CAPITAL ADVISORS
GROWTH FUND
Semi-Annual Report
June 30, 2000
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CAPITAL ADVISORS GROWTH FUND
August 15, 2000
Dear Shareholder:
The initial six month period for the Capital Advisors Growth Fund was a
rewarding challenge. Net assets in the Fund grew to a total value of
$15,238,840, and the Fund received its NASDAQ ticker symbol "CIAOX" upon
reaching an asset base of $10 million in March. The Fund's performance, as
measured by net asset value, rose from an initial share price of $20.00, to
$21.85 on June 30, 2000. This represents a total return of 9.25% for the period,
which compares favorably to returns for the S&P 500 index, Dow Jones
Industrials, and NASDAQ Composite Index of -0.43%, -8.44% and -2.46%
respectively for the same 6 month period. Your Fund also compared quite
favorably to the average Large Cap Growth Stock Fund, as measured by Lipper
Analytical Services, Inc., which returned 2.86% for the six months ending June
30, 2000.
Industry groups providing the greatest benefit to the Fund's performance in its
first six months included Pharmaceuticals, Genomics, Media, and
Telecommunications Equipment. These four industry sectors comprised 34.74% of
the Fund's assets as of June 30, 2000.
Of the events that impacted the performance of the Fund most significantly in
its first six months, perhaps none received more media attention than the
announcement that the complete human genome had been successfully mapped. This
announcement served to bring to the attention of the general public a revolution
in the future of medicine that has been building momentum since the early 1990s.
The Fund holds positions in a number of emerging leaders in this exciting
medical revolution, including Human Genome Sciences, Millennium Pharmaceuticals,
and Incyte Genomics, each of which experienced strong stock market performance
in the weeks surrounding the announcement of the completed mapping of the human
genome.
Gemstar International was a strong performer for the Fund in the first half as
the company made significant progress toward the completion of its merger with
T.V. Guide International. Subsequent to this reporting date, the merger of these
two companies was in fact completed, providing a further boost to the stock
price of Gemstar.
The Fund also benefited from its ownership in several companies that supply
components for the worldwide build out of the Internet. Fund investments in this
category include Corning, Inc., Cisco Systems, Sun Microsystems and JDS
Uniphase.
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CAPITAL ADVISORS GROWTH FUND
The common stocks held by the Fund are industry leaders which we believe will
sustain above average earnings growth rates going forward, and which we expect
to be reflected in favorable performance for these companies' common stocks.
The ten largest holdings of the Fund as of June 30, 2000 were as follows:
Security No. Shares Cost/Share Market/Share Portfolio %
-------- ---------- ---------- ------------ -----------
Human Genome Sciences 6,475 86.84 133.37 5.7%
Corning Inc. 3,200 181.79 269.87 5.7%
EMC Corp. 7,500 61.03 76.12 3.8%
Sun Microsystems 6,400 87.08 90.94 3.8%
Gemstar TV Guide 9,000 50.68 61.45 3.6%
SmithKline Beecham 8,000 58.83 65.19 3.4%
America Online 9,875 61.35 52.62 3.4%
J.P. Morgan 3,700 121.46 110.12 2.7%
Intel 3,080 106.47 133.69 2.7%
American Express 7,800 48.42 52.12 2.7%
Of the forty seven common stocks held by the Fund on June 30, 2000, the 10
largest holdings represented 37.5% of the Fund's assets with all but two of
those companies appreciating to levels above cost. The following chart
illustrates the industry diversification of the Fund.
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CAPITAL ADVISORS GROWTH FUND
[PIE CHART]
DIVERSIFIED INDUSTRIAL 1.0%
BUILDING MATERIALS & SUPPLIES 1.4%
CONSUMER NON-DURABLES 1.6%
CONSUMER DURABLES 1.3%
CONSUMER MERCHANDISE/DISTRIBUTION 1.6%
RETAIL STORES 7.5%
ENERGY 1.2%
MEDICAL DEVICE & TECHNOLOGY 6.0%
PHARMACEUTICALS 7.0%
BIOTECHNOLOGY 1.3%
GENOMICS 9.3%
FINANCIAL SERVICES 9.7%
COMPUTER HARDWARE 16.6%
COMPUTER SOFTWARE 3.7%
INTERNET/E-COMMERCE 8.5%
MEDIA 5.1%
TELECOMMUNICATIONS EQUIPMENT & SUPPLIES 13.2%
WIRELESS COMMUNICATIONS 4.2%
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CAPITAL ADVISORS GROWTH FUND
Thank you for the support and confidence you've displayed by investing in this
new mutual fund. We look forward to a long term and prosperous relationship.
/s/ Richard E. Minshall
Richard E. Minshall
Chief Investment Officer,
Capital Advisors Growth Fund
Chairman, Capital Advisors, Inc.
Performance figures of the Fund and Indexes referenced represent past
performance and are not indicative of future performance. Indexes are not
available for direct investment and do not incur expenses. Share value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original investment.
