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
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AmeriPrime Funds
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
431 North Pennsylvania St. 46204
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(Address of principal executive offices) (Zip code)
Lynn Wood
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Unified Fund Services, Inc.
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431 N. Pennsylvania St.
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Indianapolis, IN 46204
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(Name and address of agent for service)
Registrant's telephone number, including area code: 317-917-7000
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Date of fiscal year end: 7/31
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Date of reporting period: 01/31/05
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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.
ITEM 1. REPORTS TO STOCKHOLDERS.
===================================================
DOBSON COVERED
CALL FUND
===================================================
SEMI-ANNUAL REPORT
(UNAUDITED)
JANUARY 31, 2005
FUND ADVISOR:
DOBSON CAPITAL MANAGEMENT, INC.
1422 S. VAN NESS STREET
SANTA ANA, CA 92707
TOLL FREE 877-2-DOBSON (877-236-2766)
March 1, 2005
Dear Fellow Shareholders:
We are pleased to present the semi-annual report of the Dobson Covered Call Fund
(DBCCX) as of January 31, 2005.
I would like to refer you to the management discussion and analysis that follows
for specific details about the Dobson Covered Call Fund performance, our
expectations for the future and other topics in the news regarding the Mutual
Fund Industry.
We welcome your comments and again thank you for investing with us.
Sincerely,
Charles L. Dobson
Portfolio Manager
The prospectus should be read carefully before investing. To request a
prospectus for more complete information, including charges and expenses, call
toll free 1-877-2-DOBSON OR 1-877-236-2766. Past performance does not guarantee
future results. Shares when redeemed may be worth more or less than their
original cost.
Distributed by Unified Financial Securities, Inc.,
431 North Pennsylvania Street
Indianapolis, IN 46204
Member NASD, SIPC.
1
MANAGEMENTS DISCUSSION OF FUND PERFORMANCE
For the 6 month period ended January 31, 2005 our Fund had a total return of
4.55% while the S&P 500 Index had a total return of 8.12%. From Inception (March
24, 1999) through January 31, 2005 our Fund's annualized return was 1.82%, while
the S&P 500 Index annualized return was 0.33%. Our Fund's standard deviation of
monthly returns from April 1, 1999 to January 31, 2005 was 3.33% and the S&P 500
standard deviation for the same period was 4.61%. Standard deviation is a
statistical term that measures the divergence of returns around the average
return. The lower this number the less volatile returns were over the defined
time period.
VOLATILITY(RISK)COMPARISON
DBCCX - 3.33 S&P 500 INDEX - 4.61
For the past six months with the exception of December and January the S&P 500
Index has outperformed the S&P 100 Index. Historically these indices track very
closely. For the 12 months, 5 year and 10 year periods ending January 31, 2005
the 500 Index returned 6.23%, -1.77% and 11.51 respectively. Five and ten year
results are annualized. The 100 Index returned 2.71%, -4.14% and 11.82%. Looking
at the stocks in our portfolio one can see that they are more closely correlated
to the 100 Index as opposed to the 500 Index. You may also wish to visit the
websites of Lipper and Morningstar to view their assessment of our underlying
stocks. The difficulty is in finding an appropriate benchmark when the 100 and
500 Indices differ so much in a relatively short period of time.
For the past several years a more appropriate benchmark would be the S&P 100
Index but since the S&P 500 Index is the most quoted we will continue to use
that. There will be periods when the 100 Index does better than the 500 Index
and our comparative results to the 500 Index will look better than is
appropriate. We feel that by explaining how our results were achieved you will
see the value of our covered call program as part of your overall asset
allocation regardless of what benchmark we use. You will also notice that our
portfolio turnover rate is very low. By doing this an investor can more easily
evaluate whether our options are adding value to our underlying portfolio.
Basically our strategy is to hold a broadly diversified portfolio of common
stocks and write options on them with the intent of reducing the volatility of
those stocks. The common stocks we hold are very representative of the S&P 500
Index so over time they should perform the same as the Index. As discussed
previously there are periods such as the past few years where this won't be the
case but there will be periods such as the year 2000 when our underlying stocks
will do better than the Index. By reducing the volatility of the underlying
stocks we expect to improve on their return over time which is what we have
2
done from inception regardless of which benchmark is used. Our expectations are
that we can exceed the performance of our underlying stocks if they don't
appreciate more than 10% on an annualized basis. In a year like 2003 when both
indices had returns in the high double digits our results will tend to lag and
consequently our three year results may not compare favorably. Over time there
will also be negative years such as 2000, 2001 and 2002 where our results will
compare more favorably. Combining the good years with the bad years we don't
expect the market to exceed a growth rate of over 10% annualized and
consequently we expect to do better than either Index over time.
To get a better understanding of our expectations we refer you to our website,
www.dobsoncapital.com. For those of you without access to the internet please
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call us toll free at 877-546-3066 and we will send you the written explanations.
Overall we are pleased with results from inception and believe we have a
reasonable probability of meeting expectations in the future. We will continue
our investment strategy of using the larger capitalization stocks and writing
individual call options on those stocks. As always, past performance does not
guarantee future results.
MANAGEMENT'S DISCUSSION OF MUTUAL FUND ISSUES
1. Portfolio Ownership. As of January 31, 2005 I am not only the Portfolio
Manager of our Fund but am the beneficial owner of approximately 13.7% of the
outstanding shares.
2. Soft Dollars. Although soft dollar arrangements are permitted, it is our
belief that commission dollars should be used to keep commission costs low.
Therefore we have not nor do we intend to use commission dollars to pay for
research or other services.
3. Broker/Dealers. Currently we deal with one broker dealer for the purchase and
sale of stocks and options. As of this date the Broker/Dealer we use does not
and has never had any clients with us.
