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 N. Pennsylvania Street , Indianapolis, IN 46204
(Address of principal executive offices) (Zip code)
Timothy Ashburn
Unified Fund Services, Inc.
431 N. 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: 12/31
Date of reporting period: 12/31/03
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.
===============================================================================
Institutional Short-Term Government Bond Fund (The Core Fund)
===============================================================================
Annual Report
December 31, 2003
Fund Advisor:
Wertz York Capital Management Group, LLC
3434 Colwell Ave, Suite 100
Tampa, FL 33614
Toll Free: 877-411-1167
Management Discussion and Analysis
Investment Results - Fiscal Year Ended December 31, 2003
As indicated by the following chart, the Institutional Short-Term Government
Bond Fund (the Fund) slightly underperformed the 1-Year Constant Maturity
Treasury Index (the Index) in fiscal year 2003. The primary reason for
underperforming the Index was the historically sharp sell-off of Treasury and
Government Agency bonds during the third-quarter which adversely affected the
barbell strategy in place.
A barbell portfolio strategy combines short-term investments with longer-term
investments to construct an overall desired portfolio duration. When bond yields
rise, the value of the longer-term bonds may decline, but typically this is
offset by a higher reinvestment rate for cash and cash equivalents investments.
During the third-quarter, the yields on two to five-year bonds increased
dramatically. However, the yields on money market instruments did not rise. The
result was capital losses on longer-term holdings while the reinvestment rate
and interest on money market instruments were not high enough to offset those
losses. The barbell strategy did not function as expected.
However, we are pleased with the overall results of the Fund. In a year of great
uncertainty, and extreme volatility in the bond market, the Fund's return was
positive and NAV stability was restored after a small degree of fluctuation
during the third quarter.
Our outlook for 2004 is cautious. The 2003 third and fourth quarter economic
data reflected a growing economy. However, the data also revealed that inflation
is not a current economic threat. Inflation remains in check in the overall
economy and it is our opinion that this will continue for all of 2004. Until
there are signs that inflation ramps up in the economy, the Federal Reserve is
likely to hold interest rates steady. While it is impossible to predict the
actions of the Federal Reserve with certainty, it is our position that rates
will remain unchanged for at least the first three quarters of 2004.
The overall performance of the Fund will be impacted considerably by Federal
Reserve policy. Although our expectations are for the Federal Reserve to keep
interest rates on hold until the late 2004 or early 2005, there are likely to be
several interest rate shocks preceding an actual Federal Reserve interest rate
hike as expectations mount. Moving into 2004, we have positioned the Fund and
will continue to position the Fund to react favorably to interest rate shocks.
By utilizing a combination of "cushion" bonds, floating rate notes, seasoned
balloon mortgage securities and cash investment, we anticipate a year of
stability and attractive yields for the Fund's shareholders.
