================================================================================
VAN DEVENTER & HOCH
-------------------
AMERICAN VALUE FUND
SEMI-ANNUAL REPORT
e
APRIL 30, 1999
+
+
+
VH
================================================================================
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
April 30, 1999
Dear Shareholders:
The Van Deventer & Hoch American Value Fund rose 8.5 percent in the
six-month period ended April 30, 1999. The S&P 500 Stock Index gained 22.3
percent during the same period.
The Fund's sluggish returns, while still nicely positive, reflected the
portfolio's focus on stocks of mid-sized companies which importantly had
lower-than-average valuation ratios such as price/earnings and price/book. The
S&P Mid-Cap Value Index is a popular market measure which has capitalization and
valuation characteristics most similar to the Fund. For comparison purposes,
that Index posted a return of 7.8 percent during the period under review.
The stocks of mid-sized companies have not been very popular with investors
in recent years. For the most part, the market's leaders have mainly comprised a
comparatively short list of the very largest stocks. With the valuations of some
of these larger issues now at historically lofty levels, the stocks of mid-sized
companies appear to represent some of the best long-term values currently
available to investors. Many of these companies have growth prospects that are
at least as favorable, if not superior, to their larger counterparts. Yet, many
of these smaller stocks currently sell at prices that compare much more
favorably to their underlying assets, revenue and earnings.
In recent weeks, as other investors have perhaps begun to recognize the
favorable valuations of many of these long-ignored issues, the comparative
performance of some of these mid-sized stocks has begun to improve. Of course,
no one knows just how enduring this shift in investor sentiment might be. But,
Van Deventer & Hoch will continue to focus American Value on these reasonably
priced issues that have sound long-term prospects. It is believed that a
portfolio of stocks with more conservative valuation characteristics is the most
likely to achieve shareholders' long-term objectives of both safety and growth
of capital.
Cordially,
/s/ Richard A. Snyders
Richard A. Snyders
President
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
Shares COMMON STOCKS - 79.7% Market Value
- --------------------------------------------------------------------------------
BASIC MATERIALS - 6.1%
11,500 Longview Fiber Co.................................... $ 149,500
-----------
17,500 Louisiana-Pacific Corp............................... 364,219
7,200 Reliance Steel & Aluminum Co......................... 262,350
-----------
776,069
-----------
BUILDING & CONSTRUCTION - 1.5%
6,000 Sherwin-Williams Co.................................. 186,750
-----------
CAPITAL GOODS - 4.8%
2,700 Boeing Co............................................ 109,687
6,500 Crown Cork & Seal Co., Inc........................... 211,250
3,000 Fluor Corp........................................... 100,125
7,000 Tenneco, Inc......................................... 189,000
-----------
610,062
-----------
CHEMICALS - 5.4%
5,200 Air Products & Chemicals, Inc........................ 244,400
4,800 Lubrizol Corp........................................ 132,900
6,000 Praxair, Inc......................................... 310,500
-----------
687,800
-----------
CONSUMER CYCLICAL - 7.8%
4,600 Dillard's, Inc....................................... 127,363
7,500 Fleetwood Enterprises, Inc........................... 185,156
7,000 Genuine Parts Co..................................... 210,000
4,000 Goodyear Tire & Rubber Co............................ 228,750
6,500 ITT Industries, Inc.................................. 234,000
-----------
985,269
-----------
CONSUMER STAPLES - 7.2%
7,000 Albertson's, Inc..................................... 360,500
9,500 ConAgra, Inc......................................... 236,313
5,000 Kimberly-Clark Corp.................................. 306,563
-----------
903,376
-----------
2
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
ENERGY - 14.8%
2,400 Atlantic Richfield Co. (ARCO)........................ 201,450
3,500 Burlington Resources, Inc............................ 161,219
10,000 Enron Oil & Gas Co................................... 190,000
7,600 Halliburton Co....................................... 323,950
9,500 Occidental Petroleum Corp............................ 191,781
5,600 Phillips Petroleum Co................................ 283,500
5,000 Royal Dutch Petroleum Co............................. 293,437
5,000 Texas Pacific Land Trust............................. 228,750
-----------
1,874,087
-----------
FINANCIAL - 16.6%
10,000 Allstate Corp........................................ 363,750
4,697 Banc One Corp........................................ 277,123
3,168 BankAmerica Corp..................................... 228,096
5,000 Federal National Mortgage Assoc...................... 354,687
3,600 MBIA, Inc............................................ 242,100
2,400 Metris Companies, Inc................................ 146,700
