Semi-Annual Report
For The Period Ended
August 31, 1998
September 30, 1998
Dear Fellow Shareholder,
We are pleased to send you the American Trust Allegiance Fund's semi-annual
report for the six month period ending August 31, 1998. Asset growth of the Fund
has been encouraging, with total assets reaching $7.9 million as of August 31,
1998. The Fund's investment performance remains quite competitive, as it ranked
in the top 25% of growth mutual funds for the twelve month period ending August
31, 1998 according to Lipper Analytic Services, Inc. Based on total return,
Lipper ranked the Fund 224 out of 926 growth funds for the year ending August
31, 1998.
The six month period covered in this semi-annual report presented more
challenges to common stock investors than in any other time period since 1994. A
sharp 20% decline, as measured by the S&P 500 Index, over a six week time frame
of mid-July to the end of August reminded all investors of the short term risks
inherent in common stock investing. Investor complacency with regard to risk and
unrealistic expectations had become too pervasive and consequently, we believe
that broad declines in stock prices can be instructive to investors in assessing
their investment strategy's risk/return stance.
The concerns regarding the global macroeconomic environment and U.S.
economic and political problems have been well documented by the media and
contributed greatly to the increase in volatility. Our strategy during this
period was to follow our discipline of continually focusing on companies that we
own and assessing their operating momentum. If our companies continued to
perform fundamentally, then our strategy was to hold them throughout these
difficult periods. A change to the Fund's portfolio holdings is triggered by a
shift in the fundamentals of one of our companies, rather than trying to
anticipate the impact of some macroeconomic trend.
The Fund's portfolio remains composed predominantly of large
capitalization, domestic, high-quality companies which possess, on average,
growth in earnings per share greater than that of the general stock market. Our
companies also tend to carry lower debt levels than the average S&P 500 Index
stock. Technology stocks continue to be overweighted in the Fund, despite their
inherent volatility, as we believe this sector presents the best growth
opportunities for long term investors.
We thank you for your support and look forward to helping you achieve your
financial goals.
/s/
Jeffrey M. Harris, CFA
/s/
Paul H. Collins
<PAGE>
TOP 10 HOLDINGS at August 31, 1998
Sunamerica, Inc.
Clorox Company
Dell Computer Corp.
BellSouth Corp.
Symbol Technologies, Inc.
Cisco Systems, Inc.
Microsoft Corp.
Gap, Inc.
Computer Sciences Corp.
Lucent Technologies
<PAGE>
SCHEDULE OF INVESTMENTS at August 31, 1998 (Unaudited)
Shares COMMON STOCKS: 94.8% Market Value
- --------------------------------------------------------------------------------
Airlines: 0.4%
1,800 Southwest Airlines Co. $ 32,062
----------
Banks - Major Regional : 8.8%
3,700 Fifth Third Bancorp 197,141
2,150 Mellon Bank 111,800
2,500 Northern Trust Corp. 139,531
3,500 Norwest Corp. 104,125
2,850 State Street Corp. 148,378
----------
700,975
----------
Communication - Equipment: 5.0%
2,800 Lucent Technologies 198,450
1,300 Tellabs, Inc. Del* 55,006
5,700 Qwest Communications International, Inc.* 142,500
----------
395,956
----------
Computer Hardware: 4.9%
5,650 Compaq Computer Corp. 157,847
2,300 Dell Computer Corp.* 229,928
----------
387,775
----------
Computers - Networking: 2.7%
2,637 Cisco Systems, Inc.* 215,987
----------
<PAGE>
Computer Software and Services: 9.0%
4,450 BMC Software, Inc.* 189,403
1,575 Computer Associates International, Inc. 42,525
3,600 Computer Sciences Corp.* 203,625
2,200 Microsoft Corp.* 211,131
2,350 Peoplesoft, Inc.* 66,167
----------
712,851
----------
Computers - Peripheral: 2.2%
