N-30D 1 tataf-a.txt The American Trust Allegiance Fund One Court Street Lebanon, New Hampshire 03766 ANNUAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 2002 AMERICAN TRUST ALLEGIANCE FUND May, 2002 Dear Fellow Shareholder, We are pleased to send you the American Trust Allegiance Fund's annual report for the twelve months ending February 28, 2002. Assets equal $26.1 million. The Fund's investment performance over the past twelve months was disappointing, as it lagged the S&P 500 Index over this time period. The Fund's disappointing performance can be largely attributed to an overweighted position in the technology sector. With hindsight, we were slower to react to the enormous decline in technology capital spending than we would have preferred. In many segments of the technology sector, the capital spending falloff was the worst on record, which when coupled with high valuations led to a dramatic decline in stock prices. Two of the lessons to be learned from the recent bear market are that diversification and valuation matter. We have shifted the portfolio toward significantly more diversification across sectors and industries, with our technology sector weighting reduced considerably. We believe that the broader economy and stock market will recover more quickly than the technology sector and associated stocks. Contrary to the past few years, we believe investors will focus more on the valuation of individual stocks and the importance of actual earnings and revenues. Our investment discipline continues to focus on the changes in the competitive position and the underlying fundamentals of the companies we own. Our research continues to favor predominantly large capitalization, domestic, high quality companies which possess, on average, growth in earnings per share faster than that of the general stock market. In the current market environment, we feel companies that have demonstrated a more predictable, consistent record of growth in earnings per share are the most attractive. We thank you for your support and look forward to helping you achieve your financial goals. /s/Jeffrey M. Harris /s/Paul H. Collins Jeffrey M. Harris, CFA Paul H. Collins Mutual Fund investing involves risk; loss of principal is possible. Please refer to page 3 of this report for performance information. Distributed by Quasar Distributors, LLC. (05/02) THE AMERICAN TRUST ALLEGIANCE FUND VS. THE S&P 500 INDEX Date American Trust Allegiance Fund (ATAFX) S&P 500 Index ---- -------------------------------------- ------------- 3/11/97 $10,000 $10,000 5/31/97 $10,630 $10,501 8/31/97 $11,450 $11,181 11/30/97 $12,200 $11,929 2/28/98 $13,480 $13,149 5/31/98 $13,620 $13,724 8/31/98 $12,110 $12,086 11/30/98 $15,130 $14,749 2/28/99 $17,183 $15,741 5/31/99 $17,842 $16,606 8/31/99 $17,893 $16,898 11/30/99 $20,765 $17,835 2/29/00 $25,941 $17,591 5/31/00 $23,536 $18,344 8/31/00 $28,337 $19,657 11/30/00 $20,887 $17,078 2/28/01 $17,463 $16,147 5/31/01 $16,473 $16,411 8/31/01 $14,931 $14,861 11/30/01 $14,900 $14,995 2/28/02 $15,043 $14,619 AVERAGE ANNUAL SINCE TOTAL RETURN ONE INCEPTION AS OF FEBRUARY 28, 2002 YEAR (3/11/97) ----------------------- ---- --------- American Trust Allegiance Fund -13.86% 8.56% S&P 500 Index -9.46% 7.94% Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate and an investor's shares, when redeemed, may be worth more or less than their original cost. Returns include reinvestment of dividends and capital gains and fee waivers in effect. In the absence of fee waivers, returns would be reduced. Short term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. The S&P 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. You cannot invest directly in an index. SCHEDULE OF INVESTMENTS AT FEBRUARY 28, 2002 Shares COMMON STOCKS: 96.2% Market Value ------ --------------------- ------------ AEROSPACE/DEFENSE: 2.8% 3,500 General Dynamics Corp. $ 318,080 5,700 United Technologies Corp. 415,815 ----------- 733,895 ----------- AIR FREIGHT & COURIERS: 0.7% 3,400 Expeditors International of Washington, Inc. 185,368 ----------- ALUMINUM: 1.5% 10,600 Alcoa, Inc. 398,242 ----------- APPLICATION SOFTWARE: 1.2% 11,200 Siebel Systems, Inc.* 310,912 ----------- BANKS: 6.3% 8,300 Fifth Third Bancorp 529,208 8,700 Northern Trust Corp. 470,844 17,500 The Bank of New York Company, Inc. 658,700 ----------- 1,658,752 ----------- BROADCASTING & CABLE: 1.8% 13,500 Comcast Corp. - Special Class A* 457,245 ----------- CHEMICALS - SPECIALTY: 1.5% 8,400 Ecolab, Inc.