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
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AmeriPrime Advisors Trust
- --------------------------------------------------------------------------------
(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.
- ---------------------------
431 N. Pennsylvania St.
- ---------------------------
Indianapolis, IN 46204
- ----------------------------
(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: 9/30
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Date of reporting period: 03/31/05
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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.
================================================================================
IRON MARKET OPPORTUNITY
FUND
================================================================================
SEMI-ANNUAL REPORT
(UNAUDITED)
MARCH 31, 2005
FUND ADVISOR:
IRON FINANCIAL
TWO NORTHFIELD PLAZA
SUITE 250
NORTHFIELD, IL 60093
TOLL FREE: (877) 322-0575
FUND HOLDINGS - (UNAUDITED)
- -------------
IRON MARKET OPPORTUNITY FUND HOLDINGS AS OF MARCH 31, 2005 1
[CHART OMITTED]
Government Agency Obligations - 41.29%
Commercial Papers - 26.89%
Corporate Bonds - 10.15%
Preferred Securities - 9.90%
Mutual Funds - 7.83%
Mortgage Backed Bonds - 3.79%
Municipal Bonds - 0.01%
Other Assets Less Liabilities - 0.14%
1 As a percent of net assets.
The Fund invests primarily in a broad range of fixed income securities
(including investments, which may be extensive, in other mutual funds that
invest primarily in fixed income securities). Fixed income securities include
bonds, notes, mortgage-backed securities, corporate debt, government securities,
municipal securities, and short term obligations, such as commercial paper and
repurchase agreements.
AVAILABILITY OF PORTFOLIO SCHEDULE
- ----------------------------------
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.
ABOUT YOUR 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 and held for
the entire period from October 1, 2004 to March 31, 2005.
1
SUMMARY OF FUND'S EXPENSES - (UNAUDITED)
- --------------------------
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.
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
ratios 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.
- ---------------------------------- -------------------- -------------------------- --------------------------
IRON MARKET OPPORTUNITY FUND BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
VALUE VALUE PERIOD*
OCTOBER 1, 2004 MARCH 31, 2005 OCTOBER 1, 2004 -
MARCH 31, 2005
- ---------------------------------- -------------------- -------------------------- --------------------------
Actual $1,000.00 $1,018.80 $3.32
- ---------------------------------- -------------------- -------------------------- --------------------------
Hypothetical $1,000.00 $1,021.64 $3.33
- ---------------------------------- -------------------- -------------------------- --------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.66%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
2
IRON MARKET OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2005
(UNAUDITED)
PRINCIPAL
AMOUNT VALUE
-------------- --------------
CORPORATE BONDS - 10.15%
