-----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, Ed20TC4leNkCe6xsUlo8yHO8QHJS4nnj0GIgRcW7A2mh5O+0HP/kHsjEfpcUc6Xl SN3xBbNKgPjZN/s/dDbxaw== 0000894189-03-001258.txt : 20030827 0000894189-03-001258.hdr.sgml : 20030827 20030827163023 ACCESSION NUMBER: 0000894189-03-001258 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030827 EFFECTIVENESS DATE: 20030827 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: 03868883 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 formncsr.txt MCCARTHY FUND 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: June 30, 2003 ------------- Date of reporting period: June 30, 2003 ------------- Item 1. Report to Stockholders. McCarthy Fund (MGAMX) [LOGO] McCARTHY FUND Annual Report June 30, 2003 McCarthy Fund A Series of Advisors Series Trust (MGAMX) Annual Letter to Shareholders June 30, 2003 Dear Fellow Shareholder: The McCarthy Fund's performance for various periods ended June 30, 2003, and the performance for the Standard & Poor's 500 Index are shown below: Time McCarthy Standard & Poor's MGAMX Period Fund 500 Index Versus Index ------ ---- --------- ------------ Three months ended June 30, 2003 23.00% 15.39% +7.61% Six months ended June 30, 2003 13.16% 11.76% +1.40% Year ended June 30, 2003 7.87% 0.25% +7.62% Annualized from August 6, 2001 inception (6.50)% (8.92)% +2.42% "I am extraordinarily patient, provided I get my own way in the end." Margaret Thatcher The stock market gains for the second quarter and year-to-date 2003 contrast with the frustrating losses during 2002. With war, corporate governance issues, and a sluggish economy, investors with the patience to remain invested in stocks should be complimented for their discipline. The McCarthy Fund gained 7.87% for the year ended June 30, 2003. The Standard & Poor's 500 stock index gained 0.25% for the same period. Since inception of the McCarthy Fund, the annualized return of the Fund is 2.42% per year better than the Index. We are pleased with the Fund's recent performance and look forward to a day we can report absolute annualized gains since inception. "That's the secret to life... replace one worry with another.... " Charles M. Schulz, Charlie Brown Charlie Brown must be an investor. As worries about the war in Iraq, North Korea, and corporate governance issues eased, a new crop of worries was planted. The aftermath of war in Iraq brings fear that U.S. troops will be mired there for years. With the recent stock market rally, stock market "valuation" is receiving press as a new worry. How things change! To worry about valuation was unthinkable during the "go-go" time of the technology bubble. Stock market investors will always have worries. In fact, as contrarians, an absence of investor worries would really worry us! Generally, the market has discounted the known worries, and it is the unknown that typically has the largest impact on investments. It is our job to navigate the "worry labyrinth" and invest in businesses that survive and prosper despite our changing world. "The future ain't what it used to be." Yogi Berra We disagree. Many pundits have predicted that future stock market returns will dramatically lag historical long-term stock market returns. Predictions of 5% to 7% average return in future years are common. The pundits may be right or wrong in their predictions. McCarthy Fund shareholders should recognize, however, that the Fund portfolio is comprised of individual businesses and not the "stock market". The individual businesses have been selected under an investment discipline that anticipates compelling appreciation potential at the time of purchase. It is clearly easier to generate high returns when the stock market is in a bull market mode. We remain convinced that a patient investor can generate good returns over a market cycle by investing in companies that generate high returns on capital and generous cash flow that is allocated for the benefit of shareholders. In summary, we are not ready to endorse the low stock market return predictions. Recent additions to the McCarthy Fund portfolio: o AdvancePCS, the largest pharmacy benefits management company in the U.S. o Concord EFS, Inc., a transaction-processing firm being acquired by First Data Corp. o Laz-Z-Boy, Inc., the well-known furniture manufacturer o Laboratory Corporation of America