moving from recovery to
expansion during this second half of 2003. It is expected to grow at its
strongest pace in almost four years. Despite continued job losses in the
manufacturing sector, August marked the fourth straight month in which new
orders and production numbers grew. Consensus estimates now predict S&P 500
Index earnings will climb 14.9% for the September quarter, and 21.5% for the
December quarter.
Fiscal policy is very stimulative as defense spending soars, tax rebates
arrive and withholding tax rebates decline. Monetary policy remains
extraordinarily accommodative. The lowest interest rates in 45 years, the third
largest tax cut in US history, $6.4 trillion in cash on the side lines and more
than $1 trillion of new M-3 money should accelerate economic growth in future
months and push stock prices to still higher levels.
Respectfully submitted,
T. H. Fitzgerald, Jr.
President
T.H. Fitzgerald & Co.
<page>
Monteagle Value Fund
Returns for the Periods Ended August 31, 2003
<table>
<s> <c> <c> <c>
Average Annual
1 Year 3 Year Total Return
Average Annual Average Annual Since Inception
Total Return Total Return (December 20, 1999)
---------------------------------------------------------------------------
Monteagle Value Fund 13.49% 3.48% 7.17%
Russell 2000 Value Index 23.68% 11.28% 14.51%
</table>
Growth of a $10,000 Investment
<table>
<s> <c> <c>
Monteagle Value Fund Russell 2000 Value Index
12/20/99 10,000.00 10,000.00
2/29/00 9,240.00 10,832.56
8/31/00 11,660.00 11,978.01
2/28/01 12,762.14 13,212.61
8/31/01 13,707.48 14,138.94
2/28/02 13,843.26 14,966.57
8/31/02 11,384.57 13,347.24
2/28/03 10,092.48 12,212.82
8/31/03 12,920.27 16,507.56
</table>
This chart shows the value of a hypothetical initial investment of $10,000
in the Fund and the Russell 2000 Value Index on December 20, 1999 (commencement
of operations) and held through August 31, 2003. The Russell 2000 Value Index is
a widely recognized unmanaged index of common stock prices and is representative
of a broader market and range of securities than is found in the Monteagle Value
Fund portfolio. Individuals cannot invest directly in an index. The graph and
performance table do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund shares. Performance figures
reflect the change in value of the stocks in the Index plus 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 DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and
principal value will fluctuate so that your shares, when redeemed, may be worth
more or less than their original purchase price. For more information on the
Monteagle Value Fund, please call 1-800-459-9084 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>
Management Discussion
The investment climate for the Monteagle Value Fund for the year ended
August 31, 2003 changed dramatically during the past twelve months. The
continued record low interest rates and the prospects for sustained economic
recovery greeted investors with a significant rally in stock prices since March
11, 2003. Additionally, the European and Far Eastern economies appear to be
entering economic recovery as well.
With fifty year lows achieved in the U.S. Treasury Bill rates in the second
quarter, the foundation has been laid by policy makers for substantial capital
formation for the coming months. However, the U.S. bond market rally came to an
abrupt halt in the second quarter with investors choosing alternative
investments for income, like higher paying dividend stocks. The accommodative
Fed policy now and in the past twelve months has calmed the equity markets
during the past twelve months as most major indices moved into positive returns
reversing the three year decline in stock prices.
Over the past six months, since March, the equity market has experienced
positive price changes in almost all industrial sectors, especially the
economically sensitive industries. Market weakness has been confined to
defensive industry groups including pharmaceuticals, electric utility companies,
commercial banks, and packaged food companies. Additionally, small and
mid-capitalization issues have outperformed large capitalization companies.
The prospects for market sustainability remain high as economic recovery
continues to accelerate. The passing of the Tax Reduction Bill this spring has
reduced taxes for most in the United States which will put real money into the
economy. The Federal Reserve policy remains accommodative and is now favoring
inflation for the first time under the watchful eye of Alan Greenspan. Already
in the past twelve months, most major commodities have experienced double digit
percentage increases in price.
The Monteagle Value Fund investment objectives remain to offer investors a
lower risk portfolio of stocks to produce long-term capital growth.
Sincerely,
Russell L. Robinson
President
Robinson Investment Group
<page>
Monteagle Large Cap Equity Fund
Returns for the Periods Ended August 31, 2003
<table>
<s> <c> <c> <c>
Average Annual
1 Year 3 Year Total Return
Average Annual Average Annual Since Inception
Total Return Total Return (January 18, 2000)
----------------------------------------------------------------------------
Monteagle Large Cap Fund 8.01% -20.46% -17.46%
S & P 500 Index 12.06% -11.42% -8.32%
</table>
Growth of a $10,000 Investment
<table>
<s> <c> <c>
Monteagle Large Cap Fund S & P 500
1/18/00 10,000.00 10,000.00
2/29/00 9,430.00 9,404.18
8/31/00 9,920.00 10,506.51
2/28/01 7,562.49 8,633.52
8/31/01 6,702.20 7,945.23
2/28/02 6,041.99 7,816.20
8/31/02 4,621.52 6,517.24
2/28/03 4,221.39 6,042.27
8/31/03 4,991.64 7,303.04
</table>
This chart shows the value of a hypothetical initial investment of $10,000
in the Fund and the S&P 500 Index on January 18, 2000 (commencement of
operations) and held through August 31, 2003. The S&P 500 Index is a widely
recognized unmanaged index of common stock prices and is representative of a
broader market and range of securities than is found in the Monteagle Large Cap
Fund portfolio. Individuals cannot invest directly in an index. The graph and
performance table do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund shares Performance figures
reflect the change in value of the stocks in the Index plus 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 DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and
principal value will fluctuate so that your shares, when redeemed, may be worth
more or less than their original purchase price. For more information on the
Monteagle Large Cap Fund, please call 1-800-459-9084 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>
Management Discussion
The fund seeks to realize its investment objectives by investing in common
stocks, at least 80% of which have a market capitalization of at least $15
billion.
The fund's performance is affected by conditions in the U. S. stock market
and the economies of the U.S. and the western world.
The year ending August 31 witnessed abnormally high volatility in U.S.
stock prices, but these 12 months ended on a positive note. Large cap stocks had
just begun to outperform the S&P 500 stock index. This fund was no exception.
In the last 6 months of the fund's fiscal year, a disproportionate part of
the progress was contributed by the industrial and consumer cyclical stocks in
the portfolio. It was fortunate that we had overweighted these sectors.
This good relative performance is logical, as the stock market began to
discount the coming strength in economic activity. The more conservative parts
of the portfolio, such as healthcare and consumer products, produced only a
modest gain. There was a marked rotation of investor enthusiasm into the more
economically sensitive groups.
Sincerely,
HOWE AND RUSLING, INC.
