THE ADVISORS' INNER CIRCLE FUND
CLOVER CAPITAL EQUITY VALUE FUND
CLOVER CAPITAL FIXED INCOME FUND
CLOVER CAPITAL SMALL CAP VALUE FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
AS OF APRIL 30, 1997
THIS INFORMATION MUST BE PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS FOR
EACH FUND DESCRIBED.
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL EQUITY VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 82.6%
BROADCASTING, NEWSPAPERS & ADVERTISING -- 8.2%
Comcast UK Cable Partners Ltd* ................... 309,000 $ 3,515
Comcast, Special, Cl A ........................... 285,000 4,489
-------
8,004
-------
COMMUNICATIONS EQUIPMENT -- 1.0%
California Microwave* ............................ 75,000 975
-------
COMPUTERS & SERVICES -- 7.3%
Marcam* .......................................... 342,400 4,023
Sungard Data Systems* ............................ 70,600 3,133
-------
7,156
-------
ENTERTAINMENT -- 4.5%
King World Productions* .......................... 120,000 4,380
-------
FOOD, BEVERAGE & TOBACCO -- 3.7%
RJR Nabisco ...................................... 60,000 1,785
United Biscuits Holdings ADR ..................... 500,000 1,790
-------
3,575
-------
MACHINERY -- 3.9%
Pall ............................................. 165,000 3,816
-------
MEASURING DEVICES -- 1.9%
Wheelabrator Technologies ........................ 150,000 1,894
-------
MEDICAL PRODUCTS & SERVICES -- 8.9%
Medpartners* ..................................... 414,850 7,571
Patient Infosystems* ............................. 185,000 1,110
-------
8,681
-------
MISCELLANEOUS BUSINESS SERVICES -- 2.3%
Advo* ............................................ 186,400 2,260
-------
PETROLEUM & FUEL PRODUCTS -- 2.3%
Union Texas Petroleum ............................ 120,000 2,265
-------
PRINTING & PUBLISHING -- 1.3%
American Greetings, Cl A ......................... 40,000 1,280
-------
REAL ESTATE INVESTMENT TRUSTS -- 5.4%
Chateau Properties ............................... 72,940 1,906
Manufactured Home Communities .................... 75,000 1,575
Storage Trust Realty ............................. 75,000 1,800
-------
5,281
-------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Shares/Face Market
Amount Value
CLOVER CAPITAL EQUITY VALUE FUND (000) (000)
- --------------------------------------------------------------------------------
RETAIL -- 6.9%
Cash America International ....................... 191,000 $ 1,695
Department 56* ................................... 80,000 1,500
Designs* ......................................... 167,700 818
Kroger* .......................................... 100,000 2,750
--------
6,763
--------
RUBBER & PLASTIC -- 3.0%
Hanna ............................................ 140,000 2,922
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.9%
Amphenol, Cl A* .................................. 170,000 4,314
IEC Electronics* ................................. 60,000 532
--------
4,846
--------
TELEPHONES & TELECOMMUNICATION -- 8.2%
COMSAT ........................................... 70,000 1,452
Frontier ......................................... 415,000 6,588
--------
8,040
--------
WHOLESALE -- 8.9%
Avnet ............................................ 80,000 4,870
Pioneer Standard Electronics ..................... 55,000 674
Wyle Electronics ................................. 95,000 3,218
--------
8,762
--------
TOTAL COMMON STOCK (Cost $79,888) .................. 80,900
--------
CONVERTIBLE BOND -- 0.6%
Meditrust, Convertible to 27.6396 Shares
7.500%, 03/01/01 ............................ $ 600 617
--------
TOTAL CONVERTIBLE BOND (Cost $591) ................. 617
--------
CORPORATE OBLIGATIONS -- 3.5%
Canandaigua Wine
8.750%, 12/15/03 ............................ 1,500 1,507
Tenet Healthcare
8.000%, 01/15/05 ............................ 2,000 1,965
--------
TOTAL CORPORATE OBLIGATIONS (Cost $3,444) .......... 3,472
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Face Market
Amount Value
CLOVER CAPITAL EQUITY VALUE FUND (000) (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 13.9%
Lehman Brothers, 4.92%, dated 04/30/97,
matures 05/01/97, repurchase price
$13,597,718 (collateralized by
U.S. Treasury Bond, par value
$11,007,686, 10.75%, matures
08/15/05: market value $13,960,229) ................. $13,596 $13,596
--------
TOTAL REPURCHASE AGREEMENT (Cost $13,596) ............... 13,596
