-----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, HwKslToUh2vrUe1mQ7Q067aYCDGomeEhxeiFwUwwWh3Hlf4I3bnpX3kK3zusYh93 8BIveGyDhHJcS4bM2aZIWw== 0000894189-03-001078.txt : 20030801 0000894189-03-001078.hdr.sgml : 20030801 20030801142742 ACCESSION NUMBER: 0000894189-03-001078 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030531 FILED AS OF DATE: 20030801 EFFECTIVENESS DATE: 20030801 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07959 FILM NUMBER: 03817640 BUSINESS ADDRESS: STREET 1: U.S BANCORP FUND SERVICES, LLC STREET 2: 615 E MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4147655335 MAIL ADDRESS: STREET 1: 615 E MICHIGAN STREET STREET 2: SUITE 2 CITY: MILWAUKEE STATE: WI ZIP: 53202 N-CSR 1 ncsr.txt CERTIFIED SHAREHOLDER REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07959 Advisors Series Trust (Exact name of registrant as specified in charter) 615 East Michigan Street Milwaukee, WI 53202 (Address of principal executive offices) (Zip code) Eric M. Banhazl Advisors Series Trust 2020 East Financial Way, Suite 100 Glendora, CA 91741 (Name and address of agent for service) (414) 765-5344 Registrant's telephone number, including area code Date of fiscal year end: November 30, 2003 ----------------- Date of reporting period: May 31, 2003 ------------ Item 1. Report to Stockholders. HOWARD CAPITAL APPRECIATION FUND SEMI-ANNUAL REPORT MAY 31, 2003 Howard Capital Appreciation Fund Dear Shareholder: The equity market rally continues, as the psychology of the investor community, which remembers the strong rally upon the inception of the Gulf War in 1991, has carried the equity markets to new recovery highs since the March retracement lows. The positive divergences that began to surface over the past several weeks have become the foundation for a more positive near-term outlook and the broad markets have responded by appreciating more than 25% since early March. We believe that the current strength in the equity markets is not due to improved business fundamentals, but rather, is based upon the expectation that the Federal Reserve will respond to the current weakness with "non-conventional measures" in an effort to stimulate economic growth. While we support the belief that the Fed and, indeed, Washington will implement any and all measures in their respective efforts to place the economy on a growth path, current stock market price levels may have already discounted this possibility. Adding fuel to the fire, Chairman Greenspan recently mentioned the probability of taking out some "additional insurance" with further interest rate cuts. As a result, fixed-income investors have leveraged their positions to an extreme that has produced new lows in yields, with the 10-year Treasury approaching an astonishing 3% (as of this writing). This rally in the fixed-income markets has, in turn, apparently convinced equity investors that the efforts by the Federal Reserve and Washington will be of sufficient magnitude to recreate the equity "bubble" that peaked during the first quarter of calendar 2000. In recognition of the massive efforts underway to reflate the economy, recent fears of a deflationary environment have shifted to optimism regarding corporate profit growth. Investors are beginning to move away from their defensive posture of the past few years as speculation and greed have once again replaced risk aversion and safety. The success of the military campaign in Iraq, and more specifically the efforts of the coalition to secure Iraq's oil fields, have quelled fears of a long-term supply shock in oil. The price of oil had increased to over $40/barrel over the last several months due not only to the uncertainty in Iraq, but also to the strikes that had severely reduced production in Venezuela and Nigeria. With the oil fields and distribution channels now relatively safe, the price of oil has dropped dramatically. We believe that this decline in prices has created a significant long-term opportunity to invest in the energy sector. As such, we have selectively increased our exposure to the Energy sector, and oil services companies in particular. Although the stock market is usually a reliable leading indicator of an economic recovery, the economy is not as yet on a strong growth path. Industrial production continues to decline and is now more than 2% below it's level of last