<page>
Monteagle Fixed Income Fund
Schedule of Investments
August 31, 2003
<table>
<s> <c> <c>
Principal
Amount Value
Corporate Bonds - 56.24%
Abbott Laboratories Corp. Notes, 6.400%, 12/1/2006 1,500,000 $ 1,659,313
American Express Co. Notes, 3.750%, 11/20/2007 300,000 300,193
American General Finance Medium Term Notes, 5.875%, 7/14/2006 1,000,000 1,081,635
Ameritech Capital Funding Corp. Guaranteed Notes, 6.150%, 1/15/2008 1,000,000 1,091,918
Bank of America Senior Notes, 4.875%, 1/15/2013 500,000 489,705
Bank of New York Medium Term Notes, 3.900%, 9/1/2007 500,000 506,346
Bear Stearns Co. Global Notes, 4.000%, 1/31/2008 525,000 526,390
BellSouth Capital Funding Debentures, 6.040%, 11/15/2026 500,000 544,375
Bristol Myers Squibb Notes, 5.750%, 10/1/2011 500,000 524,473
CBS Corp. Senior Notes, 7.150%, 5/20/2005 1,000,000 1,084,002
Commercial Credit Co. Notes, 10.000%, 12/1/2008 1,000,000 1,266,153
Dayton Hudson Corp. Notes, 5.875%, 11/1/2008 1,000,000 1,082,197
General Motors Acceptance Corp., 7.100%, 3/15/2006 500,000 529,516
International Business Machines Notes, 5.375%, 2/1/2009 1,000,000 1,061,771
McDonnell Douglas Co. Notes, 6.875%, 11/1/2006 1,000,000 1,084,546
Merrill Lynch & Co., Inc. Notes, 8.000%, 6/1/2007 500,000 564,915
Morgan Stanley Dean Witter Notes, 4.250%, 5/15/2010 1,000,000 972,374
Nabisco, Inc. Notes, 7.050%, 7/15/2007 1,000,000 1,100,512
Pitney Bowes Credit Corp. Notes, 8.625%, 2/15/2008 700,000 838,111
United Technologies Notes, 4.875%, 11/1/2006 300,000 316,609
-----------------
TOTAL CORPORATE BONDS (Cost $15,883,302) 16,625,054
-----------------
Municipal Obligations - 24.83%
Atlanta & Fulton County, Georgia Recreation Authority Downtown
Arena Project, 6.625%, 12/1/2011 300,000 326,028
Buffalo, New York Pension System 8.500%, 8/15/2005 500,000 556,660
Denver, Colorado City & County School District, 6.760%, 12/15/2007 1,000,000 1,118,780
LaGrange, Georgia Development Authority Communications System
Project 6.100%, 2/1/2010 750,000 805,732
Manchester, New Hampshire Airport Revenue Bonds 7.350%, 1/1/2004 350,000 356,367
Morristown, Tennessee 6.000%, 3/1/2007 410,000 410,000
New Jersey Sports & Expos 7.375%, 3/1/2007 500,000 562,635
New York State Environmental Facilities Corp. 6.660%, 3/15/2007 950,000 1,044,563
Orleans Parish, Louisiana School Board Revenue Bonds 6.600%, 2/1/2008 1,000,000 1,099,000
Texas Tech University Revenue Bonds, 5.320%, 8/15/2007 1,000,000 1,061,610
-----------------
TOTAL MUNICIPAL OBLIGATIONS (Cost $6,845,793) 7,341,375
-----------------
U.S. Treasury and Agency Obligations - 17.22%
Federal Home Loan Bank, 5.375%, 5/15/2009 500,000 529,610
Federal Home Loan Bank, 3.600%, 3/11/2008 200,000 198,706
Federal National Mortgage Association, 4.750%, 3/15/2004 1,000,000 1,019,066
Federal National Mortgage Association, 6.375%, 6/15/2009 1,500,000 1,672,501
US Treasury Notes, 5.625%, 5/15/2008 1,275,000 1,401,256
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Fixed Income Fund
Schedule of Investments - continued
August 31, 2003
U.S. Treasury and Agency Obligations - 17.22% - continued
<table>
<s> <c> <c>
Principal
Amount Value
US Treasury Notes, 7.250%, 5/15/2004 100,000 $ 104,258
US Treasury Notes, 5.500%, 5/15/2009 150,000 164,525
-----------------
TOTAL U.S. TREASURY & AGENCY OBLIGATIONS (Cost $4,780,329) 5,089,922
-----------------
Money Market Securities - 0.72%
Huntington Money Market Fund Investment Shares, 0.250% (a) (Cost $212,851) 212,851 212,851
-----------------
TOTAL INVESTMENTS - 99.01% (Cost $27,722,275) $ 29,269,202
-----------------
Other assets less liabilities - 0.99% 292,923
-----------------
TOTAL NET ASSETS - 100.00% $ 29,562,125
=================
</table>
(a) Variable rate security; the coupon rate shown represents the rate at
August 31, 2003.
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Opportunity Growth Fund
Schedule of Investments
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 99.42% Shares Value
Biological Products (No Diagnostic Substances) - 2.35%
Invitrogen Corp. (a) 8,700 $ 503,469
-----------------
Computer Storage Devices - 2.08%
SanDisk Corp. (a) 7,400 447,330
-----------------
Crude Petroleum & Natural Gas - 0.47%
Anadarko Petroleum Corp. 2,300 100,050
-----------------
Finance Services - 6.55%
Life Partners Holdings, Inc. 260,500 1,406,700
-----------------
General Building Contractors - Residential Buildings - 0.94%
Lennar Corp. - Class A 3,000 201,750
-----------------
Insurance Agents, Brokers & Service - 4.64%
AdvancePCS, Inc. (a) 24,900 996,747
-----------------
Leather & Leather Products - 2.98%
Coach, Inc. (a) 11,000 638,440
-----------------
Miscellaneous Manufacturing Industries - 1.60%
International Game Technology 13,300 343,672
-----------------
Mobile Homes - 0.05%
Cavco Industries, Inc. (a) 605 11,532
-----------------
Motor Vehicles & Passenger Car Bodies - 4.46%
PACCAR, Inc. 11,200 956,144
-----------------
Operative Builders - 11.85%
Centex Corp. 5,500 414,810
D.R. Horton, Inc. 13,800 429,456
Hovnanian Enterprises, Inc. - Class A (a) 6,900 425,523
NVR, Inc. (a) 500 216,750
Pulte Homes Corp. 3,100 206,336
Ryland Group, Inc. 9,600 644,736
Toll Brothers, Inc. (a) 6,900 205,068
-----------------
2,542,679
-----------------
Pharmaceutical Preparations - 9.58%
American Pharmaceutical Partners, Inc. (a) 27,700 1,320,459
Pharmaceutical Resources, Inc. (a) 5,400 302,076
TEVA Pharmaceutical Industries, Ltd. (c) 7,400 433,344
-----------------
2,055,879
-----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Opportunity Growth Fund
Schedule of Investments - continued
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 99.42% - continued Shares Value
Photographic Equipment & Supplies - 4.29%
Avid Technology, Inc. (a) 18,500 $ 919,450
-----------------
Radiotelephone Communications - 2.12%
NEXTEL Communications, Inc. - Class A (a) 23,500 454,255
-----------------
Retail - Catalog & Mail - Order Houses - 5.27%
Amazon.com, Inc. (a) 24,400 1,130,208
-----------------
Semiconductors & Related Devices - 3.03%
Omnivision Technologies, Inc. (a) 14,700 650,622
-----------------
Services - Business Services - 13.00%
eBAY, Inc. (a) 16,000 886,560
Netease.com, Inc. (a) (c) 19,300 984,300
NetScreen Technologies, Inc. (a) 10,700 256,479
Overture Services, Inc. (a) 26,600 663,138
-----------------
2,790,477
-----------------
Services - Commercial Physical & Biological Research - 4.69%
Gen Probe, Inc. (a) 15,900 1,007,106
-----------------
Services - Computer Integrated Systems Design - 4.73%
Yahoo, Inc. (a) 30,400 1,015,056
-----------------
Services - Computer Programming, Data Processing, Etc. - 2.91%
United Online, Inc. (a) 16,500 624,855
-----------------
Services - Educational Services - 5.20%
Career Education Corp. (a) 19,500 878,280
University of Phoenix Online (a) 3,500 237,335
-----------------
1,115,615
-----------------
Services - Nursing & Personal Care Facilities - 2.05%
Odyssey Healthcare, Inc. (a) 14,400 440,496
-----------------
Services - Prepackaged Software - 3.32%
Sina Corp. (a) 23,000 713,460
-----------------
Surgical & Medical Instruments & Apparatus - 1.26%
Guidant Corp. 5,400 271,080
-----------------
Transportation Services - 0.00%
InteractiveCorp (a) 20 740
-----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Opportunity Growth Fund
Schedule of Investments - continued
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 99.42% - continued Shares Value
TOTAL COMMON STOCKS (Cost $18,785,587) $ 21,337,812
-----------------
Money Market Securities - 6.32%
Huntington Money Market Fund Investment Shares, 0.25%, (Cost $1,357,230) (b) 1,357,230 1,357,230
-----------------
TOTAL INVESTMENTS (Cost $20,142,817) - 105.74% $ 22,695,042
-----------------
Liabilities in excess of other assets - (5.74%) (1,232,097)
-----------------
TOTAL NET ASSETS - 100.00% $ 21,462,945
=================
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents the rate at
August 31, 2003.