Holdings, an independent clinical laboratory company o Omnicare, Inc., a provider of pharmacy services to long-term care facilities Recent eliminations from the McCarthy Fund portfolio: o Applebee's International, Advent Software, Citizens Communications, Energen Corp., Factset Research Systems, Hudson Highland Group, Monster Worldwide, Inc., and R.H. Donnelley Corp were sold as they achieved our valuation targets. o Biogen, Inc., U.S. Bancorp, and Valassis Communications were sold based on our judgment that fundamentals were deteriorating or to replace the positions with more compelling investment opportunities. The companies that comprise the Fund's top ten holdings are listed on the following page. Thank you again for being our partners in the McCarthy Fund! Our team at the McCarthy Fund invests its money in the Fund, not like the Fund. We believe our investment in the Fund properly aligns our interests with yours now and in the future. Sincerely, McCarthy Group Asset Management, Inc. Richard L. Jarvis Art N. Burtscher Chairman - Chief Investment Officer President Past performance of the Fund and the S&P 500 Index is not indicative of future performance. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. Indexes are not available for direct investment and do not incur expenses. Annualized return is from inception through the most recent calendar quarter end (06/30/03). Fund sector allocations and portfolio holdings are subject to change and are not recommendations to buy or sell any security. The information contained in this report is authorized for use when proceeded or accompanied by a prospectus for the McCarthy Fund, which includes more complete information on the charges and expenses related to an ongoing investment in the Fund. Please read the prospectus carefully before you invest or send money. The Fund is distributed by Quasar Distributors, LLC. 08/03 - -------------------------------------------------------------------------------- TEN LARGEST HOLDINGS (Represent 36.1% of Net Assets at June 30, 2003) - -------------------------------------------------------------------------------- Laboratory Corporation of America (LH) 4.8% An independent clinical laboratory company that offers different clinical laboratory tests which are used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease. Tyco International Ltd. (TYC) 4.6% Diversified manufacturing and service company that provides electrical and electronic components, energy solutions, and power products; operates and maintains undersea cable communications systems; installs and services fire detection and suppression systems; provides electronic security systems; specialty valves; and disposable medical supplies and other specialty products. AOL Time Warner (AOL) 4.3% Diversified media and communications company. Business segments consist of America Online (internet), Cable Television, Filmed Entertainment, Networks, Music, and Publishing. Liberty Media Corp Cl A (L) 4.2% Holding company with subsidiaries and investments operating in the media, communications, and entertainment industries. Brands and investments include Encore, STARZ!, Discovery, TV Guide, Fox, USA, QVC, AOL, CNN, TBS, Motorola, and Sprint PCS. Washington Mutual, Inc. (WM) 4.1% Financial services company that serves consumers and small- to mid-sized businesses. Through its subsidiaries, Washington Mutual engages in consumer banking, mortgage banking, commercial banking, financial services, and consumer finance. Cendant Corp. (CD) 3.7% A provider of travel related, real estate related and direct marketing consumer and business services, including real estate brokerage businesses, lodging facilities, rental car business, and financial services through a network of companies. Cendant brand names include Century 21, Coldwell Banker, Amerihost Inn, Days Inn, Howard Johnson, Knights Inn, Ramada Inn, Super 8, Travelodge, Villager, Wingate Inn, Fairfield Resorts, Trendwest, Avis Rental Car, Budget Rental Car, Jackson Hewitt Tax Services, Galileo International, Trip.com and Cheaptickets.com. Apogent Technologies, Inc. (AOT) 2.9% Designs, manufactures, and markets value-added laboratory and life science products for the clinical, research, and industrial markets worldwide. Waste Management, Inc. (WMI) 2.6% World's largest provider of solid waste services such