* 393,372 ----------- COMPUTER HARDWARE: 1.6% 11,000 Dell Computer Corp.* 271,590 1,350 International Business Machines Corp. 132,462 ----------- 404,052 ----------- COMPUTER SERVICES: 1.0% 5,500 Affiliated Computer Services, Inc. - Class A* 269,005 ----------- COMPUTER STORAGE/PERIPHERAL: 0.9% 22,000 EMC Corp.* 239,800 ----------- CONSTRUCTION & ENGINEERING: 1.8% 6,800 Jacobs Engineering Group, Inc.* 458,660 ----------- CONSUMER FINANCE: 1.9% 14,100 MBNA Corp. 488,988 ----------- COSMETICS: 4.3% 12,000 Alberto-Culver Co. - Class B 624,840 9,400 Avon Products, Inc. 485,886 ----------- 1,110,726 ----------- DEPARTMENT STORES: 2.8% 10,700 Kohl's Corp.* 724,069 ----------- DIVERSE FINANCIAL SERVICES: 9.5% 15,300 American Express Co. 557,685 4,200 Fannie Mae 328,650 17,000 Federated Investors, Inc. - Class B 536,860 11,700 Merrill Lynch & Co., Inc. 561,015 9,800 State Street Corp. 496,860 ----------- 2,481,070 ----------- ELECTRICAL COMPONENT: 1.4% 6,300 Emerson Electric Co. 362,817 ----------- FOOD DISTRIBUTORS: 3.9% 17,100 Performance Food Group Co.* 637,659 13,200 SYSCO Corp. 390,324 ----------- 1,027,983 ----------- FOOD MISCELLANEOUS: 0.9% 5,000 General Mills, Inc. 231,150 ----------- FOREST PRODUCTS: 0.8% 3,500 Weyerhaeuser Co. 216,370 ----------- HOUSEHOLD PRODUCTS: 3.9% 8,350 Colgate-Palmolive Co. 467,433 12,800 The Clorox Co. 560,512 ----------- 1,027,945 ----------- INSURANCE - BROKERS: 2.6% 6,375 Marsh & McLennan Companies, Inc. 672,881 ----------- INSURANCE - MULTI-LINE: 1.7% 6,167 American International Group, Inc. 456,173 ----------- IT CONSULTING & SERVICES: 0.8% 7,200 SunGard Data Systems, Inc.* 222,264 ----------- MACHINERY INDUSTRIAL: 2.9% 5,300 Illinois Tool Works, Inc. 389,868 7,200 Ingersoll-Rand Co. 360,000 ----------- 749,868 ----------- MOTORCYCLE MANUFACTURERS: 2.7% 13,600 Harley-Davidson, Inc. 697,136 ----------- NETWORKING EQUIPMENT: 0.8% 14,520 Cisco Systems, Inc.* 207,201 ----------- OIL AND GAS - EQUIPMENT/SERVICE: 2.5% 11,000 Schlumberger Ltd. 640,310 ----------- OIL AND GAS - INTEGRATED: 5.2% 6,700 Chevron/Texaco 565,748 13,100 Exxon Mobil Corp. 541,030 4,700 Royal Dutch Petroleum Co. # 241,439 ----------- 1,348,217 ----------- RESTAURANTS: 4.9% 16,000 Darden Restaurants, Inc. 676,480 23,100 Sonic Corp.* 617,232 ----------- 1,293,712 ----------- RETAIL - HOME IMPROVEMENT: 1.9% 10,100 The Home Depot, Inc. 505,000 ----------- SEMICONDUCTOR EQUIPMENT: 1.0% 5,800 Applied Materials, Inc.* 252,126 ----------- SEMICONDUCTORS: 3.8% 5,800 Analog Devices, Inc.* 215,818 18,500 Intel Corp. 528,175 8,000 Texas Instruments, Inc. 234,800 ----------- 978,793 ----------- SERVICES - DATA PROCESSING: 4.1% 4,200 Automatic Data Processing, Inc. 221,382 7,800 Concord EFS, Inc.* 234,234 7,500 First Data Corp. 611,400 ----------- 1,067,016 ----------- SERVICES - DIVERSE/COMMERCIAL: 2.5% 10,700 Apollo Group, Inc. - Class A* 519,485 3,200 Cintas Corp. 141,728 ----------- 661,213 ----------- SPECIALTY STORES: 2.6% 20,000 Bed Bath & Beyond, Inc.* 668,000 ----------- SYSTEMS SOFTWARE: 2.6% 7,250 Microsoft Corp.* 422,965 15,700 Oracle Corp.* 260,934 ----------- 683,899 ----------- TELEPHONE-INTEGRATED: 3.1% 6,900 BellSouth Corp. 267,444 9,600 SBC Communications, Inc. 363,264 4,000 Verizon Communications, Inc. 187,200 ----------- 817,908 ----------- TOTAL COMMON STOCKS (Cost $24,806,649) 25,102,138 ----------- Principal Amount SHORT-TERM INVESTMENTS: 3.7% --------- ----------------------------- $958,384 Federated Trust 1.09% Due 3/1/2002 (Cost $958,384) 958,384 ----------- Total Investments in Securities (Cost $25,765,033): 99.9% 26,060,522 Other Assets less Liabilities: 0.1% 15,178 ----------- Net Assets: 100.0% $26,075,700 ----------- ----------- * Non-income producing security. # ADR - American Depository Receipt See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES AT FEBRUARY 28, 2002 ASSETS Investments in securities, at value (cost $25,765,033) $26,060,522 Cash 18,836 Receivables: Due from advisor 8,287 Fund shares sold 1,736 Dividends and interest 21,572 Prepaid expenses and other assets 8,020 ----------- Total assets 26,118,973 ----------- LIABILITIES Accrued expenses 43,273 ----------- Total liabilities 43,273 ----------- NET