4,000 UNUM Corp............................................ 218,500
6,720 Washington Mutual, Inc............................... 276,360
-----------
2,107,316
-----------
REAL ESTATE INVESTMENT TRUST - 1.9%
9,674 BRE Properties, Inc., Class A........................ 240,641
-----------
TECHNOLOGY - 5.7%
6,000 Electronic Data Systems Corp......................... 322,500
5,000 Hewlett-Packard Co................................... 394,375
-----------
716,875
-----------
TELECOMMUNICATIONS - 2.3%
4,400 GTE Corp............................................. 294,525
-----------
TRANSPORTATION SERVICES - 4.7%
9,000 Norfolk Southern Corp................................ 294,187
5,000 Union Pacific Corp................................... 300,000
-----------
594,187
-----------
3
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
Shares Market Value
- --------------------------------------------------------------------------------
UTILITIES - 0.9%
4,000 American Water Works Co.............................. $ 113,750
-----------
TOTAL COMMON STOCKS (Cost $7,895,348)................ 10,090,707
-----------
Principal
Amount SHORT TERM INVESTMENTS - 14.2%
- --------------------------------------------------------------------------------
MONEY MARKET - 0.0%
$ 13 UMB Bank Money Market Fiduciary (Cost $13)........... 13
-----------
U.S. TREASURY - 3.9%
489,000 U.S. Treasury Bills, due 05/20/99 (Cost $487,812).... 487,812
-----------
COMMERCIAL PAPER - 10.3%
375,800 American Express Credit Corp., 4.70% due 05/05/99.... 375,555
407,200 Ford Motor Credit Co., 4.78% due 05/18/99............ 406,227
517,900 General Electric Capital Corp., 4.77% due 05/10/99... 517,214
-----------
Total Commercial Paper (Cost $1,298,996)............. 1,298,996
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $1,786,821)....... 1,786,821
-----------
TOTAL INVESTMENTS - 93.9% (Cost $9,682,169).......... 11,877,528
OTHER ASSETS IN EXCESS OF LIABILITIES - 6.1%......... 777,294
-----------
NET ASSETS - 100.0%.................................. $12,654,822
===========
See accompanying Notes to Financial Statements.
4
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $9,682,169) ........................... $11,877,528
Receivables:
Receivable for securities sold ..................... 760,173
Interest and dividends ............................. 12,435
Deferred organization .................................... 36,539
Other assets ............................................. 16,273
-----------
Total Assets ....................................... 12,702,948
-----------
LIABILITIES
Due to advisor ........................................... 7,432
Accrued expenses ......................................... 40,694
-----------
Total Liabilities .................................. 48,126
-----------
NET ASSETS ..................................................... $12,654,822
===========
COMPOSITION OF NET ASSETS
Paid-in capital ................................................ 9,897,024
Undistributed net investment income ............................ 36,173
Accumulated net realized gain on investment transactions ....... 526,266
Net unrealized appreciation of investments ..................... 2,195,359
-----------
Net assets ............................................... $12,654,822
===========
Shares outstanding (unlimited number of shares authorized) ..... 903,095
Net asset value, offering and redemption price per share ....... $ 14.01
===========
See accompanying Notes to Financial Statements.
5
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
STATEMENT OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME (net of withholding taxes of $1,211)
Dividend income .................................... $ 111,739
Interest income .................................... 46,797
-----------
Total investment income .................................. 158,536
EXPENSES
Advisory fees ...................................... 42,374
Distribution fees .................................. 15,134
Administration fees ................................ 14,818
Accounting fees .................................... 14,186
Amortization of organization cost .................. 10,662
Transfer agent fees ................................ 10,555
Audit fees ......................................... 9,238
Legal fees ......................................... 9,021
Registration fees .................................. 8,799
Shareholder reporting fees ......................... 6,260
Trustee fees ....................................... 1,290
Miscellaneous ...................................... 1,033
-----------
Total expenses ........................................... 143,370
Fees waived and expenses reimbursed ...................... (69,128)
-----------
Net expenses ............................................. 74,242
-----------
Net investment income ........................ 84,294
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments ......................... 526,266
Change in net unrealized appreciation on investments ..... 390,141
-----------
Net realized and unrealized gain on investments .......... 916,407
-----------
Net increase in net assets resulting from operations ........... $ 1,000,701
===========
See accompanying Notes to Financial Statements.