3,900 EMC Corp.* 176,231
----------
Distributor - Food: 1.6%
6,200 Sysco Corp. 125,163
----------
Entertainment: 1.8%
5,100 Walt Disney Co. $ 139,931
----------
Electrical Equipment: 5.7%
2,200 Emerson Electric Co. 125,400
2,625 Solectron Corp.* 108,445
5,300 Symbol Technologies, Inc. 217,300
----------
451,145
----------
Financial - Diversified: 5.2%
3,100 Federal National Mortgage Association 176,119
3,850 Sunamerica, Inc. 238,459
----------
414,578
----------
Foods: 1.7%
2,700 Campbell Soup Co. 136,013
----------
Household Products: 5.0%
2,400 Clorox Company 231,450
2,275 Colgate-Palmolive Co. 164,084
----------
395,534
----------
Insurance - Brokers: 1.7%
2,775 Marsh & McLennan, Inc. 134,588
----------
Insurance - Multiline: 2.3%
2,400 American International Group, Inc. 185,550
----------
Investment Management: 1.3%
1,300 Franklin Resources, Inc. 41,925
2,100 T. Rowe Price Associates, Inc. 63,853
----------
105,778
----------
Machinery - Diversified: 1.0%
2,100 Ingersoll-Rand Co. 83,475
----------
Manufacturing - Diversified: 1.7%
2,750 Illinois Tool Works 133,203
----------
<PAGE>
Oil and Gas / Drill and Equipment: 2.3%
3,050 Haliburton Co. $ 81,016
2,300 Schlumberger Ltd. 100,769
----------
181,785
----------
Oil - International: 3.4%
2,500 Exxon Corp. 163,594
2,750 Royal Dutch Petroleum 109,313
----------
272,907
----------
Personal Care: 2.6%
1,500 Gillette Co. 61,688
----------
Retail - Apparel: 0.8%
4,100 The Gap, Inc. 209,356
----------
Retail - Building Supply: 2.5%
5,100 Home Depot, Inc. 196,350
----------
Retail / Specialty: 5.6%
5,150 Barnes & Noble, Inc.* 139,372
10,200 Bed Bath & Beyond, Inc.* 183,919
6,450 Borders Group, Inc.* 122,167
----------
445,458
----------
Services - Computer Systems: 2.3%
5,700 Sungard Data Systems, Inc.* 180,619
----------
Services - Data Processing: 4.6%
2,925 Automatic Data Processing, Inc. 186,469
4,650 Paychex, Inc. 176,845
----------
363,314
----------
Services - Commercial and Construction: 2.1%
4,250 Cintas Corp. 172,656
----------
<PAGE>
Telephone: 5.0%
3,300 BellSouth Corp. $ 226,256
4,500 SBC Communications, Inc. 171,000
----------
397,256
----------
Textiles - Apparel: 1.6%
6,600 Jones Apparel Group, Inc. 127,875
----------
Total Common Stocks
(cost $7,489,537) 7,536,038
----------
SHORT-TERM INVESTMENTS: 4.8%
- --------------------------------------------------------------------------------
$385,503 Star Treasury Fund, 4.62% (cost $385,503) 385,503
----------
Total Investments in Securities (cost $7,875,040): 99.6% 7,921,541
Other Assets Less Liabilities: 0.4% 30,121
----------
Total Net Assets: 100.0% $7,951,662
==========
**At August 31, 1998, the cost of securities for Federal tax purposes was the
same as the basis for financial reporting. Unrealized appreciation and
depreciation of securities were as follows:
Gross unrealized appreciation $ 730,483
Gross unrealized depreciation (683,982)
----------
Net unrealized appreciation $ 46,501
==========
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES at August 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $7,875,040) $ 7,921,541
Cash 187
Receivables:
Due from Advisor 2,494
Fund shares sold 870
Dividends and interest 5,085
Deferred organization costs 13,045
Prepaid expenses 22,779
----------
Total assets 7,966,001
----------
Liabilities
Payables:
Administration fees 2,548
Fund shares repurchased 3,228
Accrued expenses 11,111
----------
Total liabilities 14,339
----------
NET ASSETS $ 7,951,662
===========
Net asset value, offering and redemption price per share
($7,951,662/656,817 shares outstanding; unlimited number
of shares (par value $.01) authorized) $ 12.11
===========
COMPONENTS OF NET ASSETS
Paid-in capital $ 7,787,848
Accumulated net investment loss (20,647)
Undistributed net realized gain on investments 137,960
Net unrealized appreciation on investments 46,501
----------
Net assets $ 7,951,662