(c) American Depositary Receipts.
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Value Fund
Schedule of Investments
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 98.52% Shares Value
Aircraft & Parts - 4.64%
Textron, Inc. 15,100 $ 679,500
-----------------
Computer Communication Equipment - 3.43%
Adaptec, Inc. (a) 68,700 502,197
-----------------
Drilling Oil & Gas Wells - 3.84%
Rowan Co., Inc. (a) 22,450 562,148
-----------------
Electric Lighting & Wiring Equipment - 7.97%
Cooper Industries, Inc. 11,800 600,502
Hubbell, Inc. - Class B 14,200 567,432
-----------------
1,167,934
-----------------
Electric Services - 6.99%
Duke Energy Inc. 33,550 573,034
TECO Energy, Inc. 38,200 451,906
-----------------
1,024,940
-----------------
Electronic Components & Accessories - 4.61%
Vishay Intertechnology, Inc. (a) 41,000 675,270
-----------------
Guided Missiles & Space Vehicles & Parts - 5.56%
Goodrich Corp. 31,300 814,739
-----------------
Paper Mills - 3.42%
Meadwestvaco Corp. 19,795 501,803
-----------------
Paperboard Containers & Boxes - 2.25%
Sonoco Products Co. 14,500 330,165
-----------------
Petroleum Refining - 3.81%
ConocoPhillips Co. 10,000 558,400
-----------------
Pharmaceutical Preparations - 3.71%
Schering-Plough Corp. 35,750 543,043
-----------------
Photographic Equipment & Supplies - 2.78%
Eastman Kodak, Inc. 14,600 407,194
-----------------
Plastic Mail, Synth Resin/Rubber, Cellulose (No Glass) - 3.89%
DuPont (EI) de NeMours & Co. 12,750 570,435
-----------------
Railroad Equipment - 4.89%
Trinity Industries, Inc. 27,200 715,904
-----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Value Fund
Schedule of Investments - continued
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 98.52% - continued Shares Value
Real Estate Investment Trusts - 3.52%
New Plan Excel Realty Trust, Inc. 22,550 $ 515,493
-----------------
Retail - Department Stores - 1.69%
The May Department Stores Co. 9,000 248,220
-----------------
Retail - Grocery Stores - 3.38%
Albertson's, Inc. 23,550 495,021
-----------------
Semiconductors & Related Devices - 3.13%
Atmel Corp. (a) 100,000 458,000
-----------------
Services - Auto Rental & Leasing (No Drivers) - 4.47%
Ryder System, Inc. 21,800 654,654
-----------------
Services - Computer Integrated Systems Design - 5.03%
Unisys Corp. (a) 56,800 737,264
-----------------
Steel Works, Blast Furnaces & Rolling & Finishing Mills - 3.71%
Worthington Industries, Inc. 36,000 543,600
-----------------
Telephone & Telegraph Apparatus - 3.92%
ADC Telecommunications, Inc. (a) 125,000 315,000
Tellabs, Inc. (a) 40,000 259,600
-----------------
574,600
-----------------
Water Transportation - 3.33%
Tidewater, Inc. 17,000 488,240
-----------------
Wholesale - Groceries & Related Products - 4.55%
Supervalu, Inc. 27,650 666,365
-----------------
TOTAL COMMON STOCKS (Cost $14,632,373) 14,435,129
-----------------
Money Market Securities - 1.32%
Huntington Money Market Fund, 0.25%, (Cost $193,460) (b) 193,460 193,460
-----------------
TOTAL INVESTMENTS (Cost $14,825,833) - 99.84% $ 14,628,589
-----------------
Other assets less liabilities - 0.16% 23,192
-----------------
TOTAL NET ASSETS - 100.00% $ 14,651,781
=================
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents the rate at
August 31, 2003.
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Large Cap Fund
Schedule of Investments
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 99.78% Shares Value
Cable & Other Pay Television Services - 4.99%
Viacom, Inc. - Class B 4,500 $ 202,500
-----------------
Computers & Office Equipment - 4.44%
International Business Machines Corp. 2,200 180,422
-----------------
Construction Machinery & Equipment - 6.37%
Caterpillar, Inc. 3,600 258,588
-----------------
Electronic & Other Electrical Equipment (No Computer Equipment) - 4.73%
General Electric Co. 6,500 192,205
-----------------
Electronic Connectors - 5.34%
Tyco International Ltd. 10,540 216,913
-----------------
Insurance Agents Brokers & Services - 6.16%
Marsh & McLennan Companies, Inc. 5,000 250,000
-----------------
Malt Beverages - 4.57%
Anheuser-Busch Co. 3,600 185,544
-----------------
National Commercial Banks - 5.34%
Citigroup, Inc. 5,000 216,750
-----------------
Oil & Gas - 4.97%
Royal Dutch Petroleum Co. (c) 4,500 201,915
-----------------
Pharmaceutical Preparations - 8.23%
Johnson & Johnson 3,000 148,740
Pfizer, Inc. 6,200 185,504
-----------------
334,244
-----------------
Plastic Mail, Synth Resin/Rubber, Cellulos (No Glass) - 4.85%
DuPont (EI) de NeMours & Co. 4,400 196,856
-----------------
Retail - Catalog & Mail - Order Houses - 4.89%
CDW Corp. (a) 3,850 198,698
-----------------
Retail - Lumber & Other Building Materials Dealers - 5.54%
Home Depot Inc. 7,000 225,120
-----------------
Retail - Variety Stores - 5.60%
Target Corp. 5,600 227,360
-----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Large Cap Fund
Schedule of Investments - continued
August 31, 2003
<table>
<s> <c> <c>
Common Stocks - 99.78% - continued Shares Value
Savings Institutions, Not Federally Chartered - 5.95%
Washington Mutual, Inc. 6,200 $ 241,676
-----------------
Services - Personal Services - 2.66%
Cendant Corp. (a) 6,000 107,880
-----------------
Ship & Boat Building & Repairing - 6.36%
General Dynamics Corp. 3,000 258,330
-----------------
Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics - 4.30%
Procter & Gamble Inc. 2,000 174,580
-----------------
Wholesale - Drugs Proprietaries & Druggists' Sundries - 4.49%
Cardinal Health, Inc. 3,200 182,176
-----------------
TOTAL COMMON STOCKS (Cost $4,448,710) 4,051,757
-----------------
Money Market Securities - 0.17%
Huntington Money Market Fund Investment Shares, 0.25%, (Cost $6,853) (b) 6,853 6,853
-----------------
TOTAL INVESTMENTS (Cost $4,455,563) - 99.95% $ 4,058,610
-----------------
Other Assets less Liabilities - 0.05% 2,201
-----------------
TOTAL NET ASSETS - 100.00% $ 4,060,811
=================
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents the rate at
August 31, 2003.
