davidson_ncsrs.htm

Six Months Ended

December 31, 2015

Year Ended

June 30, 2015

Ordinary income

$1,151,737

Long-term capital gains

As filed with the Securities and Exchange Commission on March 8, 2016

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)

Douglas G. Hess, President

Advisors Series Trust

c/o U.S. Bancorp Fund Services, LLC

777 East Wisconsin Avenue, 5th Floor

Milwaukee, WI 53202

(Name and address of agent for service)

(414) 765-6609

(Registrant's telephone number, including area code)

Date of fiscal year end: June 30, 2016

Date of reporting period: December 31, 2015

Item 1. Reports to Stockholders.

Davidson Multi-Cap Equity Fund

Semi-Annual Report

December 31, 2015

(Unaudited)

Dear Shareholder:

2015 was capped by the most significant financial market event of the year, as the U.S. Federal Reserve Board (the “Federal Reserve”) ended a long period of uncertainty by announcing a 25 basis point increase in its target range for the Federal Funds Rate in December. This move is seen as a vote of confidence in the U.S. economy, and it comes at a time when other central banks around the world are becoming increasingly accommodative. With new momentum toward higher rates domestically, the conversation has shifted from when the Fed will raise rates to the pace at which rates will continue to rise.

In conjunction with this perceived strength in the U.S. economy signaled by the Federal Reserve, the U.S. dollar has strengthened considerably over the past year relative to other major world currencies. The relative strength of domestic currency may prove a headwind to U.S. exports and by extension some U.S. corporate earnings; however, it also gives a boost to the American consumer as imports become relatively cheaper and global commodities such as oil face downward price pressure. Should international monetary policies continue to diverge, we would expect further pressure on global economic growth.

In this environment of increased volatility, the investment professionals at Davidson Funds continue to seek attractive investment opportunities while maintaining our disciplined approach to portfolio management. We are pleased to report that in 2015, the Davidson Multi-Cap Equity Fund (the “Fund”) reached a significant milestone by surpassing $100 million in net assets under management. We greatly appreciate our shareholders, who have trusted us to assist in navigating these often unpredictable financial conditions.

Performance

The Russell 3000® Index, the benchmark for the Davidson Multi-Cap Equity Fund, finished the fiscal period ended December 31, 2015 down -1.43%. The Class A shares of the Fund generated a total return of -8.81% on a fully-loaded basis and -4.00% on a no-load* basis during this time period. The Class C shares generated a total return of -5.28% on a fully-loaded basis and a total return of -4.36% on a no-load* basis, and the Class I shares of the Fund returned -3.90% over the same time period.

The Materials sector was the strategy’s primary contributor to performance; within this sector, E.I. du Pont de Nemours and Company was a stand-out performer. The company’s chief executive officer departed, which was welcome news to shareholder activists, who are pushing for more aggressive actions to unlock value, which was realized when the company announced a merger with Dow Chemical Company. Within the Health Care sector, Becton Dickinson & Co. was also additive to performance; the company reported better than expected quarterly results driven by synergies achieved with its acquisition of CareFusion Corporation. Finally, Information Technology holding, Alphabet Inc., performed well after reporting robust quarterly results, driven by accelerating organic growth from YouTube, mobile advertising and better cost controls. The Consumer Staples sector was the Fund’s main detractor from performance; in particular, shares of United Natural Foods Inc. were weak. Shares of this recent addition to the portfolio declined in anticipation of challenging first fiscal quarter results, given Albertson Companies, Inc.’s contract cancellation and challenging results from its largest customer, Whole Foods Market Inc. Additionally, the Financials sector experienced categorical weakness due to habitually low interest rates. Finally, Industrials sector holdings Eaton Corp. PLC (“Eaton”) and Flowserve Corp. (“Flowserve”) detracted from performance. Shares of Eaton declined due to the continued negative outlook for global gross domestic product growth and lower than expected international sales. Flowserve’s recent quarterly results have been hampered by low commodities pricing and weak bookings primarily from the Oil & Gas industry.

During the fiscal period ended December 31, 2015, we made several changes to the Fund. In July, We exited our positions in Energizer Holdings Inc. and Paccar Inc., and initiated new positions in United Natural Foods and Flowserve Corp. United Natural Foods is a leading distributor of natural, organic and specialty foods and non-food products in the United States and Canada. They serve more than 40,000 customer locations from 32 distribution centers. Despite its recent competitive challenges, we are attracted to United Natural Foods’ growth potential, which is driven not only by the growth in demand for natural, organic and specialty foods but also by the company’s expansion into new product and channel categories. Flowserve is one of the largest pure play flow control companies in the world, with market-leading positions in pumps, valves and seals for the oil & gas, chemical processing, power generation and water treatment industries. Though recent commodities market weakness has weighed on the stock, we remain focused on the company’s customer-centric business model. Flowserve has developed a strong global network of Quick Response Centers that offer a broad array of aftermarket services for over 10,000 customers around the world. These centers allow for quick and efficient servicing of systems-critical components and have become a key competitive advantage. In August, we added Haemonetics Corp., a global medical device company specializing in blood management solutions. The company is launching several new products which should help drive sales growth, as well as increasing demand for the company’s plasma collection systems due to the growth in plasma-derived therapies. In addition, the company is in the process of optimizing its manufacturing and distribution footprint worldwide with the goal of improving the company’s operating efficiency. Finally, in October 2015, we added Nielsen Holdings PLC (“Nielsen”) to the Fund. Nielsen provides marketing information, measurement and analytical services for media, advertising, consumer product, retail and technology customers. We believe the U.S. media and television industry is undergoing significant transition, with audience viewing habits increasingly shifting toward digital platforms. Nielsen is rapidly adapting its products to include greater use of digital measurement to assist customers to accurately measure the effectiveness of advertising spend across both digital and non-digital platforms. We believe Nielsen’s role as an independent third party measurement provider and its global scale give it significant competitive advantages.