===========
<PAGE>
STATEMENT OF OPERATIONS - For the six months ended August 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends $ 27,236
Interest 10,440
----------
Total income 37,676
----------
Expenses
Advisory fees 38,242
Administration fees 15,123
Transfer agent fees 11,976
Fund accounting fees 8,300
Professional fees 7,743
Registration fees 4,455
Custody fees 3,428
Directors' fees 2,935
Reports to shareholders 2,521
Miscellaneous 2,096
Amortization of deferred organization costs 1,866
Insurance 1,854
----------
Total expenses 100,539
Less advisory fee waiver and absorption (42,216)
----------
Net expenses 58,323
----------
Net investment loss (20,647)
----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from security transactions 72,105
Net change in unrealized appreciation on
investments (1,072,638)
----------
Net realized and unrealized loss on investments (1,000,533)
----------
Net Decrease in Net Assets Resulting from
Operations $ (1,021,180)
=============
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------
Six Months March 11, 1997*
Ended through
August 31, 1998# February 28, 1998
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment loss $ (20,647) $ (15,458)
Net realized gain from security transactions 72,105 81,313
Net change in unrealized
apppreciation on investments (1,072,638) 1,119,139
- -----------------------------------------------------------------------------------------------
Net (decrease) increase in net assets
resulting from operations (1,021,180) 1,184,994
- -----------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from
net change in outstanding shares (a) 2,612,720 5,175,128
- -----------------------------------------------------------------------------------------------
Total increase in net assets 1,591,540 6,360,122
NET ASSETS
Beginning of period 6,360,122 -0-
- -----------------------------------------------------------------------------------------------
End of period $ 7,951,662 $ 6,360,122
===============================================================================================
(a) A summary of capital shares transactions is as follows:
Six Months March 11, 1997*
Ended through
August 31, 1998# February 28, 1998
- ----------------------------------------------------------------------------------------------
Shares Value Shares Value
- ----------------------------------------------------------------------------------------------
Shares sold 197,547 $2,789,854 480,212 $5,272,001
Shares redeemed (12,705) (177,134) (8,237) (96,873)
-------- ----------- --------- -----------
Net increase 184,842 $2,612,720 471,975 $5,175,128
========= =========== ========= ===========
*Commencement of operations.
# Unaudited.
<PAGE>
FINANCIAL HIGHLIGHTS - For a capital share outstanding throughout each period
- ----------------------------------------------------------------------------------------------
Six Months March 11, 1997*
Ended through
August 31, 1998# February 28, 1998
- ----------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.48 $ 10.00
- ----------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (0.03) (0.03)
Net realized and unrealized (loss) gain
on investments (1.34) 3.51
- ----------------------------------------------------------------------------------------------
Total from investment operations (1.37) 3.48
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.11 $ 13.48
=================================================================================================
Total return (10.16%)** 34.80%**
Ratios/supplemental data:
Net assets, end of period (millions) $ 8.0 $ 6.3
Ratio of expenses to average net assets:
Before expense reimbursement 2.49%## 4.04%##
After expense reimbursement 1.45%## 1.45%##
Ratio of net investment loss to average net assets: (0.51%)##
Portfolio turnover rate 23.59% 27.65%
*Commencement of operations.
#Unaudited.
