[KAMINSKI LOGO]
ANNUAL REPORT
JUNE 30, 1999
MANAGED BY KAMINSKI ASSET MANAGEMENT, INC.
319 1ST AVENUE NORTH, SUITE 300
MINNEAPOLIS, MN 55401
<PAGE>
August 26, 1999
Dear Shareholder,
We are pleased to bring you this annual report for the Kaminski Poland Fund
covering the period ending June 30, 1999. Over the past year, Poland has offered
much in the way of opportunities for the portfolio. The ride, however, was not
without some stress brought on by unforeseen circumstances and events beyond our
control. Russia's economic collapse in August of last year is a prime example.
However, with the strength and resilience of the Polish market, coupled with our
asset management objectives, the Poland Fund rallied back with vigor. As of this
report, the Kaminski Poland Fund - Class I posted a calendar 1999 return of
26.70%, while the Class A shares had a return of 15.88%* since the inception
date of March 18, 1999. Our benchmark, the WIG Index, produced a return of
15.43% for the same period. This same strength has brought us from the depths of
negative double-digit returns earlier this year, to a June 1999 year-end total
return of (5.09)% for the Class I shares.
Over the course of the last year, we saw a large percentage of our holdings
prosper due to strong performances, solid management, and prudent sector
weightings. Holdings performing below our expectations were a result of not only
the economic collapse in Russia, but in large part due to corporate
consolidations at arguably low valuations. As the Polish market continues to
mature, however, mergers and acquisitions going forward will hopefully prove
profitable for the Fund due to more sophisticated players, improved accounting
methods, and higher valuations. Commensurate with this maturation comes the
improved perception by foreign investors towards Poland.
The future is bright. A testament to the opportunities in Poland lie in the fact
that since our last annual report, numerous U.S. companies have either entered
Poland's market or are expanding existing operations. The Polish market is ripe
with opportunity. Over the course of the next several years, we will witness
Poland continuing to strive for expanded free market trade resulting in
exponential growth. With Poland's entrance into the EU in the early 2000's, the
anticipated doubling of her market capitalization in 3-5 years, and the world's
focus and preoccupation with "Globalization", as managers of the Kaminski Poland
Fund, we feel that Poland remains truly one of the brightest emerging/developing
market plays today.
Cordially,
/s/ M.G. Kaminski
M.G. Kaminski
* Load-adjusted return.
For Class I shares, the average annual total return from inception (July 9,
1997) to June 30, 1999 was (21.70)%.
Past performance is not indicative of future performance. Fund share values will
fluctuate so that your shares, when redeemed, may be worth more or less than
your original investment.
<PAGE>
KAMINSKI POLAND FUND
Comparison of the change in value of a $10,000 investment in the Kaminski Poland
Fund - Class I versus the WIG Index of the Warsaw Stock Exchange.
Kaminski Poland Fund - Class I WIG Index
------------------------------ ---------
11-Jul-97 10,000 10,000
30-Sep-97 9,720 11,042
31-Dec-97 9,060 9,264
31-Mar-98 9,870 10,651
30-Jun-98 8,240 9,934
30-Sep-98 6,020 7,730
31-Dec-98 6,180 8,082
31-Mar-99 6,480 8,925
30-Jun-99 7,830 10,627
Past performance is not predictive of future performance.
WIG Index: The Warsaw Stock Exchange main market index. An unmanaged index of
117 companies based on market capitalizations. Companies held by the Fund will
not be identical to those held by the index.