September. Retail sales and personal consumption expenditures also continue the weakening trend they began in January. A survey of purchasing managers continues to hover just above recession levels. With the postwar rebound yet to materialize, the Federal Reserve has all but admitted that the current economic weakness is not due to geopolitical events. With equity valuations at record levels, and with the recent market rally already underway for several weeks, it is now approaching a percentage gain comparable to prior rallies. We believe that now is not the time for an increase in equity exposure. Sincerely, /s/ Anthony Orphanos - ------------------------ Anthony Orphanos Chief Investment Officer Opinions expressed are those of the advisor, are subject to change and are not guaranteed. Sector allocations and portfolio holdings are subject to change and are not recommendations to buy or sell any security. Please see the following Semi-Annual Report for more Fund holdings information. Mutual fund investing involves risk; loss of principal is possible. (07/03) Howard Capital Appreciation Fund SCHEDULE OF INVESTMENTS at May 31, 2003 (Unaudited) - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 67.17% Market Value - -------------------------------------------------------------------------------- Agricultural Chemicals: 3.87% 30,000 Agrium, Inc. . . . . . . . . . . . . . . . . . . . $357,000 ----------- Aerospace/Defense - Equipment: 4.82% 17,000 Honeywell International, Inc. . . . . . . . . . . 445,400 ----------- Automobiles & Components: 1.91% 5,000 General Motors Corp. . . . . . . . . . . . . . . . 176,650 ----------- Consumer Goods: 2.91% 8,000 The Gillette Co. . . . . . . . . . . . . . . . . . 268,880 ----------- Electric Equipment: 2.83% 5,000 Emerson Electric Co. . . . . . . . . . . . . . . . 261,500 ----------- Electronic Components - Semiconductor: 2.89% 13,000 Texas Instruments, Inc. . . . . . . . . . . . . . 266,500 ----------- Farm Machinery & Equipment: 4.07% 21,000 AGCO Corp.* . . . . . . . . . . . . . . . . . . . 375,480 ----------- Financials - Diversified Financial Services: 13.48% 6,700 American International Group, Inc. . . . . . . . . 387,796 8,900 Citigroup, Inc. . . . . . . . . . . . . . . . . . 365,078 15,000 J.P. Morgan Chase & Co. . . . . . . . . . . . . . 492,900 ----------- 1,245,774 ----------- Food & Kinderd Products: 2.98% 23,000 Archer-Daniels-Midland Co. . . . . . . . . . . . . 275,310 ----------- Healthcare - Pharmaceuticals: 5.11% 8,500 Merck & Co, Inc. . . . . . . . . . . . . . . . . . 472,430 ----------- Medical - Biomedical/Genomics: 5.97% 5,800 Amgen, Inc.* . . . . . . . . . . . . . . . . . . . 375,492 15,000 Applera Corporation - Celera Genomics Group* . . . 176,250 ----------- 551,742 ----------- Multimedia: 2.14% 13,000 AOL Time Warner, Inc.* . . . . . . . . . . . . . . . . 197,860 ----------- Oil & Gas Extraction 12.39% 3,800 Devon Energy Corp. . . . . . . . . . . . . . . . . . . 197,600 5,500 Encana Corp. . . . . . . . . . . . . . . . . . . . . . 201,575 5,800 Ensco International, Inc. . . . . . . . . . . . . . . 174,000 8,000 Global SantaFe Corp. . . . . . . . . . . . . . . . . . 199,040 8,000 Rowan Companies, Inc.* . . . . . . . . . . . . . . . . 191,520 4,000 Weatherford International, Ltd.* . . . . . . . . . . . 181,400 ------------ 1,145,135 ------------ Technology - Semiconductors: 1.80% 8,000 Intel Corp. . . . . . . . . . . . . . . . . . . . . . 166,560 ------------ Total Common Stocks (Cost $8,045,819) . . . . . . . . 6,206,221 ------------ - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS: 8.39% - -------------------------------------------------------------------------------- 775,286 Federated Cash Trust Treasury Money Market (Cost $775,286) 775,286 Total Investments in Securities (Cost $8,821,105): 75.56% 6,981,507 Other Assets Less Liabilities: 24.44% . . . . . . . . . . 2,258,482 ------------- Net Assets: 100.00% . . . . . . . . . . . . . . . . . . . $9,239,989 ============= SECURITIES SOLD SHORT: (32.41%) - -------------------------------------------------------------------------------- 100,000 Semiconductor HOLDRs Trust . . . . . . . . . . . . . . $2,995,000 ============= *Non-income producing security. See Notes to Financial Statements. Howard Capital Appreciation Fund STATEMENT OF ASSETS AND LIABILITIES at May 31, 2003 (Unaudited) - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (identified cost $8,821,105) $ 6,981,507 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,735,874 Receivables Due from broker . . . . . . . . . . . . . . . . . . . . . 