Bayerische Landesbank, Series YCD, 11.000%, 9/27/2011 (a) $ 1,000,000 $ 981,500
Boeing Capital Corp., 5.650%, 5/15/2006 49,000 49,878
General Motors Acceptance Corp., 6.750%, 1/15/2006 200,000 201,430
General Motors Acceptance Corp., 4.592%, 11/15/2010 (a) 250,000 225,785
General Motors Acceptance Corp., 4.692%, 6/15/2011 (a) 400,000 343,670
General Motors Acceptance Corp., 7.500%, 7/15/2005 100,000 100,809
Lehman Brothers Holding, 3.310%, 2/28/2007 (a) 2,000,000 1,998,620
Lehman Brothers Holding, 8.000%, 10/29/2019 (a) 1,000,000 974,750
I-Preferred Term Securities III, 5.980%, 11/05/2033 (a) 1,000,000 1,016,250
I-Preferred Term Securities XVI, 4.780%, 6/24/2034 (a) 3,000,000 3,000,000
I-Preferred Term Securities XVI, 5.040%, 12/11/2032 (a) 500,000 502,625
Preferred Term Securities XVI, 4.560%, 3/23/2035 (a) 1,000,000 1,000,000
Preferred Term Securities XVI, 5.610%, 3/23/2035 (a) 1,000,000 1,000,000
Preferred Term Securities XVII, 4.380%, 6/23/2035 (a) 1,000,000 1,000,000
Preferred Term Securities XVII, 3.480%, 6/23/2035 (a) 3,000,000 3,000,000
Preferred Term Securities XVII, 5.180%, 6/23/2035 (a) 3,000,000 3,000,000
Preferred Term Securities XVII, 3.780%, 6/23/2035 (a) 2,000,000 2,000,000
SLMA Corp., 4.000%, 7/25/2014 (a) 3,000,000 2,942,310
--------------
TOTAL CORPORATE BONDS (COST $23,502,644) 23,337,627
--------------
MORTGAGE BACKED BONDS - 3.79%
FNMA, Series #2002-42, 5.500%, 1/25/2016 43,108 43,251
FNMA, Series #2003-91, 2.767%, 10/01/2034 (a) 1,000,000 1,014,994
First Horizon Mortgage Pass-Through Trust, 3.120%, 1/01/2035 (a) 4,602,483 4,599,675
First Horizon Mortgage Pass-Through Trust, 3.320%, 12/25/2035 (a) 2,048,186 2,048,186
GNMA, 5.00%, 1/20/2035 (a) 991,710 1,002,410
--------------
TOTAL MORTGAGE BACKED BONDS (COST $8,627,261) 8,708,516
--------------
GOVERNMENT AGENCY BONDS - 41.29%
FEDERAL FARM CREDIT BANK - 0.13%
FFCB, 4.000%, 5/12/2008 300,000 297,397
--------------
FEDERAL HOME LOAN BANK - 23.22%
FHLB, 2.200%, 7/28/2006 250,000 244,768
FHLB, 2.250%, 9/24/2007 (a) 2,000,000 1,994,766
FHLB, 2.500%, 10/26/2007 (a) 2,000,000 1,988,238
FHLB, 3.000%, 10/28/2011 (a) 1,340,000 1,325,261
FHLB, 3.110%, 6/10/2018 (a) 2,000,000 1,999,860
FHLB, 3.200%, 1/25/2008 (a) 2,000,000 2,000,992
FHLB, 6.000%, 9/17/2014 (a) 1,900,000 1,892,685
FHLB, 3.000%, 11/25/2008 (a) 500,000 497,434
FHLB, 3.700%, 11/08/2019 (a) 5,000,000 4,947,745
FHLB, 6.000%, 12/17/2019 (a) 2,000,000 1,963,020
FHLB, 2.650%, 11/09/2005 1,000,000 995,359
FHLB, 3.680%, 8/24/2007 2,000,000 1,982,012
FHLB, 4.300%, 8/18/2008 (a) 2,000,000 1,995,520
FHLB, 2.000%, 8/04/2006 (a) 1,000,000 991,166
FHLB, 3.250%, 1/28/2007 (a) 1,000,000 994,348
See accompanying notes which are an integral part of the financial statements.
3
IRON MARKET OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS - CONTINUED
MARCH 31, 2005
(UNAUDITED)
GOVERNMENT AGENCY BONDS - 41.29% (CONTINUED)
PRINCIPAL
FEDERAL HOME LOAN BANK - 23.22% - CONTINUED AMOUNT VALUE
-------------- --------------
FHLB, 3.030%, 2/03/2006 $ 5,000,000 $ 4,975,035
FHLB, 4.500%, 6/30/2008 500,000 500,465
FHLB, 2.100%, 12/29/2006 15,000 14,546
FHLB, 3.000%, 10/28/2009 (a) 490,000 486,817
FHLB, 2.000%, 4/15/2009 1,000,000 987,699
FHLB, 3.550%, 11/07/2007 680,000 670,859
