THE AMERICAN TRUST ALLEGIANCE FUND
ONE COURT STREET
LEBANON, NEW HAMPSHIRE 03766
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
AUGUST 31, 2000
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
October, 2000
Dear Fellow Shareholder,
We are pleased to send you the American Trust Allegiance Fund's semi-annual
report for the six months ending August 31, 2000. Asset growth of the Fund has
been encouraging with total assets reaching $47.4 million as of August 31, 2000.
The Fund's investment performance continues to be quite competitive, as it
ranked in the top 10% of growth mutual funds over the past twelve months and
three year periods, according to Lipper, Inc. Based on total return, Lipper
ranked the Fund 132nd out of 1304 growth funds and 75th out of 825 growth funds
for the one and three year periods ending August 31, 2000, respectively. The
Fund was recently highlighted in the November 2000 issue of MUTUAL FUND MAGAZINE
(pg.52). The Fund also received a five star rating from Morningstar for the
three year period ending August 31, 2000 in the domestic equity category
consisting of 3,839 funds.
The year of 2000 has been a challenging one for most investors as the
financial markets have been whipsawed over concerns of rising interest rates,
decelerating earnings growth, higher energy prices, and fairly high valuations.
Technology, in particular, has been vulnerable to some impressive price swings
with the NASDAQ composite index experiencing three different periods of declines
greater than 10%. Our focus continues to be on any changes in the competitive
position or the underlying fundamentals of the companies we own, rather than the
market gyrations.
Seeking long term growth potential, our quantitative screening yields a
preponderance of technology companies upon which we next apply more qualitative
analysis. Optical networking and semiconductors are two technology sectors that
we believe offer attractive long term growth. We are also finding attractive
opportunities in the energy and financial sectors of the U.S. economy.
We thank you for your support and look forward to helping you achieve your
financial goals.
/s/ Jeffrey M. Harris
Jeffrey M. Harris, CFA
/s/ Paul H. Collins
Paul H. Collins
Remember past performance is not a guarantee of future results. Fund share
values and returns fluctuate and investors may have a gain or a loss when shares
are redeemed. During the ranking period advisory fees have been waived.
Morningstar proprietary ratings on US-domiciled funds reflect historical
risk-adjusted performance as of 8-31-00. The ratings are subject to change every
month. Morningstar ratings on US-domiciled funds are calculated from the fund's
3-year average annual returns in excess of 90-day Treasury bill returns with
appropriate fee adjustments, and a risk factor that reflects fund performance
below 90-day US T-bill returns. Allegiance Fund received 5 stars for the 3-year
period. The top 10% of the funds in a broad asset class receive 5 stars. The
Fund was rated exclusively against US-domiciled funds.
Lipper rankings are based on total return; this calculation does not include
sales charges. Please note this fund does not charge sales loads.
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
American Trust Allegiance Fund
Comparison of the change in value of a $10,000 investment in the American Trust
Allegiance Fund versus the S&P 500 Composite Stock Price Index
Average Annual Total Return(1)
1 Year............................ 58.37%
Since Inception (3/11/97)......... 34.93%
American Trust S&P 500 Composite
Allegiance Fund Stock Price Index
--------------- -----------------
11-Mar-97 $10,000 $10,000
31-Mar-97 $ 9,210 $ 9,342
31-May-97 $10,630 $10,497
31-Aug-97 $11,450 $11,175
30-Nov-97 $12,200 $11,927
28-Feb-98 $13,480 $13,149
29-May-98 $13,620 $13,718
31-Aug-98 $12,110 $12,086
30-Nov-98 $15,130 $14,750
28-Feb-99 $17,183 $15,742
31-May-99 $17,842 $16,600
31-Aug-99 $17,893 $16,892
30-Nov-99 $20,765 $17,829
29-Feb-00 $25,942 $17,585
31-May-00 $23,536 $18,340
31-Aug-00 $28,337 $19,648
(1) Average Annual Total Return represents the average change in account value
over the periods indicated.
Past performance is not predictive of future performance.
* The S&P 500 Composite Stock Price Index is an unmanaged
capitalization-weighted index of 500 stocks designed to represent the broad
domestic economy.
2
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
TOP 10 HOLDINGS AT AUGUST 31, 2000
--------------------------------------------------------------------------------
American International Group, Inc.
Broadcom Corp. - Class A
EMC Corp.
Flextronics International Ltd.
Intel Corp.
Juniper Networks, Inc.
Network Appliance, Inc.
Nortel Networks Corp.
