CHASE
GROWTH
FUND
Annual Report
dated September 30, 1998
=============
Chase Investment Counsel Corp.
300 Preston Avenue
Suite 403
Charlottesville, Virginia 22902-5091
Advisor: 804-293-9104
Sharehold Servicing: 888-861-7556
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Chase Growth Fund
November 17, 1998
Dear fellow Shareholder:
Let me start our first Annual review for the short fiscal year December 2,
1997 through September 30, 1998 by welcoming our new shareholders. As I write,
115 shareholders have $4.8 million invested in our new Chase Growth Fund
("CGF"). We appreciate the trust each of you has placed in our management and we
are working very hard to earn your continued confidence.
In our 41st year we are the oldest independent investment counsel firm
domiciled in Virginia. For our customized separate accounts, we manage $700
million for 70 clients in twenty states. We intend to continue serving a
relatively small number of separate accounts. The Chase Growth Fund is managed
by the same senior portfolio managers, David Scott and myself, that manage our
large separate accounts. As a smaller fund we have much more flexibility in
buying and selling a broad array of large and mid-cap stocks without a
significant market impact. As part of a new fund, shareholders are not buying
into a portfolio which already has substantial imbedded capital gain tax
liabilities on gains new shareholders did not even enjoy. There will be no 1998
capital gains taxes for the CGF and we plan to manage it so that most future net
gains are long term.
For the period from December 2, 1997 through September 30, 1998 our fund
enjoyed a total return of 6.91% compared with 5.97% for the S&P "500" and 2.40%
for the Lipper Growth Fund Index. We are pleased that our calendar year to date
performance through September 30 was 4.81% compared with a 2.38% total return
for the Lipper Growth Fund Index. What a difference a month makes! With the
October recovery, our calendar year to date performance through October 31 was
9.81% compared with 9.47% for the Lipper Growth Fund Index; cumulative
performance was 12.02% compared with 9.58% for the Lipper Growth Fund Index. On
September 30, 80.1% of our fund was invested in 35 stocks. Our heaviest industry
concentrations were in Computer Software and Services, Drugs, Financial
Services, Insurance and Retail. During the last six months our best performing
stocks were BMC Software +43.3%, SunAmerica Inc. +27.4%, Schering-Plough +26.8%,
Walgreen +25.0%, Microsoft +23.0%, Becton Dickinson +20.8%, Gap Inc. +17.2% and
Home Depot +16.8%. Several new purchases during the period also helped
performance with EMC +21.3%, Lexmark International +17.4% and Cisco Systems
+13.4%.
We are in a difficult market environment. Based on historical norms, cap
weighted equity indexes are ahead of fundamentals. Valuation measurements such
as Price to Earnings, Price to Book Value, and Price to Dividends (yields) are
near record high levels. For a couple of years, this has been a Supply/Demand
driven market. As long as high levels of money flows (buying) continue to exceed
selling and new stock offerings, prices should continue higher. We believe a
number of stocks would be healthier if they consolidated the abnormally rapid
gains of the last few years and let earnings and dividends catch up.
Our investment process combines fundamental, quantitative, and technical
research. We seek good quality companies with above average earnings growth,
strong balance sheets, and reasonable prices. Currently we
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Chase Growth Fund
are invested in stocks with relatively low volatility (betas) in our attempt to
improve defensive qualities. We believe that the stocks of your fund's companies
represent relatively outstanding investment values. In the table below, we
compare the characteristics of our funds' stocks to the Standard & Poor's "500"
Stock Composite Index. On average the CGF stocks have enjoyed more consistent
and substantially higher five year earnings growth rates of 25% vs. 15%. They
are significantly more profitable with a Return on Equity of 31% vs. 22%, and
have stronger balance sheets with Debt to Total Capital of 14% vs. 33%, yet they
sell at only a modest premium to the S&P "500"'s price/earnings multiple based
on 1999 estimated earnings.
