<page>
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 N. Pennsylvania St. Indianapolis, IN 46204
- -------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Timothy Ashburn
Unified Fund Services, Inc.
431 N. Pennsylvania St.
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: 3/31
----------
Date of reporting period: 09/30/03
----------
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. ss. 3507.
<page>
Item 1. Reports to Stockholders.
=======================================================
Columbia Partners Equity Fund
=======================================================
Semi-Annual Report
September 30, 2003
Fund Advisor:
Columbia Partners, L.L.C.
1775 Pennsylvania Ave., N.W.
Washington, D.C. 20006
Toll Free: (888) 696-2733
<page>
Columbia Partners Equity Fund
Schedule of Investments in Securities
September 30, 2003 (Unaudited)
<table>
<s> <c> <c>
Number of Market
COMMON STOCKS - 86.40% Shares Value
------------- ----------------
Air Transportation, Scheduled - 1.55%
Northwest Airlines Co Class - A (a) 23,440 $ 227,368
----------------
Beverages - 1.06%
Coca-Cola Co. 3,610 155,086
----------------
Cable & Other Pay Television Services - 1.28%
TIVO, Inc. (a) 25,220 186,880
----------------
Communication Equipment - 4.94%
McDATA Corp. (a) 26,990 318,212
UTStarcom, Inc. (a) 12,755 405,736
----------------
723,948
----------------
Communication Services - 1.51%
XM Satellite Radio Holdings, Inc. - Class A (a) 14,050 220,866
----------------
Computer Communication Equipment - 1.09%
Enterasys Networks, Inc. (a) 40,020 160,080
----------------
Computer Storage Devices - 3.30%
Advanced Digital Information Corp. (a) 24,580 344,612
EMC Corp. (a) 11,040 139,435
----------------
484,047
----------------
Computers & Office Equipment - 1.47%
Hewlett-Packard Co. 5,935 114,902
International Business Machines Corp. 1,140 100,696
----------------
215,598
----------------
Crude Petroleum & Natural Gas - 1.38%
Ultra Petroleum Corp. (a) 14,445 201,508
----------------
Drilling Oil & Gas Wells - 2.03%
Nabors Industries, Inc. (a) 7,985 297,521
----------------
Electronic & Other Electrical Equipment (No Computer Equipment) - 1.55%
General Electric Co. 7,635 227,599
----------------
Federal & Federally - Sponsored Credit Agencies - 0.81%
Fannie Mae 1,685 118,287
----------------
Food & Kindred Products - 0.63%
Kraft Foods, Inc. 3,135 92,482
----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Schedule of Investments in Securities
September 30, 2003 (Unaudited)
<table>
<s> <c> <c>
Number of Market
COMMON STOCKS - 86.40% - continued Shares Value
------------- ----------------
Hospital & Medical Service Plans - 2.22%
Mid Atlantic Medical Services Inc (a) 6,335 325,809
----------------
Laboratory Analytical Instruments - 2.10%
Cytyc Corp. (a) 20,415 307,042
----------------
Local & Suburban Transit & Interurban Hwy Passenger Trains - 1.75%
Laidlaw International, Inc. (a) 26,075 256,839
----------------
Miscellaneous Shopping Goods Stores - 1.70%
Office Depot, Inc. 17,735 249,177
----------------
Mortgage Bankers & Loan Correspondents - 1.56%
E-Loan, Inc. (a) 62,855 228,164
----------------
National Commercial Banks - 5.81%
Citigroup, Inc. 3,369 153,323
Hibernia Corporation 12,415 251,528
MBNA Corp. 5,710 130,188
Providian Financial Corp. (a) 18,120 213,635
Wells Fargo & Co. 1,995 102,742
----------------
851,416
----------------
Operative Builders - 1.96%
Meritage Corp (a) 6,080 287,280
----------------
Personal Credit Institutions - 0.72%
SLM Corp. 2,720 105,971
----------------
Petroleum Refining - 0.92%
Exxon Mobil Corp. 3,705 135,603
----------------
Pharmaceutical Preparations - 7.73%
Abbott Laboratories, Inc. 2,375 101,056