6
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months May 1, 1998*
Ended to
April 30, 1999# October 31, 1998
--------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income ......................... $ 84,294 $ 95,565
Net realized gain on investments .............. 526,266 655,081
Change in net unrealized appreciation/
depreciation on investments ................. 390,141 (1,735,604)
------------ ------------
INCREASE/DECREASE IN NET ASSETS FROM
OPERATIONS ............................ 1,000,701 (984,958)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ......................... (143,686) --
Net realized gain on investment transactions .. (655,081) --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ..... (798,767) --
============ ============
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................... 578,564 1,464,418
Dividend reinvestments ........................ 797,718 --
Cost of shares redeemed ....................... (1,946,983) (892,848)
------------ ------------
NET INCREASE/DECREASE FROM SHARE
TRANSACTIONS .......................... (570,701) 571,570
============ ============
Total decrease in net assets .................. (368,767) (413,388)
NET ASSETS
Beginning of period ..................... 13,023,589 13,436,977
------------ ------------
END OF PERIOD ........................... $ 12,654,822 $ 13,023,589
============ ============
CAPITAL SHARE TRANSACTIONS
Shares sold ................................... 43,832 109,676
Shares reinvested ............................. 61,410 --
Shares redeemed ............................... (145,620) (64,289)
------------ ------------
Net share activity ...................... (40,378) 45,387
============ ============
*Commencement of the Fund.
#Unaudited
See accompanying Notes to Financial Statements.
7
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
Six Months May 1, 1998*
Ended through
April 30, 1999# October 31, 1998
--------------- ----------------
Net asset value, beginning.................... $13.80 $14.96
------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................... 0.10 0.10
Net realized and unrealized gain/loss
on investments.............................. 1.00 (1.26)
------ ------
Total from investment operations........ 1.10 (1.16)
------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income.......... (0.16) --
Distributions from capital gains.............. (0.73) --
------ ------
Total distributions..................... (0.89) --
------ ------
Net asset value, ending....................... $14.01 $13.80
====== ======
Total return**................................ 8.49% (7.75%)
Net assets, ending (000 omitted).............. $12,655 $13,024
RATIOS/SUPPLEMENTAL DATA
Ratio of expenses to average net assets+...... 1.23% 1.05%
Ratio of expenses to average net assets
before reimbursements+...................... 2.37% 2.57%
Ratio of net investment income to average
net assets+................................. 1.39% 1.53%
Portfolio turnover rate....................... 7.31% 19.88%
*Commencement of the Fund.
**Not Annualized.
+Annualized.
#Unaudited.
See accompanying Notes to Financial Statements.
8
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Van Deventer & Hoch American Value Fund (the "Fund") is a series of the Advisors
Series Trust (the "Trust"). The Trust was organized as a business trust under
the laws of the Commonwealth of Delaware on October 3, 1996. The Trust presently
consists of thirteen separate series. The Fund is a diversified fund, as such
term is defined in the Investment Company Act of 1940, as amended (the "1940
Act").
The Fund commenced operations on May 1, 1998 pursuant to a tax free
reorganization whereby substantially all of the assets of the Chase Vista
American Value Fund were transferred to the Van Deventer & Hoch American Value
Fund.
The Van Deventer & Hoch American Value Fund (the "Fund") is a mutual fund that
seeks to maximize total return, consisting of capital appreciation (both
realized and unrealized) and income, by investing primarily in the equity
securities of well-established U.S. companies (i.e. companies with at least a
five-year operating history) which, in the opinion of the Fund's advisor, are
undervalued by the market.
Effective May 7, 1999, Van Deventer & Hoch American Value Fund, a series of the
Advisors Series Trust, was converted into the American Value Fund, a series of
the Allegiance Investment Trust in a tax free reorganization. Substantially all
of the assets of the Van Deventer & Hoch American Value Fund were transferred
into the new trust.
The Allegiance Investment Trust is an open-ended management investment company
established under Delaware law (under its predecessor name - Van Deventer & Hoch
Funds) as a Delaware business trust on October 15, 1997. Its name was changed to
Allegiance Investment Trust on September 2, 1998.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
SECURITY VALUATION
The Fund's investments are carried at fair value. Equity securities listed on an
exchange or quoted on a National Market System are valued at the last sale
price. Other equity securities are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily available,
if any, are valued following procedures approved by the Board of Trustees. Fixed
income securities are valued on the basis of valuations received from a pricing
service, the use of which has been approved by the board of trustees. Short-term
obligations are valued at amortized cost, which approximates market value.