4. Disaster Recovery. We e-mail a copy of the portfolio any time changes are
made to an offsite location located 80 miles from our facility. Should there be
a major disaster such as an earthquake we can resume operations in a short
period of time. We also back up our data each day so we can move to another
building in case of a local power failure.
5. Proxy voting policies. Please contact us if you would like a copy of our
proxy voting policies or to see our proxy voting record.
6. 12b-1 fees. The fund does not make use of 12b-1 fees.
I hope the above analysis has been useful and informative. Please do not
hesitate to call me toll free at 877-546-3066 if you have any questions and
please visit our website at www.dobsoncapital.com.
---------------------
3
INVESTMENT RESULTS
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AVERAGE ANNUAL TOTAL RETURNS
(FOR PERIODS ENDED JANUARY 31, 2005)
SINCE INCEPTION
SIX MONTHS ONE YEAR FIVE YEAR (MARCH 24, 1999)
-------------- -------------- ------------- --------------------
Dobson Covered Call Fund* 4.55% 4.12% 0.50% 1.82%
S&P 500 Index** 8.12% 6.18% -1.80% 0.33%
- --------------------------------------------------------------------------------------------------------
The rate of return will vary and the principal value of an investment will
fluctuate. Shares, if redeemed, may be worth more or less than their original
cost. Performance data quoted does not reflect the deduction of taxes that an
investor may pay on Fund distributions or the redemption of Fund shares. Past
performance is not indicative of future investment results. Due to market
volatility, current performance may be higher or lower than the performance
shown above.
* Return figures reflect any change in price per share and assume the
reinvestment of all distributions.
** The Index is an unmanaged benchmark that assumes reinvestment of all
distributions and excludes the effect of taxes and fees. The S&P 500 Index is a
widely recognized unmanaged index of equity prices and is representative of a
broader market and range of securities than is found in the Fund's portfolio.
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE DOBSON COVERED
CALL FUND AND THE UNMANAGED S&P 500 INDEX
[GRAPH OMITTED]
DOBSON COVERED
CALL FUND S&P 500 INDEX
$11,119 $10,193
---------------- ----------------
3/24/1999 10,000.00 10,000.00
7/31/1999 10,780.00 10,572.59
1/31/2000 10,842.58 11,163.50
7/31/2000 11,167.02 11,520.55
1/31/2001 11,301.17 11,062.55
7/31/2001 10,983.65 9,870.22
1/31/2002 10,858.90 9,270.74
7/31/2002 9,246.19 7,531.63
1/31/2003 8,961.23 7,135.68
7/31/2003 9,884.77 8,332.78
1/31/2004 10,678.44 9,599.94
7/31/2004 10,635.15 9,428.15
1/31/2005 11,118.67 10,193.49
This graph shows the value of a hypothetical initial investment of $10,000 in
the Fund and the S&P 500 Index on March 24, 1999 (inception of the Fund) and
held through January 31, 2005. The S&P 500 Index is a widely recognized
unmanaged index of common stock prices. The Index returns do not reflect
expenses, which have been deducted from the Fund's return. These performance
figures include the change in value of the stocks in the index plus the
reinvestment of dividends and are not annualized. The
4
returns shown do not reflect deduction of taxes that a shareholder would pay on
Fund distributions or the redemption of Fund shares. THE FUND'S RETURN
REPRESENTS PAST PERFORMANCE AND DOES NOT PREDICT FUTURE RESULTS. Investment
returns and principal values will fluctuate so that our shares, when redeemed,
may be worth more or less than their original purchase price. For more
information on the Dobson Covered Call Fund, please call 1-877-2-Dobson or
1-877-236-2766 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.
The fund's investment objectives, risks, charges and expenses must be considered
carefully before investing. The prospectus contains this and other important
information about the investment company, and it may be obtained by visiting
www.dobsoncapital.com or by calling Unified Fund Services at 1-877-236-2766.
- ---------------------
Read it carefully before investing. Figures include changes in principal value,
reinvested dividend and capital gain distributions.
The Dobson Covered Call Fund is distributed by Unified Financial Securities,
Inc., 431 N. Pennsylvania St., Indianapolis, Indiana 46204
5
FUND HOLDINGS - (UNAUDITED)
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DOBSON COVERED CALL FUND PERCENT OF PORTFOLIO HEDGED AS OF JANUARY 31, 2005 1
95.77% 2
4.23% 3
1As a percent of portfolio holdings
2Percent of portfolio hedged by covered call options
3Percent of portfolio unhedged
Under normal circumstances, at least 80% of the Fund's portfolio will be hedged
using covered call options.
AVAILABILITY OF PORTFOLIO SCHEDULE - (UNAUDITED)
- ----------------------------------
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Form N-Qs are available at the SEC's website at
www.sec.gov. The Fund's Form N-Qs may be reviewed and copied at the Public
Reference Room in Washington DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
SUMMARY OF FUND'S EXPENSES - (UNAUDITED)
- --------------------------
As a shareholder of the Fund, you incur ongoing costs, including management
fees, and other Fund expenses. This Example is intended to help you understand
your ongoing costs (in dollars) of investing in the Fund and to compare these
costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period (August 1, 2004) and held for the entire period (through January 31,
2005).