as collection, transfer, disposal, and recycling. Republic Services, Inc. (RSG) 2.6% Third largest U.S. provider of non-hazardous solid waste services such as collection, transfer, disposal, and recycling. Devon Energy Corporation (DVN) 2.3% An independent energy company engaged primarily in oil and gas exploration, development and production, and in the acquisition of producing properties. Portfolio holdings are as of 6/30/03, are subject to change and should not be considered recommendation to buy or sell any security. {LINE CHART} Comparison of the change in value of a $10,000 investment in the McCarthy Fund versus the S&P 500 Composite Index McCarthy S&P Date Fund 500 Index - --------------------------------------- 8/6/01 10,000 10,000 9/30/01 8,950 8,691 12/31/01 10,389 9,620 3/31/02 9,796 9,646 6/30/02 8,160 8,353 9/30/02 6,916 6,910 12/31/02 7,779 7,493 3/31/03 7,517 7,257 6/30/03 8,803 8,374 Annualized Return Cumulative Return Average Annual Total Return One Year Return Since Inception Since Inception McCarthy Fund 7.87% (6.50)% (11.97)% S&P 500 Index 0.25% (8.92)% (16.26)% The fund commenced operations on August 6, 2001. Past performance is not predictive of future performance. Share value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original investment. The returns shown do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares. Indices do not incur expenses and are not available for investment. The S&P 500 Composite Stock Price Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. Average annual total return represents the average change in account value over the periods indicated. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS at June 30, 2003 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 86.84% Market Value - -------------------------------------------------------------------------------- Banks: 4.14% 26,088 Washington Mutual, Inc. $ 1,077,434 --------------- Broadcast Service/Program: 4.22% 95,140 Liberty Media Corp. - Class A* 1,099,818 --------------- Building & Construction - Miscellaneous: 2.11% 16,004 Insituform Technologies, Inc. - Class A* 282,951 12,804 Universal Forest Products, Inc. 268,116 --------------- 551,067 --------------- Cable TV: 1.98% 72,846 Charter Communications, Inc. - Class A* 289,199 17,174 Insight Communications Company, Inc.* 226,353 --------------- 515,552 --------------- Commercial Services: 5.32% 39,400 Concord EFS, Inc. * 579,968 16,899 Convergys Corp.* 270,384 14,604 NCO Group, Inc.* 261,558 19,300 Quintiles Transnational Corp. * 273,867 --------------- 1,385,777 --------------- Computer Services: 0.45% 4,140 The Reynolds & Reynolds Co. - Class A 118,238 --------------- Consulting Services: 0.74% 15,200 Right Management Consultants* 192,280 --------------- Consumer Products/Miscellaneous: 0.78% 4,100 The Scotts Co. - Class A* 202,950 --------------- Data Processing/Management: 1.50% 34,012 eFunds Corp.* 392,158 --------------- Decision Support Software: 1.17% 19,700 NetIQ Corp. 304,562 --------------- Diversified Operations: 8.94% 52,075 Cendant Corp.* 954,014 11,868 FirstService Corp.*# 183,930 62,731 Tyco International Ltd. # 1,190,634 --------------- 2,328,578 --------------- See notes to financial statements. SCHEDULE OF INVESTMENTS (Continued) at June 30, 2003 - ------------------------------------------------------------------------------- Shares COMMON STOCKS: 86.84% (Continued) Market Value - ------------------------------------------------------------------------------- Electric - Integrated: 1.15% 18,468 Westar Energy, Inc. $ 299,736 --------------- Enterprise Software - Services: 1.98% 40,000 3Com Corp. * 187,200 106,906 Novell, Inc.* 329,270 --------------- 516,470 --------------- Food: 3.63% 8,200 Fresh Del Monte Produce, Inc. # 210,658 16,666 Safeway, Inc.* 340,986 23,648 The Kroger Co.* 394,449 --------------- 946,093 --------------- Home Furnishings: 0.78% 9,100 La-Z-Boy, Inc. 203,658 --------------- Identification Systems/Development: 0.26% 6,095 Paxar Corp.* 67,045 --------------- Insurance: 5.21% 229 Berkshire Hathaway Inc. - Class B* 556,470 11,700 Horace Mann Educators Corp. 188,721 7,125 Protective Life 190,594 Corp. 11,349 Torchmark Corp. 422,750 --------------- 1,358,535 --------------- Media: 4.29% 69,400 AOL Time Warner, Inc.