N-30D 1 namcef-a.txt (LOGO) NATIONAL ASSET MANAGEMENT CORE EQUITY FUND ANNUAL REPORT FOR THE YEAR ENDED APRIL 30, 2002 June 4, 2002 Dear Fellow Shareholder: We are pleased to provide you with this shareholder update on the National Asset Management Core Equity Fund. The Fund's value increased over the last six months as of 4/30/2002 by 3.69%, which compares favorably to the S&P 500 Index that gained 2.31% over the same period. Unfortunately for the trailing twelve months, which includes the market slide after the September 11th attacks on the World Trade Center and the Pentagon, the Fund declined by 12.28% but also outperformed the S&P 500, which declined 12.63%. Since inception on June 2, 1999, the Fund has experienced an annualized total return of -2.79% while the S&P 500 Index return was -5.13%. The goal of the Fund is to earn a high total investment return. This goal is pursued by staying fully invested in the stock market and by using two classic investment approaches, value and growth investing, in the portfolio. This philosophy is implemented by diversifying the portfolio with investments in three different types of stocks: growth, yield, and low P/E. Each performs differently during different economic conditions. The Fund invests in stocks with these attributes because they each have performed quite well over the long term. The market environment has been extremely volatile over the last six months. While the U.S. economy has begun to rebound, the stock market continues to fight strong head winds coming from three different sources: concerns regarding future earnings growth, corporate accounting irregularities and geo political anxieties. It's a cliche to say that the market climbs a wall of worry, but over the last six months short streaks of an advancing market have been reversed by disappointing news from one or more of the three major sources of concern causing the market to give up its previous gains. The S&P 500 index stood at 1060 at the beginning of November and three times over the next six months rose to the 1180 level before falling back to end the period very nearly where it started. History shows that over time the market digests the problems of the day and eventually moves higher. We believe it will again this time as well, but no one knows how soon. While the market has remained range bound, our Multiple Attribute philosophy continues to provide good diversification across growth, low P/E stocks and yield stocks. We currently have an emphasis in low P/E stocks, which are benefiting from the improving economy. The Fund is still broadly diversified across the major economic sectors of the large capitalization equity market. Bottom-up security selection is currently dominating portfolio activity due to the lack of any overwhelming evidence emerging from the macro economic environment that would favor a more theme driven approach. The largest sector weighting continues to be financial stocks that comprise 21% of the portfolio. These stocks currently offer good value and are benefiting from the low interest rate environment. Technology stocks currently represent 17% of the portfolio. This is a similar weighting to that of the S&P 500 index. These holdings can generally be considered the market leaders in their segment of the market; and we believe they will be among the first to recover when conditions begin to improve in the tech sector. The market has just experienced a very weak period with the S&P 500 index declining 28% from its all time high in March of 2000. This has been the weakest multi-year period since the bear market of 1973-74 when the market lost 37% of its value. Modern history shows that it is rare that market declines last longer than two years. There have been only six occurrences of consecutive down years since 1925 and only three occurrences of a third down year. At the time of this writing, the S&P 500 is firmly in negative territory for the calendar year 2002 and may end the year with a third consecutive annual decline. The good news for long term investors is that regardless of whether the decline was 2 years in length or longer, the following five year period return of the market was substantially positive and averaged almost 15% per annum. While human emotion can entice one to worry that it might be different this time, all the historical performance mentioned above captures many corporate profit cycles, other company collapses due to fraud or mismanagement and many geo political events including a world war. We believe the odds strongly favor a market rebound this time too. We thank you for your support and the trust you have expressed in us by investing in the Fund. We look forward to a long and successful relationship. Sincerely, INVESCO-National Asset Management Equity Team Past performance does not guarantee future results. Mutual fund investing involves risk; loss of principal is possible. Sector weightings are subject to change at anytime and are not recommendations to buy or sell securities in any sector. Please refer to the annual report for further holding and performance information. 