ADVISORS SERIES TRUST, N-30D, 2000-09-13

ADVISORS SERIES TRUST
N-30D, 2000-09-13

Previous: SEPARATE ACCOUNT NY-B OF FIRST GOLDEN AMER LIFE INS CO OF NY, 485BPOS, EX-99.B15, 2000-09-13

Next: MYTURN COM INC, S-8, 2000-09-13

THE AVATAR
ADVANTAGE EQUITY
ALLOCATION FUND

--------------------------------------------------------------------------------

SEMI-ANNUAL REPORT

--------------------------------------------------------------------------------
For the Six Months Ended
June 30, 2000
<PAGE>
THE AVATAR
ADVANTAGE EQUITY
ALLOCATION FUND

August 2000

Dear Shareholder,

We are pleased to report on the progress of the AVATAR ADVANTAGE EQUITY
ALLOCATION FUND for the six months ended June 30, 2000. For the period, Avatar's
asset allocation philosophy--participating in market gains during market
upswings while protecting those gains against loss during market
downturns--helped the Fund realize a total return of 4.71% (not including the
sales charge). The fully invested S&P 500 Index was down (0.42%) for the same
period. For the first half of the year, Avatar's equity position slowly
decreased in response to various indicators that pointed to a slowdown. Our
exposure ranged between 70% and 85% invested in equities and the remainder in
cash.

2000 -- THE FIRST SIX MONTHS IN REVIEW

For a period encompassing the start of the new millennium, the markets began on
a strong note, peaking in March then beginning a volatile downward turn that had
seasoned investment professionals holding their breath or jumping ship or both.

The first quarter of the year saw the Fund begin with an 85% invested exposure
to equities. This reflected Avatar's moderately negative research, caused
primarily by the rising interest rate environment. As the quarter progressed the
U.S. economy remained strong, with the predicted slowdown pushed back by
economists to later in the year. Strong consumer demand powered the economy
along with first quarter GDP coming in at 5.4%. First quarter earnings reports
were above expectations but the market's fixation on possible Fed tightening
moves prevented this good news from translating into higher share prices for the
reported issues. We trimmed exposure during the latter part of the quarter while
raising the cash allocation. Again market leadership rotated between New Economy
issues and Old Economy issues, dot-com companies and old standbys. The first
quarter ended with the S&P 500 Index up slightly and the NASDAQ up greatly. The
Fund beat the S&P 500 results but trailed the NASDAQ for the quarter.

The second quarter began with investment equity exposure around 80%. The
environment worsened as the economy remained strong and interest rate hike fears
increased. Momentum turned negative as the tech sector was hit hard, led by
declining internet stocks. NASDAQ suffered a 13% downturn for the quarter,
ending the 6 month

2
<PAGE>
period in negative territory. Equity exposure dipped to 70% before rising again
as the second quarter came to a close. Stock selection for the period was made
more difficult due to volatility caused by a combination of lower trading volume
and sharp sector rotation. Our portfolio, oriented toward large capitalization
stocks and healthy amounts of cash, helped the Fund beat both the S&P 500 and
the NASDAQ returns in the second quarter and for the 6 month period, also. The
Fund's focus on technology, consumer staples and healthcare benefited it. Drug
industry and energy stocks in the portfolio also contributed to performance.
Cyclical stocks in basic industries and consumer spending were underweight,
hence limiting losses suffered by these groups.

2000 -- SECOND HALF MARKET OUTLOOK

Corporate earnings for the second quarter appear to be poised to surpass
analysts' expectations and analysts have revised upward third and fourth quarter
projected earnings to come in at the low double-digit range. If correct, whether
stock prices increase as a result of these favorable developments remains to be
seen. The strong growth in corporate profits and the generally favorable
positive flows of funds into the equity market have added impetus to a favorably
developing economic backdrop. Continued favorable (or benign) economic reports
will ease anxiety over possible moves by the Federal Reserve.

We continue to be concerned about the narrow stock market leadership and the
lowered trading volume. Broadening of the market would be a welcome and healthy
development. We are also concerned about the up-tick in inflation, silently
resonating in various economic reports. We remain in a neutral weight in our
equity exposure, awaiting further signals, before making any adjustments. Where
warranted, we will make investments in sectors poised for good returns. We
expect continued market volatility since no sector has assumed any type of
leadership role. Our use of cash will serve us well as we study the economy's
roadmaps.

Our goal at Avatar is to successfully evaluate current investment risk and
successfully alter the portfolio mix to reflect the current environment. We
anticipate reaching that goal for the full year.

Sincerely,

/s/ Charles White

Charles White
Portfolio Manager
President--Avatar Investors Associates Corp.

3
<PAGE>
FOOTNOTES:

Past performance is not predictive of future performance. Fund share value
fluctuates and an investor may have a gain or loss when shares are redeemed.

The Fund's average annual total return for the period from inception on December
3, 1997 (commencement of operations) through June 30, 2000 was 18.44%. The
Fund's total return for the one-year ended June 30, 2000 was 15.33%. If the
maximum sales charge was reflected, the Fund's returns for the same periods
would have been 16.34% and 10.14%, respectively.

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

The NASDAQ Stock Market is the largest electronic, screen-based market in the
world with over 5,100 companies listed.

Indexes do not incur expenses and are not available for direct investment.

The Fund is distributed by First Fund Distributors Inc., Phoenix, AZ.

4
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

SCHEDULE OF INVESTMENTS at June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------

COMMON STOCKS: 82.4%

ADVERTISING: 0.7%
1,100 Omnicom Group, Inc. .................................... $ 97,969
-----------
AEROSPACE - DEFENSE: 0.6%
1,300 United Technologies Corporation ........................ 76,537
-----------
BANKING: 0.9%
2,700 The Chase Manhattan Bank ............................... 124,369
-----------
BEVERAGES - ALCOHOLIC: 1.8%
3,400 Anheuser-Busch Companies, Inc. ......................... 253,937
-----------
CHEMICALS: 0.8%
2,400 E. I. du Pont de Nemours and Co. ....................... 105,000
-----------
COMMERCIAL BANKS: 1.2%
3,800 Silicon Valley Bancshares .............................. 161,975
-----------
COMPUTERS - MICRO: 3.5%
1,900 Dell Computer Corporation* ............................. 93,694
1,500 International Business Machines Corporation ............ 164,344
2,400 Sun Microsystems, Inc.* ................................ 218,250
-----------
476,288
-----------
COMPUTERS - NETWORKING PRODUCTS: 3.7%
5,500 Cisco Systems, Inc.* ................................... 349,594
500 Juniper Networks, Inc.* ................................ 72,781
1,100 Network Appliance, Inc.* ............................... 88,550
-----------
510,925
-----------
COMPUTERS - PERIPHERALS: 2.5%
4,400 EMC Corporation* ....................................... 338,525
-----------
COMPUTERS - SOFTWARE: 5.0%
400 Brocade Communications Systems, Inc. ................... 73,394
4,100 Microsoft Corporation* ................................. 328,000
1,700 Oracle Corporation* .................................... 142,906
1,100 VERITAS Software Corporation* .......................... 124,317
-----------
668,617
-----------
CONSUMER STAPLES: 1.0%
2,300 Colgate-Palmolive Company .............................. 137,712
-----------
DIVERSIFIED FINANCIAL SERVICES: 4.5%
3,300 American Express Company ............................... 172,012
2,200 Citigroup Inc. ......................................... 132,550
1,300 Fannie Mae ............................................. 67,844
3,000 Morgan Stanley Dean Witter & Co. ....................... 249,750
-----------
622,156
-----------
DIVERSIFIED MANUFACTURING: 3.2%
5,400 General Electric Company ............................... 286,200
1,800 Minnesota Mining and Manufacturing Company ............. 148,500
-----------
434,700
-----------
DRUGS & PHARMACEUTICALS: 5.5%
1,500 Johnson & Johnson ...................................... 152,812
6,325 Pfizer Inc. ............................................ 303,600
6,000 Schering-Plough Corporation ............................ 303,000
-----------
759,412
-----------
ELECTRIC - INTEGRATED: 1.8%
2,900 Dominion Resources, Inc. ............................... 124,337
2,200 Duke Energy Corporation ................................ 124,025
-----------
248,362
-----------
ELECTRIC POWER: 1.6%
4,800 The AES Corporation* ................................... 219,000
-----------
ELECTRONIC COMPONENTS - SEMICONDUCTORS: 6.9%
2,900 Intel Corporation ...................................... 387,694
3,200 JDS Uniphase Corporation* .............................. 383,600
2,100 Xilinx, Inc. ........................................... 173,381
-----------
944,675
-----------
ELECTRONICS: 3.3%
3,000 Applied Materials, Inc.* ............................... 271,875
800 Broadcom Corporation, Class A* ......................... 175,150
-----------
447,025
-----------
FINANCE - INVESTMENT BANKERS/BROKERS: 1.2%
1,400 Merrill Lynch & Co., Inc. .............................. 161,000
-----------

See accompanying Notes to Financial Statements.

5
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

SCHEDULE OF INVESTMENTS at June 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
SHARES VALUE
--------------------------------------------------------------------------------

FINANCIAL GUARANTEE INSURANCE: 0.5%
1,300 The PMI Group, Inc. .................................... $ 61,750
-----------
FOOD - DIVERSIFIED: 1.2%
4,400 General Mills, Inc. .................................... 168,300
-----------
FOOD - RETAIL: 1.1%
6,800 The Kroger Co. ......................................... 150,025
-----------
FOOD - WHOLESALE: 0.5%
1,600 Sysco Corporation ...................................... 67,400
-----------
HEALTHCARE: 1.1%
3,000 Medtronic, Inc. ........................................ 149,437
-----------
INSURANCE - BROKERS: 1.1%
1,400 Marsh & McLennan Companies, Inc. ....................... 146,212
-----------
INSURANCE - MULTILINE: 1.6%
1,840 American International Group, Inc. ..................... 216,200
-----------
MEDIA: 1.1%
2,000 Time Warner, Inc. ...................................... 152,000
-----------
MEDICAL - BIOMEDICAL GENETICS: 1.0%
2,000 Baxter International Inc. .............................. 140,625
-----------
OIL & GAS - DRILLING: 0.9%
3,100 Nabors Industries, Inc.* ............................... 128,844
-----------
OIL - DOMESTIC INTEGRATED: 0.2%
425 Transocean Sedco Forex, Inc.* .......................... 22,711
-----------
OIL - EXPLORATION & PRODUCTION: 2.3%
3,000 Apache Corporation ..................................... 176,438
2,600 Devon Energy Corporation* .............................. 146,088
-----------
322,526
-----------
PETROLEUM PRODUCTS: 1.9%
3,300 Exxon Mobil Corporation ................................ 259,050
-----------
PIPELINES: 1.0%
2,200 Enron Corporation ...................................... 141,900
-----------
RAILROADS: 0.5%
2,000 Union Pacific Corporation .............................. 74,375
-----------
RETAIL: 1.0%
2,400 Wal-Mart Stores, Inc. .................................. 138,300
-----------
RETAIL - BUILDING PRODUCTS: 2.0%
5,400 The Home Depot, Inc. ................................... 269,663
-----------
SUPER - REGIONAL BANKS: 0.9%
2,000 Northern Trust Corporation ............................. 130,125
-----------
TELECOMMUNICATIONS: 2.3%
6,900 MCI Worldcom Incorporated .............................. 316,538
-----------
TELECOMMUNICATIONS - EQUIPMENT: 8.4%
700 Corning Incorporated ................................... 188,912
2,710 Lucent Technologies Inc. ............................... 160,568
4,800 Nokia Corporation, ADR ................................. 239,700
2,200 Nortel Networks Corporation ............................ 150,150
3,000 QUALCOMM Incorporated* ................................. 180,000
2,200 Scientific-Atlanta, Inc. ............................... 163,900
600 Sycamore Networks ...................................... 66,225
-----------
1,149,455
-----------
TELEPHONE: 1.9%
3,100 BellSouth Corporation .................................. 132,138
2,100 GTE Corporation ........................................ 130,725
-----------
262,863
-----------
TOTAL COMMON STOCKS (cost $8,140,192)+ ........................... 11,256,483
-----------

See accompanying Notes to Financial Statements.