* 1,116,646 --------------- Medical - Drugs: 5.04% 5,500 AdvancePCS * 210,265 30,043 Applera Corp. - Celera Genomics Group* 310,044 8,516 Merck & Co., Inc. 515,644 17,682 Perrigo Co. 276,547 --------------- 1,312,500 --------------- Medical - Information Systems: 0.95% 13,739 IMS Health, Inc. 247,165 --------------- Medical - Instruments: 5.08% 38,101 Apogent Technologies, Inc.* 762,020 6,918 Cantel Medical Corp.* 92,840 13,120 CONMED Corp.* 239,571 See notes to financial statements. SCHEDULE OF INVESTMENTS (Continued) at June 30, 2003 - ------------------------------------------------------------------------------- Shares COMMON STOCKS: 86.84% (Continued) Market Value - ------------------------------------------------------------------------------- Medical - Instruments: 5.08% (Continued) 8,842 Vital Signs, Inc. $ 229,538 --------------- 1,323,969 --------------- Medical - Labs and Testing Services: 4.78% 41,300 Laboratory Corporation of America Holdings * 1,245,195 --------------- Oil - Exploration & Production: 6.27% 6,043 Apache Corp. 393,158 11,292 Devon Energy Corp. 602,993 8,247 Newfield Exploration Co.* 309,675 7,814 Stone Energy Corp.* 327,563 --------------- 1,633,389 --------------- Pharmacy Services: 0.90% 6,900 Omnicare, Inc. 233,151 --------------- Physician Practice Management: 1.44% 46,735 Orthodontic Centers of America, Inc.* 374,347 --------------- Real Estate Investment Trusts: 4.10% 5,102 AMB Property Corp. 143,723 4,900 Archstone-Smith Trust 117,600 1,759 Avalonbay Communities, Inc. 75,004 3,800 Boston Properties, Inc. 166,440 5,400 Federal Realty Investment Trust 172,800 11,400 Host Marriott Corp.* 104,310 4,000 Simon Property Group, Inc. 156,120 3,000 Vornado Realty Trust 130,800 --------------- 1,066,797 --------------- Retail: 1.02% 6,623 Zale Corp.* 264,920 --------------- Steel Pipe & Tube: 0.99% 21,400 The Shaw Group, Inc.* 257,870 --------------- Telecommunications: 1.66% 14,271 Comverse Technology, Inc.* 214,493 13,858 Intrado, Inc.* 218,818 --------------- 433,311 --------------- Toys: 0.69% 9,547 Mattel, Inc. 180,629 --------------- See notes to financial statements. SCHEDULE OF INVESTMENTS (Continued) at June 30, 2003 - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 86.84% (Continued) Market Value - -------------------------------------------------------------------------------- Waste Disposal: 5.27% 30,334 Republic Services, Inc.* $ 687,672 28,500 Waste Management, Inc. 686,565 --------------- 1,374,237 --------------- TOTAL COMMON STOCKS (cost $21,213,385) 22,624,077 --------------- PREFERRED STOCKS: 0.01% 9,000 Acceptance Insurance Companies, Inc.* (cost $225,000) 1,890 --------------- SHORT-TERM INVESTMENT: 13.97% 3,638,241 Federated Cash Trust Series II (cost $3,638,241) 3,638,241 --------------- TOTAL INVESTMENTS IN SECURITIES: 100.82% (cost $25,076,626) 26,264,208 Liabilities in Excess of Other Assets: (0.82%) (213,253) --------------- NET ASSETS: 100.00% $ 26,050,955 ================ * Non-income producing security. # U.S. security of foreign issuer. See notes to financial statements. - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES at June 30, 2003 - -------------------------------------------------------------------------------- ASSETS Investments, at market value (cost $25,076,626) $ 26,264,208 Receivables: Fund shares issued 4,900 Dividends receivable 15,049 Prepaid expenses 6,509 --------------- Total Assets 26,290,666 --------------- LIABILITIES Payables: Securities purchased 197,527 Fund shares redeemed 3,031 Due to advisor 1,485 Due to custodian 5,941 Due to administrator 3,221 Due to fund accounting 2,403 Due to transfer agent 1,938 Accrued expenses 24,165 --------------- Total Liabilities 239,711 --------------- NET ASSETS $ 26,050,955 ================ Net asset value, offering and redemption price per share [$26,050,955 / 2,969,562 shares outstanding; unlimited number of shares (par value $0.01) authorized] $ 8.77 ================ COMPONENTS OF NET ASSETS Paid-in capital $ 27,665,542 Accumulated net realized loss on investments (2,802,169) Net unrealized appreciation on investments 1,187,582 --------------- Total Net Assets $ 26,050,955 ================ See notes to financial statements. - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS For the Year Ended June 30, 2003 - -------------------------------------------------------------------------------- INVESTMENT INCOME