ADVISORS SERIES TRUST, N-30D, 2000-09-25

ADVISORS SERIES TRUST
N-30D, 2000-09-25

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THE HERITAGE WEST
PREFERRED SECURITIES
INCOME FUND

ANNUAL REPORT

MAY 31, 2000
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

Dear Shareholders:

As Advisor to The Heritage West Preferred Securities Income Fund, it is my
pleasure to provide shareholders with a review of the Fund and its performance
during its second year of operation beginning June 1, 1999 and ending May 31,
2000. This period was noteworthy for the entire fixed income marketplace as it
felt the effects of six consecutive moves on the part of the Federal Reserve to
slow the economy by raising interest rates. Some of the effect was masked by the
fact that due to large federal budget surpluses, the Treasury Department was not
only curtailing the issuance of new 30-year bonds, but had actually begun buying
back the bonds in the open market. These factors, plus an ever more volatile
market for common stocks, left investors feeling less than certain about their
investment allocations to cash, stocks and bonds. The net effect of all this
uncertainty was an unprecedented drop in the fall of 1999 in the values of
virtually all fixed income instruments and preferred securities in particular.
Because preferred stocks are exchange traded (mostly on the NYSE), pricing is
determined by simple supply and demand. With most institutional buyers on the
sidelines concerned about additional rate hikes--and sellers wanting greater
liquidity of their portfolios--the supply demand equation became unbalanced and
preferred prices moved sharply lower.

Declining share prices are, of course, troublesome to all investors, but
particularly so for managers of income funds. Since the Funds primary objective
is to seek a high rate of current income, it was the Portfolio Manager's
decision to allocate the Fund's assets to a more static roster of preferred
securities with the highest income consistent with an emphasis on investment
grade issues (those rated BBB, A, AA and AAA by Standard and Poors). As you will
see in the following financial data, the Fund's total return net of expenses
(but not including sales charges) was a negative 5.93% and paid return of
capital distributions of .25 per share for the fiscal year ended May 31, 2000.

Although the absolute performance for the period was negative, the
performance relative to most other fixed income securities was superior. Also,
during the last few months of the Fund's fiscal year, meaning March, April and
May 2000, the preferred securities marketplace began to anticipate relative
stability in the Federal Reserve Board's policy toward interest rates. This
began to push preferred stock prices higher. With this, the Fund's Advisor was
able to resume its strategy of dividend captures with an increasing percentage
of its assets. The Advisor now believes that the current economic climate will
be significantly more favorable for the utilization of preferred securities to
generate a higher level of income.

Thank you for your continued support of the Fund.

Sincerely,

/s/ Craig O. Jolly

Craig O. Jolly
Portfolio Manager

Performance figures of the Fund and indexes referenced represent past
performance and are not indicative of future performance of the Fund or the
indexes. Share value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original investment. The Fund is distributed
by Heritage West Securities, Inc.
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

THE HERITAGE WEST PREFERRED
SECURITIES INCOME FUND

Comparison of the change in value of a $10,000 investment in
The Heritage West Preferred Securities Income Fund versus
the Merrill Lynch Perpetual Preferred Index.

Average Annual Total Return(1)

One year....................(10.16%)
Since inception (6/24/98)... (1.72%)

The Heritage West Merrill Lynch
Preferred Securities Perpetual
Income Fund Preferred Index
----------- ---------------
24-Jun-98 $10,000 $10,000
31-Aug-98 $ 9,400 $ 9,958
30-Nov-98 $ 9,705 $10,159
28-Feb-99 $10,061 $10,186
31-May-99 $10,278 $10,075
31-Aug-99 $10,150 $ 9,916
30-Nov-99 $ 9,544 $ 9,866
29-Feb-00 $ 9,504 $ 9,678
31-May-00 $ 9,669 $10,030

(1) Average anual total return represents the average change in account value
over the periods indicated.

Returns shown for the Fund reflect the effect of the maximum sales load of 4.5%.
Prior to September 1, 1999, shares were offered at a lower initial sales load.
Thus, the actual total returns would have been higher.

Past performance is not predictive of future performance.

The Merrill Lynch Perpetual Preferred Index is a market capitalization weighted
index that includes perpetual-payment preferred issues. Quality range is BBB3 -
AAA based on composite Moody and S&P ratings. Issues must have at least $30
million in shares outstanding at the end of each month. Both dividend and price
return are calculated daily based on an accrued schedule and exchange pricing.
Prices are taken at approximately 3 pm E.T. The Index is not available for
direct investment and does not incur expenses.

