-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A1tdBHa+DtB4/qTIyMCWo/3svXbP/IEcFesQynXVtHPEVuWifTpfWr89A/dcbB9F AXPfm0CqIDPOTTAl/ddHNQ== 0000894189-02-000680.txt : 20020617 0000894189-02-000680.hdr.sgml : 20020617 20020617114059 ACCESSION NUMBER: 0000894189-02-000680 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020617 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORS SERIES TRUST CENTRAL INDEX KEY: 0001027596 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07959 FILM NUMBER: 02680297 BUSINESS ADDRESS: STREET 1: 2020 E FINANCIAL WAY SUITE 100 CITY: GLENDORA STATE: CA ZIP: 91741 BUSINESS PHONE: 8188521033 MAIL ADDRESS: STREET 1: 2020 E FINANCIAL WAY STREET 2: SUITE 100 CITY: GLENDORA STATE: CA ZIP: 91741 N-30D 1 annualreport.txt Chase Growth Fund May 16, 2002 Dear Fellow Shareholders: As I write this semi-annual review, over 600 shareholders have $43 million invested in our Chase Growth Fund (NASDAQ: CHASX). We appreciate the trust all of you have placed in our management and I want to extend a special welcome to the new shareholders since my October 18th letter. For the year ended March 31, 2002 our fund had a total return of -1.77% compared with +0.26% for the Standard & Poor's "500" Composite Stock Price Index (the "S&P 500"), -2.00% for the Russell 1000(R) Growth Index, and -4.80% for the Lipper Large-Cap Growth Funds Index. Lipper Analytics shows CHASX to be in the top quartile of its Large Cap Growth Fund universe for the one-year period ended 3/31/02 (805 funds) and in the top 1% of that same category for the three years ended 3/31/02 (500 funds). More recently Lipper indicated we were the #1 fund in its Large Cap Growth Universe of 500 funds for the three-years ended 4/30/02! Although the Chase Growth Fund is an equity fund, during this past year we continued to partially cushion your portfolio against the risks and volatility of this stock market by investing 16.2% on average in interest bearing cash equivalents. On March 31, our fund was invested in 37 stocks ranging in market capitalization from $273 billion (Wal-Mart) to $4.4 billion (L-3 Communications). The six months ended 3/31/02 was a relatively unfavorable period for our investment style, which emphasizes high quality, stable growth stocks. During that period the stock market enjoyed a sizeable recovery led by technology stocks that fared poorly in the first three quarters of 2001. The Russell 1000(R) Growth Index was up +12.16% and the S&P 500 rose +11.06% while our CHASX portfolio, which had not been down as much as these indexes in the previous 6 months, had a total return of +5.47%. Our five best performing stocks were Best Buy Co. +74.3%, First Data Corp. +49.8%, Harley Davidson +36.1%, Concord EFS +35.9%, and AutoZone +32.8%. A few new purchases made during the 6 months also helped performance: Suncor Energy +21.9%, USA Education +18.6%, and H&R Block +15.3%. This six month period included a substantial recovery by many depressed technology stocks. For instance, during the fourth quarter of 2001, the S&P 500 returned 10.71%, but this was concentrated in the low quality technology sector. An analysis of the S&P 500 for the quarter revealed that on an equal weighted basis the 79 stocks in the technology sector rose +24.5% while the average non-technology stock declined by -5.2%. Merrill Lynch's Stable Growth Stock Index rose only 0.56% during that quarter. Our investment process combines fundamental, quantitative, and technical research. We seek good quality companies that are leaders in their industries and enjoy above average, sustainable earnings growth with strong balance sheets to support that growth. The Chase Growth Fund (CHASX) portfolio includes a diversified group of companies that we believe represent relatively outstanding investment opportunities. Chase Growth Fund We compare the characteristics of our fund's stocks to the S&P 500 in the accompanying bar charts. CHASX stocks have enjoyed more consistent and substantially higher five-year average annual earnings per share growth rates of 18% vs. 6% for the S&P. They are significantly more profitable with a return on equity of 25% vs. 16%, and have stronger balance sheets with debt to