Dividend income $ 214,539 --------------- EXPENSES Advisory fees (Note 3) 231,373 Administration fees (Note 3) 37,275 Fund accounting fees 27,105 Transfer agent fees 26,040 Professional fees 20,193 Custody fees 16,565 Shareholder reporting 8,840 Registration fees 6,570 Trustee fees 6,570 Miscellaneous 3,285 Insurance 1,460 --------------- Total expenses 385,276 Less: advisory fee waiver (Note 3) (80,837) --------------- Net expenses 304,439 --------------- NET INVESTMENT LOSS (89,900) --------------- REALIZED AND UNREALIZED GAIN/LOSS ON INVESTMENTS Net realized loss on investments (1,407,396) Net change in unrealized appreciation on investments 2,900,083 --------------- Net realized and unrealized gain on investments 1,492,687 --------------- Net increase in net assets resulting from operations $ 1,402,787 ================ See notes to financial statements.
- ------------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------------- Year Ended Period Ended June 30, 2003 June 30, 2002* ------------- -------------- OPERATIONS Net investment (loss) / income $ (89,900) $ 35,894 Net realized loss on investments (1,407,396) (1,394,470) Change in net unrealized appreciation/(depreciation) on investments 2,900,083 (1,712,501) ----------- ----------- Net increase/(decrease) in net assets resulting from operations 1,402,787 (3,071,077) ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income -- (44,980) From net realized gains -- (22,042) ----------- ----------- Total decrease in net assets resulting from distributions -- (67,022) ----------- ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net (decrease)/increase in net assets derived from net change in outstanding shares (a) (1,603,059) 29,389,326 ----------- ----------- Total (decrease)/increase in net assets (200,272) 26,251,227 NET ASSETS Beginning of period 26,251,227 -- ----------- ----------- End of period $26,050,955 $26,251,227 =========== ===========
(a) A summary of shares transactions is as follows:
Year Ended Period Ended June 30, 2003 June 30, 2002* ------------------- ------------------------ Shares Value Shares Value ------ ----- ------ ----- Shares sold 523,579 $ 3,990,322 3,256,949 $29,651,582 Shares issued in reinvestment of distributions -- -- 6,685 66,980 Shares redeemed (782,737) (5,593,381) (34,915) (329,236) --------- ----------- -------- --------- Net (decrease)/increase (259,158) $(1,603,059) 3,228,719 $29,389,326 ========= =========== ========= ==========
* Commenced operations on August 6, 2001. See notes to financial statements. - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- For a fund share outstanding throughout the period
Year Ended Period Ended June 30, 2003 June 30, 2002* ------------- -------------- Net asset value, beginning of period $ 8.13 $10.00 ------ ------ Income from investment operations: Net investment (loss)/income (0.03) 0.02 Net realized and unrealized gain/(loss) on investments 0.67 (1.85) ------ ------ Total from investment operations 0.64 (1.83) ------ ------ Less distributions to shareholders: From net investment income -- (0.03) From net realized gains -- (0.01) ------ ------ Total decrease from distributions -- (0.04) ------ ------ Net asset value, end of period $ 8.77 $ 8.13 ====== ====== Total return 7.87% (18.40%)(1) Supplemental data and ratios: Net assets, end of period (in millions) $26.1 $26.3 Ratio of net expenses to average net assets: Before expense reimbursement 1.58% 1.85%(2) After expense reimbursement 1.25% 1.25%(2) Ratio of net investment (loss)/income to average net assets: Before expense reimbursement (0.70%) (0.41%)(2) After expense reimbursement (0.37%) 0.19%(2) Portfolio turnover rate 58% 46%(1)
* Commenced operations on August 6, 2001. 1 Not annualized. 2 Annualized. See notes to financial statements. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS June 30, 2003 - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The McCarthy 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 (the "1940 Act") as a diversified, open-end management investment company. The Fund commenced operations on August 6, 2001. The investment objective of the Fund is to seek long-term growth of capital. The Fund pursues this objective by investing primarily in equity securities. 