2,738,149 Dividends and interest . . . . . . . . . . . . . . . . . . 11,225 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . 9,267 ------------ Total assets . . . . . . . . . . . . . . . . . . . . 12,476,022 ------------ LIABILITIES Securities sold short, at value (Proceeds of $2,738,157) . . . 2,995,000 Payables Securities purchased . . . . . . . . . . . . . . . . . . . 119,735 Fund shares redeemed . . . . . . . . . . . . . . . . . . . 100,000 Due to advisor . . . . . . . . . . . . . . . . . . . . . . 2,911 Distribution fees . . . . . . . . . . . . . . . . . . . . 1,997 Due to administrator . . . . . . . . . . . . . . . . . . . 2,548 Accrued expenses and other liabilities . . . . . . . . . . . . 13,842 ------------ Total liabilities . . . . . . . . . . . . . . . . . . 3,236,033 ------------ NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,239,989 ============ Net asset value, offering and redemption price per share [$9,239,989/1,010,535 shares outstanding; unlimited number of shares (par value $0.01) authorized] . . . . . . . . . . . . . . $9.14 ===== COMPONENTS OF NET ASSETS Paid-in capital . . . . . . . . . . . . . . . . . . . $13,474,956 Accumulated net realized loss on investments . . . . . (2,138,526) Net unrealized depreciation on: Investments . . . . . . . . . . . . . . . . . . . (1,839,598) Short positions . . . . . . . . . . . . . . . . . (256,843) ------------- Net assets . . . . . . . . . . . . . . . . . $ 9,239,989 ============= See Notes to Financial Statements. Howard Capital Appreciation Fund STATEMENT OF OPERATIONS - For the Six Months Ended May 31, 2003 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividend Income . . . . . . . . . . . . . . . . . . . $39,799 Interest Income . . . . . . . . . . . . . . . . . . . 11,072 Other Income . . . . . . . . . . . . . . . . . . . . . 210 ------------- 51,081 ------------- Expenses Advisory fees (Note 3) . . . . . . . . . . . . . . . . 46,547 Administration fee (Note 3) . . . . . . . . . . . . . 14,959 Professional fees . . . . . . . . . . . . . . . . . . 13,460 Distribution Expense (Note 3) . . . . . . . . . . . . 11,637 Fund accounting fees . . . . . . . . . . . . . . . . . 9,444 Registration fees . . . . . . . . . . . . . . . . . . 7,989 Transfer agent fees . . . . . . . . . . . . . . . . . 7,466 Trustees' fees . . . . . . . . . . . . . . . . . . . . 2,739 Reports to shareholders . . . . . . . . . . . . . . . 2,481 Custody fees . . . . . . . . . . . . . . . . . . . . . 2,240 Miscellaneous . . . . . . . . . . . . . . . . . . . . 1,022 Insurance expense . . . . . . . . . . . . . . . . . . 819 ------------- Total expenses . . . . . . . . . . . . . . . . . 120,803 Less: advisory fee waiver (Note 3) . . . . . . . (30,036) ------------- Net expenses . . . . . . . . . . . . . . . . . . 90,767 ------------- Net investment loss . . . . . . . . . . . . . (39,686) ------------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss on: Investments . . . . . . . . . . . . . . . . . . . . . (51,527) Short positions . . . . . . . . . . . . . . . . . . . (63,752) ------------- (115,279) ------------- Net change in unrealized appreciation/(depreciation) on: Investments . . . . . . . . . . . . . . . . . . . . . 152,471 Short positions . . . . . . . . . . . . . . . . . . . (256,843) ------------- (104,372) ------------- Net realized and unrealized loss on investments . . . . . (219,651) ------------- Net Decrease in Net Assets Resulting from Operations . $ (259,337) ============= See Notes to Financial Statements. Howard Capital Appreciation Fund STATEMENTS OF CHANGES IN NET ASSETS
