November 6, 1997
Securities and Exchange Commission
Attn: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549
Re:American Trust Allegiance Fund
File No. 333-17391, 811-07959
CIK No. 1027596
Dear Sir or Madam:
On behalf of the above Registrant and pursuant to Rule 30b-2 under the
Investment Company Act of 1940, I enclose for filing via EDGAR, a copy of the
Semi-annual Report to shareholders of the American Trust Allegiance Fund series
of the Registrant for the six month period ended August 31, 1997.
If you have any questions, please contact me at (602) 952-1100.
Sincerely yours,
Robert H. Wadsworth
<PAGE>
American Trust Allegiance Fund
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
AUGUST 31, 1997
<PAGE>
American Trust Allegiance Fund
September 30, 1997
Dear Fellow Shareholder,
We are pleased to send you the American Trust Allegiance Fund's initial
semi-annual report. The first six months of operation have been an exciting time
in terms of growth of the Fund and investment challenges in the U.S. stock
market. As of August 31, 1997, the Fund's assets had increased to $3.6 million.
Our investment discipline is characterized by a "bottom up" focus,
identifying companies that meet our social and financial investment guidelines.
We do not attempt to forecast the stock market, interest rates, inflation, or
the U.S. economy. Rather, all of our research is centered on finding and
analyzing individual companies and, to the extent we can find companies that
satisfy our criteria, we attempt to remain fully invested with minimal cash
holdings. Having eliminated companies with operating activities in the alcohol,
gambling, tobacco, and health care industries, we search for companies which we
believe hold attractive long term growth potential.
Our research efforts have led us to companies which possess, on average,
growth in earnings per share faster than that of the general stock market. We
have also placed a high value on those companies that have demonstrated a more
predictable, consistent record of growth in earnings per share. We have found
the most attractive growth opportunities in the areas of technology, financial
services, and energy and consequently, the Fund's portfolio is overweighted,
relative to the S & P 500 Index, in these sectors.
We thank you for your support and look forward to helping you achieve your
financial goals.
/s/
Paul H. Collins
/s/
Jeffrey M. Harris, CFA
<PAGE>
American Trust Allegiance Fund
TOP 10 HOLDINGS
at August 31, 1997
- --------------------------------------------------------------------------------
Halliburton
Lucent Technologies
Royal Dutch
Schlumberger
Allied Signal, Inc.
Cisco Systems
Franklin Resources
Molex
State Street Bank
Sunamerica
<PAGE>
American Trust Allegiance Fund
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS
at August 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 94.73% Market Value
- --------------------------------------------------------------------------------
Airlines: 0.64%
<S> <C> <C>
800 Southwest Airlines $ 22,400
--------
Banks -
Major Regional : 9.54%
1,350 Fifth Third Bancorp 78,975
1,800 Mellon Bank 86,625
1,400 Northern Trust Corp. 74,375
2,000 State Street Corp. 99,750
------
339,725
-------
Communication -
Equipment: 6.37%
1,300 Lucent Technologies 101,238
900 Motorola, Inc. 66,038
1,000 Tellabs, Inc. Del* 59,688
------
226,964
-------
Computer Hardware: 1.84%
1,000 Compaq Computer Corp.* 65,500
------
Computers -
Networking: 2.75%
1,300 Cisco Systems, Inc.* 97,988
------
Computer Software /
Services: 10.93%
1,150 Computer Assoc. Int'l, Inc. 76,906
1,150 Computer Sci. Corp.* 85,531
600 Microsoft Corp.* 79,313
2,100 Oracle Corp.* 80,063
1,200 Peoplesoft, Inc.* 67,500
------
389,313
-------
Electrical Equipment: 5.09%
1,600 Emerson Electric Co. 87,500
2,400 Molex, Inc. 93,900
------
181,400
-------
<PAGE>
American Trust Allegiance Fund
SCHEDULE OF INVESTMENTS
at August 31, 1997 (Unaudited), Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
Electronics -
