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)
Unified Fund Services, Inc.
431 N. Pennsylvania Street
Indianapolis, IN 46204
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Freddie Jacobs, Jr.
- ---------------------------
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: 10/31
--------------------
Date of reporting period: 4/30/05
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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.
=================================================
AAM EQUITY FUND
=================================================
SEMI-ANNUAL REPORT
APRIL 30, 2005
(UNAUDITED)
FUND ADVISOR:
APPALACHIAN ASSET MANAGEMENT, INC.
1018 KANAWHA BOULEVARD EAST
SUITE 301
CHARLESTON, WEST VIRGINIA 25301
TOLL FREE (888) 905-2283
FUND HOLDINGS - (UNAUDITED)
- -------------
AAM EQUITY FUND HOLDINGS AS OF APRIL 30, 2005 1
[CHART OMITTED]
Domestic Common Stocks 92.85%
American Depositary Receipts 6.17%
Other assets in excess of liabilities 0.98%
1 As a percentage of net assets.
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.
1
SUMMARY OF FUND'S EXPENSES - (UNAUDITED)
- --------------------------
As a shareholder of the Fund, you incur ongoing costs, including management fees
and trustee 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 (November 1, 2004) and held for the entire period (through April 30,
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.
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 are
not the Fund's actual returns. 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.
Expenses shown are meant to highlight your ongoing costs only and do not reflect
any transactional costs such as the redemption fee imposed on short-term
redemptions. The second line of the table below is useful in comparing ongoing
costs only and will not help you determine the relative costs of owning
different funds. If incurred, the short-term redemption fee imposed by the Fund
would increase your expenses.
--------------------------------- --------------------- -------------------------- --------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
AAM EQUITY FUND VALUE VALUE PERIOD* ENDED
NOVEMBER 1, 2004 APRIL 30, 2005 APRIL 30, 2005
--------------------------------- --------------------- -------------------------- --------------------------
Actual $1,000.00 $1,048.42 $5.84
--------------------------------- --------------------- -------------------------- --------------------------
Hypothetical $1,000.00 $1,019.09 $5.76
(5% return before expenses)
--------------------------------- --------------------- -------------------------- --------------------------
*Expenses are equal to the Fund's annualized expense ratio of 1.15%, multiplied
by the average account value over the period, multiplied by 181/365 (to reflect
the number of days in the period).
2
AAM EQUITY FUND
SCHEDULE OF INVESTMENTS
APRIL 30, 2005 (UNAUDITED)
COMMON STOCKS - 99.02% SHARES VALUE
-------------- -----------------
AIRCRAFT ENGINES & ENGINE PARTS - 2.57%
United Technologies Corp. 3,000 $ 305,160
-----------------
BIOLOGICAL PRODUCTS - 2.45%
Amgen, Inc. (a) 5,000 291,050
-----------------
CHEMICAL & ALLIED PRODUCTS - 1.93%
Dow Chemical Co. 5,000 229,650
-----------------
COMPUTER COMMUNICATION EQUIPMENT - 1.89%
Cisco Systems, Inc. (a) 13,000 224,640
-----------------
CRUDE PETROLEUM & NATURAL GAS - 2.40%
EOG Resources, Inc. 6,000 285,300
-----------------
ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS - 2.66%
Medtronic, Inc. 6,000 316,200
-----------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT - 2.29%
General Electric Co. 7,500 271,500
-----------------
ELECTRONIC COMPUTERS - 2.35%
Dell, Inc. (a) 8,000 278,640
-----------------
FARM MACHINERY & EQUIPMENT - 2.11%
Deere & Co. 4,000 250,160
-----------------
FINANCE SERVICES - 2.00%
American Express Co. 4,500 237,150
-----------------
FIRE, MARINE & CASUALTY INSURANCE - 4.52%
Berkshire Hathaway, Inc. - Class B (a) 100 279,801
Markel Corp. (a) 750 257,325
-----------------
537,126
-----------------
HOSPITAL & MEDICAL SERVICE PLANS - 2.15%
Wellpoint, Inc. (a) 2,000 255,500
-----------------
INDUSTRIAL INORGANIC CHEMICALS - 2.36%
Praxair, Inc. 6,000 280,980
-----------------
LIFE INSURANCE - 2.11%
Jefferson-Pilot Corp. 5,000 251,050
-----------------
METAL MINING - 2.03%
Rio Tinto Plc. (b) 2,000 241,200
-----------------
MISCELLANEOUS MANUFACTURING INDUSTRIES - 2.26%
International Game Technology 10,000 268,900
-----------------
See accompanying notes which are an integral part of the financial statements.