(c) American Depositary Receipts.
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - August 31, 2003
<table>
<s> <c> <c> <c> <c>
MONTEAGLE MONTEAGLE MONTEAGLE MONTEAGLE
FIXED INCOME OPPORTUNITY VALUE LARGE CAP
FUND GROWTH FUND FUND FUND
Assets
Investments in securities, at value $ 29,269,202 $ 22,695,042 $ 14,628,589 $ 4,058,610
(cost $27,722,275, $20,142,817
$14,825,833 and $4,455,563,
respectively)
Interest receivable 417,389 547 97 3
Dividends receivable - 11,543 40,986 8,238
Receivable for investments sold - 257,023 - -
Other receivables - 6,997 - -
------------------ ------------------ --------------- ------------------
Total assets 29,686,591 22,971,152 14,669,672 4,066,851
------------------ ------------------ --------------- ------------------
Liabilities
Payable for investments purchased - 1,482,549 - -
Accrued advisory fees 29,051 23,885 16,118 4,267
Other accrued expenses 1,773 1,773 1,773 1,773
Distribution payable 93,642 - - -
------------------ ------------------ --------------- ------------------
Total liabilities 124,466 1,508,207 17,891 6,040
------------------ ------------------ --------------- ------------------
Net Assets:
Applicable to 2,697,980, 5,722,781
1,341,511and 814,163 shares
outstanding, respectively $ 29,562,125 $ 21,462,945 $ 14,651,781 $ 4,060,811
================== ================== =============== ==================
Net Assets consist of:
Paid in capital 27,608,897 40,567,410 16,739,393 11,101,950
Accumulated undistributed net investment income (loss) 11,337 - (14,270) 6,111
Accumulated net realized gain (loss ) on investments 394,964 (21,656,690) (1,876,098) (6,650,297)
Net unrealized appreciation (depreciation) on investments 1,546,927 2,552,225 (197,244) (396,953)
------------------ ------------------ --------------- ------------------
$ 29,562,125 $ 21,462,945 $ 14,651,781 $ 4,060,811
================== ================== =============== ==================
Net asset value, offering and
redemption price per share $ 10.96 $ 3.75 $ 10.92 $ 4.99
================== ================== =============== ==================
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
STATEMENTS OF OPERATIONS
Year ended August 31, 2003
<table>
<s> <c> <c> <c> <c>
MONTEAGLE MONTEAGLE MONTEAGLE MONTEAGLE
FIXED INCOME OPPORTUNITY VALUE LARGE CAP
FUND GROWTH FUND FUND FUND
Investment Income:
Dividend income $ - $ 82,757 $ 481,546 $ 69,487
Interest income 1,671,871 43,828 1,154 483
----------------- ------------------ ------------- ------------------
Total Income 1,671,871 126,585 482,700 69,970
----------------- ------------------ ------------- ------------------
Expenses:
Investment manager fee 386,866 301,450 211,678 61,997
Trustee expenses 1,773 1,773 1,773 1,773
----------------- ------------------ ------------- ------------------
Total expenses 388,639 303,223 213,451 63,770
---------------- ------------------ ------------- ------------------
Net Investment Income (Loss) 1,283,232 (176,638) 269,249 6,200
----------------- ------------------ ------------- ------------------
Realized & Unrealized Gain (Loss):
Net realized gain (loss) on investment securities 394,888 (3,338,927) (363,394) (1,899,662)
Change in net unrealized appreciation (depreciation)
on investment securities (536,724) 3,843,445 1,598,703 2,127,692
----------------- ------------------ ------------- ------------------
Net realized and unrealized gain (loss) on investment securities (141,836) 504,518 1,235,309 228,030
----------------- ------------------ ------------- ------------------
Net increase (decrease) in net
assets from operations $ 1,141,396 $ 327,880 $ 1,504,558 $ 234,230
================= ================== ============= ==================
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<table>
<s> <c> <c> <c> <c>
MONTEAGLE MONTEAGLE
FIXED INCOME OPPORTUNITY GROWTH
FUND FUND
----------------------------------- ------------------------------
Year ended Year ended Year ended Year ended
Increase (Decrease) in Net Assets Aug. 31, 2003 Aug.31,2002 Aug. 31, 2003 Aug.31,2002
------------------ ------------- --------------- --------------
Operations:
Net investment income (loss) $ 1,283,232 $ 1,665,038 $ (176,638) $ (210,382)
Net realized gain (loss) on investment securities 394,888 727,520 (3,338,927) (1,359,663)
Change in net unrealized appreciation (depreciation) (536,724) 422,929 3,843,445 (1,493,118)
--------------- ------------- -------------- ------------
Net increase (decrease) in net assets resulting from operations 1,141,396 2,815,487 327,880 (3,063,163)
--------------- ------------- -------------- ------------
Distributions:
From net investment income (1,278,249) (1,657,250) - -
From net realized gain (439,848) - - -
--------------- ------------- -------------- ------------
Total distributions (1,718,097) (1,657,250) - -
--------------- ------------- -------------- ------------
Capital Share Transactions:
Proceeds from shares sold 553,903 986,613 1,964,972 10,204,457
Reinvestment of distributions - - - -
Amount paid for shares repurchased (8,041,449) (1,024,664) (7,394,214) (12,957,079)
--------------- ------------- -------------- ------------
Net increase (decrease) in net assets resulting
from share transactions (7,487,546) (38,051) (5,429,242) (2,752,622)
--------------- ------------- -------------- ------------
Total Increase (Decrease) in Net Assets (8,064,247) 1,120,186 (5,101,362) (5,815,785)
--------------- ------------- -------------- ------------
Net Assets:
Beginning of period 37,626,372 36,506,186 26,564,307 32,380,092
--------------- ------------- -------------- ------------
End of period $ 29,562,125 $37,626,372 $ 21,462,945 $26,564,307
============== ============== ============== ==============
Accumulated undistributed net
investment income included
in net assets at end of period $ 11,337 $ 6,354 $ - $ -
--------------- ------------- -------------- ------------
Capital Share Transactions:
Shares sold 49,638 90,207 550,823 2,555,983
Shares issued in reinvestment of distributions - - - -
Shares repurchased (720,289) (94,586) (2,202,830) (3,277,725)
--------------- ------------- -------------- ------------
Net increase (decrease) from capital transactions (670,651) (4,379) (1,652,007) (721,742)
=============== =============== ================ ==============
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<table>
<s> <c> <c> <c> <c>
MONTEAGLE MONTEAGLE
VALUE LARGE CAP
FUND FUND
-------------------------------- --------------------------------
Year ended Year ended Year ended Year ended
Increase (Decrease) in Net Assets Aug. 31, 2003 Aug.31,2002 Aug. 31, 2003 Aug.31,2002
---------------- ------------- --------------- -------------
Operations:
Net investment income (loss) $ 269,249 $ 327,860 $ 6,200 $ (22,674)
Net realized gain (loss) on investment securities (363,394) (902,154) (1,899,662) (3,444,183)
Change in net unrealized appreciation (depreciation) 1,598,703 (3,347,943) 2,127,692 410,174
--------------- ------------- -------------- ------------
Net increase (decrease) in net assets resulting from operations 1,504,558 (3,922,237) 234,230 (3,056,683)
--------------- ------------- -------------- ------------
Distributions:
From net investment income (283,519) (304,649) - -
From net realized gain - (2,834,170) - -
--------------- ------------- -------------- ------------
Total distributions (283,519) (3,138,819) - -
--------------- ------------- -------------- ------------
