THE ADVISORS' INNER CIRCLE FUND
[LSV Value Equity Fund Logo Omitted]
SEMI-ANNUAL REPORT TO SHAREHOLDERS
APRIL 30, 2000
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED
BY A CURRENT PROSPECTUS FOR THE FUND DESCRIBED.
<PAGE>
STATEMENT OF NET ASSETS LSV VALUE EQUITY FUND
April 30, 2000 (Unaudited)
Market
Value
LSV VALUE EQUITY FUND Shares (000)
--------------------------------------------------------------------------------
COMMON STOCKS (97.8%)
AEROSPACE & DEFENSE (3.1%)
Alliant Techsystems* 1,800 $ 125
Boeing 10,000 397
Cordant Technologies 1,700 96
Litton Industries* 1,800 78
-------
696
-------
AIR TRANSPORTATION (2.1%)
America West Holdings, Cl B* 7,500 110
Delta Air Lines 6,900 364
-------
474
-------
AUTOMOTIVE (6.8%)
Delphi Automotive Systems 2,096 40
Ford Motor 8,100 443
General Motors 4,000 374
Navistar International* 7,400 259
Ryder Systems 10,200 226
TRW 2,900 170
-------
1,512
-------
BANKS (12.8%)
Bank of America 7,300 358
Chase Manhattan 4,700 339
Citigroup 6,700 398
Dime Bancorp 2,900 54
FleetBoston Financial 2,700 96
Golden West Financial 9,000 307
Greenpoint Financial 3,900 73
J.P. Morgan 2,700 347
Pacific Century Financial 8,900 183
PNC 7,700 336
Unionbancal 13,300 368
-------
2,859
-------
BUILDING & CONSTRUCTION (1.8%)
Centex 2,800 67
Lafarge 4,400 111
Pulte 10,100 217
-------
395
-------
BUSINESS SERVICES (1.4%)
Harris 9,400 304
-------
CHEMICALS (3.1%)
Dow Chemicals 3,200 362
FMC 3,700 215
W.R. Grace & Company* 8,700 113
-------
690
-------
Market
Value
Shares (000)
--------------------------------------------------------------------------------
COAL MINING (0.0%)
Arch Coal 3 $ --
-------
COMPUTERS & SERVICES (5.9%)
IBM 3,500 391
NCR* 8,500 328
Seagate Technology* 5,600 284
Tektronix* 4,200 243
Unisys* 2,900 67
-------
1,313
-------
CONTAINERS & PACKAGING (0.6%)
Ball 4,100 129
-------
ELECTRICAL SERVICES (9.0%)
DTE Energy 5,000 163
Edison International 11,000 210
Energy East 12,300 257
FPL Group 2,500 113
OGE Energy 5,500 109
PG&E 14,600 379
PPL 13,500 322
Public Service Company of
New Mexico 6,600 119
Public Service Enterprise Group 9,500 341
-------
2,013
-------
FINANCIAL SERVICES (5.8%)
Bear Stearns 8,100 347
Countrywide Credit Industries 8,300 229
Financial Security Assurance
Holdings 1,510 111
Household International 7,900 330
Lehman Brothers Holdings 3,200 263
-------
1,280
-------
FOOD, BEVERAGE & TOBACCO (2.2%)
Earthgrains 3,900 55
IBP 10,400 172
Ralcorp Holdings* 10,700 148
Universal 5,900 111
-------
486
-------
HOUSEHOLD FURNITURE & FIXTURES (0.5%)
Furniture Brands International* 5,900 110
-------
HOUSEHOLD PRODUCTS (3.2%)
Maytag 9,600 331
Whirlpool 5,800 378
-------
709
-------
INDUSTRIAL (1.2%)
Rockwell International 6,800 268
-------
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
STATEMENT OF NET ASSETS LSV VALUE EQUITY FUND
April 30, 2000 (Unaudited)
Market
Value
LSV VALUE EQUITY FUND (concluded) Shares (000)
--------------------------------------------------------------------------------
INSURANCE (5.6%)
Aetna 2,800 $ 162
Allstate 3,130 74
Cigna 4,300 343
Lincoln National 3,900 136
PMI Group 7,500 363
St. Paul 5,000 178
-------
1,256
-------
LEASING & RENTING (0.5%)
Xtra 2,640 124
-------
LUMBER & WOOD PRODUCTS (1.5%)
Georgia Pacific 9,000 331
-------
MACHINERY (1.1%)
Briggs & Stratton 2,800 107
Cummins Engine 3,000 107
NACCO Industries, Cl A 700 31
-------
245
-------
MEDICAL (1.5%)
Mallinckrodt 7,700 207
Pharmacia 2,737 137
-------
344
-------
OPTICAL SUPPLIES (0.9%)
Bausch & Lomb 3,200 193
-------
PETROLEUM & FUEL PRODUCTS (1.6%)
Amerada Hess 5,600 356
-------
PETROLEUM REFINING (6.9%)
Ashland 10,500 358
Exxon Mobil 2,700 210
Phillips Petroleum 7,400 351
Tosco 11,000 353
Ultramar Diamond Shamrock 10,800 267
-------
1,539
-------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES (1.5%)
Eastman Kodak 5,900 330
-------
PRINTING & PUBLISHING (1.0%)
Knight-Ridder 4,500 221
-------
RETAIL (3.2%)
Darden Restaurants 19,900 367
Sears Roebuck 9,300 341
-------
708
-------
SPECIALTY MACHINERY (0.4%)
Tecumseh Products 1,800 83
-------
STEEL & STEEL WORKS (1.6%)
Alcoa 5,600 363
-------
Shares/ Market
Face Amount Value
(000) (000)
--------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (8.9%)
AT&T 6,400 $ 299
Bell Atlantic 10,100 492
GTE 6,100 413
SBC Communications 7,400 324
Sprint 3,880 239
US WEST 2,860 204
-------
1,971
-------
WHOLESALE (2.1%)
BJ's Wholesale Club* 9,000 319
Supervalu 6,800 141
-------
460
-------
TOTAL COMMON STOCKS
(Cost $21,812) 21,762
-------
REPURCHASE AGREEMENT (1.8%)
Morgan Stanley 5.80%, dated 04/28/00,
matures 05/01/00, repurchase price
$405,585 (collateralized by U.S.
Treasury Note, 06/30/00, market
value $618,030) $ 405 405
-------
TOTAL REPURCHASE AGREEMENT
(Cost $405) 405
-------
TOTAL INVESTMENTS (99.6%)
(Cost $22,217) 22,167
-------
OTHER ASSETS AND LIABILITIES, NET (0.4%) 81
-------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 2,260,468 outstanding
shares of beneficial interest 22,217
Undistributed Net Investment Income 73
Accumulated Net Realized Gain
on Investments 8
Net Unrealized Depreciation
on Investments (50)
-------
TOTAL NET ASSETS (100.0%) $22,248
=======
Net Asset Value, Offering and
Redemption Price Per Share $9.84
=======