total capital of 27% vs. 38%. On average, they sell at a 20% lower price/earnings multiple than the S&P 500 (25.3X vs. 31.9X) based on year 2002 estimated reported earnings. Our stocks are selling at only 1.39 times their five year historical growth rates compared to 5.40 times for the S&P 500. Similarly they sell at 1.28 times their projected reinvestment rates compared to 3.65 times for the S&P 500. CHASE GROWTH FUND CHART A March 31, 2002 CHASE GROWTH FUND STOCKS VS. S&P 500 Chase Growth Fund Stocks S&P 500 Last 5 year Earnings Growth 18% 6% Return on Equity 25% 16% Reinvestment Rate 20% 9% Debt/Total Capital 27% 38% Weighted Avg. Cap. (Billions) 62.5 100.9 Weighted Avg. Beta. (Volatility) 0.96 1.00 Price/Earnings Estimated 2002 25.3 31.9 Source: Chase Investment Counsel Corporation. This information is based on certain assumptions and historical data and is not a prediction of future results for the Fund or companies held in the Fund's portfolio. S&P 500 Earnings are based on reported figures after write-offs. Although 2001 S&P 500 reported earnings were down about 50% from 2000 levels, the stock market has been anticipating a strong business recovery and responding to low inflation, low interest rates and both fiscal and monetary stimulus. While the economic statistics are improving, many of the figures are distorted by temporary factors such as the abnormally warm winter, low energy prices and tax refunds. Already oil prices have risen about 50% since their January lows. Although consumer spending has been strong, it has resulted in a huge increase in consumer credit. We are concerned that excess global capacity will restrict pricing power and keep corporate profits from fully recovering. (By January, U.S. capacity utilization had fallen to 74.2%, its lowest level since April 1983.) In view of many uncertainties, short-term optimism seems too high. As the Federal Reserve moves to a less expansionary policy, p/e ratios may compress and earnings progress becomes increasingly important. On April 30th, 2002, Ned Davis Research estimated that the total market capitalization of 6,300 U.S. stocks stood at 113.9% of nominal GDP. While that was down substantially from its March 2000 peak of 171.5%, it is still very high compared to peak ratios of 86.5% and 79.2% respectively at the 1929 and 1973 peaks. We have been studying the stock market action to ascertain whether it seems characteristic of a rally in a bear market, a trading range market, or a more sustainable recovery. For the latter, we want to see the major stock indexes recover and remain above their 200-day moving averages. On May 15th, the DJIA and the equally weighted Value Line 1700 were above their 200-day moving averages, but the cap weighted Wilshire 5000, S&P 500, and the NASDAQ were all below their 200-day moving averages. Chase Growth Fund Despite the most aggressive easing (lower interest rates, and a huge increase in the money supply) in the history of the Federal Reserve, stocks are still lower 15 months after the easing began. The average for 16 other easing periods was a gain of 20% after 15 months. Obviously the easing has not been as effective this time, at least so far as equity prices are concerned. In part, this undoubtedly reflects the degree of overvalu-ation which currently exists. We expected investors to go through the normal stages of despondency/ capitulation which usually accompany bear market bottoms. While such capitulation may still happen, so far only the unwinding of overpriced tech stocks and a few accounting problem stocks have acted that way. Our former director, Tony Gaubis, pioneered the studies of market cycles. He found that in the second year of a presidential term the market usually bottoms after mid year and from there the decennial cycle pattern usually has been an upward tilted trading range for a couple of years followed by a sharp rise in the fifth year which has never been down. We are also aware that historically May/June through October has been seasonally weak and we expect a better buying opportunity later this year. Chase Investment Counsel Corporation now manages over $1.4 billion for 109 clients in 24 states. The Chase Growth Fund