--------
TOTAL INVESTMENTS-- 100.6% (Cost $97,519) ............... 98,585
--------
OTHER ASSETS AND LIABILITIES, NET-- (0.6%) ............... (573)
--------
NET ASSETS:
Portfolio Shares (unlimited authorization -- no par
value)based on 6,221,636 outstanding shares of
beneficial interest ................................... 87,841
Undistributed net investment income ................... 359
Accumulated net realized gain on investmen ............ 8,746
Net unrealized appreciation on investments ............ 1,066
--------
TOTAL NET ASSETS-- 100.0% $98,012
========
Net Asset Value, Offering and Redemption Price Per Share $ 15.75
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENTS OF NET ASSETS ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Face Market
Amount Value
CLOVER CAPITAL FIXED INCOME FUND (000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS-- 50.3%
BEVERAGES-- 9.3%
Anheuser Busch
6.750%, 08/01/03 ............................ $ 750 $ 742
Bass America
6.750%, 08/01/99 ............................ 450 451
Canandiagua Wine
8.750%, 12/15/03 ............................ 850 854
--------
2,047
--------
ENTERTAINMENT -- 4.9%
Mattel
6.750%, 05/15/00 ............................ 350 349
Walt Disney
6.375%, 03/30/01 ............................ 750 739
--------
1,088
--------
FINANCE -- 4.2%
General Motors Acceptance
7.750%, 01/15/99 ............................ 400 408
Texaco Capital MTN
7.420%, 07/15/02 ............................ 500 512
--------
920
--------
FOOD/MISCELLANEOUS -- 1.1%
Grand Metropolitan Investment
6.500%, 09/15/99 ............................ 250 249
--------
INDUSTRIAL -- 0.9%
Masco
6.125%, 09/15/03 ............................. 200 189
--------
MEDICAL -- 10.7%
Abbott Laboratories
5.600%, 10/01/03 ............................ 700 653
Eli Lilly
6.250%, 03/15/03 ............................. 750 728
Tenet Healthcare
8.000%, 01/15/05 ............................. 1,000 983
--------
2,364
--------
PUBLISHING -- 2.9%
McGraw-Hill
9.430%, 09/01/00 ............................... 600 644
--------
RETAIL -- 2.3%
Dayton Hudson
7.500%, 03/01/99 ............................ 500 508
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Face Market
Amount Value
CLOVER CAPITAL FIXED INCOME FUND (000) (000)
- --------------------------------------------------------------------------------
UTILITIES -- 14.0%
Detroit Edison
6.560%, 05/01/01 ............................ $ 500 $ 493
Florida Power & Light
5.500%, 07/01/99 ............................ 800 782
General Telephone of Ohio
7.625%, 04/01/01 ............................ 740 746
Northern Illinois Gas
5.875%, 05/01/00 ............................ 400 388
Northern States Power
7.875%, 10/01/01 ............................ 650 673
--------
3,082
--------
TOTAL CORPORATE OBLIGATIONS (Cost $11,177) 11,091
--------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 17.9%
FHLMC, Pool # 252641
8.000%, 07/01/07 ............................ 61 62
FHLMC, Pool # 277449
8.500%, 09/01/09 ............................ 33 34
FHLMC, REMIC,
Series 1546, Cl H
7.000%, 12/15/22 ............................ 390 368
FNMA, REMIC,
Series 1993-118 G
6.500%, 11/25/06 ............................ 1,000 989
FNMA, REMIC,
Series 1993-95, Cl PE
6.500%, 10/25/07 ............................ 750 740
FNMA, REMIC,
Series G93-21, Cl VE
6.600%, 11/25/07 ............................ 184 173
FNMA, Pool # 369214
5.000%, 04/01/09 ............................ 446 406
GNMA, Pool # 13125
8.000%, 10/15/06 ............................ 38 40
GNMA, Pool # 196477
10.000%, 04/15/10 ............................ 101 109
GNMA, Pool # 202886
8.000%, 03/15/17 ............................ 245 249
GNMA, Pool # 187899
8.000%, 05/15/17 ............................ 255 259
GNMA, Pool # 221235
8.500%, 07/15/17 ............................ 99 103
GNMA, Pool # 331786
8.000%, 08/15/22 ............................ 417 423
--------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS (Cost $4,005) 3,955
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 19 Unaudited
Face Market
Amount Value
CLOVER CAPITAL FIXED INCOME FUND (000) (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 20.7%
U.S. Treasury Bonds
9.375%, 02/15/06 ............................ $ 400 $ 470
7.500%, 11/15/16 ............................ 1,000 1,048