CHASE GROWTH FUND STOCKS VS. S&P 500
September 30, 1998
CHASE GROWTH FUND STOCKS S&P 500
------------------------ -------
Last 5 Year
Earnings Growth 25% 15%
Return on Equity 31% 22%
Debt/Total Capital 14% 33%
Reinvestment Rate 26% 14%
Weighted Avg.
Capitalization
(Billions) 50.8 67.7
Price Earnings
Estimated '99 26.9 23.4
Weighted Avg.
Beta (Volatility) 1.00 1.00
SOURCE: CHASE INVESTMENT COUNSEL. THIS INFORMATION IS BASED ON CERTAIN
ASSUMPTIONS AND HISTORICAL DATA AND IS NOT A PREDICTION OF FUTURE RESULTS FOR
THE FUND OR COMPANIES HELD IN THE FUND'S PORTFOLIO. S&P 500 EARNINGS ARE BASED
ON REPORTED FIGURES AFTER WRITE-OFFS.
The market has experienced huge divergences between stocks in general and
the leading indexes. During the period between June 1, 1998 and September 30,
1998, most stocks reached prices way below their respective highs recorded
between January 1, 1997 and May 31, 1998. For instance, 70.7% of the NYSE traded
stocks were down 30% or more and 91.2% of the NASDAQ shares had declined by 30%
or more (69.6% by 50% or more). Even 60.7% of the S&P "500" component stocks
were down 30% or more. Although stocks generally have been in a serious bear
market, the recent decline did not correct the overvaluation among many of the
large cap dominated indexes.
2
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Chase Growth Fund
Corporate earnings growth has slowed down to very modest rates and
worldwide excess capacity and substantial expenditure to solve Year 2000
problems are expected to place increasing pressure on profit margins. We are
mindful of studies that point out that completely withdrawing from stocks is
very hazardous too. For instance, in one forty year period if you had missed
only 6% of the months (the best ones) you would have missed 100% of the return
in excess of T-bills. We assume most of our shareholders have some reserves.
Since the CGF is an equity fund we are reluctant to go much below 80% invested.
During the six months ended September 30, we have been placing emphasis on
capital preservation by investing in "A" quality stocks on average with
volatility (beta) around 1.00 (very low for a growth stock manager) and by
averaging only 86% invested in equities.
As the largest CGF shareholder, I can assure you that we will be working
very hard to find, analyze and invest in relatively attractive stocks. The
officers and employees of Chase Investment Counsel Corp., most of whom are
fellow shareholders, appreciate your confidence and we look forward to a long
investment relationship together.
TOP 10 HOLDINGS
1. Schering - Plough Corp. 6. Cisco Systems, Inc.
2. Walgreen Co. 7. Wal-Mart Stores, Inc.
3. Microsoft, Inc. 8. Lexmark International
4. EMC Corp. 9. TJX Companies, Inc.
5. Pfizer, Inc. 10. BMC Software, Inc.
/s/ Derwood S. Chase, Jr.
Derwood S. Chase, Jr., President
Chase Investment Counsel Corporation
Performance figures of the fund and indexes referenced represent past
performance and are not indicative of future performance of the fund or the
indexes. Share value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original investment. Indexes do not incur
expenses and are not available for investment.
3
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Chase Growth Fund
Comparison of the change in value of a $10,000 investment in the Chase Growth
Fund versus the S&P 500 Composite Stock Price Index and the Lipper Growth
Fund Index
S&P 500 Composite Lipper Growth
Chase Growth Fund Stock Price Index Fund Index
----------------- ----------------- ----------
DEC-97 10,000 10,000 10,000
JAN-98 10,251 10,115 10,076
FEB-98 10,911 10,838 10,786
MAR-98 11,432 11,393 11,248
APR-98 11,272 11,509 11,368
MAY-98 11,032 11,308 11,089
JUN-08 11,602 11,769 11,569
JUL-98 11,492 11,647 11,446
AUG-98 10,070 9,962 9,608
SEP-98 10,691 10,598 10,249
Past performance is not predictive of future performance.