Barr Laboratories, Inc. (a) 3,800 259,198
Columbia Laboratories, Inc. (a) 17,595 212,548
Johnson & Johnson 1,760 87,155
Pfizer, Inc. 3,895 118,330
SICOR, Inc. (a) 12,800 246,784
Wyeth 2,325 107,182
----------------
1,132,253
----------------
Photographic Equipment & Supplies - 3.71%
Avid Technology Inc (a) 5,890 311,228
Lexar Media, Inc. (a) 13,665 232,852
----------------
544,080
----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Schedule of Investments in Securities
September 30, 2003 (Unaudited)
<table>
<s> <c> <c>
Number of Market
COMMON STOCKS - 86.40% - continued Shares Value
------------- ----------------
Primary Production of Aluminum - 0.76%
Alcoa, Inc. 4,275 111,834
----------------
Radiotelephone Communications - 2.08%
NEXTEL Communications, Inc. - Class A (a) 15,455 304,309
----------------
Retail - Apparel & Accessory Stores - 1.14%
Pacific Sunware of California, Inc. (a) 8,057 166,458
----------------
Retail - Family Clothing Stores - 1.75%
Abercrombie & Fitch Co. - Class A (a) 9,275 257,010
----------------
Retail - Lumber & Other Building Materials Dealers - 0.91%
Home Depot Inc. 4,180 133,133
----------------
Retail - Miscellaneous Shopping Goods Stores - 1.67%
Barnes & Noble, Inc. (a) 9,630 244,698
----------------
Retail - Variety Stores - 3.02%
Costco Wholesale Corp. (a) 4,985 154,934
Target Corp. 3,750 141,112
Wal-Mart Stores, Inc. 2,625 146,606
----------------
442,652
----------------
Savings Institution, Federally Chartered - 1.97%
Sovereign Bancorp, Inc. 15,585 289,102
----------------
Security Brokers, Dealers & Flotation Companies - 0.51%
Merrill Lynch & Co., Inc. 1,390 74,407
----------------
Semiconductors & Related Devices - 6.77%
Intel Corp. 6,555 180,328
Marvell Technology Group Ltd. (a) 8,285 312,759
Silicon Storage Technology, Inc. (a) 21,560 188,650
Skyworks Solutions (a) 23,440 213,304
Texas Instruments, Inc. 4,275 97,470
----------------
992,511
----------------
Services - Motion Picture & Video Tape Production - 0.87%
AOL Time Warner, Inc. 8,410 127,075
----------------
Services - Prepackaged Software - 1.35%
Microsoft Corp. 7,145 198,559
----------------
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Schedule of Investments in Securities
September 30, 2003 (Unaudited)
<table>
<s> <c> <c>
Number of Market
COMMON STOCKS - 86.40% - continued Shares Value
------------- ----------------
Surgical & Medical Instruments & Apparatus - 0.95%
Boston Scientific Corp. (a) 2,185 139,403
----------------
Telephone & Telegraph Apparatus - 3.65%
Polycom, Inc. (a) 19,640 326,220
Research, Inc. Motion Ltd.. (a) 5,445 207,999
----------------
534,219
----------------
Telephone Communications (No Radiotelephone) - 0.69%
SBC Communications, Inc. 4,515 100,459
----------------
Transportation Services - 3.64%
ebookers Plc. (c) 16,570 303,397
InteractiveCorp (a) 6,970 230,358
----------------
533,755
----------------
Wholesale - Professional & Commercial Equipment & Supplies - 1.89%
Advanced Medical Optics, Inc. (a) 15,385 276,315
----------------
TOTAL COMMON STOCKS (Cost $12,098,467) 12,660,803
----------------
Exchange Traded Funds - 10.14%
iShares Russell 2000 Index Fund 8,410 815,518
S & P 500 Depository Receipts 6,710 670,462
----------------
TOTAL EXCHANGE TRADED FUNDS (Cost $1,501,677) 1,485,980
----------------
Money Market Securities - 14.88%
Huntington Money Market Fund - Investment Shares, 0.25%, (Cost $2,180,320) (b) 2,180,320 2,180,320
----------------
TOTAL INVESTMENTS (Cost $15,780,464) - 111.42% $ 16,327,103
----------------
Liabilities in excess of cash and other assets - (11.42%) (1,673,066)
----------------
TOTAL NET ASSETS - 100.00% $ 14,654,037
================
</table>
(a) Non-income producing.