FHLB, 3.000%, 6/12/2018 (a) 1,500,000 1,476,534
FHLB, 2.500%, 4/20/2009 (a) 1,000,000 992,387
FHLB, 3.500%, 12/17/2019 (a) 2,000,000 2,002,380
FHLB, 4.000%, 6/17/2008 1,000,000 992,218
FHLB, 2.900%, 9/01/2006 (a) 2,000,000 2,000,000
FHLB, 2.980%, 2/22/2007 (a) 5,000,000 5,000,000
FHLB, 2.750%, 2/06/2006 (a) 2,500,000 2,492,185
FHLB, 4.200%, 12/29/2014 (a) 5,000,000 5,005,600
--------------
53,409,899
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 4.45%
FHLMC, 2.125%, 12/14/2005 540,000 534,847
FHLMC, 4.375%, 7/30/2009 2,000,000 1,969,188
FHLMC, 3.250%, 1/25/2008 (a) 1,000,000 993,693
FHLMC, 3.1925%, 1/23/2009 (a) 75,000 75,012
FHLMC, 7.000%, 6/30/2014 15,000 15,389
FHLMC, 3.000%, 5/28/2008 (a) 2,160,000 2,135,750
FHLMC, 3.420%, 6/2/2009 (a) 1,000,000 1,000,003
FHLMC, 8.000%, 6/6/2017 500,000 503,841
FHLMC, 4.125%, 5/12/2005 (a) 3,000,000 2,996,460
--------------
10,224,183
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.49%
FNMA, 2.500%, 2/12/2007 (a) 2,000,000 1,974,316
FNMA, 2.610%, 8/18/2006 150,000 147,487
FNMA, 3.000%, 7/26/2006 (a) 2,000,000 1,991,626
FNMA, 4.040%, 3/16/2009 1,405,000 1,385,433
FNMA, 3.010%, 12/29/2006 4,000,000 3,991,696
FNMA, 4.000%, 8/20/2008 422,000 417,577
FNMA, 4.000%, 9/30/2014 3,000,000 2,968,329
FNMA, 3.000%, 9/30/2009 (a) 3,000,000 2,984,214
FNMA, 5.500%, 7/18/2012 3,000,000 3,018,969
FNMA, 5.500%, 10/15/2013 250,000 247,305
FNMA, 4.000%, 2/03/2020 (a) 2,000,000 1,987,300
FNMA, 3.000%, 8/18/2006 3,000,000 2,965,308
FNMA, 2.000%, 4/28/2006 (a) 50,000 49,687
FNMA, 4.000%, 11/09/2009 5,000,000 4,901,805
FNMA, 3.000%, 8/10/2009 (a) 2,000,000 1,994,134
--------------
31,025,186
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TOTAL GOVERNMENT AGENCY BONDS (COST $95,518,346) 94,956,665
--------------
MUNICIPAL BONDS - 0.01%
Jefferson Franklin College, 4.500%, 11/1/2009 25,000 24,877
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TOTAL MUNICIPAL BONDS (COST $25,000) 24,877
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See accompanying notes which are an integral part of the financial statements.
4
IRON MARKET OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS - CONTINUED
MARCH 31, 2005
(UNAUDITED)
PREFERRED SECURITIES - 9.90% SHARES VALUE
-------------- --------------
Blackrock Preferred Opportunity Fund - Series T7 40 $ 1,000,000
Blackrock Preferred Opportunity Fund - Series R7 40 1,000,000
Calamos Convertible Opportunity, Inc. Fund - Series W 35 875,000
Calamos Convertible Opportunity, Inc. Fund - Series Th 40 1,000,000
Calamos Convertible Opportunity & Income, Inc. Fund - Series Th7 40 1,000,000
Calamos Convertible Opportunity, Inc. Fund - Series M 40 1,000,000
Calamos Convertible Opportunity, Inc. Fund - Series F 40 1,000,000
Cohen & Steers Reit & Preferred Income Fund Inc. - Series W 40 1,000,000
Cohen & Steers Reit & Preferred Income Fund Inc. - Series M 40 1,000,000
Cohen & Steers Advantage Income Realty Fund Inc.- Series Th 40 1,000,000
Cohen & Steers Advantage Income Realty Fund Inc. - Series W 40 1,000,000
Cohen & Steers Advantage Income Realty Fund Inc. - Series M7 40 1,000,000
Eaton Vance Limited Duration Income Fund - Series A 40 1,000,000
Eaton Vance Senior Floating Rate Trust - Series B 40 1,000,000
Eaton Vance Tax-Advantage Dividend Income Fund - Series Th7 40 1,000,000
