Investment Company Administration Corporation
4455 E. Camelback Rd., Suite 261E
Phoenix, Arizona 85018
(602) 952-1100
February 9, 1998
Securities and Exchange Commission
Attn: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549
Re: Advisors Series Trust
File No. 333-17391 and 811-07959
Dear Sir or Madam:
On behalf of the above Registrant and pursuant to Rule 30b2-1 under
the Investment Company Act of 1940, I enclose for filing via EDGAR
for the following series of the registrant: A copy of the Ridgeway
Helms Millennium Fund Semi-annual Report to shareholders dated
December 31, 1997.
Sincerely yours,
/s/
Thomas Marschel
Assistant Treasurer - Advisors Series Trust
<PAGE>
RIDGEWAY HELMS
MILLENNIUM FUND
Semi-Annual Report
December 31, 1997
<PAGE>
Dear Fellow Shareholder,
The economy continued to grow throughout 1997 after a remarkable six-year period
of expansion. However, concerns about Asia's financial crisis and what affect it
would have on U.S. economic growth tempered the enthusiasm as we entered the
third quarter. These concerns brought increased price volatility and led to the
550-point stock market decline in October. As we entered the fourth quarter, the
financial markets were still wrangling over what effect Asia's problems will
have on United States corporate earnings growth going forward.
We took a more defensive posture in the fourth quarter by selling certain stocks
that we felt could be susceptible to the slowdown in Asia, such as money center
banks and selected technology companies. While the funds NAV dropped in the
fourth quarter, our strategic shift has made a significant difference by
preventing further declines as the quarter closed. Our cash position finished
the year at approximately 30 percent.
In 1998, we feel there will be a negative effect on earnings growth of
corporations with exposure to Asian economies. Since we believe that earnings
growth drives stock prices, we are reallocating our assets to companies with
little or no Asian exposure or whose stock price adequately reflects Asian
earnings risk.
Which groups are likely to lead in 1998? In the past few years we have seen the
proliferation of PC's and networks that link them together. U.S. companies have
invested heavily in this area to increase worker productivity. European
corporations lagged behind their American counterparts and are now beginning to
spend more on technology. As a result, we see continued growth in information
technology spending due to its contribution to productivity. Furthermore, with
Asian imports now cheaper due to currency declines, corporate efficiency is more
important than ever.
As we enter 1998, we expect continued market volatility until the Asian effect
has been fully discounted in minds of investors. We are excited about the future
prospects of our current holdings as well as our cash position, which will be
put to use as market volatility presents opportunity.
We appreciate the support and confidence you have placed in us.
Sincerely,
/s/
N. Joseph Nahas
Portfolio Manager
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS at December 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 70.56% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Applications Software: 4.83%
<S> <C> <C>
8,000 People Software, Inc.......................... $ 311,000
---------
Computer Memory Devices: 1.20%
4,000 Seagate Technology............................ 77,000
------
Computer Software: 6.75%
3,000 BMC Software, Inc............................. 196,687
4,500 Computer Associates International, Inc........ 237,938
-------
434,625
-------
Data Processing/Management: 2.07%
10,000 Sybase, Inc................................... 133,437
-------
Electronic Components-Semiconductors: 11.88%
10,000 Intel Corp.................................... 496,563
4,000 Level One Communications, Inc................. 112,750
5,000 PMC Sierra, Inc............................... 155,937
-------
765,250
-------
Electronic Semiconductor Equipment: 8.22%
9,000 Applied Material, Inc......................... 270,844
8,000 Novellus Systems, Inc......................... 258,750
-------
529,594
-------
Medical Information System: 2.98%
4,000 HBO & Co...................................... 191,875
-------
Medical Instruments: 5.04%
3,000 Boston Scientific Corp........................ 137,625
3,000 Guidant Corp.................................. 186,750
-------
324,375
-------
Micro Computers: 10.48%
6,000 Compaq Computer Corp.......................... 338,625
4,000 Dell Computer Corp............................ 336,125
-------
674,750
-------
Networking Products: 1.63%
3,000 3 Com Corp.................................... 104,719
-------
See Notes to Financial Statements.