2
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

SCHEDULE OF INVESTMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------
Shares PREFERRED SECURITIES: 93.97% Market Value
--------------------------------------------------------------------------------

AUTOMOTIVE - DIVERSIFIED: 0.96%
2,000 Ford Motor Company Series B Cumulative Depositary Shares $ 52,250
-----------
BANKING - DIVERSIFIED: 10.33%
5,000 California Federal Preferred Capital Corporation
Class A............................................... 107,813
5,000 Nationsbank Capital Trust - 7.84% Preferred Securities
due 12/31/26.......................................... 113,125
7,000 The Bank of New York Company, Inc. Capital Trust
III - 7.05% Preferred Securities due 3/1/28........... 147,438
7,600 The Chase Manhattan Corporation Preferred Securities.... 194,750
-----------
563,126
-----------
BANKING - SPECIALTY - INTERNATIONAL FINANCIAL
SERVICES: 4.68%
10,000 Barclays Bank PLC, Series D American Depositary Receipt 255,000
-----------
ENTERTAINMENT - SPECIALTY - TV & RADIO PROGRAMMING: 1.45%
3,000 Sinclair Broadcast Group, Incorporated - 6.00%
Convertible Perpetual Preferred....................... 79,125
-----------
ENTERTAINMENT - SPECIALTY - TV PRODUCTION, PROGRAMMING,
BROADCASTING: 1.12%
3,000 Carlton Communications PLC - 8.00% Preferred Securities 61,313
-----------
FINANCIAL SERVICES - DIVERSIFIED: 3.41%
3,700 Citicorp - 8.40% Cumulative Preferred Securities........ 95,506
1,000 Hartford Capital Trust II - 8.35% Quarterly Income
Preferred Securities due 10/30/26..................... 23,688
3,000 ITT Hartford Group, Incorporated Capital Trust I - 7.70%
Quarterly Income Preferred Securities due 2/28/16..... 66,938
-----------
186,132
-----------
FINANCIAL SERVICES - SPECIALTY - SECURITIES BROKERAGE: 8.26%
5,000 Merrill Lynch & Company, Incorporated Capital Trust
IV - 7.12% Trust Originated Preferred Securities...... 105,937
7,000 Morgan Stanley Dean Witter Capital Trust - 7.10%
Preferred Securities due 2/28/38...................... 145,688

3
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

SCHEDULE OF INVESTMENTS AT MAY 31, 2000, CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------

FINANCIAL SERVICES - SPECIALTY - SECURITIES BROKERAGE, CONTINUED
3,900 National Rural Utilities Cooperative Finance
Corporation - 7.65% Quarterly Income Capital
Securities due 9/15/46................................ $ 84,581
5,000 National Rural Utilities Cooperative Finance
Corporation - 8.00% Quarterly Income Capital
Securities due 12/31/45............................... 113,750
-----------
449,956
-----------
FOOD - DIVERSIFIED: 7.97%
10,600 ConAgra Capital LC - Series B Cumulative Preferred
Securities due 6/30/43................................ 178,875
10,000 Grand Metropolitan PLC - 9.42% Preferred Securities..... 255,625
-----------
434,500
-----------
FOOD - SPECIALTY - FAST FOOD: 2.11%
5,000 McDonalds Corporation - 7.50% Subordinated Deferrable
Interest Debentures due 1/2/37........................ 115,000
-----------
INSURANCE - DIVERSIFIED: 6.30%
9,000 Acceptance Insurance Company, Inc. Capital Trust - 9.00%
Preferred Securities due 9/30/27...................... 106,313
9,700 Allstate Financial Corp. - 7.95% Series A Quarterly
Income Preferred Securities due 12/31/26.............. 223,100
600 Travelers Aetna Property Casualty Capital Trust II -
8.00% Preferred Securities due 5/15/36................ 13,650
-----------
343,063
-----------
INSURANCE - SPECIALTY - LONG TERM DISABILITY: 2.09%
5,000 UNUM Corporation - 8.80% Series A Monthly Income Debt
Securities............................................ 114,062
-----------
INSURANCE - SPECIALTY - MUNICIPAL BOND: 5.67%
10,000 Ambac Financial Group, Inc. - 7.08% Debentures due
3/31/2098............................................. 211,875
4,500 Financial Security Assurance - 7.38% Preferred
Securities due 9/30/2097.............................. 97,031
-----------
308,906
-----------