**Not annualized.
##Annualized.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 - ORGANIZATION
The American Trust Allegiance Fund (the "Fund") is a series of shares of
Advisors Series Trust (the "Trust"), which is registered under the Investment
Company Act of 1940 as a diversified, 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 mean between the last bid and asked prices. Securities for
which market quotations are not readily available, if any, are valued
following procedures approved by the Board of Trustees. Short-term
investments are valued at amortized cost, which approximates market
value.
B. Federal Income Taxes: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income tax
provision is required.
C. Security Transactions, Dividends and Distributions: Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Realized gains and losses on securities sold are determined on the
basis of identified cost.
D. Deferred Organization Costs: The Fund has incurred expenses of $18,500
in connection with their organization. These costs have been deferred
and are being 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 reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.
NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the six months ended August 31, 1998, American Trust Company (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, facilities, and provides most of the 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 six months ended August 31, 1998, the Fund incurred $38,242 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 and to absorb Fund operating
expenses to the extent necessary to limit the Fund's aggregate annual operating
expenses to 1.45% of average net assets (the "expense cap"). Any such reductions
made by the Advisor in its fees or payment of expenses which are the Fund's
obligation are subject to reimbursement by the Fund to the Advisor, if so
requested by the Advisor, in subsequent fiscal years if the aggregate amount
actually paid by the Fund toward the operating expenses for such fiscal year
(taking into account the reimbursement) does not exceed the applicable
limitation on Fund expenses. The Advisor is permitted to be reimbursed only for
fee reductions and expense payments made in the previous three fiscal years, but
is permitted to look back five years and four years, respectively, during the
initial sixth years and seventh year of the Fund's operations. Any such
reimbursement is also contingent upon Board of Trustees review and approval at
the time the reimbursement is made. Such reimbursement may not be paid prior to
the Fund's payment of current ordinary operating expenses. For the six months
ended August 31, 1998, the Advisor reduced its fees and absorbed Fund expenses
in the amount of $42,216; no amounts were reimbursed to the Advisor.
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 trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of the Fund's 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 daily net assets, subject to a
minimum fee of $30,000 annually.
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 of the Fund are also officers and/or directors of the
Administrator and the Distributor.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
For the six months ended August 31, 1998, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$4,329,197 and $1,752,007, 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.
<PAGE>
InformationTech 100 Fund
160 Sansome Street
San Francisco, CA 94104
(415) 705-7777
Semi-Annual Report
For the period ended August 31, 1998
September 30, 1998
Dear Fellow Shareholders,
Semi-Annual Review: Obviously, the past six months have been more volatile
than we would have liked, both in our portfolio, and in the broader markets.
However, maintaining our perspective and relative outperformance are all we can
ask for during the downturns; our return for the period from February 28, 1998
through August 31, 1998 was (10.61%). Relative to the technology sector, we've
done extremely well, outperforming the PSE Technology Index which had a return
of (17.4%). Against the benchmark InformationWeek 100 Index return of (14.3%),
the portfolio demonstrated the value of active management.
Obviously, concerns regarding a global recession have had a significant
impact upon the portfolio, particularly this quarter. However, it is important
to note that while the US economy is slowing, it is still healthy as a whole.
Although many of our holdings do have international exposures, the majority of
their business is tied to companies within the US. This, coupled with the need
to prepare for the Y2K conversions, has kept money flowing into the Information
Technology sector, albeit at a slightly slower rate.
The Portfolio:
Our top performers this quarter were Internet and large cap technology
companies. No one could beat the performance of Yahoo and America Online. The
leader in direct PC sales, Dell, telecom infrastructure companies (Lucent,
Nokia), and the storage arena (EMC, Legato, Network Appliance) also handily beat
the averages. It still helps to be a large capitalization stock these days as
the stable technology leaders such as Microsoft, Intel, Cisco, and IBM generated
positive returns. Being small meant being out of favor regardless of
fundamentals.