<PAGE>
SCHEDULE OF INVESTMENTS at December 31, 1997 (Unaudited), Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Savings and Loans/Thrifts: 1.74%
3,000 Golden State Bancorp, Inc..................... $ 112,125
---------
Telecommunication Equipment: 13.74%
1,000 Advanced Fibre Communication.................. 29,250
4,000 Ciena Corp.................................... 245,000
5,000 Lucent Technologies, Inc...................... 399,375
4,000 Tellabs, Inc.................................. 211,125
-------
884,750
-------
Total Common Stocks (cost $5,116,059)......... 4,543,500
---------
Total Investments in Securities
(cost $5,116,059+): 70.56% ................. 4,543,500
Other Assets less Liabilities: 29.44%......... 1,895,628
---------
Total Net Assets: 100.0% ..................... $ 6,439,128
===========
<FN>
+At December 31, 1997, 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................. $ 227,276
Gross unrealized depreciation................. (799,835)
--------
Net unrealized depreciation............. $ (572,559)
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at December 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities, at value
(identified cost $5,116,059) ................................. $4,543,500
Cash............................................................. 1,867,794
Receivables:
Dividends..................................................... 440
From Advisor.................................................. 1,066
Deferred organization costs...................................... 32,270
Prepaid expenses................................................. 1,725
-----
Total assets .............................................. 6,446,795
---------
LIABILITIES
Administration fee payable....................................... 2,548
Accrued expenses................................................. 5,119
-----
Total liabilities.......................................... 7,667
-----
NET ASSETS $6,439,128
==========
Net asset value, offering and redemption price per share
($6,439,128/719,994 shares outstanding;
unlimited number of shares authorized
without par value) ........................................ $8.94
=====
COMPONENTS OF NET ASSETS
Paid-in capital ................................................. $7,235,609
Accumulated net investment loss.................................. (21,249)
Accumulated net realized loss on investments..................... (202,673)
Net unrealized depreciation on investments....................... (572,559)
--------
Net assets ................................................... $6,439,128
==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Period from July 16, 1997* through December 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Dividends..................................................... $ 4,229
Interest...................................................... 13,715
------
Total income............................................... 17,944
------
Expenses
Advisory fees................................................. 25,558
Administration fees........................................... 13,808
Custodian and accounting fees................................. 10,035
Transfer agent fees........................................... 5,984
Audit fees.................................................... 5,064
Reports to shareholders....................................... 3,683
Amortization of deferred organization costs................... 3,271
Trustees' fees................................................ 2,302
Legal fees.................................................... 1,841
Miscellaneous................................................. 2,518
-----
Total expenses............................................. 74,064
Less: expenses reimbursed.................................. (34,871)
-------
Net expenses............................................... 39,193
------
Net investment loss .................................... (21,249)
-------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss from security transactions.................. (202,673)
Net change in unrealized depreciation of investments.......... (572,559)
--------
Net loss on investments.................................... (775,232)
--------
Net Decrease in Net Assets Resulting
from Operations ...................................... $ (796,481)
==========
<FN>
*Commencement of operations.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
July 16, 1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN ASSETS FROM
OPERATIONS
<S> <C>
Net investment loss................................................. $ (21,249)
Net realized loss from security transactions........................ (202,673)
Net change in unrealized depreciation of securities................. (572,559)
--------
Net decrease in net assets resulting from operations ......... (796,481)
--------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a)........................................... 7,235,609
---------
Total increase in net assets ................................. 6,439,128
NET ASSETS
Beginning of period................................................. -0-
-
End of period (including accumulated
net investment loss of $21,249).................................. $6,439,128
==========
<FN>
(a) A summary of capital share transactions is as follows:
July 16,1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold....................................... 734,489 $7,375,044
Shares redeemed................................... 14,495 139,435
------ -------
Net increase...................................... 719,994 $7,235,609
======= ==========
*Commencement of operations.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
July 16, 1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period.............................. $10.00
Loss from investment operations:
Net investment loss............................................ (0.03)
Net realized and unrealized loss on investments................ (1.03)
-----
Total from investment operations.................................. (1.06)
-----
Net asset value, end of period.................................... $ 8.94
======
Total return...................................................... (10.60)%#
Ratios/supplemental data:
Net assets, end of period (thousands)............................. $6,439
Ratio of expenses to average net assets:
Before expense reimbursement................................... 2.73%+
After expense reimbursement.................................... 1.45%+
Ratio of net investment loss to average net assets:
Before expense reimbursement................................... (2.07)%+
After expense reimbursement.................................... (0.78)%+
Portfolio turnover rate........................................... 70.13%
Average commission rate paid per share............................ $.0285
<FN>
*Commencement of operations.
#Not annualized.
+Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS at December 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Ridgeway Helms Millennium Fund (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's primary investment objective
is growth of capital. The Fund began operations on July 16, 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. Investments in securities traded on a national
securities exchange or included in the NASDAQ National Market System
are valued at the last reported sale price at the close of regular
trading on the last business day of the period; securities traded on
an exchange or NASDAQ for which there have been no sales and other
over-the-counter securities are valued at the last reported bid
price. Securities for which quotations are not readily available are
valued at their respective fair values as determined in good faith
by the Board of Trustees. 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. Interest income is recognized on an accrual
basis. Income and capital gains distributions to shareholders are
determined in accordance with income tax regulations, which may
differ from generally accepted accounting principles.
D. Deferred Organization Costs. The Fund has incurred expenses of
$35,000 in connection with the organization of the Fund. These costs
have been deferred and are being amortized on a straight-line basis
through the period ending July 15, 2002.
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, as well as the reported amounts of revenues
and expenses during the period. Actual results could differ from
those estimates.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the period ended December 31, 1997, Ridgeway Helms Investment
Management (the "Advisor") provided the Fund with investment management services
under an Investment Advisory Agreement. The Advisor furnishes all investment
advice, office space and certain administrative services, and provides most of
the personnel needed by the Fund. As compensation for its services, the Advisor
receives a monthly fee at the annual rate of .95% based upon the average daily
net assets of the Fund.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reimburse the Fund to the extent necessary to limit the Fund's
aggregate annual operating expenses to 1.45% of average net assets annually. Any
such reductions made by the Advisor in its fees or payments may be subject to
reimbursement by the Fund through December 31, 2000 if the Fund is able to
effect such reimbursement and remain in compliance with any expense limitations
in effect. For the period ended December 31, 1997, the Advisor has reimbursed
the Fund in the amount of $34,871.
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 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 net assets, subject to a $30,000 annual minimum.
Ridgeway Helms Securities Corp. (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 Advisor.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of securities, excluding
short-term securities, for the period ended December 31, 1997 were $8,827,181
and $3,508,448, respectively.
<PAGE>
Advisor
Ridgeway Helms Investment Management, Inc.
303 Twin Dolphin Drive, Suite 530
Redwood Shores, CA 94065
Distributor
Ridgeway Helms Securities Corporation
303 Twin Dolphin Drive, Suite 530
Redwood Shores, CA 94065
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.