8.000%, 11/15/21 ............................ 750 831
7.250%, 08/15/22 ............................ 600 613
U.S. Treasury Notes
7.500%, 11/15/01 ............................ 100 104
7.250%, 05/15/04 ............................ 150 155
7.500%, 02/15/05 ............................ 300 314
6.500%, 05/15/05 ............................ 550 542
6.500%, 08/15/05 ............................ 500 492
--------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $4,584) ...... 4,569
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.2%
FNMA, MTN
6.250%, 01/14/04 ............................ 250 238
Private Export Funding
6.620%, 10/01/05 ............................ 250 243
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $479) 481
--------
CONVERTIBLE BOND -- 2.7%
Meditrust, Convertible To 27.6396 Shares
7.500%, 03/01/01 ............................ 570 586
--------
TOTAL CONVERTIBLE BOND (Cost $574) ................. 586
--------
REPURCHASE AGREEMENT -- 5.6%
Lehman Brothers, 4.92%, dated 04/30/97,
matures 05/01/97, repurchase price
$1,229,717 (collateralized by
U.S. Treasury Bond, par value
$995,484, 10.75%, matures
08/15/05: market value $1,262,501) ............. 1,230 1,230
--------
TOTAL REPURCHASE AGREEMENT (Cost $1,230) ........... 1,230
--------
TOTAL INVESTMENTS-- 99.4% (Cost $22,049) ........... 21,912
--------
OTHER ASSETS AND LIABILITIES, NET-- 0.6% ............ 122
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL FIXED INCOME FUND (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited authorization -- no par value)
based on 2,289,373 outstanding shares of beneficial interest $22,154
Undistributed net investment income .......................... 11
Accumulated net realized gain on investments ................. 6
Net unrealized depreciation on investments ................... (137)
-------
TOTAL NET ASSETS-- 100.0% ....................................... 22,034
=======
Net Asset Value, Offering and Redemption Price Per Share ........ $ 9.62
=======
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA-- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL SMALL CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK -- 97.8%
AGRICULTURE -- 0.2%
Cagle's, Cl A .................................... 1,600 $ 18
--------
AIR TRANSPORTATION -- 1.8%
Mesa Air Group* .................................. 20,000 106
Tower Air ........................................ 10,000 31
--------
137
--------
APPAREL/TEXTILES -- 3.4%
Crown Crafts ..................................... 8,000 89
Kellwood ......................................... 4,700 112
Westpoint Stevens* ............................... 1,400 55
--------
256
--------
AUTOMOTIVE -- 3.2%
Arvin Industries ................................. 3,300 86
Exide ............................................ 6,600 106
R & B* ........................................... 6,400 46
--------
238
--------
BEAUTY PRODUCTS -- 2.5%
Jean Philippe Fragrances* ........................ 19,500 112
Parlux Fragrances* ............................... 31,000 74
--------
186
--------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 4.2%
Comcast, Special, Cl A ........................... 10,300 162
Comcast UK Cable Partners Ltd* ................... 9,600 109
Jones Intercable, Cl A* .......................... 5,700 49
--------
320
--------
BUILDING & CONSTRUCTION -- 1.1%
M/I Schottenstein Homes* ......................... 7,800 81
--------
CHEMICALS -- 2.5%
Envirodyne Industries* ........................... 16,900 110
Pioneer, Cl A* ................................... 12,198 76
--------
186
--------
COMMUNICATIONS EQUIPMENT -- 5.7%
Aseco* ........................................... 9,400 85
California Microwave* ............................ 5,500 71
Performance Technologies* ........................ 16,000 178
TII Industries* .................................. 19,200 96
--------
430
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL SMALL CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMPUTERS & SERVICES -- 6.0%
American List .................................... 4,400 $ 102
Bell & Howell* ................................... 5,000 118
Key Tronic* ...................................... 5,300 30
Metatec, Cl A* ................................... 25,300 104
Proxima* ......................................... 3,100 16
Sequent Computer Systems* ........................ 5,200 83
