Investment Company Administration Corporation
4455 E. Camelback Rd., Suite 261E
Phoenix, Arizona 85018
(602) 952-1100
February 18, 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 Kaminski
Poland Fund Semi-annual Report to shareholders dated December 31,
1997.
Sincerely yours,
Thomas Marschel
Assistant Treasurer - Advisors Series Trust
<PAGE>
KAMINSKI POLAND FUND
SEMI-ANNUAL REPORT
December 31, 1997
MANAGED BY
KAMINSKI ASSET MANAGEMENT, INC.
210 NORTH 2ND STREET SUITE 050
MINNEAPOLIS, MN 55401
<PAGE>
January 14, 1998
Dear Shareholders,
We are pleased to bring you this semi-annual report for the Kaminski Poland Fund
covering the period ended December 31, 1997. During this period, your Fund
posted a six-month total return of -9.4% in comparison to the WIG Index
producing a total return of -10.62%.
The past year brought floods, currency fluctuations, a weak stock market,
electoral jitters, and an alarming growth in the trade deficit and current
account balance. Poland is prepared to shrug off these setbacks, leading the way
with a newly-elected government and an optimistic view of admittance into NATO
and the Economic Union. The 1998 budget should also prove a boon. If adopted at
the proposed deficit rate of 1.5% of gross domestic product, the National Bank
of Poland should be able to ease its tight monetary policy. This would reduce
the cost of funding for businesses, boosting further economic growth and
healthier earnings. Reduced rates would also help banks, which have seen margins
come under pressure during the past 12 months. As world economies continue to
integrate and emerging market economies such as Poland continue to grow faster
than the world average, the importance of emerging markets is likely to expand.
All this could add up to a good reason to buy Poland now at the onset of what
could prove to be a banner year.
Cordially,
/s/
M.G. Kaminski
President
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS at December 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 80.43% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Building and Construction: 24.89%
<S> <C> <C>
5,800 Budimex S.A.*........................................................... $ 21,884
4,300 Exbud S.A.*............................................................. 40,256
6,000 KPBP Bick............................................................... 30,299
7,900 Mostostal Krakow........................................................ 29,135
10,200 Mostostal - Export...................................................... 25,754
8,500 Polifarb Cieszyn - Wroclaw.............................................. 40,271
7,700 Prochem S.A............................................................. 24,029
------
211,628
-------
Chemicals - Diversified: 6.67%
1,400 Gorazdze S.A............................................................ 34,554
6,100 Huta Olawa S.A.......................................................... 22,151
------
56,705
------
Commercial Banks: 9.54%
2,000 Bank Handlowyw Warszawie*............................................... 25,533
1,550 Bank Rozwoju Eksportu S.A............................................... 32,100
425 Bank Slaski S.A......................................................... 23,511
------
81,144
------
Computers - Micro: 2.64%
850 Optimus S.A............................................................. 22,426
------
Electric Products: 4.21%
3,700 Elektrim Spolka Akcyjna S.A............................................. 35,794
------
Food - Confectionary: 4.68%
775 E. Wedel S.A............................................................ 39,795
------
Food - Miscellaneous/Diversified: 4.63%
1,900 Agros Holding S.A.*..................................................... 39,348
------
Machinery - General Industrial: 4.27%
20,000 Remak S.A.*............................................................. 36,313
------
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
SCHEDULE OF INVESTMENTS at December 31, 1997 (Unaudited), Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing: 3.05%
1,725 Pepees*................................................................. $ 25,937
--------
Medical - Drugs: 4.13%
1,225 Polfa Kutno*............................................................ 35,100
------
Metal - Diversified: 2.69%
6,200 KGHM Polska Miedz*...................................................... 22,866
------
Rubber - Tires: 4.45%
1,550 Debica S.A.............................................................. 37,817
------
Television: 4.58%
3,500 At Entertainment, Inc................................................... 38,937
------
Total Common Stocks (cost $768,839)..................................... 683,810
-------
Total Investments in Securities (cost $768,839+): 80.43% ............... 683,810
Other Assets less Liabilities: 19.57%................................... 166,413
-------
Total Net Assets: 100.0% ............................................... $ 850,223
=========
<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........................................... $ 14,329
Gross unrealized depreciation........................................... (99,358)
-------
Net realized depreciation......................................... $ (85,029)
=========
*Securities are non-income producing.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at December 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments in securities, at value (identified cost $768,839)......................... $ 683,810
Cash................................................................................... 172,675
Receivable from Advisor................................................................ 64,377
Deferred organization costs............................................................ 32,031
Prepaid expenses....................................................................... 8,147
-----
Total assets .............................................................. 961,040
-------
LIABILITIES
Payables:
Administration fee............................................................... 2,548
Distribution fees................................................................ 183
Deferred organization costs...................................................... 35,000