4
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

REAL ESTATE - DIVERSIFIED: 2.94%
7,000 Associates Estates Realty Corp. - 9.75% Depositary
Shares................................................ $ 120,750
2,000 Colonial Properties Trust - 8.75% Preferred Securities.. 39,375
-----------
160,125
-----------
REAL ESTATE - SPECIALTY - APARTMENTS: 0.99%
2,700 United Dominion Realty Trust, Inc - 8.60% Series B
Cumulative Redeemable Preferred Securities............ 53,831
-----------
REAL ESTATE - SPECIALTY - HEALTH CARE: 4.28%
15,100 G&L Realty Corporation - 10.25% Series A Preferred
Securities............................................ 230,275
200 Omega Healthcare Investors, Incorporated - Series A
Preferred Securities.................................. 2,963
-----------
233,238
-----------
REAL ESTATE - SPECIALTY - INDUSTRIAL, OFFICE: 1.83%
5,000 Liberty Property Trust - Series A Cumulative Preferred
Securities............................................ 100,000
-----------
REAL ESTATE - SPECIALTY - MOTEL: 6.44%
6,000 Cendant Corporation - 7.50% Convertible Preferred Income
PRIDES................................................ 124,875
13,950 Equity Inns, Inc. - 9.50% Series A Cumulative Preferred
Securities............................................ 225,816
-----------
350,691
-----------
RETAIL - GENERAL MERCHANDISE: 1.49%
5,000 Dillards Capital Trust I - 7.50% Preferred Securities
due 8/1/38............................................ 80,938
-----------
TELECOMMUNICATIONS - DIVERSIFIED: 0.73%
1,800 Pacific Telesis Financing I - 7.56% Trust Originated
Preferred Securities.................................. 40,050
-----------
UTILITY - DIVERSIFIED: 5.61%
1,000 Duke Capital Financing Trust II - 7.38% Cumulative
Quarterly Income Preferred Securities due 3/31/38..... 22,250
8,000 Duke Energy Capital Trust I - 7.20% Cumulative Quarterly
Income Preferred Securities due 9/30/37............... 172,500
5,000 Northern States Power Financial Trust I - 7.88% Trust
Originated Preferred Securities due 1/31/37........... 110,937
-----------
305,687
-----------

5
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

UTILITY - SPECIALTY - ELECTRIC: 15.31%
2,900 Alabama Power Co. - 7.00% Senior Notes due 3/31/48...... $ 58,725
5,500 Alabama Power Co. - 7.00% Series B due 12/31/47......... 113,092
4,700 Consolidated Edison Company of New York - 7.75%
Quarterly Income Capital Securities due 3/31/31....... 106,337
4,800 Potomac Electric Power Company - 7.38% Trust Originated
Preferred Securities due 6/1/38....................... 103,800
100 Southern California Edison Company - 4.78% Series
Cumulative Preferred.................................. 1,450
15,000 Southern Company Capital Trust IV - 7.13% Trust
Originated Preferred Securities due 6/30/28........... 305,625
7,000 Virginia Electric and Power Company - 7.15% Series A
due 6/30/28........................................... 145,250
-----------
834,279
-----------
Total Preferred Securities (Cost $5,969,241): 93.97%.... 5,121,272
Other Assets less Liabilities: 6.03%.................... 328,378
-----------
Total Net Assets: 100.00%............................... $ 5,449,650
===========

At May 31, 2000, the cost of securities for Federal tax purposes was $5,985,625.
Gross unrealized depreciation of securities is $864,353.

See Notes to Financial Statements.

6
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

STATEMENT OF ASSETS AND LIABILITIES AT MAY 31, 2000
--------------------------------------------------------------------------------

ASSETS:
Investments in securities, at value
(identified cost $5,969,241)................................. $ 5,121,272
Cash........................................................... 47,842
Receivables
Receivables for securities sold.............................. 325,439
Due from affiliates.......................................... 13,036
Dividends and interest....................................... 33,807
Deferred Organization Cost..................................... 21,421
Prepaid expenses .............................................. 20,430
-----------
Total assets............................................... 5,583,247
-----------
LIABILITIES
Payables
Payable for cap shares redeemed................................ 92,461
Administration Fees............................................ 2,393
Accrued Expenses............................................... 38,743
-----------
Total liabilities.......................................... 133,597
-----------

NET ASSETS....................................................... $ 5,449,650
===========

Net asset value per share* ($5,449,650 / 529,135 shares
outstanding; unlimited number of shares [par value $0.01]
authorized).................................................... $ 10.30
===========

OFFERING PRICE PER SHARE ($10.30/.955)........................... $ 10.79
===========

COMPONENTS OF NET ASSETS
Paid-in capital................................................ $ 6,402,792
Accumulated net realized loss on investments................... (105,173)
Net unrealized depreciation on investments .................... (847,969)
-----------
Net assets................................................. $ 5,449,650
===========

* Redemption price per share is equal to net asset value per share less 1%
redemption fee on shares held less than one year.

See Notes to Financial Statements.

