THE ADVISORS' INNER CIRCLE FUND
LOGO
VALUE EQUITY FUND
[GRAPHIC OMITTED]
SEMI-ANNUAL REPORT TO SHAREHOLDERS
AS OF APRIL 30, 1999
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, 1999 (Unaudited)
Market
Value
LSV VALUE EQUITY FUND Shares (000)
- -------------------------------------------------------
COMMON STOCK (98.0%)
AEROSPACE & DEFENSE (3.1%)
Alliant Techsystems* 630 $ 52
Cordant Technologies 1,400 65
Litton Industries* 990 62
United Technologies 1,120 162
------
341
------
AIR TRANSPORTATION (2.4%)
Alaska Airgroup* 1,300 57
America West Holdings, Cl B* 2,560 53
Delta Air Lines 2,250 143
US Air Group* 100 5
------
258
------
AUTOMOTIVE (6.7%)
Arvin Industries 1,500 55
Ford Motor 3,780 242
General Motors 2,360 210
Navistar International* 3,440 180
Ryder Systems 1,800 47
------
734
------
BANKS (11.6%)
Amsouth Bancorp 3,500 166
Bancwest 1,180 47
Chase Manhattan 2,580 213
Dime Bancorp 2,150 50
Fleet Financial Group 1,280 55
Golden West Financial 1,700 170
Greenpoint Financial 3,900 137
J.P. Morgan 1,300 175
Pacific Century Financial 3,920 85
PNC 2,870 166
------
1,264
------
BUILDING & CONSTRUCTION (3.8%)
Centex 1,800 66
Fleetwood Enterprises 1,700 42
Lafarge 1,840 62
Lone Star Industries 2,210 79
Owens Corning 1,590 57
Pulte 4,720 107
------
413
------
BUSINESS SERVICES (1.6%)
Comdisco 4,520 119
Harris 1,700 59
------
178
------
CHEMICALS (2.3%)
Dow Chemicals 1,380 181
W.R. Grace & Company* 70 65
------
246
------
Market
Value
Shares (000)
- -------------------------------------------------------
COMPUTERS & SERVICES (4.1%)
Apple Computer* 2,660 $ 122
IBM 890 186
NCR* 1,000 41
Unisys* 3,200 101
------
450
------
CONTAINERS & PACKAGING (1.1%)
Ball 2,100 115
------
DRUGS (1.1%)
Schering-Plough 2,500 121
------
ELECTRICAL SERVICES (9.9%)
DTE Energy 2,820 115
Eastern Utilities Association 1,600 46
Edison International 2,800 69
Energy East 4,700 124
FPL Group 900 51
OGE Energy 2,170 51
PECO Energy 2,700 128
PG&E 5,070 157
PP&L Resources 3,080 86
Public Service Company of
New Mexico 2,910 52
Public Service Enterprise Group 3,500 140
Reliant Energy 1,900 54
------
1,073
------
FINANCIAL SERVICES (4.8%)
Bear Stearns 3,480 162
Countrywide Credit Industries 2,550 116
Financial Security Assurance
Holdings 1,510 86
Lehman Brothers Holdings 800 44
Painewebber Group 2,400 113
------
521
------
FOOD, BEVERAGE & TOBACCO (2.3%)
Earthgrains 2,430 51
IBP 5,220 106
Ralcorp Holdings* 2,800 51
Universal 1,600 41
------
249
------
HOUSEHOLD FURNITURE & FIXTURES (0.5%)
Furniture Brands International* 2,230 56
------
HOUSEHOLD PRODUCTS (3.1%)
Maytag 2,380 163
Premark International 1,960 72
Whirlpool 1,500 100
------
335
------
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1999 (Unaudited)
Market
Value
LSV VALUE EQUITY FUND (concluded) Shares (000)
- -------------------------------------------------------
INDUSTRIAL (1.3%)
Rockwell International 2,770 $ 143
-------
INSURANCE (8.2%)
Aetna 570 50
Allstate 3,130 114
American General 1,490 110
Cigna 1,650 144
Hartford Financial Services
Group 2,850 168
Lincoln National 1,280 123
Old Republic International 2,600 51
Transamerica 620 44
Travelers Property Casualty 2,700 93
-------
897
-------
LEASING & RENTING (0.5%)
Xtra 1,240 51
-------
MACHINERY (2.3%)
Briggs & Stratton 1,940 128
Cummins Engine 1,300 70
NACCO Industries, Cl A 700 57
-------
255
-------
MEDICAL PRODUCTS (1.4%)
Mallinckrodt 4,430 155
-------
PETROLEUM REFINING (4.4%)
Ashland 1,610 68
Exxon 2,680 223
Phillips Petroleum 2,720 138
Sunoco 1,380 49
-------
478
-------
PRINTING & PUBLISHING (1.3%)
Knight-Ridder 970 52
Lexmark International Group, Cl A* 700 86
-------
138
-------
RETAIL (5.1%)
Darden Restaurants 6,440 144
Dayton Hudson 1,210 81
Kmart* 7,500 112
Longs Drug Stores 1,600 55
Ruddick 2,500 44
Sears Robuck 1,070 49
Shopko Stores 1,900 65
-------
550
-------
SPECIALTY MACHINERY (0.6%)
Tecumseh Products 1,000 61
-------
STEEL & STEEL WORKS (2.3%)
AK Steel Holding 4,380 114
Alcoa 1,180 73
Nucor 1,100 65
-------
252
-------
Shares/ Market
Face Amount Value
(000) (000)
- -------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (10.3%)
Ameritech 3,680 $ 252
AT&T 2,745 139
Bell Atlantic 5,520 247
Sprint 1,940 199
United States Cellular 2,930 139
US WEST 2,860 150
-------
1,126
-------
TRANSPORTATION SERVICES (0.5%)
GATX 1,480 51
-------
WHOLESALE (1.4%)
BJ's Wholesale Club* 1,900 50
Supervalu 5,060 106
-------
156
-------
TOTAL COMMON STOCK
(Cost $9,244) 10,667
-------
REPURCHASE AGREEMENT (1.9%)
Morgan Stanley
4.50%, dated 04/30/99, matures
05/03/99, repurchase price
$206,495 (collateralized by
U.S. Treasury Bill, 07/29/99,
market value $211,740) $ 206 206
-------
TOTAL REPURCHASE AGREEMENT
(Cost $206) 206
=======
TOTAL INVESTMENTS (99.9%)
(Cost $9,450) 10,873
-------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 6
