THE ADVISORS' INNER CIRCLE FUND
A+P LARGE-CAP VALUE FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
AS OF APRIL 30, 1996
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED
BY A CURRENT PROSPECTUS FOR THE FUND DESCRIBED.
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
Value
A+P LARGE-CAP VALUE FUND Shares (000)
- ---------------------------------------------------------
COMMON STOCK (98.6%)
AEROSPACE & DEFENSE (0.5%)
Raytheon 5,200 $ 263
------
AIR TRANSPORTATION (2.0%)
AMR* 3,900 348
KLM Royal Dutch Air 24,002 810
------
1,158
------
AIRCRAFT (0.5%)
McDonnell Douglas 3,100 299
------
APPAREL/TEXTILES (1.0%)
Liz Claiborne 16,200 589
------
AUTOMOTIVE (3.6%)
Ford Motor 10,400 373
General Motors 32,200 1,747
------
2,120
------
BANKS (5.5%)
BankAmerica 3,600 273
Chase Manhattan 17,900 1,233
NationsBank 11,300 901
UnionBanCal 16,500 833
------
3,240
------
CHEMICALS (4.1%)
E.I. du Pont de Nemours 2,800 225
IMC Global 20,200 745
Rohm & Haas 13,700 909
Union Carbide 11,900 541
------
2,420
------
COMMUNICATIONS EQUIPMENT (1.9%)
Sprint 26,600 1,121
------
COMPUTERS & SERVICES (4.3%)
Compaq Computer* 4,600 214
IBM 18,900 2,032
Sun Microsystems 5,100 277
------
2,523
------
DRUGS (3.0%)
Baxter International 14,800 655
Bristol-Myers Squibb 8,000 658
Pharmacia & Upjohn 12,380 474
------
1,787
------
ELECTRICAL SERVICES (10.1%)
Consolidated Edison of
New York 15,900 467
DTE Energy 21,000 651
Edison International 14,400 230
Entergy 33,400 885
Long Island Lighting 53,600 871
Market
Value
Shares (000)
- --------------------------------------------------------
ELECTRICAL SERVICES CONT. (10.1%)
New York State Electric & Gas 39,800 $ 910
Pacific Gas and Electric 43,500 990
Unicom 33,900 932
------
5,936
------
ELECTRICAL TECHNOLOGY (1.6%)
Philips Electronics N.V. 16,900 606
Komag* 10,600 355
------
961
------
ENTERTAINMENT (1.5%)
King World Productions* 20,800 905
------
FINANCIAL SERVICES (9.6%)
A.G. Edwards & Sons 35,900 844
Bear Stearns 42,300 1,063
Merrill Lynch 16,700 1,008
Morgan Stanley Group 12,400 623
Paine Webber Group 31,400 655
Salomon 26,100 1,060
Travelers 6,800 418
------
5,671
------
FOOD, BEVERAGE & TOBACCO (1.7%)
IBP 36,600 979
------
GAS/NATURAL GAS (0.6%)
Williams 7,000 358
------
INSURANCE (10.3%)
Allstate 7,694 299
AMBAC 19,700 958
American Financial Group 19,000 582
American National Insurance 9,200 605
Cigna 9,400 1,066
Exel 4,500 324
Loew's 12,600 961
Safeco 14,100 465
U.S. Life 29,000 816
------
6,076
------
MACHINERY (3.3%)
Cummins Engine 19,900 931
Lam Research* 20,200 818
Timken 4,900 194
------
1,943
------
MEDICAL PRODUCTS & SERVICES (0.9%)
Becton, Dickinson 6,300 508
------
METALS & MINING (0.6%)
Cyprus AMAX Minerals 14,000 380
------
PAPER & PAPER PRODUCTS (1.3%)
Mead 13,300 740
------
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
A+P LARGE-CAPVALUE FUND Value
(Concluded) Shares (000)
- --------------------------------------------------------
PETROLEUM REFINING (12.2%)
Amoco 9,900 $ 723
Exxon 28,600 2,431
Imperial Oil 16,600 672
Mobil 16,500 1,898
Royal Dutch Petroleum 5,900 845
Valero Energy 22,000 635
------
7,204
------
PRINTING & PUBLISHING (0.6%)
Wallace Computer Services 5,700 337
------
REPAIR SERVICES (0.4%)
Ryder System 8,100 236
------
RETAIL (2.7%)
Gap 15,000 452
Nike 4,800 420
Reebok International 16,100 467
Mercantile Stores 3,900 243
------
1,582
------
RUBBER & PLASTIC (0.6%)
Goodyear Tire & Rubber 7,000 365
------
SEMI-CONDUCTORS/INSTRUMENTS (2.3%)
Applied Materials* 9,600 384