The biggest laggards included most of the security software companies such
as Security Dynamics and Checkpoint Software. One major area of concern is the
pricing pressure in the Enterprise Resource Planning (ERP) software sector as
evidenced by weakness in SAP, Peoplesoft, and Baan NV. This group had been a
market leading segment for some time.
Outlook:
The declining global economic situation will continue to impact the equity
market negatively in the short term. We expect increasing short-term volatility
and a continued widening in trading ranges, possibly for the next six to twelve
months. However, our perspective on the long-term outlook for information
technolgy has not changed: we continue to see this sector as providing the best
long-term opportunities within the US economy.
/s/
William F.K. Schaff
Portfolio Manager
<PAGE>
SCHEDULE OF INVESTMENTS at August 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 94.64% Market Value
- --------------------------------------------------------------------------------
Cable TV: 6.01%
2,050 Cox Communications, Inc. - Class A*............. $ 86,100
5,700 Tele-Communications, Inc.*...................... 188,278
1,240 Viacom, Inc. - Class A*......................... 61,070
-----------
335,448
-----------
Communications Services: 0.29%
1,000 Saville Systems, PLC*........................... 16,281
-----------
Communications Broadcasting Equipment: 0.09%
120 Motorola, Inc................................... 5,168
-----------
Computer Internet Services: 8.31%
2,600 America Online, Inc.*........................... 213,038
3,000 At Home Corp. - Series A*....................... 85,500
3,600 MindSpring Enterprises, Inc.*................... 97,087
1,000 Yahoo!, Inc.*................................... 68,250
-----------
463,875
-----------
Computer Peripheral Equipment: 10.19%
116 3Com Corp.*..................................... 2,751
2,000 Ascend Communications, Inc.*.................... 70,313
2,600 Cisco Systems, Inc.*............................ 212,956
505 Hewlett-Packard Co.............................. 24,524
1,200 International Buisness Machines Corp............ 135,150
195 NCR Corp.*...................................... 5,155
1,625 Sun Microsystems, Inc.*......................... 64,289
3,000 Unisys Corp.*................................... 53,813
-----------
568,951
-----------
Computer Processing Services: 5.83%
2,000 Affiliated Computer Services, Inc.*............. 65,375
240 Automatic Data Processing, Inc.................. 15,300
900 Ceridian Corp.*................................. 43,650
1,500 First Data Corp................................. 31,031
594 Hyperion Solutions Corp.*....................... 16,581
200 I2 Technologies, Inc.*.......................... 2,825
3,900 Legato Systems, Inc.*........................... 136,744
205 Transaction Systems Architects, Inc.*........... 6,848
400 Vanstar Corp.*.................................. 2,975
500 Vantive Corp.*.................................. 4,133
-----------
325,462
-----------
<PAGE>
Computer Programming Services: 14.55%
170 Adobe Systems, Inc.............................. 4,473
280 American Management Systems, Inc.*.............. 7,499
100 Bean Company N.V.*.............................. 2,853
1,250 Cambridge Technology Partners*.................. 40,586
500 Computer Horizons Corp.*........................ 11,500
1,170 Computer Sciences Corp.*........................ 66,178
1,855 Electronic Data Systems Corp.................... 62,143
6,000 HBO & Co........................................ 127,688
240 Hummingbird Communication*...................... 4,740
2,100 J.D. Edwards & Co.*............................. 84,525
870 Keane, Inc.*.................................... 36,540
540 Oracle Corp.*................................... 10,783
2,000 PeopleSoft, Inc.*............................... 56,313
5,300 SAP (Sponsored) ADR............................. 221,937
3,200 Siebel Systems, Inc.*........................... 59,400
500 Systems & Computer Technology Corp.*............ 6,781
220 Wind River Systems, Inc.*....................... 8,236
-----------
812,175
-----------
Computer Software: 1.77%
1,300 Advent Software, Inc.*.......................... 40,016
1,200 Bea Systems, Inc.*.............................. 18,262
1,200 Mercury Interactive Corp.*...................... 40,575
-----------
98,853
-----------
Computer Storage Devices: 4.04%