7
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 2000
--------------------------------------------------------------------------------

INVESTMENT INCOME
Income
Dividends (Net of tax withheld of $2,156).................... $ 582,496
-----------
Expenses
Advisory fees (Note 3)....................................... 63,602
Administration fees (Note 3)................................. 30,082
Custodian and fund accounting fees........................... 17,547
Professional fees............................................ 29,304
Transfer agent fees.......................................... 14,045
Registration fees............................................ 11,792
Reports to shareholders...................................... 7,020
Amortization of deferred organization costs.................. 7,020
Trustees' fees............................................... 2,916
Other ....................................................... 4,011
Insurance expense............................................ 1,790
-----------
Total expenses............................................. 189,129
Less, advisory fee waiver and absorption (Note 3).......... (63,796)
-----------
Net expenses............................................... 125,333
-----------
Net investment income.................................... 457,163
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions................... (103,813)
Net change in unrealized depreciation on investments........... (778,493)
-----------
Net realized and unrealized loss on investments.............. (882,306)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $ (425,143)
===========

See Notes to Financial Statements.

8
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------------------------------------
Year June 24, 1998*
ended through
May 31, 2000 May 31, 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 457,163 $ 299,373
Net realized (loss) / gain from security transactions................... (103,813) 144,221
Net change in unrealized depreciation on investments.................... (778,493) (69,476)
---------- ----------
NET INCREASE / (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..... (425,143) 374,118
---------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income................................................... (545,575) (347,323)
Return of capital....................................................... (156,071) --
---------- ----------
Total dividends and distributions to shareholders..................... (701,646) (347,323)
---------- ----------

TRANSACTIONS IN SHARES BENEFICIAL INTEREST
Net increase in net assets derived from net change
in outstanding shares (a)............................................ 326,637 6,223,007
---------- ----------
TOTAL (DECREASE) / INCREASE IN NET ASSETS............................. (800,152) 6,249,802
---------- ----------
NET ASSETS
Beginning of period....................................................... 6,249,802 --
---------- ----------
End of period............................................................. $5,449,650 $6,249,802
========== ==========

(a) A summary of shares transactions is as follows:

Year June 24, 1998*
ended through
May 31, 2000 May 31, 1999
---------------------- ----------------------
Shares Value Shares Value
-------- ---------- -------- ----------
Shares sold ..................................... 101,690 $1,200,366 509,573 $6,200,974
-------- ---------- -------- ----------
Shares issued in reinvestment of distributions... 35,931 394,739 15,635 188,948
Shares redeemed.................................. (120,002) (1,268,468) (13,692) (166,915)
-------- ---------- -------- ----------
Net increase..................................... 17,619 $ 326,637 511,516 $6,223,007
======== ========== ======== ==========
</TABLE>

* Commencement of operations.

See Notes to Financial Statements.

9
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
------------------------------------------------------------------------------------------------
Year June 24, 1998*
ended through
May 31, 2000 May 31, 1999
------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.......................... $12.22 $12.25
------ ------
Income from investment operations:
Net investment income....................................... 0.76 0.83
Net realized and unrealized gain/(loss) on investments...... (1.46) 0.06
------ ------
Total from investment operations.......................... (0.70) 0.89
------ ------
Less dividends and distributions from:
Net investment income....................................... (0.97) (0.92)
Return of capital........................................... (0.25) -
------ ------
Total distributions......................................... (1.22) (0.92)
------ ------
Net asset value, end of period................................ $10.30 $12.22
====== ======

Total return (does not include sales load).................... (5.93)% 7.63%+

Ratios/supplemental data:
Net assets, end of period (thousands)......................... $5,449 $6,250

Ratio of expenses to average net assets:
Before expense reimbursement................................ 2.98% 3.82%++
After expense reimbursement................................. 1.97% 1.98%++

Ratio of net investment income to average net assets:
After expense reimbursement................................. 7.19% 7.48%++

Portfolio turnover rate....................................... 63.36% 253.59%
</TABLE>

* Commencement of operations.
+ Not annualized.
++ Annualized.

See Notes to Financial Statements.

10
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

NOTES TO FINANCIAL STATEMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The Heritage West Preferred Securities Income Fund (the "Fund") (formerly
The Heritage West Dividend Capture Income 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 June 24, 1998. The investment
objective of the Fund is to achieve a high rate of current income. The Fund
attempts to achieve this objective by buying and selling preferred securities
for the Fund's portfolio in order to realize a high level of current income.

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.

D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $35,000
in connection with their 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.

11
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------

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.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the year ended May 31, 2000, Heritage West Advisors, LLC (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 1.00% based upon the average daily net assets of the Fund.
For the year ended May 31, 2000, the Fund incurred $63,602 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 2.00% 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 year ended May
31, 2000, the Advisor reduced its fees and absorbed Fund expenses in the amount
of $63,796; no amounts were reimbursed to the Advisor. Cumulative expenses
subject to recapture pursuant to the aforementioned conditions amounted to
$137,554 for the Fund at May 31, 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

12
<PAGE>
THE HERITAGE WEST PREFERRED SECURITIES INCOME FUND

NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------

Heritage West Securities, 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 Advisor and received commissions on the sale
of Fund shares of $2,172 and received brokerage commissions of $5,803 on Fund
portfolio transactions.