6
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

SCHEDULE OF INVESTMENTS at June 30, 2000 (Unaudited) - (Continued)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
--------------------------------------------------------------------------------

SHORT-TERM INVESTMENTS: 2.8%

MONEY MARKET INVESTMENT: 2.1%
$ 290,010 Firstar Stellar Treasury Fund (cost $290,010) ........ $ 290,010
-----------
U.S. TREASURY OBLIGATIONS: 0.7%
100,000 US Teasury Bills, 5.75%, 9/07/00 ..................... 98,964
-----------
TOTAL SHORT-TERM INVESTMENTS (cost $388,957) ..................... 388,974
-----------
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS: 13.9%
300,000 Freddie Mac Discount Note, 6.30%, 7/11/00 ............ 299,475
-----------
1,600,000 Freddie Mac Discount Note, 6.36%, 7/11/00 ............ 1,597,174
-----------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(cost $1,896,648)+ ............................................. 1,896,649
-----------
TOTAL INVESTMENTS IN SECURITIES (cost $10,425,797): 99.1% ........ 13,542,106
Other Assets less Liabilities: 0.9% .............................. 116,290
-----------
NET ASSETS: 100.0% ............................................... $13,658,396
===========

* Non-income producing security.

+ Gross unrealized appreciation and depreciation of securities is as follows:

Gross unrealized appreciation ............................... $ 3,408,752
Gross unrealized depreciation ............................... (292,443)
-----------
Net unrealized appreciation ................................. $ 3,116,309
===========

See accompanying Notes to Financial Statements.

7
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES at June 30, 2000 (Unaudited)

ASSETS
Investments in securities, at value (cost $10,425,797) ...... $13,542,106
Receivables:
Fund shares sold .......................................... 15,658
Dividends and interest .................................... 3,412
Deferred organization costs ................................. 16,971
Prepaid expenses and other assets ........................... 102,910
-----------
Total assets ............................................ 13,681,057
-----------

LIABILITIES
Payables:
Due to advisor ............................................ 3,531
Distribution fees ......................................... 2,765
Administration fees ....................................... 2,466
Accrued expenses ............................................ 13,899
-----------
Total liabilities ....................................... 22,661
-----------

NET ASSETS .................................................. $13,658,396
===========

NET ASSET VALUE AND REDEMPTION* PRICE PER SHARE
[$13,658,396/1,059,865 shares outstanding; unlimited
number of shares (par value $.01) authorized] ............. $ 12.89
===========

OFFERING PRICE PER SHARE ($12.89/.9550) ..................... $ 13.50
===========

COMPONENTS OF NET ASSETS
Paid-in capital ............................................. $ 9,549,665
Accumulated net investment income ........................... 9,030
Accumulated net realized gain on investments ................ 983,392
Net unrealized appreciation on investments ................ 3,116,309
-----------
Net assets .............................................. $13,658,396
===========

* Redemption of shares held less than 1 year are subject to a 1% redemption
fee payable to the Fund.

See accompanying Notes to Financial Statements.

8
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

STATEMENT OF OPERATIONS For the Six Months Ended June 30, 2000 (Unaudited)

INVESTMENT INCOME
Income
Interest ................................................. $ 70,438
Dividends ................................................ 39,470
-----------
Total income ........................................... 109,908
-----------
Expenses
Advisory fees ............................................ 58,023
Distribution fees ........................................ 17,066
Administration fees ...................................... 14,959
Fund accounting fees ..................................... 10,470
Audit fees ............................................... 7,480
Transfer agent fees ...................................... 6,483
Custody fees ............................................. 3,989
Legal fees ............................................... 3,989
Deferred organization expense ............................ 3,491
Reports to shareholders .................................. 3,491
Miscellaneous ............................................ 2,992
Trustee fees ............................................. 1,883
Registration expense ..................................... 1,496
Insurance expense ........................................ 883
-----------
Total expenses ......................................... 136,695
Less: fees waived ...................................... (34,155)
-----------
Net expenses ........................................... 102,540
-----------
NET INVESTMENT INCOME ................................ 7,368
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments ........................... 1,132,209
Net change in unrealized depreciation on investments ....... (523,887)
-----------
Net realized and unrealized gain on investments .......... 608,322
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ... $ 615,690
===========

See accompanying Notes to Financial Statements.

9
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000# DECEMBER 31, 1999
-------------- -----------------
<S> <C> <C>
NET INCREASE / (DECREASE) IN NET ASSETS FROM:

OPERATIONS
Net investment income ........................ $ 7,368 $ 11,506
Net realized gain on investments ............. 1,132,209 1,425,102
Net change in unrealized (depreciation)/
appreciation on investments ................ (523,887) 810,363
------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... 615,690 2,246,971
------------ ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income ........................ -- --
Net realized gain on security transactions ... -- (1,424,086)
In excess of net realized gains .............. -- (148,817)
------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS .......................... -- (1,572,903)
------------ ------------

CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from net
change in outstanding shares (a) ........... (1,083,947) (1,237,226)
------------ ------------
TOTAL DECREASE IN NET ASSETS ............... (468,257) (563,158)

NET ASSETS
Beginning of period .......................... 14,126,653 14,689,811
------------ ------------
END OF PERIOD ................................ $ 13,658,396 $ 14,126,653
============ ============
</TABLE>

See accompanying Notes to Financial Statements.

10
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

STATEMENT OF CHANGES IN NET ASSETS (Continued)

(a) A summary of capital share transactions is as follows:

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000# DECEMBER 30, 1999
------------------------ ------------------------
Shares Value Shares Value
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold ................. 34,091 $ 430,540 77,232 $ 926,857
Shares issued in reinvestment
of distributions .......... -- -- 130,857 1,572,903
Shares redeemed ............. (121,761) (1,514,487) (301,355) (3,736,986)
-------- ----------- -------- -----------
Net decrease ................ (87,670) $(1,083,947) (93,266) $(1,237,226)
======== =========== ======== ===========
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

11
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

FINANCIAL HIGHLIGHTS For a capital share outstanding throughout each period

<TABLE>
<CAPTION>
YEAR ENDED
SIX MONTHS DECEMBER 31, DECEMBER 3, 1997*
ENDED -------------------- THROUGH
JUNE 30, 2000# 1999 1998 DECEMBER 31,1997
-------------- ---- ---- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $ 12.31 $ 11.84 $ 10.02 $ 10.00
------- ------- ------- -------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.01 0.01 0.05 0.01
Net realized and unrealized gain
on investments ..................... 0.57 1.98 2.48 0.02
------- ------- ------- -------
Total from investment operations ....... 0.58 1.99 2.53 0.03
------- ------- ------- -------

LESS DISTRIBUTIONS:
From net investment income ........... 0.00 (0.00) (0.05) (0.01)
From net capital gains ............... 0.00 (1.52) (0.64) (0.00)
Tax return of capital ................ 0.00 (0.00) (0.02) (0.00)
Total distributions .................... 0.00 (1.52) (0.71) (0.01)
------- ------- ------- -------
Net asset value, end of period ......... $ 12.89 $ 12.31 $ 11.84 $ 10.02
======= ======= ======= =======

Total return ........................... 4.71%** 17.11% 25.81% 0.22%**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) . $ 13.7 $ 14.1 $ 14.7 $ 20.2

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursement ......... 2.00%+ 1.99% 2.03% 1.52%+
After expense reimbursement .......... 1.50%+ 1.50% 1.50% 1.39%+

RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS:
After expense reimbursement .......... 0.11%+ 0.08% 0.36% 0.47%+
Portfolio turnover rate .............. 35.42%** 101.86% 79.95% 2.48%**
</TABLE>

# Unaudited.
* Commencement of operations.
** Not Annualized.
+ Annualized.

See accompanying Notes to Financial Statements.

12
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS at June 30, 2000 (Unaudited)

NOTE 1 - ORGANIZATION

The Avatar Advantage Equity Allocation 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 December 3, 1997.
The Fund's objective is to seek long-term capital appreciation by investing in
equity securities.

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 are recorded on the ex-dividend date.
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 $35,000
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 operation.

13
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS at June 30, 2000 (Unaudited) - (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 six months ended June 30, 2000, Avatar Investors Associates Corp.
(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 0.85% based upon the average daily net assets of the Fund.
For the six months ended June 30, 2000, the Fund incurred $58,023 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 1.50% 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 six months
ended June 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in
the amount of $34,155; no amounts were reimbursed to the Advisor.

14
<PAGE>
THE AVATAR ADVANTAGE EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS at June 30, 2000 (Unaudited) - (Continued)

Investment Company Administration, LLC (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.

NOTE 4 - DISTRIBUTION COSTS

The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 (the
"Plan"). The Plan permits the Fund to pay for distribution and related expenses
at an annual rate of up to 0.25% of the Fund's average daily net assets
annually. The expenses covered by the Plan may include the cost of preparing and
distributing prospectuses and other sales material, advertising and public
relations expenses, payments to financial intermediaries and compensation of
personnel involved in selling shares of the Fund. Payments made pursuant to the
Plan will represent compensation for distribution and service activities, not
reimbursements for specific expenses incurred. Pursuant to a distribution
coordination agreement adopted under the Plan, distribution fees are paid to the
Advisor as "Distribution Coordinator". During the six months ended June 30,
2000, the Fund paid the Distribution Coordinator in the amount of $17,066.

NOTE 5 - PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$3,954,901 and $5,926,182, respectively.

15
<PAGE>
--------------------------------------------------------------------------------

Advisor
AVATAR INVESTORS ASSOCIATES CORP.
900 Third Avenue
New York, New York 10022
www.avatar-associates.com

Distributor
FIRST FUND DISTRIBUTORS, INC.
4455 E. Camelback Road, Suite 261-E
Phoenix, Arizona 85018

Custodian
FIRSTAR INSTITUTIONAL CUSTODY SERVICES
425 Walnut Street M/L 6118
Cincinnati, OH 45202

Transfer Agent
AMERICAN DATA SERVICES, INC.
150 Motor Parkway, Suite 109
Hauppauge, New York 11788
888-263-6452

Legal Counsel
PAUL, HASTINGS, JANOFSKY & WALKER, LLP
345 California Street, 29th Floor
San Francisco, California 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 subject to change.
<PAGE>
THE AVATAR
ADVANTAGE
BALANCED FUND
--------------------------------------------------------------------------------

SEMI-ANNUAL REPORT

--------------------------------------------------------------------------------
For the Six Months Ended
June 30, 2000
<PAGE>
THE AVATAR
ADVANTAGE
BALANCED FUND

August 2000

Dear Shareholder,

We are pleased to report on the progress of the AVATAR ADVANTAGE BALANCED FUND
for the six-month period ended June 30, 2000. For the period, Avatar's asset
allocation philosophy--participating in market gains during rising markets while
protecting capital during declining markets--helped the Fund realize a total
return of 4.03% (not including the sales charge). The fully invested S&P 500
Index was down (0.42%) for the same period while the Lehman Brothers Govt./Corp.
Bond Index was up 4.18% for the same period. For the first half of the year,
Avatar maintained a fluctuating equity position. Our exposure ranged between 45%
and 60% invested in equities, 35% to 45% in bonds and the remainder in cash.

2000 -- THE FIRST SIX MONTHS IN REVIEW

For a period encompassing the start of the new millenium, the markets began on a
strong note, peaking in March then beginning a volatile downward turn that had
seasoned investment professionals holding their breath, jumping ship or both.