is managed by the same senior portfolio managers, David Scott and myself, supported by the same team of senior security analysts that manage our large separate accounts. As a smaller fund managed by a moderate size investment management firm, we have much more flexibility in buying and selling large and mid-cap stocks without a significant market impact. Moreover, as a newer fund the portfolio does not have large accumulated capital gain tax liabilities on appreciated stocks that new shareholders did not enjoy. We remain tax sensitive. We expect no taxable capital gains distributions this year and we should still have significant capital losses to help offset any capital gains that are taken next year. FUNDAMENTALS AND RATIOS CHART B March 31, 2002 P/E to Five-Year P/E to Projected Historical Growth Reinvestment Rate Chase Growth Fund 1.39 1.28 Russell 1000 Growth 1.63 1.50 S&P 500 5.40 3.65 Source: Chase Investment Counsel Corporation. This information is based on certain assumptions and historical data and is not a prediction of future results for the Fund or companies held in the Fund's portfolio. S&P 500 Earnings are based on reported figures after write-offs. Chase Growth Fund We believe our investment approach, with a process that involves significant valuation and technical parameters seeking growing companies at reasonable prices, will continue to perform well on a risk adjusted round trip basis. In our separately managed balanced accounts we continue to maintain substantial reserves due to the market's overall high valuation and we assume our CHASX shareholders have cash equivalent and other reserves appropriate for their own circumstances and risk tolerances. As one of the largest CHASX shareholders, I assure you that we will be working very hard to find, analyze and invest in relatively attractive stocks. The officers and employees of Chase Investment Counsel Corporation, most of whom are fellow shareholders, appreciate your confidence and we look forward to a long investment relationship together. TOP 10 HOLDINGS 1. UnitedHealth Group 6. Pepsico Inc. 2. Johnson & Johnson 7. Lowe's Cos. Inc. 3. Philip Morris 8. Home Depot 4. General Dynamics 9. USA Education 5. Wal-Mart Stores 10. Pfizer /s/ Derwood S. Chase, Jr. Derwood S. Chase, Jr., President Chase Investment Counsel Corporation Performance Figures of the fund and indexes referenced represent past performance and are not indicative of future performance of the fund or the indexes. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Indexes do not incur expenses and are not available for investment. The Wilshire 5000 Index is a price appreciation index where dividends are not reinvested. The index measures the performance of all U.S. head-quartered equity securities with readily available price data. The Value Line Composite Index is a broad, unweighted index of approximately 1700 companies in the Value Line Investment Survey. The NASDAQ, DJIA, S&P 500 and Russell 1000 Growth Indices are unmanaged indexes commonly used to measure the performance of U.S. stocks. You cannot invest directly in an index. Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Each Lipper average represents a universe of Funds with similar investment objectives. Rankings for the periods shown are based on Fund total returns with dividends and distributions reinvested and do not reflect sales charges. Fund holdings are subject to change at any time and are not recommendations to buy or sell any security. Please see the "Schedule of Investments" included in this report for further holdings information. Chase Growth Fund SCHEDULE OF INVESTMENTS at March 31, 2002 (Unaudited) Shares COMMON STOCKS: 80.85% Market Value Beverage: 6.94% 17,600 Anheuser-Busch Companies, Inc $ 918,720 26,500 The Pepsi Bottling Group, Inc. 685,555 26,400 PepsiCo, Inc 1,359,600 2,963,875 Defense: 5.60% 15,900 General Dynamics Corp. 1,493,805 12,100 United Technologies Corp. 897,820 2,391,625 Drugs: 8.42% 10,300 Forest Laboratories, Inc.* 841,510 24,700 Johnson & Johnson 1,604,265 29,000 Pfizer, Inc 1,152,460 3,598,235 Electronics: 1.13% 4,300 L-3 Communications Holdings, Inc.