<PAGE>
[GRAPHIC]
Box above fund name showing
newspapers such as The Wall
Street Journal, Investor's Daily,
Barron's and Crain's New York Business.
Also shown are share certificates
and a pocket watch.
1993 Smith Barney Shearson
ANNUAL The
REPORT Advisors
Fund L.P.
........................................
DECEMBER 31, 1993
NOTE: THE ADVISORS FUND L.P. HAS CLAIMED THE
EXEMPTION PROVIDED BY COMMODITY EXCHANGE
ACT REGULATION SECTION4.12(B)(2)(I).
[LOGO]
<PAGE>
The Advisors Fund L.P.
DEAR FELLOW SHAREHOLDER:
The Advisors Fund, L.P. (the "Fund") finished the fiscal year
ended December 31, 1993 up 4.81% versus the Standard & Poor's
500 Composite Stock Price Index ("S&P 500") return of 10.12%.
During the past year, the portfolio managers overall took too cautious
an approach to the market, and the resulting short positions effected
positive returns gained from invested (long) positions.
<TABLE>
<CAPTION>
4TH QTR 1 YEAR 2 YEARS 3 YEARS
INCEPTION
9/30/93 12/31/92 12/31/91 12/31/90 6/28/90
TO TO TO TO TO
12/31/93 12/31/93 12/31/93* 12/31/93*
12/31/93*
---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
<C>
-------------------------------------------------------------------------------------
The Advisors Fund L.P.+ (2.07)% 4.81% 7.75% 16.81%
11.76%
S&P 500** 2.38% 10.12% 8.86% 15.61%
11.25%
Ardsley Advisory Partners (3.28) 9.97 7.84 22.95 18.65
Hellman, Jordan Management, Co., Inc. (1.99) (11.02) (2.86) 15.16
9.29
Mark Asset Management Corporation 4.06 22.67 16.68 26.71
15.97
Woodward & Associates Inc. (10.12) (5.39) 9.24 N/A
N/A
--------------------------------------------------------------------
<FN>
*Returns for the periods greater than one year are annualized.
+Class A Shares. See page 3 for additional information.
**Results include reinvestment of all distributions.
</TABLE>
In the beginning months of 1993, the portfolio managers of the Fund believed
that the new U.S. administration's plans for economic stimulation and universal
health care reform would force interest rates higher and positioned the assets
of the Fund accordingly. In fact, interest rates moved lower and the Fund's
performance was effected accordingly. Although there were wide swings in
individual stocks and sectors of the market, both domestically and
internationally, the declines were not in a straight trading pattern. The
momentum of the market pushed all indices higher. During the first six months of
1993, the Fund had a short position in bonds, which negated most of the long
equity profits. Then, in the remaining half of the
1
<PAGE>
year, the Fund in total had sizable bets in individual stocks, both long and
short, that failed to materialize. Throughout the year, the Fund was adversely
affected by the lack of volatility in the broad market as many of the trading
hedges failed to capture any real gains.
In the fourth quarter the Fund posted a loss of 2.07%1 versus a gain of 2.38%
for the S&P 500. Mark Asset Management Corporation ("MAMC") was the only manager
to post a positive return for the fourth quarter. MAMC was the leading manager
for the quarter and the year returning 4.06% and 22.67% for the respective time
periods. MAMC's diversified portfolio benefited from the strong international
move in 1993 with global franchise growth stocks performing well.
Ardsley Advisory Partners, on the other hand, found it difficult to maintain
momentum as selective growth stock investments, especially in the emerging
markets, did not materialize. Both the eclectic mix of stocks chosen by Woodward
& Associates Inc. and the market timing of Hellman, Jordan Management Co., Inc.
resulted in significant losses for the Fund.
The Fund historically has had strong fourth quarter results, but this year the
overly conservative posture of the Fund coupled with defensive hedges negated
any positive gains. We are not pleased with these performance results nor are
the portfolio managers of the Fund. As you know, the portfolio managers receive
reduced fees if the Fund underperforms the S&P 500 by a meaningful amount. This
was the case in 1993 and strong outperformance in 1994 is necessary for the
portfolio managers to receive an increase in fees. We view 1994 as a potentially
positive investment environment with continued strong cash flows into equities
and fixed income, a pick up in the economy with solid growth prospects and
modest inflationary pressures. The Advisors Fund has outperformed the S&P 500 in
the past and our goal is to get back to these favorable comparisons in 1994.
2
<PAGE>
We thank you for your support throughout 1993 as we look forward to continuing
to assist you in meeting your investment goals in 1994.
Sincerely,
Heath B. McLendon
Individual General Partner
February 4, 1994
1As of June 1, 1993, existing shares of the Fund were designated as Class A
shares subject to a maximum 5% front-end sales charge. Prior to June 1, 1993,
shares of the Fund now designated as Class A were subject to a maximum
front-end sales charge of 5.5%. The Fund's average annual total returns,
without the deduction of the applicable front-end sales charge, for the
one-year period ended December 31, 1993, as well as from commencement of
operations (June 28, 1990) to December 31, 1993, were 4.81% and 11.76%,
respectively. All average annual total return figures shown reflect
reinvestment of dividends and capital gains.
The Fund began offering Class B shares, subject to a maximum contingent
deferred sales charge (CDSC) of 5% on June 1, 1993. The Fund ceased offering
Class B shares to the public on September 16, 1993. The Fund's cumulative total
return for Class B shares of the Fund without the deduction of the maximum CDSC
of 5% for the period from June 1, 1993 ended December 31, 1993 was 2.92%.
Assuming the deduction of the maximum 5% CDSC, this figure would have been
(2.08)%. Please consult the Notes to Financial Statements for complete
information on fees and expenses.
NOTE: All figures cited here and on the following pages represent past
performance and are not necessarily indicative of future results. Investment
return and principal value of an investment will fluctuate so that an
investor's shares upon redemption may be worth more or less than original cost.
3
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
HISTORICAL PERFORMANCE -- CLASS A SHARES
<TABLE>
<CAPTION>
Year Ended Net Asset Value Total
December 31, Beginning Ending Return+
<S> <C> <C> <C>
------------------------------------------------------
6/28/90 - 12/31/90 $18.90 $17.51 (7.35)%
------------------------------------------------------
1991 17.51 24.04 37.29
------------------------------------------------------
1992 24.04 26.63 10.77
------------------------------------------------------
1993 26.63 27.91 4.81
------------------------------------------------------
Cumulative Total Return from 6/28/90
through 12/31/93 47.67%
------------------------------------------------------
<FN>
+As of June 1, 1993, existing shares of the Fund were designated as Class A
shares subject to a maximum 5.0% front-end sales charge. Prior to June 1, 1993,
shares of the Fund now designated as Class A were subject to a maximum
front-end sales charge of 5.5%. All average annual total return figures shown
reflect reinvestment of dividends and capital gains. All figures cited here and
on the following pages represent past performance and are not necessarily
indicative of future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption may be
worth more or less than original cost.
</TABLE>
- --------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN -- CLASS A SHARES**
<TABLE>
<CAPTION>
Without Sales Charge With Sales Charge
<S> <C> <C>
- ---------------------------------------------------------------------------
Year Ended 12/31/93 4.81% (0.43 )%
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Inception 6/28/90 through 12/31/93 11.76% 10.14 %
- ---------------------------------------------------------------------------
<FN>
**All average annual total return figures shown assume the deduction of the
maximum 5.0% sales charge at the time of purchase. The Fund commenced
operations on June 28, 1990.
NOTE: As of June 1, 1993, existing shares of the Fund were designated as Class
A -- subject to a maximum 5.0% front-end sales charge and an annual service
fee of 0.25% of average daily net assets attributable to that class. The
Fund's average annual rates of return would have been lower had the service
fee been in effect prior to June 1, 1993.
</TABLE>
4
<PAGE>
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $25,000 in The Advisor's Fund
Class B shares on June 1, 1993 through December 31, 1993 as compared with the
growth of a $25,000 investment in the Standard Poor's 500 Composite Stock Index.