Capital Share Transactions:
Proceeds from shares sold 308,764 1,923,267 9,691,231 126,949
Reinvestment of distributions - - - -
Amount paid for shares repurchased (5,888,358) (2,177,075) (12,525,229) (377,876)
--------------- ------------- -------------- ------------
Net increase (decrease) in net assets resulting
from share transactions (5,579,594) (253,808) (2,833,998) (250,927)
--------------- ------------- -------------- ------------
Total Increase (Decrease) in Net Assets (4,358,555) (7,314,864) (2,599,768) (3,307,610)
--------------- ------------- -------------- ------------
Net Assets:
Beginning of period 19,010,336 26,325,200 6,660,579 9,968,189
--------------- ------------- -------------- ------------
End of period $ 14,651,781 $19,010,336 $ 4,060,811 $ 6,660,579
=============== ============= ============== ============
Accumulated undistributed net
investment income included
in net assets at end of period $ (14,270) $ - $ 6,111 $ (89)
--------------- ------------- -------------- ------------
Capital Share Transactions:
Shares sold 32,640 156,287 2,107,696 20,108
Shares issued in reinvestment of distributions - - - -
Shares repurchased (637,832) (182,421) (2,733,891) (68,543)
--------------- ------------- -------------- ------------
Net increase (decrease) from capital transactions (605,192) (26,134) (626,195) (48,435)
=============== ============= ============== ============
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
FINANCIAL HIGHLIGHTS
The tables below set forth financial data for a share of beneficial
interest outstanding throughout each period presented.
<table>
<s> <c> <c> <c> <c>
MONTEAGLE
FIXED INCOME
FUND
-------------------------------------------------------------------------
Year ended Year ended Year ended Period ended
Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a)
----------------- ----------------- ---------------- --------------------
Selected Per Share Data
Net asset value, beginning of period $ 11.17 $ 10.82 $ 10.06 $ 10.00
Income from investment operations
Net investment income (loss) 0.42 0.49 0.55 0.28
Net realized and unrealized gain (loss) (0.08) 0.35 0.76 0.16
----------------- ----------------- ---------------- --------------------
Total from investment operations 0.34 0.84 1.31 0.44
----------------- ----------------- ---------------- --------------------
Less Distributions to shareholders:
From net investment income (0.42) (0.49) (0.55) (0.38)
From net realized gain (0.13) 0.00 0.00 0.00
----------------- ----------------- ---------------- --------------------
Total distributions (0.55) (0.49) (0.55) (0.38)
----------------- ----------------- ---------------- --------------------
Net asset value, end of period $ 10.96 $ 11.17 $ 10.82 $ 10.06
================= ================= ================ ====================
Total Return 3.06% 8.00% 13.37% 4.54% (b)
Ratios and Supplemental Data
Net assets, end of period (000) $ 29,562 $ 37,626 $ 36,506 $ 29,346
Ratio of expenses to average net assets 1.14% 0.97% 1.14% 1.15% (c)
Ratio of net investment income to
average net assets 3.76% 4.56% 5.28% 3.97% (c)
Portfolio turnover rate 20.52% 48.58% 75.84% 58.87%
</table>
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000.
(b) For periods of less than a full year, total return is not annualized.
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
FINANCIAL HIGHLIGHTS
The tables below set forth financial data for a share of beneficial
interest outstanding throughout each period presented.
<table>
<s> <c> <c> <c> <c>
MONTEAGLE
OPPORTUNITY GROWTH
FUND
-------------------------------------------------------------------------
Year ended Year ended Year ended Period ended
Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a)
----------------- ----------------- ---------------- --------------------
Selected Per Share Data
Net asset value, beginning of period $ 3.60 $ 4.00 $ 11.21 $ 10.00
----------------- ----------------- ---------------- --------------------
Income from investment operations
Net investment income (loss) (0.03) (0.03) 0.03 (0.04)
Net realized and unrealized gain (loss) 0.18 (0.37) (4.46) 1.25
----------------- ----------------- ---------------- --------------------
Total from investment operations 0.15 (0.40) (4.43) 1.21
----------------- ----------------- ---------------- --------------------
Less Distributions to shareholders:
From net investment income 0.00 0.00 0.00 0.00
From net realized gain 0.00 0.00 (2.78) 0.00
----------------- ----------------- ---------------- --------------------
Total distributions 0.00 0.00 (2.78) 0.00
----------------- ----------------- ---------------- --------------------
Net asset value, end of period $ 3.75 $ 3.60 $ 4.00 $ 11.21
================= ================= ================ ====================
Total Return 4.17% (10.00)% (48.87)% 12.10% (b)
Ratios and Supplemental Data
Net assets, end of period (000) $ 21,463 $ 26,564 $ 32,380 $ 75,102
Ratio of expenses to average net assets
before reimbursements 1.36% 1.37% 1.32% 1.27% (c)
Ratio of expenses to average net assets
after reimbursements 1.36% 1.34% 1.32% 1.27% (c)
Ratio of net investment income to
average net assets before reimbursements (0.79)% (0.69)% 0.55% (0.53)%(c)
Ratio of net investment income to
average net assets after reimbursements (0.79)% (0.67)% 0.55% (0.53)%(c)
Portfolio turnover rate 478.58% 455.29% 545.28% 605.41%
</table>
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000.
(b) For periods of less than a full year, total return is not annualized.
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
FINANCIAL HIGHLIGHTS
The tables below set forth financial data for a share of beneficial
interest outstanding throughout each period presented.
<table>
<s> <c> <c> <c> <c>
MONTEAGLE
VALUE
FUND
-------------------------------------------------------------------------
Year ended Year ended Year ended Period ended
Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a)
----------------- ----------------- ---------------- --------------------
Selected Per Share Data
Net asset value, beginning of period $ 9.77 $ 13.34 $ 11.66 $ 10.00
----------------- ----------------- ---------------- --------------------
Income from investment operations
Net investment income (loss) 0.16 0.17 0.14 0.06
Net realized and unrealized gain (loss) 1.14 (2.17) 1.88 1.60
----------------- ----------------- ---------------- --------------------
Total from investment operations 1.30 (2.00) 2.02 1.66
----------------- ----------------- ---------------- --------------------
Less Distributions to shareholders:
From net investment income (0.15) (0.15) (0.12) 0.00
From net realized gain 0.00 (1.42) (0.22) 0.00
----------------- ----------------- ---------------- --------------------
Total distributions (0.15) (1.57) (0.34) 0.00
----------------- ----------------- ---------------- --------------------
Net asset value, end of period $ 10.92 $ 9.77 $ 13.34 $ 11.66
================= ================= ================ ====================
Total Return 13.49% (16.95)% 17.56% 16.60% (b)
Ratios and Supplemental Data
Net assets, end of period (000) $ 14,652 $ 19,010 $ 26,325 $ 19,734
Ratio of expenses to average net assets 1.36% 1.35% 1.35% 1.36% (c)
Ratio of net investment income to
average net assets 1.72% 1.37% 1.15% 0.77% (c)
Portfolio turnover rate 28.39% 58.62% 152.86% 375.67%
</table>
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000.