2
<PAGE>
KAMINSKI POLAND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 1999
- --------------------------------------------------------------------------------
Shares COMMON STOCKS: 86.45% Market Value
- --------------------------------------------------------------------------------
BUILDING AND CONSTRUCTION: 10.82%
16,000 Budimex S.A.*.......................................... $ 93,797
4,850 Exbud S.A.*............................................ 37,827
13,750 Mostostal Krakow S.A.*................................. 25,759
9,500 Mostostal Zabrze S.A................................... 30,025
31,700 Mostostal - Export S.A................................. 39,995
----------
227,403
----------
CHEMICALS - DIVERSIFIED: 3.59%
19,500 Huta Olawa S.A......................................... 37,773
19,500 Polifarb-Cieszyn Wroclaw S.A.*......................... 37,774
----------
75,547
----------
COMMERCIAL BANKS: 19.82%
3,825 Bank Handlowy W Warszawie.............................. 53,134
2,000 Bank Ochrony Srodowiska S.A.*.......................... 32,115
1,000 Bank Przemyslowo - Handlowy S.A.*...................... 51,486
39,500 Big Bank Gdanski S.A................................... 87,590
8,150 Grupa Pekao S.A.*...................................... 94,517
21,000 Kredyt Bank PBI S.A.................................... 97,952
----------
416,794
----------
CONGLOMERATES: 11.44%
17,000 Elektrim Spolka Akcyjna S.A............................ 240,482
----------
FOOD - MISCELLANEOUS/DIVERSIFIED: 6.29%
19,500 Agros Holding S.A.*.................................... 132,208
----------
MEDICAL - DRUGS: 5.65%
5,000 Polfa Kutno*........................................... 72,642
4,550 Polska Grupa Farmaceutyczna*........................... 46,157
----------
118,799
----------
METAL - DIVERSIFIED: 1.65%
5,500 KGHM Polska Miedz S.A.*................................ 34,626
----------
See Notes to Financial Statements.
3
<PAGE>
KAMINSKI POLAND FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 1999, CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
MULTI-LINE INSURANCE: 6.05%
47,000 Polisa S.A............................................. $ 40,730
4,400 Tuir Warta S.A......................................... 86,354
----------
127,084
----------
TECHNOLOGY: 8.45%
51 Comarch S.A.*.......................................... 2,080
6,000 Computer Service Support S.A.*......................... 41,291
5,400 Optimus S.A............................................ 64,965
2,000 Softbank S.A.*......................................... 69,328
----------
177,664
----------
TELECOMMUNICATIONS: 3.33%
10,000 Telekomunikacja Polska - GDR........................... 70,093
----------
TELEVISION: 9.36%
10,500 @Entertainment, Inc.*.................................. 196,875
----------
Total Investments in Securities
(cost $1,848,016)+: 86.45% .......................... $1,817,575
Cash and Other Assets less Liabilities: 13.55%......... 284,912
----------
TOTAL NET ASSETS: 100.00% ............................. $2,102,487
==========
* Denotes a non-income producing security.
+ At June 30, 1999, the cost of securities for Federal tax purposes was the same
as the basis for financial reporting. Unrealized appreciation and depreciation
of securities and foreign currency were as follows:
Gross unrealized appreciation.......................... $ 325,825
Gross unrealized depreciation.......................... (359,177)
----------
Net unrealized depreciation.......................... $ (33,352)
==========
See Notes to Financial Statements.
4
<PAGE>
KAMINSKI POLAND FUND
STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1999
- -------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (cost $1,848,016) .... $ 1,817,575
Cash .................................................... 246,646
Receivables:
Due from Advisor ................................... 13,362
Dividends .......................................... 8,023
Deferred organization costs .............................. 21,525
Prepaid expenses and other assets ........................ 31,598
-----------
Total assets ................................. 2,138,729
-----------
LIABILITIES
Payable for securities purchased: ........................ 611
Accrued expenses ......................................... 35,631
-----------
Total liabilities ............................ 36,242
-----------
NET ASSETS ..................................................... $ 2,102,487
===========
COMPONENTS OF NET ASSETS
Paid-in capital .......................................... $ 2,319,152
Accumulated net realized loss on investments ............. (183,313)
Net unrealized depreciation on investments ............... (33,352)
-----------
Net assets ................................... $ 2,102,487
===========
Net Assets:
Class A Shares ........................................... $ 105,940
Class I Shares ........................................... 1,996,547
-----------
$ 2,102,487
===========
CLASS A SHARES
Net asset value, offering and redemption price per share
($105,940/13,559 shares outstanding;
unlimited number of shares authorized, par value $.01) ... $ 7.81
===========
Maximum Public Offering Price per Share
(net asset value $7.81/.9425) ............................ $ 8.29
===========
CLASS I SHARES
Net asset value, offering and redemption price per share
($1,996,547/255,091 shares outstanding;
unlimited number of shares authorized, par value $.01 ) .. $ 7.83
===========
See Notes to Financial Statements.