* The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks
designed to represent the broad domestic economy.
* The Lipper Growth Fund Index comprises of the 30 largest growth funds. Growth
funds invest in companies with long-term earnings expected to grow significantly
faster than the earnings of the stocks represented in the major unmanaged stock
indices.
4
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Chase Growth Fund
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 80.14% Market Value
- --------------------------------------------------------------------------------
AIRLINES: 0.93%
1,300 Comair Holdings, Inc. ........................ $ 37,416
--------
BIOTECHNOLOGY: 2.15%
1,200 Genentech, Inc.*............................... 86,250
--------
BUILDING: 2.57%
2,604 Home Depot, Inc. ............................. 102,858
--------
COMPUTER HARDWARE: 3.99%
2,800 EMC Corp.* ................................... 160,125
--------
COMPUTER NETWORKING: 3.78%
2,450 Cisco Systems, Inc.* .......................... 151,517
--------
COMPUTER PERIPHERAL EQUIPMENT: 3.54%
2,050 Lexmark International* ........................ 142,091
--------
COMPUTER SOFTWARE & SERVICES: 9.14%
2,200 BMC Software, Inc.* .......................... 132,069
1,900 Keane, Inc.* ................................. 66,738
1,525 Microsoft, Inc.* ............................. 167,893
--------
366,700
CONGLOMERATES: 0.98%
800 Hillenbrand Industries......................... 39,200
--------
DRUGS: 11.71%
850 Bristol-Myers Squibb Co. ..................... 88,294
1,450 Pfizer, Inc. ................................. 153,609
2,200 Schering-Plough Corp. ........................ 227,838
--------
469,741
ENERGY / OIL SERVICE: 0.44%
680 Diamond Offshore Drilling .................... 17,680
--------
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Chase Growth Fund
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1998, CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
FINANCE / BANKS: 3.02%
975 Northern Trust Corp............................ $ 66,452
1,000 State Street Corp.............................. 54,562
--------
121,014
FINANCIAL SERVICES: 4.48%
500 Fannie Mae .................................. 32,125
1,650 SunAmerica, Inc................................ 100,650
1,250 Travelers Group, Inc........................... 46,875
--------
179,650
INSURANCE - LIFE / HEALTH: 3.37%
2,130 Protective Life Corp. ........................ 76,680
1,500 Reliastar Financial .......................... 58,500
--------
135,180
INSURANCE - PROPERTY / CASUALTY: 1.29%
670 American Int'l Group, Inc. ................... 51,590
--------
LEISURE TIME: 3.25%
4,100 Carnival Corp. ............................... 130,431
--------
MEDICAL SUPPLIES: 4.07%
2,000 Becton, Dickinson and Co. .................... 82,250
1,400 Safeskin Corp.* .............................. 44,144
1,300 Steris Corp.* ................................ 36,766
--------
163,160
OFFICE FURNITURE: 1.89%
3,800 Herman Miller, Inc. .......................... 75,763
--------
RETAIL: 4.34%
500 The Gap, Inc. ................................ 26,375
2,700 Wal-Mart Stores, Inc. ........................ 147,488
--------
173,863
RETAIL DRUG STORES: 4.28%
3,900 Walgreen Co. ................................. 171,844
--------
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Chase Growth Fund
SCHEDULE OF INVESTMENTS AT SEPTEMBER 30, 1998, CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
RETAIL GROCERY STORES: 5.24%
1,800 Albertson's Inc. ............................. $ 97,425
2,250 Kroger Co.* .................................. 112,500
----------
209,925
RETAIL - SPECIALTY: 4.76%
1,800 Ross Stores, Inc. ............................. 51,862
7,800 TJX Companies, Inc. .......................... 138,937
----------
190,799
TELEPHONE AND TELEGRAPH APPARATUS: 0.92%
2,000 LM Ericsson Telephone Co. .................... 36,812
----------
Total Common Stocks (cost $2,960,945) .......... 3,213,608
Principal Amount SHORT-TERM INVESTMENTS: 22.02%
- --------------------------------------------------------------------------------
882,985 Star Treasury Fund, 4.95% ................... 882,985
----------
Total Investments in Securities
(cost $3,843,930): 102.16%................... 4,096,593
Other Liabilities less Assests: (2.16%)....... (86,611)
----------
TOTAL NET ASSETS: 100.0%...................... $4,009,982
==========
* Non-income producing security.