-----------------------------------------------------------------------------------------------------
Nominal Rates of Return
------------------------------------------------------------------------------------------------------
Time Period 1-YR CMT Core Fund
---------------------------------- ---------------------------------- --------------------------------
---------------------------------- ---------------------------------- --------------------------------
1 Year (2003) 1.24% 1.03%
---------------------------------- ---------------------------------- --------------------------------
---------------------------------- ---------------------------------- --------------------------------
Inception-to-Date 3.27% 3.57%
(January 9, 2002 through
December 31, 2003)
---------------------------------- ---------------------------------- --------------------------------
GROWTH OF $250,000 INVESTMENT
(2003)
1-Year Constant Institutional
Maturity Treasury Short-Term
Index($253,093) Government)
Bond Fund
($252,562)
January $ 250,282 $ 250,320
February $ 250,551 $ 250,956
March $ 250,808 $ 251,431
April $ 251,071 $ 251,939
May $ 251,315 $ 252,357
June $ 251,525 $ 252,735
July $ 251,757 $ 251,110
August $ 252,028 $ 250,985
September $ 252,285 $ 252,915
October $ 252,544 $ 252,325
November $ 252,821 $ 252,209
December $ 253,093 $ 252,562
*This chart shows the value of a hypothetical initial investment of $250,000 in
the Fund and the 1-Year Constant Maturity Treasury Index on January 1, 2003 and
held through December 31, 2003. The 1-Year Constant Maturity Treasury Index is
an unmanaged index of US Treasury bonds. Performance figures reflect the change
in value of the bonds in the index and reinvestment of dividends. The index
returns do not reflect expenses, which have been deducted from the Fund's
return. The returns shown do not reflect deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares. THE FUND'S
RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
GROWTH OF $250,000
(INCEPTION-TO-DATE)
1-Year Constant Institutional
Maturity Treasury Short-Term
Index($258,174) Government Bond
Fund ($258,914)
Jan-02 $ 250,446 $ 250,000
Feb-02 $ 250,906 $ 250,000
Mar-02 $ 251,437 $ 249,570
Apr-02 $ 251,951 $ 250,756
May-02 $ 252,439 $ 251,695
Jun-02 $ 252,898 $ 252,175
Jul-02 $ 253,307 $ 252,890
Aug-02 $ 253,676 $ 253,730
Sep-02 $ 254,036 $ 254,344
Oct-02 $ 254,383 $ 255,005
Nov-02 $ 254,697 $ 255,156
Dec-02 $ 255,003 $ 256,291
Jan-03 $ 255,290 $ 256,619
Feb-03 $ 255,565 $ 257,272
Mar-03 $ 255,827 $ 257,761
Apr-03 $ 256,096 $ 258,285
May-03 $ 256,347 $ 258,716
Jun-03 $ 256,561 $ 259,107
Jul-03 $ 256,799 $ 257,423
Aug-03 $ 257,078 $ 257,294
Sep-03 $ 257,342 $ 259,281
Oct-03 $ 257,608 $ 258,669
Nov-03 $ 257,894 $ 258,549
Dec-03 $ 258,174 $ 258,914
*This chart shows the value of a hypothetical initial investment of $250,000 in
the Fund and the 1-Year Constant Maturity Treasury Index on January 9, 2002
(Fund inception) and held through December 31, 2003. The 1-Year Constant
Maturity Treasury Index is an unmanaged index of US Treasury bonds. Performance
figures reflect the change in value of the bonds in the index and reinvestment
of dividends. The index returns do not reflect expenses, which have been
deducted from the Fund's return. The returns shown do not reflect deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE
OF FUTURE RESULTS.
For a prospectus and more information, including charges and expenses call
1-877-411-1167. The prospectus should be read carefully before investing. The
Fund is distributed by Unified Financial Securities, Inc.
Institutional Short-Term Government Bond Fund (The Core Fund)
Schedule of Investments
December 31, 2003
Principal
Amount Value
--------------- -------------------
Municipal Bonds - 10.27%
Municipal Electric Authority of Georgia, 1.19%, 1/1/2020 (a) $ 6,000,000 $ 6,000,000
New York General Obligations Bond, 1.15%, 3/15/2029 (a) 10,500,000 10,500,000