Outlook

Entering 2016, investors remain highly uncertain about the outlook for global growth, with most expecting sluggish conditions to remain in place. Risks to the downside appear to outweigh the upside as diverging monetary policies, geopolitical instability, a stronger U.S. dollar and weaker commodity prices are commonly cited as continued sources of volatility. While we recognize there are downside risks in the present macroeconomic backdrop, we also continue to see pockets of growth for many companies. These pockets of growth remain mixed across geographies, industries and end-markets, which is encouraging enough to lead us to believe the global economy may be able to muddle through the current sluggish environment. We see the potential for stabilizing commodity and currency prices to act as catalysts for improving business confidence in 2016. Oil is beginning to slowly find its way toward supply and demand balance, while currencies have remained relatively stable thus far through the first rate increase by the Federal Reserve. We remain focused on the fundamentals of our portfolio companies, as well as identifying others that have an appropriate balance of achievable growth expectations and reasonable valuations.

We thank you for your continued support and confidence in Davidson Funds, and as always, welcome any questions or comments you may have.

Sincerely,

Andrew I. Davidson

President

Davidson Investment Advisors, Inc.

Must be preceded or accompanied by a prospectus.

Past performance does not guarantee future results. Investment performance reflects fee waivers and in the absence of these waivers returns would be lower.

Mutual fund investing involves risk. Principal loss is possible. Small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for emerging markets investments. Investments in exchange-traded funds (“ETFs”) are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value (“NAV”), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund’s ability to sell its shares. The Fund will bear their share of the fees and expenses of the ETFS and underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying ETFs and funds.

The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. It is not possible to invest directly in an index.

The Federal Funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight.

A basis point is a common unit of measure for interest rates and other percentages in finance; one basis point is equal to 1/100th of 1%, or 0.01%.

Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Please refer to the Schedule of Investments for a complete listing of Fund holdings. Current and future portfolio holdings are subject to risk.

The opinions expressed in this letter are those of the Fund manager, are subject to change, are not guaranteed, and should not be considered recommendations to buy or sell any security.

*The no-load basis refers to the performance with front-end and back-end sales loads waived. The fully-loaded returns reflect a 5% sales load for the A shares and a 1% deferred sales load for the C shares.

Davidson Investment Advisors, Inc. is the adviser to the Davidson Funds, which are distributed by Quasar Distributors, LLC.

Davidson Multi-Cap Equity Fund

EXPENSE EXAMPLE at December 31, 2015 (Unaudited)

Shareholders in mutual funds generally incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested in Class A, Class C, and Class I at the beginning of the period and held for the entire period (7/1/15 – 12/31/15).

Actual Expenses

The first line of the tables below provides information about actual account values and actual expenses, with actual net expenses being limited to 1.15%. 1.90%, and 0.90% per the operating expenses limitation agreement for the Class A, Class C, and Class I, respectively. The Example below includes, but is not limited to, management fees, fund accounting, custody and transfer agent fees. However, the Example below does not include portfolio trading commissions and related expenses. In addition, you will be assessed fees for outgoing wire transfers, returned checks, and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Fund’s transfer agent. You may use the information in the first line of the tables, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period’’ to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and will not help you determine the relative total costs of owning different funds, as they may charge transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Class A

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	7/1/15	12/31/15	7/1/15 – 12/31/15
Actual	$1,000.00	$960.00	$5.67
Hypothetical (5% return before expenses)	$1,000.00	$1,019.36	$5.84

*Expenses are equal to the Fund’s annualized expense ratio of 1.15% multiplied by the average account value over the period, multiplied by 184 (days in most recent fiscal half-year)/366 days to reflect the one-half year expense.

Davidson Multi-Cap Equity Fund

EXPENSE EXAMPLE at December 31, 2015 (Unaudited), Continued

Class C

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	7/1/15	12/31/15	7/1/15 – 12/31/15
Actual	$1,000.00	$956.40	$9.34
Hypothetical (5% return before expenses)	$1,000.00	$1,015.58	$9.63

*Expenses are equal to the Fund’s annualized expense ratio of 1.90%, multiplied by the average account value over the period, multiplied by 184 (days in most recent fiscal half-year)/366 days to reflect the one-half year expense.

Class I

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	7/1/15	12/31/15	7/1/15 – 12/31/15
Actual	$1,000.00	$961.00	$4.44
Hypothetical (5% return before expenses)	$1,000.00	$1,020.61	$4.57

*Expenses are equal to the Fund’s annualized expense ratio of 0.90%, multiplied by the average account value over the period, multiplied by 184 (days in most recent fiscal half-year)/366 days to reflect the one-half year expense.

Davidson Multi-Cap Equity Fund

SECTOR ALLOCATION OF PORTFOLIO ASSETS at December 31, 2015 (Unaudited)

Percentages represent market value as a percentage of total investments.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

Davidson Multi-Cap Equity Fund

SCHEDULE OF INVESTMENTS at December 31, 2015 (Unaudited)


Shares	COMMON STOCKS - 98.10%	Value

	Aerospace & Defense - 1.81%
19,970	United Technologies Corp.	$	1,918,518

	Air Freight & Logistics - 1.30%
9,215	Fedex Corp.		1,372,943

	Automobiles - 1.48%
111,190	Ford Motor Co.		1,566,667

	Beverages - 2.10%
22,285	PepsiCo, Inc.		2,226,717

	Biotechnology - 4.03%
12,190	Amgen, Inc.		1,978,803
22,575	Gilead Sciences, Inc.		2,284,364
			4,263,167
	Capital Markets - 3.10%
44,485	Morgan Stanley		1,415,068
28,120	State Street Corp.		1,866,043
			3,281,111
	Chemicals - 3.68%
34,295	E.I. du pont de Nemours & Co.		2,284,047
15,680	Praxair, Inc.		1,605,632
			3,889,679
	Commercial Banks - 8.36%
44,360	First Republic Bank		2,930,422
46,370	JPMorgan Chase & Co.		3,061,811
52,475	Wells Fargo & Co.		2,852,541
			8,844,774
	Communications Equipment - 2.02%
78,650	Cisco Systems, Inc.		2,135,741

	Diversified Telecommunication Services - 2.01%
39,149	Level 3 Communications, Inc. (a)		2,128,140