3,900 EMC Corp.*...................................... 176,231
1,700 Seagate Technology*............................. 29,750
290 Storage Technology Corp.*....................... 6,308
300 Veritas Software Corp.*......................... 13,453
-----------
225,742
-----------
Computer Systems and Services: 0.82%
4,800 Novell, Inc.*...................................$ 45,900
-----------
<PAGE>
Computer - Integrated Systems: 1.13%
1,000 Sequent Computer Systems, Inc.*................. 6,406
2,900 Wang Laboratories, Inc.*........................ 56,731
-----------
63,137
-----------
Consultants: 0.76%
1,220 Comdisco, Inc................................... 15,174
1,185 Gartner Group, Inc.*............................ 27,440
-----------
42,614
-----------
Electronic Computers: 4.17%
4,035 Compaq Computer Corp............................ 112,728
1,200 Dell Computer Corp.*............................ 119,963
-----------
232,691
-----------
General Industrial Machinery: 0.13%
145 Hitachi Limited................................. 7,159
-----------
Internet Software: 2.00%
2,400 Cybercash, Inc.*................................ 19,050
2,800 Sterling Commerce, Inc.*........................ 92,400
-----------
111,450
-----------
Investment Companies: 1.49%
5,000 TCI Ventures Group - Class A*................... 82,969
-----------
Office Machines: 0.68%
435 Xerox Corp...................................... 38,198
-----------
Power Conversion / Supply: 1.45%
3,000 American Power Conversion*...................... 81,094
-----------
<PAGE>
Prepackaged Software: 16.35%
1,500 BMC Software, Inc.*............................. 63,844
2,800 CBT Group PLC*.................................. 130,900
515 Check Point Software Technology Ltd.*........... 9,415
150 Citrix Systems, Inc.*........................... 8,644
1,300 Computer Associates International............... 35,100
5,400 Compuware Corp.*................................ 245,869
500 Dataworks Corp.*................................ 2,578
1,000 Documentum, Inc.*............................... 35,937
Prepackaged Software: 16.35% Continued
200 HNC Software, Inc.*............................. 7,256
3,000 Intuit, Inc.*................................... 102,844
1,000 Manugistics Group, Inc.*........................ 14,437
370 Microsoft Corp.*................................ 35,508
3,000 Network Associates, Inc.*....................... 96,938
890 Platinum Technology, Inc.*...................... 16,632
600 Policy Management Systems*...................... 25,050
1,000 Sapient Corp.*.................................. 39,094
200 Security Dynamics Technologies*................. 1,900
1,620 Sterling Software, Inc.*........................ 33,311
475 Symantec Corp.*................................. 7,793
-----------
913,050
-----------
Semiconductors and Devices: 1.22%
675 Intel Corp...................................... 48,072
420 Texas Instruments............................... 20,029
-----------
68,101
-----------
Telephone Apparatus: 7.13%
2,800 ADC Telecommunications, Inc.*................... 62,213
460 L.M. Ericsson Telephone Co...................... 9,876
2,400 Lucent Technologies, Inc........................ 170,100
1,200 Nokia Corp. ADR................................. 80,175
520 Northern Telecom, Ltd........................... 24,830
1,000 PairGain Technologies*.......................... 8,859
1,000 Tellabs, Inc.*.................................. 42,312
-----------
398,365
-----------
Telephone Communications: 6.23%
800 AirTouch Communications*........................ 45,000
150 AT&T Corp....................................... 7,519
3,600 Nextel Communications, Inc. - Class A*.......... 64,912
3,000 Qwest Communications International, Inc.*....... 75,000
3,800 WorldCom, Inc.*................................. 155,444
-----------
347,875
-----------
Total Common Stocks (cost $5,692,845)........... 5,284,558
-----------
<PAGE>
Principal Amount SHORT-TERM INVESTMENTS: 5.12%
- --------------------------------------------------------------------------------
$ 285,536 Star Treasury Fund, 4.73% (cost $285,536)....... $ 285,536
-----------
Total Investments in Securities
(cost $5,978,381): 99.75% ...................5,570,094
Other Assets less Liabilities: 0.25%............. 13,649
-----------
Total Net Assets: 100.0% ...................... $5,583,743
===========
*Non-income producing security.