-------------------
TOTAL MUNICIPAL BONDS (Cost $16,500,000) 16,500,000
-------------------
U.S. Government Agency Obligations - 79.28%
Federal Home Loan Mortgage Corp - 16.24%
5.000%, 7/30/2009 4,800,000 4,894,267
Pool #C90580, 6.000%, 9/1/2022 1,103,514 1,146,670
Pool #M80692, 6.500%, 7/1/2008 346,912 356,557
Pool #M80718, 5.000%, 1/1/2009 744,543 764,022
Pool #M80739, 6.000%, 3/1/2009 524,904 538,985
Pool #M80753, 6.500%, 5/1/2009 481,935 495,365
Pool #M80765, 5.000%, 8/1/2009 439,709 451,213
Pool #M80828, 4.000%, 7/1/2010 971,636 977,736
Pool #M90727, 6.000%, 5/1/2007 215,208 221,441
Pool #M90747, 5.500%, 8/1/2007 534,751 550,677
Pool #M90779, 5.500%, 11/1/2007 1,831,865 1,886,422
Pool #M90818, 4.000%, 6/1/2008 903,309 919,988
Pool #M90819, 4.500%, 6/1/2008 883,508 906,375
Pool #M90828, 3.500%, 7/1/2008 954,528 959,287
Pool #M90836, 5.000%, 6/1/2008 1,549,705 1,598,789
Series 2494, 6.000%, 4/15/2026 550,890 553,600
Series 2541, 4.500%, 3/15/2032 2,000,000 1,981,392
Series 2558, 5.000%, 5/15/2011 546,940 556,285
Series 2705, 4.500%, 2/15/2023 1,986,825 2,052,247
Series 2712, 4.500%, 2/15/2012 1,979,056 2,037,692
Series MTN, 2.050%, 11/25/2005 238,000 238,503
Series MTN3, 3.050%, 4/16/2007 2,000,000 2,008,808
------------------
26,096,321
------------------
Federal Home Loan Bank - 56.08%
2.150%, 9/30/2005 5,000,000 5,007,135
2.250%, 12/16/2005 4,000,000 4,001,672
2.500%, 7/16/2008 10,000,000 9,880,000
2.530%, 1/24/2007 3,000,000 2,982,060
2.750%, 3/30/2006 2,000,000 2,007,246
3.400%, 7/30/2008 2,000,000 1,992,028
4.000%, 12/29/2006 5,000,000 5,041,690
Series 2105, 1.810%, 5/12/2005 3,000,000 3,005,241
Series 3T08, 2.375%, 12/19/2008 4,300,000 4,295,700
Series A 08, 6.050%, 9/29/2008 (a) 1,000,000 1,065,943
Series AN06, 2.250%, 6/19/2006 2,000,000 1,996,076
Series B606, 1.870%, 9/18/2006 (a) 5,000,000 5,000,160
Series C 05, 8.340%, 8/26/2005 (a) 500,000 528,418
Series CV06, 2.320%, 12/26/2006 3,500,000 3,463,383
Series DF06, 2.310%, 12/22/2006 (a) 20,000,000 19,820,000
See accompanying notes which are an integral part of the financial statements.
Institutional Short-Term Government Bond Fund (The Core Fund)
Schedule of Investments - continued
December 31, 2003
Principal
U.S. Government Agency Obligations - 79.28% - continued Amount Value
--------------- -------------------
Federal Home Loan Bank - 56.08% - continued
Series G609, 4.000%, 2/20/2009 $ 2,000,000 2,006,782
Series Q808, 2.250%, 2/25/2008 6,000,000 6,010,848
Series V305, 1.585%, 4/27/2005 2,000,000 2,000,562
Series XB06, 2.500%, 7/28/2006 2,000,000 2,001,388
Series XE06, 2.050%, 1/27/2006 3,000,000 3,000,798
Series YG06, 2.450%, 4/28/2006 3,000,000 3,002,535
Series YK06, 2.220%, 1/30/2006 2,000,000 2,001,546
------------------
90,111,211
------------------
Federal National Mortgage Association - 6.96%
2.260%, 4/20/2006 2,000,000 $ 2,004,146
Pool #190609, 7.000%, 2/1/2014 600,161 639,873
Pool #252268, 5.500%, 1/1/2009 925,001 963,401
Pool #254506, 5.000%, 10/1/2012 1,311,304 1,355,969
Pool #254566, 4.500%, 11/1/2009 1,408,774 1,430,346
Pool #254586, 5.000%, 1/1/2013 372,719 385,414
Pool #254663, 5.000%, 2/1/2013 1,967,031 2,022,301
Pool #681788, 3.934%, 1/1/2033 2,245,842 2,272,219
Series 2002-57, 5.500%, 11/25/2013 116,910 117,590
------------------
11,191,259
------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $127,539,251) $ 127,398,791
------------------
Money Market Securities - 10.12%
One Group Institutional Prime Money Market, 0.98% (a) 16,255,561 $ 16,255,561
-------------------
TOTAL MONEY MARKET SECURITIES - 99.67% (Cost $16,255,561) 16,255,561
-------------------
TOTAL INVESTMENTS - 99.67% (Cost $160,294,812) $ 160,154,352
-------------------
Assets in excess of other liabilities - 0.33% 529,610
-------------------
TOTAL NET ASSETS - 100.00% $ 160,683,962
===================
(a) Variable rate security; the coupon rate shown represents the rate at
December 31, 2003.