Actual Expenses
- ---------------
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.60), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
6
Hypothetical Example for Comparison Purposes
- --------------------------------------------
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
- ---------------------------------- -------------------- -------------------------- --------------------------
DOBSON COVERED CALL FUND BEGINNING ACCOUNT ENDING EXPENSES PAID DURING
VALUE ACCOUNT VALUE PERIOD AUGUST 1, 2004 -
AUGUST 1, 2004 JANUARY 31, 2005 JANUARY 31, 2005*
- ---------------------------------- -------------------- -------------------------- --------------------------
Actual $1,000.00 $1,045.50 $7.73
(-0.41% return)
- ---------------------------------- -------------------- -------------------------- --------------------------
Hypothetical $1,000.00 $1,017.64 $7.63
(5% return before expenses)
- ---------------------------------- -------------------- -------------------------- --------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, multiplied
by the average account value over the period, multiplied by 184/365 (to reflect
the one-half year period).
7
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS
JANUARY 31, 2005
(UNAUDITED)
COMMON STOCKS - 100.11% SHARES VALUE
------------ ------------------
AIR COURIER SERVICES - 1.46%
FedEx Corp. (a) 1,000 $ 95,650
------------------
AIRCRAFT - 2.40%
Boeing Co. (a) 3,100 156,860
------------------
BEVERAGES - 3.54%
Coca-Cola Co. (a) 3,000 124,470
PepsiCo, Inc. (a) 2,000 107,400
------------------
231,870
------------------
BIOLOGICAL PRODUCTS - 1.90%
Amgen, Inc. (a) (b) 2,000 124,480
------------------
CABLE & OTHER PAY TELEVISION SERVICES - 3.34%
Comcast Corp. Class A (a) (b) 3,323 106,968
Viacom, Inc. - Class B (a) 3,000 112,020
------------------
218,988
------------------
CHEMICAL & ALLIED PRODUCTS - 1.52%
Dow Chemical Co. (a) 2,000 99,400
------------------
COMPUTER COMMUNICATION EQUIPMENT - 1.65%
Cisco Systems, Inc. (a) (b) 6,000 108,240
------------------
COMPUTERS & OFFICE EQUIPMENT - 2.85%
International Business Machines Corp. (a) 2,000 186,840
------------------
CONSTRUCTION MACHINERY & EQUIPMENT - 1.36%
Caterpillar, Inc. (a) 1,000 89,100
------------------
CONVERTED PAPER & PAPERBOARD PRODUCTS - 1.29%
3M Co. (a) 1,000 84,360
------------------
CUTLERY, HANDTOOLS & GENERAL HARDWARE - 1.86%
The Gillette Co. (a) 2,400 121,728
------------------
DIVERSIFIED - 1.37%
Honeywell International, Inc. (a) 2,500 89,950
------------------
ELECTRIC SERVICES - 2.91%
Dominion Resources, Inc. 1,000 69,380
Duke Energy, Inc. 2,000 53,580
The Southern Co. 2,000 67,540
------------------
190,500
------------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS - 1.60%
Medtronic, Inc. (a) 2,000 104,980
------------------
See accompanying notes which are an integral part of the financial statements.
8
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS -CONTINUED
JANUARY 31, 2005
(UNAUDITED)
COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE
------------ ------------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT - 2.76%
General Electric Co. (a) 5,000 $ 180,650
------------------
ELECTRONIC COMPUTERS - 2.55%
Dell, Inc. (a) (b) 4,000 167,040
------------------
FINANCE SERVICES - 6.02%
American Express Co. (a) 3,000 160,050
First Data Corp. (a) 3,000 122,220
Morgan Stanley (a) 2,000 111,920
------------------
394,190
------------------
FIRE, MARINE & CASUALTY INSURANCE - 2.02%
American International Group, Inc. (a) 2,000 132,580
------------------
MOTOR VEHICLES & PASSENGER CAR BODIES - 1.33%
Ford Motor Co. 1,000 13,170
General Motors Corp. (a) 2,000 73,620
------------------
86,790
------------------
NATIONAL COMMERCIAL BANKS - 11.58%
Bank of America Corp. (a) 4,000 185,480
Citigroup, Inc. (a) 4,133 202,724
J.P. Morgan Chase & Co.(a) 4,980 185,903
Wells Fargo & Co. (a) 3,000 183,900
------------------
758,007
------------------
OIL & GAS FIELD SERVICES - 2.08%
Schlumberger Ltd. (a) 2,000 136,080
------------------
PAPER MILLS - 1.20%
International Paper Co. (a) 2,000 78,300
------------------
PETROLEUM REFINING - 5.69%
ChevronTexaco Corp. (a) 4,000 217,600
Exxon Mobil Corp. (a) 3,000 154,800
------------------
372,400
------------------
PHARMACEUTICAL PREPARATIONS - 7.45%
Bristol-Myers Squibb, Inc. (a) 3,000 70,320
Johnson & Johnson (a) 2,000 129,400
Merck & Co., Inc. (a) 3,000 84,150
Pfizer, Inc. (a) 4,400 106,304
Schering-Plough Corp. 1,000 18,560
Wyeth (a) 2,000 79,260
------------------
487,994
------------------
See accompanying notes which are an integral part of the financial statements.