3
AAM EQUITY FUND
SCHEDULE OF INVESTMENTS - CONTINUED
APRIL 30, 2005 (UNAUDITED)
COMMON STOCKS - 99.02% - CONTINUED SHARES VALUE
-------------- -----------------
NATIONAL COMMERCIAL BANKS - 4.43%
Bank of America Corp. 6,000 $ 270,240
Wachovia Corp. 5,000 255,900
-----------------
526,140
-----------------
OIL & GAS FIELD SERVICES - 1.73%
Schlumberger Ltd. 3,000 205,230
-----------------
ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES - 2.06%
Zimmer Holdings, Inc. (a) 3,000 244,260
-----------------
PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS - 4.04%
Colgate-Palmolive Co. 5,000 248,950
Estee Lauder Companies, Inc. - Class A 6,000 230,460
-----------------
479,410
-----------------
PERSONAL CREDIT INSTITUTIONS - 1.79%
Capital One Financial Corp. 3,000 212,670
-----------------
PETROLEUM REFINING - 9.03%
BP Plc. (b) 4,000 243,600
Exxon Mobil Corp. 5,000 285,150
Murphy Oil Corp. 3,000 267,270
Suncor Energy, Inc. 7,500 276,450
-----------------
1,072,470
-----------------
PHARMACEUTICAL PREPARATIONS - 7.29%
Eli Lilly & Co. 5,000 292,350
Johnson & Johnson 4,000 274,520
Pfizer, Inc. 11,000 298,870
-----------------
865,740
-----------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES - 1.89%
Eastman Kodak Co. 9,000 225,000
-----------------
RADIOTELEPHONE COMMUNICATIONS - 1.90%
Dominion Resources, Inc. 3,000 226,200
-----------------
REAL ESTATE AGENTS & MANAGERS - 1.68%
Cendant Corp. 10,000 199,100
-----------------
RETAIL - AUTO DEALERS & GASOLINE STATIONS - 1.95%
Carmax, Inc. (a) 8,500 231,880
-----------------
RETAIL - DRUG STORES & PROPRIETARY STORES - 2.17%
Walgreen Co. 6,000 258,360
-----------------
RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS - 2.19%
Lowe's Companies, Inc. 5,000 260,550
-----------------
See accompanying notes which are an integral part of the financial statements.
4
AAM EQUITY FUND
SCHEDULE OF INVESTMENTS - CONTINUED
APRIL 30, 2005 (UNAUDITED)
COMMON STOCKS - 99.02% - CONTINUED SHARES VALUE
-------------- -----------------
RETAIL - VARIETY STORES - 1.59%
Wal Mart Stores, Inc. 4,000 $ 188,560
-----------------
SERVICES - MISCELLANEOUS AMUSEMENT & RECREATION - 3.88%
Harrahs Entertainment, Inc. 3,000 196,860
Walt Disney Co. 10,000 264,000
-----------------
460,860
-----------------
SERVICES - PREPACKAGED SOFTWARE - 3.89%
Check Point Software Technologies Ltd. (a) 10,000 209,500
Microsoft Corp. 10,000 253,000
-----------------
462,500
-----------------
SHIP & BOAT BUILDING & PREPARING - 2.39%
General Dynamics Corp. 2,700 283,635
-----------------
SUGAR & CONFECTIONERY PRODUCTS - 2.91%
Wrigley WM Jr. Co. 5,000 345,650
-----------------
TELEPHONE COMMUNICATIONS - 2.09%
America Movil - Series L (b) 5,000 248,250
-----------------
WHOLESALE - GROCERIES & RELATED PRODUCTS - 2.04%
Sysco Corp. 7,000 242,200
-----------------
TOTAL COMMON STOCKS (COST $10,037,204) 11,762,871
-----------------
TOTAL INVESTMENTS (COST $10,037,204) - 99.02% $ 11,762,871
-----------------
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.98% 115,861
-----------------
TOTAL NET ASSETS - 100.00% $ 11,878,732
=================
(a) Non-income producing.
(b) American Depositary Receipts.
See accompanying notes which are an integral part of the financial statements.