5
<PAGE>
KAMINSKI POLAND FUND
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED JUNE 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends (net of withholding tax of $873) ................... $ 12,751
Interest ..................................................... 61
---------
Total income ............................................... 12,812
---------
Expenses
Custodian and accounting fees ................................ 39,381
Administration fees (Note 3) ................................. 29,917
Professional fees ............................................ 25,674
Transfer agent fees .......................................... 24,196
Advisory fees (Note 3) ....................................... 20,142
Registration fees ............................................ 10,265
Amortization of deferred organization costs .................. 6,993
Reports to shareholders ...................................... 4,783
Trustees' fees ............................................... 3,965
Miscellaneous ................................................ 3,491
Distribution fees (Note 4) ................................... 3,473
Insurance expense ............................................ 1,249
---------
Total expenses ............................................. 173,529
Less advisory fee waiver and absorption (Note 3) ........... (135,329)
---------
Net expenses ............................................... 38,200
---------
NET INVESTMENT LOSS ...................................... (25,388)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions ................... (179,661)
Net change in unrealized depreciation on investments ........... 218,184
---------
Net realized and unrealized gain on investments ............ 38,523
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 13,135
=========
See Notes to Financial Statements.
6
<PAGE>
KAMINSKI POLAND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year July 9, 1997*
Ended through
June 30, 1999 June 30, 1998
- --------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM OPERATIONS
Net investment loss ............................ $ (25,388) $ (13,532)
Net realized loss from security transactions ... (179,661) (3,414)
Net change in unrealized depreciation
on investments ............................... 218,184 (251,536)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .................. 13,135 (268,482)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a)
Class A Shares ............................... 95,462 0
Class I Shares ............................... 632,117 1,630,255
----------- -----------
NET INCREASE IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS.......................... 727,579 1,630,255
----------- -----------
NET CHANGE IN NET ASSETS ..................... 740,714 1,361,773
NET ASSETS
Beginning of period .............................. 1,361,773 0
----------- -----------
END OF PERIOD .................................... $ 2,102,487 $ 1,361,773
=========== ===========
(a) A summary of capital shares transactions is as follows:
Year July 9,1997*
Ended through
June 30, 1999 June 30, 1998
---------------------- ----------------------
Shares Value Shares Value
------- ---------- ------- ----------
CLASS A:**
Shares sold ................ 13,560 $ 95,472 0 $ 0
Shares redeemed ............ (1) (10) 0 0
------- ---------- ------- ----------
Net increase ............... 13,559 $ 95,462 0 $ 0
======= ========== ======= ==========
CLASS I:
Shares sold ................ 159,278 $1,084,143 195,353 $1,927,665
Shares redeemed ............ (69,157) (452,026) (30,383) (297,410)
------- ---------- ------- ----------
Net increase ............... 90,121 $ 632,117 164,970 $1,630,255
======= ========== ======= ==========
* Commencement of operations.
** Denotes transactions in Class A shares that were recorded between March 18,
1999, the inception date of the new offering, and June 30, 1999.
See Notes to Financial Statements.