The first quarter of the year saw the Fund begin with a 60% invested equity
exposure with about 35% allocated to bonds. This reflected Avatar's moderately
negative research, caused primarily by the rising interest rate environment. As
the quarter progressed, the U.S. economy remained strong, with the predicted
slowdown pushed back by economists to later in the year. Strong consumer demand
powered the economy along with first quarter GDP coming in at 5.4% (later
revised downward). First quarter earning reports were above expectations, but
the market's fixation on possible Fed tightening moves prevented this good news
from translating into higher share prices for the reported issues. We trimmed
equity exposure below 50% during the latter part of the quarter while raising
the fixed-income allocation. Again market leadership rotated between "new
economy" and "old economy" issues, dot-com companies and old standbys. The first
quarter ended with both the S&P 500 Index and the Lehman Bond Index up slightly.
The Fund beat both indices handily for the quarter.

The second quarter began with investment equity exposure around 55%. The
environment worsened, as the economy remained strong and interest rate hike
fears increased. Momentum turned negative, as the technology sector was hit
hard, led by

2
<PAGE>
declining Internet stocks. The NASDAQ suffered a 13% downturn for the quarter
while the S&P 500 lost 2.7%. Equity exposure dropped below 50% once again before
rising again as the second quarter came to a close. Stock selection for the
period was made more difficult due to volatility caused by a combination of
lower trading volume and sharp sector rotation. The Fed pushed short-term
interest rates up by 50 basis points in May; the quarter ended with yields
declining as prices rose. Our portfolio, oriented toward large capitalization
stocks and healthy amounts of cash, helped the Fund beat both the S&P 500 and
the Lehman Bond Index returns in the second quarter although all three
experienced negative returns. The Fund's focus on technology, consumer staples
and healthcare benefited it. Drug industry and energy stocks in the portfolio
also contributed to performance. Cyclical stocks in the basic industries and
consumer spending categories were underweight, hence limiting losses suffered by
these groups.

2000 -- SECOND HALF MARKET OUTLOOK

Corporate earnings for the second quarter appear to be poised to surpass
analysts' expectations. Analysts have revised upward third and fourth quarter
projected earnings to come in at the low double-digit range. If correct, it
remains to be seen whether stock prices increase as a result of these favorable
developments. The strong growth in corporate profits and the generally favorable
positive flows of funds into the equity market have added impetus to a favorably
developing economic backdrop. We expect, as a consequence, that prospective GDP
growth will extend the current business cycle into the longest expansion in
economic history. Continued favorable (or benign) economic reports will ease
anxiety over possible moves by the Federal Reserve.

We continue to be concerned about the narrow stock market leadership and the
lowered trading volume. Broadening of the market would be a welcome and healthy
development. We are concerned by the up-tick in inflation, silently resonating
in various economic reports. On the bond side, the shrinking supply of treasury
debt has resulted in a short supply of paper and richer yields. Our bond
portfolios will continue to emphasize treasury holdings that we believe will
continue to benefit from the favorable supply/demand fundamentals. We remain in
a neutral weight in our equity exposure, awaiting further signals before making
any adjustments. Where warranted, we will make investments in sectors poised for
good returns. Our use of fixed-income instruments will serve us well as we study
the economy's roadmaps.

Our goal at Avatar is to successfully evaluate current investment risk and
successfully alter the portfolio mix to reflect the current environment. We
anticipate reaching this goal for the full year.

Sincerely,

/s/ Charles White

Charles White
Portfolio Manager
President--Avatar Investors Associates Corp.

3
<PAGE>
Past performance is not predictive of future performance. Fund share value
fluctuates and an investor may have a gain or loss when shares are redeemed.

The Fund's average annual total return for the period from inception on January
13, 1998

(commencement of operations) through June 30, 2000 was 15.70%. The Fund's total
return for the one-year ended June 30, 2000 was 13.11%. If the maximum sales
charge was reflected, the Fund's returns for the same periods would have been
13.55% and 8.02%, respectively.

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

The Lehman Corporate Bond Index includes all publicly issued, fixed-rate,
non-convertible investment grade domestic corporate debt issues and also
includes Yankee Bonds.

Indexes do not incur expenses and are not available for direct investment.

The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ.

4
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

COMMON STOCKS: 58.8%

ADVERTISING: 0.5%
100 Omnicom Group, Inc. $ 8,906
----------
AEROSPACE - DEFENSE: 0.3%
100 United Technologies Corp. 5,887
----------
BANKING: 0.8%
300 Chase Manhattan Bank (The) 13,819
----------
BASIC MATERIALS: 0.4%
200 Union Pacific Corp. 7,437
----------
BEVERAGES - ALCOHOLIC: 1.3%
300 Anheuser-Busch Companies, Inc. 22,406
----------
CHEMICALS: 0.5%
200 E.I. du Pont de Nemours and Co. 8,750
----------
COMMERCIAL BANKS: 0.7%
300 Silicon Valley Bancshares 12,787
----------
COMMUNICATIONS - TECHNOLOGY: 2.0%
300 JDS Uniphase Corp.* 35,962
----------
COMPUTERS - MICRO: 4.6%
100 Brocade Communications Systems, Inc. 18,348
200 Dell Computer Corp.* 9,862
400 EMC Corp.* 30,775
100 International Business Machines Corp. 10,956
100 VERITAS Software Corp.* 11,302
----------
81,243
----------
Computers - Networking Products: 2.2%
500 Cisco Systems, Inc.* 31,781
100 Network Appliance, Inc.* 8,050
----------
39,831
----------
COMPUTERS - PERIPHERALS: 1.0%
200 Sun Microsystems, Inc.* 18,187
----------
COMPUTERS - SOFTWARE: 2.3%
300 Microsoft Corp.* 24,000
200 Oracle Corp.* 16,812
----------
40,812
----------
CONSUMER STAPLES: 0.7%
200 Colgate-Palmolive Co. 11,975
----------
Diversified Financial Services: 2.1%
200 Citigroup, Inc. 12,050
300 Morgan Stanley Dean Witter & Co. 24,975
----------
37,025
----------
DIVERSIFIED MANUFACTURING: 2.7%
600 General Electric Co. 31,800
200 Minnesota Mining and Manufacturing Co. 16,500
----------
48,300
----------
DIVERSIFIED OPERATIONS: 1.5%
100 Corning, Inc. 26,987
----------
DRUGS & PHARMACEUTICALS: 3.7%
100 Johnson & Johnson 10,187
550 Pfizer, Inc. 26,400
600 Schering-Plough Corp. 30,300
----------
66,887
----------
ELECTRIC - INTEGRATED: 0.7%
300 Dominion Resources Inc/Va 12,862
----------
ELECTRIC POWER: 1.3%
500 AES Corp. (The)* 22,812
----------
ELECTRONIC COMPONENTS - SEMICONDUCTORS: 2.4%
200 Intel Corp. 26,738
200 Xilinx, Inc. 16,513
----------
43,251
----------
FINANCE - INVESTMENT BANKERS/BROKERS: 0.6%
100 Merrill Lynch & Co., Inc. 11,500
----------
Financial Guarantee Insurance: 0.5%
200 PMI Group, Inc. (The) 9,500
----------

See accompanying Notes to Financial Statements.

5
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

FINANCIAL SERVICES: 1.7%
500 American Express Co. $ 26,063
100 Federal National Mortgage Association 5,219
----------
31,282
----------
FOOD - DIVERSIFIED: 0.9%
400 General Mills, Inc. 15,300
----------
FOOD - RETAIL: 0.9%
700 Kroger Co. (The) 15,444
----------
FOOD - WHOLESALE: 0.5%
200 Sysco Corp. 8,425
----------
HEALTHCARE: 0.8%
300 Medtronic, Inc. 14,944
----------
INSURANCE - BROKERS: 0.6%
100 Marsh & McLennan Companies, Inc. 10,444
----------
INSURANCE - MULTILINE: 1.4%
213 American International Group, Inc. 25,028
----------
MEDIA: 0.8%
200 Time Warner, Inc. 15,200
----------
Medical - Biomedical Genetics: 0.8%
200 Baxter International Inc. 14,063
----------
OIL & GAS - DRILLING: 0.7%
300 Nabors Industries, Inc.* 12,469
----------
OIL - DOMESTIC INTEGRATED: 0.1%
38 Transocean Sedco Forex, Inc.* 2,031
----------
Oil - Exploration & Production: 2.4%
300 Apache Corp. 17,644
200 Devon Energy Corp.* 11,238
400 EOG Resources 13,400
----------
42,282
----------
PETROLEUM PRODUCTS: 1.7%
400 Exxon Mobil Corp. 31,400
----------
PIPELINES: 0.7%
200 Enron Corp. 12,900
----------
RETAIL: 0.6%
200 Wal-Mart Stores, Inc. 11,525
----------
RETAIL - BUILDING PRODUCTS: 1.3%
450 Home Depot, Inc. (The) 22,472
----------
SUPER - REGIONAL BANKS: 0.7%
200 Northern Trust Corp. 13,013
----------
TELECOMMUNICATIONS: 1.4%
300 BellSouth Corp. 12,788
200 QUALCOMM, Inc.* 12,000
----------
24,788
----------
Telecommunications - Equipment: 4.9%
200 Applied Materials, Inc.* 18,125
365 Lucent Technologies, Inc. 21,626
400 Nokia Corp. - SPON ADR 19,975
200 Nortel Networks Corp. 13,650
200 Scientific-Atlanta, Inc. 14,900
----------
88,276
----------
Telecommunications - Services: 0.7%
200 GTE Corp. 12,450
----------
TELEPHONE: 1.8%
700 Worldcom, Inc. 32,113
----------
UTILITIES: 0.6%
200 Duke Energy Corp. 11,275
----------
TOTAL COMMON STOCKS (cost $779,239)+ 1,054,250
----------

See accompanying Notes to Financial Statements.

6
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

U.S. GOVERNMENT OBLIGATION: 17.3%
$ 30,000 US Treasury Bonds, 12.00%, 08/15/13 (cost $332,627) $ 310,859
----------
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS: 22.3%

225,000 Federal Home Loan Mortgage Corp., 5.75%, 7/15/03 217,489
60,000 Federal National Mortgage Association, 6.09%, 8/13/03 58,295
125,000 Freddie Mac Discount Note 6.36%, 7/11/00 124,779
----------
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(cost $410,280)+ 400,563
----------
SHORT-TERM INVESTMENT: 1.3%

MONEY MARKET INVESTMENT: 1.3%
$ 23,775 Firstar Stellar Treasury Fund (cost $23,775) $ 23,775
----------
TOTAL INVESTMENTS IN SECURITIES (cost $1,545,920): 99.7% 1,789,447
Other Assets less Liabilities:0.3% 5,112
----------
NET ASSETS: 100.0% $1,794,559
==========

* Non-income producing security.

+ Gross unrealized appreciation and depreciation of securities is as follows:

Gross unrealized appreciation $ 305,086
Gross unrealized depreciation (61,559)
----------
Net unrealized appreciation $ 243,527
==========

See accompanying Notes to Financial Statements.

7
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

STATEMENT OF ASSETS AND LIABILITIES at June 30, 2000
--------------------------------------------------------------------------------

ASSETS
Investments in securities, at value (cost $1,545,920) ........ $1,789,447
Receivables:
Dividends and interest ..................................... 18,102
Due from advisor ........................................... 6,313
Net unrealized appreciation on investments ................... 6,335
----------
Total assets ............................................. 1,820,197
----------

LIABILITIES
Payables:
Administration fees ........................................ 2,466
Accrued expenses ........................................... 23,172
----------
Total liabilities ........................................ 25,638
----------

NET ASSETS ..................................................... $1,794,559
==========

NET ASSET VALUE AND REDEMPTION* PRICE PER SHARE
[($1,794,559/139,046 shares outstanding; unlimited
number of shares (par value $.01)) authorized] ............... $ 12.91
==========

MAXIMUM OFFERING PRICE PER SHARE ($12.91/.9550) ................ $ 13.52
==========

COMPONENTS OF NET ASSETS
Paid-in capital .............................................. $1,449,194
Accumulated net investment income ............................ 17,095
Accumulated net realized gain on investments ................. 84,743
Net unrealized appreciation on investments ................... 243,527
----------
Net assets ................................................. $1,794,559
==========

* Redemption of shares held less than 1 year are subject to a 1% redemption
fee payable to the Fund.