SDL, Inc.
Sun Microsystems, Inc.
3
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 92.9% Market Value
--------------------------------------------------------------------------------
AIR FREIGHT - SERVICES: 1.0%
9,900 Expeditors International of Washington, Inc......... $ 485,100
-----------
ALUMINUM: 1.3%
19,200 Alcoa, Inc.......................................... 638,400
-----------
BANKS - MAJOR REGIONAL: 1.6%
9,100 Northern Trust Corp................................. 767,244
-----------
BROADCAST MEDIA: 1.1%
13,500 Comcast Corp. - Special Class A*.................... 502,875
-----------
COMMUNICATIONS - EQUIPMENT: 9.1%
15,200 ADC Telecommunications, Inc.*....................... 622,250
8,500 Alcatel SA.......................................... 704,437
2,200 Corning, Inc........................................ 721,462
3,800 Lucent Technologies, Inc............................ 158,888
17,600 Nokia Corp.-SPON ADR................................ 790,900
16,200 Nortel Networks Corp................................ 1,321,313
-----------
4,319,250
-----------
COMPUTER SOFTWARE AND SERVICES: 7.9%
9,700 America Online, Inc.*............................... 568,663
9,000 Convergys Corp.*.................................... 352,125
7,450 Microsoft Corp.*.................................... 520,103
10,400 Oracle Corp.*....................................... 945,750
5,400 Siebel Systems, Inc.*............................... 1,063,800
2,450 VERITAS Software Corp.*............................. 295,378
-----------
3,745,819
-----------
COMPUTERS - HARDWARE: 3.7%
2,500 International Business Machines Corp................ 330,000
11,100 Sun Microsystems, Inc.*............................. 1,409,006
-----------
1,739,006
-----------
See accompanying Notes to Financial Statements.
4
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
COMPUTERS - NETWORKING: 9.4%
15,320 Cisco Systems, Inc.*................................ $ 1,049,420
7,100 Juniper Networks, Inc.*............................. 1,517,625
11,200 Network Appliance, Inc.*............................ 1,310,400
4,100 Sycamore Networks................................... 561,700
-----------
4,439,145
-----------
COMPUTERS - PERIPHERALS: 3.3%
15,800 EMC Corp.*.......................................... 1,548,400
-----------
ELECTRICAL EQUIPMENT: 1.0%
11,550 Symbol Technologies, Inc............................ 477,881
-----------
ELECTRONIC COMPONENTS: 4.5%
14,000 Flextronics International Ltd....................... 1,166,375
21,300 Solectron Corp.*.................................... 965,156
-----------
2,131,531
-----------
ELECTRONICS - SEMICONDUCTOR: 17.2%
10,300 Analog Devices, Inc.*............................... 1,035,150
20,000 Atmel Corp.......................................... 400,000
4,850 Broadcom Corp. - Class A*........................... 1,212,500
15,800 Intel Corp.......................................... 1,183,025
7,700 JDS Uniphase Corp.*................................. 959,613
3,600 SDL, Inc.*.......................................... 1,430,325
10,624 Taiwan Semiconductor Manufacturing Co. Ltd., ADR.... 371,840
12,400 Texas Instruments, Inc.............................. 830,025
8,500 Vitesse Semiconductor Corp.*........................ 754,906
-----------
8,177,384
-----------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT: 2.4%
8,700 Applied Materials, Inc.*............................ 750,919
5,700 Teradyne, Inc.*..................................... 369,431
-----------
1,120,350
-----------
FINANCIAL - DIVERSIFIED: 0.8%
7,300 Fannie Mae.......................................... 392,375
-----------
See accompanying Notes to Financial Statements.
5
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS: 1.4%
13,250 Colgate-Palmolive Co................................ $ 674,922
-----------
INSURANCE - BROKERS: 2.2%
8,775 Marsh & McLennan Companies, Inc..................... 1,042,031
-----------
INSURANCE - MULTILINE: 2.8%
14,967 American International Group, Inc................... 1,333,934
-----------
INVESTMENT BANKING: 1.5%
5,600 The Goldman Sachs Group, Inc........................ 717,150
-----------
LEISURE: 1.8%
16,800 Harley-Davidson, Inc................................ 836,850
-----------
OIL & GAS - DRILL AND EQUIPMENT: 2.3%
12,900 Schlumberger Ltd.................................... 1,100,531
-----------
OIL - INTERNATIONAL: 2.3%
13,400 Exxon Mobil Corp.................................... 1,093,775
-----------
RETAIL - BUILDING SUPPLY: 1.3%
13,350 The Home Depot, Inc................................. 641,634
-----------
RETAIL - COMPUTER AND ELECTRONICS: 1.1%
8,700 Best Buy Co, Inc.*.................................. 537,225
-----------
RETAIL - DEPARTMENT STORES: 1.0%
8,600 Kohl's Corp......................................... 481,600
-----------
RETAIL - DISCOUNT: 0.9%
19,875 Dollar General Corp................................. 408,680
-----------
RETAIL - SPECIALTY: 1.3%
34,200 Bed Bath & Beyond, Inc.*............................ 600,638
-----------
See accompanying Notes to Financial Statements.