-------
NET ASSETS:
Portfolio Shares
(unlimited authorization -- no par value)
based on 1,001,606 outstanding
shares of beneficial interest 9,503
Undistributed Net Investment Income 9
Accumulated Net Realized Loss
on Investments (56)
Net Unrealized Appreciation
on Investments 1,423
-------
TOTAL NET ASSETS (100.0%) $10,879
=======
Net Asset Value, Offering and Redemption
Price Per Share $10.86
======
*NON-INCOME PRODUCING SECURITY
Cl -- Class
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF OPERATIONS THE ADVISORS' INNER CIRCLE FUND
For the one-month period ended April 30, 1999.(1) (Unaudited)
LSV
VALUE EQUITY
FUND(1)
------------
3/31/99
TO 4/30/99
(000)
- --------------------------------------------------------------------------------
Investment Income:
Dividend Income.................................................. $ 14
Interest ........................................................ 2
- --------------------------------------------------------------------------------
Total Investment Income........................................ 16
- --------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................................ 5
Investment Advisory Fee Waiver .................................. (5)
Reimbursements by Advisor........................................ (6)
Administrative Fees ............................................. 6
Professional Fees ............................................... 2
Transfer Agent Fees ............................................. 2
Printing Fees ................................................... 1
Organizational Fees ............................................. 2
- --------------------------------------------------------------------------------
Total Expenses, Net ............................................. 7
- --------------------------------------------------------------------------------
Net Investment Income ....................................... 9
- --------------------------------------------------------------------------------
Net Realized Loss from Securities Sold .......................... (56)
Net Change in Unrealized Appreciation of Investment Securities .. 1,423
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments ............... 1,367
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From Operations ............ $1,376
================================================================================
(1) LSV Value Equity Fund commenced operations on March 31, 1999.
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 period ended April 30, 1999. (Unaudited)
LSV
VALUE EQUITY
FUND(1)
-------------
3/31/99
TO 4/30/99
(000)
- --------------------------------------------------------------------------------
Investment Activities:
Net Investment Income ............................................. $ 9
Net Realized Loss from Securities Sold ............................ (56)
Net Change in Unrealized Appreciation of Investment Securities .... 1,423
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations............. 1,376
- --------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ............................................. --
Realized Capital Gains ............................................ --
- --------------------------------------------------------------------------------
Total Distributions.............................................. --
- --------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ....................................... 9,503
Reinvestment of Cash Distributions ................................ --
Cost of Shares Redeemed ........................................... --
- --------------------------------------------------------------------------------
Increase in Net Assets Derived from Capital Share Transactions .. 9,503
- --------------------------------------------------------------------------------
Total Increase in Net Assets .................................. 9,503
- --------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................................... --
- --------------------------------------------------------------------------------
End of Period ..................................................... $10,879
- --------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued ............................................................ 1,002
Issued in Lieu of Cash Distributions .............................. --
Redeemed .......................................................... --
- --------------------------------------------------------------------------------
Net Increase in Share Transactions................................. 1,002
================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) LSV Value Equity Fund commenced operations on March 31, 1999.