(b) For periods of less than a full year, total return is not annualized.
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
<page>
MONTEAGLE FUNDS
FINANCIAL HIGHLIGHTS
The tables below set forth financial data for a share of beneficial
interest outstanding throughout each period presented.
<table>
<s> <c> <c> <c> <c>
MONTEAGLE
LARGE CAP
FUND
-------------------------------------------------------------------------
Year ended Year ended Year ended Period ended
Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a)
----------------- ----------------- ---------------- --------------------
Selected Per Share Data
Net asset value, beginning of period $ 4.62 $ 6.70 $ 9.92 $ 10.00
----------------- ----------------- ---------------- --------------------
Income from investment operations
Net investment income (loss) 0.01 (0.02) (0.03) 0.01
Net realized and unrealized gain (loss) 0.36 (2.06) (3.19) (0.09)
----------------- ----------------- ---------------- --------------------
Total from investment operations 0.37 (2.08) (3.22) (0.08)
----------------- ----------------- ---------------- --------------------
Less Distributions to shareholders:
From net investment income 0.00 0.00 0.00 0.00
From net realized gain 0.00 0.00 0.00 0.00
----------------- ----------------- ---------------- --------------------
Total distributions 0.00 0.00 0.00 0.00
----------------- ----------------- ---------------- --------------------
Net asset value, end of period $ 4.99 $ 4.62 $ 6.70 $ 9.92
================= ================= ================ ====================
Total Return 8.01% (31.04)% (32.44)% (0.80)(b)
Ratios and Supplemental Data
Net assets, end of period (000) $ 4,061 $ 6,661 $ 9,968 $ 12,820
Ratio of expenses to average net assets 1.27% 1.03% 1.26% 1.27% (c)
Ratio of net investment income to
average net assets 0.12% (0.26)% (0.44)% 0.10% (c)
Portfolio turnover rate 26.93% 86.74% 70.04% 68.00%
</table>
(a) January 18, 2000 (Commencement of Operations) through August 31, 2000.
(b) For periods of less than a full year, total return is not annualized.
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
<page>
Monteagle Funds
Notes to Financial Statements
August 31, 2003
NOTE 1. ORGANIZATION
The Monteagle Fixed Income Fund (the "Fixed Income Fund"), Monteagle
Opportunity Growth Fund (the "Opportunity Growth Fund"), Monteagle Value Fund
(the "Value Fund"), and Monteagle Large Cap Fund (the "Large Cap Fund") (each a
"Fund" or collectively, the "Funds") were organized as a series of AmeriPrime
Advisors Trust (the "Trust") on August 3, 1999. The Fixed Income Fund,
Opportunity Growth Fund, and Value Fund, commenced operations on December 20,
1999, and the Large Cap Fund commenced operations on January 18, 2000. 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 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 offered by the Trust. The investment
objective of the Fixed Income Fund is total return and the investment objectives
of the Opportunity Growth Fund, the Value Fund, and the Large Cap Fund are to
provide long-term growth of capital. The Opportunity Growth Fund is a
non-diversified series of the Trust. The Fixed Income Fund, the Large Cap Fund,
and the Value Fund are diversified series of the Trust. The investment manager
to the Funds is Nashville Capital Corporation ("Investment Manager"). The
Investment Manager retains an Advisor for each fund.
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 closing price.
Lacking a last closing 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 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 applicable 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
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. If the applicable
advisor decides that a price provided by the pricing services 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 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- Each Fund intends to qualify each year as a
"regulated investment company" under Sub-Chapter M of 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. The Fixed Income Fund
distributes its net investment income on a monthly basis.
<page>
Monteagle Funds
Notes to Financial Statements
August 31, 2003 - continued
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
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 paid-in capital for the Opportunity Growth
Fund.
NOTE 3. 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 Funds and is responsible for providing general investment
advice and guidance to the Funds. However, Nashville Capital Corporation has
delegated responsibility for the selection and ongoing monitoring of the
securities in each Fund's investment portfolio to the Funds' respective advisors
set forth below. Each Fund is authorized to pay Nashville Capital Corporation a
fee based on average daily net assets at the following rates:
<table>
<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
including $100 million 1.18% 1.10% 0.97% 1.00%
Over $100 million 1.10% 1.00% 0.90% 0.95%
</table>
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 and pays all of the expenses of each Fund except brokerage fees and
commissions, taxes, borrowing costs (such as (a) interest and (b) dividend
expenses on securities sold short), 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 year ended August 31, 2003, the Investment Manager received
fees of $386,866, $301,450, $211,678 and $61,997 from the Fixed Income,
Opportunity Growth, Value and Large Cap Funds, respectively.
Large Cap Fund and Fixed Income Fund. The Investment Manager has retained
Howe and Rusling, Inc. ("H & R") 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 is primarily responsible for the day-to-day
management of the Large Cap and Fixed Income Funds. Nashville Capital
Corporation has agreed to pay H & R 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 H & R 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.
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 its founding in
1959. Mr. Fitzgerald is primarily responsible for the day-to-day management of
the Opportunity Growth Fund. Nashville Capital Corporation 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.
<page>
Monteagle Funds
Notes to Financial Statements
August 31, 2003 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
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. Robinson is primarily responsible for the day-to-day
management of the Value Fund. Nashville Capital Corporation has agreed to pay
Robinson Investment Group, Inc. 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.
The Funds retain 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 Funds with administrative, transfer agency, and fund
accounting services, including all regulatory reporting and necessary office
equipment and personnel. The Investment Manager paid all administrative,
transfer agency, and fund accounting fees on behalf of the Funds per the
Agreement. Certain Trustees and the officers of the Trust are members of
management and employees of Unified, and/or shareholders of Unified Financial
Services, Inc., the parent of Unified.
The Funds retain Unified Financial Securities, Inc., a wholly owned
subsidiary of Unified Financial Services, Inc. to act as the principal
distributor of their shares. There were no payments made to Unified Financial
Securities, Inc. during the year ended August 31, 2003. Timothy L. Ashburn (a
Trustee and officer of the Trust) and Thomas G. Napurano (an officer of the
Trust) are a director and officer, respectively, of the Distributor and of
Unified Financial Services, Inc. (the parent company of the Distributor), and
may be deemed to be affiliates of the Distributor.
NOTE 4. INVESTMENTS
Fixed Income Fund. For the year ended August 31, 2003, purchases and sales
of investment securities, other than short-term investments, aggregated
$6,678,865, and $13,241,399, respectively. The gross unrealized appreciation for
all securities totaled $1,659,474 and the gross unrealized depreciation for all
securities totaled $112,547 for a net unrealized appreciation of $1,546,927. The
aggregate cost of securities for federal income tax purposes at August 31, 2003
was $27,722,275.