--------
453
--------
ENTERTAINMENT -- 1.1%
Harvey's Casinos Resorts ......................... 5,400 82
--------
ENVIRONMENTAL SERVICES -- 1.0%
OHM* ............................................. 9,900 73
--------
FOOD, BEVERAGE & TOBACCO -- 2.0%
Canandaigua Wine, Cl A* .......................... 3,100 79
Chock Full O'Nuts* ............................... 13,100 75
--------
154
--------
INSURANCE -- 1.4%
Fremont General .................................. 1,900 53
Rightchoice Managed Care* ........................ 3,400 37
Stewart Information Services ..................... 1,000 19
--------
109
--------
LEASING & RENTING -- 2.0%
Alrenco* ......................................... 6,700 69
Cruise America* .................................. 17,000 81
--------
150
--------
LEISURE PRODUCTS -- 1.0%
Riddell Sports* .................................. 21,500 78
--------
MACHINERY -- 3.6%
Goulds Pumps ..................................... 3,400 124
Hardinge ......................................... 3,000 76
Interlake* ....................................... 10,500 38
NACCO Industries, Cl A ........................... 800 37
--------
275
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL SMALL CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 3.6%
Hanger Orthopedic Group* ......................... 6,900 $ 47
Mariner Health Group* ............................ 10,200 89
Medpartners* ..................................... 4,200 77
Patient Infosystems* ............................. 10,000 60
--------
273
--------
MISCELLANEOUS BUSINESS SERVICES -- 6.5%
Advo* ............................................ 14,700 178
Isomedix* ........................................ 2,100 29
Marcam* .......................................... 22,000 258
Pitt Des Moines .................................. 1,050 28
--------
493
--------
PAPER & PAPER PRODUCTS -- 4.4%
Boise Cascade .................................... 900 30
Continental Can* ................................. 4,700 83
Mail-Well* ....................................... 1,200 33
Paragon Trade Brands* ............................ 6,600 106
Tranzonic ........................................ 5,200 83
--------
335
--------
PETROLEUM & FUEL PRODUCTS -- 2.2%
Bellwether Exploration* .......................... 8,900 78
HS Resources* .................................... 7,500 85
--------
163
--------
PRINTING & PUBLISHING -- 1.3%
Cadmus Communications ............................ 7,900 101
--------
PROFESSIONAL SERVICES -- 5.2%
Baker (Michael)* ................................. 14,500 101
Children's Discovery Centers* .................... 25,400 121
Failure Group* ................................... 13,700 84
Moneygram Payment Systems* ....................... 8,500 83
--------
389
--------
REAL ESTATE INVESTMENT TRUST -- 1.2%
Storage Trust Realty ............................. 3,800 91
--------
RETAIL -- 15.9%
APS Holding, Cl A* ............................... 12,500 119
BMC West* ........................................ 6,500 70
Cash America International ....................... 20,500 182
Cato, Cl A ....................................... 12,000 55
Department 56* ................................... 5,400 101
Designs* ......................................... 28,800 140
Elxsi* ........................................... 10,000 63
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Shares/ Market
Face Amount Value
CLOVER CAPITAL SMALL CAP VALUE FUND (000) (000)
- --------------------------------------------------------------------------------
Ezcorp* .......................................... 9,000 $ 75
Hi-Lo Automotive* ................................ 26,000 78
Movie Gallery* ................................... 5,000 26
Payless Cashways* ................................ 19,700 34
Roadhouse Grill* ................................. 19,000 114
Service Merchandise* ............................. 15,000 39
Tandycrafts* ..................................... 22,200 108
-------
1,204
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.7%
Exar* ............................................ 6,000 102
IEC Electronics* ................................. 19,200 170
Tegal* ........................................... 12,700 79
--------
351
--------
TELEPHONES & TELECOMMUNICATION -- 3.1%
Frontier ......................................... 10,000 159