*NON-INCOME PRODUCING SECURITY
CL -- CLASS
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENT OF OPERATIONS LSV VALUE EQUITY FUND
For the period ended April 30, 2000 (Unaudited)
LSV VALUE EQUITY FUND (000)
--------------------------------------------------------------------------------
Investment Income:
Dividend Income............................................. $163
Interest Income............................................. 13
--------------------------------------------------------------------------------
Total Investment Income................................... 176
--------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ................................... 44
Investment Advisory Fee Waiver ............................. (44)
Reimbursements by Advisor................................... (15)
Administrative Fees ........................................ 37
Transfer Agent Fees ........................................ 17
Professional Fees .......................................... 15
Printing Fees .............................................. 5
Registration Fees .......................................... 3
Trustee Fees ............................................... 3
Custodian Fees ............................................. 2
Insurance and Other Fees.................................... 1
Organizational Costs........................................ 3
--------------------------------------------------------------------------------
Total Expenses, Net ........................................ 71
--------------------------------------------------------------------------------
Net Investment Income .................................. 105
--------------------------------------------------------------------------------
Net Realized Gain from Securities Sold ..................... 22
Net Change in Unrealized Depreciation
of Investment Securities .......... (767)
--------------------------------------------------------------------------------
Net Realized and Unrealized Loss on Investments .......... (745)
--------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting From Operations ....... $(640)
================================================================================
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS LSV VALUE EQUITY FUND
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LSV VALUE EQUITY FUND
----------------------------------
PERIOD ENDED PERIOD ENDED
APRIL 30, 2000 OCTOBER 31, 1999(1)
(000) (000)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Activities:
Net Investment Income ...................................................... $ 105 $ 66
Net Realized Gain (Loss) from Securities Sold .............................. 22 (14)
Net Change in Unrealized (Depreciation) Appreciation of Investment Securities (767) 717
--------------------------------------------------------------------------------------------------------------------
Net (Decrease) Increase in Net Assets Resulting from Operations........... (640) 769
--------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ...................................................... (98) --
--------------------------------------------------------------------------------------------------------------------
Total Distributions....................................................... (98) --
--------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ................................................ 10,758 12,634
Reinvestment of Cash Distributions ......................................... 98 --
Cost of Shares Redeemed .................................................... (1,235) (38)
--------------------------------------------------------------------------------------------------------------------
Increase in Net Assets from Capital Share Transactions ................... 9,621 12,596
--------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets ........................................... 8,883 13,365
--------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ........................................................ 13,365 --
--------------------------------------------------------------------------------------------------------------------
End of Period .............................................................. $22,248 $13,365
--------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued ..................................................................... 1,095 1,298
Issued in Lieu of Cash Distributions ....................................... 10 --
Redeemed ................................................................... (138) (4)
--------------------------------------------------------------------------------------------------------------------
Net Increase in Share Transactions.......................................... 967 1,294
====================================================================================================================
</TABLE>
(1) LSV Value Equity Fund commenced operations on March 31, 1999.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
FINANCIAL HIGHLIGHTS LSV VALUE EQUITY FUND
For a Share Outstanding Throughout Each Period
For the six-month period ended April 30, 2000 (unaudited) and the period ended
October 31, 1999.