See accompanying notes which are an integral part of the financial statements.
Institutional Short-Term Government Bond Fund (The Core Fund)
Statement of Assets and Liabilities
December 31, 2003
Assets
Investments in securities, at value (cost $160,294,812) $ 160,154,352
Interest receivable 616,220
----------------
Total assets 160,770,572
----------------
Liabilities
Accrued advisory fees 63,132
Distribution payable 21,913
Accrued expenses 1,565
------------------
Total liabilities 86,610
------------------
Net Assets $ 160,683,962
==================
Net Assets consist of:
Capital stock and paid in capital 161,951,817
Accumulated net realized gain (loss) on investments (1,127,395)
Net unrealized appreciation (depreciation) on investments (140,460)
------------------
Net Assets, $ 160,683,962
==================
Net Assets Value
Net Assets
Offering price and redemption price per share ($160,683,962 / 16,242,660 shares outstanding) $ 9.89
==================
See accompanying notes which are an integral part of the financial statements.
Institutional Short-Term Government Bond Fund (The Core Fund)
Statement of Operations
Year ended December 31, 2003
Investment Income
Interest income $ 2,809,049
------------------
Total Income 2,809,049
------------------
Expenses
Investment adviser fee 1,089,009
Trustee expenses 2,044
------------------
Total Expenses 1,091,053
Reimbursed expenses (a) (483,154)
------------------
Total operating expenses 607,899
------------------
Net Investment Income (Loss) 2,201,150
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (1,004,466)
Change in net unrealized appreciation (depreciation)
on investment securities (343,780)
------------------
Net realized and unrealized gain (loss) on investment securities (1,348,246)
------------------
Net increase (decrease) in net assets resulting from operations $ 852,904
==================
(a) See note 3 to the financial statements.
See accompanying notes which are an integral part of the financial statements.
Institutional Short-Term Government Bond Fund (The Core Fund)
Statements of Changes In Net Assets
Year ended Period ended
Increase (Decrease) in Net Assets December 31, 2003 December 31, 2002 (a)
------------------- -------------------
Operations
Net investment income (loss) $ 2,201,150 $ 1,328,008
Net realized gain (loss) on investment securities (1,004,466) (122,929)
Change in net unrealized appreciation (depreciation) (343,780) 203,320
------------------- -------------------
Net increase (decrease) in net assets resulting from operations 852,904 1,408,399
------------------- -------------------
Distributions
From net investment income (2,204,943) (1,329,784)
From net realized gain - -
------------------- -------------------
Total distributions (2,204,943) (1,329,784)
------------------- -------------------
Capital Share Transactions
Proceeds from shares sold 178,610,000 98,238,029
Reinvestment of distributions 1,925,989 1,098,140
Amount paid for shares repurchased (78,347,937) (39,566,835)
------------------- -------------------
Net increase (decrease) in net assets resulting
from share transactions 102,188,052 59,769,334
------------------- -------------------
Total Increase (Decrease) in Net Assets 100,836,013 59,847,949
------------------- -------------------
Net Assets
Beginning of period 59,847,949 -
------------------- -------------------
End of period [including accumulated net
investment income (loss) of $0 and $0, respectively] $ 160,683,962 $ 59,847,949
=================== ===================
Capital Share Transactions
Shares sold 17,947,674 9,837,397
Shares issued in reinvestment of distributions 193,759 110,014
Shares repurchased (7,885,070) (3,961,113)
------------------- -------------------
Net increase (decrease) from capital transactions 10,256,363 5,986,298
=================== ===================
(a) For the period January 9, 2002 (commencement of operations) through December 31, 2002.