7
<PAGE>
KAMINSKI POLAND FUND
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ---------------------------------------------------------------------------------------------------------
CLASS A CLASS I CLASS I
March 18, 1999** July 9, 1997*
through Year Ended through
June 30, 1999 June 30, 1999 June 30, 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period................. $ 6.35 $ 8.25 $10.00
------ ------ ------
Income (loss) from investment operations:
Net investment loss++.......................... (0.02) (0.02) (0.08)
Net realized and unrealized gain (loss)
on investments............................... 1.48 (0.40) (1.67)
------ ------ ------
Total from investment operations..................... 1.46 (0.42) (1.75)
------ ------ ------
Net asset value, end of period....................... $ 7.81 $ 7.83 $ 8.25
====== ====== ======
Total return at net asset value...................... 22.99%++*** (5.09%)++ (17.50%)++
Ratios/supplemental data:
Net assets, end of period (millions)................. $ 0.1 $ 2.0 $ 1.4
Ratio of expenses to average net assets:
Before expense reimbursement................... 57.30%+ 11.97% 17.57%+
After expense reimbursement.................... 2.75%+ 2.75% 2.75%+
Ratio of net investment loss to average net assets:
Before expense reimbursement................... (56.62)%+ (11.05)% (16.30%)+
After expense reimbursement.................... (2.02)%+ (1.82)% (1.48%)+
Portfolio turnover rate.............................. 28.51% 28.51% 25.74%
</TABLE>
* Commencement of operations.
** Inception date of the Class A shares.
*** Total investment return does not reflect effect of sales charges.
+ Annualized.
++ Net investment loss per share is calculated using the ending balance prior
to consideration of adjustments for permanent book and tax differences.
++ Not annualized.
See Notes to Financial Statements.
8
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Kaminski Poland 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 non-diversified, open-end management investment company. The Fund
began operations on July 9, 1997. The Fund's primary investment objective is to
seek long term growth of capital by investing in publicly traded securities of
companies based in the Republic of Poland.
Effective March 18, 1999, the Fund implemented a multiple class structure
whereby the Fund is authorized to offer two classes of shares: Class A and Class
I. The shares outstanding prior to March 18, 1999 were designated as Class I
shares. The two classes differ principally in the sales loads charged at the
time of purchase and redemption. Both classes of shares have identical rights to
earnings, assets and voting privileges, except for class specific expenses and
exclusive rights to vote on matters affecting only individual classes.
At a meeting on September 10, 1999, the Board of Trustees, in consultation
with the Advisor, determined that the Fund should be reorganized into a trust or
other business entity separate from Advisors Series Trust and seek other
administrative and distribution service providers. The Board intends to make a
final determination with respect to a plan of reorganization or, in the
alternative, liquidation of the Fund, at its meeting on September 22, 1999.
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 the Warsaw
Stock Exchange, 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 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.
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 the 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. Such changes are
included in net realized and unrealized gain or loss from investments.
9
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
Interest income is translated at the exchange rates which existed at
the dates the income was accrued. Income will be booked on ex-date or
as soon as the information becomes available. Exchange gains and
losses related to interest income are included in interest income on
the accompanying Statement 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 repurchase transaction exceeds one business day, the value of
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. 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.
At June 30, 1999, the Fund had accumulated net realized capital loss
carryovers of $25,341 expiring in 2007. To the extent that the Fund
realizes future net capital gains, taxable distributions will be
reduced by any unused capital loss carryovers.
Differences exist between net realized capital losses for financial
statement and tax purposes due to the deferral of capital losses for
tax purposes.
It is the Fund's policy to reclassify the net-effect of permanent
differences between book and taxable income to trust capital accounts
on the statements of assets and liabilities. As a result of permanent
book-to-tax differences for the period ended June 30, 1999, the
accumulated net investment loss was reclassified into paid-in capital.
These reclassifications have no effect on net assets, net asset value
per share, or the change in net assets resulting from operations.
Additionally, net capital losses of $157,972 attributable to security
transactions incurred after October 31, 1998 are treated as arising on
the first day (July 1, 1999) of the Fund's next taxable year.
D. SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES: 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 is recorded on the ex-dividend date, if available, or on a cash
10
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
basis. Realized gains and losses on securities sold are determined on
the basis of identified cost.