Cypress Semiconductor* 17,600 249
National Semiconductor* 46,400 731
------
1,364
------
SPECIALTY MACHINERY (0.4%)
Tecumseh Products, Cl A 4,100 232
------
STEEL & STEEL WORKS (2.1%)
Asarco 6,800 225
Phelps Dodge 13,400 985
------
1,210
------
TELEPHONES & TELECOMMUNICATION (9.4%)
Ameritech 25,000 1,459
Bell Atlantic 9,000 585
BellSouth 30,300 1,212
MCI Communications 38,200 1,125
NYNEX 5,900 290
Pacific Telesis Group 25,900 887
------
5,558
------
TOTAL COMMON STOCK
(Cost $52,105,430) 58,065
------
Shares/Face Market
Amount Value
(000) (000)
- --------------------------------------------------------
UNIT INVESTMENT TRUST (1.1%)
S&P 500 Depository Receipt 9,500 $ 621
-------
TOTAL UNIT INVESTMENT TRUST
(Cost $614,989) 621
-------
MONEY MARKET (0.2%)
Tempfund
5.220% $ 124 124
-------
TOTAL MONEY MARKET
(Cost $124,132) 124
-------
TOTAL INVESTMENTS (99.9%)
(Cost $52,844,551) 58,810
-------
OTHER ASSETS AND LIABILITIES (0.1%)
Other Assets and Liabilities, Net 75
-------
NET ASSETS:
Portfolio shares (unlimited authorization,
no par value) based on 4,839,306
outstanding shares of beneficial
interest 49,233
Undistributed net investment income 49
Accumulated net realized gain on
investments 3,638
Net unrealized appreciation on
investments 5,965
-------
TOTAL NET ASSETS (100.0%) $58,885
=======
Net Asset Value, Offering Price and
Redemption Price Per Share $ 12.17
=======
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30,1996 Unaudited
A+P
LARGE-CAP
VALUE FUND
-----------
11/01/95
TO 04/30/96
(000)
- --------------------------------------------------------------------------------
Investment Income:
Dividends ..................................................... $ 740
Interest ...................................................... 6
- --------------------------------------------------------------------------------
Total Investment Income ..................................... 746
- --------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ...................................... 113
Administrator Fees ............................................ 57
Custodian Fees ................................................ 2
Professional Fees ............................................. 19
Transfer Agent Fees ........................................... 6
Printing Fees ................................................. 4
Pricing ....................................................... 1
Trustee Fees .................................................. 1
Registration Fees ............................................. 1
Amortization of Deferred Organizational Costs ................. 1
Insurance and Other Fees ...................................... 2
- --------------------------------------------------------------------------------
Total Expenses .............................................. 207
- --------------------------------------------------------------------------------
Net Investment Income ..................................... 539
- --------------------------------------------------------------------------------
Net Realized Gain From Securities Sold ........................ 3,671
Net Unrealized Depreciation of Investment Securities .......... (27)
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments ............. 3,644
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From Operations .......... $ 4,183
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30,1996 (Unaudited) and the period ended
October 31.
