N-30D 1 sym-se.txt (SYM FINANCIAL CORPORATION LOGO) SYM SELECT GROWTH FUND Semi-Annual Report June 30, 2002 August 20, 2002 To Our Fellow Shareholders: For the six months ended June 30, 2002 your fund was down 18.66%. This compares favorably with the S&P 500, the NASDAQ composite, and the Lipper Multi-cap index. Six months 1 year Since Inception average average (1/01) average cumulative annual annual Returns as of June 30, 2002 total return total return total return --------------------------- ------------ ------------ ------------ SYM Select Growth Fund -18.66% -27.85% -17.26% S&P 500 -13.16% -17.99% -16.34% Lipper Multi-Cap Index -20.13% -29.88% -29.04% NASDAQ Composite -24.98% -32.30% -29.47% The unwinding of the technology rally of 1997 to 2000 continues. This bear market will certainly be remembered as one of the biggest declines in history. The NASDAQ composite peaked at 5,000 in March of 2000 and currently is down over 70% from that high. The question in front of investors now is whether the experience of these six months is a correction that should be bought or perhaps a prelude to something more severe that could lead to more market declines. We continue to be cautious. As of June 30, 2002, your fund was holding over 15% in cash and over 7% in gold mining companies. While the intent of the fund is to be fully invested in growth stocks, we felt that holding cash was more prudent in this turbulent market. The gold mining industry and gold itself looks to be emerging from a 20 year bear market. As a growth fund we find the fundamentals of the gold mining industry to be as compelling, if not more compelling, than the technology companies that are down significantly from their highs. Technology companies that defined the late 90's bull market have proved to be cyclical like any other industry. Yet their valuations are still expensive relative to their growth prospects in our opinion. In your fund we have generally avoided most technology names as we wait for better valuations. We believe there are far better growth opportunities in more traditional growth oriented companies in the healthcare, retail, and services sectors of our economy. In the long term we see significant growth opportunities in biotechnology as we believe biotechnology will likely be the key leadership in the resumption of any bull market. If we look back at history we find that markets after a major bull market typically trade sideways for many years. The last major bull market ended in 1966 when the Dow Jones Industrial Average peaked at 1,000. Sixteen years later in 1982 the Dow was still under 1,000. One prediction we have developed is that the markets in the future may be more "buy and sell" than "buy and hold". As a result we are currently limiting are long term positions to 65% of the portfolio. The remaining 35% of the portfolio will be actively traded to take advantage of a sideways, trend-less market that offers potential opportunities for short-term gains of 20% or more. Many commentators have argued that the depth of the recent declines can only lead to a bull market. If one were jumping out of a plane, remember that it is more important to know where the ground is than to be too concerned as to what level one jumped from. The fundamentals suggest to us that we have not yet hit the ground and continued caution is warranted. Thank you for your confidence in SYM Financial Corporation. Sincerely, /s/Neil M. Donahoe Neil M. Donahoe CFP Vice President, Investment Management SYM Financial Corporation Past performance is not indicative of future performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. The S&P 500, NASDAQ Composite, and Lipper Multi-Cap are unmanaged indexes commonly used to measure performance of U.S. Stocks. Indexes are not available for direct investment and do not incur expenses. Fund sector allocations and portfolio holdings are as of 6/30/02, subject to change and are not recommendations to buy or sell any security. The information contained in this report is authorized for use when proceeded or accompanied by a prospectus for the SYM Select Growth Fund, which includes more complete information on the charges and expenses related to an ongoing investment in the Fund. Please read the prospectus carefully before you invest or send money. Quasar Distributors, LLC, distributor 9/02 SCHEDULE OF INVESTMENTS at June 30, 2002 (Unaudited) SHARES MARKET VALUE ------ ------------ COMMON STOCKS: 79.5% BANKS: 6.3% 5,000 Commerce Bancorp, Inc. $ 221,000 20,000 Huntington Bancshares, Inc. 388,400 17,800 Lakeland Financial Corp. 513,352 25,000 Wells Fargo & Co. 1,251,500 ----------- 2,374,252 ----------- BIOTECHNOLOGY: 6.4% 80,000 Human Genome Sciences, Inc.* 1,072,000 110,000 Millennium Pharmaceuticals, Inc.