The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip
stocks that are generally the leaders in their industries. The S&P 500 is an
unmanaged capitalization-weighted index of 500 stocks designed to represent the
broad domestic economy. The NASDAQ Composite Index is the index of the NASDAQ
Stock Market, the largest electronic, screen-based market in the world with over
5,100 companies listed.
The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ.
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CAPITAL ADVISORS GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 100.23% Market Value
--------------------------------------------------------------------------------
BIOTECHNOLOGY: 1.33%
1,200 Amgen Inc..................................... $ 84,300
2,400 Immunex Corporation........................... 118,650
-----------
202,950
-----------
BUILDING MATERIALS & SUPPLIES: 1.41%
4,300 Home Depot Inc................................ 214,731
-----------
COMPUTER HARDWARE: 16.61%
3,400 Applied Micro Circuits Corporation............ 335,750
7,500 EMC Corporation............................... 577,031
3,080 Intel Corporation............................. 411,758
2,000 Oracle Corporation............................ 168,125
1,100 PMC-Sierra, Inc............................... 195,456
6,400 Sun Microsystems, Inc......................... 582,000
3,800 Texas Instruments, Incorporated............... 261,013
-----------
2,531,133
-----------
COMPUTER SOFTWARE: 3.73%
4,700 Microsoft Corporation......................... 376,000
1,700 VERITAS Software Corporation.................. 192,127
-----------
568,127
-----------
CONSUMER DURABLE: 1.26%
5,000 Harley-Davidson, Inc.......................... 192,500
-----------
CONSUMER MERCHANDISE / DISTRIBUTION: 1.62%
7,400 Lands' End, Inc............................... 246,975
-----------
CONSUMER NON-DURABLES: 1.62%
4,900 Canandaigua Brands, Inc....................... 247,144
-----------
DIVERSIFIED INDUSTRIAL: 1.04%
3,000 General Electric Company...................... 159,000
-----------
ENERGY: 1.18%
8,000 Vintage Petroleum, Inc........................ 180,500
-----------
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
FINANCIAL SERVICES: 9.68%
7,800 American Express Company...................... $ 406,575
6,650 Citigroup Inc................................. 400,663
3,700 J.P. Morgan & Co., Incorporated............... 407,463
2,500 Marsh & McLennan Companies, Inc............... 261,094
-----------
1,475,794
-----------
GENOMICS: 9.34%
6,475 Human Genome Science.......................... 863,603
2,800 Millennium Pharmaceuticals, Inc............... 313,250
3,000 Incyte Pharmaceuticals, Inc................... 246,563
-----------
1,423,416
-----------
INTERNET / E-COMMERCE: 8.45%
9,875 America Online, Inc........................... 520,906
1,400 Broadcom Corporation - Class A................ 306,513
4,900 Cisco Systems, Inc............................ 311,456
1,200 Yahoo! Inc.................................... 148,650
-----------
1,287,525
-----------
MEDIA: 5.08%
9,000 Gemstar International Group Limited........... 553,078
5,000 Sirius Satellite.............................. 221,563
-----------
774,640
-----------
MEDICAL DEVICES & TECHNOLOGY: 6.02%
2,300 Affymetrix, Inc............................... 379,788
3,200 Johnson & Johnson............................. 326,000
1,700 Waters Corporation............................ 212,181
-----------
917,969
-----------
PHARMACEUTICALS: 7.00%
2,000 Eli Lilly and Company......................... 199,750
7,200 Pfizer, Inc................................... 345,600
8,000 Smithkline Beecham............................ 521,500
-----------
1,066,850
-----------
RETAIL STORES: 7.49%
4,500 Tiffany & Co.................................. 303,750
6,400 Walgreen Co................................... 206,000
5,000 Wal-Mart Stores, Inc.......................... 288,125
10,600 Williams-Sonoma, Inc.......................... 343,838
-----------
1,141,713
-----------
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
SCHEDULE OF INVESTMENTS AT JUNE 30, 2000 (UNAUDITED), CONTINUED
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Shares Market Value
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TELECOMMUNICATIONS EQUIPMENT & SUPPLIES: 13.19%
4,500 Conexant Systems, Inc......................... $ 218,813
3,200 Corning Incorporated.......................... 863,600
2,800 JDS Uniphase Corporation...................... 335,650
7,300 Nokia Corporation ADR Class A................. 364,544
2,600 RF Micro Devices, Inc......................... 227,825
-----------
2,010,431
-----------
WIRELESS COMMUNICATIONS: 4.15%
4,730 QUALCOMM Incorporated......................... 283,800
8,400 Vodafone Airtouch Plc ADR..................... 348,075
-----------
631,875
-----------
Total Common Stocks (Cost $14,720,422)........ 15,273,273
-----------
Principal Amount SHORT-TERM INVESTMENTS: 0.94%
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$143,242 Firstar Stellar Treasury Fund
(Cost $143,242).............................. 143,242
-----------
Total Investments in Securities
(Cost $14,863,664): 101.17%.................. 15,416,513
Liabilties in Excess of Other
Assets: (1.17%).............................. (177,673)
-----------
TOTAL NET ASSETS: 100.00% .................... $15,238,840
===========
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $14,863,664)........................... $15,416,513
Receivables
Dividends and interest.................................. 7,415
Fund shares purchased................................... 374,933
Prepaid expenses .......................................... 3,411
-----------
Total assets......................................... 15,802,272
-----------
LIABILITIES
Payables
Administration fees..................................... 2,426
Due to advisor.......................................... 6,331
Investment securities purchased......................... 539,813
Accrued expenses........................................... 14,862
-----------
Total liabilities.................................... 563,432
-----------
NET ASSETS .................................................. $15,238,840
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
[$15,238,840 / 697,525 shares outstanding; unlimited
number of shares (par value $0.01) authorized]............. $ 21.85
===========
COMPONENTS OF NET ASSETS