(b) Variable rate security; the coupon rate shown represents the rate at
September 30, 2003. (c) American Depository Receipts.
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Statement of Assets and Liabilities
September 30, 2003 (Unaudited)
ASSETS
Investments in securities, at value
(cost $15,780,464) (Note 2) $ 16,327,103
Dividends and interest receivable 3,578
Receivable for fund shares sold 34,460
Receivable for securities sold 441,398
-------------
Total Assets 16,806,539
-------------
LIABILITIES
Payable for Securities purchased 2,137,145
Accrued advisory fees 13,885
Accrued expenses and other liabilities 1,472
-------------
Total Liabilities 2,152,502
-------------
NET ASSETS
Net Assets for 1,689,159 shares $ 14,654,037
=============
Composition of net assets:
Paid in capital $ 20,948,924
Accumulated net investment income (loss) (46,238)
Accumulated net realized gain (loss) from investments (6,795,289)
Net unrealized appreciation (depreciation) on investments 546,640
-------------
$ 14,654,037
=============
Offering price and redemption price
per share ($14,654,037 / 1,689,159) $ 8.68
=============
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Statement of Operations
For the Six Months Ended September 30, 2003 (Unaudited)
Investment Income:
Dividends $ 36,686
Interest 1,167
-----------
Total investment income 37,853
-----------
Expenses:
Advisory fees (Note 3) 84,091
Trustee's fees 1,471
-----------
Total expenses 85,562
Reimbursed fees (Note 3) (1,471)
-----------
Net Expenses 84,091
-----------
Investment income - net (46,238)
-----------
Net Realized and Unrealized Losses
on Investments: (Note 2)
Net realized gain (loss) on securities transactions (28,562)
Net change in unrealized appreciation (depreciation)
on investments 3,276,070
-----------
Net realized and unrealized gain (loss) on investments 3,247,508
-----------
Net increase (decrease) in net assets resulting
from operations $ 3,201,270
============
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Statements of Changes in Net Assets
<table>
<s> <c> <c>
Six Months Year
Ended Ended
September 30, March 31,
2003 2003
(Unaudited)
---------------- ----------------
Operations:
Net investment income (loss) $ (46,238) $ (80,295)
Net realized gain (loss) from investment transactions (28,562) (2,321,862)
Net change in unrealized appreciation (depreciation)
on investments 3,276,070 (2,369,790)
Net increase (decrease) in net assets resulting
---------------- ----------------
from operations 3,201,270 (4,771,947)
---------------- ----------------
Fund Share Transactions:
Proceeds from shares sold 329,698 830,252
Amount paid for shares repurchased (1,091,524) (1,737,167)
---------------- ----------------
Net increase (decrease) in net assets resulting from
share transactions (Note 4) (761,826) (906,915)
---------------- ----------------
Net increase (decrease) in net assets 2,439,444 (5,678,862)
Net Assets, Beginning
of Period 12,214,593 17,893,455
---------------- ----------------
Net Assets, End of Period $ 14,654,037 $ 12,214,593
================ ================
Capital Share Transactions:
Shares sold 40,717 109,968
Shares reinvested -
Shares redeemed (134,734) (231,692)
---------------- ----------------
(94,017) (121,724)
================ ================
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
<table>
<s> <c> <c> <c> <c> <c>
Six Months Year Year Year Year
Ended Ended Ended Ended Ended
----------------------------------------------------------------- ------------
2003 (Unaudited) 2003 2002 2001 2000
-------------------- -------------- --------------- ------------ ------------
Net asset value, beginning of year $ 6.85 $ 9.39 $ 9.39 $ 17.16 $ 10.00
Income (loss) from investment
operations:
Net investment income (loss) (0.02) (0.04) (0.05) (0.05) (0.04)
Net gains or (losses) on securities
(both realized and unrealized) 1.85 (2.50) 0.05 (5.41) 7.59
-------------------- -------------- --------------- ------------ ------------
Total from investment operations 1.83 (2.54) - (5.46) 7.55
-------------------- -------------- --------------- ------------ ------------
Less distributions
Distributions (from capital gains) - - - (2.31) (0.39)
-------------------- -------------- --------------- ------------ ------------
Total dividend and distributions - - - (2.31) (0.39)
-------------------- -------------- --------------- ------------ ------------
Net asset value, end of year $ 8.68 $ 6.85 $ 9.39 $ 9.39 $ 17.16
==================== ============== =============== ============ ============
Total return 26.72% (27.05)% 0.00% (33.94)% 76.56%
Net assets, end of year (000) $ 14,654 $ 12,215 $ 17,893 $ 17,063 $ 24,040
Ratio of expenses to average net assets 1.20% 1.20% 1.20% 1.20% 1.20%
Ratio of expenses to average net assets
before waiver 1.22% 1.22% 1.21% 1.21% 1.22%
Ratio of net income (loss) to average
net assets (0.66)% (0.59)% (0.48)% (0.34)% (0.31)%
Ratio of net income (loss) to average
net assets before waiver (0.68)% (0.61)% (0.49)% (0.35)% (0.34)%
Portfolio Turnover Rate 99.18% 61.29% 102.94% 67.93% 215.08%
</table>
See accompanying notes which are an integral part of the financial statements.