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 year ended May 31, 2000, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, were $4,748,613 and
$3,729,280, respectively.

NOTE 5 - INCOME TAXES

At May 31, 2000, the Fund has differed capital losses occurring subsequent
to October 31, 1999 of $78,753. For tax purposes such losses will be reflected
in the year ending May 31, 2001. Net realized capital losses differ for
financial statement and tax purposes primarily due to differing treatments of
wash sales. At May 31, 2000, the Fund had tax basis losses of $10,035 which may
be carried over to offset future capital gains. Such losses expire May 31, 2008.

13
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS

THE BOARD OF TRUSTEES AND SHAREHOLDERS
THE HERITAGE WEST PREFERRED SECURITIES INCOME 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 Heritage West Preferred
Securities Income Fund, series of Advisor Series Trust (the "Fund") at May 31,
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 May 31, 2000 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above. The financial statements for the year ended May 31, 1999, were
audited by other independent accountants whose report dated July 9, 1999
expressed an unqualified opinion on those financial statements.

PricewaterhouseCoopers LLP

New York, New York
September 5, 2000
<PAGE>
ADVISOR
Heritage West Advisors, LLC
3550 North Central Avenue
Suite 1800
Phoenix, Arizona 85012

DISTRIBUTOR
Heritage West Securities, Inc.
3550 North Central Avenue
Suite 1800
Phoenix, Arizona 85012

TRANSFER AGENT
ICA Fund Services Corp.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018

LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street
San Francisco, California 94104

AUDITOR
PricewaterhouseCoopers, LLP
1177 Avenue of the Americas
New York, NY 10036
<PAGE>
[UNITY FUND LOGO]

ANNUAL REPORT

FOR THE YEAR ENDED
MAY 31, 2000
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UNITY FUND

May 31, 2000

Dear Shareholder:

As your mutual fund steadily develops a track record--now about two years--we
are pleased to keep you updated on its performance. From its opening on June 29,
1998 through May 31, 2000, the Unity Fund returned 1.36% per year before sales
charges (down 0.50% per year after sales charges).

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 fund 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 effort.

Cordially,

/s/ Gregory M. St. Etienne

Gregory M. St. Etienne
Advisor
1
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UNITY FUND

THE UNITY FUND - CLASS A

Comparison of the change in value of a $10,000 investment in The Unity Fund -
Class A versus the S&P 500 Composite Stock Price Index(1), the S&P 500 Barra
Value Index(2) and the Lipper Large-Cap Value Fund Index(3).

Average Annual Total Return(4)

1 Year.......................... (13.55%)
Since Inception (6/29/98) ...... (0.51%)

S & P 500 Lipper S & P 500
The Unity Fund Composite Stock Large-Cap Value Barra
Class A Price Index Fund Index Value Index
------- ----------- ---------- -----------
29-Jun-98 $10,000 $10,000 $10,000 $10,000
31-Aug-98 $8,234 $8,465 $8,486 $8,210
30-Nov-98 $9,904 $10,330 $10,096 $9,880
28-Feb-99 $9,538 $11,026 $10,416 $10,209
31-May-99 $11,057 $11,626 $11,171 $11,223
31-Aug-99 $10,728 $11,830 $11,126 $11,359
30-Nov-99 $10,254 $12,487 $11,269 $11,292
29-Feb-00 $8,670 $12,316 $10,657 $10,587
31-May-00 $9,905 $12,137 $11,512 $10,619

Returns shown reflect the effect of the maximum sales load of 3.50%.

Past performance does not predict future performance.

(1) The S&P 500 Composite Stock Price Index is a broad market
capitalization-weighted index of 500 stocks designed to represent the broad
domestic economy.

(2) The S&P 500 Barra Value Index is an unmanaged capitalization-weighted index
that contains approximately 50% of the stocks in the S&P 500 with lower
price-to-book ratios.

(3) The Lipper Large-Cap Value Fund Index is comprised of funds that invest at
least 75% of their equity assets in companies with market capitalizations
(on a three-year weighted basis) or greater 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 Unity
Fund.

(4) Average annual total return represents the average change in account value
over the periods indicated.