Paid-in capital............................................ $15,046,310
Accumlated net investment income........................... (49,090)
Accumulated net realized loss on investments............... (311,229)
Net unrealized appreciation on investments ................ 552,849
-----------
Net assets.............................................. $15,238,840
===========
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 31, 1999* THROUGH JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends (Net of foreign tax on dividends)................. $ 20,653
Interest.................................................... 5,152
---------
Total income.......................................... 25,805
---------
Expenses
Advisory fees (Note 3)...................................... 37,122
Administration fees (Note 3)................................ 14,919
Distribution (Note 4)....................................... 12,374
Professional fees........................................... 11,936
Fund accounting fees........................................ 6,962
Transfer agent fees......................................... 6,465
Custody fees................................................ 3,580
Other ...................................................... 1,806
Trustee fees................................................ 1,951
Shareholder reporting....................................... 1,989
Registration fees........................................... 429
---------
Total expenses........................................ 99,532
Less: advisory fee waiver and absorption (Note 3)..... (24,636)
---------
Net expenses.......................................... 74,895
---------
NET INVESTMENT LOSS .............................. (49,090)
---------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized loss from security transactions................. (311,229)
Net change in unrealized appreciation on investments......... 552,849
---------
Net realized and unrealized gain on investments....... 241,620
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS....................................... $ 192,530
=========
* Commencement of Operations
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
December 31, 1999*
through
June 30, 2000#
--------------------------------------------------------------------------------
NET INCREASE IN ASSETS FROM OPERATIONS
Net investment loss....................................... $ (49,090)
Net realized loss on security transactions ............... (311,229)
Net change in unrealized appreciation on
investments.............................................. 552,849
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ....................................... 192,530
-----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change
in outstanding shares (a)................................ 15,046,310
-----------
TOTAL INCREASE IN NET ASSETS ........................ 15,238,840
-----------
NET ASSETS
Beginning of period........................................ 0
-----------
END OF PERIOD ............................................. $15,238,840
===========
(a) A summary of capital shares transactions is as follows:
December 31, 1999*
through
June 30, 2000#
--------------------------
Shares Paid in Capital
------ ---------------
Shares sold ................................ 708,356 $15,260,536
Shares redeemed............................. (10,831) (214,226)
------- -----------
Net increase................................ 697,525 $15,046,310
======= ===========
* Commencement of operations.
# Unaudited.
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
FINANCIAL HIGHLIGHTS - FOR A CAPITAL SHARE OUTSTANDING
THROUGHOUT THE PERIOD (UNAUDITED)
--------------------------------------------------------------------------------
December 31, 1999*
through
June 30, 2000#
--------------------------------------------------------------------------------
Net asset value, beginning of period...................... $ 20.00
-------
Income from investment operations:
Net investment loss.................................... (0.07)
Net realized and unrealized gain on investments........ 1.92
-------
Total from investment operations.......................... 1.85
-------
Net asset value, end of period............................ $ 21.85
=======
Total return ............................................. 9.25%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands)..................... $15,239
Ratio of expenses to average net assets:
Before expense reimbursement........................... 1.96%**
After expense reimbursement............................ 1.47%**
Ratio of net investment loss to average net assets:
After expense reimbursement............................ (0.96%)**
Portfolio turnover rate................................... 11.66%
* Commencement of operations.
# Unaudited.
+ Not Annualized.
** Annualized.
See Notes to Financial Statements.
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CAPITAL ADVISORS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS AT JUNE 30, 2000 (UNAUDITED)
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NOTE 1 - ORGANIZATION
The Capital Advisors Growth 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 non-diversified, open-end
management investment company. The Fund began operations on December 31, 1999.
The investment objective of the Fund is to seek long-term growth of capital.
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.
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CAPITAL ADVISORS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
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D. USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.
NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the six months ended June 30, 2000, Capital Advisors, Inc. (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 $37,122 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 $24,636; no amounts were reimbursed to the Advisor.
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;
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CAPITAL ADVISORS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
--------------------------------------------------------------------------------
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 $12,374.
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
$15,881,010 and $1,110,880, respectively.
15