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. Securities Valuation. Securities traded on a national exchange or Nasdaq are valued at the last reported sale price at the close of regular trading on the last business day of the period. 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. Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Board of Trustees. Short-term investments are stated at cost which, when combined with accrued interest, approximates market value. U.S. Government securities with less than 60 days remaining to maturity when acquired by the Fund are valued on an amortized cost basis. U.S. Government securities with more than 60 days remaining to maturity are valued at their current market value (using the mean between the bid and asked price) until the 60th day prior to maturity, and are then valued at amortized cost based upon the value on such date unless the Board of Trustees determines during such 60 day period that amortized cost does not represent fair 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. Securities Transactions, Dividend Income and Distributions. Securities transactions are accounted for on the trade date. Realized gains and losses on securities sold are calculated 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 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2003 - -------------------------------------------------------------------------------- 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. Share Valuation. The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund's shares will not be priced on the days on which the NYSE is closed for trading. E. 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 and disclosure of contingent 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. F. Reclassification of Capital Accounts. The Fund accounts and reports for distributions to shareholders in accordance with the American Institute of Certified Public Accountant's Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital and Return of Capital Distributions by Investment Companies. For the year ended June 30, 2003, the Fund increased accumulated net investment loss by $89,900, and decreased paid in capital and accumulated net realized loss by $111,593 and $21,693, respectively, due to certain permanent book and tax differences. Net assets were not affected by the change. NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS McCarthy Group Asset Management, Inc. (the "Advisor") provides the Fund with investment management services under an Investment Advisory Agreement (the "Agreement"). Under the Agreement the Advisor furnishes all investment advice, office space, facilities, and most of the personnel needed by the Fund. As compensation for its services, the Advisor receives a monthly fee at the annual rate of 0.95% of the Fund's average daily net assets. For the year ended June 30, 2003, the Fund incurred $231,373 in advisory fees. The Fund is responsible for its own operating expenses. The Advisor has contractually agreed to limit the Fund's total operating expenses by reducing all or a portion of its fees and reimbursing the Fund's total operating expenses, for a one year period, so that its ratio of expenses to average net assets will not exceed 1.25%. Any such reductions 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 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2003 - -------------------------------------------------------------------------------- Advisor in subsequent fiscal years, provided the aggregate amount of the Fund's current operation for such fiscal year does not exceed the applicable limitation of the Fund's expenses. Under the expense limitation agreement, the Advisor may recoup reimbursements made in the Fund's first fiscal year in any of the five succeeding fiscal years, reimbursements made in the Fund's second fiscal year in any of the four succeeding fiscal years, and reimbursements in any subsequent fiscal year over the following three fiscal years. For the year ended June 30, 2003, the Advisor absorbed expenses of $80,837. The Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Cumulative expenses subject to recapture amount to $192,886 at June 30, 2003. Any such reimbursement is also contingent upon Board of Trustees review and approval prior to the time the reimbursement is initiated. Cumulative expenses subject to recapture expire as follows: Year