07/02 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND Comparison of the change in value of a hypothetical $10,000 investment in the National Asset Management Core Equity Fund versus the S&P 500 Composite Stock Price Index. National Asset Management S&P 500 Composite Date Core Equity Fund Stock Price Index ---- ------------------------- ------------------ 6/2/1999 $10,000 $10,000 7/31/1999 $10,410 $10,279 10/31/1999 $10,720 $10,577 1/31/2000 $10,915 $10,853 4/30/2000 $11,426 $11,337 7/31/2000 $11,266 $11,199 10/31/2000 $11,746 $11,220 1/31/2001 $11,416 $10,754 4/30/2001 $10,497 $9,866 7/31/2001 $10,174 $9,594 10/31/2001 $8,881 $8,425 1/31/2002 $9,848 $9,015 4/30/2002 $9,208 $8,617 Since Inception Average Annual Total Return as of April 30, 2002 1-year (6/2/99) ------------------------------------------------ ------ --------------- National Asset Management Core Equity Fund -12.28% -2.79% S&P 500 Composite Stock Price Index -12.64% -5.13% Past performance is no guarantee of future results. The principal value of an investment will fluctuate, so that the investor's shares, when redeemed, may be worth more or less than the original investment. This chart assumes reinvestment of dividends and capital gains. Indices do not incur expenses and are not available for reinvestment. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of fund shares. The S&P 500 Composite Stock Price Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. Average annual total return represents the average change in account value over the periods indicated. SCHEDULE OF INVESTMENTS AT APRIL 30, 2002 Shares COMMON STOCKS: 98.40% Market Value ------------------------------------------------------------------------------- BASIC INDUSTRY: 6.17% 5,370 Alcoa, Inc. $ 182,741 9,300 Air Products and Chemicals, Inc. 446,865 9,910 Praxair, Inc. 565,861 4,570 Weyerhaeuser Co. 272,418 ----------- 1,467,885 ----------- CAPITAL GOODS: 15.45% 10,593 Automatic Data Processing, Inc. 538,548 12,200 Deere & Co. 546,072 26,962 General Electric Co. 850,651 11,320 Honeywell International, Inc. 415,218 10,440 Ingersoll-Rand Co. - Class A# 521,478 2,690 SPX Corp.* 362,208 9,920 The Boeing Co. 442,432 ----------- 3,676,607 ----------- COMMUNICATIONS: 1.03% 7,370 SBC Communications, Inc. 228,912 6,505 Worldcom, Inc.* 16,126 ----------- 245,038 ----------- CONSUMER CYCLICAL: 10.12% 12,370 AOL Time Warner, Inc.* 235,277 6,870 Dow Jones & Co., Inc. 373,522 12,956 The Home Depot, Inc. 600,770 10,850 Target Corp. 473,602 12,962 Wal-Mart Stores, Inc. 724,057 ----------- 2,407,228 ----------- CONSUMER STAPLES: 7.99% 20,940 Masco Corp. 588,414 10,440 PepsiCo., Inc. 541,836 8,020 Safeway, Inc.* 336,439 9,620 Walgreen Co. 363,347 1,280 Wm. Wrigley Jr. Co. 70,400 ----------- 1,900,436 ----------- ENERGY: 6.65% 6,513 ChevronTexaco Corp. 564,742 16,662 Exxon Mobil Corp. 669,312 6,370 Schlumberger Limited 348,757 ----------- 1,582,811 ----------- FINANCE: 20.76% 7,847 American International Group, Inc. 542,384 13,936 Citigroup, Inc. 603,429 8,320 Fannie Mae 656,698 10,250 Freddie Mac 669,838 5,380 MGIC Investment Corp. 383,917 1,450 Marsh & McLennan Companies, Inc. 146,566 7,300 Morgan Stanley Dean Witter & Co. 348,356 4,905 The PMI Group, Inc. 397,894 14,718 Radian Group, Inc. 763,864 5,420 The Goldman Sachs Group, Inc. 426,825 ----------- 4,939,771 ----------- HEALTHCARE: 12.58% 5,206 Bristol-Myers Squibb Co. 149,933 10,990 Johnson & Johnson 701,821 13,570 Medtronic, Inc. 606,443 9,383 Merck & Co, Inc. 509,872 16,430 Pfizer, Inc. 597,231 5,850 Tenet Healthcare Corp.* 429,215 ----------- 2,994,515 ----------- TECHNOLOGY: 17.01% 12,960 Altera Corp.* 266,458 7,440 Applied Micro Circuits Corp.* 50,220 30,112 Cisco Systems, Inc.* 441,141 13,790 Dell Computer Corp.* 363,229 9,610 EMC Corp.* 87,835 21,758 Intel Corp. 622,496 13,370 Jabil Circuit, Inc.