ASSETS $26,075,700 ----------- ----------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$26,075,700 / 1,855,654 shares outstanding; unlimited number of shares (par value $0.01) authorized] $14.05 ------ ------ COMPONENTS OF NET ASSETS Paid-in capital $32,700,364 Accumulated net realized loss on investments (6,920,153) Net unrealized appreciation on investments 295,489 ----------- Net assets $26,075,700 ----------- ----------- See accompanying Notes to Financial Statements. STATEMENT OF OPERATIONS FOR THE YEAR ENDED FEBRUARY 28, 2002 INVESTMENT INCOME Income Dividends $ 215,294 Interest 44,104 ----------- Total income 259,398 ----------- Expenses Advisory fees (Note 3) 266,280 Administration fees (Note 3) 56,064 Transfer agent fees 52,456 Fund accounting fees 27,341 Registration fees 19,327 Audit fees 21,608 Reports to shareholders 19,255 Custody fees 12,278 Miscellaneous 5,613 Legal fees 11,891 Trustee fees 6,123 Deferred organization expense 3,701 Insurance expense 2,807 ----------- Total expenses 504,744 Less: advisory fee waiver (Note 3) (99,649) ----------- Net expenses 405,095 ----------- NET INVESTMENT LOSS (145,697) ----------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss on investments (6,372,357) Net change in unrealized appreciation on investments 2,111,359 ----------- Net realized and unrealized loss on investments (4,260,998) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(4,406,695) ----------- ----------- See accompanying Notes to Financial Statements. STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended February 28, February 28, 2002 2001 ------------ ----------- (DECREASE) / INCREASE IN NET ASSETS FROM: OPERATIONS Net investment loss $ (145,697) $ (310,502) Net realized (loss) / gain on investments (6,372,357) 164,480 Net unrealized appreciation / (depreciation) on investments 2,111,359 (15,142,450) ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (4,406,695) (15,288,472) ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Net realized gain on security transactions (709,246) (1,001,777) ----------- ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net (decrease) increase in net assets derived from net change in outstanding shares (765,630) 11,315,499 ----------- ----------- TOTAL DECREASE IN NET ASSETS (5,881,571) (4,974,750) NET ASSETS Beginning of year 31,957,271 36,932,021 ----------- ----------- END OF YEAR $26,075,700 $31,957,271 ----------- ----------- ----------- ----------- (a) A summary of share transactions is as follows: Year Ended Year Ended February 28, 2002 February 28, 2001 ---------------------- ----------------------- Shares Value Shares Value -------- -------- -------- -------- Shares sold 245,748 $3,673,475 622,931 $15,165,103 Shares issued in reinvestment of distributions 49,283 692,922 47,738 974,814 Shares redeemed (345,925) (5,132,027) (209,050) (4,824,418) -------- ----------- -------- ----------- Net (decrease) / increase (50,894) $ (765,630) 461,619 $11,315,499 -------- ----------- -------- ----------- -------- ----------- -------- ----------- See accompanying Notes to Financial Statements. FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD Year Year Year Year 3/11/97* Ended Ended Ended Ended through 2/28/02 2/28/01 2/29/00 2/28/99 2/28/98 ------- ------- ------- ------- ------- Net asset value, beginning of period $16.76 $25.56 $16.93 $13.48 $10.00 ------ ------ ------ ------ ------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss (0.08) (0.16) (0.11) (0.07) (0.03) Net realized and unrealized gain (loss) on investments (2.24) (8.10) 8.74 3.74 3.51 ------ ------ ------ ------ ------ Total from investment operations (2.32) (8.26) 8.63 3.67 3.48 ------ ------ ------ ------ ------ Less distributions: From net realized gain (0.39) (0.54) -- (0.22) -- ------ ------ ------ ------ ------ Net asset value, end of period $14.05 $16.76 $25.56 $16.93 $13.48 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total return (13.86)% (32.68)% 50.97% 27.47% 34.80%++ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $26,076 $31,957 $36,932 $13,329 $6,360 Ratio of expenses to average net assets: Before expense reimbursement 1.80% 1.56% 1.75% 2.30% 4.04%+ After expense reimbursement 1.45% 1.45% 1.45% 1.45% 1.45%+ Ratio of net investment loss to average net assets: After fees waived and expenses absorbed (0.52)% (0.77)% (0.73)% (0.57)% (0.42)%+ Portfolio turnover rate 73.96% 86.13% 39.81% 40.99% 27.65%++