Midcom Communications* ........................... 10,500 76
--------
235
--------
TRUCKING -- 1.9%
Builders Transport* .............................. 10,300 31
Celadon Group* ................................... 4,500 49
Old Dominion Freight Line* ....................... 4,700 60
Trism* ........................................... 1,100 3
--------
143
--------
WHOLESALE -- 5.1%
JPE* ............................................. 7,800 52
Moore Medical* ................................... 5,000 51
Pioneer Standard Electronics ..................... 6,500 80
Syncor International* ............................ 2,100 17
Wyle Laboratories ................................ 5,400 183
--------
383
--------
TOTAL COMMON STOCK (Cost $7,505) ................... 7,387
--------
REPURCHASE AGREEMENT -- 2.6%
Lehman Brothers, 4.92%, dated 04/30/97,
matures 05/01/97, repurchase price
$195,822 (collateralized by
U.S. Treasury Bond, par value
$158,521, 10.75%, matures
08/15/05: market value $201,042) ............... $ 196 196
--------
TOTAL REPURCHASE AGREEMENT (Cost $196) ............. 196
--------
<PAGE>
STATEMENTS OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
Market
Value
CLOVER CAPITAL SMALL CAP VALUE FUND (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS-- 100.4% (Cost $7,701) ..................... $7,583
------
OTHER ASSETS AND LIABILITIES, NET-- -0.4% ..................... (28)
------
NET ASSETS:
Portfolio Shares (unlimited authorization -- no par value)
based on 664,592 outstanding shares of beneficial interest 7,339
Distributions in excess of net investment income ............ (15)
Accumulated net realized gain on investments ................ 349
Net unrealized depreciation on investments .................. (118)
------
TOTAL NET ASSETS-- 100.0% ...................................... $7,555
======
Net Asset Value, Offering and Redemption Price Per Share .... $11.37
======
* NON-INCOME PRODUCING SECURITY
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30, 1997 Unaudited
CLOVER CAPITAL CLOVER CAPITAL CLOVER CAPITAL
EQUITY VALUE FIXED INCOME SMALL CAP VALUE
FUND FUND FUND
-------------- -------------- ---------------
(000) (000) (000)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividend income ................................. $ 805 $ -- $ 18
Interest income ................................. 396 710 11
- ------------------------------------------------------------------------------------------------------
Total Investment Income 1,201 710 29
- ------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees ........................ 346 47 27
Investment advisory fee waiver .................. (28) (23) (27)
Contributions by adviser ........................ -- -- (8)
Administrator fees .............................. 94 25 25
Custodian fees .................................. 4 3 2
Transfer agent fees ............................. 40 9 6
Professional fees ............................... 20 6 4
Trustee fees .................................... 8 3 2
Registration fees ............................... 15 6 9
Printing fees ................................... 13 3 2
Insurance and other fees ........................ 2 1 --
Amortization of deferred organizational costs ... -- -- 2
- ------------------------------------------------------------------------------------------------------
Total expenses ................................ 514 80 44
- ------------------------------------------------------------------------------------------------------
Net investment income (loss) .................. 687 630 (15)
- ------------------------------------------------------------------------------------------------------
Net realized gain from securities sold .......... 8,709 14 346
Net unrealized depreciation
of investment securities ...................... (8,195) (303) (195)
- ------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments .............................. 514 (289) 151
- ------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations ............................... $1,201 $341 $136
- ------------------------------------------------------------------------------------------------------
</TABLE>
AMOUNTS DESIGNED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
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, 1997
(Unaudited) and the period ended October 31, 1996.
