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EDGAR LOMAX VALUE FUND
SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED
APRIL 30, 2000
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EDGAR LOMAX VALUE FUND
Semi-Annual Report
April 30, 2000
Dear Fellow Shareholder:
As your mutual fund steadily develops a track record--now over two and
one-half years--we are pleased to keep you updated on its performance. From its
opening on December 12, 1997 through April 30, 2000, the Edgar Lomax Value
Fund's average annual total return was 5.18%.
Despite the record performances of many of the stock market indexes over
the last few years, the fact is, not all stocks--and certainly not all styles of
investing (e.g., "growth" and "value" investing)--have been as profitable as the
indexes would indicate. Specifically, the S&P 500 index just completed its
unprecedented sixth straight year in which its "growth" stocks (measured by the
S&P/Barra Growth subindex) outperformed its "value" stocks (measured by the
S&P/Barra Value subindex). Even among the "growth" names, though, a significant
portion of the returns came from just a few very large companies such as
Microsoft and Cisco.
What are investors, particularly "value" investors, to do in light of the
unusual stock market environment? Simply, take advantage of the opportunity it
presents. Remember that long-term equity returns come ONLY from the actual
earnings of companies one invests in, as opposed to those earnings one projects
or hopes will occur. The profitable, financially strong companies we have
purchased on your behalf have grown tremendously on an internal basis, while
their market prices have increased only modestly. This has given us a rare
opportunity to buy these stocks at "fire sale" prices relative to what we
believe are their true values. Consequently, their potential for strong future
outperformance has never been better.
As your investment manager, we remain committed to investing based on
fundamental facts. You can rest assured that we will not risk your money chasing
the latest "hot" stock simply because its price is increasing quickly. We
appreciate your continuing confidence in our investment program and promise you
our best efforts.
Cordially,
/s/ Randall R. Eley
Randall R. Eley
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EDGAR LOMAX VALUE FUND
Footnotes:
Performance figures of the Fund referenced represent past performance and are
not indicative of future performance. Share value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
investment.
The Fund's average annual total return for the year ended March 31, 2000 was
-2.04% and since inception (December 12, 1997) through March 31, 2000 was 3.67%.
The Fund is distributed by First Fund Distributors, Inc., Phoenix
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EDGAR LOMAX VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.34% Market Value
--------------------------------------------------------------------------------
AEROSPACE/DEFENSE: 3.59%
2,300 General Dynamics Corporation.......................... $ 134,550
-----------
AUTOMOBILES: 6.30%
2,525 General Motors Corporation............................ 236,403
-----------
BANKS - MONEY CENTER: 4.28%
1,250 J.P. Morgan & Co., Incorporated....................... 160,469
-----------
CHEMICALS: 6.50%
2,938 E. I. du Pont de Nemours and Company.................. 139,371
925 The Dow Chemical Company.............................. 104,525
-----------
243,896
-----------
CHEMICALS - SPECIALTY: 3.03%
3,300 International Flavors & Fragrances, Inc............... 113,644
-----------
ELECTRIC COMPANIES: 7.16%
3,775 American Electric Power Company, Inc.................. 138,259
5,225 The Southern Company.................................. 130,298
-----------
268,557
-----------
ELECTRICAL EQUIPMENT: 5.96%
2,165 Honeywell, Inc........................................ 121,240
2,600 Rockwell International Corporation.................... 102,375
-----------
223,615
-----------
ELECTRONICS - DEFENSE: 3.06%
5,000 Raytheon Company, Class A............................. 114,688
-----------
INSURANCE - LIFE/HEALTH: 2.39%
1,600 American General Corporation.......................... 89,600
-----------
INSURANCE - MULTI-LINE: 6.86%
1,525 CIGNA Corporation..................................... 121,619
2,600 The Hartford Financial Services Group, Inc............ 135,688
-----------
257,307
-----------
3
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EDGAR LOMAX VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED), CONTINUED
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Shares Market Value
--------------------------------------------------------------------------------
LEISURE TIME - PRODUCTS: 2.81%
5,500 Brunswick Corporation................................. $ 105,531
-----------
MACHINERY - DIVERSIFIED: 4.42%
4,200 Caterpillar, Inc...................................... 165,638
-----------
MANUFACTURING - DIVERSIFIED: 4.61%
2,000 Minnesota Mining and Manufacturing Company............ 173,000
-----------
NATURAL GAS: 4.68%
3,500 The Coastal Corporation............................... 175,656
-----------
OIL - INTERNATIONAL INTEGRATED: 2.80%
1,350 Exxon Mobil Corporation............................... 104,878
-----------
PAPER & FOREST PRODUCTS: 2.65%
2,700 International Paper Company........................... 99,225