6
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
SERVICES - DATA PROCESSING: 3.1%
9,400 Automatic Data Processing, Inc...................... $ 560,475
20,025 Paychex, Inc........................................ 893,616
-----------
1,454,091
-----------
TELECOMMUNICATIONS - CELLULAR: 1.9%
16,400 Nextel Communications, Inc.......................... 909,175
-----------
TELEPHONE: 1.5%
8,700 BellSouth Corp...................................... 324,619
9,500 SBC Communications, Inc............................. 396,625
-----------
721,244
-----------
UTILITIES - NATURAL GAS: 2.2%
12,200 Enron Corp.......................................... 1,035,475
-----------
TOTAL COMMON STOCKS (cost $27,715,552).............. 44,073,715
-----------
Principal
Amount SHORT-TERM INVESTMENT: 3.5%
--------------------------------------------------------------------------------
$1,649,932 Firstar Stellar Treasury Fund (cost $1,649,932)..... 1,649,932
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $29,365,484): 96.4%........................... 45,723,647
Other Assets less Liabilities: 3.6%................. 1,727,436
-----------
NET ASSETS: 100.0%.................................. $47,451,083
===========
* Non-income producing security.
At August 31, 2000, gross unrealized appreciation and depreciation were as
follows:
Gross unrealized appreciation....................... $16,912,964
Gross unrealized depreciation....................... (554,801)
-----------
Net unrealized appreciation........................ $16,358,163
===========
See accompanying Notes to Financial Statements.
7
<PAGE>
THE AMERICAN TRUST ALLEGIANCE FUND
STATEMENT OF ASSETS AND LIABILITIES AT AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (cost $29,365,484)......... $45,723,647
-----------
Receivables:
Securities sold.............................................. 2,282,413
Fund shares sold............................................. 120,369
Dividends and interest....................................... 19,865
Prepaid expenses............................................... 18,857
Deferred organization costs.................................... 5,632
-----------
Total assets............................................... 48,170,783
-----------
LIABILITIES
Payables:
Securities purchased......................................... 641,412
Fund shares redeemed......................................... 49,823
Due to advisor............................................... 25,314
Accrued expenses............................................... 3,151
-----------
Total liabilities.......................................... 719,700
-----------
NET ASSETS....................................................... $47,451,083
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
[$47,451,083/1,699,662 shares outstanding; unlimited
number of shares (par value $0.01) authorized]............... $ 27.92
===========
COMPONENTS OF NET ASSETS
Paid-in capital................................................ $29,298,766
Accumulated net investment loss................................ (164,479)
Accumulated net realized gain on investments................... 1,958,633
Net unrealized appreciation on investments..................... 16,358,163
-----------
Net assets................................................. $47,451,083
===========
See accompanying Notes to Financial Statements.
8
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends.................................................... $ 72,137
Interest .................................................... 58,098
-----------
Total income............................................. 130,235
Expenses
Advisory fees (Note 3)....................................... 193,027
Administration fees (Note 3)................................. 40,637
Transfer agent fees.......................................... 23,937
Fund accounting fees......................................... 13,106
Registration fees............................................ 11,012
Audit fees................................................... 7,562
Custody fees................................................. 4,739
Reports to shareholders...................................... 2,974
Legal fees................................................... 2,773
Trustee fees................................................. 2,168
Deferred organization expense................................ 1,866
Insurance expense............................................ 1,595
Miscellaneous................................................ 1,405
-----------
Total expenses........................................... 306,801
Less: advisory fee waiver (Note 3)....................... (12,087)
-----------
Net expenses............................................. 294,714
-----------
NET INVESTMENT LOSS .................................. (164,479)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments............................... 1,123,524
Net change in unrealized appreciation on investments........... 3,031,583
-----------
Net realized and unrealized gain on investments.............. 4,155,107
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $ 3,990,628
===========
See accompanying Notes to Financial Statements.