<TABLE>
<CAPTION>
CLOVER CAPITAL CLOVER CAPITAL CLOVER CAPITAL
EQUITY VALUE FIXED INCOME SMALL CAP VALUE
FUND FUND FUND
-------------------------- -------------------------- --------------------------
11/01/96 11/01/95 11/01/96 11/01/95 11/01/96 02/29/96 (2)
TO 04/30/97 TO 10/31/96 TO 04/30/97 TO 10/31/96 TO 04/30/97 TO 10/31/96
(000) (000) (000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activities:
Net investment income
(loss) .................. $ 687 $ 911 $ 630 $ 1,029 $ (15) $ --
Net realized gain from
securities sold ......... 8,709 3,967 14 208 346 67
Net unrealized appreciation
(depreciation) of investment
securities .............. (8,195) 5,039 (303) (166) (195) 77
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations ........ 1,201 9,917 341 1,071 136 144
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income ..... (385) (992) (630) (1,030) -- (4)
Capital gains ............. (3,930) (4,207) (204) (76) (60) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions ..... (4,315) (5,199) (834) (1,106) (60) (4)
- ---------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Shares issued ............. 20,732 35,078 4,372 8,594 3,385 4,664
Shares issued in lieu of
cash distributions ...... 4,211 5,130 794 1,094 59 3
Shares redeemed ........... (8,867) (11,523) (2,370) (4,607) (460) (312)
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets
derived from capital
share transactions ...... 16,076 28,685 2,796 5,081 2,984 4,355
- ---------------------------------------------------------------------------------------------------------------------
Total increase in
net assets ............ 12,962 33,403 2,303 5,046 3,060 4,495
- ---------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period ....... 85,050 51,647 19,731 14,685 4,495 --
- ---------------------------------------------------------------------------------------------------------------------
End of period ............. $98,012 $85,050 $22,034 $19,731 $7,555 $4,495
=====================================================================================================================
(1) Shares issued and redeemed:
Issued .................. 1,250 2,281 449 877 285 442
Issued in lieu of cash
distributions ......... 257 349 82 112 5 1
Redeemed ................ (535) (758) (244) (471) (39) (29)
- ---------------------------------------------------------------------------------------------------------------------
Net increase in share
transactions ............ 972 1,872 287 518 251 414
=====================================================================================================================
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
(2) THE CLOVER CAPITAL SMALL CAP VALUE FUND COMMENCED OPERATIONS ON FEBRUARY 28,
1996.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
This page is left intentionally blank.
<PAGE>
FINANCIAL HIGHLIGHTS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30, 1997 (Unaudited) and the periods ended
October 31.
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
NET REALIZED AND NET
ASSET UNREALIZED DISTRIBUTIONS ASSET
VALUE NET GAINS FROM NET FROM VALUE
BEGINNING INVESTMENT OR (LOSSES) INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME (LOSS) ON SECURITIES INCOME GAINS OF PERIOD RETURN
- -----------------------------------------------------------------------------------------------------------------------
CLOVER CAPITAL EQUITY VALUE FUND
- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 $16.20 0.11 0.25 (0.07) (0.74) $15.75 2.06%+
1996 $15.29 0.19 2.15 (0.22) (1.21) $16.20 16.47%
1995 $13.74 0.24 2.46 (0.22) (0.93) $15.29 21.25%
1994 $11.94 0.08 2.01 (0.08) (0.21) $13.74 17.80%
1993 $10.45 0.10 1.54 (0.10) (0.05) $11.94 15.83%
1992 (1) $10.00 0.10 0.44 (0.09) -- $10.45 5.94%*
CLOVER CAPITAL FIXED INCOME FUND
- --------------------------------
1997 $ 9.85 0.29 (0.13) (0.29) (0.10) $ 9.62 1.61%+
1996 $ 9.89 0.59 0.01 (0.59) (0.05) $ 9.85 6.26%
1995 $ 9.14 0.58 0.77 (0.58) (0.02) $ 9.89 15.27%
1994 $10.85 0.57 (0.92) (0.57) (0.79) $ 9.14 (3.54)%
1993 $10.23 0.61 0.72 (0.61) (0.10) $10.85 13.40%
1992 (1) $10.00 0.56 0.23 (0.56) -- $10.23 9.05%*
CLOVER CAPITAL SMALL CAP VALUE FUND
- -----------------------------------
1997 $10.87 (0.02) 0.65 -- (0.13) $11.37 5.74%+
1996 (2) $10.00 0.02 0.88 (0.03) -- $10.87 8.97%+
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO NET INCOME