++ At September 30, 1998, the cost of securities for Federal income tax purposes
is $3,844,608. Gross unrealized appreciation and depreciation of securities were
as follows:
Gross unrealized appreciation................ $ 414,087
Gross unrealized depreciation................ (162,102)
----------
Net unrealized appreciation.......... $ 251,985
==========
See accompanying Notes to Financial Statements.
7
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Chase Growth Fund
STATEMENT OF ASSETS AND LIABILITIES AT SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (identified
cost $3,843,930) ........................................ $4,096,593
Receivables:
Due from Advisor ......................................... 2,223
Dividends and interest ................................... 4,547
Prepaid expenses ........................................... 3,775
----------
Total assets ........................................... 4,107,138
----------
LIABILITIES
Payables:
Administration fee ....................................... 2,516
Investment securities purchased .......................... 78,363
Accrued expenses ........................................... 16,277
----------
Total liabilities ...................................... 97,156
----------
NET ASSETS ................................................... $4,009,982
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
[$4,009,982/375,343 shares outstanding;
unlimited number of shares (par value $.01) authorized] .. $ 10.68
==========
COMPONENTS OF NET ASSETS
Paid-in capital ............................................ $3,954,535
Dividends in excess of net investment loss ................. (5,569)
Accumulated net realized loss on investments ............... (191,647)
Net unrealized appreciation of investments ................. 252,663
----------
Net assets ............................................. $4,009,982
==========
See accompanying Notes to Financial Statements.
8
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Chase Growth Fund
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 2, 1997* THROUGH SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Dividends .................................................. $ 12,305
Interest ................................................... 19,154
---------
Total income ............................................. 31,459
---------
Expenses:
Advisory fees .............................................. 23,959
Administration fee ......................................... 20,444
Professional fees .......................................... 14,371
Fund accounting fees ....................................... 12,559
Transfer agent fees ........................................ 7,572
Custodian .................................................. 4,965
Trustees' fees ............................................. 4,507
Other ...................................................... 3,803
Reports to shareholders .................................... 3,483
Registration fees .......................................... 743
---------
Total expenses ........................................... 96,406
Less: Advisory fee waiver and absorption ................. (60,733)
---------
Net expenses ............................................. 35,673
---------
NET INVESTMENT LOSS ................................ (4,214)
---------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on security transactions ................... (191,647)
Net change in unrealized appreciation of investments ......... 222,098
---------
Net realized and unrealized gain on investments .......... 30,451
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ....................................... $ 26,237
=========
* Commencement of operations.
See accompanying Notes to Financial Statements.
9
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STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
December 2, 1997*
through
September 30, 1998
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM
OPERATIONS
Net investment loss ............................................. $ (4,214)
Net realized loss on security transactions ...................... (191,647)
Net change in unrealized appreciation of investments ............ 222,098
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...... 26,237
-----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ........................................... (1,355)
-----------
Total dividends and distributions to shareholders ......... (1,355)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a) ........................................ 3,954,535
-----------
TOTAL INCREASE IN NET ASSETS .............................. 3,979,417
NET ASSETS
Beginning of period (b) ......................................... 30,565
-----------
END OF PERIOD (including dividends in excess of net
investment income of $5,569)................................... $ 4,009,982
===========
(a) A summary of capital shares transactions is as follows:
December 2, 1997*
through
September 30, 1998
- --------------------------------------------------------------------------------
Shares Paid In Capital
- --------------------------------------------------------------------------------
Shares sold (b) ............................... 378,450 $ 3,987,216
Shares issued on reinvestments of distributions 134 1,355
Shares redeemed ............................... (3,241) (34,036)
------- -----------
Net increase .................................. 375,343 $ 3,954,535
======= ===========
* Commencement of operations.