	Electrical Equipment - 2.06%
41,865	Eaton Corp PLC (b)		2,178,655

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

SCHEDULE OF INVESTMENTS at December 31, 2015 (Unaudited), Continued


Shares	COMMON STOCKS - 98.10%, continued	Value

	Energy Equipment & Services - 1.21%
27,740	Baker Hughes, Inc.	$	1,280,201

	Food & Staples Retailing - 1.92%
51,520	United National Foods, Inc. (a)		2,027,827

	Food Products - 2.51%
46,135	General Mills, Inc.		2,660,144

	Health Care Equipment & Supplies - 4.14%
16,795	Becton, Dickinson & Co.		2,587,941
55,720	Haemonetics Corp. (a)		1,796,413
			4,384,354
	Health Care Providers & Services - 4.87%
30,607	Express Scripts Holding Co. (a)		2,675,358
20,050	Laboratory Corporation of America Holdings (a)		2,478,982
			5,154,340
	Hotels, Restaurants & Leisure - 1.41%
9,325	Buffalo Wild Wings, Inc. (a)		1,488,736

	Household Durables - 1.04%
34,255	D.R. Horton, Inc.		1,097,188

	Household Products - 1.71%
21,290	Church & Dwight Co., Inc.		1,807,095

	Industrial Conglomerates - 4.47%
10,755	3M Co.		1,620,133
99,810	General Electric Co.		3,109,082
			4,729,215
	Insurance - 1.85%
43,475	Principal Financial Group, Inc.		1,955,505

	Internet Software & Services - 5.16%
2,524	Alphabet, Inc. - Class A (a)		1,963,697
4,613	Alphabet, Inc. - Class C (a)		3,500,714
			5,464,411

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

SCHEDULE OF INVESTMENTS at December 31, 2015 (Unaudited), Continued


Shares	COMMON STOCKS - 98.10%, continued	Value

	Life Sciences Tools & Services - 2.23%
17,550	Waters Corp. (a)	$	2,361,879

	Machinery - 1.79%
44,885	Flowserve Corp.		1,888,761

	Media - 6.85%
107,340	Interpublic Group of Cos., Inc.		2,498,875
14,795	Time Warner Cable, Inc.		2,745,804
73,650	Twenty-First Century Fox, Inc. - Class A		2,000,334
			7,245,013
	Multi-Utilities - 2.24%
25,180	Sempra Energy		2,367,172

	Oil, Gas & Consumable Fuels - 4.76%
16,929	Chevron Corp.		1,522,933
29,535	Devon Energy Corp.		945,120
22,375	Exxon Mobil Corp.		1,744,131
65,870	Marathon Oil Corp.		829,303
			5,041,487
	Professional Services - 1.98%
45,065	Nielsen Holdings PLC (b)		2,100,029

	Real Estate Investment Trusts (REITs) - 3.72%
121,355	Redwood Trust, Inc.		1,601,886
113,385	Starwood Property Trust, Inc.		2,331,196
			3,933,082
	Semiconductors & Semiconductor Equipment - 2.52%
54,830	Silicon Laboratories, Inc. (a)		2,661,448

	Software - 5.04%
38,285	Fleetmatics Group PLC (a)(b)		1,944,495
35,050	Fortinet, Inc. (a)		1,092,508
23,765	Intuit		2,293,323
			5,330,326
	Specialty Retail - 1.90%
56,870	Dicks Sporting Goods, Inc.		2,010,354

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

SCHEDULE OF INVESTMENTS at December 31, 2015 (Unaudited), Continued


Shares	COMMON STOCKS - 98.10%, continued	Value
	Technology Hardware, Storage & Peripherals - 2.83%
28,496	Apple, Inc.	$	2,999,489

	TOTAL COMMON STOCKS (Cost $81,953,452)		103,794,168

Shares	SHORT-TERM INVESTMENTS - 1.92%	Value
	Funds, Trusts, & Other Financial Vehicles - 1.92%
2,028,435	Fidelity Institutional Government Portfolio - Class I, 0.12% (c)		2,028,435
	TOTAL SHORT-TERM INVESTMENTS (Cost $2,028,435)		2,028,435

	Total Investments in Securities (Cost $83,981,887) - 100.02%		105,822,603
	Liabilities in Excess of Other Assets - (0.02)%		(19,935	)
	NET ASSETS - 100.00%	$	105,802,668

(a)	Non-income producing security.
(b)	U.S. traded security of a foreign issuer.
(c)	Rate shown is the 7-day annualized yield as of December 31, 2015.

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

STATEMENT OF ASSETS AND LIABILITIES at December 31, 2015 (Unaudited)

ASSETS
Investments in securities, at value (identified cost $83,981,887)	$	105,822,603
Receivables
Dividends and interest		141,810
Fund shares sold		60,319
Due from other		2
Prepaid expenses		29,852
Total assets		106,054,586

LIABILITIES
Payables
Fund shares redeemed		12,000
12b-1 fees		92,788
Advisory fees		43,541
Administration fees		34,963
Transfer agent fees and expenses		24,544
Fund accounting fees		18,519
Audit fees		11,171
Shareholder reporting		6,079
Custody fees		3,052
Legal fees		2,890
Chief Compliance Officer fee		2,279
Miscellaneous		92
Total liabilities		251,918

NET ASSETS	$	105,802,668

COMPONENTS OF NET ASSETS
Paid-in capital	$	83,787,638
Accumulated net investment loss		(43,516	)
Accumulated net realized gain on investments		217,830
Net unrealized appreciation on investments		21,840,716
Net assets	$	105,802,668

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

STATEMENT OF ASSETS AND LIABILITIES at December 31, 2015 (Unaudited), Continued


CALCULATION OF NET ASSET VALUE PER SHARE
Class A
Net assets applicable to shares outstanding	$	52,847,466
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized]		2,496,573
Net asset value and redemption price per share	$	21.17
Maximum offering price per share (Net asset value per share divided by 95.00%)	$	22.28

Class C
Net assets applicable to shares outstanding	$	23,487,384
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized]		1,138,598
Net asset value and offering price per share (Note 1)	$	20.63

Class I
Net assets applicable to shares outstanding	$	29,467,818
Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized]		1,393,171
Net asset value, redemption and offering price per share	$	21.15

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

STATEMENT OF OPERATIONS For period ended December 31, 2015 (Unaudited)