9
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS - CONTINUED
JANUARY 31, 2005
(UNAUDITED)
COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE
------------ ------------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES - 0.51%
Eastman Kodak, Inc. (a) 1,000 $ 33,090
------------------
RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT - 1.70%
QUALCOMM, Inc. (a) 3,000 111,720
------------------
RETAIL - DRUG STORES & PROPRIETARY STORES - 2.11%
Medco Health Solutions, Inc. (b) 241 10,259
Walgreen Co. (a) 3,000 127,830
------------------
138,089
------------------
RETAIL - EATING PLACES - 1.48%
McDonald's Corp. (a) 3,000 97,170
------------------
RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS - 2.52%
Home Depot, Inc. (a) 4,000 165,040
------------------
RETAIL - VARIETY STORES - 4.73%
Target Corp. (a) 3,000 152,310
Wal-Mart Stores, Inc. (a) 3,000 157,200
------------------
309,510
------------------
SECURITY BROKERS, DEALERS & FLOTATION COMPANIES - 2.01%
The Charles Schwab Corp. 1,000 11,240
Merrill Lynch & Co., Inc. (a) 2,000 120,140
------------------
131,380
------------------
SEMICONDUCTORS & RELATED DEVICES - 3.13%
Agere Systems, Inc. - Class B (b) 264 380
Intel Corp. (a) 6,000 134,700
Texas Instruments, Inc. (a) 3,000 69,630
------------------
204,710
------------------
SERVICES - MISCELLANEOUS AMUSEMENT & RECREATION - 1.75%
Walt Disney Co. (a) 4,000 114,520
------------------
SERVICES - PREPACKAGED SOFTWARE - 2.83%
Microsoft Corp. (a) 6,000 157,680
Oracle Corp. (b) 2,000 27,540
------------------
185,220
------------------
SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS - 2.44%
Procter & Gamble, Inc. (a) 3,000 159,690
------------------
TELEPHONE & TELEGRAPH APPARATUS - 0.05%
Lucent Technologies, Inc. (b) 1,000 3,260
------------------
See accompanying notes which are an integral part of the financial statements.
10
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS - CONTINUED
JANUARY 31, 2005
(UNAUDITED)
COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE
------------ ------------------
TELEPHONE COMMUNICATIONS - 3.12%
AT&T Corp. (a) 1,600 $ 30,704
BellSouth Corp. (a) 3,000 78,720
SBC Communications, Inc. (a) 4,000 95,040
------------------
204,464
------------------
TOTAL COMMON STOCKS (COST $6,278,372) 6,554,840
------------------
MONEY MARKET SECURITIES - 2.65%
Federal Prime Obligation Fund, 2.13% (c) 173,437 173,437
------------------
TOTAL MONEY MARKET SECURITIES (COST $173,437) 173,437
------------------
TOTAL INVESTMENTS (COST $6,451,809) - 102.76% $ 6,728,277
------------------
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS - (2.76)% (180,560)
------------------
TOTAL NET ASSETS - 100.00% $ 6,547,717
==================
(a) Portion of the security is pledged as collateral for call options written.
(b) Non-income producing.
(c) Variable rate security; the coupon rate shown represents the rate at January 31, 2005.
See accompanying notes which are an integral part of the financial statements.
11
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS - CONTINUED
JANUARY 31, 2005
(UNAUDITED)
OPTIONS WRITTEN JANUARY 31, 2005
SHARES
SUBJECT
COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE
- ------------------------------------------------ ------------ ------------------
American Express Co. / July 2005 @ 50 2,000 $ 500
American Express Co. / April 2005 @ 55 1,000 850
American International Group, Inc. / May 2005 @ 75 1,000 3,400
American International Group, Inc. / February 2005 @ 75 1,000 150
Amgen, Inc. / July 2005 @ 65 1,000 2,300
Amgen, Inc. / April 2005 @ 65 1,000 1,000
American Telephone & Telegraph Co. / April 2005 @ 20 1,600 480
Bank of America Corp. / February 2005 @ 47.5 2,000 400
Bank of America Corp. / February 2005 @ 45 2,000 3,000
BellSouth Corp. / April 2005 @ 30 1,500 75
BellSouth Corp. / July 2005 @ 27.5 1,500 1,050
Boeing Co. / February 2005 @ 55 1,100 110
Boeing Co. / February 2005 @ 50 2,000 2,300
Bristol-Myers Squibb Co. / March 2005 @ 25 1,500 225
Bristol-Myers Squibb Co. / June 2005 @ 27.5 1,500 75
Caterpillar, Inc. / February 2005 @ 50 1,000 1,100
ChevronTexaco Corp. / June 2005 @ 55 2,000 3,600
ChevronTexaco Corp. / March 2005 @ 50 2,000 7,200
Cisco Systems, Inc. / July 2005 @ 20 2,000 1,100
Cisco Systems, Inc. / April 2005 @ 17.5 2,000 2,400
Cisco Systems, Inc. / April 2005 @ 20 2,000 600
Citigroup, Inc. / June 2005 @ 50 1,800 2,250
Citigroup, Inc. / March 2005 @ 47.5 2,300 4,370
Coca-Cola Co. / May 2005 @ 42.5 1,500 1,275
Coca-Cola Co. / February 2005 @ 47.5 1,500 375
Comcast Corp. Class A / July 2005 @ 35 1,000 850
Comcast Corp. Class A / April 2005 @ 30 2,300 6,095
Dell, Inc. / May 2005 @ 42 2,000 2,600
Dell, Inc. / February 2005 @ 37.5 2,000 8,400
Disney Co. / April 2005 @ 27.5 2,000 4,000
Disney Co. / July 2005 @ 27.5 2,000 4,900
Dow Chemical / June 2005 @ 50 1,000 2,400
Dow Chemical / March 2005 @ 45 1,000 5,200
Eastman Kodak, Inc. / April 2005 @ 32.5 1,000 1,800
Exxon Mobil Corp. / July 2005 @ 55 1,000 850
Exxon Mobil Corp. / April 2005 @ 50 2,000 5,000
FedEx Corp. / January 2005 @ 95 1,000 3,700
First Data Corp. / February 2005 @ 42.5 1,000 100
First Data Corp. / May 2005 @ 45 2,000 900
General Electric Co. / June 2005 @ 37.5 1,500 1,050
General Electric Co. / March 2005 @ 37.5 1,500 300
General Electric Co. March 2005 @ 35 2,000 2,900
See accompanying notes which are an integral part of the financial statements.