11/01/95 11/01/94
TO 04/30/96 TO 10/31/95
(000) (000)
- --------------------------------------------------------------------------------
Investment Activities:
Net Investment Income ............................. $ 539 $ 910
Net Realized Gain on Securities Sold .............. 3,671 5,858
Net Unrealized Appreciation (Depreciation) of
Investment Securities ........................... (27) 4,742
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from
Operations ................................... 4,183 11,510
- --------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ............................. (546) (891)
Realized Capital Gains ............................ (4,614) --
- --------------------------------------------------------------------------------
Total Distributions ............................. (5,160) (891)
- --------------------------------------------------------------------------------
Capital Share Transactions:
Shares Issued ..................................... 227 3,973
Shares Issued in Lieu of Cash Distributions ....... 5,161 891
Shares Redeemed ................................... (187) (1,414)
- --------------------------------------------------------------------------------
Increase in Net Assets From Capital Share
Transactions .................................... 5,201 3,450
- --------------------------------------------------------------------------------
Total Increase in Net Assets .................... 4,224 14,069
- --------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................. 54,661 40,592
- --------------------------------------------------------------------------------
End of Period ................................... $ 58,885 $ 54,661
================================================================================
Shares Issued and Redeemed:
Issued ............................................ 19 361
Issued in Lieu of Cash Distributions .............. 442 81
Redeemed .......................................... (15) (126)
================================================================================
Net Increase in Share Transactions ................ 446 316
- --------------------------------------------------------------------------------
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30, 1996 (Unaudited) and the periods ended
October 31.
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Net Realized and Net Net
Asset Unrealized Distributions Distributions Asset Assets
Value Net Gains or from Net from Value End
Beginning Investment Losses) on Investment Capital End Total of Period
of Period Income Securities Income Gains of Period Return (000)
--------- ---------- ---------- ---------- ------------- --------- ------ ---------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------
A+P LARGE-CAP VALUE FUND
- ------------------------
1996 $12.44 0.11 0.78 (0.11) (1.05) $12.17 7.69%(DAGGER) $58,885
1995 $ 9.96 0.21 2.48 (0.21) -- $12.44 27.31% $54,661
1994(2) $10.00 0.21 (0.05) (0.20) -- $ 9.96 1.63%(DAGGER) $40,592
</TABLE>
<TABLE>
<CAPTION>
Ratio
Ratio of Net
Ratio of Expenses Income
Ratio of Net to Average to Average
of Expenses Income Net Assets Net Assets Portfolio Average
to Average to Average (Excluding (Excluding Turnover Commission
Net Assets Net Assets Waivers) Waivers) Rate Rate(1)
----------- ---------- ---------- ---------- --------- ----------
<C> <C> <C> <C> <C> <C> <C>
- ------------------------
A+P LARGE-CAP VALUE FUND
- ------------------------
1996 0.73%* 1.90%* 0.73%* 1.90%* 67.01% $0.03
1995 0.72% 1.96% 0.72% 1.96% 126.47% --
1994(2) 0.70%* 2.13%* 0.80%* 2.03%* 79.23% --
<FN>
* Annualized
(DAGGER) Total return is for the period indicated and has not been annualized.
(1) Average commission rate paid per share for the security purchases and sales
made during the period.
(2) The A+P Large-Cap Value Fund commenced operations on November 12, 1993.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
1. ORGANIZATION:
THE ADVISORS' INNER CIRCLE FUND (the "Trust") is organized as a Massachusetts
business trust under a Declaration of Trust dated July 18, 1991. The Trust is
registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company with nine portfolios. The
financial statements herein are those of the A+P Large-Cap Value Fund (the
"Fund"). The financial statements of the remaining portfolios are presented
separately. The assets of each portfolio are segregated, and a Shareholder's
interest is limited to the portfolio in which shares are held. The Funds'
prospectus provides a description of each Fund's investment objectives, policies
and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Fund.
Security Valuation -- Investments in equity securities which are traded on
a national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt
obligations exceeding sixty days to maturity for which market quotations
are readily available are valued at the most recently quoted bid price.
Debt obligations with sixty days or less remaining until maturity may be
valued at their amortized cost, which approximates market value.
Federal Income Taxes -- It is the Fund's intention to qualify as a
regulated investment company by complying with the appropriate provisions
of the Internal Revenue Code of 1986, as amended. Accordingly, no provision
for Federal income taxes is required.
Security Transactions and Related Income -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income
is recognized on the accrual basis. Costs used in determining realized
gains and losses on the sales of investment securities are those of the
specific securities sold during the respective holding period.