Securities purchased............................................................. 39,527
Accrued expenses....................................................................... 33,559
------
Total liabilities.......................................................... 110,817
-------
NET ASSETS $ 850,223
==========
Net asset value, offering and redemption price per share
($850,223/93,883 shares outstanding;
unlimited number of shares authorized without par value) ........................ $ 9.06
======
COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $ 937,421
Accumulated net investment loss........................................................ (2,169)
Undistributed net realized gain on investments......................................... -0-
Net unrealized depreciation of investments............................................. (85,029)
-------
Net assets ...................................................................... $ 850,223
=========
</TABLE>
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Period from July 9, 1997* through December 31,
1997 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Interest......................................................................... $ 5,349
-------
Total income............................................................... 5,349
-----
Expenses
Custodian and accounting fees.................................................... 20,520
Administration fees.............................................................. 14,383
Auditing fees.................................................................... 7,672
Registration fees................................................................ 7,018
Transfer agent fees.............................................................. 6,233
Reports to shareholders.......................................................... 4,795
Advisory fees.................................................................... 3,911
Amortization of deferred organization costs...................................... 3,397
Legal fees....................................................................... 2,877
Trustees' fees................................................................... 1,918
Miscellaneous.................................................................... 1,678
Insurance........................................................................ 730
Distribution fees................................................................ 674
---
Total expenses............................................................. 75,806
Less: expenses reimbursed.................................................. (68,288)
-------
Net expenses............................................................... 7,518
-----
Net investment loss ................................................. (2,169)
------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized gain from security transactions..................................... -0-
Net change in unrealized depreciation of investments............................. (85,029)
-------
Net loss on investments.................................................... (85,029)
-------
Net Decrease in Net Assets Resulting from Operations ................ $ (87,198)
=========
<FN>
*Commencement of operations.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
July 9, 1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN ASSETS FROM
OPERATIONS
<S> <C>
Net investment loss........................................................................ $ (2,169)
Net realized gain from security transactions............................................... -0-
Net change in unrealized depreciation of securities........................................ (85,029)
-------
Net decrease in net assets resulting from operations ................................ (87,198)
-------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in outstanding shares (a)............... 937,421
-------
Total increase in net assets ........................................................ 850,223
NET ASSETS
Beginning of period........................................................................ -0-
-
End of period (including accumulated net investment loss of $2,169)........................ $ 850,223
=========
<FN>
(a) A summary of capital share transactions is as follows:
July 9,1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold................................................................. 98,986 $987,548
Shares issued in reinvestment of distributions.............................. -0- -0-
Shares redeemed............................................................. (5,103) (50,127)
------ -------
Net increase................................................................ 93,883 $937,421
====== ========
*Commencement of operations.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
July 9, 1997*
through
December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period....................................................... $10.00
Loss from investment operations:
Net investment loss.................................................................. (0.02)
Net realized and unrealized loss on investments...................................... (0.92)
-----
Total from investment operations........................................................... (0.94)
-----
Net asset value, end of period............................................................. $ 9.06
======
Total return............................................................................... (9.40)%#
Ratios/supplemental data:
Net assets, end of period (thousands)...................................................... $ 850
Ratio of expenses to average net assets:
Before expense reimbursement......................................................... 27.86%+
After expense reimbursement.......................................................... 2.75%+
Ratio of net investment loss to average net assets:
Before expense reimbursement......................................................... (25.90%)+
After expense reimbursement.......................................................... (0.80%)+
Portfolio turnover rate.................................................................... 0.00%
Average commission rate paid per share..................................................... $.1396
<FN>
*Commencement of operations.