* Commencement of operations. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2002 NOTE 1 - ORGANIZATION The American Trust Allegiance Fund (the "Fund") is a series of shares of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The investment objective of the Fund is to seek capital appreciation. The Fund began operations on March 11, 1997. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America. A. Security Valuation: The Fund's investments are carried at fair value. Securities that are primarily traded on a national securities exchange shall be valued at the last sale price on the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices. Securities primarily traded in the NASDAQ National Market System for which market quotations are readily available shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Over-the- counter ("OTC") securities which are not traded in the NASDAQ National Market System shall be valued at the most recent trade price. Securities for which market quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value. B. Federal Income Taxes: It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. Security Transactions, Dividends and Distributions: Security transactions are accounted for on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differs from generally accepted accounting principles. D. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the year ended February 28, 2002, American Trust Company (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 0.95% based upon the average daily net assets of the Fund. For the year ended February 28, 2002, the Fund incurred $266,280 in Advisory Fees. The Fund is responsible for its own operating expenses. The Advisor has agreed to reduce fees payable to it by the Fund and to pay Fund operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 1.45% of average net assets (the "expense cap"). Any such reduction made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the applicable limitation on Fund expenses. The Advisor is permitted to be reimbursed only for fee reductions and expense payments made in the previous three fiscal years, but is permitted to look back five years and four years, respectively, during the initial six years and seventh year of the Fund's operations. Any such reimbursement is also contingent upon Board of Trustees review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to the Fund's payment of current ordinary operating expenses. For the year ended February 28, 2002, the Advisor reduced its fees and absorbed Fund expenses in the amount of $99,649; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $383,870 at February 28, 2002. Cumulative expenses subject to recapture expire as follows: Year Amount ---- ------ 2003 $174,965 2004 109,256 2005 99,649 -------- $383,870 -------- -------- U.S. Bancorp Fund Services, LLC (formerly Investment Company Administration, LLC) (the "Administrator") acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rate: Fund asset level Fee rate ---------------- -------- Less than $15 million $30,000 $15 million to less than $50 million 0.20% of average daily net assets $50 million to less than $100 million 0.15% of average daily net assets $100 million to less than $150 million 0.10% of average daily net assets More than $150 million 0.05% of average daily net assets Quasar Distributors, LLC (the "Distributor") acts as the Fund's principal underwriter in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Administrator. Certain officers of the Fund are also officers of the Administrator. NOTE 4 - PURCHASES AND SALES OF SECURITIES For the year ended February 28, 2002, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $21,716,640 and $19,487,925, respectively. NOTE 5 - INCOME TAXES Net investment income and net realized gains 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. As of February 28, 2002, the components of net assets on a tax basis were as follows: Cost of investments $25,796,757 Gross tax unrealized appreciation 2,487,778 Gross tax unrealized depreciation (2,224,013) ----------- Net tax unrealized appreciation $ 263,765 ----------- ----------- Capital loss carryforward, expiring in 2010 $ 5,489,082 At February 28, 2002, the Fund has deferred