-----------
PHOTOGRAPHY/IMAGING: 3.54%
2,375 Eastman Kodak Company................................. 132,852
-----------
RAILROADS: 6.10%
5,100 Burlington Northern Sante Fe Corporation.............. 123,038
6,000 Norfolk Southern Corporation.......................... 105,750
-----------
228,788
-----------
RETAIL - GENERAL MERCHANDISE: 2.79%
3,800 The May Department Stores Company..................... 104,500
-----------
RETAIL - SPECIALTY/RETAIL: 3.43%
2,850 The Limited, Inc...................................... 128,784
-----------
TELECOMMUNICATIONS - LONG DISTANCE: 1.13%
900 AT&T Corporation...................................... 42,019
-----------
4
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EDGAR LOMAX VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED), CONTINUED
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Shares Market Value
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TELEPHONE: 7.25%
2,000 Bell Atlantic Corporation............................. $ 118,500
3,500 SBC Communications, Inc............................... 153,343
-----------
271,843
-----------
TOBACCO: 4.00%
6,850 Philip Morris Companies, Inc.......................... 149,844
-----------
Total Common Stocks (Cost $3,833,791+): 99.34%........ 3,725,287
-----------
Principal
Amount SHORT-TERM INVESTMENTS: 5.10%
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$191,151 Firstar Stellar Treasury Fund (Cost $191,151)......... 191,151
-----------
Total Investments in Securities
(Cost $4,024,942): 104.44%.......................... 3,916,438
Liabilities in Excess of Other Assets: (4.44%)........ (166,601)
-----------
TOTAL NET ASSETS: 100.00% ............................ $ 3,749,837
===========
+ Gross unrealized appreciation and depreciation of securities is as follows:
Gross unrealized appreciation......................... $ 319,328
Gross unrealized depreciation......................... (427,832)
-----------
Net unrealized depreciation........................... $ (108,504)
===========
See accompanying Notes to Financial Statements.
5
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EDGAR LOMAX VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost of $4,024,942) ....................... $ 3,916,438
Receivables
Due from Advisor ...................................... 10,388
Dividends and interest ................................ 3,182
Fund shares purchased ................................. 100
Prepaid expenses ........................................ 1,316
-----------
Total assets ........................................ 3,931,424
-----------
LIABILITIES
Payables
Securities purchased .................................. 156,733
Accrued expenses ........................................ 24,854
-----------
Total liabilities ................................... 181,587
-----------
NET ASSETS ................................................ $ 3,749,837
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($3,749,837 / 358,592 shares
outstanding; unlimited number
of shares [par value $0.01] authorized) ............... $ 10.46
===========
COMPONENTS OF NET ASSETS
Paid-in capital ......................................... $ 3,757,235
Net investment income ................................... 19,913
Accumulated net realized gain on investments ............ 81,193
Net unrealized depreciation on investments .............. (108,504)
-----------
Net assets .......................................... $ 3,749,837
===========
See accompanying Notes to Financial Statements.
6
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EDGAR LOMAX VALUE FUND
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
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INVESTMENT INCOME
Income
Dividends .................................................. $ 50,697
Interest ................................................... 1,191
---------
Total income ......................................... 51,888
---------
Expenses
Advisory fees (Note 3) ..................................... 18,239
Administration fees (Note 3) ............................... 14,794
Professional fees .......................................... 9,842
Fund accounting fees ....................................... 8,878
Transfer agent fees ........................................ 6,658
Reports to shareholders .................................... 1,480
Custody fees ............................................... 2,761
Trustee fees ............................................... 1,480
Other ...................................................... 1,604
Registration fees .......................................... 1,300
Insurance expense .......................................... 394
---------
Total expenses ........................................... 67,430
Less, advisory fee waiver and absorption (Note 3) ........ (35,455)
---------
Net expenses ............................................. 31,975
---------
NET INVESTMENT INCOME .................................. 19,913
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions ................. 93,390
Net change in unrealized depreciation on investments ......... (367,268)
---------
Net realized and unrealized loss on investments ............ (273,878)
---------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................................. $(253,965)
=========
See accompanying Notes to Financial Statements.