Opportunity Growth Fund. For the year ended August 31, 2003, purchases and
sales of investment securities, other than short-term investments, aggregated
$86,621,895 and $69,622,956, respectively. The gross unrealized appreciation for
all securities totaled $2,725,121 and the gross unrealized depreciation for all
securities totaled $2,642,492 for a net unrealized appreciation of $82,629. The
aggregate cost of securities for federal income tax purposes at August 31, 2003
was $22,612,413. The difference between book cost and tax cost consist of wash
sales in the amount of $239,364 and post-October losses in the amount of
$2,230,232.
Value Fund. For the year ended August 31, 2003, purchases and sales of
investment securities, other than short-term investments, aggregated $4,395,786
and $10,051,751, respectively. The gross unrealized appreciation for all
securities totaled $1,692,788 and the gross unrealized depreciation for all
securities totaled $2,610,275 for a net unrealized depreciation of $917,487. The
aggregate cost of securities for federal income tax purposes at August 31, 2003
was $15,546,076. The difference between book cost and tax cost consist of wash
sales in the amount of $90,704 and post-October losses in the amount of
$629,539.
Large Cap Fund. For the year ended August 31, 2003, purchases and sales of
investment securities, other than short-term investments, aggregated $1,301,123
and $3,989,139 respectively. The gross unrealized appreciation for all
securities totaled $243,698 and the gross unrealized depreciation for all
securities totaled $2,524,325 for a net unrealized depreciation of $2,280,627.
The aggregate cost of securities for federal income tax purposes at August 31,
2003 was $6,339,237. The difference between book cost and tax cost consists of
wash sales in the amount of $23,826 and post-October losses in the amount of
$1,859,848.
<page>
Monteagle Funds
Notes to Financial Statements
August 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 period. Actual results could
differ from those estimates.
NOTE 6. RELATED PARTY TRANSACTIONS
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,
2003, Farmers and Merchants Corporation, for the benefit of its customers,
beneficially owned 100% of each Fund.
NOTE 7. CAPITAL LOSS CARRYFORWARDS
Opportunity Growth Fund. At August 31, 2003, the Fund had available for
federal tax purposes an unused capital loss carryforward of $18,965,433, which
$16,640,805 expires in 2009, $1,131,479 expires in 2010 and $1,193,149 expires
in 2011.
The Fund elected to defer post-October losses of $2,230,232.
Value Fund. At August 31, 2003, the Fund had available for federal tax
purposes an unused capital loss carryforward of $1,155,855 which expires in
2011.
The Fund elected to defer post-October losses of $629,539.
Large Cap Fund. At August 31, 2003, the Fund had available for federal tax
purposes an unused capital carryforward of $4,766,624, which $470,032 expires in
2008, $826,803 expires in 2009, $425,424 expires in 2010, and $3,044,365 expires
in 2011.
The Fund has elected to defer post-October losses of $1,859,848.
Capital loss carryforwards are available to offset future realized gains.
To the extent that these carryforwards are used to offset future realized
capital gains, it is probable that the amount, which is offset, will not be
distributed.
NOTE 8. DISTRIBUTION TO SHAREHOLDERS
Fixed Income Fund. The Fund paid monthly distributions of net investment
income totaling $0.42. On December 20, 2002, a long-term capital gain
distribution of $0.13 per share was declared. The distribution was paid on
December 20, 2002, for shareholders of record on December 19, 2002.
The tax character of distributions paid during fiscal years 2003 and 2002
was as follows.
<table>
<s> <c> <c>
Distributions paid from: 2003 2002
---------------- ------------------
Ordinary income $ 1,278,249 $ 1,657,250
Short-term Capital Gain - -
Long-term Capital Gain 439,848 -
---------------- ------------------
$ 1,718,097 $ 1,657,250
================ ==================
</table>
<page>
Monteagle Funds
Notes to Financial Statements
August 31, 2003 - continued
NOTE 8. DISTRIBUTION TO SHAREHOLDERS - continued
Opportunity Growth Fund. There were no distributions during the fiscal year
ended August 31, 2003.
Value Fund. On December 20, 2002, an income distribution of $0.1473 was
declared. The dividend was paid on December 20, 2002, to shareholders of record
on December 19, 2002.
The tax character of distributions paid during the fiscal years 2003 and
2002 was as follows:
<table>
<s> <c> <c>
Distributions paid from: 2003 2002
---------------- ---------------
Ordinary income $ 283,519 $ 304,649
Short-term Capital Gain - 2,722,737
Long-term Capital Gain - 111,433
---------------- ---------------
$ 283,519 $ 3,138,819
================ ===============
</table>
Large Cap Fund. There were no distributions during the fiscal year ended
August 31, 2003.
As of August 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<table>
<s> <c> <c> <c> <c>
Fixed Fund Opportunity Value Large Cap
---------------- ------------------ ---------------- ----------------
Undistributable ordinary income
(accumulated losses) $ 111,588 $ - $ (14,270) $ 6,111
Undistributable long-term capital gain
(accumulated losses) 294,713 (19,187,094) (1,155,855) (4,766,623)
Unrealized appreciation/(depreciation) 1,546,927 82,629 (917,487) (2,280,627)
---------------- ------------------ ---------------- ----------------
$ 1,953,228 $ (19,104,465) $ (2,087,612) $ (7,041,139)
================ ================== ================ ================
</table>
NOTE 9. SIGNIFICANT EVENT (Unaudited)
On August 29, 2003, a special meeting of shareholders was held on behalf of
the Large Cap Fund. Two issues were discussed and approved. The first issue was
a new management agreement for the Fund with Nashville Capital Corporation. The
second issue was a new advisory agreement between Northstar Capital Management,
Inc. and Nashville Capital Corporation for the Fund. Both agreements were
approved and went into effect on September 1, 2003.
The results of the vote of the shareholders of the Large Cap Fund to
approve a new Management Agreement between the Trust and Nashville Capital
Corporation:
<table>
<s> <c> <c>
For Approval Against Approval Abstain
- --------------------------------------------------------------------------------
813,387.698 0.000 0.000
- --------------------------------------------------------------------------------
</table>
The management fee schedule changed as a result of the new Management
Agreement. The new fee schedule is as follows:
<table>
<s> <c>
Assets Fees
- ------------------------------------------------------------------------
Up to and including $25 million 1.35%
- ------------------------------------------------------------------------
From $25 million up to and including $50 million 1.25%
- ------------------------------------------------------------------------
From $50 million up to and including $100 million 1.10%
- ------------------------------------------------------------------------
Over $100 million 1.00%
- ------------------------------------------------------------------------
</table>
<page>
Monteagle Funds
Notes to Financial Statements
August 31, 2003 - continued
NOTE 9. SIGNIFICANT EVENT (Unaudited) - continued
The results of the vote of the shareholders of the Large Cap Fund on the
proposal to approve a new Advisory Agreement between Nashville Capital
Corporation and Northstar Capital Management, Inc.:
<table>
<s> <c> <c>
For Approval Against Approval Abstain
- --------------------------------------------------------------------------------
813,387.698 0.000 0.000
- --------------------------------------------------------------------------------
</table>
The Large Cap Fund changed its name to the Monteagle Large Cap Growth Fund.
This change became effective September 1, 2003.
<page>
TRUSTEES AND OFFICERS (Unaudited)
The Board of Trustees supervises the business activities of the Trust. Each
Trustee serves as a trustee until termination of the Trust unless the Trustee
dies, resigns, retires, or is removed.