INVESTMENT INCOME
Dividends	$	918,551
Interest		249
Total investment income		918,800

Expenses
Advisory fees (Note 4)		341,159
Distribution fees - Class A (Note 5)		66,155
Distribution fees - Class C (Note 5)		116,903
Administration fees (Note 4)		70,838
Transfer agent fees and expenses (Note 4)		48,116
Fund accounting fees (Note 4)		37,575
Registration fees		22,412
Audit fees		11,171
Custody fees (Note 4)		8,424
Reports to shareholders		5,665
Legal fees		5,469
Trustee fees		4,819
Chief Compliance Officer fee (Note 4)		4,529
Other expenses		3,653
Insurance expense		1,715
Total expenses		748,603
Less: advisory fee waiver (Note 4)		(93,171	)
Net expenses		655,432
Net investment income		263,368

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain on investments		3,444,510
Net change in unrealized depreciation on investments		(7,974,173	)
Net realized and unrealized loss on investments		(4,529,663	)
Net Decrease in Net Assets Resulting from Operations	$	(4,266,295	)

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

STATEMENTS OF CHANGES IN NET ASSETS

	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30, 2015
INCREASE/(DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income	$	263,368		$	144,970
Net realized gain on investments		3,444,510			2,828,296
Net change in unrealized appreciation on investments		(7,974,173	)		2,852,680
Net increase/(decrease) in net assets resulting from operations		(4,266,295	)		5,825,946

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income
Class A		(173,310	)		(446,480	)
Class C		(3,022	)		(61,159	)
Class I		(130,552	)		(254,786	)
From net realized gain on investments
Class A		(1,951,693	)		(1,733,495	)
Class C		(884,105	)		(779,247	)
Class I		(1,103,936	)		(783,333	)
Total distributions to shareholders		(4,246,618	)		(4,058,500	)

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in outstanding shares (a)		12,570,991			13,470,691

Total increase in net assets		4,058,078			15,238,137

NET ASSETS
Beginning of period		101,744,590			86,506,453
End of period	$	105,802,668		$	101,744,590

Accumulated net investment loss at end of period	$	(43,516	)	$	—

(a) A summary of share transactions can be found on the following page:

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

STATEMENTS OF CHANGES IN NET ASSETS, Continued

	Class A
	Six Months Ended
	December 31, 2015							Year Ended
	(Unaudited)							June 30, 2015
	Shares			Paid-in Capital				Shares			Paid-in Capital
Shares sold		194,787			$	4,318,784			380,979			$	8,593,177
Shares issued on reinvestments of distributions		94,995				2,047,145			98,429				2,119,171
Shares redeemed		(119,736	)			(2,644,708	)		(297,540	)			(6,811,913	)
Net increase		170,046			$	3,721,221			181,868			$	3,900,435

	Class C
	Six Months Ended
	December 31, 2015							Year Ended
	(Unaudited)							June 30, 2015
	Shares			Paid-in Capital				Shares			Paid-in Capital
Shares sold		86,290			$	1,842,710			170,504			$	3,760,672
Shares issued on reinvestments of distributions		40,843				858,109			38,949				821,811
Shares redeemed		(29,727	)			(647,871	)		(64,737	)			(1,448,182	)
Net increase		97,406			$	2,052,948			144,716			$	3,134,301

	Class I
	Six Months Ended
	December 31, 2015							Year Ended
	(Unaudited)							June 30, 2015
	Shares			Paid-in Capital				Shares			Paid-in Capital
Shares sold		319,571			$	7,142,508			307,365			$	7,008,418
Shares issued on reinvestments of distributions		41,937				902,906			44,704				960,242
Shares redeemed*		(57,722	)			(1,248,592	)		(67,465	)			(1,532,705	)
Net increase		303,786			$	6,796,822			284,604			$	6,435,955

* Net of redemption fees of					$	—						$	70

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

FINANCIAL HIGHLIGHTS - Class A

For a share outstanding throughout each period

	Six Months Ended				Year Ended June 30,
	December 31, 2015
		(Unaudited)			2015			2014			2013			2012			2011

Net asset value, beginning of period		$	22.96		$	22.61		$	18.99		$	15.78		$	16.55		$	12.51

Income from investment operations:
Net investment income		0.07		^	0.06		^	0.22		^		0.17			0.09			0.06
Net realized and unrealized gain/(loss) on investments			(0.98	)		1.31			4.43			3.41			0.06			4.00
Total from investment operations			(0.91	)		1.37			4.65			3.58			0.15			4.06

Less distributions:
From net investment income			(0.07	)		(0.21	)		(0.14	)		(0.11	)		(0.08	)		(0.02	)
From net realized gain on investments			(0.81	)		(0.81	)		(0.89	)		(0.26	)		(0.84	)		(0.00	)#
Total distributions			(0.88	)		(1.02	)		(1.03	)		(0.37	)		(0.92	)		(0.02	)

Net asset value, end of period		$	21.17		$	22.96		$	22.61		$	18.99		$	15.78		$	16.55

Total return			-4.00	%‡		6.34	%		25.06	%		23.01	%		1.64	%		32.47	%

Ratios/supplemental data:
Net assets, end of year (thousands)		$	52,847		$	53,419		$	48,498		$	48,355		$	36,483		$	28,568
Ratio of expenses to average net assets:
Before fee waiver			1.33	%†		1.36	%		1.38	%		1.42	%		1.51	%		1.67	%
After fee waiver			1.15	%†		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Ratio of net investment income/(loss) to average net assets:
Before fee waiver			0.42	%†		0.05	%		0.80	%		0.73	%		0.24	%		(0.13	)%
After fee waiver			0.60	%†		0.26	%		1.03	%		1.00	%		0.60	%		0.39	%
Portfolio turnover rate			7.77	%‡		13.91	%		11.59	%		21.49	%		13.95	%		19.34	%

^ Per share numbers have been calculated using the average shares method.

# Amount is less than $0.01.

‡ Not annualized.

† Annualized.