12
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS - CONTINUED
JANUARY 31, 2005
(UNAUDITED)
OPTIONS WRITTEN JANUARY 31, 2005 - CONTINUED
SHARES
SUBJECT
COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE
- ------------------------------------------------ ------------ ------------------
General Motors Corp. / June 2005 @ 40 1,000 $ 650
General Motors Corp. / March 2005 @ 40 1,000 100
Gillette Co. / March 2005 @ 45 2,400 15,840
Home Depot, Inc. / May 2005 @ 45 2,000 600
Home Depot, Inc. / February 2005 @ 37.5 2,000 7,800
Honeywell International, Inc. / March 2005 @ 37.5 1,000 300
Honeywell International, Inc. / June 2005 @ 37.5 1,500 1,650
Intel Corp. / April 2005 @ 25 2,000 400
Intel Corp. / April 2005 @ 22.5 2,000 1,900
Intel Corp. / March 2005 @ 22.5 2,000 1,400
IBM Corp. / February 2005 @ 95 1,000 500
IBM Corp. / April 2005 @ 90 1,000 4,700
International Paper Co. / April 2005 @ 42.5 1,000 150
Johnson & Johnson / July 2005 @ 65 1,000 2,500
Johnson & Johnson / April 2005 @ 60 1,000 5,100
J.P. Morgan Chase & Co. / March 2005 @ 40 1,500 225
J.P. Morgan Chase & Co. / March 2005 @ 37.5 1,500 1,275
J.P. Morgan Chase & Co. / June 2005 @ 40 1,900 855
McDonald's Corp. / June 2005 @ 32.5 1,500 2,250
McDonald's Corp. / March 2005 @ 30 1,500 3,900
Medtronic, Inc. / May 2005 @ 50 1,000 3,800
Medtronic, Inc. / February 2005 @ 50 1,000 2,450
Merck & Co., Inc. / April 2005 @ 47.5 1,000 50
Merrill Lynch & Co., Inc. / April 2005 @ 55 1,000 5,600
Merrill Lynch & Co., Inc. / July 2005 @ 60 1,000 2,900
Microsoft Corp. / April 2005 @ 27.50 2,000 400
Microsoft Corp. / April 2005 @ 30 2,000 800
3M Co. / April 2005 @ 80 1,000 5,300
Morgan Stanley / April 2005 @ 55 1,000 2,650
Morgan Stanley / June 2005 @ 60 1,000 1,400
PepsiCo, Inc. / July 2005 @ 55 2,000 3,000
Pfizer, Inc. / February 2005 @ 27.5 2,000 100
Procter & Gamble Co. / April 2005 @ 55 1,500 1,200
Procter & Gamble Co. / July 2005 @ 55 1,500 375
QUALCOMM, Inc. / April 2005 @ 42.5 1,500 600
QUALCOMM, Inc. / March 2005 @ 40 1,500 825
SBC Communications, Inc. / April 2005 @ 27.5 2,000 100
SBC Communications, Inc. / July 2005 @ 25 2,000 1,200
Schlumberger Ltd. / February 2005 @ 60 1,000 8,100
Schlumberger Ltd. / May 2005 @ 70 1,000 2,650
Target Corp. / April 2005 @ 50 1,500 3,375
Target Corp. / July 2005 @ 50 1,500 4,650
See accompanying notes which are an integral part of the financial statements.
13
DOBSON COVERED CALL FUND
SCHEDULE OF INVESTMENTS - CONTINUED
JANUARY 31, 2005
(UNAUDITED)
OPTIONS WRITTEN JANUARY 31, 2005 - CONTINUED
SHARES
SUBJECT
COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE
- ------------------------------------------------ ------------ ------------------
Texas Instruments, Inc. / March 2005 @ 22.5 1,500 $ 2,025
Texas Instruments, Inc. / April 2005 @ 25 1,500 750
Viacom, Inc. / March 2005 @ 35 1,500 3,900
Viacom, Inc. / June 2005 @ 37.5 1,500 2,580
Wal-Mart Stores, Inc. / March 2005 @ 55 1,500 525
Wal-Mart Stores, Inc. / June 2004 @ 55 1,500 1,500
Walgreen Co. / April 2005 @ 37.5 1,500 8,400
Walgreen Co. / July 2005 @ 45 1,500 1,725
Wells Fargo & Co. / April 2005 @ 65 2,000 300
Wells Fargo & Co. / July 2005 @ 60 1,000 2,600
Wyeth / July 2005 @ 45 1,000 490
Wyeth / April 2005 @ 40 1,000 1,350
------------ ------------------
Total (premiums received $213,084) 143,900 $ 220,995
============ ==================
See accompanying notes which are an integral part of the financial statements.
14
DOBSON COVERED CALL FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2005
(UNAUDITED)
ASSETS
Investments in securities, at value (cost $6,451,809) $ 6,728,277
Cash 1,211
Interest receivable 367
Dividends receivable 7,638
Receivable due from advisor 33,959
Prepaid expenses 3,758
-----------------
TOTAL ASSETS 6,775,210
-----------------
LIABILITIES
Covered call options written (premiums received $213,084) 220,995
Payable to affiliates 4,437
Accrued expenses 1,686
Accrued trustee & officer expense 375
-----------------
TOTAL LIABILITIES 227,493
-----------------
NET ASSETS $ 6,547,717
=================
NET ASSETS CONSIST OF:
Paid in capital 6,400,167
Accumulated undistributed net investment income 19,681
Accumulated net realized (loss) on investments (140,688)
Net unrealized appreciation (depreciation) on:
Investments 276,468
Options (7,911)
-----------------
NET ASSETS $ 6,547,717
=================
Shares outstanding (unlimited number of shares authorized) 854,060
-----------------
NET ASSET VALUE
Offering and redemption price per share $ 7.67
=================
See accompanying notes which are an integral part of the financial statements.