Year Period Ended Ended May 31, 2003 November 30, (Unaudited) 2002 DECREASE IN NET ASSETS FROM: OPERATIONS Net investment loss . . . . . . . . . . . . . . . . . . . . . (39,686) $ (72,482) Net realized loss on investments and securities sold short . . (115,279) (560,636) Net change in unrealized depreciation on investments and short positions . . . . . . . . . . . . (104,372) (827,004) ------------ ----------- Net decrease in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . (259,337) (1,460,122) ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income . . . . . . . . . . . . . . . . . . -- (27,851) ------------ ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net (decrease)/increase in net assets derived from net change in outstanding shares (a) . . . . . . . . . . . . . . . . . (619,913) 303,184 ------------ ----------- Total decrease in net assets . . . . . . . . . . . . . . . (879,250) (1,184,789) ------------ ----------- NET ASSETS Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . 10,119,239 11,304,028 ------------ ----------- End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,239,989 $10,119,239 ============ ===========
(a) A summary of share transactions is as follows:
Period Ended Year May 31, 2003 Ended (Unaudited) November 30, 2002 --------------------------------------------------------- Shares Paid in Capital Shares Paid in Capital ------ --------------- ------ --------------- Shares sold . . . . . . . . . 35,556 $ 312,861 304,197 $ 2,802,047 Shares issued on reinvestments of distributions. . -- -- 2,517 27,525 Shares redeemed . . . . . . . . (105,656) (932,774) (255,125) (2,526,388) --------- --------- -------- ----------- Net increase/(decrease) . . . . . (70,100) $(619,913) 51,589 $ 303,184 ========= ========= ======== ===========
See Notes to Financial Statements. Howard Capital Appreciation Fund FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- ---------------------------------------------------------------------------------------------------- Period Ended December 29, 1998* May 31, 2003 Year Ended November 30, through (Unaudited) 2002 2001 2000^ November 30, 1999 - ----------------------------------------------------------------------------------------------------- Net asset value, beginning of period . . $9.36 $10.98 $10.73 $12.04 $10.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment (loss) . . . . . . . (0.04) (0.07) (0.02) (0.04) -- Net realized and unrealized (loss)/gain on investments . . . . (0.18) (1.52) 0.39 (1.27) 2.04 ------ ------ ------ ------ ------ Total from investment operations . . . . (0.22) (1.59) 0.37 (1.31) 2.04 ------ ------ ------ ------ ------ Less distributions: From net investment income . . . . . -- (0.03) 0.00** 0.00** -- From realized gain from security transactions . . . . . . -- -- (0.12) -- -- ------ ------ ------ ------ ------ Total distributions . . . . . . . . . . . -- (0.03) (0.12) -- -- ------ ------ ------ ------ ------ Net asset value, end of period . . . . . $9.14 $9.36 $10.98 $10.73 $12.04 ====== ====== ====== ====== ====== Total return . . . . . . . . . . . . . . (2.35%)++ (14.53%) 3.50% (10.86%) 20.40%++ Ratios/supplemental data: Net assets, end of period (thousands) . . $9,240 $10,119 $11,304 $13,835 $9,992 Ratio of expenses to average net assets: Before expense reimbursement . . . . 2.60%+ 2.50% 2.42% 2.01% 4.39%+ After expense reimbursement . . . . 1.95%+ 1.95% 1.95% 1.95% 1.95%+ Ratio of net investment (loss)/income to average net assets After expense reimbursement . . . . (0.85%)+ (0.74%) (0.17%) (0.26%) 0.07%+ Portfolio turnover rate . . . . . . . . . 33.31%++ 200.78% 187.57% 181.51% 211.31%++
* Commencement of operations. ** Amount distributed represents less than one-half of one cent per share. + Annualized. ++ Not Annualized ^ Computed using average shares outstanding. See Notes to Financial Statements. Howard Capital Appreciation Fund NOTES TO FINANCIAL STATEMENTS at May 31, 2003 (Unaudited) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Howard Capital Appreciation 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 investment objective of the Fund is to seek growth of capital. The Fund attempts to achieve its objective by investing primarily in equity securities of large to mid capitalization companies. The Fund began operations on December 29, 1998. 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 using the NASDAQ Official Closing Price ("NOCP"). If the NOCP is not available, such securities 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. Effective June 13, 2003, the Board of Trustees amended the valuation procedures to allow for the use of the NASDAQ Official Closing Price ("NOCP") for securities primarily traded on the NASDAQ National Market System, when applicable. 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 differ from accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their Federal tax treatment. 