OF EXPENSES OR (LOSS)
NET RATIO TO AVERAGE TO AVERAGE
ASSETS RATIO OF NET INCOME NET ASSETS NET ASSETS
END OF EXPENSES OR (LOSS) (EXCLUDING (EXCLUDING PORTFOLIO AVERAGE
OF PERIOD TO AVERAGE TO AVERAGE WAIVERS AND WAIVERS AND TURNOVER COMMISSION
(000) NET ASSETS NET ASSETS CONTRIBUTIONS) CONTRIBUTIONS) RATE RATE(3)
- ----------------------------------------------------------------------------------------------------------
CLOVER CAPITAL EQUITY VALUE FUND
- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 $98,012 1.10%* 1.47%* 1.16%* 1.41%* 31.14% $0.0579
1996 $85,050 1.10% 1.32% 1.21% 1.21% 51.36% $0.0577
1995 $51,647 1.10% 1.82% 1.20% 1.72% 84.76% n/a
1994 $25,249 1.14% 0.71% 1.30% 0.55% 58.44% n/a
1993 $15,070 1.18% 0.89% 1.51% 0.56% 82.51% n/a
1992 (1) $ 9,005 1.20%* 1.15%* 2.09%* 0.26%* 31.00% n/a
CLOVER CAPITAL FIXED INCOME FUND
- --------------------------------
1997 $22,034 0.77%* 6.02%* 0.99%* 5.80%* 7.70% n/a
1996 $19,731 0.80% 6.00% 1.11% 5.69% 24.52% n/a
1995 $14,685 0.80% 6.13% 1.40% 5.53% 35.84% n/a
1994 $ 9,762 0.80% 5.88% 1.46% 5.22% 11.11% n/a
1993 $ 7,966 0.78% 5.62% 1.29% 5.11% 68.61% n/a
1992 (1) $ 8,982 0.80%* 6.28%* 1.76%* 5.32%* 113.00% n/a
CLOVER CAPITAL SMALL CAP VALUE FUND
- -----------------------------------
1997 $ 7,555 1.40%* (0.48)%* 2.50%* (1.58)%* 26.96% $0.0509
1996 (2) $ 4,495 1.40%* (0.03)%* 5.29%* (3.92)%* 14.17% $0.0470
<FN>
* ANNUALIZED
+ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) THE CLOVER CAPITAL FIXED INCOME FUND AND THE CLOVER CAPITAL EQUITY VALUE
FUND COMMENCED OPERATIONS ON DECEMBER 6, 1991.
(2) THE CLOVER CAPITAL SMALL CAP VALUE FUND COMMENCED OPERATIONS ON FEBRUARY 28, 1996.
(3) AVERAGE COMMISSION RATE PAID PER SHARE FOR THE SECURITY PURCHASES AND SALES MADE DURING THE PERIOD.
PRESENTATION OF THE RATE IS ONLY REQUIRED FOR FISCAL YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
</FN>
</TABLE>
The accompaning notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 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 included herein are those of the Clover Capital Equity
Value Fund, the Clover Capital Fixed Income Fund, and the Clover Capital Small
Cap Value Fund (the "Funds"). 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.
On March 17, 1997 the Board of Trustees of the Advisors' Inner Circle Fund
approved a tax-free reorganization for the Funds under which all of the assets
and liabilities of the Funds will be transferred to the TIPS Trust, a
Massachusetts' business trust. A shareholder meeting was held on June 10, 1997
and adjourned until June 17, 1997. At that time, this reorganization was
approved by the Funds' shareholders. This transfer will take place on June 25,
1997. In conjunction with the reorganization, the Funds have changed their
fiscal year end from October 31, 1997 to September 30, 1997.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
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 each 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
provisions for Federal income taxes are 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 adjusted for the accretion and amortization of
purchase discounts and premiums during the respective holding period.
Purchase discounts and premiums on securities held by the Funds are
accreted and amortized to maturity using the scientific interest method,
which approximates the effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of the default of the counterparty. If the counter-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
party defaults and the value of the collateral declines or if the
counterparty enters an insolvency proceeding, realization of the collateral
by the Funds may be delayed or limited.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day by dividing the total value of each Fund's
assets, less liabilities, by the number of shares outstanding.
EXPENSES -- Expenses that are directly related to one of the Funds are
charged to that Fund. Other operating expenses of the Trust are prorated to
the Funds on the basis of relative daily net assets.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid quarterly to Shareholders for the Equity Value Fund
and the Small Cap Value Fund and declared daily and paid monthly for the
Fixed Income Fund. Any net realized capital gains on sales of securities
are distributed to Shareholders at least annually.