Flaherty & Crumrine/Claymore Preferred Securities Income Fund - Series W7 40 1,000,000
Flaherty & Crumrine/Claymore Preferred Securities Income Fund - Series F7 40 1,000,000
ING Prime Rate Trust - Series F 40 1,000,000
ING Prime Rate Trust - Series W 40 1,000,000
John Hancock Preferred Income Fund II - Series Th 40 1,000,000
Neuberger Berman Realty Income Fund - Series D 36 900,000
Preferred Income Strategies Fund Inc. - Series Th7 40 1,000,000
Van Kampen Senior Income Trust - Series Th 40 1,000,000
--------------
TOTAL PREFERRED SECURITIES (COST $22,775,000) 22,775,000
--------------
MUTUAL FUNDS - 7.83% SHARES VALUE
-------------- --------------
Eaton Vance Floating Rate Mutual Fund 145,976 1,446,620
Fidelity Floating Rate High Income Fund 100,000 997,003
Franklin Floating Rate Daily Access Fund 1,531,153 15,556,517
--------------
TOTAL MUTUAL FUNDS (COST $17,945,572) 18,000,140
--------------
PRINCIPAL
AMOUNT
--------------
COMMERCIAL PAPER - 26.89%
Abbot Commercial Paper 4/01/2005 $ 10,000,000 10,000,000
Anheuser-Busch Commercial Paper 4/01/2005 10,000,000 10,000,000
BP Commercial Paper 4/01/2005 2,870,000 2,870,000
Lehman Commercial Paper 4/01/2005 10,000,000 10,000,000
Lockhart Commercial Paper 5/06/2005 9,000,000 8,975,217
Rabobank Commercial Paper 4/01/2005 10,000,000 10,000,000
USB Financial Commercial Paper 4/01/2005 10,000,000 10,000,000
--------------
TOTAL COMMERCIAL PAPER (COST $61,845,217) 61,845,217
--------------
MONEY MARKET SECURITIES - 0.00%
First American Prime Obligations Fund, 1.970% (a) 11,223 11,223
--------------
TOTAL MONEY MARKET SECURITIES (COST $11,223) 11,223
--------------
TOTAL INVESTMENTS (COST $230,250,263) - 99.86% 229,659,265
--------------
OTHER ASSETS LESS LIABILITIES - 0.14% 332,731
--------------
TOTAL NET ASSETS - 100.00% $ 229,991,996
==============
(a) Variable rate security; the coupon rate shown represents that rate at March
31, 2005.
See accompanying notes which are an integral part of the financial statements.
5
IRON MARKET OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2005
(UNAUDITED)
ASSETS
Investments in securities, at value (cost $230,250,263) $ 229,659,265
Interest receivable 631,243
Receivable for fund shares sold 400,000
Dividends receivable 99,182
Prepaid expenses 36,884
Other receivables 8,990
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TOTAL ASSETS 230,835,564
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LIABILITIES
Payable for fund shares redeemed 722,532
Payable to adviser 95,044
Payable to affiliates 14,908
Accrued expenses and other liabilities 11,084
-----------------
TOTAL LIABILITIES 843,568
-----------------
NET ASSETS $ 229,991,996
=================
NET ASSETS CONSIST OF:
Paid in capital $ 230,426,709
Accumulated undistributed net investment income 84,045
Accumulated net realized gain from investment transactions 72,240
Net unrealized (depreciation) on investments (590,998)
-----------------
NET ASSETS $ 229,991,996
=================
SHARES OUTSTANDING (unlimited number of shares authorized) 23,119,282
-----------------
Net Asset Value,
Offering and redemption price per share $ 9.95
=================
See accompanying notes which are an integral part of the financial statements.