capital losses occurring subsequent to October 31, 2001 of $1,399,347. For tax purposes, such losses will be reflected in the year ending February 28, 2003. The tax composition of dividends during the year ended February 28, 2002 was as follows: Long term capital gains $ 709,246 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Trustees and Shareholders of American Trust Allegiance Fund In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of American Trust Allegiance Fund series of Advisors Series Trust (the "Fund") at February 28, 2002, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2002 by correspondence with the custodian, provide a reasonable basis for our opinion. The financial highlights presented for the year ended February 28, 1999 and the period ended February 28, 1998 were audited by other independent accountants whose report dated March 26, 1999 expressed an unqualified opinion on those financial highlights. PricewaterhouseCoopers LLP New York, New York April 17, 2002 INFORMATION ABOUT TRUSTEES AND OFFICERS The business and affairs of the Fund are managed under the direction of the Fund's Board of Trustees. Information pertaining to the Trustees and Officers of the Fund is set forth below. Unless noted otherwise, each person has held the position listed for a minimum of five years. The SAI includes additional information about the Fund's officers and trustees and is available, without charge, upon request by calling 1-800-385-7003. INDEPENDENT TRUSTEES -------------------- TERM OF PRINCIPAL # OF FUNDS OTHER POSITION OFFICE AND OCCUPATION IN COMPLEX DIRECTORSHIPS NAME, AGE HELD WITH LENGTH OF DURING PAST OVERSEEN BY HELD BY AND ADDRESS THE TRUST TIME SERVED FIVE YEARS TRUSTEE TRUSTEE ----------- --------- ----------- ---------- ----------- ------------- Walter E. Auch Trustee Indefinite Management Fifteen Nicholas- (Born 1921) Term Consultant Applegate 4455 E. Camelback Rd., Funds, Suite 261-E Since 1997 Salomon Phoenix, AZ 85018 Smith Barney Funds, Bayan Strategic Realty Trust, Legend Properties, Pimco Advisors LLP, and Senele Group Donald E. O'Connor Trustee Indefinite Financial Fifteen The Parnassus (Born 1936) Term Consultant; formerly Fund 4455 E. Camelback Rd., Executive Vice The Parnassus Suite 261-E Since 1997 President and Chief Income Fund Phoenix, AZ 85018 Operating officer of The Forward ICI Mutual Insurance Funds Company (until January, 1997); Vice President, Operations, Investment Company Institute (until July, 1993). George T. Wofford III Trustee Indefinite Senior Vice Fifteen Not (Born 1939) Term President, Applicable 4455 E. Camelback Rd., Information Services, Suite 261-E Since 1997 Federal Home Loan Phoenix, AZ 85018 Bank of San Francisco
INTERESTED TRUSTEES AND OFFICERS -------------------------------- # OF FUNDS OTHER TERM OF PRINCIPAL IN COMPLEX DIRECTORSHIPS POSITION OFFICE AND OCCUPATION OVERSEEN BY HELD BY NAME, AGE HELD WITH LENGTH OF DURING PAST TRUSTEE OR TRUSTEE OR AND ADDRESS THE TRUST TIME SERVED FIVE YEARS OFFICER OFFICER ----------- --------- ----------- ---------- ----------- ------------- Eric M. Banhazl Trustee, Indefinite Senior Vice Fifteen Not (Born 1957) President Term President, U.S. Applicable 2020 E. Financial Way & Bancorp Fund Glendora, CA 91741 Treasurer Since 1997 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). Chad E. Fickett Secretary Indefinite Compliance None (Born 1973) Term Administrator, 615 E. Michigan St. U.S. Bancorp Fund Milwaukee, WI 53202 Since Services, LLC since March 2002 July 2000.
ADDITIONAL TAX INFORMATION (UNAUDITED) Under section 852(b)(3)(c) of the Internal Revenue Code, the Fund hereby designates $709,246 as a capital gain dividend for the fiscal year ended February 28, 2002. ADVISOR American Trust Investment Advisers, LLC One Court Street Lebanon, NH 03766 1-800-788-8806 DISTRIBUTOR Quasar Distributors, LLC 615 E. Michigan St., 2nd Floor Milwaukee, WI 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT Orbitex Data Services 14707 California Street, Suite 5 Omaha, NE 68154 1-800-385-7003 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 55 Second Street, 24th Floor San Francisco, CA 94105 This report is intended for the shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. For a current prospectus please call 1-800-385-7003. 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.