See accompanying Notes to Financial Statements.

8
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

STATEMENT OF OPERATIONS For the Six Months Ended June 30, 2000 (Unaudited)

INVESTMENT INCOME
Income
Interest .................................................... $ 25,816
Dividends ................................................... 3,238
Other ....................................................... 227
--------
Total income .............................................. 29,281
--------
Expenses
Administration fees ......................................... 14,958
Fund accounting fees ........................................ 7,979
Audit fees .................................................. 7,480
Advisory fees ............................................... 6,528
Transfer agent fees ......................................... 6,483
Reports to shareholders ..................................... 3,491
Custody fees ................................................ 2,493
Legal fees .................................................. 1,995
Trustee fees ................................................ 1,882
Miscellaneous ............................................... 1,247
Deferred organization expense ............................... 1,247
Insurance expense ........................................... 469
Registration expense ........................................ 437
Total expenses ............................................ 56,689
--------
Less: fees waived and expenses absorbed ................... (44,503)
--------
Net expenses .............................................. 12,186
--------
NET INVESTMENT INCOME ................................... 17,095
--------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments .............................. 90,345
Net change in unrealized depreciation on investments .......... (38,022)
--------
Net realized and unrealized gain on investments ............. 52,323
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...... $ 69,418
========

See accompanying Notes to Financial Statements.

9
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000# DECEMBER 31, 1999
-------------- -----------------
<S> <C> <C>
NET INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income ............................... $ 17,095 $ 27,133
Net realized gain on investments .................... 90,345 81,571
Net unrealized (depreciation)/appreciation
on investments .................................... (38,022) 73,561
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................................. 69,418 182,265
----------- -----------

DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............................... -- (27,583)
Net realized gain on security transactions ........ -- (86,640)
in excess of net realized gains ................. -- (5,602)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........... -- (119,825)
----------- -----------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change
in outstanding shares (a) ......................... -- 119,793
----------- -----------
TOTAL INCREASE IN NET ASSETS .................... 69,418 182,233
----------- -----------

NET ASSETS
Beginning of period ................................. 1,725,141 1,542,908
----------- -----------
END OF PERIOD ....................................... $ 1,794,559 $ 1,725,141
=========== ===========
</TABLE>

# Unaudited

See accompanying Notes to Financial Statements.

10
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

STATEMENT OF CHANGES IN NET ASSETS (Continued)

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

SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000# DECEMBER 31, 1999
-------------- -----------------
Shares Value Shares Value
------ ----- ------ -----

Shares sold ......................... -- $ -- 167 $ 2,000
Shares issued in reinvestment
of distributions .................. -- -- 9,911 119,825
Shares redeemed ..................... -- -- (167) (2,032)
---- ---- ----- --------
Net increase ........................ -- $ -- 9,911 $119,793
==== ==== ===== ========

# Unaudited

See accompanying Notes to Financial Statements.

11
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

FINANCIAL HIGHLIGHTS For a capital share outstanding throughout each period

<TABLE>
<CAPTION>
JANUARY 13, 1998*
SIX MONTHS ENDED YEAR ENDED THROUGH
JUNE 30, 2000# DECEMBER 31, 1999 DECEMBER 31, 1998
-------------- ----------------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ... $ 12.41 $ 11.95 $ 10.00
------- -------- -------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................ 0.12 0.21 0.19
Net realized and unrealized gain
on investments ..................... 0.38 1.17 2.11
------- -------- -------
Total from investment operations ....... 0.50 1.38 2.30
------- -------- -------

LESS DISTRIBUTIONS:
From net investment income ........... -- (0.21) (0.19)
From net realized gain ............... -- (0.67) (0.16)
In excess of net realized gain ....... -- (0.04) --
------- -------- -------
Total distributions .................... -- (0.92) (0.35)
------- -------- -------
Net asset value, end of period ......... $ 12.91 $ 12.41 $ 11.95
======= ======== =======

Total return ........................... 4.03%+ 11.82% 23.11%+

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) $ 1,795 $ 1,725 $ 1,543

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before expense reimbursement ......... 6.49%** 7.28% 8.59%**
After expense reimbursement .......... 1.40%** 1.40% 1.40%**

RATIO OF NET INVESTMENT LOSS TO AVERAGE
NET ASSETS:
After expense reimbursement .......... 1.96%** 1.73% 1.89%**
Portfolio turnover rate .............. 28.12%+ 101.53% 95.00%+
</TABLE>

* Commencement of operations.
# Unaudited
** Annualized.
+ Not Annualized.

See accompanying Notes to Financial Statements.

12
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

NOTES TO FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION

The Avatar Advantage Balanced 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 January 13, 1998. The Fund's
objective is to seek long-term capital appreciation and to preserve profits
during market downturns by investing in a mix of stocks, bonds and money market
securities.

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.

13
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)

D. DEFERRED ORGANIZATION COSTS. The Fund has incurred expenses of $12,500
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.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended June 30, 2000, Avatar Investors Associates Corp.
(the "Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, facilities, and provides most of the personnel needed by the Fund.
As compensation for its services, the Advisor is entitled to a monthly fee at
the annual rate of 0.75% based upon the average daily net assets of the Fund.
For the six months ended June 30, 2000, the Fund incurred $6,528 in Advisory
Fees.

The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund and to pay Fund operating
expenses to the extent necessary to limit the Fund's aggregate annual operating
expenses to 1.40% of average net assets (the "expense cap"). Any such reductions
made by the Advisor in its fees or payment of expenses which are the Fund's
obligation are subject to reimbursement by the Fund to the Advisor, if so
requested by the Advisor, in subsequent fiscal years if the aggregate amount
actually paid by the Fund toward the operating expenses for such fiscal year
(taking into account the reimbursement) does not exceed the applicable
limitation on Fund expenses. The Advisor is permitted to be reimbursed only for
fee reductions and expense payments made in the previous three fiscal years, but
is permitted to look back five years and four years, respectively, during the
initial six years and seventh year of the Fund's operations. Any such
reimbursement is also contingent upon Board of Trustees review and approval at
the time the reimbursement is made. Such reimbursement may not be paid prior to
the Fund's payment of current ordinary operating expenses. For the six months
ended June 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in
the amount of $44,503; no amounts were reimbursed to the Advisor.

14
<PAGE>
THE AVATAR ADVANTAGE BALANCED FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) - (Continued)

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.

NOTE 4 - PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$435,463 and $488,266, respectively.

15
<PAGE>
--------------------------------------------------------------------------------

Advisor

AVATAR INVESTORS ASSOCIATES CORP.
900 Third Avenue
New York, New York 10022
www.avatar-associates.com

Distributor

FIRST FUND DISTRIBUTORS, INC.
4455 E. Camelback Road, Suite 261-E
Phoenix, Arizona 85018

Custodian

FIRSTAR INSTITUTIONAL CUSTODY SERVICES
425 Walnut Street, M/L 6118
Cincinnati, Ohio 45202

Transfer Agent

AMERICAN DATA SERVICES, INC.
150 Motor Parkway, Suite 109
Hauppauge, New York 11788
888-263-6452

Legal Counsel

PAUL, HASTINGS, JANOFSKY & WALKER, LLP
345 California Street, 29th Floor
San Francisco, California 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.

Semi-Annual Report

June 30, 2000
<PAGE>
August 2000

Dear Shareholder,

We wish to report on the results of the AVATAR ADVANTAGE INTERNATIONAL EQUITY
ALLOCATION FUND for the six month period ended June 30, 2000. Avatar's
investment objective of maximizing portfolio returns within prescribed risk
limits by capitalizing on significant global market inefficiencies resulted in a
loss of (6.04%) for the period.

The Morgan Stanley Capital International (MSCI) EAFE + Canada Index was down
(3.51%) for the same period.

2000--THE FIRST SIX MONTHS IN REVIEW

The new millenium began on an encouraging note as 1999 ended with foreign
markets on an upswing and forecasts for the New Year similarly optimistic.
Strong demand by American consumers was expected to continue to fuel a
manufacturing expansion in foreign countries and the American business model of
corporate cost cutting, strategic mergers and large doses of the entrepreneurial
spirit was expected to lift the world's economies to new heights, particularly
in Europe. However, it was not smooth sailing. Despite improving economic
conditions and higher growth estimates, investors became nervous about global
inflationary trends and possible interest rate hikes. Coupled with volatility in
technology, media and telecommunications issues, international financial markets
were rocked in the second quarter. Skittishness regarding the Fed's moves in
American traveled overseas, as Fed watching became an international event. The
anticipated slowdown in the U.S. economy was seen as a negative event for those
countries supplying goods to satisfy America's consumer demand. The euro fell
mightily against the dollar as the period progressed. Economic reports indicated
that Japan had slipped back into recession although the rest of Asia remained on
its expected growth path. As the period came to a close, European interest rates
rose, with analysts hoping it would stem any inflationary trends and lead to
expanded growth, with a resultant decrease in unemployment by 2002.

2000--SECOND HALF MARKET OUTLOOK

Although the U.S. stock market has been the place to be in recent years, we
continue to believe that international stocks may now take center stage. Europe
is now in a different stage of the economic cycle relative to the United States.
European GDP growth estimates for the rest of this year and next are higher than
for the United States. Asia's GDP growth outlook remains even more favorable.
Domestic spending in both Europe and Asia is expected to increase for the rest
of the year due to a combination of individual spending and government stimulus
(in the form of spending programs or tax cuts). We are encouraged that European
<PAGE>
companies have adopted the U.S. industry model of consolidation and cost
cutting, which we hope will help sustain continued growth. Entry of China into
the WTO will fuel investments there by other Asian and European countries, while
opening European and Asian markets to a billion new customers. Currently, our
models are positive on Hong Kong, Germany, Italy and France. We have increased
equity exposure, reflecting our bullish outlook for international stocks. On the
negative side, pockets of uneasiness and uncertainty remain throughout Europe
and Asia. Japan continues to baffle us, Russia has a new government attempting
to fix old problems like tax collections and ethnic conflicts, the euro remains
weak, while oil prices soar. In short, world markets still face major challenges
to achieve and sustain predicted growth trends.

Our mission at Avatar is to evaluate current investment risk and alter the
portfolio mix to reflect the current environment. Our plan is to continue this
strategy and report back to you on our success.

Sincerely,

/s/ Theodore M. Theodore

Theodore M. Theodore
Portfolio Manager

Past performance is not predictive of future performance.

The Morgan Stanley Capital International (MSCI) EAFE plus Canada Index is a
capitalization-weighted index comprised of stocks representing a sampling of
companies in a manner that replicates the industry composition of certain
foreign markets. Countries included in the Index are Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy,
Japan, Malaysia, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden,
Switzerland and the United Kingdom. Indexes do not incur expenses and are not
available for direct investment.