The plot points used to draw the line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $25,000 GROWTH OF $25,000
INVESTED IN CLASS B SHARES INVESTMENT IN THE STANDARD &
POOR'S
MONTH ENDED OF THE FUND 500 COMPOSITE STOCK INDEX
<S> <C> <C>
06/28/90 $23,750 --
06/90 23,813 $25,000
07/90 23,247 24,920
09/90 19,942 21,569
12/90 22,003 23,499
03/91 26,904 26,907
06/91 25,748 26,843
09/91 28,211 28,275
12/91 30,209 30,643
03/92 29,380 29,870
06/92 27,872 39,437
09/92 28,877 31,397
12/92 33,464 32,974
03/93 33,187 34,412
06/93 33,665 34,577
09/93 35,813 35,467
12/93 35,072 36,311
</TABLE>
+ Hypothetical illustration of $25,000 invested in Class A shares on June 28,
1990 assuming deduction of the maximum 5.0% sales charge at the time of
investment and reinvestment of dividends and capital gains at net asset value
through December 31, 1993.
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") is an index
composed of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and over-the-counter market. It is useful in
depicting the general movement of the stock market, but because it is
unmanaged, the S&P 500 is not subject to the same management and trading
expenses of a mutual fund. Index information is available at month-end only;
therefore, the closest month-end to inception date of the Fund has been used.
NOTE: All figures cited here and on the following pages represent past
performance of the Fund and are not indicative of future results of Class A
shares.
5
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
HISTORICAL PERFORMANCE -- CLASS B SHARES
<TABLE>
<CAPTION>
Year Ended Net Asset Value Total
December 31, Beginning Ending Return*
<S> <C> <C> <C>
-----------------------------------------------------
6/1/93 - 12/31/93 $27.01 $27.80 2.92%
-----------------------------------------------------
Cumulative Total Return from 6/1/93
through 12/31/93 2.92%
-----------------------------------------------------
<FN>
*Figures do not assume deduction of the contingent deferred sales charge
("CDSC").
</TABLE>
- --------------------------------------------------------------------
CUMULATIVE TOTAL RETURN -- CLASS B SHARES**
<TABLE>
<CAPTION>
Without CDSC With CDSC
<S> <C> <C>
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Inception 6/1/93 through 12/31/93 2.92% (2.08)%
- ---------------------------------------------------------------------------
<FN>
**All cumulative total return figures shown assume the deduction of the maximum
5.0% CDSC.
NOTE: The Fund began offering Class B shares on June 1, 1993 subject to a
maximum 5.0% CDSC and annual service and distribution fees of 0.25% and 0.75%,
respectively, of the value of average daily net assets attributable to that
class. As of September 16, 1993 the Fund ceased all sales of Class B shares.
</TABLE>
6
<PAGE>
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in Investment Funds
Government Securities Fund's Class B shares on March 20, 1984 and the growth of
the original shares, through June 30, 1993. The line graph demonstrates that
since inception, the hypothetical investment of $10,000 would have grown to
$13,262 including the value of reinvested dividends and capital gains of
approximately $23,372. The plot points used to draw the line graph were as
follows:
<TABLE>
<CAPTION>
GROWTH OF $25,000 GROWTH OF $25,000
INVESTED IN CLASS B SHARES INVESTMENT IN THE STANDARD &
POOR'S
MONTH ENDED OF THE FUND 500 COMPOSITE STOCK INDEX
<S> <C> <C>
05/31/93 -- $25,000
06/01/93 $25,000 --
06/93 24,787 25,073
09/93 26,324 25,719
12/93 24,481 26,331
</TABLE>
+ Hypothetical illustration of $25,000 invested in Class B shares on June 1,
1993 assuming deduction of the maximum 5.0% CDSC at the time of redemption and
reinvestment of dividends and capital gains at net asset value through
December 31, 1993.
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") Stock Index
is an index composed of 500 widely held common stocks listed on the New York
Stock Exchange, American Stock Exchange and over-the-counter market. It is
useful in depicting the general movement of the stock market, but because it
is unmanaged, the S&P 500 is not subject to the same management and trading
expenses of a mutual fund.
NOTE: All figures cited here and on the following pages represent past
performance of the Fund and are not indicative of future results of Class B
shares.
* Value does not assume deduction of applicable CDSC.
** Value assumes deduction of applicable CDSC (assuming redemption on December
31, 1993).
7
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS DECEMBER 31, 1993
SUMMARY OF PORTFOLIO OF INVESTMENTS
<TABLE>
<S> <C> <C> <C> <C>
COMMON STOCKS
Domestic 67.4% $ 88,042,758
Foreign 13.4 17,458,324
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Total Common Stocks 80.8% $105,501,082
Warrants 0.0 26,209
Options Purchased 2.2 2,927,102
U.S. Treasury Obligations 18.4 24,046,021
Units 0.0 14,463
Certificates of Deposit 2.7 3,474,300
- ----------------------------------------------------------------------
Total Investments 104.1 135,989,177
- ----------------------------------------------------------------------
Other Assets and Liabilities (Net) 8.2 10,684,633
Futures Contracts (9.5) (12,374,175)
Put Options Written (0.0) (2,500)
Investments Sold Short (2.8) (3,722,312)
- ----------------------------------------------------------------------
Net Assets 100.0% $130,574,823
- ----------------------------------------------------------------------
</TABLE>
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Percentage of
Issuer Net Assets
<S> <C>
- --------------------------------------------------------------------
U.S. TREASURY BILLS, 3.20% DUE 04/07/94 12.9%
U.S. TREASURY BILLS, 3.25% DUE 01/27/94 4.9
MICROSOFT CORPORATION 3.1
GRUPO TELEVISA ADR 2.4
ORACLE SYSTEMS CORPORATION 2.0
FLEET FINANCIAL CORPORATION, INC. NEW 1.8
COCA-COLA COMPANY 1.6
LENNAR CORPORATION 1.6
VODAPHONE GROUP PLC, ADR 1.5
MCDONALD'S CORPORATION 1.5
</TABLE>
8
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
<C> <S> <C>
--------------------------------------------------------------------------------
COMMON STOCKS -- DOMESTIC -- 67.4%
COMPUTER SOFTWARE -- 9.0%
15,000 BMC Software Inc.+ $ 720,000
12,600 Broadway & Seymour Inc.+ 126,000
15,971 Electronic Arts+ 479,130
25,000 Gupta Corporation+ 490,625
2,875 Informix Corporation+ 61,094
3,826 Lotus Development Corporation+ 210,430
50,000 Microprose+ 450,000
50,657 Microsoft Corporation+ 4,084,221
90,116 Oracle Systems Corporation+ 2,590,835
40,000 Ross Systems, Inc.+ 260,000
35,818 Santa Cruz Operation Inc.+ 241,771
20,000 Sierra On-Line Inc.+ 367,500
19,691 Sybase Inc.+ 827,022
50,000 Symantec Corporation+ 912,500
--------------------------------------------------------------------------------
11,821,128
--------------------------------------------------------------------------------
COMMUNICATIONS -- 8.8%
62,133 Associated Communications Corporation,
Class B+ 1,770,791
1,464 Cellular Communications, Inc.+ 32,940
12,001 Cellular Communications, International+ 258,021
30,000 Cellular, Inc.+ 525,000
47,706 Comcast Corporation, Class A, Special 1,717,416
6,491 Comcast Corporation, Class A 236,110
30,000 Compression Labs, Inc.+ 367,500
15,000 DSC Communications Corporation+ 922,500
15,891 General Instrument Corporation+ 891,882
55,000 Intelcom Group Inc.+ 962,500
20,000 MFS Communication Company, Inc.+ 650,000
135,000 Mitel Corporation+ 793,125
21,883 Pactel Corporation+ 544,340
7,101 Starsight Telecast Inc.+ 131,369
58,419 Tele-Communications Inc., Class A+ 1,767,175
--------------------------------------------------------------------------------