* 481,600 Energy/Oil/Gas/Coal: 6.02% 11,600 ChevronTexaco Corp. 1,047,132 17,300 Phillips Petroleum Corp. 1,086,440 12,100 Suncor Energy, Inc. 437,536 2,571,108 Finance/Banks: 3.90% 11,000 Fifth Third Bancorp 742,280 16,700 State Street Corp. 924,846 1,667,126 Financial Services - Credit/Loans: 4.13% 15,000 MBNA Corp. 578,550 12,100 USA Education, Inc. 1,183,380 1,761,930 See accompanying Notes to Financial Statements. Chase Growth Fund SCHEDULE OF INVESTMENTS at March 31, 2002 (Unaudited) Continued Shares Market Value Health Care Benefits: 5.49% 24,000 UnitedHealth Group, Inc $ 1,834,080 8,000 Wellpoint Health Networks Inc.* 509,360 2,343,440 Hospitals: 2.42% 15,400 Tenet Healthcare Corp.* 1,032,108 Household Products: 2.59% 12,300 The Procter & Gamble Co 1,108,107 Information Services: 4.16% 12,800 Concord EFS, Inc.* 425,600 10,800 Fiserv, Inc.* 496,692 9,800 First Data Corp. 855,050 1,777,342 Leisure Time: 1.34% 10,400 Harley-Davidson, Inc 573,352 Medical Supplies: 4.66% 16,100 Baxter International, Inc. 958,272 19,875 Biomet, Inc. 537,818 6,400 St. Jude Medical, Inc.* 493,760 1,989,850 Personal Care: 2.62% 20,600 Avon Products, Inc 1,118,992 Retail - Discount: 3.21 % 22,400 Wal-Mart Stores, Inc. 1,372,896 See accompanying Notes to Financial Statements. Chase Growth Fund SCHEDULE OF INVESTMENTS at March 31, 2002 (Unaudited) Continued Shares Market Value Retail - Specialty: 9.64% 7,700 AutoZone, Inc.* $ 530,145 11,700 Best Buy Co., Inc.* 926,640 27,300 The Home Depot, Inc. 1,327,053 30,600 Lowe's Companies, Inc 1,330,794 4,114,632 Service Companies: 5.03% 13,400 Apollo Group, Inc. - Class A* 717,570 15,900 FedEx Corporation* 923,790 11,400 H&R Block, Inc. 506,730 2,148,090 Tobacco: 3.55% 28,800 Philip Morris Companies, Inc. 1,516,896 Total Common Stocks (Cost $30,369,654) 34,531,204 See accompanying Notes to Financial Statements. Chase Growth Fund SCHEDULE OF INVESTMENTS at March 31, 2002 (Unaudited) Continued Shares Short-Term Investments 19.15% Market Value 8,179,302 Federated Cash Trust Treasury Money Market $ 8,179,302 (Cost $8,179,302) Total Investments in Securities (Cost $38,548,956): 100.00% $ 42,710,506 Liabilities in Excess of Other Assets (1,006) Net Assets: 100.00% $ 42,709,500 * Non-income producing security. See accompanying Notes to Financial Statements. Chase Growth Fund STATEMENT OF ASSETS AND LIABILITIES at March 31, 2002 (Unaudited) ASSETS Cash $ 17,452 Investments in securities, at value (identified cost $38,548,956) 42,710,506 Receivables Fund shares issued 9,770 Dividends and interest 36,117 Prepaid expenses 5,983 Total assets 42,779,828 LIABILITIES Payables Fund shares repurchased 6,804 Due to Advisor 32,612 Accrued expenses 30,912 Total liabilities 70,328 NET ASSETS $ 42,709,500 Net asset value, offering and redemption price per share [$42,709,500 / 2,852,334 shares outstanding; unlimited number of shares (par value $0.01) authorized] $ 14.97 COMPONENTS OF NET ASSETS Paid-in capital $ 42,894,414 Accumulated net investment loss (70,036) Accumulated net realized loss on investments (4,276,428) Net unrealized appreciation on investments 4,161,550 Net assets $ 42,709,500 See accompanying Notes to Financial Statements. Chase Growth Fund STATEMENT OF OPERATIONS For the Six Months Ended March 31, 2002 (Unaudited) INVESTMENT INCOME Income Dividends (net of withholding tax of $96) $ 166,843 Interest 41,392 Total income 208,235 Expenses Advisory fees (Note 3) 187,814 Administration fees (Note 3) 37,563 Transfer agent fees 18,151 Fund accounting fees 17,701 Professional fees 15,825 Registration fees 10,014 Reports to shareholders 3,491 Trustee fees 2,992 Custody fees 2,837 Insurance fees 1,725 Miscellaneous 817 Total expenses 298,930 Less: advisory fee waiver (Note 3) (20,683) Net expenses 278,247 Net investment loss (70,012) REALIZED AND UNREALIZED GAIN / (LOSS) ON INVESTMENTS Net realized loss from security transactions (1,811,550) Net change in unrealized appreciation on investments 3,897,721 Net realized and unrealized gain on investments 2,086,171 Net Increase in Net Assets Resulting from Operations $ 2,016,159 See accompanying Notes to Financial Statements. Chase Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS Six Months Ended Year March 31, 2002 Ended (Unaudited) Sept. 30, 