Semiconductor: 2.08%
800 Intel Corp. $ 73,700
--------
Entertainment: 2.16%
1,000 Walt Disney Company 76,813
------
Financial (Diverse): 2.57%
1,700 Sunamerica, Inc. 91,588
------
Foods: 4.87%
1,800 Campbell Soup Co. 83,475
1,400 Conagra, Inc. 90,038
------
173,513
-------
Insurance - Brokers: 0.86%
450 Marsh & McLennan, Inc. 30,712
------
Insurance - Multiline: 2.39%
900 American Int'l Group 84,938
------
Investment Bank /
Brokerage: 3.53%
1,200 Franklin Resources 92,850
600 T. Rowe Price Associates 33,000
------
125,850
-------
Manufacture - Diverse: 4.93%
1,100 Allied Signal, Inc. 90,819
1,750 Illinois Tool Works 84,656
------
175,475
-------
Manufacture - Special: 4.25%
1,700 Diebold 78,838
1,400 Sealed Air Corp.* 72,625
------
151,463
-------
<PAGE>
American Trust Allegiance Fund
SCHEDULE OF INVESTMENTS
at August 31, 1997 (Unaudited), Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
Oil & Gas - Drilling &
Equipment: 8.31%
2,150 Haliburton Co. $ 102,663
1,600 Schlumberger Ltd. 121,900
900 Western Atlas, Inc.* 71,325
------
295,888
-------
Oil - International: 2.85%
2,000 Royal Dutch Petroleum 101,500
-------
Personal Care: 2.33%
1,000 Gillette Co. 82,813
------
Retail - Specialty: 3.04%
1,000 Barnes & Noble, Inc.* 46,438
2,600 Borders Group, Inc.* 61,913
------
108,351
-------
Services - Commercial &
Consumer: 2.15%
1,100 Cintas Corp. 76,725
------
Services - Computer
Systems: 1.76%
1,200 Sungard Data Systems, Inc.* 62,550
------
Services -
Dataprocessing: 6.78%
1,700 Automatic Data Proc. 77,456
2,200 First Data Corp. 90,338
2,150 Paychex, Inc. 73,638
------
241,432
-------
Telecommunication -
Long Distance: 2.19%
2,600 Worldcom, Inc.* 77,838
------
<PAGE>
American Trust Allegiance Fund
SCHEDULE OF INVESTMENTS
at August 31, 1997 (Unaudited), Continued
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
Telephone: 1.53%
1,000 SBC Communications $ 54,375
--------
Textiles - Apparel: 4.26%
1,500 Jones Apparel GP, Inc.* 75,281
1,750 Tommy Hilfiger Corp.* 76,344
------
151,625
-------
Total Common Stocks
(cost $3,190,679) 3,560,431
---------
SHORT-TERM INVESTMENTS
- --------------------------------------------------------------------------------
$74,541 Star Treasury Fund: 4.62% 74,541
------
Total Investments in
Securities
(cost $3,265,220): 99.35% 3,634,972
Other Assets
Less Liabilities: 0.65% 23,656
------
Total Net Assets: 100.0% $ 3,658,628
<FN>
* Non-income producing security.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
American Trust Allegiance Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at August 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS
Investments in securities,
at value (identified cost
<S> <C>
$3,265,220) (Note 2-A) $ 3,634,972
Receivables:
Due from Advisor 8,736
Dividends and interest 2,479
Subscriptions (600)
Deferred organization costs (Note 2-D) 16,746
Prepaid expenses 12,056
------
Total assets 3,674,389
---------
LIABILITIES
Due to investment advisor 2,922
Other liabilities 12,839
------
Total liabilities 15,761
------
NET ASSETS $ 3,658,628
===========
Net asset value, offering and
redemption price per share
($3,658,628/319,577 shares
outstanding; unlimited number
of shares (par value $.01)
authorized) $11.45
======
COMPONENTS OF NET ASSETS
Paid-in capital $ 3,294,546
Undistributed net investment
loss (4,896)
Accumulated net realized loss
on investment transactions (774)
Net unrealized appreciation on
investments 369,752
-------
Net assets $ 3,658,628
===========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
American Trust Allegiance Fund
Comparison of the change in value of a $10,000 investment in the American
Trust Allegiance Fund versus the S&P 500 Composite Stock Index
Date Fund S&P 500
03/11/97 10,000 10,000
03/31/97 9,210 9,342
04/30/97 9,950 9,902
05/31/97 10,630 10,497
06/30/97 11,110 10,968
07/31/97 12,100 11,841
08/31/97 11,450 11,175
Past performance is no guarantee of future performance. Fund shares fluctuate
and investors may have a gain or loss when shares are redeemed.