9
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Six Months Year
Ended Ended
August 31, 2000# February 29, 2000
---------------- -----------------
INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment loss........................ $ (164,479) $ (157,537)
Net realized gain on investments........... 1,123,524 1,178,889
Net unrealized appreciation on investments. 3,031,583 9,654,443
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... 3,990,628 10,675,795
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares............. 6,528,434 12,926,816
----------- -----------
TOTAL INCREASE IN NET ASSETS........... 10,519,062 23,602,611
----------- -----------
NET ASSETS
Beginning of period........................ 36,932,021 13,329,410
----------- -----------
END OF PERIOD.............................. $47,451,083 $36,932,021
=========== ===========
(a) A summary of capital share transactions is as follows:
Six Months Year
Ended Ended
August 31, 2000* February 29, 2000
------------------------ ------------------------
Shares Value Shares Value
---------- ----------- ---------- -----------
Shares sold............... 318,774 $ 8,161,288 743,011 $14,552,043
Shares redeemed........... (64,041) (1,632,854) (85,249) (1,625,227)
---------- ----------- ---------- -----------
Net increase.............. 254,733 $ 6,528,434 657,762 $12,926,816
========== =========== ========== ===========
# Unaudited.
See accompanying Notes to Financial Statements.
10
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
FINANCIAL HIGHLIGHTS - FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year March 11, 1997*
Ended Ended Ended through
Aug. 31, 2000# Feb. 29, 2000 Feb. 28, 1999 Feb. 28, 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............... $ 25.56 $ 16.93 $ 13.48 $ 10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................ (0.10) (0.11) (0.07) (0.03)
Net realized and unrealized gain
on investments .................................. 2.46 8.74 3.74 3.51
-------- -------- -------- --------
Total from investment operations .............. 2.36 8.63 3.67 3.48
-------- -------- -------- --------
Less distributions:
From net realized gain ............................. 0.00 0.00 (0.22) 0.00
-------- -------- -------- --------
Total distributions ........................... 0.00 0.00 (0.22) 0.00
-------- -------- -------- --------
Net asset value, end of period ..................... $ 27.92 $ 25.56 $ 16.93 $ 13.48
======== ======== ======== ========
Total return ....................................... 9.23%++ 50.97% 27.47% 34.80%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) .............. $ 47,451 $ 36,932 $ 13,329 $ 6,360
Ratio of expenses to average net assets:
Before expense reimbursement ....................... 1.51%+ 1.75% 2.30% 4.04%+
After expense reimbursement ........................ 1.45%+ 1.45% 1.45% 1.45%+
Ratio of net investment loss to average net assets:
After expense reimbursement ........................ (0.81%)+ (0.73%) (0.57%) (0.42%)+
Portfolio turnover rate ............................ 24.14%++ 39.81% 40.99% 27.65%++
</TABLE>
* Commencement of operations.
# Unaudited.
+ Annualized.
++ Not Annualized.
See accompanying Notes to Financial Statements.
11
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The American Trust Allegiance 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 March 11, 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: 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 in accordance with
income tax regulations, are recorded on the ex-dividend date.
Distributions which exceed net realized gains for financial reporting
purposes but not for tax purposes are reported as distributions in
excess of net realized gains and are primarily due to differing
treatments for wash sales and realized losses subsequent to October 31
on sale of securities. Realized gains and losses on securities sold
are determined on the basis of identified cost. Discounts and premiums
on securities purchased are amortized over the life of the respective
securities.
D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $18,500
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.
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 and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.
12
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the six months ended August 31, 2000, American Trust Company (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 0.95% based upon the average daily net assets of the Fund.
For the six months ended August 31, 2000, the Fund incurred $193,027 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 1.45% 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 reimbursed is made. Such reimbursement may not be paid prior to the
Fund's payment of current ordinary operating expenses. For the six months ended
August 31, 2000, the Advisor reduced its fees and absorbed Fund expenses in the
amount of $12,087.
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.
13
<PAGE>
AMERICAN TRUST ALLEGIANCE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
NOTE 4 - PURCHASES AND SALES OF SECURITIES
For the six months ended August 31, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$12,844,654 and $9,333,654, respectively.
14
<PAGE>
ADVISOR
American Trust Company
One Court Street
Lebanon, NH 03766
1-800-788-8806
www.amertrust.com
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018
CUSTODIAN
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
TRANSFER AGENT
American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, NY 11788
1-800-385-7003
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.