The Fund's average annual total return for the period from inception on February
2, 1998 through June 30, 2000 was 7.78%. The Fund's total return for the
one-year ended June 30, 2000 was 9.79%.
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
WORLD EQUITY BENCHMARK
Shares SERIES (webs): 97.98 Market Value
--------------------------------------------------------------------------------

700 Australia Index Series........................ $ 7,569
800 Canada Index Series........................... 15,950
2,800 France Index Series........................... 80,675
2,300 Germany Index Series.......................... 55,775
800 Hong Kong Index Series........................ 9,800
1,000 Italy Index Series............................ 26,000
8,000 Japan Index Series............................ 121,500
1,300 Netherlands Index Series...................... 32,419
400 Spain Index Series............................ 10,400
2,300 Switzerland Index Series...................... 36,656
4,100 United Kingdom Index Series................... 78,156
---------
474,900
---------
Total Open-End Funds
(cost $435,689+)............................ 474,900
---------

Principal Amount SHORT-TERM INVESTMENTS: 0.38%
--------------------------------------------------------------------------------
1,840 Firstar Stellar Treasury Fund................. 1,840
---------

Total Investments in Securities
(Cost $437,529): 98.36% ................... 476,740
Assets in Excess of Other Liabilities: (1.64%) 7,941
TOTAL NET ASSETS: 100.0% ..................... $ 484,681
=========

+ Gross unrealized appreciation and depreciation of securities is as follows:

Gross unrealized appreciation................. $ 44,329
Gross unrealized depreciation................. (5,118)
---------
Net unrealized depreciation............... $ 39,211
=========
See accompanying Notes to Financial Statements.

4
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

ASSETS
Investments in securities, at value
(identified cost $437,529).............................. $ 476,740
Receivables:
Securities sold......................................... 15,195
Due from Advisor........................................ 15,872
Interest................................................ 221
Deferred Organization Cost................................. 6,478
Prepaid expenses .......................................... 584
---------
Total assets......................................... 515,090
---------

LIABILITIES
Accrued expenses........................................... 30,409
---------
Total liabilities.................................... 30,409
---------

NET ASSETS .................................................. $ 484,681
=========

Net asset value, offering and redemption price per share
[$484,681/43,951 shares outstanding; unlimited
number of shares (par value $0.01) authorized]............. $ 11.03
=========

COMPONENTS OF NET ASSETS
Paid-in capital............................................ $ 437,126
Undistributed net investment income........................ (2,851)
Accumulated net realized gain on investments............... 11,195
Net unrealized appreciation on investments ................ 39,211
---------
Net assets.............................................. $ 484,681
=========

See accompanying Notes to Financial Statements.

5
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

INVESTMENT INCOME
Income
Interest................................................ $ 1,143
---------
Total income...................................... 1,143
---------
Expenses
Fund Accounting fees.................................... 13,384
Administration fees (Note 3)............................ 15,123
Professional fees....................................... 9,579
Transfer agent fees..................................... 7,924
Custody fees............................................ 2,521
Advisory fees (Note 3).................................. 2,441
Trustees' fees.......................................... 1,260
Other .................................................. 1,512
Amortization of deferred organization costs............. 1,260
Distribution fees (Note 4).............................. 3,529
Insurance expense....................................... 467
---------
Total expenses....................................... 59,000
---------
Less: advisory fee waiver and
absorption (Note 3)............................... (55,006)
---------
Net expenses......................................... 3,994
---------
NET INVESTMENT INCOME ............................ (2,851)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions............... 16,798
Net change in unrealized depreciation
on investments........................................... (45,175)
---------
Net realized and unrealized loss on investments......... (28,377)
---------
Net Decrease in net assets resulting
from operations.................................... $ (31,228)
=========

See accompanying Notes to Financial Statements.

6
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Six Months Year
Ended Ended
June 30, 2000# December 31, 1999
--------------------------------------------------------------------------------

NET INCREASE IN ASSETS FROM
OPERATIONS
Net investment (loss)/income................ $ (2,851) $ 8,707
Net realized gain/(loss) from security
transactions............................... 16,798 (2,902)
Net change in unrealized (depreciation)/
appreciation on investments................ (45,175) 81,562
-------- --------
Net (decrease)/increase in net assets
resulting from operations.............. (31,228) 87,367
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ...................... -- (6,729)
Realized capital gains...................... -- (4,493)
-------- --------
Total distributions...................... -- (11,222)
-------- --------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from
net change in outstanding shares (a)....... 8,000 19,173
-------- --------
Total (decrease)/increase in net assets.. (23,228) 95,318
-------- --------
NET ASSETS
Beginning of period............................ 507,909 412,591
-------- --------
End of period ................................. $484,681 $507,909
======== ========

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

Six Months Ended Year Ended
June 30, 2000# December 31, 1999
------------------- ------------------
Shares Value Shares Value
------ ----- ------ -----

Shares sold ............ 700 $8,000 778 $ 8,000
Shares issued in
reinvestment of
distributions.......... -- -- 981 11,223
Shares redeemed......... -- -- (5) (50)
--- ------ ----- -------
Net increase............ 700 $8,000 1,754 $19,173
=== ====== ===== =======

----------
# Unaudited.
* Commencement of operations.

See accompanying Notes to Financial Statements.

7
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Six Months February 2, 1998*
Ended Ended through
June 30,2000# December 31, 1999 December 31, 1998
------------- ----------------- -----------------
<S> <C> <C> <C>
Net asset value,
beginning of period ............... $ 11.74 $ 9.94 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income ............ (0.06) 0.21 0.23
Net realized and unrealized
gain on investments ............ (0.77) 1.86 0.30
------- ------- -------
Total from investment operations .... (0.71) 2.07 0.53
------- ------- -------
Less distributions:
From net investment income ....... -- (0.16) (0.21)
From realized capital gains ...... -- (0.11) (0.38)
------- ------- -------
Total distributions paid ............ -- (0.27) (0.59)
------- ------- -------

Net asset value, end of period ...... $ 11.03 $ 11.74 $ 9.94
======= ======= =======

Total return ........................ (6.05%)++ 20.85% 5.50%++

Ratios/supplemental data:
Net assets,
end of period (thousands) ......... $ 485 $ 508 $ 413

Ratio of expenses to average
net assets:
Before expense reimbursement ..... 24.37%+ 27.71% 31.32%+
After expense reimbursement ...... 1.65%+ 1.65% 1.65%+

Ratio of net investment (loss)/
income to average net assets:
After expense reimbursement ...... (1.18%)+ 2.00% 2.45%+

Portfolio turnover rate ............. 44.37%++ 67.19% 177.43%++
</TABLE>

----------
# Unaudited.
* Commencement of operations.
+ Annualized.
++ Not annualized.

8
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The Avatar Advantage International Equity Allocation 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 February 2,
1998.

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 are recorded on the ex-dividend date.
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.

9
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $12,500
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.

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended June 30, 2000, Avatar Investors Associates Corp.
(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 six months ended June 30, 2000, the Fund incurred $2,441 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 1.65% 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 six months
ended June 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in
the amount of $55,006; no amounts were reimbursed to the Advisor.

10
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

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.

NOTE 4 - DISTRIBUTION COSTS

The Fund has adopted a Distribution Plan pursuant to Rule 12b--1 (the
"Plan"). The Plan permits the Fund to pay for distribution and related expenses
at an annual rate of up to 0.25% of the Fund's average daily net assets
annually. The expenses covered by the Plan may include the cost of preparing and
distributing prospectuses and other sales material, advertising and public
relations expenses, payments to financial intermediaries and compensation of
personnel involved in selling shares of the Fund. Payments made pursuant to the
Plan will represent compensation for distribution and service activities, not
reimbursements for specific expenses incurred. Pursuant to a distribution
coordination agreement adopted under the Plan, distribution fees are paid to the
Advisor as "Distribution Coordinator". During the six months ended June 30,
2000, the Fund paid the Distribution Coordinator in the amount of $3,529.

11
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

NOTE 5 - PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$198,877 and $227,249, respectively.

NOTE 6 - INVESTMENT IN WORLD EQUITY BENCHMARK SHARES

The Fund invests in World Equity Benchmarks Shares (WEBS). WEBS Index Fund,
Inc. is an index fund consisting of separate series known as WEBS, each of which
seeks investment results similar to the performance of a single stock market or
all of the stock markets in a geographic region. Individual WEBS are not
redeemable at their net asset value, but trade on the AMEX during the day at
prices that are normally close to, but not the same as, their net asset value.
There is no assurance that an active trading market will be maintained for WEBS
or that market prices of WEBS of any WEBS Index Series will be close to their
net asset values in the future. Each WEBS Index Series issues and redeems WEBS
on a continuous basis at net asset value only in large specified numbers of WEBS
called "Creation Units", usually in exchange for a basket of portfolio
securities and an amount of cash. Except when aggregated in Creation Units, WEBS
are not redeemable securities.

The principal risks of investing in WEBS are as follows:

Market Risk - The net asset value of a WEBS Index Series will change with
changes in the market value of the stocks it holds.

Foreign Security Risk - Each WEBS Index Series (except for the USA WEBS Index
Series) invests entirely within the equity markets of a single country or
region. These markets are subject to special risks associated with foreign
investment including, but not limited to: generally less liquid and less
efficient securities markets; generally greater price volatility; exchange rate
fluctuations and exchange controls; less publicly available information about
issuers; the imposition of taxes; exchange controls; higher transaction and
custody costs; settlement delays and risk of loss; difficulties in enforcing
contracts; less liquidity and smaller market capitalizations; lesser regulation
of securities markets; different accounting and disclosure standards;
governmental interference; higher inflation; and social, economic and political
uncertainties and the risk of expropriation of assets.

Management Risk - Because a WEBS Index Series does not fully replicate its
benchmark index and may hold non-index stocks, it is subject to management risk.
This is the risk that the investment advisor's strategy, the implementation of
which is subject to a number of constraints, may not produce the intended
results.

12
<PAGE>
THE AVATAR ADVANTAGE
INTERNATIONAL EQUITY ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

Currency Risk - Because each WEBS Index Series' net asset value is determined on
the basis of U.S. dollars, you may lose money if the local currency of a foreign
market depreciates against the U.S. dollar, even if the local currency value of
a WEBS Index Series' holdings goes up.

Emerging Market Risk - Some foreign markets in which WEBS Index Series invest
are considered to be emerging market countries. Investment in these countries
subjects a WEBS Index Series to a greater risk of loss than investments in a
developed country. This is due to, among other things, greater market
volatility, lower trading volume, political and economic instability, greater
risk of market shut down and more governmental limitations on foreign investment
policy than those typically found in a developed market.

Non-Diversification Risk - Each WEBS Index Series (except for the EMU, Canada,
Japan, United Kingdom, and USA WEBS Index Series) is classified an
"non-diversified." This means that these WEBS Index Series may invest most of
their assets in securities issued by a small number of companies. As a result,
these WEBS Index Series are more susceptible to the risks associated with these
particular companies, or to a single economic, political or regulatory
occurrence.

Trading Risk - While the creation/redemption feature of WEBS is designed to make
it likely that WEBS will trade close to their net asset value, disruptions to
creations and redemptions may result in trading prices that differ significantly
from net asset value. Also, there can be no assurance that an active trading
market will exist for WEBS of each series on the AMEX.

Since WEBS are investment companies they incur certain operating expenses, such
as investment management fees, which would not be incurred by the Fund if it
invested directly in the same underlying securities held by the WEBS.