Amount ---- ------ 2007 $192,886 U.S. Bancorp Fund Services, LLC, (the "Administrator") acts as administrator for the Fund. The Administrator prepares various federal and state regulatory filings, reports and returns; prepares reports and materials to be supplied to the trustees; monitors the activities of the Fund's custodian, transfer agent and accountant; coordinates the preparation and payment of Fund expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rates: Under $24 million $36,000 $24 to $100 million 0.15% of average daily net assets $100 to $150 million 0.10% of average daily net assets Over $150 million 0.05% of average daily net assets For the year ended June 30, 2003, the Fund incurred $37,275 in administration fees. U.S. Bancorp Fund Services, LLC provides fund accounting services for the Fund. 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. U.S. Bank, N.A., an affiliate of USBFS, serves as custodian to the Fund. Certain officers of the Trust are also officers of the Administrator. NOTE 4 - PURCHASES AND SALES OF SECURITIES For the year ended, June 30, 2003, the cost of purchases and proceeds from sales of securities, excluding short-term securities, were $13,360,698 and $16,893,658, respectively. NOTE 5 - INCOME TAXES Net investment income/(loss) and net realized gains/(losses) differ for financial statement and tax purposes due to differing treatments of wash sale losses deferred and losses realized subsequent to October 31 on the sale of securities. NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 2003 As of June 30, 2003, the components of accumulated earnings/(losses) on a tax basis were as follows: Cost of investments (a) . . . . . . . . . . . . . . . . . .$ 25,366,588 ---------------- Gross tax unrealized appreciation . . . . . . . . . . . . . $ 2,705,631 ---------------- Gross tax unrealized depreciation . . . . . . . . . . . (1,808,011) ---------------- Net tax unrealized appreciation . . . . . . . . . . . $ 897,620 ================ Cumulative tax cost adjustments . . . . . . . . . . . . . . .$ 289,962 ---------------- Undistributed ordinary income . . . . . . . . . . . . . . . . $ -- Undistributed long-term capital gain . . . . . . . . -- ---------------- Total distributable earnings . . . . . . . . . . . . . . . . . .$ -- ================ Other accumulated gains/losses . . . . . . . . . . . $ (2,802,169) ---------------- Total accumulated earnings/(losses) . . . . . . . . . . . . . $ (1,614,587) ================ (a) Represents cost for federal income tax purposes and differs from the cost for financial purposes due to wash sales and investments in Real Estate Investment Trusts. At June 30, 2003, the Fund had deferred capital losses occurring subsequent to October 31, 2002 of ($2,017,664). For tax purposes, such losses will be deferred until the year ending June 30, 2004. The tax composition of dividends during the year ended June 30, 2003, was as follows: 2003 2002 --- ---- Ordinary income . . . . . . . . . . $ -- $44,980 Long term capital gains . . . . . . . -- 22,042 As of June 30, 2003, the Fund did not have any distributable earnings. - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS - -------------------------------------------------------------------------------- To the Shareholders and Board of Trustees Advisors Series Trust Glendora, California We have audited the accompanying statement of assets and liabilities of McCarthy Fund, a series of shares of Advisor Series Trust, including the portfolio of investments, as of June 30, 2003, the related statement of operations for the year then ended, and the changes in net assets and the financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2003, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of McCarthy Fund as of June 30, 2003, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America. TAIT, WELLER & BAKER Philadelphia, Pennsylvania July 18, 2003 - -------------------------------------------------------------------------------- INFORMATION ABOUT TRUSTEES AND OFFICERS (UNAUDITED) - -------------------------------------------------------------------------------- This chart provides information about the Trustees and Officers who oversee your Fund. Officers elected by the Trustees manage the day-to-day operations of the Fund and execute policies formulated by the Trustees.