Distributions from net investment income and net realized capital gains are
determined in accordance with the U.S. Federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they
are charged or credited to paid-in-capital in the period that the
differences arise. These classifications have no effect on net assets or
net asset value.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported 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 reporting period. Actual results could differ from
those estimates.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:
The Clover Capital Small Cap Value Fund incurred organization costs of
approximately $18,000. These costs have been capitalized by the Fund and are
being amortized over sixty months commencing with operations. These costs
include legal fees of approximately $13,000 for organizational work performed by
a law firm of which a trustee of the trust is a partner and two officers of the
Fund are partners. In the event any of the initial shares of a Fund are redeemed
by any holder thereof during the period that such Fund is amortizing its
organizational 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 Fund Resources (the
"Administrator") and/or SEI Investments Distribution Co. (the "Distributor").
Such officers are paid no fees by the Trust for serving as officers of the
Trust.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an Administration Agreement,
under which the Administrator provides management and administrative services
for an annual fee of .20% of the average daily net assets of each of the Funds.
There is a minimum annual fee of $50,000 per Fund payable to the Administrator
for services rendered to the Funds under the Administration Agreement.
DST Systems, Inc. (the "Transfer Agent") serves as the transfer agent and
dividend distributing agent for the Funds under a transfer agency agreement with
the Trust.
The Trust and the Distributor are parties to a Distribution Agreement. The
Distributor receives no fees for its distribution services under this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Clover Capital Management, Inc. (the "Adviser") are parties to an
Investment Advisory Agreement under which the Adviser receives an annual fee
equal to .74% of the average daily net assets of the Equity Value Fund, .45% of
the average daily net assets of the Fixed Income Fund and .85% of the average
daily net assets of the Small Cap Value Fund. The Adviser has voluntarily agreed
to waive all or a portion of its fees (and to reimburse the expenses of the
Funds) in order to limit operating expenses to not more than 1.20% of the
average daily net assets for net assets below $20 million and to not more than
1.10% for net assets of $20 million or more for the Equity Value Fund. Operating
expenses for the Fixed Income Fund are limited to not more than .80% of the
average daily net assets for net assets below $20 million and to not more than
.75% for net assets of $20 million or more. Operating expenses for the Small Cap
Value Fund are limited to 1.40% of the Portfolio's average daily net assets. Fee
waivers and expense reimbursements are voluntarily and may be terminated at any
time.
CoreStates Bank, N.A. acts as custodian (the "Custodian") for the Funds. Fees of
the Custodian are being paid on the basis of the net assets of the Funds. The
Custodian plays no role in determining the investment policies of the Trust or
which securities are to be purchased or sold by the Funds.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the period ended April 30, 1997, are as follows:
EQUITY VALUE FIXED INCOME SMALL CAP
FUND FUND VALUE FUND
(000) (000) (000)
------------ ------------ ----------
Purchases
Government $ -- $1,262 $ --
Other 36,978 2,429 4,570
Sales
Government $ 1,997 $ 900 $ --
Other 24,337 650 1,585
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) THE ADVISORS' INNER CIRCLE FUND
April 30, 1997 Unaudited
At April 30, 1997, 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 Funds
at April 30, 1997 is as follows:
EQUITY VALUE FIXED INCOME SMALL CAP
FUND FUND VALUE FUND
(000) (000) (000)
------------ ------------ ----------
Aggregate gross
unrealized appreciation $ 8,090 $ 133 $ 600
Aggregate gross
unrealized depreciation (7,024) (270) (718)
------------ ------------ ----------
Net unrealized
appreciation
(depreciation) $ 1,066 $(137) $(118)
============ ============ ==========
7. CONCENTRATION OF CREDIT RISK:
The Fixed Income Fund invests primarily in fixed income securities which are
rated in the top four rating categories by either Moody's Investors Services,
Inc. ("Moody's") or Standard & Poor's Ratings Group ("S&P"), or if not rated,
determined by the Adviser to be of comparable quality. The ability of the
issuers of the securities held by the Fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
The summary of credit quality rating for securities held by the Fund at April
30, 1997 is as follows:
S&P MOODY'S
----------------------- -----------------------
Bonds: AAA 50.8% Aaa 49.0%
AA 18.5% Aa 15.0%
A 12.4% A 22.6%
BBB 5.9% Baa 5.0%
BB 4.5% Ba 4.5%
B 3.9% B 3.9%
NR 4.0% NR --
-------- --------
100.0% 100.0%
<PAGE>