Total return from fund inception (3/11/97)
Fund 14.50%
S&P 500 11.80%
<PAGE>
American Trust Allegiance Fund
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Period From March 11, 1997* through August 31,
1997 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Dividends $ 10,744
Interest 3,231
-----
Total income 13,975
------
Expenses
Administration fees 14,219
Advisory fees 12,364
Amortization of deferred
organization costs (Note 2-D) 1,754
Auditing fees 5,214
Custody fees 3,223
Trustees' fees 1,699
Fund accounting 6,064
Insurance 684
Legal fees 1,896
Miscellaneous 4,799
Printing 2,370
Registration fees 9,207
Transfer agent fees 6,162
-----
Total expenses 69,655
Less: expenses reimbursed (50,784)
-------
Net expenses 18,871
------
Net investment loss (4,896)
------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized loss from security
transactions (774)
Net change in unrealized
appreciation on investments 369,752
-------
Net realized and unrealized gain
on investments 368,978
-------
Net Increase in Net Assets
Resulting from Operations $ 364,082
=========
<FN>
*Commencement of operations.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
American Trust Allegiance Fund
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
- --------------------------------------------------------------------------------
March 11, 1997*
through
August 31, 1997
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM
OPERATIONS
<S> <C>
Net investment loss $ (4,896)
Net realized loss from security
transactions (774)
Net change in unrealized
appreciation on investments 369,752
-------
Net increase in net assets
resulting from operations 364,082
-------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from
net change in outstanding shares (a) 3,294,546
---------
Total increase in net assets 3,658,628
NET ASSETS
Beginning of period -0-
-
End of period $3,658,628
==========
<FN>
(a) A summary of capital shares
transactions is as follows:
March 11, 1997*
through
August 31, 1997
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
Shares sold 322,859 $3,329,941
Shares redeemed (3,282) (35,395)
------ -------
Net increase 319,577 $3,294,546
======= ==========
*Commencement of operations.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
American Trust Allegiance Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS - For a capital share
outstanding throughout the period
- --------------------------------------------------------------------------------
March 11, 1997*
through
August 31, 1997
- --------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $10.00
------
Income from investment operations:
Net investment income (0.02)
Net realized and unrealized gain
on investments 1.47
----
Total from investment operations 1.45
----
Net asset value, end of period $11.45
======
Total return 14.50%**
Ratios/supplemental data:
Net assets, end of period (thousands) $3,659
Ratio of expenses to average net assets:
Before expense reimbursement 5.39%***
After expense reimbursement 1.45%***
Ratio of net investment loss to average net assets:
Before expense reimbursement (4.31%)***
After expense reimbursement (0.38%)***
Portfolio turnover rate 1.04%
Average commission rate
paid per share $.1518
<FN>
*Commencement of operations.
**Not annualized.
***Annualized.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
American Trust Allegiance Fund
NOTES TO FINANCIAL STATEMENTS at
August 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The American Trust Allegiance (the "Fund") is a diversified series of
shares of beneficial interest of Advisors Series Trust (the "Trust"), which is
registered under the Investment Company Act of 1940 (the "1940 Act") as an
open-end management investment company. The Fund began operations on March 11,
1997.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation. The Fund's investments are carried at market
value. Securities listed on an exchange or quoted on a National
Market System are valued at the last sale price. Other securities
are valued at the last quoted bid price. Short-term investments are
stated at cost, which when combined with accrued interest,
approximates market value.
B. Federal Income Taxes. The Fund intends to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
its shareholders. Therefore, no federal income tax provision is
required.
C. Security Transactions, Dividends and Distributions. As is common in
the industry, security transactions are accounted for on the trade
date. Dividend income and distributions to shareholders are recorded
on the ex-dividend date.
D. Deferred Organization Costs. The Fund has incurred expenses of
$18,500 in connection with the organization of the Fund. These costs
have been deferred and are being
<PAGE>
American Trust Allegiance Fund
NOTES TO FINANCIAL STATEMENTS, Continued
amortized on a straight line basis over a period of sixty months from the
date the Fund commenced investment operations.
E. Use of Estimates. The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the period ended August 31, 1997, American Trust Company (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnishes all investment advice,
office space, facilities, and most personnel needed by the Fund. As compensation
for its services, the Advisor is entitled to a monthly fee at the annual rate of
.95% based upon the average daily net assets of the Fund. For the period ended
August 31, 1997, the Fund incurred $12,364 in Advisory fees.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund to the extent necessary to limit
the Fund's aggregate annual operating expenses to 1.45% of average net assets.
Any such reductions made by the Advisor in its fees or payments or reimbursement
of expenses which are the Fund's obligation are subject to reimbursement by the
Fund provided the Fund is able to effect such reimbursement and remain in
compliance with applicable limitations. For the period ended August 31, 1997,
the Advisor reimbursed the Fund in the amount of $50,784.
Investment Company Administration Corporation (the "Administrator") acts
as the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the
<PAGE>
American Trust Allegiance Fund
NOTES TO
FINANCIAL STATEMENTS, Continued
trustees; monitors the activities of the Fund's
custodian, transfer agent and accountants; coordinates the preparation and
payment of Fund expenses and reviews the Fund's expense accruals. For its
services, the Administrator receives a monthly fee at the annual rate of 0.20%
of average net assets, subject to a $30,000 annual minimum.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and the Distributor.
NOTE 4 - PURCHASES AND SALES OF
SECURITIES
The cost of purchases and the proceeds from sales of securities, other
than short-term investments, for the period ended August 31, 1997, were
$3,219,919 and $28,466, respectively.
<PAGE>
Advisor
American Trust Company
One Court Street
Lebanon, NH 03766
1-800-788-8806
Distributor
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
Transfer Agent
American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
1-800-385-7003
Legal Counsel
Paul, Hastings, Janofsky & Walker, LLP
345 California Street, 29th Floor
San Francisco, CA 94104
This report is intended for shareholders of the Fund and may not be used
as sales literature unless preceded or accompanied by a current
prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost. Statements and other information herein are dated and
are subject to change.