Realized and unrealized gains and losses and net investment income,
other than class specific expenses, are allocated daily to each class
of shares based upon the relative proportion of net assets of each
class. Operating expenses directly attributable to a specific class
are charged against the operations of that class.
E. DISTRIBUTIONS: Dividends and capital gain distributions to
shareholders, if available, are recorded on the ex-dividend date.
F. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $35,427
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.
G. CONCENTRATION OF RISK: As of June 30, 1999 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 continually monitor these off-balance sheet risks.
H. 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 ended June 30, 1999, Kaminski Asset Management, Inc. (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 1.45% based upon the average daily net assets of the Fund.
For the period ended June 30, 1999, the Fund incurred $20,142 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 2.75% 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 year and seventh year of the Fund's operations. Any such
11
<PAGE>
KAMINSKI POLAND FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
reimbursement is also contingent upon Board of Trustees' subsequent review and
ratification of the reimbursed amounts. Such reimbursement may not be paid prior
to the Fund's payment of current ordinary operating expenses. For the period
ended June 30, 1999, the Advisor reduced its fees and absorbed Fund expenses in
the amount of $135,329; no amounts were reimbursed.
Investment Company Administration, L.L.C. (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 for the Fund. For the period ended June 30,
1999, the Fund incurred $29,917 in administration fees.
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.
For the year ended June 30, 1999, First Fund Distributors received $4,442
of aggregate commissions from sales of Class A shares. There were no contingent
deferred sales charges from redemptions of Class A shares for the year ended
June 30, 1999. Sales charges are not an expense of the Fund and are not
reflected in the financial statements of the Fund. Contingent deferred sales
charges and/or redemption fees may cause the redemption price per share to
differ from the net asset value per share.
Certain officers of the Fund are also officers and/or directors of the
Administrator and the Distributor; however, they receive no compensation from
the Fund.
NOTE 4 - DISTRIBUTION COSTS
The Trust 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 Advisor, acting as Distribution Coordinator, at an annual rate of up to .25%
of the average daily net assets of each class of shares of the Fund. The fee is
paid to the Distribution Coordinator as reimbursement for, or in anticipation
of, expenses incurred for distribution-related activity. For the period ended
June 30, 1999, the Fund paid the Distribution Coordinator in the amount of
$3,473.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
For the period ended June 30, 1999, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, were $841,846 and
$378,041, respectively.
12
<PAGE>
[PRICEWATERHOUSECOOPERS LLP LOGO]
- --------------------------------------------------------------------------------
PRICEWATERHOUSECOOPERS LLP
650 Third Avenue South
Park Building
Suite 1300
Minneapolis, MN 55402-4333
Telephone (612) 596 6000
Facimile (612) 373 7160
REPORT OF INDEPENDENT ACCOUNTANTS
September 14, 1999
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Kaminski Poland Fund (the
"Fund") at June 30, 1999, the results of its operations for the year then ended,
and the changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at June
30, 1999 by correspondence with the custodian and brokers, provides a reasonable
basis for the opinion expressed above.
As described in Note 1, at a meeting on September 10, 1999, the Board of
Trustees, in consultation with the Advisor, determined that the Fund should be
reorganized into a trust or other business entity separate from Advisors Series
Trust and seek other administrative and distribution service providers. The
Board intends to make a final determination with respect to a plan of
reorganization or, in the alternative, liquidation of the Fund, at its meeting
on September 22, 1999.
/s/ PriceWaterhouseCoopers LLP
<PAGE>
ADVISOR
Kaminski Asset Management, Inc.
319 1st Avenue North, Suite 300
Minneapolis, MN 55401
Web Page: www.polfund.com
(888) POL-FUND
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018
CUSTODIAN
Firstar Bank, N.A.
425 Walnut Street, M.L. 6118
Cincinnati, OH 45202
TRANSFER AGENT
American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
(888) 229-2105
AUDITOR
PricewaterhouseCoopers LLP
650 Third Avenue South, Ste. 1300
Minneapolis, MN 55402
(612) 596-6000
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.