#Not annualized.
+Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS at December 31, 1997 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Kaminski Poland 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 to
seek long-term growth by investing in publicly traded securities of companies
based in the Republic of Poland. The Fund began operations on July 9, 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 (GAAP).
A. Security Valuation. Investments in securities traded on the WIG,
Poland's primary exchange, 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 the exchange for which there have
been no sale 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 Advisor
pursuant to guidelines of the Board of Trustees. Short-term
investments are stated at cost, which when combined with accrued
interest, approximates market value.
U.S. Government securities with less than 60 days remaining to
maturity when acquired by the Fund are valued on an amortized cost
basis. U.S. Government securities with more than 60 days remaining
to maturity are valued at the current market value (using the mean
between the bid and asked price) until the 60th day prior to
maturity, and are then valued at amortized cost based upon the value
on such date unless the Board determines during such 60-day period
that this amortized cost basis does not represent fair value.
Foreign securities are recorded in the financial statements after
translation to U.S. dollars, based on the applicable exchange rate
at the end of the period. The Fund does not isolate that portion of
the results of operations arising as a result of changes in the
currency exchange rate from the fluctuations arising as a result of
changes in the market prices of investments during the period.
Interest income is translated at the exchange rates which existed at
the dates the income was accrued. Exchange gains and losses related
to interest income are included in interest income on the
accompanying Statements of Operations.
B. Repurchase Agreements. The Fund may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve
Board, with member banks of the Federal Reserve System or with such
other brokers or dealers that meet the credit guidelines established
by the Board of Trustees. The Fund will always receive and maintain,
as collateral, securities whose market value, including accrued
interest, will be at least equal to 102% of the dollar amount
invested by the Fund in each agreement, and the Fund will make
payment for such securities only upon physical delivery or upon
evidence of book entry transfer to the account of the custodian. To
the extent that the term of any
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued
repurchase transaction exceeds one business day, the value of the
collateral is marked-to-market on a daily basis to ensure the
adequacy of the collateral.
If the seller defaults and the value of the collateral declines, or
if bankruptcy proceedings are commenced with respect to the seller
of the security, realization of the collateral by the Fund may be
delayed or limited.
C. Security Transactions, Dividends and Distributions. Security
transactions are accounted for on the trade date. The cost of
securities owned on realized transactions are relieved on the
first-in, first-out (FIFO) basis for book and tax purposes. Dividend
income and distributions to shareholders are recorded on the
ex-dividend date.
D. 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.
E. Deferred Organization Costs. The Fund has incurred expenses of
$35,000 in connection with its 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.
F. Concentration of Risk. As of December 31, 1997 the Fund held a
significant portion of its assets in foreign securities. Certain
price and foreign exchange fluctuations as well as economic and
political situations in Poland could have an impact on the Fund's
net assets. It is the Trust's policy to continuously monitor these
off-balance sheet risks.
G. 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 amount of assets and liabilities at the date of the
financial statements. Actual results could differ from these
estimates.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
For the period ended December 31, 1997, Kaminski Asset Management, Inc.
(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 1.45% of average net assets.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund or reimburse the Fund to the
extent necessary to limit the Fund's aggregate annual operating expenses to
2.75% 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 $68,288.
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued
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.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Administrator.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and the Distributor.
NOTE 4 - DISTRIBUTION COSTS
The Fund has adopted a Distribution Plan (the "Plan") in accordance with
Rule 12b-1 under the 1940 Act. The Plan provides that the Fund may pay a fee to
the Distributor at an annual rate of up to 0.25% of the average daily net assets
of the Fund. The fee is paid to the Distributor as reimbursement for, or in
anticipation of, expenses incurred for distribution-related activity.
NOTE 5 - 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 $768,839 and
$0, respectively.
<PAGE>
Advisor
Kaminski Asset Management, Inc.
210 North 2nd Street, Suite 050
Minneapolis, MN 55401
Web Page www.polfund.com
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
(888) 229-2105
Legal Counsel
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, CA 94104
Thisreport 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.