7
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EDGAR LOMAX VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000# October 31, 1999
--------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM
OPERATIONS
Net investment income ........................... $ 19,913 $ 30,291
Net realized gain on security transactions ...... 93,390 217,244
Net change in unrealized (depreciation)/
appreciation on investments ................... (367,268) 91,218
----------- -----------
NET (DECREASE)/INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................ (253,965) 338,753
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ...................... (36,575) (21,112)
From net realized gains ......................... (218,064) (12,685)
----------- -----------
Total dividends and distibution to
shareholders............................. (254,639) (33,797)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net (decrease)/increase in net assets
derived from net change in outstanding
shares (a) .................................... (8,137) 667,788
----------- -----------
TOTAL (DECREASE)/INCREASE IN NET ASSETS.... (516,741) 972,744
----------- -----------
NET ASSETS
Beginning of period ............................... 4,266,578 3,293,834
----------- -----------
END OF PERIOD ..................................... $ 3,749,837 $ 4,266,578
=========== ===========
</TABLE>
(a) A summary of capital shares transactions is as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000# October 31, 1999
------------------------ -------------------------
Shares Paid in Capital Shares Paid in Capital
------ --------------- ------ ---------------
<S> <C> <C> <C> <C>
Shares sold ..................... 22,172 $ 240,140 69,273 $ 835,121
Shares issued on reinvestments
of distributions .............. 4,763 51,488 782 8,441
Shares redeemed ................. (28,431) (299,765) (15,423) (175,774)
------- --------- ------- ---------
Net (decrease)/increase ......... (1,496) $ (8,137) 54,632 $ 667,788
======= ========= ======= =========
</TABLE>
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# Unaudited.
See accompanying Notes to Financial Statements.
8
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EDGAR LOMAX VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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<TABLE>
<CAPTION>
Six Months Year December 12, 1997*
Ended Ended through
April 30, 2000# October 31, 1999 October 31, 1998
--------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ............. $ 11.85 $ 10.78 $ 10.00
--------- --------- ---------
Income from investment operations:
Net investment income .......................... 0.02 0.08 0.07
Net realized and unrealized (loss)/gain
on investments ................................ (0.70) 1.10 0.72
--------- --------- ---------
Total from investment operations ................. (0.68) 1.18 0.79
--------- --------- ---------
Less distributions:
From net investment income ..................... (0.10) (0.07) (0.01)
From net realized gains ........................ (0.61) (0.04) 0.00
--------- --------- ---------
Total distributions .............................. (0.71) (0.11) (0.01)
--------- --------- ---------
Net asset value, end of period ................... $ 10.46 $ 11.85 $ 10.78
========= ========= =========
TOTAL RETURN ..................................... (5.89%)++ 11.05% 7.89%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) ............ $ 3,750 $ 4,267 $ 3,294
Ratio of expenses to average net assets:
Before expense reimbursement ................... 3.69%+ 3.63% 4.67%+
After expense reimbursement .................... 1.75%+ 1.75% 1.75%+
Ratio of net investment/(loss) to average
net assets:
After expense reimbursement .................... (1.66)%+ 0.81% 0.81%+
Portfolio turnover rate .......................... 43.33% 41.85% 32.71%
</TABLE>
----------
* Commencement of operations.
# Unaudited.
+ Annualized.
++ Not Annualized.
See accompanying Notes to Financial Statements.
9
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EDGAR LOMAX VALUE FUND
NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 2000 (UNAUDITED)
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NOTE 1 - ORGANIZATION
The Edgar Lomax Value 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's investment objective is to seek growth of capital, with a
secondary objective of providing income. The Fund began operations on December
12, 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. 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 six months ended April 30, 2000, The Edgar Lomax 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
10
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EDGAR LOMAX VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
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the annual rate of 1.00% based upon the average daily net assets of the Fund.
For the six months ended April 30, 2000, the Fund incurred $18,239 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 1.75% 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 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
April 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in the
amount of $35,455; no amounts were reimbursed to the Advisor.
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 net 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.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$1,616,644 and $1,872,320, respectively.
11
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ADVISOR
The Edgar Lomax Company
6564 Loisdale Court, Suite 310
Springfield, VA 22150
www.edgarlomax.cihost.com
DISTRIBUTOR
First Fund Distributors, Inc.
4455 E. Camelback Rd., Ste. 261E
Phoenix, AZ 85018
CUSTODIAN
Firstar Institutional Custody Services
425 Walnut Street
Cincinnati, OH 45202
TRANSFER AGENT
ICA Fund Services Corporation
4455 E. Camelback Rd., Ste. 261E
Phoenix, AZ 85018
(800) 385-7003
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, CA 94104