11,570,669
--------------------------------------------------------------------------------
FINANCIAL SERVICES -- 8.0%
35,000 Albank Financial Corporation+ 686,875
18,216 Citicorp+ 669,438
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
25,000 First Interstate Bancorp $ 1,603,125
70,000 Fleet Financial Group, Inc. New 2,336,250
55,600 Life Partners Group, Inc. 1,118,950
45,032 Merrill Lynch & Company, Inc. 1,891,344
35,000 ONBANCorp, Inc. 1,229,375
6,950 Wells Fargo & Company 899,156
--------------------------------------------------------------------------------
10,434,513
--------------------------------------------------------------------------------
HEALTH CARE -- 6.8%
30,000 Alpha Beta Technology Inc.+ 967,500
15,000 ALZA, Corporation+ 420,000
5,300 Amrion, Inc.+ 40,413
40,000 CellPro Inc.+ 1,390,000
65,000 Centocor Inc.+ 771,875
15,000 Collagen Corporation+ 416,250
40,000 Cortech, Inc.+ 550,000
5,333 Cytel Corporation+ 25,332
30,000 Cytotherapeutics, Inc.+ 367,500
80,000 Liposome Company+ 530,000
28,500 Medical Care America, Inc.+ 651,938
30,000 Merck and Company, Inc. 1,031,250
40,000 Perseptive Biosystems Inc.+ 1,150,000
40,000 Recognition International Inc.+ 600,000
--------------------------------------------------------------------------------
8,912,058
--------------------------------------------------------------------------------
COMPUTERS -- 4.5%
30,000 Auspex Systems, Inc.+ 285,000
25,000 Chipcom Corporation+ 1,262,500
20,000 Cisco Systems, Inc.+ 1,292,500
8,544 Intel Corporation 529,728
8,950 International Business Machines 505,675
4,136 Motorola Inc. 382,063
40,000 Seagate Technology+ 950,000
20,174 Sequent Computer Systems Inc.+ 307,653
10,336 Wang Labs, Inc., New+** 175,712
15,213 Western Digital Corporation+ 138,819
--------------------------------------------------------------------------------
5,829,650
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
RESTAURANTS AND HOTELS -- 3.9%
1,460 Hilton Hotels Corporation $ 88,695
10,582 Hospitality Franchise Systems+ 562,169
87,964 Host Marriott Corporation 802,671
5,864 La Quinta Inns Inc. 206,706
44,408 Marriott Corporation 1,287,832
34,300 McDonald's Corporation 1,955,100
7,007 Mirage Resorts, Inc.+ 167,292
--------------------------------------------------------------------------------
5,070,465
--------------------------------------------------------------------------------
LEISURE AND ENTERTAINMENT -- 3.4%
1,500 Boyd Gaming Corporation+ 20,062
35,000 Delta Queen Steamboat Company 608,125
30,889 Disney (Walt) Company 1,316,644
40,000 Funco Inc.+ 600,000
15,923 Paramount Communications Inc. 1,232,042
14,982 Time Warner, Inc. 662,954
--------------------------------------------------------------------------------
4,439,827
--------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 3.3%
55,000 Carter-Wallace Inc. 1,175,625
15,000 Eastman Kodak Company 840,000
19,609 Gillette Company, Inc. 1,169,187
25,041 Nike, Inc., Class B 1,161,276
--------------------------------------------------------------------------------
4,346,088
--------------------------------------------------------------------------------
BROADCASTING AND CABLE TELEVISION -- 3.3%
53,257 Liberty Media Corporation, Class A+ 1,551,110
10,000 Preferred Entertainment, Inc.+ 205,000
44,066 QVC Network Inc.+ 1,729,590
2,250 Viacom, Inc., Class A+ 109,969
14,735 Viacom, Inc., Class B, Non-Voting+ 661,233
--------------------------------------------------------------------------------
4,256,902
--------------------------------------------------------------------------------
HOME AND BUILDING SUPPLIES -- 2.8%
20,000 Home Depot Inc. 790,000
17,831 Kaufman & Broad Home Corporation 423,486
59,370 Lennar Corporation 2,026,001
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
HOME AND BUILDING SUPPLIES -- (CONTINUED)
8,553 Pulte Corporation $ 310,046
5,600 Southern Energy Homes Inc.+ 105,700
--------------------------------------------------------------------------------
3,655,233
--------------------------------------------------------------------------------
OIL AND GAS -- 2.3%
80,000 American Oil & Gas Corporation+ 810,000
20,000 Associated Natural Gas Corporation 632,500
120,000 Forest Oil Corporation+ 525,000
25,000 Hornbeck Offshore Services, Inc.+ 362,500
4,000 Mercer International Inc.+ 56,500
75,000 Noble Drilling Corporation+ 656,250
--------------------------------------------------------------------------------
3,042,750
--------------------------------------------------------------------------------
AUTOMOTIVE -- 2.3%
25,700 Chrysler Corporation 1,368,525
25,000 Ford Motor Company 1,612,500
--------------------------------------------------------------------------------
2,981,025
--------------------------------------------------------------------------------
FOOD AND BEVERAGE -- 2.0%
65,000 Chock Full O Nuts, Corporation+ 520,000
46,566 Coca-Cola Company 2,078,007
250 Snapple Beverage Corporation+ 6,563
--------------------------------------------------------------------------------
2,604,570
--------------------------------------------------------------------------------
ELECTRONICS -- 1.6%
15,000 Arrow Electronics+ 626,250
24,946 Best Buy Company+ 1,159,989
30,000 Brooktree Corporation+ 315,000
3,300 TSS Ltd.+ 1,547
--------------------------------------------------------------------------------
2,102,786
--------------------------------------------------------------------------------
TECHNOLOGY -- 1.3%
15,000 Newbridge Networks Corporation+ 821,250
13,300 Valence Technology+ 202,825
100,000 Vtel Corporation+ 650,000
--------------------------------------------------------------------------------
1,674,075
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
MANUFACTURING -- 1.3%
7,764 Caterpillar Inc. $ 690,996
25,000 Ventritex Inc.+ 981,250
--------------------------------------------------------------------------------
1,672,246
--------------------------------------------------------------------------------
RETAIL -- 1.1%
1,093 Barnes and Noble+ 27,188
22,500 CompUSA Inc.+ 450,000
1,125 Sportmart Inc.+ 19,969
21,957 Toys "R" Us Inc.+ 897,492
--------------------------------------------------------------------------------
1,394,649
--------------------------------------------------------------------------------
CONSUMER DURABLES -- 0.9%
11,600 Code Alarm Inc.+ 139,200
9,865 Duracell International, Inc. 353,907
20,965 United International Holdings Inc., Class
A+ 718,051
--------------------------------------------------------------------------------
1,211,158
--------------------------------------------------------------------------------
PHARMACEUTICALS -- 0.4%
28,500 Chronimed Inc.+ 477,375
--------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
13,359 Spieker Properties, Inc. 250,481
--------------------------------------------------------------------------------
TRANSPORTATION -- 0.1%
1,268 UAL Corporation+ 185,128
--------------------------------------------------------------------------------
ENERGY -- 0.1%
4,126 Consolidated Electric Power Asia@ 70,658
--------------------------------------------------------------------------------
MINING -- 0.0%
3,550 TVX Gold Inc.+ 23,519
--------------------------------------------------------------------------------
CONSTRUCTION -- 0.0%
1,090 Engle Homes Inc. 15,805
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- DOMESTIC
(Cost $70,221,091) 88,042,758
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<C> <S> <C>
COMMON STOCKS -- FOREIGN -- 13.4%
MEXICO -- 6.7%
7,854 Coca-Cola Femsa ADR+ $ 257,218