INDEPENDENT TRUSTEES - ----------------------------------------------------------------------------------------------- Name, Age Number of Address Trustee Funds in Complex Principal Occupation(s) during past five years of Fund Overseen and other Directorships Since By Trustee - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- Walter E. Auch, Born 1921 1997 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Management Consultant. Other Directorships: Nicholas-Applegate Funds, Citigroup, Legend Properties, Pimco Advisors, LLP and Senele Group - ----------------------------------------------------------------------------------------------- James Clayburn LaForce, Born 1927 2002 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Dean Emeritus, John E. Anderson Graduate School of Management, University of California, Los Angeles. Other Directorships: The Payden & Rygel Investment Group, The Metzler/Payden Investment Group, PIC Investment Trust, PIC Small Cap Portfolio, PIC Balanced Portfolio, PIC Growth Portfolio, PIC Mid Cap Portfolio, Black Rock Funds, Jacobs Engineering, Arena Pharmaceuticals, Cancervax - ----------------------------------------------------------------------------------------------- Donald E. O'Connor, Born 1936 1997 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Financial Consultant, formerly Executive Vice President and Chief Operating Officer of ICI Mutual Insurance Company (until January, 1997). Other Directorships: The Forward Funds - ----------------------------------------------------------------------------------------------- George J. Rebhan, Born 1934 2002 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Retired; formerly President, Hotchkis and Wiley Funds (mutual funds) from 1985 to 1993. Other Directorships: E*Trade Funds - ----------------------------------------------------------------------------------------------- George T. Wofford III, Born 1939 1997 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Senior Vice President, Information Services, Federal Home Loan Bank of San Francisco. Other Directorships: None
- -------------------------------------------------------------------------------- INFORMATION ABOUT TRUSTEES AND OFFICERS (UNAUDITED) (Continued) - --------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS - ----------------------------------------------------------------------------------------------- Name, Age Address Number of Position Held with Fund Trustee Funds in Complex Principal Occupation(s) during past five years of Fund Overseen and other Directorships Since By Trustee - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- Eric M. Banhazl, Born 1957 1997 16 - ----------------------------------------------------------------------------------------------- 2020 E. Financial Way Glendora, CA 91741 Trustee and President Senior Vice President, U.S. Bancorp Fund Services, LLC, the Fund's administrator (since July 2001); Treasurer, Investec Funds; formerly, Executive Vice President, Investment Company Administration, LLC ("ICA") (The Fund's former administrator). Other Directorships: None - ----------------------------------------------------------------------------------------------- Chad E. Fickett, Born 1973 2002 16 - ----------------------------------------------------------------------------------------------- 615 E. Michigan Street Milwaukee, WI 53202 Secretary Compliance Administrator, U.S. Bancorp Fund Services, LLC (since July 2000). Directorships: None - ----------------------------------------------------------------------------------------------- Doug G. Hess, Born 1967 2003 16 - ----------------------------------------------------------------------------------------------- 615 E. Michigan Street Milwaukee, WI 53202 Treasurer Vice President Compliance and Administration, U.S. Bancorp Fund Services, LLC (since May 1997). Directorships: None
(This Page Intentionally Left Blank.) Advisor McCarthy Group Asset Management, Inc. 1125 South 103rd Street, Suite 450 Omaha, Nebraska 68124-6019 Distributor Quasar Distributors, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 Custodian U.S. Bank, N.A. 425 Walnut Street M/L 6118 Cincinnati, Ohio 45202 Transfer Agent Gemini Fund Services, LLC 4020 South 147th Street, Suite 2 Omaha, Nebraska 68127 1-866-811-0228 Independent Accountants Tait, Weller & Baker 1818 Market Street, Suite 2400 Philadelphia, Pennsylvania 19103 Legal Counsel Paul, Hastings, Janofsky & Walker 55 Second Street, 24th Floor San Francisco, California, 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. 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. Item 2. Code of Ethics. Not applicable to annual reports filed for periods ending before July 15, 2003. Item 3. Audit Committee Financial Expert. Not applicable to annual reports filed for periods ending before July 15, 2003. Item 4. Principal Accountant Fees and Services. Not required for annual reports filed for periods ending before December 15, 2003. Item 5. Audit Committee of Listed Registrants. Not applicable to open-end investment companies. Item 6. [Reserved] Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable to open-end investment companies. 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 August 25, 2003 --------------- 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 August 25, 2003 --------------- EX-99.CERT 3 certs.txt MCCARTHYCERTIFICATIONS 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: /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: August 25, 2003 /s/ Douglas G. Hess --------------- ------------------- Douglas G. Hess Treasurer EX-99.906CERT 4 cert906.txt SARBANES' OXLEY CERTS 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 or year] ended [date] 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: August 25, 2003 --------------- 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. -----END PRIVACY-ENHANCED MESSAGE-----