5
AAM EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2005 (UNAUDITED)
ASSETS
Investments in securities, at value (cost $10,037,204) $ 11,762,871
Receivable for Fund shares sold 150,000
Dividends receivable 5,710
Interest receivable 466
------------------
TOTAL ASSETS 11,919,047
------------------
LIABILITIES
Payable to custodian 29,560
Payable to Advisor 10,723
Trustee fees accrued 32
------------------
TOTAL LIABILITIES 40,315
------------------
NET ASSETS $ 11,878,732
==================
NET ASSETS CONSIST OF:
Paid in capital 9,480,120
Accumulated undistributed net investment income 7,868
Accumulated net realized gain from investment transactions 665,077
Net unrealized appreciation on investments 1,725,667
------------------
NET ASSETS $ 11,878,732
==================
Shares outstanding (unlimited number of shares authorized) 1,130,729
------------------
Net Asset Value,
offering and redemption price per share $ 10.51
==================
See accompanying notes which are an integral part of the financial statements.
6
AAM EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2005 (UNAUDITED)
INVESTMENT INCOME
Dividend income $ 131,180
Interest income 2,021
--------------
TOTAL INVESTMENT INCOME 133,201
--------------
EXPENSES
Investment advisor fee 79,155
Trustee expenses 1,951
--------------
TOTAL EXPENSES 81,106
Less: Reimbursement by Advisor (a) (1,951)
--------------
Net operating expenses 79,155
--------------
NET INVESTMENT INCOME 54,046
--------------
REALIZED & UNREALIZED GAIN (LOSS)
Net realized gain on investment securities 665,123
Change in net unrealized appreciation (depreciation)
on investment securities 72,175
--------------
Net realized and unrealized gain on investment securities 737,298
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 791,344
==============
(a) See Note 3 to the financial statements.
See accompanying notes which are an integral part of the financial statements.
7
AAM EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
APRIL 30, 2005 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2004
------------------------ ------------------------
OPERATIONS
Net investment income $ 54,046 $ 37,956
Net realized gain on investment securities 665,123 1,534,722
Change in net unrealized appreciation (depreciation) on investments 72,175 (375,538)
------------------------ ------------------------
Net increase in net assets resulting from operations 791,344 1,197,140
------------------------ ------------------------
DISTRIBUTIONS
From net investment income (69,963) (60,011)
From net realized gain (551,561) -
------------------------ ------------------------
Total distributions (621,524) (60,011)
------------------------ ------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Fund shares sold 3,795,327 9,175,749
Reinvestment of distributions 115,048 3,501
Amount paid for Fund shares repurchased (6,588,632) (13,159,746)
------------------------ ------------------------
Net (decrease) in net assets resulting
from capital share transactions (2,678,257) (3,980,496)
------------------------ ------------------------
TOTAL (DECREASE) IN NET ASSETS (2,508,437) (2,843,367)
------------------------ ------------------------
NET ASSETS
Beginning of year 14,387,169 17,230,536
------------------------ ------------------------
End of year $ 11,878,732 $ 14,387,169
======================== ========================
Accumulated undistributed net investment income
included in net assets at end of period $ 7,868 $ 23,785
------------------------ ------------------------
CAPITAL SHARE TRANSACTIONS
Shares sold 350,021 887,602
Shares issued in reinvestment of distributions 10,584 340
Shares repurchased (608,230) (1,267,027)
------------------------ ------------------------
Net (decrease) from capital share transactions (247,625) (379,085)
======================== ========================
See accompanying notes which are an integral part of the financial statements.
8
AAM EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2005
(UNAUDITED) 2004 2003 2002 2001 2000
----------------- ---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA:
Net asset value, beginning of period $ 10.44 $ 9.80 $ 8.48 $ 9.63 $ 11.53 $ 10.99
----------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.04 0.03 0.04 0.09 0.05 0.03
Net realized and unrealized gain (loss) 0.48 0.65 1.36 (1.19) (1.92) 0.55
----------------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.52 0.68 1.40 (1.10) (1.87) 0.58
----------------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (0.05) (0.04) (0.08) (0.05) (0.03) (0.04)
From net realized gain (0.40) - - - - -
----------------- ---------- ---------- ---------- ---------- ----------
Total distributions (0.45) (0.04) (0.08) (0.05) (0.03) (0.04)
----------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 10.51 $ 10.44 $ 9.80 $ 8.48 $ 9.63 $ 11.53
================= ========== ========== ========== ========== ==========
TOTAL RETURN (a) 4.84% (b) 6.89% 16.58% -11.49% -16.28% 5.28%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 11,879 $ 14,387 $ 17,231 $ 7,857 $ 5,371 $ 5,295
Ratio of expenses to average net assets 1.15% (c) 1.15% 1.15% 1.20% 1.15% 1.15%
Ratio of expenses to average net assets
before reimbursement 1.18% (c) 1.17% 1.20% 1.33% 1.30% 1.35%
Ratio of net investment income to
average net assets 0.79% (c) 0.26% 0.47% 0.95% 0.46% 0.22%
Ratio of net investment income to
average net assets before reimbursement 0.76% (c) 0.24% 0.41% 0.83% 0.30% 0.02%
Portfolio turnover rate 7.83% 49.76% 34.26% 20.06% 21.63% 32.79%
(a) 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.