6
IRON MARKET OPPORTUNITY FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005
(UNAUDITED)
INVESTMENT INCOME
Dividend income $ 769,372
Interest income 2,249,108
--------------
TOTAL INCOME 3,018,480
--------------
EXPENSES
Investment adviser fee 906,142
Administration expenses 59,587
Fund accounting expenses 34,664
Custodian expenses 17,508
Transfer agent expenses 9,074
Auditing expenses 7,480
Legal expenses 4,273
Insurance expenses 4,017
Miscellaneous expenses 2,921
Pricing expenses 2,208
Chief compliance officer expense 2,162
Trustee expenses 1,663
Registration expenses 1,613
Printing expenses 515
--------------
TOTAL EXPENSES 1,053,827
Waived fees (a) (453,071)
--------------
Net operating expenses 600,756
--------------
NET INVESTMENT INCOME 2,417,724
--------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 621,658
Change in net unrealized appreciation (depreciation)
on investment securities 66,150
--------------
Net realized and unrealized gain on investment securities 687,808
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,105,532
==============
(a) See note 3 to the financial statements.
See accompanying notes which are an integral part of the financial statements.
7
IRON MARKET OPPORTUNITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
MARCH 31, 2005 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2004
--------------------- ---------------------------
OPERATIONS
Net investment income $ 2,417,724 $ 2,905,474
Net realized gain on investment securities 621,658 736,117
Change in net unrealized appreciation (depreciation) 66,150 (688,575)
--------------------- ---------------------------
Net increase in net assets resulting from operations 3,105,532 2,953,016
--------------------- ---------------------------
DISTRIBUTIONS
From net investment income (2,376,188) (2,887,782)
From net realized gain - (748,902)
--------------------- ---------------------------
Total distributions (2,376,188) (3,636,684)
--------------------- ---------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 154,085,302 192,387,048
Reinvestment of distributions 1,877,958 2,799,670
Amount paid for shares repurchased (74,769,237) (124,002,439)
--------------------- ---------------------------
Net increase in net assets resulting
from capital share transactions 81,194,023 71,184,279
--------------------- ---------------------------
TOTAL INCREASE IN NET ASSETS 81,923,367 70,500,611
--------------------- ---------------------------
NET ASSETS
Beginning of period 148,068,629 77,568,018
--------------------- ---------------------------
End of period $ 229,991,996 $ 148,068,629
===================== ===========================
Accumulated undistributed net investment income $ 84,045 $ 42,510
--------------------- ---------------------------
CAPITAL SHARE TRANSACTIONS
Shares sold 15,440,650 19,423,908
Shares issued in reinvestment of distributions 188,741 281,830
Shares repurchased (7,499,128) (12,511,424)
--------------------- ---------------------------
Net increase from capital share transactions 8,130,263 7,194,314
===================== ===========================
See accompanying notes which are an integral part of the financial statements.
8
IRON MARKET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING DURING THE PERIOD
PERIOD ENDED FOR THE
MARCH 31, 2005 YEAR ENDED YEAR ENDED PERIOD ENDED
(UNAUDITED) SEPTEMBER 30, 2004 SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 (a)
---------------- --------------------- --------------------- ---------------------
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 9.88 $ 9.95 $ 9.75 $ 10.00
---------------- --------------------- --------------------- ---------------------
Income from investment operations
Net investment income 0.12 0.28 0.28 0.38
Net realized and unrealized gain (loss) 0.07 0.02 0.20 (0.29)
---------------- --------------------- --------------------- ---------------------
Total from investment operations 0.19 0.30 0.48 0.09
---------------- --------------------- --------------------- ---------------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.12) (0.28) (0.28) (0.34)
From net realized gain - (0.09) - -
---------------- --------------------- --------------------- ---------------------
Total distributions (0.12) (0.37) (0.28) (0.34)
---------------- --------------------- --------------------- ---------------------
Net asset value, end of period $ 9.95 $ 9.88 $ 9.95 $ 9.75
================ ===================== ===================== =====================
TOTAL RETURN (b) 1.88% (c) 3.12% 4.95% 0.90% (c)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $ 229,992 $ 148,069 $ 77,568 $ 26,358
Ratio of expenses to average net assets 0.66% (d) 0.72% 0.90% 1.45% (d)
Ratio of expenses to average net assets
before waiver & reimbursement 1.16% (d) 1.22% 1.33% 1.45% (d)
Ratio of net investment income to
average net assets 2.66% (d) 2.99% 3.10% 3.94% (d)
Ratio of net investment income to
average net assets before waiver 2.16% (d) 2.49% 2.67% 3.94% (d)
Portfolio turnover rate 92.04% 59.05% 92.97% 626.51%
(a) For the period October 11, 2001 (commencement of operations) to September
30, 2002.