15
DOBSON COVERED CALL FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2005
(UNAUDITED)
INVESTMENT INCOME
Dividend income $ 76,408
Interest income 2,395
---------------
TOTAL INCOME 78,803
---------------
EXPENSES
Investment advisor fee (a) -
Legal expenses 14,104
Administration expenses 13,165
Fund accounting expenses 11,579
Transfer agent expenses 10,251
Custodian expenses 10,081
Auditing expenses 5,822
Pricing expenses 5,161
Trustee and officer expenses 4,057
Registration expenses 1,731
Insurance expenses 1,292
Miscellaneous expenses 1,124
Printing expenses 110
---------------
TOTAL EXPENSES 78,477
Reimbursed expenses (a) (29,853)
---------------
Total operating expenses 48,624
---------------
NET INVESTMENT INCOME 30,179
---------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on options transactions 17,397
Net realized (loss) on investment securities (18,526)
Change in unrealized appreciation (depreciation)
on investment securities 255,550
---------------
Net realized and unrealized gain (loss) on investment securities 254,421
---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 284,600
===============
(a) See note 3 in notes to the financial statements
See accompanying notes which are an integral part of the financial statements.
16
DOBSON COVERED CALL FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JANUARY 31, 2005 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) JULY 31, 2004
---------------------- ---------------------
OPERATIONS
Net investment income $ 30,179 $ 19,675
Net realized gain on investment securities 17,397 28,564
Net realized gain (loss) on options transactions (18,526) (131,118)
Change in unrealized appreciation / (depreciation) 255,550 458,477
---------------------- ---------------------
Net increase in net assets resulting from operations 284,600 375,598
---------------------- ---------------------
DISTRIBUTIONS
From net investment income (30,173) -
From net realized gain - -
---------------------- ---------------------
Total distributions (30,173) -
---------------------- ---------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 483,960 1,744,959
Reinvestment of distributions 15,631 -
Amount paid for shares repurchased (464,681) (659,957)
---------------------- ---------------------
Net increase in net assets resulting
from share transactions 34,910 1,085,002
---------------------- ---------------------
TOTAL INCREASE IN NET ASSETS 289,337 1,460,600
---------------------- ---------------------
NET ASSETS
Beginning of period 6,258,380 4,797,780
---------------------- ---------------------
End of period $ 6,547,717 $ 6,258,380
====================== =====================
Accumulated undistributed net investment income included
in net assets $ 19,681 $ 19,675
---------------------- ---------------------
CAPITAL SHARE TRANSACTIONS
Shares sold 64,365 239,656
Shares issued in reinvestment of distributions 2,025 -
Shares repurchased (62,046) (89,858)
---------------------- ---------------------
Net increase from capital share transactions 4,344 149,798
====================== =====================
See accompanying notes which are an integral part of the financial statements.
17
DOBSON COVERED CALL FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING DURING THE PERIOD
SIX MONTHS ENDED
JANUARY 31, 2005 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
(UNAUDITED) JULY 31, 2004 JULY 31, 2003 JULY 31, 2002 JULY 31, 2001 JULY 31, 2000
-------------- -------------- -------------- ------------ ------------ -------------
SELECTED PER SHARE DATA
Net asset value, beginning of perio $ 7.37 $ 6.85 $ 6.88 $ 9.34 $ 10.67 $ 10.78
-------------- -------------- -------------- ------------ ------------ -------------
Income from investment operations
Net investment income 0.06 0.02 0.03 0.02 0.04 0.03
Net realized and unrealized gain (loss) 0.28 0.50 0.42 (1.36) (0.22) 0.35
-------------- -------------- -------------- ------------ ------------ -------------
Total from investment operations 0.34 0.52 0.45 (1.34) (0.18) 0.38
-------------- -------------- -------------- ------------ ------------ -------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.04) - (0.02) (0.03) (0.18) (0.01)
From net realized gain - - (0.46) (1.09) (0.97) (0.48)
-------------- -------------- -------------- ------------ ------------ -------------
Total distributions (0.04) - (0.48) (1.12) (1.15) (0.49)
-------------- -------------- -------------- ------------ ------------ -------------
Net asset value, end of period $ 7.67 $ 7.37 $ 6.85 $ 6.88 $ 9.34 $ 10.67
============== ============== ============== ============ ============ =============
TOTAL RETURN (a) 4.55% (b) 7.59% 6.91% -15.82% -1.64% 3.59%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 6,548 $ 6,258 $ 4,798 $ 1,392 $ 1,652 $ 1,540
Ratio of expenses to average net ass 1.50% (c) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of expenses to average net assets
before waiver & reimbursement 3.23% (c) 1.98% 4.83% 5.51% 5.19% 5.47%
Ratio of net investment income to
average net assets 0.93% (c) 0.34% 0.48% 0.26% 0.44% 0.31%
Ratio of net investment income to
average net assets before waiver (0.79)(c) (0.14)% (2.85)% (3.75)% (3.25)% (3.66)%
Portfolio turnover rate 2.38% 10.25% 0.47% 6.51% 6.62% 31.75%
(a) Total return in the above table represents the rate that investor would have earned or lost on an investment in the Fund,
assuming reinvestment of dividends.