13
<PAGE>
ADVISOR
Avatar Investors Associates Corp.
900 Third Avenue
New York, New York 10022
www.avatar-associates.com

DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261-E
Phoenix, Arizona 85018

CUSTODIAN
Firstar Institutional Custody Services
425 Walnut Street M/L 6118
Cincinnati, Ohio 45202

TRANSFER AGENT
ICA Fund Services, Inc.
4455 East Camelback Road, Suite 261-E
Phoenix, Arizona 85018
(800)576-8229

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

[PHOTO OF AL FRANK]

SEMI-ANNUAL REPORT
JUNE 30, 2000

The Al Frank Fund
465 Forest Avenue, Suite I
Laguna Beach, Ca 92651
Shareholder Services (888) 263-6443
Daily Nav: (877) 654-1325
www.alfrank.com
<PAGE>
AL FRANK ASSET MANAGEMENT, INC.
P.O. Box 1438, Laguna Beach, CA 92652
Phone 949-497-7657 Fax 949-497-7658

Dear Fund Shareholder:

Although the major stock market averages, aside from the Russell 2000 Index,
were all in negative territory for the first six months of 2000, The Al Frank
Fund (ticker symbol = VALUX) continued to enjoy superb relative performance. In
fact, the Fund advanced +11.07% for the six months ended June 30, 2000, compared
to a decline of -9.13% for the Dow Jones Industrial Average, a loss of -2.54%
for the Nasdaq Composite Index, a drop of -1.00% for the Standard & Poor's 500
Index and a gain of +2.47% for the Russell 2000. Considering that the Fund has
shown an annualized total return of +21.23% since its inception on January 2,
1998, we are obviously pleased that our brand of simple Value investing has been
handsomely rewarded despite an environment generally hostile toward undervalued
and out-of-favor stocks.

As readers of our investment newsletter, THE PRUDENT SPECULATOR, are aware, we
seek to buy stocks trading for inexpensive fundamental valuations. These are
corporations trading for low historic and relative multiples of earnings, sales,
cash flow and book value. We believe in broad diversification - the Fund now has
more than 250 separate investments in common stocks - and we are extremely
patient - utilizing the same holding period philosophy found in the PRUDENT
SPECULATOR.

The disciplined patience that we employ can best be illustrated by considering
the farmer, who plants his crops, tends his fields, often with little to show
for his short term efforts, and eventually harvests his bounty. The success of
the Fund can be attributed in part to "seeds" planted during 1998 in the midst
of the 'Asian Contagion' worldwide financial panic when we were able to pick up
semiconductor, computer, oil-service, copper and smaller- capitalization stocks
at incredibly cheap fundamental valuations. Of course, our short term results
were nothing to get excited about as the Fund finished 1998 with a loss of
-9.30%. Happily, the poorly performing bargain stocks of 1998 became the
must-have, hot momentum stocks of 1999 and early-2000. Just as the farmer must
reap what he has sown, we have been taking advantage of the market's frenzied
ardor for technology stocks this year by capturing some or all of our profits on
many of our biggest winners, redeploying the proceeds into other undervalued
stocks and beginning the growing season anew.

Interestingly, our fundamental analysis continues to uncover numerous "buy"
candidates, making us quite sanguine about the outlook for the stock markets in
general and our stocks in particular. As of this writing, we have 160 stocks on
the recommended list of THE PRUDENT SPECULATOR, more than at any time in our
23-year history, a period of time that includes the Crash of '87 and the Selloff
of '90. While the markets are always susceptible to unforeseen events, we
strongly believe that the renewed interest in Value investing shown by investors
this year is here to stay. Of course, 75 years of market history has
overwhelmingly demonstrated that stocks trading for low multiples of sales and
earnings have outperformed those trading for higher valuations.

The current composition of the Fund, in our opinion, remains well-balanced
between dozens of so-called "old economy" industrial, financial and cyclical
corporations and numerous "new economy" technology stocks. Because technology
represents more than 35% of the assets of the Fund, shareholders should consider
the movement of the Nasdaq Composite, as well as the Standard & Poor's 500 and
Russell 2000 indexes when gauging the performance of the Fund on a daily,
weekly, monthly or quarterly basis.

We have always managed the Fund with a long term time horizon, purchasing stocks
for their three-to-five year potential appreciation and not for what they might
do next week. Like the tortoise in the children's fable THE TORTOISE AND THE
<PAGE>
THE AL FRANK FUND

HARE, our investment strategy missed the flashy boom in profitless "dot.com"
stocks, but we also were not caught in the equally incendiary crash of Internet
stocks earlier this year. Judging by the results in the two-and- one-half year
life of the Fund, we suspect that most shareholders are pleased that we have
stuck to our knitting, so to speak.

Our Fund has grown nicely this year with assets as of August 22, 2000 in excess
of $13 million. We have received a healthy amount of favorable press this year
which has spurred substantial interest in VALUX, but our level of assets remains
well within our comfort zone of being able to invest in any market
capitalization stock we choose. We thank you for your continued participation in
The Al Frank Fund.

/s/ John Buckingham /s/ Al Frank

John Buckingham and Al Frank

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 total return for the year ended June 30, 2000 was 42.38%.

The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip
stocks.

The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed
to represent the broad domestic economy.

The Russell 2000 Index is a widely regarded small cap index of the 2,000
smallest securities of the Russell 3000 Index which is comprised of the 3,000
largest U.S. securities as determined by total market capitalization. Investing
in small cap stocks carries added risks associated with decreased liquidity and
greater volatility.

The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ.

2
<PAGE>
THE AL FRANK FUND

SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 95.4% Market Value
--------------------------------------------------------------------------------

AEROSPACE - DEFENSE: 3.7%
11,000 Allied Research Corp.*.............................. $ 82,500
6,000 BE Aerospace, Inc................................... 41,250
3,100 Ducommun, Inc.*..................................... 37,006
4,000 GenCorp, Inc........................................ 32,000
900 Honeywell International, Inc........................ 30,319
3,000 Kaman Corp.......................................... 32,062
1,000 Litton Industries, Inc.*............................ 42,000
8,000 LMI Aerospace, Inc.................................. 20,000
1,200 Lockheed Martin Corp................................ 29,775
1,600 Primex Technologies,Inc............................. 35,200
900 Raytheon Co., - Class B............................. 17,325
1,000 Sequa Corp.*........................................ 38,187
-----------
437,624
-----------
AIRLINES: 1.2%
600 AMR Corp.*.......................................... 15,862
800 Delta Air Lines, Inc................................ 40,450
1,275 KLM Royal Dutch Airlines............................ 33,867
1,000 UAL Corp............................................ 58,187
-----------
148,366
-----------
APPAREL MANUFACTURERS: 1.9%
1,000 Garan, Inc.......................................... 22,625
3,400 Kellwood Co......................................... 71,825
2,300 Oxford Industries................................... 41,400
3,000 Quiksilver, Inc.*................................... 46,687
5,000 Tommy Hilfiger Corp.*............................... 37,500
-----------
220,037
-----------
APPLIANCES: 0.3%
1,100 Maytag Corp......................................... 40,562
-----------
ATHLETIC EQUIPMENT: 1.2%
37,213 First Team Sports, Inc.*............................ 79,078
1,800 Reebok International Ltd.*.......................... 28,687
3,199 Saucony, Inc. - Class B............................. 31,590
-----------
139,355
-----------

See accompanying Notes to Financial Statements.

3
<PAGE>
THE AL FRANK FUND

SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------

AUTO PARTS AND EQUIPMENT: 1.0%
2,000 Arvin Industries, Inc............................... $ 34,750
1,999 Dura Automotive Systems, Inc........................ 21,614
1,800 Meritor Automotive, Inc............................. 19,800
8,000 TBC Corp.*.......................................... 37,000
118 Visteon Corp........................................ 1,429
-----------
114,593
-----------
AUTOMOBILES: 0.8%
4,000 Autonation, Inc..................................... 28,250
900 Ford Motor Co....................................... 38,700
1,000 Navistar International Corp......................... 31,062
-----------
98,012
-----------
BANKING: 0.2%
1,000 Bank One Corp....................................... 26,562
-----------
BUILDING AND CONSTRUCTION: 5.3%
14,500 Ablest, Inc.*....................................... 76,125
900 Ameron International Corp........................... 32,175
16,000 Cavalier Homes, Inc................................. 26,000
7,000 Champion Enterprises, Inc.*......................... 34,125
4,000 Clayton Homes, Inc.................................. 32,000
6,000 Craftmade International, Inc........................ 40,500
4,000 D.R. Horton, Inc.................................... 54,250
9,000 Encompass Services Corp............................. 51,750
3,000 Engle Homes, Inc.................................... 28,687
2,000 Fleetwood Enterprise, Inc........................... 28,500
1,700 NCI Building System, Inc.*.......................... 34,425
900 Nortek, Inc.*...................................... 17,775
5,000 Oakwood Homes Corp.................................. 9,062
1,600 Owens Corning....................................... 14,800
1,203 Patrick Industries, Inc............................. 7,519
17,000 SMC Corp............................................ 53,125
6,000 Standard Pacific Corp............................... 60,000
1,200 Toll Brothers, Inc.*................................ 24,600
-----------
625,418
-----------

See accompanying Notes to Financial Statements.

4
<PAGE>
THE AL FRANK FUND

CAPACITORS: 1.9%
30,000 Aerovox, Inc........................................ $ 123,750
4,000 KEMET Corp.......................................... 100,250
-----------
224,000
-----------
CHEMICALS: 1.0%
3,200 Crompton Corp....................................... 39,200
2,200 Octel Corp.......................................... 17,187
5,500 Omnova Solutions, Inc............................... 34,375
1,600 Wellman, Inc........................................ 25,900
-----------
116,662
-----------
CIRCUITS: 1.0%
10,000 Circuit Systems, Inc................................ 4,375
2,000 Integrated Device Technology, Inc.*................. 119,750
-----------
124,125
-----------
COLLECTIBLES: 0.3%
3,000 Department 56, Inc.................................. 33,000
-----------
COMMERCIAL BANKS: 0.3%
4,000 Bay View Capital Corp............................... 39,250
-----------
COMMUNICATIONS - SOFTWARE: 0.3%
6,000 Digi International, Inc.*........................... 39,000
-----------
COMPUTERS - INTEGRATED SYSTEMS: 0.6%
2,000 Compaq Computer Corp................................ 51,125
4,002 MTS Systems Corp.................................... 25,012
-----------
76,137
-----------
COMPUTERS - MEMORY DEVICES: 2.9%
1,800 Dataram Corp........................................ 51,750
12,000 Exabyte Corp........................................ 54,000
3,000 Quantum Corp. - DLT & Storage Systems Group*........ 29,062
400 Quantum Corp. - Hard Disk Drive Group*.............. 4,425
16,000 Read-Rite Corp...................................... 35,500
2,500 Seagate Technology, Inc.*........................... 137,500
3,000 Storage Technology Corp.*........................... 32,812
-----------
345,049
-----------

See accompanying Notes to Financial Statements.

5
<PAGE>
THE AL FRANK FUND

COMPUTERS - NETWORKING PRODUCTS: 4.9%
2,150 3Com Corp........................................... $ 123,894
4,400 Act Networks, Inc................................... 67,375
2,500 Adaptec, Inc.*...................................... 56,875
4,000 Bel Fuse, Inc. - Class B............................ 107,000
3,334 Cabletron Systems, Inc.*............................ 84,183
2,500 Standard Microsystems Corp.*........................ 38,437
16,510 Zoom Telephonics, Inc............................... 107,315
-----------
585,079
-----------
COMPUTERS - PERIPHERAL EQUIPMENT: 3.4%
10,690 ESS Technology, Inc................................. 155,005
4,000 MicroTouch Systems, Inc............................. 34,500
3,000 S3, Inc.*........................................... 44,250
18,475 Trident Microsystems, Inc........................... 166,275
-----------
400,030
-----------
COMPUTERS - SERVICES: 1.2%
4,000 Analysts International Corp......................... 37,250
4,000 Computer Horizons Corp.*............................ 53,750
3,000 Policy Management Systems Corp.*.................... 46,125
-----------
137,125
-----------
COMPUTERS - SOFTWARE: 2.5%
8,000 Acclaim Entertainment, Inc.*........................ 11,500
10,000 American Software, Inc. - Class A*.................. 51,250
4,500 Cambridge Tech Partners, Inc.*...................... 39,234
35,000 Netmanage, Inc.*.................................... 156,406
2,500 Software Spectrum, Inc.............................. 43,281
-----------
301,671
-----------
CONSULTING SERVICES: 0.2%
2,500 Right Management Consultants, Inc................... 26,250
-----------
CONSUMER PRODUCTS: 1.5%
5,000 Central Garden & Pet Co. - Class A.................. 44,844
700 DaimlerChrysler Corp................................ 36,444
4,000 Helen of Troy Ltd.*................................. 22,375
25,000 Pentech International, Inc*......................... 32,812
2,200 Sara Lee Corp....................................... 42,487
-----------
178,962
-----------

See accompanying Notes to Financial Statements.