(b) Total return in the above table represents the rate that the investor would
have earned or lost on an investment in the Fund, assuming reinvestment of
dividends.
(c) Not annualized.
(d) Annualized.
See accompanying notes which are an integral part of the financial statements.
9
IRON MARKET OPPORTUNITY FUND
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2005
(UNAUDITED)
NOTE 1. ORGANIZATION
The Iron Market Opportunity Fund (the "Fund") was organized as a diversified
series of AmeriPrime Advisors Trust (the "Trust") on July 1, 2001 and commenced
operations October 11, 2001. The Trust is an open-end investment company
established under the laws of Ohio by an Agreement and Declaration of Trust
dated August 3, 1999 (the "Trust Agreement"). The Trust Agreement permits the
Board of Trustees of the Trust (the "Board") to issue an unlimited number of
shares of beneficial interest of separate series. The Fund is one of a series of
funds currently offered by the Trust. The Fund's investment objective is to
maximize total return while maintaining low volatility in share price. The Fund
invests primarily in a broad range of fixed income securities (including
investments, which may be extensive, in other mutual funds that invest primarily
in fixed income securities). The investment adviser to the Fund is Iron
Financial Management, Inc. (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.
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 Adviser 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
Adviser 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 Adviser, in conformity with guidelines
adopted by and subject to review of the Board.
Fixed income securities generally are valued by using market quotations, but may
be valued on the basis of prices furnished by a pricing service when the 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, subject to
review of the Board of Trustees. Short term investments in fixed income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
Federal Income Taxes - There is no provision for federal income tax. Each 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 all of its taxable income. If the required amount of net investment
income is not distributed, the Fund could incur a tax expense.
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.
10
IRON MARKET OPPORTUNITY FUND
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Distributions to Shareholders - The Fund intends to distribute all of its net
investment income, if any, as dividends to shareholders on an annual basis. The
Fund intends to distribute its net realized long-term capital gains and net
realized short-term capital gains, if any, 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
Under the terms of the management agreement, (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board. As compensation
for its management services, the Fund is obligated to pay the Adviser a fee
computed and accrued daily and paid monthly at an annual rate of 1.00% of the
average daily net assets of the Fund. Effective October 1, 2003, the Adviser has
contractually agreed to waive one-half of its management fees through January
31, 2006. For the six months ended March 31, 2005, the Adviser earned fees,
before the waiver, totaling, $906,142 and after the waiver, of $453,071. At
March 31, 2005, the Fund owed the Advisor $95,044.
The Trust retains Unified Fund Services, Inc. ("Unified"), a wholly owned
subsidiary of Unified Financial Services, Inc., to manage the Fund's business
affairs and 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 up to $50 million, 0.07% of the Fund's assets from $50 million to
$100 million, and 0.05% of the Fund's assets over $100 million (subject to a
minimum fee of $2,500 per month). For the six months ended March 31, 2005,
Unified earned fees of $59,587 for administrative services provided to the Fund.
A trustee and the officers of the Trust are members of management and/or
employees of Unified and/or shareholders of Unified Financial Services, Inc.
(the parent of Unified).
The Trust retains Unified to act as the Fund's transfer agent and to provide
fund accounting services. 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). For the six months ended March 31, 2005, Unified earned fees of
$7,693 from the Fund for transfer agent services provided to the Fund and was
reimbursed for $1,381 of 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, and
0.03% of the Fund's assets over $100 million (subject to various monthly minimum
fees, the maximum being $1,667 per month for assets of $10 million or more). For
the six months ended March 31, 2005, Unified earned fees of $34,664 from the
Fund for fund accounting services provided to the Fund.