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

FINANCIAL HIGHLIGHTS - Class C

For a share outstanding throughout each period

	Six Months Ended				Year Ended June 30,
	December 31, 2015
		(Unaudited)			2015			2014			2013			2012			2011

Net asset value, beginning of period		$	22.41		$	22.11		$	18.61		$	15.52		$	16.33		$	12.42


Income from investment operations:
Net investment income/(loss)		(0.02		)^	(0.11		)^	0.07		^		0.04			(0.02	)		(0.05	)
Net realized and unrealized gain/(loss) on investments			(0.95	)		1.28			4.33			3.35			0.06			3.96
Total from investment operations			(0.97	)		1.17			4.40			3.39			0.04			3.91

Less distributions:
From net investment income			(0.00	)#		(0.06	)		(0.01	)		(0.04	)		(0.01	)		—
From net realized gain on investments			(0.81	)		(0.81	)		(0.89	)		(0.26	)		(0.84	)		(0.00	)#
Total distributions			(0.81	)		(0.87	)		(0.90	)		(0.30	)		(0.85	)		(0.00	)#

Redemption fees retained			—			—		0.00		#^		—			—			—

Net asset value, end of period		$	20.63		$	22.41		$	22.11		$	18.61		$	15.52		$	16.33

Total return			-4.36	%‡		5.54	%		24.13	%		22.06	%		0.90	%		31.50	%

Ratios/supplemental data:
Net assets, end of year (thousands)		$	23,487		$	23,335		$	19,825		$	14,314		$	10,800		$	10,277
Ratio of expenses to average net assets:
Before fee waiver			2.08	%†		2.11	%		2.13	%		2.16	%		2.27	%		2.42	%
After fee waiver			1.90	%†		1.90	%		1.90	%		1.90	%		1.90	%		1.90	%
Ratio of net investment income/(loss) to average net assets:
Before fee waiver			(0.33	)%†		(0.69	)%		0.11	%		(0.01	)%		(0.53	)%		(0.88	)%
After fee waiver			(0.15	)%†		(0.48	)%		0.34	%		0.25	%		0.16	%		(0.36	)%
Portfolio turnover rate			7.77	%‡		13.91	%		11.59	%		21.49	%		13.95	%		19.34	%

^ Per share numbers have been calculated using the average shares method.

# Amount is less than $0.01.

‡ Not annualized.

† Annualized.

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

FINANCIAL HIGHLIGHTS - Class I

For a share outstanding throughout each period

	Six Months Ended								October 30, 2013*
	December 31, 2015				Year Ended				through
	(Unaudited)				June 30, 2015				June 30, 2014

Net asset value, beginning of period		$	22.94			$	22.59			$	21.21

Income from investment operations:
Net investment income ^			0.10				0.12				0.23
Net realized and unrealized gain/(loss) on investments			(0.98	)			1.30				2.24
Total from investment operations			(0.88	)			1.42				2.47

Less distributions:
From net investment income			(0.10	)			(0.26	)			(0.20	)
From net realized gain on investments			(0.81	)			(0.81	)			(0.89	)
Total distributions			(0.91	)			(1.07	)			(1.09	)

Redemption fees retained			—			0.0		0#^			—

Net asset value, end of period		$	21.15			$	22.94			$	22.59

Total return			-3.90	%‡			6.61	%			12.15	%‡

Ratios/supplemental data:
Net assets, end of period (thousands)		$	29,468			$	24,991			$	18,183
Ratio of expenses to average net assets:
Before fee waivers			1.08	%†			1.11	%			1.15	%†
After fee waivers			0.90	%†			0.90	%			0.90	%†
Ratio of net investment income to average net assets:
Before fee waivers			0.68	%†			0.32	%			1.38	%†
After fee waivers			0.86	%†			0.53	%			1.63	%†
Portfolio turnover rate			7.77	%‡			13.91	%			11.59	%‡

* Commencement of operations.

# Amount is less than $0.01.

^ Per share numbers have been calculated using the average shares method.

‡ Not annualized.

† Annualized.

The accompanying notes are an integral part of these financial statements.

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited)

NOTE 1 - ORGANIZATION

The Davidson Multi-Cap Equity Fund (the “Fund”) is a diversified series of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end management investment company. The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies”. The Fund’s investment objective is to seek long-term capital appreciation. The Fund currently offers Class A shares, Class C shares, and Class I shares. Class A shares are subject to a maximum sales load of 5.00%, which decreases depending on the amount invested. U.S. Bancorp Fund Services, LLC, the Fund’s transfer agent, will assess Class C redemptions a 1.00% contingent deferred sales charge on shares held for twelve months or less, unless the dealer of record waived its commission. The Fund’s Class A shares, Class C shares, and Class I shares commenced operations on August 11, 2008, July 1, 2009, and October 30, 2013, respectively.

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.

Security Valuation: All investments in securities are recorded at their estimated fair value, as described in note 3.

Federal Income Taxes: It is the Fund’s policy to comply with the requirements of Subchapter M 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 or excise tax provision is required.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for the open tax years 2013-2015, or expected to be taken in the Fund’s 2016 tax returns. The Fund identifies its major tax jurisdictions as U.S. Federal and the state of Wisconsin; however the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Securities Transactions, Income and Distributions: Securities transactions are accounted for on the trade date. Realized gains and losses on securities sold are determined on a first-in, first-out basis. Interest income is recorded on an accrual basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of the Fund based upon their relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.

The Fund distributes substantially all net investment income, if any, and net realized capital gains, if any, annually. Distributions from net realized gains for book purposes may include short-term capital gains. All short-term capital gains are included in ordinary income for tax purposes. The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which differs from 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.

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited), Continued

Reclassification of Capital Accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

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.

Redemption Fees: The Fund charges a 1.00% redemption fee to shareholders who redeem shares held for 7 calendar days or less. Such fees are retained by the Fund and accounted for as an addition to paid-in capital. During the six months ended December 31, 2015, the Fund retained no redemption fees.

Events Subsequent to the Fiscal Year End: In preparing the financial statements as of December 31, 2015, management considered the impact of subsequent events for potential recognition or disclosure in the financial statements.

NOTE 3 – SECURITIES VALUATION

The Fund has adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for majority security types. These inputs are summarized in the three broad levels listed below:

●

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

●

Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

●

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.