(b) Not annualized.
(c) Annualized.
See accompanying notes which are an integral part of the financial statements.
9
AAM EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2005
(UNAUDITED)
NOTE 1. ORGANIZATION
AAM Equity Fund (the "Fund") was organized as a diversified series of the
AmeriPrime Funds (the "Trust") on April 7, 1998. The Trust is a registered
open-end investment company, established under the laws of Ohio by an Agreement
and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Trust
Agreement permits the Board of Trustees of the Trust (the "Board") to issue an
unlimited number of shares of beneficial interest of separate series. The Fund
is one of a series of funds currently authorized by the Board. The Fund
commenced operations on June 30, 1998. The Fund's investment objective is to
provide long-term capital appreciation. The Fund's advisor is Appalachian Asset
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. For example, if trading in a
stock is halted and does not resume before the Fund calculates its NAV, the
Advisor may need to price the security using the good faith pricing guidelines.
Without a fair value price, short-term traders could take advantage of the
arbitrage opportunity and dilute the NAV of long-term investors. Fair valuation
of the Fund's portfolio securities can serve to reduce arbitrage opportunities
available to short-term traders, but there is no assurance that fair value
pricing policies will prevent dilution of the Fund's NAV by short-term traders.
Fixed income securities generally are valued by using market quotations, but may
be valued on the basis of prices furnished by a pricing service when the Advisor
believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. If the Advisor decides that a price
provided by the pricing service does not accurately reflect the fair market
value of the securities, when prices are not readily available from a pricing
service, or when restricted or illiquid securities are being valued, securities
are valued at fair value as determined in good faith by the Advisor, in
conformity with guidelines adopted by and subject to review of the Board.
Short-term investments in fixed income securities with maturities of less than
60 days when acquired, or which subsequently are within 60 days of maturity, are
valued by using the amortized cost method of valuation, which the Board has
determined will represent fair value.
Federal Income Taxes - There is no provision for federal income tax. The Fund
intends to 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.
10
AAM EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 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 or accreted using the effective interest
method.
Dividends and Distributions - The Fund typically distributes substantially all
of its net investment income in the form of dividends and taxable capital gains
to its shareholders. These distributions, which are recorded on the ex-dividend
date, are automatically reinvested in the Fund unless shareholders request cash
distributions on their application or through a written request. The Fund
expects that its distributions will consist primarily of capital gains and will
be made at least annually.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of the management agreement (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board and pays all of
the expenses of the Fund except brokerage fees and commissions, taxes, borrowing
costs (such as (a) interest and (b) dividend expenses on securities sold short),
fees and expenses of disinterested person trustees and extraordinary expenses
(including organizational expenses). As compensation for its management services
and agreement to pay the Fund's expenses, the Fund is obligated to pay the
Advisor a fee computed and accrued daily and paid monthly at an annual rate of
1.15% of the average daily net assets of the Fund. The Advisor has also
contractually agreed through February 28, 2006 to reimburse the Fund for the
fees and expenses of the disinterested Trustees to the extent necessary to
maintain the Fund's total annual operating expenses at 1.15% of average daily
net assets. For the six months ended April 30, 2005, the Advisor earned fees of
$79,155 from the Fund before reimbursement of $1,951 in Fund expenses. As of
April 30, 2005, the Fund owed the Advisor $10,723.
Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified
Financial Services, Inc., manages the Fund's business affairs and provides the
Fund with administrative services, fund accounting and transfer agency services,
including all regulatory reporting and necessary office equipment and personnel.