(b) Not annualized
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
18
DOBSON COVERED CALL FUND
NOTES TO THE FINANCIAL STATEMENTS
JANUARY 31, 2005
(UNAUDITED)
NOTE 1. ORGANIZATION
Dobson Covered Call Fund (the "Fund") was organized as a diversified series of
the AmeriPrime Funds (the "Trust") on March 22, 1999 and commenced operations on
March 24, 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 Trustees to issue an
unlimited number of shares of beneficial interest of separate series. The Fund
is one of a series of funds currently authorized by the Trustees. The Fund's
investment objective is total return over the long term. The investment advisor
to the Fund is Dobson Capital Management, Inc. (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 - Equity 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. Securities that are traded on any stock exchange are
generally valued by the pricing service at the last quoted sale price. Lacking a
last sale price, an exchange traded security is generally valued by the pricing
service at its last bid price. Securities traded in the NASDAQ over-the-counter
market are generally valued by the pricing service at the NASDAQ Official
Closing Price. When market quotations are not readily available, when the
Advisor determines that the market quotation or the price provided by the
pricing service does not accurately reflect the current market value or when
restricted or illiquid securities are being valued, such securities are valued
as determined in good faith by the Advisor, in conformity with guidelines
adopted by and subject to review of the Board of Trustees of the Trust (the
"Board").
Fixed income securities generally are valued by using market quotations, but may
be valued on the basis of prices furnished by a pricing service when the 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, subject to
review of the Board. Short term investments in fixed income securities with
maturities of less than 60 days when acquired, or which subsequently are within
60 days of maturity, are valued by using the amortized cost method of valuation,
which the Board has determined will represent fair value.
Option writing - When the Fund writes an option, an amount equal to the premium
received by the Fund is recorded as a liability and is subsequently adjusted to
the current market value of the option written. Premiums received from writing
options that expire unexercised are treated by the Fund on the expiration date
as realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium is less than
the amount paid for the closing purchase transaction, as a realized loss. If a
call option is exercised, the premium is added to the proceeds from the sale of
the underlying security or currency in determining whether the Fund has realized
a gain or loss. The Fund as writer of an option bears the market risk of an
unfavorable change in the price of the security underlying the written option.
Federal Income Taxes- 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. If the required amount of net investment income is not
distributed, the Fund could incur a tax expense.
19
DOBSON COVERED CALL FUND
NOTES TO THE FINANCIAL STATEMENTS
JANUARY 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
Distributions to Shareholders - 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.
Distributions to shareholders, which are determined in accordance with income
tax regulations, are recorded on the ex-dividend date.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment advisor to the Fund is Dobson Capital Management, Inc. Under the
terms of the management agreement, (the "Agreement"), the Advisor manages the
Fund's investments subject to approval of the Board. As compensation for its
management services, the Fund is obligated to pay the Advisor a fee computed and
accrued daily and paid monthly at an annual rate of 0.80% of the average daily
net assets of the Fund, less the amount by which total operating expenses,
including management fees, exceed 1.50% of the average value of its daily net
assets. The Advisor has contractually agreed to reimburse the Fund for the
operating expenses it incurs, but only to the extent necessary to maintain the
Fund's total annual operating expenses (excluding brokerage costs, borrowing
costs, taxes and extraordinary expenses) at 1.50% of its average daily net
assets. For the six months ended January 31, 2005, the Advisor earned fees of $0
from the Fund. For the six months ended January 31, 2005, the Advisor also
reimbursed Fund expenses of $29,853. At January 31, 2005 there was a net
receivable due from the Advisor in the amount of $33,959.
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, including all
regulatory reporting and necessary office equipment and personnel. Unified
receives a monthly fee from the Fund equal to an annual rate of 0.10% of the
Fund's assets under $50 million, 0.07% of the Fund's assets from $50 million to
$100 million, 0.05% of the Fund's assets from $100 million to $150 million, and
0.03% of the Fund's assets over $150 million (subject to a minimum fee of $2,500
per month). For the six months ended January 31, 2005, the administrator earned
fees of $13,165 from the Fund for administrative services provided. A Trustee
and the officers of the Trust are members of management and/or employees of
Unified, and/or officers or shareholders of Unified Financial Services, Inc.,
the parent company of Unified.
The Fund also retains Unified to act as the Fund's transfer agent and fund
accountant. For its services as transfer agent, Unified receives a monthly fee
from the Fund of $1.25 per shareholder (subject to a minimum monthly fee of
$1,250) and reimbursement of out-of-pocket expenses. For the six months ended
January 31, 2005, Unified earned fees of $8,672 from the Fund for transfer agent
services provided and $1,579 in reimbursement for out-of-pocket expenses
incurred in providing transfer agent services to the Fund. For its services as
fund accountant, Unified receives an annual fee from the Fund equal to 0.05% of
the Fund's assets up to $50 million, 0.04% of the Fund's assets from $50 million
to $100 million, 0.03% from $100 million to $150 million, and 0.02% of the
Fund's assets over $150 million (subject to various monthly minimum fees, the
maximum being $1,666). For the six months ended January 31, 2005, Unified earned
fees of $11,579 from the Fund for fund accounting services provided to the Fund.
The Fund retains Unified Financial Securities, Inc. (the "Distributor) to act as
the principal distributor of its shares. The Fund has adopted a plan, pursuant
to Rule 12b-1 under the Investment Company Act of 1940, which permits the Fund
to pay directly, or reimburse the Fund's Advisor and Distributor, for certain
distribution and promotion expenses related to marketing its shares, in an
amount not to exceed 0.25% of the average daily net assets of the Fund. The plan
is currently inactive, therefore, no 12b-1 fees were accrued or paid during the
six months ended January 31, 2005. A Trustee of the Trust is a shareholder of
Unified Financial Services,
20
DOBSON COVERED CALL FUND
NOTES TO THE FINANCIAL STATEMENTS
JANUARY 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
Inc. (the parent company of the Distributor), and certain officers of the Trust
are a director and/or officers of the Distributor and/or shareholders of Unified
Financial Securities, Inc. As a result, those persons may be deemed to be
affiliates of the Distributor.