2001 NET INCREASE / (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment (loss) / income $ (70,012)$ 105,721 Net realized (loss) / gain on security transactions (1,811,550) (2,118,432) Net change in unrealized appreciation / (depreciation) on investments 3,897,721 (4,407,077) Net increase / (decrease) in net assets resulting from operations 2,016,159 (6,419,788) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Net investment income (93,605) (12,092) Net realized gain on security transactions 0 (354,500) Total dividends and distributions to shareholders (93,605) (366,592) TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net increase in net assets derived from net change in outstanding shares (a) 6,864,482 17,577,485 Total increase in net assets 8,787,036 10,791,105 NET ASSETS Beginning of period 33,922,464 23,131,359 End of period $ 42,709,500 $ 33,922,464
(a) A summary of share transactions is as follows:
Six Months Ended Year Ended March 31, 2002 (Unaudited) September 30, 2001 Shares Paid in Capital Shares Paid in Capital Shares sold 595,616 $8,686,337 1,140,433 $18,568,377 Shares issued on reinvestments of distributions 6,122 88,768 21,496 365,223 Shares redeemed (132,701) (1,910,623) (85,942) (1,356,115) Net increase 469,037 $6,864,482 1,075,987 $17,577,485
See accompanying Notes to Financial Statements. Chase Growth Fund FINANCIAL HIGHLIGHTS For a share outstanding throughout the period
Six Months Ended Year Year Year Dec.2,1997* March 31, Ended Ended Ended through 2002 Sept. 30, Sept. 30, Sept. 30, Sept. 30, (Unaudited) 2001 2000 1999 1998 Net asset value, beginning of period $14.23 $17.69 $13.66 $10.68 $10.00 Income from investment operations: Net investment (loss) / income (0.02) 0.05 (0.01) (0.05) (0.01) Net realized and unrealized gain (loss) on investments 0.80 (3.28) 4.04 3.03 0.70 Total from investment operations 0.78 (3.23) 4.03 2.98 0.69 Less distributions: From net investment income (0.04) (0.01) - - (0.01) From net realized gain - (0.22) - - - Total distributions (0.04) (0.23) - - (0.01) Net asset value, end of period $14.97 $14.23 $17.69 $13.66 $10.68 Total return 5.47%++ (18.47%) 29.50% 27.90% 6.91%++ Ratios/supplemental data: Net assets, end of period (thousands) $42,709 $33,922 $23,131 $9,140 $4,010 Ratio of expenses to average net assets: Before expense reimbursement 1.59%+ 1.57% 1.70% 2.37% 3.98%+ After expense reimbursernent 1.48%+ 1.48% 1.48% 1.48% 1.47%+ Ratio of net investment loss to average net assets After expense reimbursement (0.37%)+ 0.34% (0.06%) (0.59%) (0.17%)+ Portfolio turnover rate 51.23% 94.84% 73.94% 62.49% 54.49%
*Commencement of operations. +Annualized. ++Not Annualized. See accompanying Notes to Financial Statements. Chase Growth Fund NOTES TO FINANCIAL STATEMENTS at March 31, 2002 (Unaudited) NOTE 1 - ORGANIZATION The Chase Growth Fund (the "Fund") is a series of shares of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund's investment objective is growth of capital and it intends to achieve its objective by investing primarily in common stocks of domestic companies with large market capitalizations of $10 billion and above. The Fund began operations on December 2, 1997. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America. A. Security Valuation: The Fund's investments are carried at fair value. Securities that are primarily traded on a national securities exchange shall be valued at the last sale price on the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices. Securities primarily traded in the NASDAQ National Market System for which market quotations are readily available shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Over-the-counter ("OTC") securities which are not traded in the NASDAQ National Market System shall be valued at the most recent trade price. Securities for which market quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value. B. Federal Income Taxes: It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. Security Transactions, Dividends and Distributions: Security transactions are accounted for on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date.The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differs from generally accepted accounting principles. D. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. Chase Growth Fund NOTES TO FINANCIAL STATEMENTS at March 31, 2002 (Unaudited) Continued NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the six months ended March 31, 2002, Chase Investment Counsel Corporation (the "Advisor") provided the Fund with investment management services under an Investment Advisory Agreement. The Advisor furnished all investment advice, office space, facilities, and provides most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 1.00% based upon the average daily net assets of the Fund. For the six months ended March 31, 2002, the Fund incurred $187,814 in Advisory Fees. The Fund is responsible for its own operating expenses. The Advisor has agreed to reduce fees payable to it by the Fund and to pay the Fund's operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 1.48% of average net assets (the "expense cap"). Any such reductions made by the Advisor in its fees or payment of expenses which are a Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the applicable limitation on the Fund's expenses. The Advisor is permitted to be reimbursed only for fee reductions and expense payments made in the previous three fiscal years, but is permitted to look back five years and four years, respectively, during the initial six years and seventh year of the Fund's operations. Any such reimbursement is also contingent upon Board of Trustees review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to a Fund's payment of current ordinary operating expenses. For the six months ended March 31, 2002, the Advisor reduced its fees and absorbed Fund expenses in the amount of $20,683; no amounts were reimbursed to the Advisor. U.S. Bancorp Fund Services, LLC (the "Administrator") (formerly Investment Company Administration, LLC) acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rate: Fund asset level Fee rate Less than $15 million $30,000 $15 million to less than $50 million 0.20% of average daily net assets $50 million to less than $100 million 0.15% of average daily net assets $100 million to less than $150 million 0.10% of average daily net assets More than $150 million 0.05% of average daily net assets Quasar Distributors, LLC (the "Distributor") acts as the Fund's principal underwriter in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Administrator. Certain officers of the Fund are also officers of the Administrator. Chase Growth Fund NOTES TO FINANCIAL STATEMENTS at March 31, 2002 (Unaudited) Continued NOTE 4 - SECURITIES TRANSACTIONS For the six months ended March 31, 2002, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $15,781,543 and $18,750,449, respectively. NOTE 5 - INCOME TAXES At March 31, 2002, the cost of securities for Federal income tax purposes was $38,548,956. Gross unrealized appreciation and depreciation of securities is as follows. Gross unrealized appreciation $4,350,514 Gross unrealized depreciation (188,964) Net unrealized appreciation $4,161,550 Advisor Chase Investment Counsel Corporation 300 Preston Avenue, Suite 403 Charlottesville, Virginia 22902-5091 Distributor Quasar Distributors, LLC 615 East Michigan Street Milwaukee, WI 53202 Transfer Agent Orbitex Data Services, Inc. 14707 California Street, Suite 5 Omaha, NE 68154 Custodian U.S. Bank, N.A. 425 Walnut Street M/L 6118 Cincinnati, OH 45202 Independent Accountants PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, NY 10036 Legal Counsel Paul, Hastings, Janofsky & Walker, LLP 55 Second Street, 24th Floor San Francisco, CA 94105 This report is intended for shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. For a current prospectus please call 1-888-861-7556. Past performance results shown in this report should not be considered a representation of future performance. Share price and returns will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are dated and are subject to change. CHASE GROWTH FUND Semi-Annual Report Dated March 31, 2002 Chase Investment Counsel Corporation 300 Preston Avenue Suite 403 Charlottesville, Virginia 22902-5091 Advisor: 434-293-9104 Shareholder Servicing: 888-861-7556 -----END PRIVACY-ENHANCED MESSAGE-----