2
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UNITY FUND

SCHEDULE OF INVESTMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 97.47% Market Value
--------------------------------------------------------------------------------

AEROSPACE/DEFENSE: 3.77%
1,200 General Dynamics Corporation........................... $ 70,875
-----------
AUTOMOBILES: 4.51%
1,200 General Motors Corporation............................. 84,750
-----------
BANKS - MONEY CENTER: 4.79%
700 J.P. Morgan & Co., Incorporated........................ 90,125
-----------
CHEMICALS: 6.64%
1,238 E. I. du Pont de Nemours and Company................... 60,662
600 The Dow Chemical Company............................... 64,238
-----------
124,900
-----------
CHEMICALS - SPECIALTY: 2.35%
1,300 International Flavors & Fragrances, Inc................ 44,200
-----------
ELECTRIC COMPANIES: 6.08%
1,500 American Electric Power Company, Inc................... 53,344
2,350 The Southern Company................................... 60,953
-----------
114,297
-----------
ELECTRICAL EQUIPMENT: 6.14%
1,212 Honeywell, Inc......................................... 66,281
1,200 Rockwell International Corporation..................... 49,200
-----------
115,481
-----------
ELECTRONICS - DEFENSE: 2.76%
2,200 Raytheon Company, Class A.............................. 51,838
-----------
INSURANCE - LIFE/HEALTH: 3.07%
900 American General Corporation........................... 57,656
-----------
INSURANCE - MULTI-LINE: 8.65%
1,000 CIGNA Corporation...................................... 88,813
1,250 The Hartford Financial Services Group, Inc............. 73,906
-----------
162,719
-----------

3
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UNITY FUND

LEISURE TIME - PRODUCTS: 2.66%
2,600 Brunswick Corporation.................................. $ 50,050
-----------
MACHINERY - DIVERSIFIED: 3.46%
1,700 Caterpillar Inc........................................ 65,025
-----------
MANUFACTURING - DIVERSIFIED: 5.02%
1,100 Minnesota Mining and Manufacturing Company............. 94,325
-----------
NATURAL GAS: 4.90%
1,500 The Coastal Corporation................................ 92,063
-----------
OIL - INTERNATIONAL INTEGRATED: 3.54%
800 Exxon Mobil Corporation................................ 66,650
-----------
PAPER & FOREST PRODUCTS: 2.22%
1,200 International Paper Company............................ 41,775
-----------
PHOTOGRAPHY/IMAGING: 3.81%
1,200 Eastman Kodak Company.................................. 71,700
-----------
RAILROADS: 5.37%
2,200 Burlington Northern Inc................................ 51,975
2,750 Norfolk Southern Corporation........................... 48,984
-----------
100,959
-----------
RETAIL - GENERAL MERCHANDISE: 2.40%
1,500 The May Department Stores Company...................... 45,094
-----------
RETAIL - SPECIALTY/RETAIL: 3.21%
2,500 The Limited, Inc....................................... 60,313
-----------
TELECOMMUNICATIONS - LONG DISTANCE: 1.11%
600 AT&T Corp.............................................. 20,813
-----------

4
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UNITY FUND

TELEPHONE: 6.57%
1,100 Bell Atlantic Corporation.............................. $ 58,163
1,500 SBC Communications Inc................................. 65,531
-----------
123,694
-----------
TOBACCO: 4.44%
3,200 Philip Morris Companies Inc............................ 83,600
-----------
Total Common Stocks (Cost $1,864,076+)................. 1,832,902
-----------

Principal
Amount SHORT-TERM INVESTMENTS: 1.48%
--------------------------------------------------------------------------------

$27,851 Firstar Stellar Treasury Fund (Cost $27,851)........... 27,851
-----------
Total Investments in Securities
(Cost $1,891,927): 98.95% ........................... 1,860,753
Other Assets in Excess of Liabilities: 1.05% .......... 19,708
-----------
Total Net Assets: 100.00%......................... $ 1,880,461
===========

+ At May 31, 2000, the cost of securities for Federal tax purposes was
$1,973,174. Gross unrealized appreciation and depreciation of securities is
as follows:

Gross unrealized appreciation.......................... $ 120,954
Gross unrealized depreciation.......................... (233,375)
-----------
Net unrealized depreciation.......................... $ (112,421)
===========

See accompanying Notes to Financial Statements.

5
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UNITY FUND

STATEMENT OF ASSETS AND LIABILITIES AT MAY 31, 2000
--------------------------------------------------------------------------------

ASSETS
Cash ........................................................ $ 2,506
Investments in securities, at value
(identified cost $1,891,927) .............................. 1,860,753
Receivables
Due from Advisor .......................................... 15,816
Dividends and interest .................................... 7,170
Deferred Organization Cost .................................. 24,634
Prepaid expenses............................................. 5,068
-----------
Total assets.......................................... 1,915,947
-----------

LIABILITIES
Payables
Administration fees......................................... 2,548
Accrued expenses............................................ 32,938
-----------
Total liabilities..................................... 35,486
-----------

NET ASSETS .................................................... $ 1,880,461
===========

CLASS A - NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($1,880,461 / 192,227 shares outstanding;
unlimited number of shares [par value $0.01] authorized)..... $ 9.78
===========

CLASS A - OFFERING PRICE PER SHARE ($9.78 / 0.965) ............ $ 10.13
===========

COMPONENTS OF NET ASSETS
Paid-in capital ............................................. $ 1,910,116
Undistributed net investment income ......................... 6,964
Accumulated net realized loss on investments ................ (5,445)
Net unrealized depreciation on investments .................. (31,174)
-----------
NET ASSETS............................................ $ 1,880,461
===========

See accompanying Notes to Financial Statements.