The Fund determines the fair value of its investments and computes its net asset value per share as of the close of regular trading on the New York Stock Exchange (4:00 pm EST).

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited), Continued

Equity Securities: The Fund’s investments are carried at fair value. Equity securities including common stocks and exchange-traded funds 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 Global 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 securities which are not traded in the NASDAQ Global Market System shall be valued at the most recent sales price. Investments in open-end mutual funds are valued at their net asset value per share. To the extent, these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Short-Term Securities: Short-term debt securities, including those securities having a maturity of 60 days or less, are valued at the evaluated mean between the bid and asked prices. To the extent the inputs are observable and timely, these securities would be classified in Level 2 of the fair value hierarchy.

The Board of Trustees (“Board”) has delegated day-to-day valuation issues to a Valuation Committee of the Trust which is comprised of representatives from U.S. Bancorp Fund Services, LLC, the Fund’s administrator. The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available or the closing price does not represent fair value by following procedures approved by the Board. These procedures consider many factors, including the type of security, size of holding, trading volume and news events. All actions taken by the Valuation Committee are subsequently reviewed and ratified by the Board.

Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either Level 2 or Level 3 of the fair value hierarchy.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund’s securities as of December 31, 2015:

	Level 1		Level 2		Level 3		Total
Common Stocks
Consumer Discretionary	$	13,407,959	$	—	$	—	$	13,407,959
Consumer Staples		8,721,784		—		—		8,721,784
Energy		6,321,688		—		—		6,321,688
Financials		18,014,472		—		—		18,014,472
Health Care		16,163,740		—		—		16,163,740
Industrials		14,188,120		—		—		14,188,120
Information Technology		18,591,415		—		—		18,591,415
Materials		3,889,679		—		—		3,889,679
Telecommunication Services		2,128,139		—		—		2,128,139
Utilities		2,367,172		—		—		2,367,172
Total Common Stocks		103,794,168		—		—		103,794,168
Short-Term Investments		2,028,435		—		—		2,028,435
Total Investments in Securities	$	105,822,603	$	—	$	—	$	105,822,603

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited), Continued

Refer to the Fund’s schedule of investments for a detailed break-out of securities by industry classification. Transfers between levels are recognized at December 31, 2015, the end of the reporting period. The Fund recognized no transfers between levels. There were no Level 3 securities held in the Fund during the six months ended December 31, 2015.

In May 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-07 “Disclosure for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent).” The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Management is currently evaluating the impact these changes will have on the Fund’s financial statements and related disclosures.

NOTE 4 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

For the six months ended December 31, 2015, Davidson Investment Advisors, Inc. (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 0.65% based upon the average daily net assets of the Fund. For the six months ended December 31, 2015, the Fund incurred $341,159 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 Class A, Class C, and Class I net annual operating expenses to 1.15%, 1.90%, and 0.90%, respectively, of average daily net assets. 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. 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 six months ended December 31, 2015, the Advisor reduced its fees and absorbed Fund expenses in the amount of $93,171. Cumulative expenses subject to recapture pursuant to the aforementioned conditions expire as follows:

Year	Amount
2016	$	141,618
2017		171,720
2018		198,344
2019		93,171
	$	604,853

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. U.S. Bancorp Fund Services, LLC also serves as the fund accountant and transfer agent to the Fund. U.S. Bank N.A., an affiliate of U.S. Bancorp Fund Services, serves as the Fund’s custodian.

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited), Continued

For the six months ended December 31, 2015, the Fund incurred the following expenses for administration, transfer agency, fund accounting, custody and chief compliance officer fees:

Administration	$70,838
Transfer Agency (a)	42,761
Fund Accounting	37,575
Custody	8,424
Chief Compliance Officer	4,529

(a) Does not include out-of-pocket expenses

At December 31, 2015, the Fund had payables due to USBFS for administration, transfer agency, fund accounting, to U.S. Bank, N.A. for custody fees, and chief compliance officer fees in the following amounts:

Administration	$34,963
Transfer Agency (a)	21,128
Fund Accounting	18,519
Custody	3,052
Chief Compliance Officer	2,279

(a) Does not include out-of-pocket expenses

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. The Distributor has advised the Fund that it has received $130,151 in front-end sales charges resulting from sales of Class A shares. For the six months ended December 31, 2015, the Distributor paid front-end sales charges of $103,270 to D.A. Davidson & Co. (“DAD”), the Advisor’s affiliated broker dealer. The Distributor pays a broker dealer a 1.00% up-front sales commission, which includes an advance of the first year’s service and distribution fees on Class C shares. The Distributor retains the service and distribution fees in the first year to reimburse itself for paying your financial intermediary a 1.00% up-front sales commission and retains the service and distribution fees on accounts with no authorized dealer of record. For the six months ended December 31, 2015, the Distributor paid DAD $18,574 in up-front sales commissions on Class C shares.

Certain officers of the Fund are employees of the Administrator. The Trust’s Chief Compliance Officer is also an employee of USBFS. A Trustee of the Trust is affiliated with USBFS and U.S. Bank N.A. This same Trustee is an interested person of the distributor.

NOTE 5 – DISTRIBUTION AGREEMENT AND PLAN

The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 (the “Plan”). The Plan permits the Fund to pay the Distributor for distribution and related expenses at an annual rate of up to 0.25% and 1.00%, respectively, of the Class A and Class C shares average daily net assets. 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. For the six months ended December 31, 2015, the Class A shares and Class C shares paid the Distributor $66,155 and $116,903, respectively.

Davidson Multi-Cap Equity Fund

NOTES TO FINANCIAL STATEMENTS at December 31, 2015 (Unaudited), Continued

NOTE 6 – PURCHASES AND SALES OF SECURITIES

For the six months ended December 31, 2015, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $21,195,021 and $7,852,124, respectively.

NOTE 7 – INCOME TAXES

The tax character of distributions paid during the six months ended December 31, 2015 and the fiscal year ended June 30, 2015 was as follows:

Ordinary income distributions may include dividends paid from short-term capital gains.