#At August 31, 1998, the cost of securities for Federal tax purposes was the
same as the basis for financial reporting. Unrealized appreciation and
depreciation of securities were as follows:
Gross unrealized appreciation.................$ 408,389
Gross unrealized depreciation................. (816,676)
-----------
Net unrealized depreciation..............$ (408,287)
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES at August 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $5,978,381)............................. $ 5,570,094
Receivables:
Due from Advisor....................................... 6,158
Fund shares sold....................................... 8,600
Dividends and interest ................................ 2,429
Deferred Organization Costs.................................. 13,329
Prepaid expenses............................................. 21,499
-----------
Total assets .................................... 5,622,109
-----------
LIABILITIES
Payables:
Administration fee..................................... 2,548
Fund shares repurchased................................ 31,392
Accrued expenses............................................. 4,426
-----------
Total liabilities................................ 38,366
-----------
NET ASSETS $ 5,583,743
================================================================================
Net asset value, offering and redemption price per share
[$5,583,743/207,160 shares outstanding;
unlimited number of shares
(par value $.01) authorized]........................... 26.95
================================================================================
COMPONENTS OF NET ASSETS
Paid-in capital ............................................. $ 6,085,243
Accumulated net investment loss.............................. (30,445)
Accumulated net realized loss on investments................. (62,768)
Net unrealized depreciation on investments................... (408,287)
-----------
Net assets ............................................ $ 5,583,743
===========
<PAGE>
STATEMENT OF Operations for the six months ended August 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income
Income
Dividends..............................................$ 2,557
Interest............................................... 7,631
-----------
Total income..................................... 10,188
-----------
Expenses
Advisory fees.......................................... 25,768
Administration fees.................................... 15,041
Custodian and accounting fees.......................... 13,231
Professional fees...................................... 11,702
Transfer agent fees.................................... 10,173
Registration fees...................................... 4,433
Trustees' fees......................................... 2,918
Other ................................................. 1,872
Amortization of deferred organization costs ........... 1,856
Reports to shareholders................................ 500
-----------
Total expenses................................... 87,493
Less, advisory fee waiver and absorption......... (46,860)
-----------
Net expenses..................................... 40,633
-----------
Net investment loss ........................ (30,445)
-----------
Realized and Unrealized loss on Investments
Net realized loss from security transactions................. (37,904)
Net change in unrealized depreciation on investments......... (832,859)
-----------
Net realized and unrealized loss on investments........ (870,762)
-----------
Net Decrease in Net Assets Resulting
from Operations................................$ (901,208)
===========
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Six Months April 8, 1997*
Ended through
August 31, 1998# February 28, 1998
- --------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
<S> <C> <C>
Net investment loss................................................... $ (30,445) $ (8,898)
Net realized loss from security transactions.......................... (37,904) (23,156)
Net change in unrealized depreciation on investments.................. (832,859) 424,572
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations . (901,208) 392,518
- --------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change
in outstanding shares (a)........................................ 3,811,208 2,281,225
- --------------------------------------------------------------------------------------------------------------------
Total increase in net assets ......................................... 2,910,000 2,673,743
NET ASSETS
Beginning of period......................................................... 2,673,743 -0-
- --------------------------------------------------------------------------------------------------------------------
End of period............................................................... $ 5,583,743 $ 2,673,743
====================================================================================================================
(a) A summary of capital shares transactions is as follows:
Six Months April 8,1997*
Ended through
August 31, 1998 February 28, 1998
- -------------------------------------------------------------------------------------------------------
Shares Value Shares Value
- -------------------------------------------------------------------------------------------------------
Shares sold......................... 127,701 $4,106,124 89,946 $2,313,271
Shares redeemed..................... (9,226) (294,916) (1,261) (32,046)
- -------------------------------------------------------------------------------------------------------
Net increase........................ 118,475 $3,811,208 88,685 $2,281,225
=======================================================================================================
*Commencement of operations.