(b) Excludes the unrealized gain on the tax-free issuance of Fund shares for
portfolio securities. The unrealized gain of $30,565 transferred into the Fund
was credited to unrealized gain.
See accompanying Notes to Financial Statements.
10
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FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
December 2, 1997*
through
Septbember 30, 1998
- --------------------------------------------------------------------------------
Net asset value, beginning of period ....................... $ 10.00
---------
Income from investment operations:
Net investment loss .................................. (0.01)
Net realized and unrealized (loss) gain
on investments ...................................... 0.70
---------
Total from investment operations ........................... 0.69
---------
Less distributions:
From net investment income ........................... (0.01)
---------
Net asset value, end of period ............................. $ 10.68
=========
TOTAL RETURN ............................................... 6.91%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ............................ $ 4,010
Ratio of expenses to average net assets:
Before expense reimbursement ......................... 3.98%+
After expense reimbursement .......................... 1.47%+
Ratio of net investment loss to average net assets:
After expense reimbursement .......................... (0.17%)+
Portfolio turnover rate .................................... 54.49%
* Commencement of operations.
+ Annualized.
++ Not Annualized.
See accompanying Notes to Financial Statements.
11
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NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Chase Growth 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 December 2, 1997. The Fund's objective is growth of capital.
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 fair
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. 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 period from inception through September 30, 1998, Chase Investment
Counsel Corp. (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 1.00% based upon the average daily net
assets of the Fund. For the period ended September 30, 1998, the Fund incurred
$23,959 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 pay Fund operating
expenses to the extent necessary to limit the Fund's aggregate annual operating
expenses to 1.48% 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
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
reimbursement) does not exceed 1.48% of average net assets annually. 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 six 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 period ended September 30, 1998, the Advisor reduced
its fees and absorbed Fund expenses in the amount of $60,733; 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 - SECURITIES TRANSACTIONS
For the period ended September 30, 1998, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$4,493,183 and $1,310,073, respectively. For federal income tax purposes, the
Fund has a capital loss carryforward of $190,969 available to offset realized
gains. This carryforward expires in 2006.
13
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INDEPENDENT AUDITOR'S REPORT
THE BOARD OF TRUSTEES AND SHAREHOLDERS
CHASE GROWTH FUND
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments of Chase Growth Fund, series of Advisors Series
Trust, as of September 30, 1998, and the related statements of operations, the
statement of changes in net assets, and the financial highlights for the period
indicated in the accompanying financial statements. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1998, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly in all material respects, the financial position of Chase
Growth Fund, series of Advisors Series Trust, as of September 30, 1998, the
results of its operations, the changes in its net assets and the financial
highlights for the period indicated, in conformity with generally accepted
accounting principles.
MCGLADREY & PULLEN, LLP
New York, New York
October 23, 1998
14
<PAGE>
ADVISOR
Chase Investment Counsel Corp.
300 Preston Avenue, Suite 403
Charlottesville, Virginia 22902-5091
===========
DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261-E
Phoenix, Arizona 85018
===========
CUSTODIAN
Star Bank, N.A.
425 Walnut Street, M/L 6118
Cincinnati, Ohio 45202
===========
TRANSFER AGENT
American Data Services
P.O. Box 5536
Hauppauge, New York 11788-0132
===========
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street
San Francisco, California 94104
===========
AUDITORS
McGladrey & Pullen LLP
555 Fifth Avenue, 8th Floor
New York, NY 10017-2416