* 272,882 4,170 Maxim Integrated Products, Inc* 207,666 13,285 Microsoft Corp.* 694,274 22,090 Oracle Corp.* 221,784 8,460 QUALCOMM, Inc.* 255,154 23,050 Sanmina - SCI Corp.* 239,720 7,850 Siebel Systems, Inc.* 189,892 6,950 Sun Microsystems, Inc.* 56,851 12,920 Vitesse Semiconductor Corp.* 77,262 ----------- 4,046,864 ----------- UTILITY: 0.64% 4,270 Cinergy Corp. 151,713 ----------- Total Common Stocks (Cost $26,970,941) 23,412,868 ----------- SHORT-TERM INVESTMENTS: 1.65% 392,839 Federated Cash Trust Series II (Cost $392,839) 392,839 ----------- Total Investment in Securities (Cost $27,363,780): 100.05% 23,805,707 Liabilities in Excess of Other Assets: (0.05%) (11,883) ----------- Net Assets: 100.00% $23,793,824 ----------- ----------- * Non-income producing security. # U.S. Security of foreign issuer. See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 2002 ASSETS Investments in securities, at value (identified cost $27,363,780) $23,805,707 Receivables Securities sold 23,216 Dividends 17,913 Prepaid expenses 5,098 ----------- Total assets 23,851,934 ----------- LIABILITIES Payables Securities purchased 19,605 Due to Advisor 1,504 Administration fees 4,064 Accrued expenses 32,937 ----------- Total liabilities 58,110 ----------- NET ASSETS $23,793,824 ----------- ----------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$23,793,824 / 2,623,158 shares outstanding; unlimited number of shares (par value $0.01) authorized] $9.07 ----- ----- COMPONENTS OF NET ASSETS Paid-in capital $28,385,316 Undistributed net investment income 34,773 Accumulated net realized loss on investments (1,068,192) Net unrealized depreciation on investments (3,558,073) ----------- Net assets $23,793,824 ----------- ----------- See accompanying Notes to Financial Statements. STATEMENT OF OPERATIONS FOR THE YEAR ENDED APRIL 30, 2002 INVESTMENT INCOME Income Dividend income $ 270,828 ----------- Expenses Advisory fees (Note 3) 123,919 Administration fees (Note 3) 49,567 Fund accounting fees 24,798 Professional fees 24,402 Custodian fees 15,602 Transfer agent fees 12,702 Registration fees 12,473 Trustees' fees 5,924 Reports to shareholders 4,901 Insurance fees 2,331 Miscellaneous 3,500 ----------- Total expenses 280,119 Less, advisory fee waiver (Note 3) (44,653) ----------- Net expenses 235,466 ----------- Net investment income 35,362 ----------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss from security transactions (1,068,192) Net change in unrealized depreciation on investments (2,209,330) ----------- Net realized and unrealized loss on investments (3,277,522) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(3,242,160) ----------- ----------- See accompanying Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS Year Ended Year Ended April 30, 2002 April 30, 2001 -------------- -------------- DECREASE IN NET ASSETS FROM: OPERATIONS Net investment income $ 35,362 $ 17,233 Net realized (loss) / gain on security transactions (1,068,192) 229,897 Net change in unrealized depreciation on investments (2,209,330) (1,742,167) ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (3,242,160) (1,495,037) ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Net investment income (13,956) (6,008) Net realized gain on security transactions (109,543) (123,981) ----------- ----------- TOTAL DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (123,499) (129,989) ----------- ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net increase in net assets derived from net change in outstanding shares (a) 2,708,667 15,469,987 ----------- ----------- TOTAL (DECREASE)/INCREASE IN NET ASSETS (656,992) 13,844,961 ----------- ----------- NET ASSETS Beginning of year 24,450,816 10,605,855 ----------- ----------- END OF YEAR $23,793,824 $24,450,816 ----------- ----------- ----------- ----------- Undistributed net investment income $ 34,773 $ 13,780 ----------- ----------- ----------- -----------
(a) A summary of share transactions is as follows: Year Ended Year Ended April 30, 2002 April 30, 2001 ---------------------- ---------------------- Shares Value Shares Value ------ ----- ------ ----- Shares sold 524,090 $5,211,817 1,452,413 $15,784,263 Shares issued in reinvestment of distributions 10,791 103,813 9,927 113,963 Shares redeemed (265,748) (2,606,963) (37,232) (428,239) ------- ---------- --------- ----------- Net increase 269,133 $2,708,667 1,425,108 $15,469,987 ------- ---------- --------- ----------- ------- ---------- --------- -----------