The Advisor pays all administrative, transfer agency and fund accounting fees on
behalf of the Fund per the Agreement. 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 of Unified).
Unified Financial Securities, Inc. (the "Distributor") acts as the principal
distributor of the Fund's shares. There were no payments made by the Fund to the
Distributor during the six months ended April 30, 2005. A Trustee of the Trust
is a shareholder of 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 Securities, Inc. As
a result, those persons may be deemed to be affiliates of the Distributor.
11
AAM EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2005 - CONTINUED
(UNAUDITED)
NOTE 4. INVESTMENTS
For the six months ended April 30, 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 $ -
Other 1,053,891
SALES
U.S. Government Obligations $ -
Other 4,061,515
As of April 30, 2005, the net unrealized appreciation of investments for tax
purposes was as follows:
Gross Appreciation $ 2,025,813
Gross (Depreciation) (300,146)
--------------
Net Appreciation
on Investments $ 1,725,667
==============
At April 30, 2005, the aggregate cost of securities for federal income tax
purposes was $10,037,204.
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 April 30, 2005,
RSBCO was the record owner of 73.83% of the outstanding shares of the Fund.
Shares held by RSBCO are beneficially owned by discretionary investment advisory
clients of AAM Investments, LLC. As a result, AAM Investments, LLC, which is a
related party of the Advisor, may be deemed to beneficially own these shares and
may be deemed to control the Fund.
NOTE 7. DISTRIBUTION TO SHAREHOLDERS
The tax character of distributions paid during fiscal years 2004 and 2003 were
as follows:
Distributions paid from: 2004 2003
---------------- ------------------
Ordinary income $ 60,111 $ 70,691
Long-term Capital Gain - -
---------------- ------------------
$ 60,111 $ 70,691
================ ==================
On December 29, 2004, the Fund paid an ordinary income dividend of $0.0507 per
share and a long-term capital gain distribution of $0.3997 to shareholders of
record on December 28, 2004.
12
AAM EQUITY FUND
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 2005 - CONTINUED
(UNAUDITED)
NOTE 7. DISTRIBUTION TO SHAREHOLDERS - CONTINUED
As of October 31, 2004, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income/(accumulated losses) $ 23,785
Undistributed long-term capital gain/(accumulated losses) 551,516
Unrealized appreciation/(depreciation) 1,653,491
---------------
$ 2,228,792
===============
NOTE 8. SUBSEQUENT EVENT
On June 6, 2005, the Fund, then a series of the Trust, assigned all of its
assets and liabilities to the AAM Equity Fund, a series of the Unified Series
Trust, in exchange for a number of AAM Equity Fund Shares equivalent in number
and value to shares of the Fund outstanding immediately prior thereto, followed
by a distribution of those shares to Fund shareholders (the "Shareholders") in
liquidation of their shares of the Fund (this transaction is referred to as the
"Reorganization"). As a result of the Reorganization, the Fund has ceased
operations.
13
OTHER INFORMATION
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 twelve month period ended June 30, 2004
are available without charge upon request by calling the Fund at (888) 905-2283
and in documents filed with the SEC on the SEC'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 Wood, Chief Compliance Officer
INVESTMENT ADVISOR
Appalachian Asset Management, Inc.
1018 Kanawha Boulevard East, Suite 301
Charleston, WV 25301
DISTRIBUTOR
Unified Financial Securities, Inc.
431 N. Pennsylvania Street
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 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
14
ITEM 2. CODE OF ETHICS. NOT APPLICABLE - disclosed with annual report
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. NOT APPLICABLE- disclosed with annual
report
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. NOT APPLICABLE - disclosed with
annual report
ITEM 5. AUDIT COMMITTEE OF LISTED COMPANIES. NOT APPLICABLE - applies to listed
companies only
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 - applies to closed-end funds only
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END FUNDS. NOT APPLICABLE -
applies to closed-end funds only
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.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of June 16, 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 second 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 - filed with annual report
(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 - there were no written solicitations to purchase
securities under Rule 23c-1 during the period
(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 Funds
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By
* /s/ Anthony J. Ghoston
------------------------------------------------------------
Anthony J. Ghoston, President
Date July 11, 2005
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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 J. Ghoston
------------------------------------------------------------
Anthony J. Ghoston, President
Date July 11, 2005
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By
* /s/ Freddie Jacobs, Jr.
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Freddie Jacobs, Jr., Chief Financial Officer and Treasurer
Date July 11, 2005
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