SEGALL BRYANT & HAMILL
----------
Mid Cap Fund
Annual Report
April 30, 2000
<PAGE>
SEGALL BRYANT & HAMILL MID CAP FUND
June 15, 2000
Dear Fellow Shareholder:
For the one-year period ending April 30, 2000, the Segall Bryant &
Hamill Mid Cap Fund's total return was 14.93%, compared to a gain in the Russell
Mid Cap Index of 16.01%. Year-to-date through April 30, 2000 the Fund earned
8.37%, comparing favorably to the 4.85% earned by the Russell Mid Cap Index.
As we communicated to you in the past, we feel that the opportunity for
investing in the mid capitalization tier of the market is as attractive as it
has been in the past decade. We believe that we can find companies in this area
of the market that meet our investment criteria and offer good value. Although
we are focusing on smaller companies, the criteria which we use to select them
remains unchanged: consistently high return on invested capital (ROI), double
digit earnings growth and high levels of free cash flow. We continue to be
owners of stocks and not renters, focusing on the long-term intrinsic value of
their businesses, rather than their short-term trading potential.
Over the past year, (especially in the first quarter of 2000), there
has been a dramatic shift in the investment landscape. Several issues are worth
mentioning. First, the speculation that drove valuations in the IPO market to
unprecedented levels came to an end, as the market became more rational and
started to focus on companies that have viable business models. Secondly, the
mid capitalization tier of the market started to perform much better, due to a
combination of valuation and better relative earnings growth. Although mid cap
stocks have done well over the past year, the fundamental outlook remains
strong. Mid cap stocks currently sell at a 42% valuation discount to the largest
100 equities in the market. Historically, they have traded on par with large
caps.
The Fund's outperformance year-to-date through April 30 is a
combination of several factors. During the first quarter, we increased our
exposure in several technology stocks that had been depressed due to Y2K fears.
Most of these investments were in computer service stocks such as payroll and
credit card processors, wireless billing companies and outsourcing. These stocks
tend to have recurring revenue bases and perform well in volatile markets.
Secondly, the market's tone changed drastically in March as "new" economy stocks
corrected and investors returned to higher quality stocks. A number of our core
holdings performed well during this
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SEGALL BRYANT & HAMILL MID CAP FUND
period and continue to hold their gains. Volatility will continue to drive the
market throughout the balance of the year as investors come to grip with higher
interest rates and the realization that 20% annual returns in the equity markets
are not guaranteed.
Our outlook for the economy is for stronger growth in 2000; this is a
change from our former outlook of moderation. Although interest rates have
started to rise, the economy continues to strengthen, forcing the Federal
Reserve to take a tightening stance. Over the past six months, we have started
to see an uptick in cyclical inflation as international economies continue to
recover from the late 1998 currency devaluations. We believe the Fed will
continue to tighten until the economy slows and/or the speculation in the equity
markets moderates. While we do not foresee the Federal Reserve moving to a
protracted tightening stance, the probability of at least two more rate
increases from the current Fed funds level of 6.50% is high. In time, these
moves should slow the economy to a reasonable level of growth and be positive
for the markets.
Our focus on high ROI mid capitalization stocks has led us to invest in
high quality companies that operate in unique industry settings. This strategy
leads us to concentrate the Fund on the growth segments of the economy such as
Health Care, Technology and Finance. We will tend to be overweight in these
sectors and focus less on the more cyclical sectors of the market.
We remain confident that our selection process will lead to
above-average results over time. By focusing on mid cap growth companies with
reasonable valuations, we believe that our shareholders will benefit from both
the depressed valuation levels of this sector of the market and owning high
quality growth companies.
/s/ David P. Kalis
David P. Kalis, CFA
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SEGALL BRYANT & HAMILL MID CAP FUND
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE SEGALL
BRYANT & HAMILL MID CAP FUND VERSUS THE RUSSELL MIDCAP INDEX(1) AND THE
LIPPER MID-CAP CORE FUNDS INDEX.(2)
Average Annual Total Return(3)
1 Year ........................ 14.93%
Since Inception (4/1/99) ...... 19.18%
SEGALL BRYANT & RUSSELL LIPPER MID-CAP CORE
HAMILL MIDCAP FUND MIDCAP INDEX FUNDS INDEX
------------------ ------------ -----------
1-Apr-99 10,000 10,000 10,000
30-Apr-99 10,520 10,691 10,574
31-Jul-99 10,376 10,733 11,062
31-Oct-99 10,112 10,566 11,079
31-Jan-00 10,551 11,434 13,322
30-Apr-00 12,091 12,402 14,369
Past performance does not predict future performance.