#Unaudited.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
- --------------------------------------------------------------------------------------------------------
Six Months April 8, 1997*
Ended through
August 31, 1998# February 28, 1998
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period............................ $ 30.15 $ 20.00
- --------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment loss....................................... (0.15) (0.10)
Net realized and unrealized gain (loss) on investments.... (3.05) 10.25
- --------------------------------------------------------------------------------------------------------
Total from investment operations................................ (3.20) 10.15
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period.................................. $ 26.95 $ 30.15
========================================================================================================
Total return.................................................... (10.61%)** 50.75%**
Ratios/supplemental data:
Net assets, end of period (millions)............................ $ 5.6 $ 2.7
Ratio of expenses to average net assets:
Before expense reimbursement.............................. 3.21%## 12.17%##
After expense reimbursement............................... 1.49%## 1.50%##
Ratio of net investment loss to average net assets.............. (1.11%)## (1.01%)##
Portfolio turnover rate......................................... 12.25% 32.78%
</TABLE>
*Commencement of operations.
#Unaudited.
**Not annualized.
##Annualized.
<PAGE>
NOTE 1 - ORGANIZATION
The InformationTech 100 Fund (the "Fund") is a series of shares of Advisors
Series Trust (the "Trust"), which is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Fund began
operations on April 8, 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 mean between the last bid and asked prices. Securities for
which market quotations are not readily available, if any, are valued
following procedures approved by the Board of Trustees. Short-term
investments are valued at amortized cost, which approximates market
value.
B. Federal Income Taxes: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income tax
provision is required.
C. Security Transactions, Dividends and Distributions: Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Realized gains and losses on securities sold are determined on the
basis of identified cost.
D. Deferred Organization Costs: The Fund incurred expenses of $18,500 in
connection with their organization. These costs have been deferred and
are being 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 reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.
NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the six months ended August 31, 1998, Bay Isle Financial Corporation
(the "Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, facilities, and provides most of the 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 six months ended August 31, 1998, the Fund incurred $25,768 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 and to absorb Fund operating
expenses to the extent necessary to limit the Fund's aggregate annual operating
expenses to 1.50% of average net assets (the "expense cap"). Any such reductions
made by the Advisor in its fees or payment of expenses which are the Fund's
obligation are subject to reimbursement by the Fund to the Advisor, if so
requested by the Advisor, in subsequent fiscal years if the aggregate amount
actually paid by the Fund toward the operating expenses for such fiscal year
(taking into account the reimbursement) does not exceed the applicable
limitation on Fund expenses. The Advisor is permitted to be reimbursed only for
fee reductions and expense payments made in the previous three fiscal years, but
is permitted to look back five years and four years, respectively, during the
initial sixth and seventh year of the Fund's operations. Any such reimbursement
is also contingent upon Board of Trustees review and approval at the time the
reimbursement is made. Such reimbursement may not be paid prior to the Fund's
payment of current ordinary operating expenses. For the six months ended August
31, 1998, the Advisor reduced its fees and absorbed Fund expenses in the amount
of $46,860; no amounts were reimbursed to the Advisor.
<PAGE>
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 trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of the Fund's 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 daily net assets, subject to a
minimum fee of $30,000 annually.
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 of the Fund are also officers and/or directors of the
Administrator and the Distributor.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
For the six months ended August 31, 1998, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$4,539,446 and $570,802, respectively.
<PAGE>
Advisor
Bay Isle Financial Corporation
160 Sansome Street, 17th Floor
San Francisco, CA 94104
(415) 705-7777
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
(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.