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. E. Securities Sold Short. The Fund may sell securities it does not own in anticipation of a decline in the market value of the securities. The Fund will generally borrow the security (generally from the broker through which the short sale is made) sold short in order to make delivery to the buyer then replace the borrowed security by purchasing it at the market price at the time of replacement. Until the security is replaced, the proceeds of the short sale are retained by the broker and the Fund is required to pay to the broker a negotiated portion of any dividend or interest which accrue during the period of the loan. The Fund would realize a gain if the security declines in price between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund would incur a loss as a result of the short sale as the price of the security increases. Losses on securities sold short may be unlimited. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the period ended May 31, 2003, Howard Capital Management (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 period ended May 31, 2003, the Fund incurred $46,547 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 Fund operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 1.95% of average net assets (the "expense cap"). Any such reduction made by the Advisor in its fees or payment of expenses which are the 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 Fund 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 the Fund's payment of current ordinary operating expenses. For the period ended May 31, 2003, the Advisor reduced its fees in the amount of $30,036; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $251,441 and expire as follows: Year Amount ---- ------ 2004 $113,646 2005 107,759 2006 30,036 -------- $251,441 ======== U.S. Bancorp Fund Services, LLC (the "Administrator") 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 The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 (the "Plan"). The Plan permits the Fund to pay for distribution and related expenses at an annual rate of up to 0.25% of the Fund's average daily net assets annually. The expenses covered by the Plan may include the cost of preparing and distributing prospectuses and other sales material, advertising and public relations expenses, payments to financial intermediaries and compensation of personnel involved in selling shares of the Fund. Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred. Pursuant to a distribution coordination agreement adopted under the Plan, distribution fees are paid to the Advisor as "Distribution Coordinator". For the period ended May 31, 2003, the Fund paid the Distribution Coordinator $11,637. 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 and the Distributor. NOTE 4 - PURCHASES AND SALES OF SECURITIES During the period ended May 31, 2003, the aggregate purchases and sales of securities (excluding short-term investments) were: Purchases Sales --------- --------- Long Transactions $2,366,782 $3,168,852 Short Sale Transactions $2,610,164 $4,992,543 Howard Capital Appreciation Fund NOTES TO FINANCIAL STATEMENTS at May 31, 2003 (Unaudited), Continued - -------------------------------------------------------------------------------- NOTE 5 - INCOME TAXES At May 31, 2003, the cost of Securities for Federal income tax purposes was $8,818,822. Gross unrealized appreciation and depreciation of securities as follows: Gross tax unrealized appreciation $243,584 Gross tax unrealized depreciation (2,340,025) --------------- Net tax unrealized depreciation $2,096,441 =============== As of November 30, 2002, the Fund's most recently completed fiscal year end, the Fund had capital loss carryforwards of: Year Amount ---- ------ 2007 $(177,758) 2009 (1,232,062) 2010 (613,428) ----------- $(2,023,248) =========== The tax composition of dividends paid during the six months ended May 31, 2003 and the year ended November 30, 2002 were as follows: 2003 2002 Distributions paid from: Ordinary income -- $27,851 Long-term capital gain -- -- ------- ------- -- $27,851 ======= ======= As of May 31, 2003, there were no distributable earnings on a tax basis. NOTE 6 - SUBSEQUENT EVENTS On June 13, 2003, PricewaterhouseCoopers LLP ("PwC") resigned as the independent