<TABLE>
<CAPTION>
Ratio
Ratio of Net
Ratio of Expenses Investment
Net Realized and Net Net of Net to Average Income (Loss) to
Asset Unrealized Asset Assets Ratio Investment Net Assets Average Net
Value Net Gains (Loss) Value End of Expenses Income (Excluding Assets (Excluding
Beginning Investment on End of Total of Period to Average to Average Waivers and Waivers and
of Period Income (Loss) Securities Period Return (000) Net Assets Net Assets Reimbursements) Reimbursements)
--------- ------------- ---------- ------ ------ -------- ---------- ---------- --------------- ---------------
---------------------
LSV VALUE EQUITY FUND
---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $10.33 (0.02) (0.47) $ 9.84 (4.17)% $22,248 0.90%* 1.32%* 1.64%* 0.58%*
1999(1) 10.00 0.05 0.28 10.33 3.30* 13,365 0.90* 0.95* 1.97* (0.12)*
</TABLE>
Portfolio
Turnover
Rate
---------
---------------------
LSV VALUE EQUITY FUND
---------------------
2000 21.53%
1999(1) 10.70
(1)The LSV Value Equity Fund commenced operations on March 31, 1999.
* Annualized
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS LSV VALUE EQUITY FUND
April 30, 2000 (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. Securities for which
quotations are not readily available are valued at fair value as determined
in good faith by, or in accordance with procedures approved by, the Board of
Trustees.
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.
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 and provisions adopted by the
Adviser ensure that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters into an insolvency proceeding, realization of the
collateral by the Portfolios may be delayed or limited.
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.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded) LSV VALUE EQUITY FUND
April 30, 2000 (Unaudited)
3. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES:
In April 1998, the AICPA issued Statement of Position "SOP" No. 98-5, "Reporting
on the Costs of Start-Up Activities." This SOP provides guidance on the
financial reporting of start-up costs and organization costs and requires costs
of start-up activities and organization costs to be expensed as incurred.
Investment companies that began operations prior to June 30, 1998 can adopt the
SOP prospectively. Therefore, previously capitalized costs will continue to be
amortized over a period of sixty months. Any future start-up organization costs
will be expensed as incurred.
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.
The Fund has entered into an agreement with SEI Investments to manage the
investments of repurchase agreements for the Fund. For its services, SEI
Investments received $60 for the period ended April 30, 2000.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an Administration Agreement dated
March 15, 1999 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 dated August
8, 1994. The Distributor receives no fees for its distribution services under
this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Fund and LSV Asset Management (the "Adviser") are parties to an Investment
Advisory Agreement dated March 15, 1999 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 period ended April 30, 2000 are as follows:
LSV VALUE EQUITY
FUND (000)
--------------
Purchases
U.S. Government ..................... $ --
Other ............................... 12,800
Sales
U.S. Government ..................... --
Other ............................... 3,405
At April 30, 2000, 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, 2000, is as follows:
LSV VALUE EQUITY
FUND (000)
--------------
Aggregate gross unrealized
appreciation ........................ $ 1,270
Aggregate gross unrealized
depreciation ........................ (1,320)
-------
Net unrealized depreciation ........... (50)
=======
7
<PAGE>
================================================================================
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-003-02
================================================================================