As of June 30, 2015, the Fund’s most recently completed fiscal year end, the components of accumulated earnings/(losses) on a tax basis were as follows:

Cost of investments (a)	$71,918,450
Gross tax unrealized appreciation	31,001,893
Gross tax unrealized depreciation	(1,212,908)
Net tax unrealized appreciation (a)	29,788,985
Undistributed ordinary income	186,318
Undistributed long-term capital gain	552,640
Total distributable earnings	738,958
Total accumulated earnings/(losses)	$30,527,943

(a)	The difference between book-basis and tax-basis net unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and REIT adjustments.

Davidson Multi-Cap Equity Fund

NOTICE TO SHAREHOLDERS at December 31, 2015 (Unaudited)

How to Obtain a Copy of the Fund’s Proxy Voting Policies

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling 1-877-332-0529 or on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.

How to Obtain a Copy of the Fund’s Proxy Voting Records for the 12-Month Period Ended June 30, 2015

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent six-month period ended December 31 is available without charge, upon request, by calling 1-877-332-0529. Furthermore, you can obtain the Fund’s proxy voting records on the SEC’s website at http://www.sec.gov.

Quarterly Filings on Form N-Q

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090. Information included in the Fund’s Form N-Q is also available by calling 1-877-332-0529.

Householding

In an effort to decrease costs, the Fund intends to reduce the number of duplicate prospectuses, annual and semi-annual reports, proxy statements and other similar documents you receive by sending only one copy of each to those addresses shared by two or more accounts and to shareholders the Transfer Agent reasonably believes are from the same family or household. Once implemented, if you would like to discontinue householding for your accounts, please call toll-free at 1-877-332-0529 to request individual copies of these documents. Once the Transfer Agent receives notice to stop householding, the Transfer Agent will begin sending individual copies thirty days after receiving your request. This policy does not apply to account statements.

Davidson Funds

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting held on December 2-3, 2015, the Board (which is comprised of five persons, four of whom are Independent Trustees as defined under the Investment Company Act of 1940, as amended), considered and approved the continuance of the investment advisory agreement (the “Advisory Agreement”) between Advisors Series Trust (the “Trust”) and Davidson Investment Advisors, Inc. (the “Advisor”) for another annual term for the Davidson Multi-Cap Equity Fund. In addition, the Board considered and approved the continuance for another annual term of the Advisory Agreement for the Davidson Equity Income Fund and Davidson Intermediate Fixed Income Fund, each of which had not yet commenced operations at the time of this meeting (collectively, the “Funds”). At this meeting, and at a prior meeting held on October 14-15, 2015, the Board received and reviewed substantial information regarding the Funds, the Advisor and the services provided by the Advisor to the Funds under the Advisory Agreement. This information, together with the information provided to the Board throughout the course of the year, formed the primary (but not exclusive) basis for the Board’s determinations. Below is a summary of the factors considered by the Board and the conclusions that formed the basis for the Board’s approval of the continuance of the Advisory Agreement:

The nature, extent and quality of the services provided and to be provided by the Advisor under the Advisory Agreement. The Board considered the nature, extent and quality of the Advisor’s overall services provided to the Davidson Multi-Cap Equity Fund as well as its specific responsibilities in all aspects of day-to-day investment management of the Funds. The Board considered the qualifications, experience and responsibilities of the portfolio managers, as well as the responsibilities of other key personnel of the Advisor involved in the day-to-day activities of the Funds. The Board also considered the resources and compliance structure of the Advisor, including information regarding its compliance program, its chief compliance officer, the Advisor’s compliance record, and the Advisor’s disaster recovery/business continuity plan. The Board also considered the prior relationship between the Advisor and the Trust, as well as the Board’s knowledge of the Advisor’s operations, and noted that during the course of the prior year they had met with the Advisor in person to discuss Davidson Multi-Cap Equity Fund performance and investment outlook as well as various marketing and compliance topics, including the Advisor’s risk management process. The Board noted that these same attributes of the Advisor would be applicable to the Davidson Equity Income Fund and Davidson Intermediate Fixed Income Fund once they commenced operations. The Board concluded that the Advisor had the quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that the nature, overall quality and extent of such management services are satisfactory.

The Fund’s historical performance and the overall performance of the Advisor. In assessing the quality of the portfolio management delivered by the Advisor, the Board reviewed the short-term and long-term performance of the Davidson Multi-Cap Equity Fund as of June 30, 2015 on both an absolute basis and in comparison to an appropriate securities benchmark and its peer funds utilizing Lipper and Morningstar classifications. While the Board considered both short-term and long-term performance, it placed greater emphasis on longer term performance. In reviewing performance, the Board took into account that the Davidson Equity Income Fund and Davidson Intermediate Fixed Income Fund had each not yet commenced operations. When reviewing performance against the comparative peer group universe, the Board took into account that the investment objective and strategy of the Davidson Multi-Cap Equity Fund, as well as its level of risk tolerance, may differ significantly from funds in the peer universe.

Davidson Multi-Cap Equity Fund: The Board noted that the Fund’s performance, with regard to its Lipper comparative universe, was above its peer group median for all relevant periods.

Davidson Funds
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited) , Continued

The Board noted that the Fund’s performance, with regard to its Morningstar comparative universe, was above its peer group median for all relevant periods.

The Board also considered the Fund’s performance compared to its similarly managed accounts for all periods, noting that performance substantially similar for all time periods. The Board also considered the performance of the Fund against a broad-based securities market benchmark.

The costs of the services to be provided by the Advisor and the structure of the Advisor’s fee under the Advisory Agreement. In considering the advisory fee and total fees and expenses of each Fund, the Board reviewed comparisons to the peer funds and similarly managed separate accounts, if any, for other types of clients advised by the Advisor, as well as all expense waivers and reimbursements. When reviewing fees charged to other similarly managed accounts, the Board took into account the type of account and the differences in the management of that account that might be germane to the difference, if any, in the fees charged to such accounts. The Board found that the fees charged to the Multi-Cap Equity Fund were generally in line with or comparable to the fees charged by the Advisor to its similarly managed separate account clients, and to the extent fees charged to the Fund were higher than for similarly managed separate accounts of similar size, it was largely a reflection of the nature of the separate account client and the greater costs to the Advisor of managing the Fund.