6
<PAGE>
THE AL FRANK FUND

CONSUMER STAPLES: 0.1%
13,000 Imperial Holly Corp................................. $ 17,062
-----------
CONTAINERS: 0.4%
2,000 Aep Industries Inc.................................. 50,500
-----------
DATA PROCESSING: 0.1%
4,000 Analytical Surveys, Inc.*........................... 12,375
-----------
DIAMONDS/PRECIOUS STONES: 0.5%
2,500 De Beers Consolidated Mines Ltd. ADR................ 60,781
-----------
DISPOSABLE MEDICAL PRODUCTS: 0.8%
13,774 Utah Medical Products, Inc.......................... 93,835
-----------
DISTRIBUTION/WHOLESALE: 0.7%
7,000 Allou Health & Beauty Care, Inc..................... 50,312
1,800 Hughes Supply....................................... 35,550
-----------
85,862
-----------
DIVERSIFIED MANUFACTURING: 0.3%
1,800 A.O. Smith Corp..................................... 37,688
-----------
DIVERSIFIED OPERATOR/COMMERCIAL SERVICE: 0.5%
15,300 McRae Industries, Inc............................... 65,025
-----------
ELECTRIC PRODUCTS: 1.5%
3,000 Kulicke and Soffa Industries, Inc.*................. 178,125
-----------
ELECTRONIC COMPONENTS: 2.1%
6,000 InVision Technologies, Inc.*........................ 26,250
8,289 Nam Tai Electronics, Inc............................ 139,359
4,400 Recoton Corp.*...................................... 45,925
2,000 Thomas & Betts Corp................................. 38,250
-----------
249,784
-----------

See accompanying Notes to Financial Statements.

7
<PAGE>
THE AL FRANK FUND

ELECTRONIC COMPONENTS - SEMICONDUCTORS: 8.4%
3,334 Atmel Corp.......................................... $ 122,941
2,700 Electroglas, Inc.................................... 58,050
3,500 International Rectifier Corp.*...................... 196,000
3,000 Lam Research Corp................................... 112,500
2,000 National Semiconductor Corp.*....................... 113,500
1,500 Silicon Valley Group, Inc.*......................... 38,813
4,449 Siliconix, Inc...................................... 300,308
8,000 Trio-Tech International*............................ 52,000
-----------
994,112
-----------
ELECTRONIC MEASURING INSTRUMENTS: 3.0%
8,000 Barringer Technologies, Inc.*....................... 55,000
3,334 Cohu, Inc........................................... 89,914
5,625 Vishay Intertechnology, Inc.*....................... 213,398
-----------
358,312
-----------
ELECTRONIC SECURITY DEVICES: 0.3%
10,000 Vicon Industries, Inc.*............................. 32,500
-----------
ENGINES: 0.2%
800 Cummins Engine Co................................... 21,800
-----------
FINANCE - LEASING: 0.9%
882 Bear Stearns Companies, Inc. (The)*................. 36,713
750 Lehman Brothers Holdings Inc.*...................... 70,922
-----------
107,635
-----------
FINANCIAL GUARANTEE INSURANCE: 0.6%
2,400 Enhance Financial Services Group, Inc............... 34,500
800 MGIC Investment Corp................................ 36,400
-----------
70,900
-----------
FINANCIAL SERVICES: 0.9%
1,500 Associates First Capital Corp. - Class A............ 33,469
7,000 Conseco, Inc........................................ 68,250
-----------
101,719
-----------

See accompanying Notes to Financial Statements.

8
<PAGE>
THE AL FRANK FUND

FOOD - DIVERSIFIED: 0.4%
10,000 CKE Restaurants, Inc................................ $ 30,000
1,700 IMC Global, Inc..................................... 22,100
-----------
52,100
-----------
FOOTWEAR AND RELATED APPAREL: 1.6%
5,000 Maxwell Shoe Co., Inc............................... 49,375
7,500 R. G. Barry Corp.................................... 29,063
1,500 Timberland Co. (The)*............................... 106,219
-----------
184,657
-----------
GAMES & TOYS: 0.2%
2,000 Toys "R" Us, Inc.*.................................. 29,125
-----------
GOLF: 0.8%
2,200 Callaway Golf Co.................................... 35,888
3,600 Coastcast Corp...................................... 63,450
-----------
99,338
-----------
HEALTHCARE - MEDICAL SUPPLIES & PRODUCTS: 0.2%
4,000 Minntech Corp....................................... 27,000
-----------
HEALTHCARE FACILITIES: 0.1%
6,000 Alterra Healthcare Corp............................. 12,000
-----------
HOME FURNISHINGS: 0.4%
4,000 Chromcraft Revington, Inc.*......................... 46,500
-----------
HUMAN RESOURCES: 0.3%
10,000 SOS Staffing Services, Inc.......................... 30,625
-----------
IMAGING PRODUCTS: 0.4%
700 Eastman Kodak Co.................................... 41,650
-----------
INDUSTRIAL AUTOMATION/ROBOT: 0.6%
4,000 Federal-Mogul Corp.................................. 38,250
1,000 Rockwell International Corp......................... 31,500
-----------
69,750
-----------

See accompanying Notes to Financial Statements.

9
<PAGE>
THE AL FRANK FUND

INDUSTRIALS: 0.2%
3,500 Res-Care, Inc.*..................................... $ 18,813
-----------
INSURANCE: 0.9%
750 Aetna, Inc.......................................... 48,141
1,000 Allstate Corp. (The)................................ 22,250
2,000 Unumprovident Corp.................................. 40,125
-----------
110,516
-----------
INSURANCE - BROKERS: 0.3%
2,000 E.W. Blanch Holdings................................ 40,625
-----------
INSURANCE - LIFE/HEALTH: 0.6%
400 National Western Life Insurance Co.................. 28,800
1,500 Torchmark Corp...................................... 37,031
-----------
65,831
-----------
INSURANCE - PROPERTY/CASUALTY: 0.3%
10,000 Frontier Insurance Group, Inc....................... 7,500
1,700 Trenwick Group, Inc................................. 24,756
-----------
32,256
-----------
LEISURE & RECREATION PRODUCTS: 0.5%
2,000 Brunswick Corp...................................... 33,125
3,000 K2, Inc.*........................................... 24,938
-----------
58,063
-----------
MACHINERY - CONSTRUCTION & MINING: 0.3%
3,100 JLG Industries, Inc................................. 36,813
-----------
MANUFACTURING: 0.6%
4,000 Republic Group, Inc................................. 36,000
2,000 Trinity Industries, Inc............................. 37,000
-----------
73,000
-----------
MEDICAL - WHOLESALE DRUG DISTRIBUTION: 0.3%
7,000 Bergen Brunswig Corp................................ 38,500
-----------

See accompanying Notes to Financial Statements.

10
<PAGE>
THE AL FRANK FUND

MEDICAL INFORMATION SYSTEMS: 0.4%
700 PacifiCare Health Systems, Inc.*.................... $ 42,131
-----------
MEDICAL LASER SYSTEMS: 1.3%
20,000 Laserscope.......................................... 30,625
12,000 LCA-Vision Inc...................................... 29,250
2,850 Summit Technology, Inc.*............................ 53,794
1,400 VISX, Inc.*......................................... 39,288
-----------
152,957
-----------
METAL PROCESSORS AND FABRICATION: 0.2%
4,500 SIFCO Industries, Inc............................... 28,125
-----------
METAL PRODUCTS: 0.7%
899 Phelps Dodge Corp.................................. 33,432
4,000 TransTechnology Corp................................ 44,000
-----------
77,432
-----------
OFFICE SUPPLIES: 0.3%
5,000 Office Depot, Inc.*................................. 31,250
-----------
OIL & GAS - DRILLING: 0.5%
2,300 Global Marine, Inc.*................................ 64,831
-----------
OIL - FIELD SERVICES: 0.5%
4,000 Friede Goldman International, Inc.*................. 35,750
1,500 Oceaneering International, Inc.*.................... 28,500
-----------
64,250
-----------
OIL REFINING AND MARKETING: 0.6%
4,000 Giant Industries, Inc............................... 31,500
3,000 Holly Corp.......................................... 35,625
-----------
67,125
-----------
PAPER & FOREST PRODUCTS: 0.2%
1,000 Georgia-Pacific Corp................................ 26,250
-----------

See accompanying Notes to Financial Statements.

11
<PAGE>
THE AL FRANK FUND

PAPER AND RELATED PRODUCTS: 1.0%
800 International Paper Co.............................. $ 23,850
5,650 Pope & Talbot, Inc.................................. 90,400
-----------
114,250
-----------
PHYSICAL THERAPY/REHABILITATION CENTERS: 0.4%
7,000 HEALTHSOUTH Corp.*.................................. 50,313
-----------
PRINTING SERVICES: 0.6%
6,000 Topps Co.*.......................................... 69,000
-----------
REAL ESTATE INVESTMENT TRUSTS - MORTGAGE: 0.3%
4,000 Capstead Mortgage Corp.............................. 33,500
-----------
REAL ESTATE INVESTMENT TRUSTS - OFFICE PROPERTY: 0.2%
3,800 HRPT Properties Trust............................... 26,363
-----------
RETAIL: 0.4%
4,500 A.C. Moore Arts & Crafts, Inc.*..................... 28,688
15,000 HomeBase, Inc.*.................................... 23,438
-----------
52,126
-----------
RETAIL - APPAREL/SHOES: 3.6%
2,000 American Eagle Outfitters, Inc.*.................... 28,000
1,800 AnnTaylor Stores Corp............................... 59,625
2,500 Burlington Coat Factory Warehouse Corp.............. 27,031
9,000 Friedman's, Inc..................................... 44,438
5,000 Gadzooks, Inc.*..................................... 58,047
41,800 One Price Clothing Stores, Inc.*.................... 104,500
2,500 Pacific Sunwear of California, Inc.................. 46,875
8,000 Paul Harris Stores, Inc............................. 21,000
3,000 Syms Corp.*......................................... 11,813
3,000 Urban Outfitters, Inc.*............................. 26,438
-----------
427,767
-----------
RETAIL - DISCOUNT: 0.2%
3,300 Kmart Corp.*........................................ 22,481
-----------

See accompanying Notes to Financial Statements.

12
<PAGE>
THE AL FRANK FUND

RETAIL - ELECTRONICS: 0.1%
4,000 Sytemax, Inc........................................ $ 15,500
-----------
RETAIL - MISCELLANEOUS/DIVERSIFIED: 1.7%
5,000 Action Performance Companies, Inc.*................. 36,250
5,000 Jo-Ann Stores, Inc.................................. 38,125
7,000 OfficeMax, Inc.*.................................... 35,000
4,000 Pep Boys Manny, Moe&Jack (The)...................... 24,000
2,000 Rex Stores Corp.*................................... 46,625
6,230 Tandycrafts, Inc.*.................................. 17,522
-----------
197,522
-----------
RETAIL - RESTAURANTS: 0.2%
3,500 Landry's Seafood Restaurants, Inc................... 29,750
-----------
RETAIL - SPECIALTY: 0.6%
2,000 Barnes & Noble, Inc.*............................... 44,500
2,700 Trans World Entertainment Corp...................... 32,738
-----------
77,238
-----------
RUBBER AND PLASTICS: 2.1%
15,705 Applied Extrusion Technology, Inc................... 82,451
3,000 Cooper Tire & Rubber................................ 33,375
2,000 Goodyear Tire & Rubber Co. (The).................... 40,000
6,000 Lamson & Sessions Co. (The)......................... 91,875
-----------
247,701
-----------
SAVINGS & LOAN/THRIFTS: 1.3%
7,000 Bankatlantic Bancorp, Inc........................... 26,250
2,400 Firstfed Financial Corp............................. 33,900
2,200 Golden State Bancorp, Inc.*......................... 39,600
2,500 PVF Capital Corp.................................... 24,531
4,000 Sovereign BanCorp., Inc............................. 28,125
-----------
152,406
-----------
SAVINGS AND LOAN: 0.4%
1,500 Washington Mutual, Inc.............................. 43,313
-----------

See accompanying Notes to Financial Statements.