6
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UNITY FUND

STATEMENT OF OPERATIONS - FOR THE YEAR ENDED MAY 31, 2000
--------------------------------------------------------------------------------

INVESTMENT INCOME
Income
Dividends ................................................... $ 76,738
Interest .................................................... 1,726
---------
Total income .............................................. 78,464
---------
Expenses
Advisory fees (Note 3) ...................................... 26,342
Administration fees (Note 3) ................................ 30,082
Custodian and accounting fees ............................... 22,071
Professional fees ........................................... 20,772
Distribution fees (Class A) (Note 4) ........................ 15,495
Transfer agent fees ......................................... 18,043
Shareholder servicing fees (Class A) (Note 4) ............... 7,748
Amortization of deferred organization costs ................. 8,023
Registration fees ........................................... 6,040
Reports to shareholders ..................................... 5,072
Trustees' fees .............................................. 2,995
Other ....................................................... 2,018
Insurance expense ........................................... 947
---------
Total expenses ............................................ 165,648
Less, advisory fee waiver and absorption .................. (100,604)
---------
Net expenses .............................................. 65,044
---------
NET INVESTMENT INCOME.................................. 13,420
---------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain from security transactions .................. 11,610
Net change in unrealized depreciation on investments .......... (405,954)
---------
Net realized and unrealized loss on investments............ (394,344)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS... $(380,924)
=========

See accompanying Notes to Financial Statements.

7
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UNITY FUND

STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

Year June 29, 1998*
Ended through
May 31, 2000 May 31, 1999
------------ ------------
<S> <C> <C>
(DECREASE) / INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ..................................... $ 13,420 $ 16,466
Net realized gain from security transactions .............. 11,610 100,667
Net change in unrealized (depreciation)/appreciation
on investments............................................ (405,954) 374,780
----------- -----------
NET (DECREASE)/INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................................... (380,924) 491,913
----------- -----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................................ (19,723) (3,199)
From net realized gain from security transactions ......... (115,019) (2,703)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS................... (134,742) (5,902)
----------- -----------

TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net (decrease) / increase in net assets derived from
net change in outstanding shares (Class A) (a)............ (1,659,739) 3,569,855
----------- -----------
TOTAL (DECREASE) / INCREASE IN NET ASSETS............. (2,175,405) 4,055,866
----------- -----------

NET ASSETS
Beginning of period ....................................... 4,055,866 --
----------- -----------
END OF PERIOD ............................................. $ 1,880,461 $ 4,055,866
=========== ===========

(a) A summary of shares transactions is as follows:

For the Year June 29, 1998*
Ended through
May 31, 2000 May 31, 1999
------------------------ -------------------------
CLASS A Shares Value Shares Value
------- ------ ----- ------ -----
Shares sold ........................ 387,677 $ 3,931,608 410,458 $ 4,116,516
Shares issued in reinvestment
of distributions ................. 12,899 129,118 565 5,617
Shares redeemed .................... (563,262) (5,720,465) (56,110) (552,278)
-------- ----------- -------- -----------
Net (decrease) / increase .......... (162,686) ($1,659,739) 354,913 $ 3,569,855
======== =========== ======== ===========
</TABLE>

* Commencement of operations.

See accompanying Notes to Financial Statements.

8
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UNITY FUND

FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year June 29, 1998*
Ended through
May 31, 2000 May 31, 1999
------------ ------------
<S> <C> <C>
Net asset value, beginning of period ....................... $ 11.43 $10.00
------- ------
Income from investment operations:
Investment income ........................................ 0.07 0.05
Net realized and unrealized gain/(loss) on investments.... (1.25) 1.40
------- ------
Total from investment operations................... (1.18) 1.45
------- ------
Less distributions:
From net investment income ............................... (0.07) (0.01)
From net realized gain from security transactions......... (0.40) (0.01)
------- ------
Total distributions................................ (0.47) (0.02)
------- ------

Net asset value, end of period ............................. $ 9.78 $11.43
======= ======

Total return (sales charge not included) ................... (10.41%) 14.55%++

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) ...................... $ 1,881 $4,056

Ratio of expenses to average net assets:
Before expense reimbursement ............................. 5.36% 6.24%+
After expense reimbursement .............................. 2.10% 2.10%+

Ratio of net investment income to average net assets:
After expense reimbursement............................... 0.43% 0.64%+

Portfolio turnover rate .................................... 43.05% 54.69%
</TABLE>

* Commencement of operations.
+ Annualized.
++ Not annualized.