Davidson Multi-Cap Equity Fund: The Board noted that the Advisor had contractually agreed to maintain an annual expense ratio of 1.15% for Class A shares, 1.90% for Class C shares, and 0.90% for Class I shares (respectively, the “Expense Caps”). The Board noted that the Fund’s total expense ratio for Class A shares was above its peer group median and average, and was above the median and average of the Fund’s peer group when adjusted to include only funds with similar asset sizes. The total expense ratio for Class C shares was above its peer group median and average, as well as the average of the Fund’s peer group when adjusted to include only funds with similar asset sizes. The Board noted that the Fund’s total expense ratio for Class I shares was below its peer group median and average, and was below the average of the Fund’s peer group when adjusted to include only funds with similar asset sizes.

The Board also noted that the Fund’s contractual advisory fee was above its peer group median and average, and was slightly below the average of the Fund’s peer group when adjusted to include only funds with similar asset sizes, and that after advisory fee waivers and the payment of Fund expenses necessary to maintain the Expense Caps, the net advisory fees received by the Advisor from the Fund during the most recent fiscal period were below the peer group median and average. The Board also took into consideration the services the Advisor provided to its similarly managed account clients, comparing the fees charged for those management services to the fees charged to the Fund. The Board found that the management fees charged to the Fund were in line with the management fees charged to the Advisor’s similarly managed account clients. As a result, the Trustees noted that the Fund’s expenses and advisory fee were not outside the range of its peer group.

Davidson Funds
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited) , Continued

Davidson Equity Income Fund: The Board noted that the Advisor had contractually agreed to maintain an annual expense ratio of 1.10% for Class A shares and 1.85% for Class C shares (respectively, the “Expense Caps”). The Board noted that the Fund’s estimated total expense ratio was slightly above its peer group median and average for Class A shares, and above its peer group median and average for Class C shares. The Board also noted that the Fund’s contractual advisory fee was below its peer group median and average. As a result, the Trustees noted that the Fund’s estimated expenses and advisory fee were not outside the range of its peer group.

Davidson Intermediate Fixed Income Fund: The Board noted that the Advisor had contractually agreed to maintain an annual expense ratio of 0.94% for Class A shares and 0.69% for Class I shares (respectively, the “Expense Caps”). The Board noted that the Fund’s estimated total expense ratio was above its peer group median and average for Class A shares, and below its peer group median and average for Class I shares. The Board also noted that the Fund’s contractual advisory fee was below its peer group median and its peer group average. The Board also took into consideration the services the Advisor provided to its similarly managed account clients, comparing the fees charged for those management services to the fees to be charged to the Fund. The Board found that the management fees to be charged to the Fund were in line with the management fees charged to the Advisor’s similarly managed account clients. As a result, the Trustees noted that the Fund’s estimated expenses and advisory fee were not outside the range of its peer group.

Economies of Scale. The Board also considered whether economies of scale were being realized by the Advisor that should be shared with shareholders. The Board noted that the Advisor contractually agreed to reduce its advisory fee or reimburse Fund expenses so that the Funds do not exceed the specified Expense Caps. The Board noted that at current asset levels, the Advisor continued to subsidize expenses to maintain the Expense Cap and determined to revisit the issue of economies of scale when the fund has grown to a point that this subsidization is no longer in effect.

The profits to be realized by the Advisor and its affiliates from its relationship with the Funds. The Board reviewed the Advisor’s financial information and took into account both the direct benefits and the indirect benefits to the Advisor from advising the Funds. The Board considered the profitability to the Advisor from its relationship with the Funds and considered any additional benefits derived by the Advisor from its relationship with the Funds, including “soft dollar” benefits that may be received by the Advisor in exchange for Fund brokerage and Rule 12b-1 fees paid to the Advisor’s affiliated broker-dealer – D.A. Davidson & Co. – in connection with client assets that are invested in the Funds. The Board also reviewed information regarding fee offsets for separate accounts invested in the Funds and determined that the Advisor was not currently receiving an advisory fee both at the separate account and at the Fund level for these accounts, and as a result was not receiving additional fall-out benefits from these relationships. After such review, the Board determined that the profitability to the Advisor with respect to the Advisory Agreement was not excessive, and that the Advisor had maintained adequate profit levels to support the services it provides to the Funds.

No single factor was determinative of the Board’s decision to approve the continuance of the Advisory Agreement for the Funds, but rather the Board based its determination on the total combination of information available to them. Based on a consideration of all the factors in their totality, the Board determined that the advisory arrangements with the Advisor, including the advisory fees, were fair and reasonable. The Board therefore determined that the continuance of the Advisory Agreement for the Funds would be in the best interests of the Funds and their shareholders.

PRIVACY NOTICE

The Fund collects non-public information about you from the following sources:

•	Information we receive about you on applications or other forms;

•	Information you give us orally; and/or

•	Information about your transactions with us or others.

We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.

In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.

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Advisor		DAVIDSON MULTI-CAP EQUITY FUND Semi-Annual Report For the period ended December 31, 2015
Davidson Investment Advisors, Inc.
Davidson Building
8 Third Street North
Great Falls, MT 59401
www.davidsonmutualfunds.com

Distributor
Quasar Distributors, LLC
615 East Michigan Street
Milwaukee, WI 53202

Custodian
U.S. Bank N.A.
1555 N. River Center Drive, Suite 302
Milwaukee, WI 53212

Transfer Agent
U.S. Bancorp Fund Services, LLC
615 East Michigan Street, 2nd Floor
Milwaukee, WI 53202
877-332-0529

Independent Registered
Public Accounting Firm
Tait, Weller & Baker, LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103

Legal Counsel
Schiff Hardin LLP
666 Fifth Avenue, Suite 1700
New York, NY 10103

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 free prospectus please call 877-332-0529.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

(a)	Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b)	Not Applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a)

The Registrant’s President/Principal Executive Officer and Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended, (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable.

(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)	Certifications 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/ Douglas G. Hess

Douglas G. Hess, President

Date 3/4/2016

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.

By (Signature and Title)* /s/ Douglas G. Hess

Douglas G. Hess, President

Date 3/4/2016

By (Signature and Title)*/s/ Cheryl L. King

Cheryl L. King, Treasurer

Date 3/4/2016

* Print the name and title of each signing officer under his or her signature