13
<PAGE>
THE AL FRANK FUND

SERVICES: 0.2%
4,000 IMCO Recycling, Inc................................. $ 21,750
-----------
STEEL PIPE AND TUBE: 1.2%
4,900 Maverick Tube Corp.*................................ 142,713
-----------
STEEL PRODUCERS: 0.8%
8,000 LTV Corp. (The)..................................... 23,000
8,000 Oregon Steel Mills, Inc............................. 15,500
9,046 Rouge Industries, Inc. - Class A.................... 27,138
3,000 Ryerson Tull, Inc................................... 31,125
-----------
96,763
-----------
SUPER - REGIONAL BANKS: 0.2%
819 First Union Corp.................................... 20,321
-----------
TECHNOLOGY: 0.3%
3,000 THQ, Inc.*.......................................... 36,563
-----------
TELECOMMUNICATIONS - EQUIPMENT: 0.5%
4,000 Davox Corp.......................................... 51,750
2,000 RF Industries, Ltd.*................................ 10,000
-----------
61,750
-----------
TEXTILE - HOME FURNISHINGS: 0.3%
4,000 Mikasa, Inc......................................... 38,750
-----------
TEXTILE APPAREL: 0.4%
3,500 Unifi, Inc.*........................................ 43,313
-----------
TEXTILE PRODUCTS: 0.2%
5,000 Dixie Group, Inc. (The)*............................ 19,375
-----------
TOBACCO: 0.8%
1,000 Philip Morris Companies, Inc........................ 26,563
1,600 R.J. Reynolds Tobacco Holdings, Inc................. 44,700
1,700 UST, Inc............................................ 24,969
-----------
96,232
-----------

See accompanying Notes to Financial Statements.

14
<PAGE>
THE AL FRANK FUND

TOOLS - HAND HELD: 0.5%
7,000 P & F Industries, Inc. - Class A*................... $ 59,500
-----------
TOYS: 0.9%
2,000 J. C. Penney Co., Inc............................... 36,875
3,000 Mattel, Inc......................................... 39,563
1,100 Sears, Roebuck and Co............................... 35,888
-----------
112,326
-----------
TRANSPORTATION: 0.3%
2,300 American Freightways Corp.*......................... 33,350
-----------
TRANSPORTATION - MARINE: 1.1%
2,700 Offshore Logistics, Inc............................. 38,813
434 Sabre Holdings Corp................................. 12,358
2,200 Sea Containers Ltd. - Class A....................... 46,475
1,900 Stolt-Nielsen SA ADR................................ 34,081
-----------
131,727
-----------
TRANSPORTATION - RAIL: 0.7%
9,800 Cannon Express, Inc.*............................... 20,825
9,000 Consolidated Freightways Corp..................... 36,563
1,200 CSX Corp............................................ 25,425
-----------
82,813
-----------
TRUCKING: 0.5%
3,000 Old Dominion Freight Line Inc....................... 29,250
1,900 Yellow Corp.*....................................... 28,025
-----------
57,275
-----------
VITAMINS & NUTRITION PRODUCTS: 0.2%
4,000 Nature's Sunshine Products, Inc..................... 28,000
-----------
WIRELESS EQUIPMENT: 0.6%
6,667 Glenayre Technologies, Inc.*........................ 70,420
-----------
TOTAL COMMON STOCKS (cost $9,932,879)**............. 11,348,568
-----------

See accompanying Notes to Financial Statements.

15
<PAGE>
THE AL FRANK FUND

SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Principal
Amount SHORT-TERM INVESTMENT: 4.8% Market Value
--------------------------------------------------------------------------------

$563,593 Firstar Stellar Treasury Fund (cost $563,592)....... $ 563,592
-----------
TOTAL INVESTMENTS IN SECURITIES
(cost $10,496,472) 100.2%........................... 11,912,160
Liabilities in excess of Other Assets: (0.2)%...... (16,259)
-----------
NET ASSETS: 100.0%.................................. $11,895,901
===========

* Non-income producing security.

** At June 30, 2000, the basis of investments for federal income tax purposes
was the same as their cost for financial reporting purposes. Unrealized
appreciation and depreciation were as follows:

Gross unrealized appreciation....................... $ 2,979,381
Gross unrealized depreciation....................... (1,563,693)
-----------
Net unrealized appreciation......................... $ 1,415,688
===========

See accompanying Notes to Financial Statements.

16
<PAGE>
THE AL FRANK FUND

STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

ASSETS
Investments in securities, at value (cost $10,496,472)........ $11,912,160
Receivables:
Dividends and interest...................................... 8,549
Fund shares sold............................................ 23,617
Deferred organization costs................................... 17,546
Prepaid expenses ............................................. 41,804
-----------
Total assets.......................................... 12,003,676
-----------
LIABILITIES
Payables:
Securities purchased........................................ 94,993
Due to advisor.............................................. 7,882
Administration fees......................................... 2,466
Distribution fees........................................... 2,434
-----------
Total liabilities..................................... 107,775
-----------

NET ASSETS...................................................... $11,895,901
===========
Net asset value, offering and redemption price per share
($11,895,901/736,132 shares outstanding; unlimited number
of shares authorized, par value $.01)......................... $ 16.16
===========
COMPONENTS OF NET ASSETS
Paid-in capital............................................... $ 8,848,710
Accumulated net investment loss............................... (51,293)
Accumulated net realized gain on investments.................. 1,682,796
Net unrealized appreciation on investments.................... 1,415,688
-----------
Net assets............................................ $11,895,901
===========

See accompanying Notes to Financial Statements.

17
<PAGE>
THE AL FRANK FUND

STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

INVESTMENT INCOME
Income
Dividends................................................... $ 52,309
Interest.................................................... 14,341
-----------
Total income............................................. 66,650
-----------
Expenses
Advisory fees............................................... 52,481
Administration fees......................................... 14,959
Distribution fees........................................... 13,120
Transfer agent fees......................................... 12,465
Fund accounting fees........................................ 7,979
Audit fees.................................................. 7,480
Registration expense........................................ 5,984
Deferred organization expense............................... 3,491
Legal fees.................................................. 2,992
Custody fees................................................ 2,493
Reports to shareholders..................................... 1,995
Trustee fees................................................ 1,883
Miscellaneous............................................... 930
Insurance expense........................................... 594
-----------
Total expenses........................................... 128,846
Less: Advisory fees waived............................... (10,903)
-----------
Net expenses............................................. 117,943

NET INVESTMENT LOSS...................................... (51,293)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.............................. 840,237
Net change in unrealized depreciation on investments.......... (64,328)
-----------
Net realized and unrealized gain on investments............. 775,909
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $ 724,616
===========

See accompanying Notes to Financial Statements.

18
<PAGE>
THE AL FRANK FUND

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
June 30, 2000# December 31, 1999
-------------- -----------------
<S> <C> <C>
NET INCREASE (DECREASE) IN ASSETS FROM OPERATIONS
OPERATIONS
Net investment loss........................................... $ (51,293) $ (87,003)
Net realized gain on investments.............................. 840,237 996,478
Net change in unrealized (depreciation) / appreciation
on investments.............................................. (64,328) 2,273,900
----------- -----------
Net increase in net assets resulting from operations..... 724,616 3,183,375
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase / (decrease) in net assets derived from net
change in outstanding shares (a)............................ 3,508,707 (2,562,764)
----------- -----------
Total increase in net assets ............................ 4,233,323 620,611

NET ASSETS
Beginning of period........................................... 7,662,578 7,041,967
----------- -----------
End of period ................................................ $11,895,901 $ 7,662,578
=========== ===========

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

Six Months Year
Ended Ended
June 30, 2000# December 31, 1999
--------------------------- ---------------------------
Shares Paid in Capital Shares Paid in Capital
------ --------------- ------ ---------------
Shares sold .................. 276,572 $ 4,629,783 155,390 $ 1,691,973
Shares redeemed............... (67,197) (1,121,076) (405,050) (4,254,737)
-------- ----------- --------- -----------
Net increase/(decrease)....... 209,375 $ 3,508,707 (249,660) $(2,562,764)
======== =========== ========= ===========
</TABLE>

# Unaudited.

See accompanying Notes to Financial Statements.

19
<PAGE>
THE AL FRANK FUND

FINANCIAL HIGHLIGHTS - FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Six Months Year January 2, 1998*
Ended Ended through
June 30, 2000# December 31, 1999 December 31, 1998
-------------- ----------------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ......................... $ 14.55 $ 9.07 $10.00
------- ------ ------
Income from investment operations:
Net investment loss ........................................ (0.07) (0.21) (0.08)
Net realized and unrealized gain / (loss) on
investments .............................................. 1.68 5.69 (0.85)
------- ------ ------
Total from investment operations ............................. 1.61 5.48 (0.93)
------- ------ ------
Net asset value, end of period ............................... $ 16.16 $14.55 $ 9.07
======= ====== ======
Total return ................................................. 11.07%+ 60.42% (9.30%)+

Ratios/supplemental data:
Net assets, end of period (thousands) ........................ $11,896 $7,663 $7,042

Ratio of expenses to average net assets:
Before expense reimbursement ............................... 2.44%** 3.60% 3.74%**
After expense reimbursement ................................ 2.25%** 2.20% 2.25%**

Ratio of net investment income / (loss) to average
net assets:
After expense reimbursement ................................ 0.97%** (1.32%) (1.28%)**

Portfolio turnover rate ...................................... 14.39%+ 19.00% 5.82%+
</TABLE>

# Unaudited

* Commencement of operations.

** Annualized.

+ Not Annualized.

See accompanying Notes to Financial Statements.

20
<PAGE>
THE AL FRANK FUND

NOTES TO FINANCIAL STATEMENTS AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The Al Frank 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 January 2, 1998. The investment objective of the
Fund is to seek growth of capital. The Fund seeks to achieve its objective by
investing in out of favor and undervalued equity securities.

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 $35,000
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.

21
<PAGE>
THE AL FRANK FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended June 30, 2000, Al Frank Asset Management (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 six months ended June 30, 2000, the Fund incurred $52,481 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 2.25% 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 six months
ended June 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in
the amount of $10,903; no amounts were reimbursed to the Advisor.

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.

22
<PAGE>
THE AL FRANK FUND

NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------

NOTE 4 - DISTRIBUTION COSTS

NOTE 5 - PURCHASES AND SALES OF SECURITIES

For the six months ended June 30, 2000, the cost of purchases and the
proceeds from sales of securities, excluding short-term securities, were
$4,431,328 and $1,421,108, respectively.

23
<PAGE>
ADVISOR

Al Frank Asset Management, Inc.
465 Forest Avenue, Suite I
Laguna Beach, California 92651
www.alfrank.com

DISTRIBUTOR

First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261-E
Phoenix, Arizona 85018

CUSTODIAN

Firstar Institutional Custody Services
425 Walnut Street, M/L 6118
Cincinnati, Ohio 45202

TRANSFER AGENT

American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppauge, New York 11788

LEGAL COUNSEL

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