See accompanying notes which are an integral part of the financial statements.
Institutional Short-Term Government Bond Fund (The Core Fund)
Financial Highlights
Year ended Period ended
December 31, 2003 December 31, 2002 (a)
-------------------- --------------------
Selected Per Share Data
Net asset value, beginning of period $ 10.00 $ 10.00
-------------------- --------------------
Income from investment operations
Net investment income (loss) 0.20 0.25
Net realized and unrealized gain (loss) (0.10) -
-------------------- --------------------
Total from investment operations 0.10 0.25
-------------------- --------------------
Less Distributions to shareholders:
From net investment income (0.21) (0.25)
From net realized gain - -
-------------------- --------------------
Total distributions (0.21) (0.25)
-------------------- --------------------
Net asset value, end of period $ 9.89 $ 10.00
==================== ====================
Total Return 1.03% 2.52% (b)
Ratios and Supplemental Data
Net assets, end of period (000) 160,684 $ 59,848
Ratio of expenses to average net assets 0.56% 0.60% (c)
Ratio of expenses to average net assets
before waiver & reimbursement 1.00% 1.00% (c)
Ratio of net investment income to
average net assets 2.02% 2.57% (c)
Ratio of net investment income to
average net assets before waiver & reimbursement 1.58% 2.17% (c)
Portfolio turnover rate 194.53% 241.11%
(a) For the period January 9, 2002 (commencement of operations) to December 31, 2002.
(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.
Institutional Short-Term Government Bond Fund (The Core Fund)
Notes to Financial Statements
December 31, 2003
NOTE 1. ORGANIZATION
Institutional Short-Term Government Bond Fund (The Core Fund) (the "Fund") was
organized as a diversified series of the AmeriPrime Advisors Trust (the
"Trust") on September 20, 2001 and commenced operations on January 9, 2002. On
March 11, 2003, the Institutional Short-Term Government Bond Fund changed its
name to the Institutional Short-Term Government Bond Fund (The Core Fund). The
Trust is a registered 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 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 a high level of income over the long-term consistent with the preservation
of capital. The Fund's adviser is Wertz York Capital Management Group, L.L.C.
(the "Adviser").
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.
Security Valuation - 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 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
Adviser 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 Adviser, 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 continue to qualify each year as a "regulated investment company"
under subchapter 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.
Dividends and Distributions- The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on a monthly
basis and are recorded on the ex-dividend date. 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
primarily 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.
Institutional Short-Term Government Bond Fund (The Core Fund)
Notes to Financial Statements
December 31, 2003 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund's investment adviser is Wertz York Capital Management Group, L.L.C.
Under the terms of the management agreement, (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board of Trustees
and pays all of the expenses of the 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
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 Adviser a fee at the annual rate of 1.00% 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 Adviser. For the
fiscal year ended December 31, 2003 the Adviser earned a fee of $1,089,009
from the Fund. For the period January 1, 2003 through July 31, 2003, the
period August 1, 2003 through September 30, 2003, and the period October 1,
2003 through December 31, 2003, the Adviser voluntarily waived 0.40%, 0.45%,
and 0.50%, respectively, of the management fee. For the fiscal year ended
December 31, 2003, the Adviser waived $483,154 or 0.44% of management fees. At
December 31, 2003, the Fund owed the adviser $63,132 for its advisory services.
The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned
subsidiary of Unified Financial Services, Inc., to manage the Fund's business
affairs and provide the Fund with administrative services, fund accounting and
transfer agency services, including all regulatory reporting and necessary
office equipment and personnel. The Adviser 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.
Unified Financial Securities, Inc. (the "Distributor") acts as the principal
distributor of the Fund's shares. There were no payments made by the Fund to
the Distributor during the fiscal year ended December 31, 2003. A Trustee and
certain officers of the Trust are a director and/or officers 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.