30,000 Empresas ICA Sociedad Controlee SA ADR 847,500
50,000 Grupo Carso SA de CV ADR+ 1,070,313
55,700 Grupo Fin Serfin SA de CV SP ADR+ 1,643,150
44,603 Grupo Televisa ADR+ 3,122,210
18,133 Panamerican Beverage Inc. ADR+ 693,587
15,000 Telefonos de Mexico SA, ADR+ 1,012,500
--------------------------------------------------------------------------------
8,646,478
--------------------------------------------------------------------------------
HONG KONG -- 3.2%
200,000 Cheung Kong Holdings+ 1,222,906
200,000 Dah SIng Financial Holdings+ 957,618
1,000,000 Fairwood Holdings+ 417,340
800,000 Giordano Holdings+ 414,104
410,000 Hanny Magnetics Holdings, Ltd.+ 183,049
200,000 Hutchison Whampoa 996,442
--------------------------------------------------------------------------------
4,191,459
--------------------------------------------------------------------------------
GREAT BRITAIN -- 1.5%
22,333 Vodafone Group Plc ADR 1,993,220
--------------------------------------------------------------------------------
ARGENTINA -- 0.7%
20,000 Buenos Aires Embotella SA, Class B ADR 900,000
--------------------------------------------------------------------------------
OTHER -- 1.3%
273,894 Cifra ADR 876,460
100,000 Flextech Ord., 10P+ 556,734
40,731 Hopewell Holdings Ltd. ADR 264,751
1,500 Videotron Com NPV 29,222
--------------------------------------------------------------------------------
1,727,167
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- FOREIGN
(Cost $12,501,849) 17,458,324
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
SHARES (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
WARRANTS -- 0.0%
4,558 International Finance Corporation expires
09/25/95+ $ 26,209
7,962 Xoma Corporation, expire 6/12/95+ 0
--------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost $19,554) 26,209
--------------------------------------------------------------------------------
UNITS -- 0.0% (COST $26,413)
8,900 TSS Ltd., 0% 1998 unit 3&2+ 14,463
--------------------------------------------------------------------------------
<CAPTION>
CONTRACTS
<C> <S> <C>
--------------------------------------------------------------------------------
CALL OPTIONS PURCHASED -- 2.0%
24 Advanced Micro Devices, Inc., January,
$15.00 7,200
150 Alza Corporation, January, $25.00 52,500
92 Apple Computer, Inc., January, $25.00 42,550
13 Compaq Computer Corporation, January,
$65.00 11,700
26 Compaq Computer Corporation, January,
$70.00 11,375
42 Disney Walt Company, January, $35.00 34,125
72 Echo Bay Mines, Ltd., January, $10.00 20,700
13 Hilton Hotels Corporation, January,
$40.00 27,788
26 Hilton Hotels Corporation, January,
$45.00 39,000
13 Hilton Hotels Corporation, April, $40.00 26,650
62 Intel Corporation, January, $45.00 106,950
32 Intel Corporation, January, $50.00 42,800
33 International Business Machines
Corporation, January, $45.00 383,050
34 Lotus Development Corporation, January,
$35.00 68,000
21 Lotus Development Corporation, January,
$50.00 11,025
400 Merck & Company Inc., January, $30.00 175,000
30 Microsoft Corporation, January, $70.00 31,875
19 Mirage Resorts, Inc., January, $20.00 7,600
47 Motorola Inc., January, $75.00 81,663
50 Motorola Inc., January, $80.00 67,500
350 National Medical Enterprises Inc.,
January $10.00 131,250
250 Oryx Energy Company, July, $15.00 81,250
231 Paramount Communications Inc., January,
$70.00 190,575
53 Paramount Communications Inc., January,
$75.00 22,525
86 Standard & Poor's 100, January, $425.00++ 83,850
26 Snapple Beverage Corporation, January,
$20.00 15,925
78 Snapple Beverage Corporation, January,
$17.50 67,275
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
CALL OPTIONS PURCHASED -- (CONTINUED)
300 Telefonos de Mexico SA, January, $50.00 $ 525,000
25 Times Mirror Co., Series A, March, $25.00 20,938
32 UAL Corporation, January, $130.00 51,600
16 UAL Corporation, January, $135.00 18,600
8 UAL Corporation, January, $140.00 5,900
8 UAL Corporation, February, $130.00 13,900
56 Wells Fargo & Company, January, $85.00 248,500
--------------------------------------------------------------------------------
TOTAL CALL OPTIONS PURCHASED
(Cost $2,310,371) 2,726,139
--------------------------------------------------------------------------------
PUT OPTIONS PURCHASED -- 0.2%
111 Glaxo, January, $25.00 43,013
56 International Game Technology, January,
$40.00 60,200
26 Limited, Inc., January, $20.00 8,125
344 Standard & Poor's 100 Index, January,
$425.00++ 79,550
26 Storage Technology Corporation, January,
$35.00 10,075
--------------------------------------------------------------------------------
TOTAL PUT OPTIONS PURCHASED
(Cost $219,804) 200,963
--------------------------------------------------------------------------------
<CAPTION>
FACE VALUE
<C> <S> <C>
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.4%
$ 6,500,000 U.S. Treasury Bills, 3.25%# due
1/27/94+++ 6,408,295
800,000 U.S. Treasury Bills, 3.23%# due 2/3/94+++ 796,536
17,000,000 U.S. Treasury Bills, 3.20%# due 4/7/94+++ 16,841,190
--------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,045,163) 24,046,021
--------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- FOREIGN -- 2.7%
1,500,000 Bayerische Landesbank, 4.00% due
3/11/94*** 1,737,150
1,500,000 Deutsche Bank, 4.00% due 3/11/94*** 1,737,150
--------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $3,000,000) 3,474,300
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $112,344,245*) 104.1% 135,989,177
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1993
<TABLE>
<CAPTION>
MARKET VALUE
CONTRACTS (NOTE 1)
--------------------------------------------------------------------------------
<C> <S> <C>
FUTURES CONTRACTS -- SHORT POSITIONS -- (9.5)% (COST $12,373,223)
(53) Standard & Poor's 500 Index Futures,
March 1994++ $ (12,374,175)
--------------------------------------------------------------------------------
PUT OPTIONS WRITTEN -- (0.0)% (PREMIUM RECEIVED $83,173)
400 Merck & Company Inc., January, $30.00 (2,500)
--------------------------------------------------------------------------------
<CAPTION>
SHARES
<C> <S> <C>
--------------------------------------------------------------------------------
INVESTMENTS SOLD SHORT -- (2.8)%
(10,000) Apple Computer (292,500)
(56,100) Glaxo Holdings Plc, ARD (1,171,088)
(50,000) Greenwich Pharmaceuticals (137,500)
(100) International Game Technology (2,950)
(20,000) Merrill Corporation (540,000)
(7,800) Price/Costso Inc. (150,150)
(15,000) Ultratech Stepper (275,625)
(20,000) U.S. Healthcare (1,152,500)
--------------------------------------------------------------------------------
TOTAL INVESTMENTS SOLD SHORT
(Contract amount $3,704,899) (3,722,312)
--------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES (NET) 8.2% 10,684,633
--------------------------------------------------------------------------------
NET ASSETS 100.0% $ 130,574,823
--------------------------------------------------------------------------------
<FN>
*Aggregate cost for Federal tax purposes.
**When issued security (see Note 1).
***The principal amount to be received upon maturity is indexed to the average
of the offer yields quoted on two, five, and seven year French Franc swaps.
The redemption amount received may be more or less than the security's
original face amount.
+Non-income producing securities.
++In the case of exercise, settlement is made in cash.
+++U.S. Treasury Bills aggregating $24,046,021 have been pledged to
collateralize futures contracts, written options and short investment
positions in accordance with the Fund's Prospectus.
#Annualized yield to maturity (unaudited).
@Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1993
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost
$112,344,245) (Note 1)
See accompanying schedule $ 135,989,177
Cash 332,411
Aggregate exercise cost of futures --
short position 12,373,223
Receivable for short sales 3,704,899
Receivable for investment securities
sold 1,051,638
Unamortized organization costs (Note 6) 232,018
Interest and dividends receivable 206,401
Receivable for short sales closed 35,000
Other assets 15,687
- -------------------------------------------------------------------------------
TOTAL ASSETS 153,940,454
- -------------------------------------------------------------------------------
LIABILITIES:
Financial futures contracts -- short
position, at value
(Contract amount $12,373,223 ) (Note
1)
See accompanying schedule $ 12,374,175
Notes payable (Note 7) 4,601,806
Investments sold short, at value
(Contract amount $3,704,899) (Note 1)
See accompanying schedule 3,722,312
Payable for investment securities
purchased 2,250,436
Investment advisory fee payable (Note
2) 107,490
Custodian fees payable (Note 2) 65,713
Payable for shares redeemed 34,888
Administration fee payable (Note 2) 27,670
Service fees payable (Note 3) 27,670
Transfer agent fees payable (Note 2) 7,700
Distribution fee payable (Note 3) 2,611
Put Options written, at value (Premium
received $83,173)
(Note 1) See accompanying schedule 2,500
Accrued expenses and other payables 140,660
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 23,365,631
- -------------------------------------------------------------------------------
NET ASSETS $ 130,574,823
- -------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1993
<TABLE>
<S> <C>
SHARES represented by:
Individual General Partners 79,370
Shareholders 4,599,131
- -------------------------------------------------------------
Total Shares 4,678,501
- -------------------------------------------------------------
NET ASSETS consist of:
Accumulated net investment loss $ (7,483,748)
Accumulated net realized gain on
securities transactions, foreign
currency transactions, futures
contracts, written options and
investments sold short 38,681,696
Unrealized appreciation of
securities, futures contracts,
written options and short
positions 23,707,240
Paid-in capital 75,669,635
- -------------------------------------------------------------
TOTAL NET ASSETS $ 130,574,823
- -------------------------------------------------------------
NET ASSET VALUE
CLASS A SHARES:
NET ASSET VALUE and redemption price
per share
($126,428,124 DIVIDED BY 4,529,314
shares outstanding) $27.91
- -------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE
($27.91 DIVIDED BY 0.95)
(based on sales charge of 5% of the
offering price at December 31, 1993) $29.38
- -------------------------------------------------------------
CLASS B SHARES:
NET ASSET VALUE and offering price per
share+
($4,146,699 DIVIDED BY 149,187 shares
outstanding) $27.80
- -------------------------------------------------------------
<FN>
+Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge. The Fund ceased selling Class B shares on
September 16, 1993.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 2,142,868
Dividends (net of foreign withholding taxes of $5,595)
720,495
- -------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME
2,863,363
- -------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) $3,258,285
Administration fee (Note 2) 342,499
Legal and audit fees 234,211
Service fees (Note 3) 198,561
Custodian fees (Note 2) 186,715
Distribution fee (Note 3) 158,824
Amortization of organization costs (Note 6) 153,728
Transfer agent fees (Note 2) 82,047
Individual General Partners' fees and expenses (Note 2) 77,681
Other 166,772
- -------------------------------------------------------------------------------------
Total Operating Expenses Before Interest Expense
4,859,323
Interest expense (Note 7) 1,380,453
- -------------------------------------------------------------------------------------
TOTAL EXPENSES 6,239,776
- -------------------------------------------------------------------------------------
NET INVESTMENT LOSS
(3,376,413)
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) on:
Securities transactions 15,610,723
Written options (228,902)
Futures contracts (51,791)
Investments sold short (3,294,420)
Foreign currency transactions (5,166)
- -------------------------------------------------------------------------------------
Net realized gain on investments during the year 12,030,444
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation/(depreciation) of:
Securities (2,690,537)
Written options 77,224
Futures contracts 92,449
Investments sold short 236,303
- -------------------------------------------------------------------------------------
Net unrealized depreciation of investments during the year
(2,284,561)
- -------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
9,745,883
- -------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$ 6,369,470
- -------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
12/31/93 12/31/92
<S> <C> <C>
Net investment loss $ (3,376,413) $
(1,469,246)
Net realized gain on securities, written options, futures contracts,
investments sold short and foreign currency transactions during the year 12,030,444
9,795,481
Net unrealized appreciation/(depreciation) of securities, written options,
futures contracts, and investments sold short during the year (2,284,561)
5,009,126
- -------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 6,369,470
13,335,361
Net increase/(decrease) in net assets from:
Class A share transactions (Note 5) (24,034,146)
(27,621,974)
Class B share transactions (Note 5) 4,004,568 --
- -------------------------------------------------------------------------------------
Net decrease in net assets (13,660,108)
(14,286,613)
NET ASSETS:
Beginning of year 144,234,931
158,521,544
- -------------------------------------------------------------------------------------
End of year (including accumulated net investment loss of $7,483,748 and
$4,107,335, respectively) $130,574,823
$144,234,931
- -------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<S> <C> <C>
NET INCREASE IN CASH:
Cash flows from operating activities:
Interest received $ 2,222,089
Dividends received 710,524
Operating expenses paid (4,858,225)
Interest expense (1,380,453)
- -------------------------------------------------------------------------------
Net cash used in operating activities $ (3,306,065)
- -------------------------------------------------------------------------------
Cash flows from investing activities:
Increase in short-term portfolio
securities, net (3,443,337)
Purchase of investment securities and
purchased options (343,143,466)
Proceeds from disposition of investment
securities and purchased options 406,737,743
Net proceeds used to close short sales
and written option transactions (3,502,348)
Net proceeds from futures transactions (51,791)
- -------------------------------------------------------------------------------
Net cash provided by investing
activities 56,596,801
- -------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING AND
INVESTING ACTIVITIES 53,290,736
- -------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from shares sold
Class A 7,453,087
Class B 4,058,038
Payments on shares redeemed
Class A (31,198,817)
Class B (53,470)
Decrease in loans outstanding (33,304,669)
- -------------------------------------------------------------------------------
NET CASH USED IN FINANCING ACTIVITIES (53,045,831)
- -------------------------------------------------------------------------------
NET INCREASE IN CASH 244,905
CASH -- BEGINNING OF PERIOD 87,506
- -------------------------------------------------------------------------------
CASH -- END OF PERIOD $ 332,411
- -------------------------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
Net increase in net assets resulting from
operations $ 6,369,470
Decrease in investments $ 41,378,221
Increase in futures contracts (92,449)
Decrease in payable for securities sold
short and written options (6,724,088)
Increase in receivable for investment
securities sold and short sales 14,636,089
Decrease in payable for investment
securities purchased (2,346,855)
Decrease in dividends and interest
receivable 69,250
Decrease in other assets 188,999
Decrease in accrued expenses (187,901)
- -------------------------------------------------------------------------------
TOTAL ADJUSTMENTS 46,921,266
- -------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING AND
INVESTING ACTIVITIES $ 53,290,736
- -------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
YEAR YEAR YEAR
PERIOD
ENDED ENDED ENDED
ENDED
12/31/93++ 12/31/92++ 12/31/91
12/31/90*
<S> <C> <C> <C>
<C>
Net Asset Value, beginning of period $ 26.63 $ 24.04 $ 17.51 $
18.90
- -------------------------------------------------------------------------------------
Investment income from operations:
Net investment loss $ (0.66) $ (0.24) $ (0.37) $
(0.03)
Net realized and unrealized gain/(loss)
on investments 1.94 2.83 6.90 (1.36)
- -------------------------------------------------------------------------------------
Total from investment operations 1.28 2.59 6.53
(1.39)
- -------------------------------------------------------------------------------------
Net Asset Value, end of period $ 27.91 $ 26.63 $ 24.04 $
17.51
- -------------------------------------------------------------------------------------
Total return+++ 4.81% 10.77% 37.29%
(7.35)%
- -------------------------------------------------------------------------------------
Ratios to average net assets/
supplemental data
Net assets, end of period (000's) $ 126,428 $ 144,235 $ 158,522 $
140,447
Ratio of expenses to average net assets** 4.54% 3.12% 3.86%
3.27%+
Ratio of net investment loss to
average net assets (2.45)% (1.00)% (1.60)%
(0.31)%+
Portfolio turnover rate 247% 312% 304%
149%
- -------------------------------------------------------------------------------------
<FN>
*The Fund commenced operations on June 28, 1990.
**The annualized operating expense ratio includes interest expense. The
annualized ratio excluding interest expense was 3.54%, 2.28%, 3.60% and 2.99%
for the years ended December 31, 1993, 1992, and 1991 and for the period
ended December 31, 1990, respectively.