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS THE ADVISORS' INNER CIRCLE FUND
For a Share Outstanding Throughout Each Period (Unaudited)
For the period ended April 30, 1999
<TABLE>
<CAPTION>
Net Realized and Net Net
Asset Unrealized Asset Assets Ratio
Value Net Gains or Value End of Expenses
Beginning Investment (Losses) on End Total of Period to Average
of Period Income Securities of Period Return (000) Net Assets
--------- ------------ ------------ --------- ------ --------- ----------
- ----------------
LSV EQUITY VALUE
- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
1999(1) $10.00 0.01 0.85 $10.86 8.60%+ $10,879 0.90%*
</TABLE>
<TABLE>
<CAPTION>
Ratio
Ratio of Net
Ratio of Expenses Investment
of Net to Average Income to
Investment Net Assets Average Net
Income (Excluding Assets (Excluding Portfolio
to Average Waivers and Waivers and Turnover
Net Assets Reimbursements) Reimbursements) Rate
---------- --------------- ----------------- ---------
- ----------------
LSV EQUITY VALUE
- ----------------
<S> <C> <C> <C> <C>
1999(1) 1.07%* 2.30%* (0.33)%* 5.33%
</TABLE>
* Annualized
+ Total return is for the period indicated and has not been annualized.
(1) The LSV Value Equity Fund commenced operations on March 31,1999.
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ADVISORS' INNER CIRCLE FUND
April 30, 1999 (Unaudited)
1. ORGANIZATION:
THE ADVISORS' INNER CIRCLE FUND (the "Trust") is organized as a Massachusetts
business trust under an Amended and Restated Agreement and Declaration of Trust
dated February 18, 1997. 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 LSV Value
Equity Fund (the "Fund"). The financial statements of the remaining portfolios
are not presented herein. The assets of each portfolio are segregated, and a
shareholder's interest is limited to the portfolio in which shares are held. The
Fund's prospectus provides a description of the 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 recent 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 INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
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 or premiums during
the respective holding period which is calculated using the effective
interest method. Interest income is recognized on the accrual basis.
Dividend income is recorded on the ex-date.
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 assets, less
liabilities, by the number of shares outstanding.
EXPENSES -- 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 compared to the aggregate daily net
assets of the Trust.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid to shareholders annually. Any net realized capital
gains 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 reclassifications 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. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES:
Organizational costs have been capitalized by the Trust and are being amortized
over twelve months commencing with the start-up. In the event the initial shares
of the Trust are redeemed by any holder thereof during the period that the
Trust is amortizing its organizational costs, the redemption proceeds payable
to the holder thereof by the Portfolio 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 Investments Mutual Funds
Services (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 (concluded) THE ADVISORS' INNER CIRCLE FUND
April 30, 1999 (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 at an
annual rate of .10% of the Funds first $100 million of average daily net assets;
.08% of the next $100 million of average daily net assets; and .07% of the
Fund's average daily net assets over $200 million. there is a minimum annual fee
of $75,000 per fund and $15,000 per additional class.
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 Fund.
The Trust and 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 Fund and LSV Asset Management Co. (the "Adviser") are parties to an
Investment Advisory Agreement under which the Adviser receives an annual fee
equal to .55% of the average daily net assets. The Adviser has, on a voluntary
basis, agreed to waive its fee in order to limit the Fund's total operating
expenses to a maximum of .90% of the average daily net assets. The Adviser
reserves the right to terminate this arrangement at any time in its sole
discretion.
First Union National Bank acts as custodian (the "Custodian") for the Fund. The
Custodian plays no role in determining the investment policies of the Fund or
which securities are to be purchased and 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 year ended April 30, 1999 are as follows:
LSV VALUE EQUITY
FUND (000)
----------------
Purchases
U.S. Government ..................... $ --
Other ............................... 9,869
Sales
U.S. Government ..................... $ --
Other ............................... 569
At April 30, 1999, 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, 1999, is as follows:
LSV VALUE EQUITY
FUND (000)
----------------
Aggregate gross unrealized
appreciation ........................ $1,644
Aggregate gross unrealized
depreciation ........................ (221)
------
Net unrealized appreciation ........... $1,423
======
<PAGE>
[BEGIN BOUNDING BOX]
TRUST:
The Advisors' Inner Circle Fund
FUND:
LSV Value Equity Fund
ADVISER:
LSV Asset Management
DISTRIBUTOR:
SEI Investments Distribution Co.
ADMINISTRATOR:
SEI Investments Mutual Funds Services
LEGAL COUNSEL:
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS:
Arthur Andersen LLP
LSV-F-003-01
[END BOUNDING BOX]