ORGANIZATION COSTS
Costs incurred by the Fund in connection with its organization, registration and
the initial public offering of shares have been deferred and will be amortized
over 5 years.
9
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
It is the Fund's policy to comply with the provisions 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.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income will be declared and paid annually.
Distributions of net realized gains, if any, will be declared at least annually.
Distributions to shareholders are recorded on the ex-dividend date.
SECURITY TRANSACTIONS
Investment transactions are accounted for on the trade date (the date the order
to buy or sell is executed). Securities gains and losses are calculated on the
identified cost basis. Interest income is accrued as earned.
Dividend income is recorded on the ex-dividend date.
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 revenue and expenses during the
reporting period. Actual results could differ from those estimates and
assumptions.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Van Deventer & Hoch (the "Advisor") acts as the Investment Advisor to the Fund.
As Investment Advisor, Van Deventer & Hoch supervises the investments of the
Fund and for such services is paid a fee. The fee is computed daily and paid
monthly at an annual rate equal to 0.70% of the Fund's average daily net assets.
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
1.05% of average net assets (the "expense cap") through December 31, 1998. The
Advisor has agreed to an expense limitation of 1.32% for the calendar year
ending December 31, 1999. Any such reductions made by the Advisor in the 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 years (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 and seventh year
of the Fund's operations. Any such reimbursement is also contingent upon Board
of Trustees review and approval at the time
10
<PAGE>
VAN DEVENTER & HOCH AMERICAN VALUE FUND
NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED
- --------------------------------------------------------------------------------
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
April 30, 1999, the Advisor reduced its fees and absorbed Fund expenses in the
amount of $69,128; no amounts were reimbursed to the Advisor.
ADMINISTRATION FEES
Pursuant to an Administration Agreement, Investment Company Administration,
L.L.C. (the "Administrator") provides certain administration services to the
Fund. In consideration of the services provided by the Administrator, the
Administrator receives from the Fund a fee computed daily and paid monthly at an
annual rate equal to 0.10% of the Fund's average daily net assets (with an
annual minimum of $40,000), on an annualized basis for the Fund's then-current
fiscal year.
DISTRIBUTION FEES
The Fund has adopted a Distribution Plan (the "Distribution Plan") in accordance
with Rule 12b-1 under the 1940 Act. The Distribution Plan provides that the Fund
shall pay distribution fees, including payments to the Distributor, at annual
rates not to exceed 0.25% of the average daily net assets of the Fund.
Distribution fees were waived for the six months ended April 30, 1999.
SHAREHOLDER SERVICING FEES
The Trust has entered into shareholder servicing agreements with certain
shareholder servicing agents (including the Advisor). These agents have agreed
to perform specified services to their customers who beneficially own shares of
the Fund for a fee of up to .25% of the average daily net assets of the Fund
held by investors for whom the agent maintains a servicing relationship. No
amounts were accrued or paid under the plan for the six months ended April 30,
1999.
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the six months ended April 30, 1999 is summarized
below:
Purchases $ 738,050
Sales 1,745,772
At April 30, 1999, gross unrealized appreciation and depreciation of
investments, based on cost for Federal income tax purposes of $9,682,169 were as
follows:
Appreciation $2,524,273
Depreciation 328,914
----------
Net appreciation on investments $2,195,359
11
<PAGE>
================================================================================
ADVISER
Van Deventer & Hoch
800 North Brand Blvd., Suite 300
Glendale, CA 91203
+
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road, Suite 261E
Phoenix, AZ 85018
+
CUSTODIAN
United Missouri Bank, N.A.
928 Grand Blvd.
Kansas City, MO 64106
+
TRANSFER AGENT
National Financial Data Services
330 West 9th Street
Kansas City, MO 64105
+
AUDITORS
McGladrey & Pullen
555 Fifth Avenue, 8th Floor
New York, NY 10017-2416
+
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker, LLP
345 California Street, 29th Floor
San Francisco, CA 94104
This report is intended for the shareholders of the Fund and
may not be used as sales literature unless preceded or
accompanied by a current prospectus.
Past performance results shown in this report should not be
considered a representation of future performance. Share
price and returns will fluctuate so that shares, when
redeemed, may be worth more or less than their original
cost. Statements and other information herein are dated and
are subject to change.
================================================================================