+Annualized.
++Per share amounts have been calculated using the monthly average share method
which more appropriately presents the per share data as the undistributed
income method does not accord with results of operations for these periods.
+++Total return represents aggregate total return for the periods indicated and
does not reflect any applicable sales charges.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
The Advisors Fund L.P.
- --------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
12/31/93*++
<S> <C>
Net Asset Value, beginning of period $ 27.01
- --------------------------------------------------------------------------------
Investment income from operations:
Net investment loss $ (.53)
Net realized and unrealized gain on investments 1.32
- --------------------------------------------------------------------------------
Total from investment operations 0.79
- --------------------------------------------------------------------------------
Net Asset Value, end of period $ 27.80
- --------------------------------------------------------------------------------
Total return+++ 2.92%
- --------------------------------------------------------------------------------
Ratios to average net assets/supplemental data
Net assets, end of period (000's) $ 4,147
Ratio of expenses to average net assets** 5.29%+
Ratio of net investment loss to average net assets (3.20)%+
Portfolio turnover rate 247%
- --------------------------------------------------------------------------------
<FN>
*The Fund commenced selling Class B shares on June 1, 1993. The Fund ceased all
sales of Class B shares on September 16, 1993.
**The annualized operating expense ratio includes interest expense. The
annualized ratio excluding interest expense was 4.29% for the period ended
December 31, 1993.
+Annualized.
++Per share amounts have been calculated using the monthly average share method
which more appropriately presents the per share data as the undistributed
income method does not accord with results of operations for this period.
+++Total return represents aggregate total return for the period indicated and
does not reflect any applicable CDSC.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Advisors Fund L.P. (the "Fund") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end, non-diversified
management investment company established as a limited partnership under
Delaware law. The Fund issues shares of limited partnership interest and is
governed by a board of Individual General Partners in lieu of a corporate board
of directors. The Fund commenced operations on June 28, 1990. As of June 1,
1993, the Fund offered two classes of shares to the general public: Class A
shares and Class B shares. As of September 16, 1993, the Fund ceased all sales
of Class B shares of the Fund. Class A shares are sold with a front-end sales
charge. Class B shares may be subject to a contingent deferred sales charge
("CDSC") at the time of redemption. Class B shares will automatically convert to
Class A shares eight years after the original purchase date. Each class of
shares has identical rights and privileges except with respect to the effect of
the respective sales charges, the distribution and/or service fees borne by each
class, expenses allocable exclusively to each class, voting rights on matters
affecting a single class, the exchange privilege of each class and the
conversion feature of Class B shares. The policies described below are followed
consistently by the Fund in the preparation of its financial statements in
conformity with generally accepted accounting principles.
PORTFOLIO VALUATION: The Fund's investments are valued at market value or, in
the absence of a market value with respect to any investment, at fair market
value as determined by or under the direction of the Individual General
Partners. A security that is primarily traded on a United States or foreign
exchange is valued by reference to the last sale price on the exchange or, if no
sales occur during the day, at the current quoted bid price. Over-the-counter
securities are valued on the basis of the bid price at the close of business
each day. Debt securities (other than U.S. government securities and short-term
obligations) are valued by The Boston Company Advisors, Inc. ("Boston
Advisors"), after consultation with independent valuation services approved by
the Individual General Partners. Investments in U.S. government securities
(other than short-term securities) are valued at the average of the quoted bid
and asked prices in the over-the-counter market. Options are generally valued at
the last sale price or, in the absence of a last sale price, the last bid price.
The value of a futures contract equals the unrealized gain or loss on the
contract that is determined by marking it to
25
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the current settlement price for a like contract acquired on the day on which
the futures contract is being valued. A settlement price may not be used if the
market makes a limit move with respect to a particular commodity. Forward
contracts and futures contracts, when no market quote is available, are valued
at their fair market value as determined by the Individual General Partners,
upon consultation with their agents. Short-term investments that mature in 60
days or less are valued at amortized cost.
OPTIONS: Upon the purchase of a put option or a call option by the Fund, the
premium paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires, the Fund will realize a
loss in the amount of the cost of the option. When the Fund enters into a
closing sale transaction, the Fund will realize a gain or loss depending on
whether the sales proceeds from the closing sale transaction are greater or less
than the cost of the option. When the Fund exercises a put option, the proceeds
from such sale will be decreased by the premium originally paid. When the Fund
exercises a call option, the cost of the security which the Fund purchases upon
exercise will be increased by the premium originally paid. When purchased index
options are exercised, settlement is made in cash.
When the Fund writes a call option or a put option, an amount equal to the
premium received by the Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, the Fund realizes a gain
equal to the amount of the premium received. When the Fund enters into a closing
purchase transaction, the Fund realizes a gain (or loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security
or index, and the liability related to such option is eliminated. When a call
option is exercised, the Fund realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale are increased by the premium
originally received. When a put option is exercised, the amount of the premium
originally received will reduce the cost of the security which the Fund
purchased upon exercise. When written index options are exercised, settlement is
made in cash.
The risk associated with purchasing options is limited to the premium originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or
26
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
index increases and the option is exercised. The risk in writing a put option is
that the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk the
Fund may not be able to enter into a closing transaction because of an illiquid
secondary market.
FUTURES CONTRACTS: Upon entering into a futures contract, the Fund is required
to deposit with the broker an amount of cash or cash equivalents equal to a
certain percentage of the contract amount. This is known as the "initial
margin." Subsequent payments ("variation margin") are made or received by the
Fund each day, depending on the daily fluctuation of the value of the contract.
For financial statement purposes, an amount equal to the settlement amount of
the contract is included in the Fund's Statement of Assets and Liabilities as an
asset and as an equivalent liability. For long futures positions, the asset is
marked-to-market daily. For short futures positions, the liability is marked-
to-market daily. The daily changes in the contract are recorded as unrealized
gains or losses. The Fund recognizes a realized gain or loss when the contract
is closed.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments or index, which may not correlate
with the change in value of the hedged investments. In addition, there is the
risk that the Fund may not be able to enter into a closing transaction because
of an illiquid secondary market.
FOREIGN CURRENCY: The books and records of the Fund are maintained in United
States dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end of
each business day, and purchases and sales of investment securities, income and
expenses are translated on the respective dates of such transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses on foreign currency transactions
and the difference between the amounts of interest and dividends recorded on the
books of the Fund and the amount actually received. The portion of foreign
currency gains and losses related to
27
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
fluctuation in exchange rates between the initial purchase trade date and
subsequent sale trade date is included in realized gains and losses on
investment securities sold.
FORWARD FOREIGN CURRENCY CONTRACTS: Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily. The change in market
value is recorded by the Fund as an unrealized gain or loss. When the contract
is closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations in
the underlying prices of the Fund's portfolio securities, but it does establish
a rate of exchange that can be achieved in the future. Although forward foreign
currency contracts limit the risk of loss due to a decline in the value of the
currency holdings, they also limit any potential gain that might result should
the value of the currency increase. In addition, the Fund could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of the
contracts.
SHORT SALES: A short sale is a transaction in which the Fund sells securities it
does not own (but has borrowed) in anticipation of a decline in the market price
of the securities. To complete a short sale, the Fund must arrange through a
broker to borrow the securities to be delivered to the buyer. The proceeds
received by the Fund from the short sale are retained by the broker until the
Fund replaces the borrowed securities. In borrowing the securities to be
delivered to the buyer, the Fund becomes obligated to replace the securities
borrowed at their market price at the time of replacement, whatever that price
may be.
Possible losses from short sales differ from losses that could be incurred from
a purchase of a security, because losses from short sales may be unlimited,
whereas losses from purchases can equal only the total amount invested.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Securities purchased or sold on a when-issued or
delayed-delivery basis may be settled a month or more after the trade
28
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
date. Interest income is not accrued until settlement date. The Fund instructs
the custodian to segregate assets in a separate account with a current value at
least equal to the amount of its when-issued purchased commitments. Realized
gains and losses from securities sold are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis. Investment income and realized and unrealized gains and
losses are allocated based upon relative net assets of each class. The Fund must
pay any dividends or interest payable on securities while those securities are
in short position. During the year ended December 31, 1993, the Fund paid, as an
offset to dividend income, dividends totalling $154,787 on securities that were
in short positions.