(1) The Russell Mid Cap Index measures the performance of the 800 smallest
companies contained within the largest 1,000 companies of the Russell 3,000
Index - An Index which represents approximately 98% of the investable U.S.
equity market.
(2) The Lipper Mid Cap Core Fund Index is comprised of funds that invest at
least 75% of their equity assets in companies with market capitalizations
(on a 3 year weighted basis) of less than 300% of the dollar-weighted
median market capitalization of the S&P Mid Cap 400 Index. The funds in
this index have a similar investment objective as the Segall Bryant &
Hamill Mid Cap Fund.
(3) Average annual total return represents the average change in account value
over the periods indicated.
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SEGALL BRYANT & HAMILL MID CAP FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 96.98% Market Value
--------------------------------------------------------------------------------
ADVERTISING AGENCIES: 2.74%
6,800 The Interpublic Group of Companies, Inc............ $ 278,800
-----------
BROADCAST MEDIA: 1.99%
4,100 Adelphia Communications Corporation*............... 203,206
-----------
COMMERCIAL BANKS - EASTERN U.S.: 2.06%
10,350 Charter One Financial, Inc......................... 210,234
-----------
COMMUNICATIONS EQUIPMENT: 1.78%
7,300 PairGain Technologies, Inc.*....................... 181,587
-----------
COMPUTER - PERIPHERAL: 3.96%
5,900 American Power Conversion
Corporation*..................................... 208,344
1,650 Lexmark International, Inc.*....................... 194,700
-----------
403,044
-----------
COMPUTER SERVICES: 15.91%
13,500 Ceridian Corp.*.................................... 292,781
2,650 Computer Sciences Corporation*..................... 216,141
19,000 Concord EFS, Inc.*............................... 425,125
8,700 Convergys Corporation*............................. 382,800
8,800 SunGard Data Systems Inc.*......................... 304,150
-----------
1,620,997
-----------
COMPUTER SOFTWARE: 5.86%
4,700 National Computer Systems, Inc..................... 241,756
2,200 Rational Software Corporation*..................... 187,275
2,700 Symantec Corporation*.............................. 168,581
-----------
597,612
-----------
CONSUMER PRODUCTS - MISCELLANEOUS: 1.15%
5,600 Rayovac Corporation*............................... 116,900
-----------
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SEGALL BRYANT & HAMILL MID CAP FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000, CONTINUED
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Shares Market Value
--------------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING: 5.72%
9,900 Littlefuse, Inc.*.................................. $ 351,450
6,700 Mettler-Toledo International Inc.*................. 231,149
-----------
582,599
-----------
ELECTRONIC - INSTRUMENTS: 1.41%
2,400 PE Corporation - PE Biosystems Group............... 144,000
-----------
ELECTRONICS: 5.50%
7,101 Molex Incorporated................................. 284,040
4,600 Sanmina Corporation*............................... 276,287
-----------
560,327
-----------
ELECTRONICS - SEMI: 5.91%
3,100 Altera Corporation*................................ 316,975
5,000 Linear Technology Corporation...................... 285,625
-----------
602,600
-----------
FINANCIAL GUARANTEE INSURANCE: 2.96%
6,300 MGIC Investment Corporation........................ 301,219
-----------
HC - DRUGS: 2.38%
5,500 ALZA Corporation*.................................. 242,343
-----------
HEALTHCARE - MEDICAL SUPPLY & PRODUCTS: 3.12%
10,200 Sybron International Corporation*.................. 317,475
-----------
HEALTHCARE - SERVICES: 2.26%
13,500 IMS Health Incorporated............................ 230,344
-----------
IDENTIFICATION SYSTEMS / DEVICES: 2.34%
4,275 Symbol Technologies, Inc........................... 238,331
-----------
LIFE / HEALTH INSURANCE: 2.16%
9,250 Protective Life Corporation........................ 220,266
-----------
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SEGALL BRYANT & HAMILL MID CAP FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000, CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