See accompanying Notes to Financial Statements. FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD Year Year June 2, 1999* Ended Ended through April 30, 2002 April 30, 2001 April 30, 2000 -------------- -------------- -------------- Net asset value, beginning of period $10.39 $11.42 $10.00 ------ ------ ------ Income from investment operations: Net investment income 0.01 0.01 0.01 Net realized and unrealized (loss) / gain on investments (1.28) (0.92) 1.42 ------ ------ ------ Total from investment operations (1.27) (0.91) 1.43 ------ ------ ------ Less distributions: From net investment income (0.01) (0.01) (0.01) From net realized gains (0.04) (0.11) -- ------ ------ ------ Total distributions (0.05) (0.12) (0.01) ------ ------ ------ Net asset value, end of period $ 9.07 $10.39 $11.42 ------ ------ ------ ------ ------ ------ Total return (12.28%) (8.13%) 14.26%++ Ratios/supplemental data: Net assets, end of period (000) $23,794 $24,451 $10,606 Ratio of expenses to average net assets: Before expense reimbursement 1.13% 1.27% 5.47%+ After expense reimbursement 0.95% 0.95% 0.95%+ Ratio of net investment income to average net assets: After expense reimbursement 0.14% 0.12% 0.14%+ Portfolio turnover rate 29.99% 21.88% 20.80%
* Commencement of operations. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL HIGHLIGHTS AT APRIL 30, 2002 NOTE 1 - ORGANIZATION The National Asset Management Core Equity Fund (the "Fund") is a series of shares of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund began operations on June 2, 1999. The investment objective of the Fund is to earn a high total return consisting of capital appreciation and current income by investing in common stocks of large and middle capitalization U.S. companies. 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 accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their Federal tax treatment. D. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the year ended April 30, 2002, INVESCO - National Asset Management Corporation (the "Advisor") provided the Fund with investment management services under an Investment Advisory Agreement. The Advisor furnished all investment advice, office space, facilities, and provides most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 0.50% based upon the average daily net assets of the Fund. For the year ended April 30, 2002, the Fund incurred $123,919 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 0.95% of average net assets (the "expense cap"). Any such reduction made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the applicable limitation on Fund expenses. The Advisor is permitted to be reimbursed only for fee reductions and expense payments made in the previous three fiscal years, but is permitted to look back five years and four years, respectively, during the initial six years and seventh year of the Fund's operations. Any such reimbursement is also contingent upon Board of Trustees review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to the Fund's payment of current ordinary operating expenses. For the year ended April 30, 2002, the Advisor reduced its fees in the amount of $44,653; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $202,044 at April 30, 2002. Cumulative expenses subject to recapture expire as follows: Year Amount ---- ------ 2005 $110,407 2006 $46,984 2007 $44,653 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 April 30, 2002, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $9,651,103 and $7,277,296 respectively. NOTE 5 - INCOME TAXES AND DISTRIBUTIONS 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 April 30, 2002, the components of net assets on a tax basis were as follows: Cost of investments $27,377,704 Gross tax unrealized appreciation 1,940,036 Gross tax unrealized depreciation (5,512,033) ----------- Net tax unrealized depreciation $(3,571,997) ----------- ----------- Capital loss carryforward expiring in 2010 $(312,802) --------- --------- Undistributed ordinary income $34,773 ------- ------- At April 30, 2002, the Fund had deferred capital losses occurring subsequent to October 31, 2001 of ($741,466). For tax purposes, such losses will be reflected in the year ending April 30, 2003. The tax composition of dividends during the year ended April 30, 2002, was as follows: Ordinary income $64,736 Long term capital gains 58,763 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Trustees and Shareholders of National Asset Management Core Equity 