Unified Financial Securities, Inc. (the "Distributor") acts as the principal
distributor of the Fund's shares. The Fund has adopted a plan, pursuant to Rule
12b-1 under the Investment Company Act of 1940 that permits the Fund to pay
certain distribution and promotion expenses related to marketing shares of the
Fund; however the plan has not been activated. As a result there were no 12b-1
payments made to the Distributor for the six months ended March 31, 2005. A
Trustee has an ownership interest in Unified Financial Services, 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 Services, Inc. As a result, those persons may be deemed to be
affiliates of the Distributor.
11
IRON MARKET OPPORTUNITY FUND
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 4. INVESTMENTS
For the six months ended March 31, 2005, purchases and sales of investment
securities, other than short-term investments and short-term U.S. government
obligations, were as follows:
PURCHASES
U.S. Government Obligations $ 68,123,422
Other 75,632,725
SALES
U.S. Government Obligations $ 21,828,460
Other 99,185,088
As of March 31, 2005, the net unrealized (depreciation) of investments for tax
purposes was as follows:
Gross appreciation $ 210,076
Gross depreciation (801,074)
-------------------
Net (depreciation)
on investments $ (590,998)
===================
At March 31, 2005, the aggregate cost of securities for federal income tax
purposes was $230,250,263.
NOTE 5. ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles 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 March 31, 2005,
Fabco & Co. owned 69.59% of the Fund, for the benefit of others.
NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during fiscal years 2004 and 2003 was as
follows:
2004 2003
---- ----
Distributions paid from
Ordinary Income $ 2,887,782 $ 1,728,542
Short-term Capital Gain 590,189 -
Long-term Capital Gain 158,713 -
----------------- -----------------
$ 3,636,684 $ 1,728,542
================= =================
12
IRON MARKET OPPORTUNITY FUND
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2005 - CONTINUED
(UNAUDITED)
NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
For the fiscal year ended September 30, 2004 and the six months ended March 31,
2005, the Fund paid quarterly distributions of net investment income totaling
$0.2804 and $0.1156 per share, respectively. Capital gain distributions in the
amount of $0.0939 per share were paid December 30, 2003, to shareholders of
record on December 29, 2003. The Fund did not make any capital gain
distributions for the six months ended March 31, 2005.
As of September 30, 2004, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
Undistributed ordinary income/(accumulated losses) $ 42,510
Undistributed long-term capital gain/(accumulated losses) (547,490)
Unrealized appreciation/(depreciation) (659,077)
---------------
$ (1,164,057)
===============
The difference between book basis and tax basis unrealized depreciation is
attributable primarily to the tax deferral of losses on wash sales.
13
The Fund's Statement of Additional Information ("SAI") includes information
about the trustees and is available, without charge, upon request. You may call
toll-free (877) 322-0575 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 those proxies during the 12-month period ended June 30, 2004 are
available without charge, upon request: (1) by calling the Fund at (877)
322-0575; and (2) on the Commission's website at www.sec.gov.
TRUSTEES
Stephen A. Little, Chairman
Gary E. Hippenstiel
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 ADVISER
Iron Financial
Two Northfield Plaza
Suite 250
Northfield, IL 60093
DISTRIBUTOR
Unified Financial Securities, Inc.
431 N. Pennsylvania St.
Indianapolis, IN 46204
INDEPENDENT ACCOUNTANTS
Cohen McCurdy, Ltd.
826 Westpoint Parkway, Suite 1250
Westlake, OH 44145
LEGAL COUNSEL
Thompson Hine LLP
312 Walnut St., Suite 1400
Cincinnati, OH 45202
CUSTODIAN
U.S. Bank, N.A.
425 Walnut St.
Cincinnati, OH 45202
ADMINISTRATOR, TRANSFER AGENT
AND FUND ACCOUNTANT
Unified Fund Services, Inc.
431 N. Pennsylvania St.
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
14
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.
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/ Anthony Ghoston
----------------------------------------------------------------
Anthony Ghoston, President
Date 6/2/05
------------------------------------------------------------
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 6/2/05
------------------------------------------------------------
By
* /s/ Thomas Napurano
---------------------------------------------------------------
Thomas Napurano, Chief Financial Officer and Treasurer
Date 6/1/05
------------------------------------------------------------