MANUFACTURE - DIVERSE: 2.29%
6,900 Graco Inc. ........................................ $ 233,738
-----------
MEDICAL INSTRUMENTS: 1.75%
5,000 Biomet, Inc........................................ 178,438
-----------
OFFICE SUPPLIES AND FORMS: 2.54%
3,950 Avery Dennison Corporation......................... 259,219
-----------
OIL - EXPLORATION & PRODUCTION: 2.60%
5,600 Stone Energy Corporation*.......................... 264,600
-----------
OIL & GAS / REFINE & MARKET: 1.28%
3,800 Santa Fe International Corporation................. 130,625
-----------
PERSONAL CARE: 1.56%
3,600 The Estee Lauder Companies Inc..................... 158,850
-----------
RETAIL - DISCOUNT: 7.42%
6,500 BJ's Wholesale Club, Inc.*......................... 230,344
12,300 Dollar General Corporation......................... 281,363
5,100 Kohl's Corporation*................................ 244,800
-----------
756,507
-----------
SERVICES - COMMERCIAL: 6.84%
7,350 Cintas Corporation................................. 291,244
7,400 DeVry Inc.*........................................ 176,213
3,750 Robert Half International Inc.*.................... 229,219
-----------
696,676
-----------
TELEPHONE: 1.49%
6,200 CenturyTel, Inc.................................... 151,900
-----------
TOTAL COMMON STOCKS
(COST $8,382,166): 96.98%........................ 9,882,437
-----------
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SEGALL BRYANT & HAMILL MID CAP FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000, CONTINUED
--------------------------------------------------------------------------------
Principal
Amount SHORT-TERM INVESTMENTS: 2.41% Market Value
--------------------------------------------------------------------------------
$245,624 Firstar Stellar Treasury Fund
(Cost $245,624).................................. $ 245,624
-----------
Total Investments in Securities
(Cost $8,627,790+): 99.39%....................... 10,128,061
Assets In Excess of Liabilities: 0.61%............. 62,202
-----------
TOTAL NET ASSETS: 100.00%.......................... $10,190,263
===========
* Non-income producing security.
+ At April 30, 2000 the cost of securities for federal tax purposes was
$8,657,463. Gross unrealized appreciation and depreciation of securities is as
follows:
Gross unrealized appreciation..................... $ 1,942,406
Gross unrealized depreciation..................... (471,808)
-----------
Net unrealized appreciation....................... $ 1,470,598
===========
See accompanying Notes to Financial Statements.
8
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SEGALL BRYANT & HAMILL MID CAP FUND
STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 2000
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $8,627,790) ........................... $10,128,061
Receivables
Due from Advisor ...................................... 2,986
Dividends and interest ................................ 2,371
Fund shares sold ...................................... 500
Securities sold ....................................... 86,197
Prepaid expenses .......................................... 6,647
-----------
Total assets ..................................... 10,226,762
-----------
LIABILITIES
Payables
Administration fees ................................... 2,466
Accrued expenses .......................................... 34,033
-----------
Total liabilities ................................ 36,499
-----------
NET ASSETS ..................................................... $10,190,263
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($10,190,263 / 709,130 shares outstanding; unlimited
number of shares authorized, par value $0.01) ............. $ 14.37
===========
COMPONENTS OF NET ASSETS
Paid-in capital ........................................... $ 7,989,809
Accumulated net realized gain on investments .............. 700,183
Net unrealized appreciation on investments ................ 1,500,271
-----------
Net assets ................................................ $10,190,263
===========
See accompanying Notes to Financial Statements.