Net Asset Value Per Share -- The net asset value per share of the Fund is
calculated on each business day, by dividing the total value of the Fund's
assets, less liabilities, by the number of shares outstanding.
Other -- Expenses that are directly related to the Fund are charged to the
Fund. Other operating expenses of the Trust are prorated to the Fund on the
basis of relative daily net assets.
Distributions from net investment income are declared daily and paid to
Shareholders quarterly. Any net realized capital gains are distributed to
Shareholders at least annually.
Effective 1994, generally accepted accounting principles require that
differences between undistributed net investment income or accumulated net
realized capital gains for financial reporting and tax purposes, if
permanent, be reclassified to/from paid in capital. The Fund was not
affected by this standard.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reported period. Actual results could differ from those
estimates.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:
The Fund incurred organization costs of approximately $13,000. These costs have
been deferred and are being amortized on a straight line basis over a period of
sixty months commencing with operations. Organization costs include legal fees
of approximately $4,000 for organizational work performed by a law firm of which
a trustee of the Trust is a partner and two officers of the Trust are partners.
In the event any of the initial shares of the Fund are redeemed by any holder
thereof during the period that the Fund is amortizing its organizational
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
costs, the redemption proceeds payable to the holder thereof by the
Fund will be reduced by the unamortized organizational costs in the same ratio
as the number of initial shares being redeemed bears to the number of initial
shares outstanding at the time of redemption.
Certain officers of the Trust are also officers of SEI Financial Management
Corporation (the "Administrator") and/or SEI Financial Services Company (the
"Distributor"). Such officers are paid no fees by the Trust for serving as
officers of the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an Administration Agreement dated
November 14, 1991 as amended and restated on May 17, 1994, under which the
Administrator provides management and administrative services for an annual fee
equal to the higher of $75,000 or .20% of the Fund's average daily net assets up
to $100 million, and .15% on the next $100 million and .10% on assets in excess
of $200 million.
DST Systems Inc., (the "Transfer Agent") serves as the transfer agent and
dividend disbursing agent for the Fund under a transfer agency agreement with
the Trust.
The Trust and Distributor are parties to a Distribution Agreement dated November
14, 1991 as amended and restated on August 8, 1994. The Distributor receives no
fees for its distribution services under this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Aronson + Partners (the "Adviser") are parties to an Investment
Advisory Agreement dated October 15, 1993 under which the Adviser receives an
annual fee equal to .40% of the Fund's average daily net assets. The Adviser has
voluntarily agreed to waive all or a portion of its fees (and to reimburse the
Fund's expenses) in order to limit operating expenses to not more than .75% of
the average daily net assets of the Fund. Fee waivers and expense reimbursements
are voluntary and may be terminated at any time.
CoreStates Bank, N.A. acts as custodian (the "Custodian") for the Fund. Fees of
the Custodian are being paid on the basis of the net assets of the Fund. The
Custodian plays no role in determining the investment policies of the Fund or
which securities are to be purchased or sold by the Fund.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six months ended April 30, 1996 are as follows:
A+P
LARGE-CAP
VALUE FUND
(000)
-----------
Purchases
Government..................... $ 0
Other.......................... 38,643
Sales
Government..................... $ 0
Other.......................... 38,100
At April 30, 1996, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Fund
at April 30, 1996, are as follows:
A+P
LARGE-CAP
VALUE FUND
(000)
------------
Aggregate gross unrealized
appreciation................. $7,379
Aggregate gross unrealized
depreciation................. (1,414)
-------
Net unrealized appreciation....... $5,965
=======
<PAGE>
NOTICE TO SHAREHOLDERS
OF
THE ADVISORS' INNER CIRCLE FUND
Unaudited
Shareholder's Voting Results
- ----------------------------
There was a special meeting of shareholders on December 1, 1995 for the
shareholders of the A+P Large Cap Fund to approve a restatement of the
investment objective of the Portfolio to provide that the Portfolio seeks total
return.
Proposal Shares Voted
-------- ------------
For 3,644,366
Against 0
Abstain 0
<PAGE>
A+P-F-004-03