NOTE 4. INVESTMENTS
For the fiscal year ended December 31, 2003, purchases and sales of investment
securities, other than short-term investments and U.S. government obligations
were as follows:
Amount
------------------
Purchases
U.S. Government Obligations $ 260,613,293
Other 17,046,406
Sales
U.S. Government Obligations $ 181,351,035
Other 561,119
As of December 31, 2003, the net unrealized appreciation of investments for tax
purposes was as follows:
Amount
---------------
Gross Appreciation $ 207,508
Gross (Depreciation) (347,968)
---------------
Net Depreciation
on Investments $ (140,460)
===============
At December 31, 2003, the aggregate cost of securities for federal income tax
purposes was $160,294,812.
Institutional Short-Term Government Bond Fund (The Core Fund)
Notes to Financial Statements
December 31, 2003 - continued
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 period. Actual results could differ from those estimates.
NOTE 6. RELATED PARTY TRANSACTIONS
The beneficial ownership, either directly or indirectly, of 25% or more 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 December 31, 2003,
no shareholder held over 25% of the Fund's shares.
NOTE 7. CAPITAL LOSS CARRYFORWARDS
At December 31, 2003, the Fund had available for federal income tax purposes an
unused capital loss carryforward of $848,930, which is available for offset
against future taxable net capital gains. The loss carryforwards expire as
follow:
Year of Expiration Amount
------------------------- ---------------
2010 $ 122,929
2011 726,001
To the extent this loss carryforward is used to offset future capital gains, it
is probable that the amount offset will not be distributed to shareholders.
NOTE 8. DISTRIBUTIONS TO SHAREHOLDERS
The Fund paid monthly distributions of net investment income totaling $0.2124
per share for the fiscal year ended December 31, 2003.
The tax character of distributions paid in 2003 and 2002 was as follows:
2003 2002
Distributions paid from:
Ordinary Income $ 2,204,943 $ 1,329,784
Short-term Capital Gain - -
Long-Term Capital Gain - -
--------------- ----------------
$ 2,204,943 $ 1,329,784
=============== ================
As of December 31, 2003, the components of distributable earnings / (accumulated
losses) on a tax basis were as follows:
Undistributed ordinary income/(accumulated losses) $ -
Undistributed long-term capital gain/(accumulated losses) (848,930)
Unrealized appreciation/(depreciation) (418,925)
--------------
$(1,267,855)
===============
The difference between book basis and tax basis unrealized appreciation /
(depreciation) is attributable to the tax deferral of post-October losses.
INDEPENDENT AUDITOR'S REPORT
----------------------------
To The Shareholders and
Board of Trustees
Institutional Short-Term Government Bond Fund (The Core Fund)
(a series of AmeriPrime Advisor Trust)
We have audited the accompanying statement of assets and liabilities of
Institutional Short-Term Government Bond Fund, including the schedule of
investments, as of December 31, 2003, and the related statement of operations
for the year then ended, the statements of changes in net assets for the year
then ended and for the period from January 9, 2002 (commencement of operations)
to December 31, 2002, and the financial highlights for the periods indicated.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our 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 December 31, 2003 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our 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 position of
Institutional Short-Term Government Bond Fund as of December 31, 2003, the
results of its operations for the year then ended, the changes in its net assets
for the year then ended and for the period from January 9, 2002 (commencement of
operations) to December 31, 2002, and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America.
/s/
_______________________________
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
January 22, 2004
Trustees and Officers (Unaudited)
Independent Trustees
- ----------------------------------------------------- ----------------------------------------------------------------
Name, Address*, (Date of Birth), Position with Fund Principal Occupation During Past 5 Years and Other
Complex,** Term of Position with Trust Directorships
- ----------------------------------------------------- ----------------------------------------------------------------
- ----------------------------------------------------- ----------------------------------------------------------------
Gary E. Hippenstiel (1947) Director, Vice President and Chief Investment Officer of
Legacy Trust Company, N.A. since 1992. Trustee of AmeriPrime
Trustee, July 2002 to present Funds since 1995 and Unified Series Trust since December
2002. Trustee of CCMI Funds since June 2003.
- ----------------------------------------------------- ----------------------------------------------------------------
- ----------------------------------------------------- ----------------------------------------------------------------
Stephen A. Little (1946) President and founder, The Rose, Inc., a registered investment
advisor, since April 1993. Trustee of AmeriPrime Funds and
Trustee, November 2002 to present Unified Series Trust since December 2002. Trustee of CCMI
Funds since June 2003.