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
September 30, 2003 (Unaudited)
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 an open-end
investment company 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 of the Trust (the "Board") 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.
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.
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.
Short-term investments in fixed income securities with maturities of less than
60 days when acquired, or which subsequently are within 60 days of maturity, are
valued by using the amortized cost method of valuation, which the Board has
determined will represent fair value.
Federal Income Taxes- There is no provision for federal income tax. The 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 distributing
substantially all of its net investment income and net realized capital gains.
Security Transactions and Related Income- 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.
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
September 30, 2003- continued (Unaudited)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
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 realized long term capital gains
and its net realized short term capital gains at least once a year. The
treatment for financial reporting purposes of distributions made to shareholders
during the year from net investment income or net realized capital gains may
differ from their ultimate treatment for federal income tax purposes. These
differences are caused by differences in the timing of the recognition of
certain components of income, expense or realized capital gain for federal
income tax purposes. Where such differences are permanent in nature, they are
reclassified in the components of the net assets based on their ultimate
characterization for federal income tax purposes. Any such reclassifications
will have no effect on net assets, results of operations or net asset values per
share of the Fund.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Investment Advisor of the Fund is Columbia Partners, L.L.C.
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 six
months ended September 30, 2003, the Advisor earned a fee of $84,091 from the
Fund. The Advisor contractually has agreed to reimburse fees and expenses of the
non-interested person trustees, but only to the extent necessary to maintain the
Fund's total operating expenses at 1.20% of net assets. For the six months ended
September 30, 2003, the Advisor reimbursed fees, except brokerage fees and
commissions, taxes, interest, fees and expenses of non-interested person
trustees and extraordinary expenses of $1,472.
The Trust 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 services, fund accounting,
and transfer agency 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 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 Fund retains Unified Financial Securities, Inc. (the "Distributor"), to act
as the principal distributor of shares. There were no payments made by the Fund
to the Distributor during the six months ended September 30, 2003. The Advisor
paid all fees of the Fund under the distribution agreement. A Trustee and
officers of the Trust are a director and/or officer, respectively, of the
Distributor and of Unified Financial Services, Inc. (the parent company of the
Distributor and Unified), and may be deemed to be affiliates of the Distributor.
<page>
Columbia Partners Equity Fund
Notes to Financial Statements
September 30, 2003- continued (Unaudited)
NOTE 4. INVESTMENT TRANSACTIONS
For the six months ended September 30, 2003, purchases and sales of investment
securities, other than short-term investments and U.S. government obligations,
aggregated $13,010,686 and $13,564,241, respectively. As of September 30, 2003,
the gross unrealized appreciation for all securities totaled $1,581,065 and the
gross unrealized depreciation for all securities totaled $1,034,425, for a net
unrealized appreciation of $546,640. At September 30, 2003, the aggregate cost
of securities for federal income tax purposes was $15,780,464.
NOTE 5. ESTIMATES
Preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America 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.
<page>
Item 2. Code of Ethics. N/A
Item 3. Audit Committee Financial Expert. N/A
Item 4. Principal Accountant Fees and Services. Not applicable
Item 5. Audit Committee of Listed Companies. Not applicable.
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) N/A
(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.
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 12/1/03
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 12/1/03
-------------------------------------
By /s/ Thomas G. Napurano
Thomas Napurano, Treasurer and Chief Financial Officer
Date 12/3/03
-------------------------------------