accountants for the Howard Capital Appreciation Fund (the "Fund"), a series of Advisors Series Trust (the "Company"). On June 13, 2003, the Company retained Tait Weller & Baker CPA's, LLP ("Tait") as the independent accountants for the Funds. The retention of Tait as the independent accountants of the Fund has been approved by the Company's Audit Committee and Board of Trustees. The reports of PwC on the financial statements of the Fund for the past two fiscal years contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. In connection with its audits for the two most recent fiscal years and through June 13, 2003, there have been no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC would have caused them to make reference thereto in their report on the financial statements for such years. HOWARD CAPITAL MANAGEMENT ADVISOR HOWARD CAPITAL MANAGEMENT 45 ROCKEFELLER PLAZA, SUITE 1440 NEW YORK, NEW YORK 10111 DISTRIBUTOR QUASAR DISTRIBUTORS, LLC 615 EAST MICHIGAN STREET, 2ND FLOOR MILWAUKEE, WISCONSIN 53202 CUSTODIAN U.S. BANK, N.A. 425 WALNUT STREET CINCINNATI, OHIO 45202 TRANSFER AGENT U.S. BANCORP FUND SERVICES,LLC 615 EAST MICHIGAN STREET MILWAUKEE, WISCONSIN 53202 (866) 205-0528 INDEPENDENT ACCOUNTANTS TAIT, WELLER & BAKER 1818 MARKET STREET, SUITE 2400 PHILADELPHIA, PENNSYLVANIA 19103 LEGAL COUNSEL PAUL, HASTINGS, JANOFSKY & WALKER, LLP 55 SECOND STREET, 24TH FLOOR SAN FRANCISCO, CALIFORNIA 94105 This report is intended for the shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. To obtain a current prospectus please call 866-205-0528. Item 2. Code of Ethics. Not applicable to semi-annual reports. Item 3. Audit Committee Financial Expert. Not applicable to semi-annual reports. Item 4. Principal Accountant Fees and Services. Not applicable to semi-annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. [Reserved] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. [Reserved] Item 9. Controls and Procedures. (a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's President and Treasurer/CFO have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure. (b) There were no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses. Item 10. Exhibits. (a) Any code of ethics or amendment thereto. Not applicable to annual reports for periods ending before July 15, 2003. (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. (c) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Advisors Series Trust By (Signature and Title) /s/ Eric M. Banhazl -------------------------- Eric M. Banhazl, President Date 7/31/03 ---------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. (Registrant) Advisors Series Trust By (Signature and Title) /s/ Douglas G. Hess -------------------------- Douglas G. Hess, Treasurer Date 7/31/03 ------- EX-99.CERT906 3 cert906.txt CERTIFICATION PERSUANT TO SECTION 906 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Advisors Series Trust, does hereby certify, to such officer's knowledge, that the report on Form N-CSR of Advisors Series for the period ended May 31, 2003 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, that the and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of Advisors Series Trust for the stated period. /s/Eric M. Banhazl /s/Douglas G. Hess - ------------------- --------------- Eric M. Banhazl Douglas G. Hess President, Advisors Series Trust Treasurer, Advisors Series Trust Dated: 07/31/03 -------- A signed original of this written statement required by Section 906 has been provided to Advisors Series Trust and will be retained by Advisors Series Trust and furnished to the SEC or its staff upon request. This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Advisors Series Trust for purposes of the Securities Exchange Act of 1934. EX-99.CERT 4 certs.txt PRESIDENT AND TREASURER CERTIFICATIONS CERTIFICATIONS I, Eric M. Banhazl, certify that: 1. I have reviewed this report on Form N-CSR of the Advisors Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: __07/28/03____________ /s/ Eric M. Banhazl -------- ------------------- Eric M. Banhazl President CERTIFICATIONS I, Douglas G. Hess, certify that: 1. I have reviewed this report on Form N-CSR of the Advisors Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 07/31/03 /s/ Douglas G. Hess -------- ------------------- Douglas G. Hess Treasurer -----END PRIVACY-ENHANCED MESSAGE-----