- ----------------------------------------------------- ----------------------------------------------------------------
- ----------------------------------------------------- ----------------------------------------------------------------
Daniel J. Condon (1950) Vice President and General Manager, International Crankshaft
Inc., an automotive equipment manufacturing company, 1990 to
Trustee, November 2002 to present present; Trustee, The Unified Funds, from 1994 to 2002;
Trustee, Star Select Funds, a REIT mutual fund, from 1997 to
2000. Trustee of AmeriPrime Funds and Unified Series Trust
since December 2002. Trustee of CCMI Funds since June 2003.
- ----------------------------------------------------- ----------------------------------------------------------------
Interested Trustees and Principal Officers
- ------------------------------------------------ ---------------------------------------------------------------------
Name, (Date of Birth), Position with Fund Principal Occupation During Past 5 Years
Complex,** Term of Position with Trust and Other Directorships
- ------------------------------------------------ ---------------------------------------------------------------------
- ------------------------------------------------ ---------------------------------------------------------------------
Timothy L. Ashburn (1950)*** Chairman of Unified Financial Services, Inc. since 1989, Chief
Executive Officer from 1989 to 1992 and 1994 to April 2002, and
Chairman, President, November 2002 to present President from November 1997 to April 2000. Trustee of AmeriPrime
and Asst. Secretary, December 2003 to present Funds and Unified Series Trust since October 2002. Trustee of CCMI
Funds since June 2003.
- ------------------------------------------------ ---------------------------------------------------------------------
- ------------------------------------------------ ---------------------------------------------------------------------
Ronald C. Tritschler (1952)**** Chief Executive Officer, Director and legal counsel of The Webb
Companies, a national real estate company, from 2001 to present;
Trustee, November 2002 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.
Trustee of AmeriPrime Funds and Unified Series Trust since December
2002. Trustee of CCMI Funds since June 2003.
- ------------------------------------------------ ---------------------------------------------------------------------
- ------------------------------------------------ ---------------------------------------------------------------------
Thomas G. Napurano (1941) Chief Financial Officer and Executive Vice President of Unified
Financial Services, Inc., the parent company of the Trust's
Chief Financial Officer and Treasurer, October administrator and Distributor; Director, Unified Financial
2002 to present Services, Inc., from 1989 to March 2002. CFO of AmeriPrime Funds
since October 2002 and Unified Series Trust since December 2002.
CFO of CCMI Funds since June 2003.
- ------------------------------------------------ ---------------------------------------------------------------------
- ------------------------------------------------ ---------------------------------------------------------------------
Carol Highsmith (1964) Employed by Unified Fund Services, Inc. (November 1994 to present).
Secretary of AmeriPrime Funds and Unified Series Trust since
Secretary, December 2003 to present December 2003.
- ------------------------------------------------ ---------------------------------------------------------------------
* The address for each of the trustees and officers is 431 N. Pennslyvania, Indianapolis, IN 46204.
** Fund Complex refers to AmeriPrime Advisors Trust, AmeriPrime Funds and Unified Series Trust. The Fund
Complex consists of 29 series.
*** 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 Distributor of certain series in the Fund Complex.
**** 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 Distributor of certain series in the Fund Complex.
The Fund's Statement of Additional Information ("SAI") includes additional
information about the trustees and is available, without charge, upon request.
You may call toll-free (877) 411-1167 to request a copy of the SAI or to make
shareholder inquiries.
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 by calling the Fund at (877) 411-1167.