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SEGALL BRYANT & HAMILL MID CAP FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends ............................................ $ 47,986
Interest ............................................. 11,950
-----------
Total income ................................... 59,936
-----------
Expenses
Advisory fees (Note 3) ............................... 72,047
Professional fees .................................... 46,027
Administration fees (Note 3) ......................... 30,082
Distribution fees (Note 4) ........................... 24,016
Fund accounting fees ................................. 19,051
Registration fees .................................... 15,742
Transfer agent fees .................................. 14,037
Custody fees ......................................... 7,721
Reports to shareholders .............................. 6,514
Other ................................................ 4,274
Trustee fees ......................................... 1,359
-----------
Total expenses .................................. 240,870
Less, advisory fee waiver and
absorption (Note 3) .......................... (106,079)
-----------
Net expenses .................................... 134,791
-----------
NET INVESTMENT LOSS ......................... (74,855)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions ............. 775,108
Net change in unrealized appreciation on investments...... 591,738
-----------
Net realized and unrealized gain on investments ...... 1,366,846
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... $ 1,291,991
===========
See accompanying Notes to Financial Statements.
10
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SEGALL BRYANT & HAMILL MID CAP FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Year April 1, 1999*
ended through
April 30, 2000 April 30, 1999
-------------- --------------
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss ........................ $ (74,855) $ (1,476)
Net realized gain on security
transactions .............................. 775,108 463,426
Net change in unrealized appreciation/
(depreciation) on investments ............. 591,738 (54,025)
------------ -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............. 1,291,991 407,925
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net realized gain on security
transactions .............................. (462,020) --
------------ -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a) .......... 927,329 8,025,038
------------ -----------
TOTAL INCREASE IN NET ASSETS ............... 1,757,300 8,432,963
------------ -----------
NET ASSETS
Beginning of period ........................... 8,432,963 --
------------ -----------
END OF PERIOD ................................. $ 10,190,263 $ 8,432,963
=========== ===========
(a) A summary of capital shares transactions is as follows:
Year ended April 1, 1999* through
April 30, 2000 April 30, 1999
---------------------- -----------------------
Shares Value Shares Value
-------- ----------- -------- -----------
Shares sold .............. 196,244 $ 2,603,637 41,509 $ 534,032
Shares issued in reor-
ganization (Note 6) ... -- -- 606,336 7,570,605
Shares issued in
reinvestment of
distributions ......... 32,831 425,163 -- --
Shares redeemed .......... (161,531) (2,101,471) (6,259) (79,599)
-------- ----------- -------- -----------
Net increase ............. 67,544 $ 927,329 641,586 $ 8,025,038
======== =========== ======== ===========
* Commencement of operations.
See accompanying Notes to Financial Statements.
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SEGALL BRYANT & HAMILL MID CAP FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
Year April 1, 1999*
ended through
April 30, 2000 April 30, 1999
-------------- --------------
Net asset value, beginning of period........... $13.14 $12.49
------ ------
Income from investment operations:
Net investment loss.......................... (0.11) --
Net realized and unrealized gain
on investments.............................. 1.99 0.65
------ ------
Total from investment operations............... 1.88 0.65
------ ------
Less distributions:
Dividends from net realized gain............. (0.65) --
------ ------
Net asset value, end of period................. $14.37 $13.14
====== ======
Total return................................... 14.93% 5.20%++
Ratios/supplemental data:
Net assets, end of period (thousands).......... $10,190 $8,433
Ratio of expenses to average net assets:
Before expense reimbursement................. 2.51% 7.35%+
After expense reimbursement.................. 1.40% 1.34%+
Ratio of net investment loss to average net
assets after expense reimbursement........... (0.78%) (0.23%)+
Portfolio turnover rate........................ 114.39% 18.02%
*Commencement of operations.
+Annualized.
++Not Annualized.
See accompanying Notes to Financial Statements.
12
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SEGALL BRYANT & HAMILL MID CAP FUND
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Segall Bryant & Hamill Mid Cap Fund (the "Fund") is a series of shares
of beneficial interest of Advisors Series Trust (the "Trust"), which is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund began operations on April 1, 1999. The
Fund's objective is to seek growth of capital by investing in
medium-capitalization ("mid-cap") companies with income as a secondary
objective.
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 that are primarily traded on a national securities exchange
shall be valued at the last sale price on the exchange on which they
are primarily traded on the day of valuation or, if there has been no
sale on such day, at the mean between the bid and asked prices.