DISTRIBUTIONS TO SHAREHOLDERS: The Fund intends to make distributions to
shareholders in such amounts and at such times as the Individual General
Partners, in their sole discretion, shall determine.
FEDERAL INCOME TAXES: No Federal income tax provision has been made in the
financial statements because the Fund intends to qualify as a partnership for
Federal income tax purposes. The Fund will only be treated as a partnership for
Federal income tax purposes through 1997.
DISSOLUTION OF FUND: The term of the Fund shall expire on December 31, 2037,
unless earlier dissolved.
CASH FLOW INFORMATION: The Fund issues and redeems its shares and invests in
securities as reported in the Statement of Changes in Net Assets. Infor-
mation on cash payments is presented in the Statement of Cash Flows. Accounting
practices that do not affect reporting activity on a cash basis include
unrealized gain or loss on investment securities. In addition, cash flows on
future and option contracts are included in the same category as the cash flows
for items being hedged.
REPURCHASE AGREEMENTS: The Fund may engage in repurchase agreement transactions.
Under the terms of a typical repurchase agreement, the Fund takes possession of
an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed upon price and
time, thereby determining the yield during the Fund's holding
29
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
period. This arrangement results in a fixed rate of return that is not subject
to market fluctuations during the Fund's holding period. The value of the
collateral is at least equal at all times to the total amount of the repurchase
obligations, including interest. In the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There is
potential loss to the Fund in the event the Fund delayed or was prevented from
exercising its rights to dispose of the collateral securities including the risk
of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its rights. The Fund's investment adviser
or sub-investment adviser, acting under the supervision of the Board of
Trustees, reviews the value of the collateral and the creditworthiness of those
banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.
2. INVESTMENT ADVISORY FEE, PORTFOLIO MANAGEMENT FEES,
ADMINISTRATION FEE AND
OTHER RELATED PARTY TRANSACTIONS
Prior to the close of business on July 30, 1993, the Fund was a party to an
investment advisory agreement with Shearson Lehman Investment Strategy Advisors
Inc. ("Strategy Advisors"), a wholly owned subsidiary of Shearson Lehman
Brothers, Inc. ("Shearson Lehman Brothers").
As of the close of business on July 30, 1993, The Travelers Inc. (formerly known
as Primerica Corporation) and Smith Barney, Harris Upham & Co. Incorporated
completed the acquisition of the domestic retail brokerage and asset management
business of Shearson Lehman Brothers and Smith Barney, Harris Upham & Co.
Incorporated was renamed Smith Barney Shearson Inc. ("Smith Barney Shearson").
Subsequent to such acquisition, Smith Barney Shearson Strategy Advisors Inc.
("SBSSA"), a division of Mutual Management Corp., which is controlled by Smith
Barney Shearson Holdings Inc. ("Holdings"), succeeded Strategy Advisors as the
Fund's investment adviser. Holdings is a wholly owned subsidiary of Travelers.
The Fund pays SBSSA a fee adjusted to reflect performance of its Class B shares.
This monthly performance adjustment is based upon the performance of the Class B
shares, after deducting all expenses, including the investment advisory fee,
relative to the performance of the Standard & Poor's 500 Composite Stock Price
Index (the "S&P 500") on a rolling twelve month basis. The investment advisory
fee paid to SBSSA
30
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
can range on an annual basis from 0% to 4.00% of the value of the Fund's average
daily net assets. For the year ended December 31, 1993, the effective rate was
2.38% for Class A shares and for the period from June 1, 1993 to December 31,
1993, the effective rate was 2.42% for Class B shares.
The Fund and SBSSA have entered into portfolio management agreements ("Portfolio
Management Agreements") with various portfolio managers (collectively, the
"Portfolio Managers"). The Fund's current Portfolio Managers are as follows:
Ardsley Advisory Partners; Hellman, Jordan Management Co., Inc.; Mark Asset
Management Corporation; and Woodward & Associates Inc. SBSSA pays each Portfolio
Manager a monthly management fee based upon the Portfolio Manager's performance
compared to the performance of the S&P 500 on a rolling twelve month basis. The
Fund pays no direct investment advisory fee to any of the Portfolio Managers. On
November 20, 1992, Strategy Advisors gave notice of its intention to terminate
the Portfolio Management Agreement by and between the Fund, Strategy Advisors
and McKenzie, Walker Investment Management, Inc. ("McKenzie, Walker"). Pursuant
to such Portfolio Management Agreement, termination was effective 60 days from
the date of notification, January 19, 1993. Strategy Advisors began reallocation
of the Fund assets managed by McKenzie, Walker on December 1, 1992 in accordance
with the terms of such Portfolio Management Agreement.
Tremont Partners, Inc. ("Tremont") assists SBSSA in monitoring and evaluating
the performance of the Portfolio Managers pursuant to a consulting agreement
among the Fund, SBSSA and Tremont. SBSSA pays Tremont a fee for its services
equal to 0.20% of any investment advisory fee retained by SBSSA. The Fund pays
no direct fees to Tremont.
The Fund has also entered into an administration agreement (the "Administration
Agreement") with Boston Advisors, an indirect wholly owned subsidiary of Mellon
Bank Corporation ("Mellon"). Under the Administration Agreement, Boston Advisors
is paid a fee computed and paid monthly at the annual rate of 0.25% of the value
of the Fund's average daily net assets. Prior to the close of business on May
21, 1993 Boston Advisors served as sub-investment advisor and administrator to
the Fund and received fees equal to the current rates for its services.
31
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended December 31, 1993, the Fund incurred total brokerage
commissions on portfolio transactions of $1,172,270, of which $15,684 was paid
to Smith Barney Shearson, Inc. or its predecessor and $18,029 was paid to Lehman
Brothers, Inc.
For the year ended December 31, 1993, Smith Barney Shearson or its predecessor
received from investors $231,564 representing commissions (sales charges) on
sales of Class A shares.
A CDSC is generally payable by a shareholder in connection with the redemption
of Class B shares within five years after the date of purchase. In circumstances
in which the charge is imposed, the amount of the charge ranges between 5% and
1% of net asset value depending on the number of years since the date of
purchase. For the year ended December 31, 1993, Smith Barney Shearson or its
predecessor received $1,884 in compensation from investors in CDSCs on the
redemption of Class B shares.
No officer, director or employee of Smith Barney Shearson, SBSSA, the Portfolio
Managers, Boston Advisors, Tremont or any of their affiliates received any
compensation from the Fund for serving as an Individual General Partner. The
Fund pays each Individual General Partner who is not an officer, director or
employee of Smith Barney Shearson, SBSSA, the Portfolio Managers, Boston
Advisors, Tremont or any of their affiliates, a fee of $15,000 per annum plus
$1,000 per meeting attended, and reimburses each such Individual General Partner
for travel and out-of-pocket expenses.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary of
Mellon, serves as the Fund's custodian. The Shareholder Services Group, Inc., a
subsidiary of First Data Corporation, serves as the Fund's transfer agent.
3. DISTRIBUTION AGREEMENT
Smith Barney Shearson acts as distributor of the Fund's shares pursuant to a
distribution agreement with the Fund, and sells shares of the Fund through Smith
Barney Shearson or its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a Services and
Distribution Plan (the "Plan"). Under this Plan, the Fund compensates
32
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Smith Barney Shearson for servicing accounts for Class A and Class B
shareholders. Smith Barney Shearson is paid an annual service fee with respect
to Class A and Class B shares of the Fund at the rate of 0.25% of the value of
the average daily net assets of each respective class of shares. Smith Barney
Shearson is also paid an annual distribution fee with respect to Class B shares
at the rate of 0.75% of the value of the average daily net assets attributable
to those shares. During the period from June 1, 1993 through December 31, 1993,
the Fund incurred $193,599 and $4,962 in service fees for Class A and Class B
shares, respectively. During the period from January 1, 1993 through May 28,
1993, the Fund incurred $143,939 in distribution fees for Class A shares. For
the period from June 1, 1993 through December 31, 1993, the Fund incurred
$14,885 in distribution fees for Class B shares. Prior to June 1, 1993, the Fund
paid distribution fees at an annual rate of 0.25% of the value of the average
daily net assets for Class A shares.