TRUSTEES
Timothy L. Ashburn, Chairman
Gary E. Hippenstiel
Stephen A. Little
Daniel J. Condon
Ronald C. Tritschler
OFFICERS
Timothy L. Ashburn, President and Asst. Secretary
Thomas G. Napurano, Chief Financial Officer and Treasurer
Carol J. Highsmith, Secretary
INVESTMENT ADVISOR
Wertz York Capital Management Group, LLC.
3434 Colwell Ave, Suite 100
Tampa, FL 33614
DISTRIBUTOR
Unified Financial Securities, Inc.
431 N. Pennsylvania Street
Indianapolis, Indiana 46204
INDEPENDENT ACCOUNTANTS
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd.
Westlake, OH 44145
LEGAL COUNSEL
Thompson Hine, LLP
312 Walnut St., Suite 1400
Cincinnati, OH 45202
CUSTODIAN
Huntington National Bank
41 South Street
Columbus, OH 43125
ADMINISTRATOR, TRANSFER AGENT
AND FUND ACCOUNTANT
Unified Fund Services, Inc.
431 N. Pennsylvania Street
Indianapolis, Indiana 46204
This report is intended only for the information of shareholders or those who
have received the Fund's prospectus which contains information about the Fund's
management fee and expenses. Please read the prospectus carefully before
investing.
Distributed by Unified Financial Securities, Inc.
Member NASD/SIPC
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.
(a) Audit Fees
FY 2003 $ 14,687
FY 2002 $ 10,903
(b) Audit-Related Fees
Registrant Adviser
FY 2003 $ 0 $ 0
FY 2002 $ 0 $ 0
Nature of the fees:
(c) Tax Fees
Registrant Adviser
FY 2003 $ 650 $ 0
FY 2002 $ 550 $ 0
Nature of the fees: preparation of tax return considered non-audit
(d) All Other Fees
Registrant Adviser
FY 2003 $ 0 $ 0
FY 2002 $ 0 $ 0
Nature of the fees:
(e) (1) Audit Committee's Pre-Approval Policies
To be responsible for the selection, retention or termination of auditors and,
in connection therewith, to (i) evaluate the proposed fees and other
compensation, if any, to be paid to the auditors, (ii) evaluate the independence
of the auditors, (iii) pre-approve all audit services and, when appropriate, any
non-audit services1 provided by the independent auditors to the Trust, (iv)
pre-approve, when appropriate, any non-audit services provided by the
independent auditors to the Trust's investment adviser,2 or any entity
controlling, controlled by, or under common control with the investment adviser
and that provides ongoing services to the Trust if the engagement relates
directly to the operations and financial reporting of the Trust, and (v) receive
the auditors' specific representations as to their independence;
(2) Percentages of Services Approved by the Audit Committee
Registrant Adviser
Audit-Related Fees: 0 % N/A %
Tax Fees: 100 % N/A %
All Other Fees: 0 % N/A %
(f) During audit of registrant's financial statements for the most recent
fiscal year, less than 50 percent of the hours expended on the principal
accountant's engagement were attributed to work performed by persons other
than the principal accountant's full-time, permanent employees.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services to the
registrant:
Registrant Adviser
FY 2003 $ 0 $ 0
FY 2002 $ 0 $ 0
(h) N/A - All non-audit services were pre-approved.
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. Purchases of Equity Securities by Closed-End Funds. Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders. Not applicable.
Item 10. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of January 9, 2004, 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 11. Exhibits.
(a)(1) Code is filed herewith.
(a)(2) Certifications by the registrant's principal executive officer
and principal financial officer, pursuant to Section 302 of the
Sarbanes- Oxley Act of 2002 and required by Rule 30a-2under the
Investment Company Act of 1940 are filed herewith.
(a)(3) Not applicable.
(b) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 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 Advisors Trust
By
/s/ Timothy Ashburn
Timothy Ashburn, President
Date March 10, 2004
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 March 10, 2004
By (Signature and Title)
/s/ Thomas G. Napurano
Thomas G. Napurano, Treasurer and Chief Financial Officer
Date February 26, 2004