Securities primarily traded in the NASDAQ National Market System for
which market quotations are readily available shall be valued at the
last sale price on the day of valuation, or if there has been no sale
on such day, at the mean between the bid and asked prices.
Over-the-counter ("OTC") securities which are not traded in the NASDAQ
National Market System shall be valued at the most recent trade price.
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, which are determined
13
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SEGALL BRYANT & HAMILL MID CAP FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------
in accordance with income tax regulations, 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 year ended April 30, 2000, Segall Bryant & Hamill (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 0.75% based upon the average daily net assets of the Fund. For
the year ended April 30, 2000, the Fund incurred $72,047 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 1.40% 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 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
14
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SEGALL BRYANT & HAMILL MID CAP FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------
expenses. For the year ended April 30, 2000, the Advisor reduced its fees and
absorbed Fund expenses in the amount of $106,079; no amounts were reimbursed to
the Advisor. Cumulative expenses subject to recapture pursuant to the
aforementioned conditions amounted to $144,461 for the Fund at April 30, 2000.
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 following annual rate:
Fund asset level Fee rate
---------------- --------
Less than $15 million $30,000
$15 million to less than $50 million 0.20% of average daily net assets
$50 million to less than $100 million 0.15% of average daily net assets
$100 million to less than $150 million 0.10% of average daily net assets
More than $150 million 0.05% of average daily net assets
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. Trustees unaffiliated with the Advisor or
Administrator are compensated by the Trust at $4,500 per meeting. These fees are
allocated to the Fund equally based on the number of Funds in the Trust.
NOTE 4 - DISTRIBUTION COSTS
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 (the
"Plan"). The Plan permits the Fund to pay for distribution and related expenses
at an annual rate of up to 0.25% of the Fund's average daily net assets
annually. The expenses covered by the Plan may include the cost of preparing and
distributing prospectuses and other sales material, advertising and public
relations expenses, payments to financial intermediaries and compensation of
personnel involved in selling shares of
15
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SEGALL BRYANT & HAMILL MID CAP FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------
the Fund. Payments made pursuant to the Plan will represent compensation for
distribution and service activities, not reimbursements for specific expenses
incurred. Pursuant to a distribution coordination agreement adopted under the
Plan, distribution fees are paid to the Advisor as "Distribution Coordinator".
For the year ended April 30, 2000, the Fund paid the Distribution Coordinator in
the amount of $24,016.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
For the year ended April 30, 2000, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, were $10,972,776 and
$10,707,742, respectively.
NOTE 6 - REORGANIZATION
On April 1, 1999 the Fund issued shares in exchange for shares of the
Segall Bryant & Hamill Growth and Income Fund in a reorganization. The following
is a summary of shares issued, net assets on the date of reorganization, net
asset value per share and unrealized appreciation on that date:
Shares.................................. 606,336
Net Assets.............................. $7,570,605
Net Asset Value Per Share............... $12.49
Final Distribution Per Share
Paid April 14, 1999 ................. 1.37
------
Exchange Price Per Share.............. $13.86
======
Unrealized Appreciation............... $ 962,558
16
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Trustees and Shareholders
Segall Bryant & Hamill Mid Cap Fund
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 Segall Bryant & Hamill Mid Cap
Fund, series of Advisor Series Trust (the "Fund") at April 30, 2000, and the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States. 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 audit. We conducted our audit
of these financial statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
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
audit, which included confirmation of securities at April 30, 2000 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above. The financial statements and financial highlights for the
period from April 1, 1999 through April 30, 1999 were audited by other
independent accountants whose report dated May 28, 1999 expressed an unqualified
opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
May 23, 2000
17
<PAGE>
ADVISOR
Segall Bryant & Hamill
10 South Wacker Drive, Suite 2150
Chicago, Illinois 60606
www.sbhic.com
----------
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, Arizona 85018
----------
CUSTODIAN
Firstar Institutional Custody Services
425 Walnut Street
Cincinnati, Ohio 45202
----------
TRANSFER AGENT
American Data Services
150 Motor Parkway, Suite 109
Hauppauge, New York 11788
877-829-8413
----------
AUDITOR
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
----------
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, California 94104