See accompanying Notes to Financial Statements.

9
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UNITY FUND

NOTES TO FINANCIAL STATEMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The Unity Fund (the "Fund") (formerly Liberty Freedom 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 June 29, 1998. The
Fund's primary investment objective is the growth of capital. Its secondary
objective is to provide current income. The Fund uses a disciplined approach to
select securities it believes are undervalued, reasonably priced and have
prospects for continued consistent growth.

Shares of beneficial interest of the Fund are currently divided into two
classes, designated Class A Shares and Class I Shares. Each class represents an
interest in the same portfolio. During the year ending May 31, 2000, Class I was
inactive.

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.

D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $40,000
in connection with its organization. These costs have been deferred
and are being amortized on a straight-line basis over a period of
sixty months from the date the Fund commenced investment operations.

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

10
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UNITY FUND

NOTES TO FINANCIAL STATEMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------

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 May 31, 2000, Liberty Bank and Trust Company (the
"Advisor") maintained overall responsibility for the Fund's assets and was
responsible for monitoring the day-to-day activities of the Sub-Advisor, The
Edgar Lomax Company. As compensation for its services, the Advisor is entitled
to a monthly fee at the annual rate of 0.25% based upon the average daily net
assets of the Fund. For the year ended May 31, 2000, The Edgar Lomax Company
(the "Sub-Advisor") provided the Fund with advice on buying and selling
securities and managing the investments of the Fund. As compensation for its
services, the Sub-Advisor is entitled to a monthly fee at the annual rate of
0.60% based upon the average daily net assets of the Fund.

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 Class A shares to an annual
operating expense of 2.10% 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 expenses. For the year ended
May 31, 2000, the Advisor reduced its fees and absorbed Fund expenses in the
amount of $100,604; no amounts were reimbursed to the Advisor. Cumulative
expenses subject to recapture pursuant to the aforementioned conditions amounted
to $207,001 for the Fund at May 31, 2000.

11
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UNITY FUND

NOTES TO FINANCIAL STATEMENTS AT MAY 31, 2000
--------------------------------------------------------------------------------

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 - DISTRIBUTION AND SHAREHOLDER SERVICING ARRANGEMENTS

The Trust has adopted a Distribution Plan (the "Distribution Plan") in
accordance with Rule 12b-1 under the 1940 Act. The Distribution Plan provides
that the Fund's Class A Shares pay a fee to the Advisor, acting as Distribution
Coordinator, at an annual rate of up to 0.50% of the average daily net assets of
the Fund. The expenses which the Fund may pay 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 the Fund. Payments made pursuant to the
Distribution Plan will represent compensation for distribution and service
activities, not reimbursement for specific expenses incurred. The Distribution
Plan allows excess distribution expenses to be carried forward for the following
three fiscal years.

The Trust has also adopted a Shareholder Servicing Plan (the "Servicing
Plan") which provides that the Fund's Class A Shares pay a fee to the Advisor at
an annual rate of up to 0.25% of the average daily net assets of the Fund, as
compensation for providing, or arranging for others to provide, certain
specified shareholders services to Class A shareholders. The Advisor will pay
certain banks, trust companies, broker-dealers and other financial
intermediaries (each a "Participating Organization") out of the fees the Advisor
receives from the Fund under the Servicing Plan to the extent that these
Participating Organizations perform shareholder servicing functions for Class A
shares owned from time to time by customers of the Participating Organization.

NOTE 5 - PURCHASES AND SALES OF SECURITIES

For the year ended May 31, 2000, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, were $1,300,744 and
$2,999,289, respectively.

12
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REPORT OF INDEPENDENT ACCOUNTANTS

THE BOARD OF TRUSTEES AND SHAREHOLDERS
UNITY 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 Unity F und, series of Advisor
Series Trust (the "Fund") at May 31, 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 May 31, 2000 by correspondence with the custodian, provides a
reasonable basis for the opinion expressed above. The financial statements for
the year ended May 31, 1999, were audited by other independent accountants whose
report dated July 9, 1999 expressed an unqualified opinion on those financial
statements.

PricewaterhouseCoopers LLP

New York, New York
August 18, 2000

13
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ADVISOR
Liberty Bank and Trust Company
6600 Plaza Drive, Suite 310
New Orleans, LA 70122

SUB-ADVISOR
The Edgar Lomax Company
6564 Loisdale Court, Suite 310
Springfield, VA 22150

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
American Data Services, Inc.
P.O. Box 5536
Hauppauge, NY 11788-0132
(800) 385-7003

LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, CA 94104

AUDITOR
PricewaterhouseCoopers, LLP
1177 Avenue of the Americas
New York, NY 10036