NOTE 4. INVESTMENTS
For the six months ended January 31, 2005, purchases and sales of investment
securities, other than short-term investments and short-term U.S. government
obligations were as follows:
AMOUNT
---------------
PURCHASES
U.S. Government Obligations $ -
Other 246,613
SALES
U.S. Government Obligations $ -
Other 151,470
At January 31, 2005, the net appreciation of investments for tax purposes, net
of proceeds received for call options written, was as follows:
AMOUNT
--------------
Gross Appreciation $ 963,767
Gross (Depreciation) (695,210)
--------------
Net Appreciation
on Investments $ 268,557
==============
At January 31, 2005, the aggregate cost of securities for federal income tax
purposes, net of proceeds received for call options written, was $6,238,725.
NOTE 5. ESTIMATES
The preparation of financial statements in conformity 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 disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
NOTE 6. BENEFICIAL OWNERSHIP
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 January 31, 2005,
Pershing, LLC, for the benefit of others, owned 68.86% of the Fund and thus may
be deemed to control the Fund.
NOTE 7. CALL OPTIONS WRITTEN
As of January 31, 2005, portfolio securities valued at $6,068,791 were held in
escrow by the custodian as collateral for call options written by the Fund.
Transactions in written options during the six months ended January 31, 2005
were as follows (100 shares of common stock underly each option contract):
21
DOBSON COVERED CALL FUND
NOTES TO THE FINANCIAL STATEMENTS
JANUARY 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 7. CALL OPTIONS WRITTEN - CONTINUED
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
Options outstanding at July 31, 2004 1,423 $ 254,178
Options written 1,891 268,016
Options terminated in closing purchase transactions (883) (138,587)
Options expired (936) (161,092)
Options exercised (56) (9,431)
------------- ----------------
Options outstanding at January 31, 2005 1,439 $ 213,084
============= ================
NOTE 8. CAPITAL LOSS CARRYFORWARD
At July 31, 2004, the Fund had available for federal tax purposes unused capital
loss carryforwards of $108,527 expiring in 2012. Capital loss carryforwards are
available to offset future realized capital gains. To the extent that these
carryforwards are used to offset future capital gains, it is probable that the
amount offset will not be distributed to shareholders.
NOTE 9. DISTRIBUTIONS TO SHAREHOLDERS
There were no distributions paid during the fiscal year ended July 31, 2004.
The tax character of distributions paid during the fiscal years 2004 and 2003
were as follows:
Distributions paid from: 2004 2003
------------- ------------
Ordinary Income $ - $ 3,978
Short-Term Capital Gain - 93,218
Long-Term Capital Gain - -
------------- ------------
$ - $ 97,196
============= ============
On December 29, 2004, the Fund paid an income distribution of $0.0353 per share
or $30,173 to shareholders of record on December 28, 2004
As of July 31, 2004, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
Undistributed ordinary income/(accumulated losses) $ 19,675
Undistributed long-term capital gain/(accumulated losses) (108,074)
Unrealized appreciation/(depreciation) (18,478)
---------------
$ (106,877)
===============
The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
22
The Funds Statement of Additional Information ("SAI") includes additional
information about the trustees and is available, without charge, upon request.
You may call toll-free (877) 236-2766 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 and information regarding how
the Fund voted proxies during the 12-month period ended June 30, 2004, are
available without charge upon request by (1) calling the Fund at (877) 236-2766
and (2) from Fund documents filed with the Securities and Exchange Commission
("SEC") on the SEC's website at www.sec.gov.
-----------
TRUSTEES
Gary E. Hippenstiel
Stephen A. Little
Daniel J. Condon
Ronald C. Tritschler
OFFICERS
Anthony J. Ghoston, President
Thomas G. Napurano, Chief Financial Officer and Treasurer
Freddie Jacobs, Jr., Secretary
Lynn E. Wood, Chief Compliance Officer
INVESTMENT ADVISOR
Dobson Capital Management, Inc.
1422 S. Van Ness Street
Santa Ana, CA 92707
DISTRIBUTOR
Unified Financial Securities, Inc.
431 N. Pennsylvania Street
Indianapolis, IN 46204
INDEPENDENT ACCOUNTANTS
Cohen McCurdy Ltd.
826 Westpoint Pkwy, Suite 1250
Westlake, OH 44145
LEGAL COUNSEL
Thompson Hine LLP
312 Walnut St., 14th Floor
Cincinnati, OH 45202
CUSTODIAN
UMB Bank, N.A.
928 Grand Blvd, 10th Floor
Kansas City, MO 64106
ADMINISTRATOR, TRANSFER AGENT
AND FUND ACCOUNTANT
Unified Fund Services, Inc.
431 N. Pennsylvania Street
Indianapolis, IN 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
23
ITEM 2. CODE OF ETHICS. NOT APPLICABLE
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. NOT APPLICABLE
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. NOT APPLICABLE
ITEM 5. AUDIT COMMITTEE OF LISTED COMPANIES. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS. NOT APPLICABLE - SCHEDULE FILED WITH ITEM 1.
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.
THE REGISTRANT HAS NOT ADOPTED PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND
NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES [DIRECTORS].
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of March 24, 2005, 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) NOT APPLICABLE
(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.
-2-
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/ Anthony Ghoston
-----------------------------------------------------
Anthony Ghoston, President
Date 4/7/05
--------------------------------------------------
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/ Anthony Ghoston
------------------------------------------------------
Anthony Ghoston, President
Date 4/7/05
---------------------------------------------------
By
* /s/ Thomas Napurano
----------------------------------------------------------------
Thomas Napurano, Chief Financial Officer and Treasurer
Date 3/30/05
--------------------------------------------------------------