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.
<table>
<s> <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 Ashburn2 President, Secretary and Trustee President and Secretary since 24
October 2002; Trustee of
c/o Unified Fund Services, AmeriPrime Advisors Trust
Inc. since November 2002,
431 N. Pennsylvania St. AmeriPrime Funds since
Indianapolis, IN 46204 December 2002, and Unified
Series Trust since October
Year of Birth: 1950 2002
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
</table>
<table>
<s> <c>
- -------------------------------------------------------------------------- -----------------------------------------------------
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- -------------------------------------------------------------------------- -----------------------------------------------------
- -------------------------------------------------------------------------- -----------------------------------------------------
Chairman of Unified Financial Services, Inc. since 1989 and Chief Unified Financial Services, Inc.
Executive Officer from 1989 to 1992 and 1994 to April 2002; President of since 1989
Unified Financial Services from November 1997 to April 2000.
- -------------------------------------------------------------------------- -----------------------------------------------------
</table>
<table>
<s> <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. Tritschler3 Trustee Trustee of AmeriPrime Funds 24
and Unified Series Trust
c/o Unified Fund Services, since December 2002 and
Inc. AmeriPrime Advisors Trust
431 N. Pennsylvania St. since November 2002
Indianapolis, IN 46204
Year of Birth: 1952
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
</table>
<table>
<s> <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>
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
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
AmeriPrime Funds and
c/o Unified Fund Services, AmeriPrime Advisors Trust;
Inc. since December 2002 for
431 N. Pennsylvania St. Unified Series Trust
Indianapolis, IN 46204
Year of Birth: 1941
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
</table>
<table>
<s> <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>
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
Number of Portfolios
Name, Age and Address Position(s) Held Length of Time Served in Fund Complex1
with Trust Overseen by Trustee
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
Carol Highsmith Assistant Secretary Since October 2002 for N/A
AmeriPrime Funds and
c/o Unified Fund Services, Ameriprime Advisors Trust;
Inc. since December 2002 for
431 N. Pennsylvania St. Unified Series Trust
Indianapolis, IN 46204
Year of Birth: 1964
- ----------------------------- -------------------------------------------- ------------------------------- ---------------------
</table>
<table>
<s> <c>
- -------------------------------------------------------------------------- -----------------------------------------------------
Principal Occupations During Past 5 Years
Other Directorships Held
- -------------------------------------------------------------------------- -----------------------------------------------------
- -------------------------------------------------------------------------- -----------------------------------------------------
Employed by Unified Fund Services, Inc. (November 1994 to present); Vice None
President and Asst. Secretary of Lindbergh Funds; Asst. Secretary of
AmeriPrime Funds and AmeriPrime Advisors Trust (October 2002 to present).
- -------------------------------------------------------------------------- -----------------------------------------------------
</table>
1 The term "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
parent of the principal underwriter for certain funds in the Fund Complex.
<page>
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.
<table>
<s> <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 24
Funds since 1995,
c/o Unified Fund Services, AmeriPrime Advisors
Inc. Trust since July 2002
431 N. Pennsylvania St. and Unified Series
Indianapolis, IN 46204 Trust since December
2002
Year of Birth: 1947
- ------------------------------ ---------------------------------- ----------------------- -------------------------
</table>
<table>
<s> <c>
- ----------------------------------------------------------------- -------------------------------------------------
Principal Occupations During Past 5 Years Other Directorships Held by Trustee
- ----------------------------------------------------------------- -------------------------------------------------
- ----------------------------------------------------------------- -------------------------------------------------
Director, Vice President and Chief Investment Officer of Legacy None
Trust Company, N.A. since 1992.
- ----------------------------------------------------------------- -------------------------------------------------
</table>
<table>
<s> <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 24
Funds and Unified
c/o Unified Fund Services, Series Trust since
Inc. December 2002 and
431 N. Pennsylvania St. AmeriPrime Advisors
Indianapolis, IN 46204 Trust since November
2002
Year of Birth: 1946
- ------------------------------ ---------------------------------- ----------------------- -------------------------
</table>
<table>
<s> <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>
- ------------------------------ ---------------------------------- ----------------------- -------------------------
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 24
Funds and Unified
c/o Unified Fund Services, Series Trust since
Inc. December 2002 and
431 N. Pennsylvania St. AmeriPrime Advisors
Indianapolis, IN 46204 Trust since November
2002
Year of Birth: 1950
- ------------------------------ ---------------------------------- ----------------------- -------------------------
</table>
<table>
<s> <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 term "Fund Complex" refers to AmeriPrime Funds, AmeriPrime Advisors Trust
and Unified Series Trust.
PROXY VOTING
A description of the policies and procedures that the Fund uses to
determine how to vote proxies relating to portfolio securities is available
without charge, upon request: (1) by calling the Fund at (877) 272-9746; (2) on
the Fund's website at www.nashcap.com; and (3) on the SEC's website at
www.sec.gov.
<page>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
Monteagle Fixed Income Fund
Monteagle Opportunity Growth Fund
Monteagle Value Fund
Monteagle Large Cap Fund
(series' of AmeriPrime Advisors Trust)
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the Monteagle Funds (comprising,
respectively, the Monteagle Fixed Income Fund, Monteagle Opportunity Growth
Fund, Monteagle Value Fund and Monteagle Large Cap Fund), as of August 31, 2003,
and the related statements 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 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 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 held as of August 31, 2003 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 Fixed Income Fund, Monteagle Opportunity Growth Fund, Monteagle
Value Fund and Monteagle Large Cap Fund as of August 31, 2003, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and their financial highlights
for each of the periods indicated 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
September 11, 2003
<page>
Item 2. Code of Ethics.
(a) As of the end of the period covered by this report, the registrant has
adopted a code of ethics that applies to the registrant's principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party.
(b) For purposes of this item, "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in reports
and documents that a registrant files with, or submits to, the Commission and in
other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) Amendments:
During the period covered by the report, there have not been any amendments
to the provisions of the code of ethics.
(d) Waivers:
During the period covered by the report, the registrant has not granted any
express or implicit waivers from the provisions of the code of ethics.
Item 3. Audit Committee Financial Expert.
(a) The registrant's Board of Trustees has determined that the registrant
does not have an audit committee financial expert. The committee members and the
full Board considered the possibility of adding a member that would qualify as
an expert. The audit committee determined that, although none of its members
meet the technical definition of an audit committee financial expert, the
committee has sufficient financial expertise to adequately perform its duties
under the Audit Committee Charter without the addition of a qualified expert.
Item 4. Principal Accountant Fees and Services. Not applicable
Item 5. Audit Committee of Listed Companies. Not applicable.
<page>
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.
Not applicable.
Item 8. Reserved.
Item 9. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of September 30, 2003, 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 control
over financial reporting that occurred during the registrant's last fiscal
half-year that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
Item 10. Exhibits.
(a)(1) Code is filed herewith.
(a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 10(b) of Form N-CSR is filed herewith.
<page>
SIGNATURES
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) Ameriprime Funds
By /s/ Timothy Ashburn
Timothy Ashburn, President
Date 10/29/03
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 /s/ Timothy Ashburn
Timothy Ashburn, President
Date 10/29/03
By /s/ Thomas G. Napurano
Thomas Napurano, Treasurer and Chief Financial Officer
Date 10/29/03