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 National Asset Management Core Equity Fund, a series of Advisor Series Trust (the "Fund") at April 30, 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 the periods indicated, 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 April 30, 2002 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York June 28, 2002 INFORMATION ABOUT TRUSTEES AND OFFICERS (UNAUDITED) 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 1-800-576-8229. INDEPENDENT TRUSTEES -------------------- Term of # of Office and Principal Funds in Position Length of Occupation complex Other Name, Age Held with Time During Past overseen Directorships and Address the Trust Served Five Years by Trustee Held by Trustee ----------- --------- ---------- ----------- ---------- --------------- Walter E. Auch Trustee Indefinite Management Sixteen Salomon Smith (Born 1921) Term Consultant Barney Funds, 2020 E. Financial Way Bayan Strategic Glendora, CA 91741 Since Realty Trust, 1997 Legend Properties, Pimco Advisors LLP, and Senele Group James Clayburn Trustee Indefinite Dean Emeritus, John Sixteen Trust for LaForce Term E. Anderson Graduate Investment (Born 1927) School of Management, Managers 2020 E. Financial Way Since University of Glendora, CA 91741 March California, 2002 Los Angeles Donald E. O'Connor Trustee Indefinite Financial Consultant; Sixteen The Forwards (Born 1936) Term formerly Executive Vice Funds 2020 E. Financial Way President and Chief Glendora, CA 91741 Since Operating officer of ICI 1997 Mutual Insurance Company (until January, 1997); Vice President, Operations, Investment Company Institute (until July, 1993). George J. Rebhan Trustee Indefinite Retired; formerly Sixteen Trust for (Born 1934) Term President, Hotchkis Investment 2020 E. Financial Way and Wiley Funds Managers, Glendora, CA 91741 Since (mutual funds) E*Trade March from 1985 Funds 2002 to 1993. # of Term of Funds in Office and Principal complex Other Position Length of Occupation overseen Directorships Name, Age Held with Time During Past by Trustee Held by Trustee and Address the Trust Served Five Years or Officer or Officer ----------- --------- ---------- ----------- ---------- ---------- George T. Wofford III Trustee Indefinite Senior Vice President, Sixteen Not Applicable (Born 1939) Term Information Services, 2020 E. Financial Way Federal Home Loan Bank Glendora, CA 91741 Since of San Francisco. 1997 INTERESTED TRUSTEES AND OFFICERS -------------------------------- Eric M. Banhazl Trustee, Indefinite Senior Vice President, Sixteen None (Born 1957) President Term U.S. Bancorp Fund 2020 E. & Services, LLC, the Financial Way Treasurer Since Fund's administrator Glendora, CA 1997 (since July, 2001); 91741 Treasurer, Investec Funds; formerly, Executive Vice President, Investment Company Administration, LLC (ICA) (The Fund's former administrator). Chad E. Fickett Secretary Indefinite Compliance Sixteen None (Born 1973) Term Administrator, 615 E. U.S. Bancorp Fund Michigan Street Since Services, LLC since Milwaukee, WI March July 2000. 53202 2002
ADDITIONAL TAX INFORMATION (UNAUDITED) Under section 852(b)(3)(c) of the Internal Revenue Code, the Fund hereby designates $58,763 as a long-term capital gain dividend for the fiscal year ended April 30, 2002. Of the ordinary income (including short-term capital gain) distributions made by the Fund during the fiscal year ended April 30, 2002, 96.9% qualifies for the dividend received deduction available to corporate shareholders. ADVISOR INVESCO - National Asset Management 400 West Market Street, Suite 2500 Louisville, Kentucky 40202 DISTRIBUTOR Quasar Distributors, LLC 615 East Michigan Street, 2nd Floor Milwaukee, Wisconsin 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, Ohio 45202 TRANSFER AGENT U.S. Bancorp Fund Services, LLC 615 East Michigan Street, 2nd Floor Milwaukee, Wisconsin 53202 1-800-576-8229 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers, LLP 1177 Avenue of the Americas New York, New York 10036 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 55 Second Street, 24th Floor San Francisco, California 94105 This report is intended for the shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. For a current prospectus please call 1-800-576-8229. Past performance results shown in this report should not be considered a representation of future performance. The investment return and principal value of an investment 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.