4. PURCHASES AND SALES OF INVESTMENTS
Purchases and proceeds from sales of securities, excluding U.S. government
securities and short-term obligations, during the year ended December 31, 1993,
were $303,717,615 and $364,218,145, respectively. Purchases and proceeds from
sales of U.S. government securities during the year ended December 31, 1993 were
$3,877,545 and $3,862,857, respectively.
Written option activity for the year ended December 31, 1993 was as follows:
<TABLE>
<CAPTION>
Number of
Premiums Contracts
<S> <C> <C>
- --------------------------------------------------------------------------------
Options outstanding at December 31, 1992 $ 27,199 100
Options written during the period 1,204,484 4,668
Options expired during the period (292,782) (825 )
Options cancelled in closing purchase transactions (855,728) (3,543 )
- --------------------------------------------------------------------------------
Options outstanding at December 31, 1993 $ 83,173 400
- --------------------------------------------------------------------------------
</TABLE>
At December 31, 1993, aggregate gross unrealized appreciation of all securities
in which there was an excess of value over tax cost was $28,444,523 and
aggregate gross unrealized depreciation for all securities in which there was an
excess of tax cost over value was $4,799,591.
33
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. SHARES OF PARTNERSHIP INTEREST
The Fund has authorized and may issue an unlimited number of shares, divided
into two classes, Class A and Class B. As of September 16, 1993, the Fund ceased
all sales of Class B shares of the Fund. The Individual General Partners of the
Fund reserve the right in their sole discretion to offer Class B shares of the
Fund for purchase in the future.
Changes in shares outstanding for the Fund were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
12/31/93 12/31/92
CLASS A SHARES: Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------
Sold 266,743 $ 7,199,559 568,336 $ 13,834,909
Redeemed (1,154,680) (31,233,705) (1,744,759) (41,456,883)
- -------------------------------------------------------------------------------------
Net decrease (887,937) $(24,034,146) (1,176,423) $(27,621,974)
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
12/31/93*
CLASS B SHARES:** Shares Amount
<S> <C> <C> <C>
- -------------------------------------------------------------------------
Sold 151,161 $ 4,058,038
Redeemed (1,974) (53,470)
- -------------------------------------------------------------------------
Net increase 149,187 $ 4,004,568
- -------------------------------------------------------------------------
<FN>
*The Fund commenced selling Class B shares on June 1, 1993. Any shares
outstanding prior to June 1, 1993 have been designated as Class A shares.
**The Fund ceased all sales of Class B shares on September 16, 1993.
</TABLE>
6. ORGANIZATION COSTS
All costs incurred in connection with the organization of the Fund, including
the fees and expenses of registering and qualifying its shares for distribution
under Federal and state securities regulations, are being amortized on the
straight-line method over a period of sixty months from June 28, 1990, the date
that the Fund commenced operations. In the event that any of the initial shares
of the Fund are redeemed during such amortization period, the Fund will be
reimbursed for any unamortized organization costs in the same proportion as the
number of shares redeemed bears to the number of initial shares outstanding at
the time of redemption.
34
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. NOTES PAYABLE
The Fund has a line of credit agreement (the "Agreement") provided by
Continental Bank N.A. primarily for the purpose of allowing the Fund to leverage
investments. Under this Agreement, the Fund may borrow up to the lesser of $50
million or 25% of its adjusted net assets. Interest is payable either at the
bank's Money Market Rate or the London Interbank Offered Rate (LIBOR) plus a
percentage ranging from 0.375% to 1.250% based on the aggregate loan outstanding
balance on an annualized basis. The Fund is charged a commitment fee equal to
0.25% per annum of the credit available under the Agreement. The Fund is
required to maintain a ratio of net assets to aggregate amount of indebtedness
of no less than 3 to 1. At December 31, 1993, the Fund had outstanding
borrowings of $4,601,806. During the year ended December 31, 1993, the Fund had
an average outstanding daily balance of $30,104,558 with interest rates ranging
from 3.370% to 5.125%. Interest expense totalled $1,380,453 for the year ended
December 31, 1993.
35
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS OF THE ADVISORS FUND L.P.:
We have audited the accompanying statement of assets and liabilities of The
Advisors Fund L.P., including the schedule of portfolio investments, as of
December 31, 1993, and the related statement of operations and cash flows for
the year then ended, the statement of changes in net assets for each of the two
years then ended and the financial highlights for each of the three years in the
period then ended and for the period June 28, 1990 (commencement of operations)
to December 31, 1990. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1993 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Advisors Fund L.P. as of December 31, 1993, the results of its operations and
cash flows for the year then ended, the changes in its net assets for each of
the two years then ended and the financial highlights for each of the three
years in the period then ended and for the period June 28, 1990 (commencement of
operations) to December 31, 1990, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
February 16, 1994
36
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
OATH OF THE COMMODITY POOL OPERATORS FEBRUARY 22,
1994
UNDER REGULATION 4.22(H)(I)
The undersigned hereby certify that, to the best of their knowledge and belief,
the information contained in The Advisors Fund L.P. Annual Report dated December
31, 1993 was accurate and complete as of the date thereof.
Richard P. Roelofs Heath B. McLendon
Chief Executive Officer The Advisors Fund L.P.
Smith Barney Shearson Strategy Advisers
Inc.
37
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
PARTICIPANTS
DISTRIBUTOR
Smith Barney Shearson Inc.
388 Greenwich Street
World Financial Center
New York, New York 10285
INVESTMENT ADVISER
Smith Barney Shearson Strategy
Advisers Inc.
Two World Trade Center
New York, New York 10048
CONSULTANT TO INVESTMENT
ADVISER
Tremont Partners, Inc.
555 Theodore Fremd Avenue
Rye, New York 10580
ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
TRANSFER AGENT
TSSG
Exchange Place
Boston, Massachusetts 02109
PORTFOLIO MANAGERS
Ardsley Advisory Partners
646 Steamboat Road
Greenwich, CT 06830
Hellman, Jordan Management
Co., Inc.
75 State Street
Boston, Massachusetts 02109
Mark Asset Management
767 Fifth Avenue
New York, New York 10153
Woodward & Associates Inc.
17 State Street
New York, New York
AUDITORS AND COUNSEL
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
Dechert Price & Rhoads
1500 K. Street N.W.
Washington, D.C. 20005
CUSTODIAN
Boston Safe Deposit and
Trust Company
One Boston Place
Boston, Massachusetts 02108
38
<PAGE>
THE
ADVISORS
FUND L.P.
INDIVIDUAL GENERAL PARTNERS
Walter E. Auch, Sr.
Martin Brody
Stephen E. Kaufman
Heath B. McLendon
Madelon DeVoe Talley
THIS REPORT IS SUBMITTED FOR
THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE ADVISORS
FUND L.P. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS UNLESS
ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS FOR THE FUND,
WHICH CONTAINS
INFORMATION CONCERNING THE FUND'S INVESTMENT POLICIES AND
APPLICABLE CHARGES,
DISTRIBUTION FEES, RISK OF LOSS AND EXPENSES, AS WELL AS OTHER
PERTINENT
INFORMATION.
PERFORMANCE CITED IS THROUGH DECEMBER 31, 1993. PLEASE CONSULT THE
SMITH BARNEY
SHEARSON MUTUAL FUNDS QUARTERLY PERFORMANCE UPDATE FOR FIGURES
THROUGH THE MOST
RECENT CALENDAR QUARTER.
[LOGO]
Smith Barney Shearson
Mutual Funds
Two World Trade Center
New York, New York 10048
Fund 134, 205
<PAGE>
FD0413 B4