* 1,336,500 ----------- 2,408,500 ----------- BUILDING - RESIDENTIAL/COMMERCIAL: 3.3% 40,000 Fleetwood Enterprises, Inc.* 348,000 15,000 Pulte Homes, Inc. 862,200 5,500 Oakwood Homes Corp.* 27,445 ----------- 1,237,645 ----------- COMMERCIAL SERVICES: 6.0% 40,000 Caremark Rx, Inc.* 660,000 100,000 Cendant Corp.* 1,588,000 ----------- 2,248,000 ----------- CONSTRUCTION: 0.2% 15,000 Berger Holdings Ltd.* 77,250 ----------- DRUG DETECTION SYSTEMS: 0.3% 40,000 LifePoint, Inc.* 115,200 ----------- ELECTRIC SERVICES: 4.2% 40,000 Duke Energy Corp. 1,244,000 15,000 NiSource, Inc. 327,450 ----------- 1,571,450 ----------- ENGINES: 2.6% 30,000 Cummins, Inc. 993,000 ----------- FOOD: 1.0% 10,000 Kellogg Co. 358,600 ----------- HEALTHCARE - SERVICES: 2.8% 20,000 Health Management Associates, Inc. - Class A* 403,000 80,000 Hooper Holmes, Inc. 640,000 ----------- 1,043,000 ----------- HOME FURNISHINGS: 1.9% 20,000 Newell Rubbermaid, Inc. 701,200 ----------- INSURANCE: 1.7% 20,000 AFLAC, Inc. 640,000 ----------- INTERNET SOFTWARE: 0.5% 27,700 Quovadx, Inc.* 173,956 ----------- MACHINERY - CONSTRUCTION & MINING: 2.0% 15,000 Caterpillar, Inc. 734,250 ----------- MANUFACTURING - DIVERSIFIED: 1.5% 20,000 General Electric Co. 581,000 ----------- MEDIA: 1.0% 20,000 The Walt Disney Co. 378,000 ----------- MEDICAL SERVICE & SUPPLIES: 4.2% 35,000 Biomet, Inc. 949,200 20,000 Mylan Laboratories, Inc. 627,000 ----------- 1,576,200 ----------- METALS - MINERAL EXPLORATION: 7.3% 20,000 Freeport-McMoRan Copper & Gold, Inc.* 357,000 30,000 Gold Fields Ltd., ADR 336,600 20,000 Meridian Gold, Inc.* 321,000 60,000 Newmont Mining Corp. 1,579,800 20,000 Pan American Silver Corp.* 149,400 ----------- 2,743,800 ----------- NETWORKING PRODUCTS: 0.1% 30,000 Lantronix, Inc.* 25,500 ----------- OIL & GAS PRODUCERS: 1.6% 15,000 Exxon Mobil Corp. 613,800 ----------- OIL - EXPLORATION & PRODUCTION: 2.3% 40,000 Rowan Companies, Inc.* 858,000 ----------- PHARMACEUTICALS: 3.1% 45,000 Bristol-Myers Squibb Co. 1,156,500 ----------- RADIO: 2.3% 120,000 XM Satellite Radio Holdings, Inc.* 870,000 ----------- REAL ESTATE INVESTMENT TRUSTS: 1.0% 20,000 Thornburg Mortgage, Inc. 393,600 ----------- RETAIL: 6.5% 4,500 Best Buy Co., Inc.* 163,350 15,000 Dillard's, Inc. 394,350 10,000 Galyan's Trading Co.* 228,300 15,000 Target Corp. 571,500 20,000 Wal-Mart Stores, Inc. 1,100,200 ----------- 2,457,700 ----------- RETAIL - RESTAURANTS: 1.8% 25,000 CKE Restaurants, Inc.* 284,500 25,000 Quality Dining, Inc.* 106,225 10,000 Yum! Brands, Inc.* 292,500 ----------- 683,225 ----------- SEMICONDUCTORS: 1.9% 25,000 International Rectifier Corp.* 728,750 ----------- SOFTWARE: 0.7% 10,000 Advent Software, Inc.* 257,000 ----------- TELECOMMUNICATIONS - EQUIPMENT: 0.9% 50,000 Corning, Inc.* 177,500 60,000 JDS Uniphase Corp.* 160,200 ----------- 337,700 ----------- TELECOMMUNICATIONS - INTEGRATED: 4.1% 50,000 SBC Communications, Inc. 1,525,000 ----------- TOTAL COMMON STOCKS (cost $34,350,995) $29,862,078 ----------- EXCHANGE-TRADED FUNDS: 3.3% 5,000 iShares Russell 2000 Index Fund 453,250 50,000 Technology Select Sector SPDR Fund 791,000 ----------- TOTAL EXCHANGE-TRADED FUNDS (cost $1,490,250) $ 1,244,250 ----------- PRINCIPAL AMOUNT --------- SHORT-TERM INVESTMENT: 15.4% MONEY MARKET INVESTMENT: 5,793,257 Federated Cash Trust Series II - Treasury Fund (cost $5,793,257) 5,793,257 ----------- TOTAL INVESTMENTS IN SECURITIES (cost $41,634,502): 98.2% 36,899,585 Other Assets less Liabilities: 1.8% 666,710 ----------- NET ASSETS: 100.0% $37,566,295 ----------- ----------- * Non-income producing security. ADR - American Depository Receipt. See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES at June 30, 2002 (Unaudited) ASSETS Investments, at market value (identified cost $ 41,634,502) $36,899,585 Cash 500 Receivable for Fund shares sold 1,713,471 Dividends and interest receivable 144,472 Other assets 12,118 ----------- Total Assets 38,770,146 ----------- LIABILITIES Payable for Securities purchased 985,057 Payable for Fund shares redeemed 151,246 Payable to Investment Advisor 31,636 Payable for administration fees 6,915 Accrued expenses and other liabilities 28,997 ----------- Total Liabilities 1,203,851 ----------- NET ASSETS $37,566,295 ----------- ----------- COMPONENTS OF NET ASSETS Capital stock $49,369,579 Accumulated net realized loss on investments. (7,068,367) Net unrealized appreciation (depreciation) on investments: (4,734,917) ----------- Total Net Assets $37,566,295 ----------- ----------- Shares outstanding (unlimited number of shares authorized, par value $0.01) 4,982,910 ----------- ----------- Net Asset Value, Redemption Price and Offering Price Per Share $7.54 ----- ----- See accompanying Notes to Financial Statements. STATEMENT OF OPERATIONS for the six months ended June 30, 2002 (Unaudited) INVESTMENT INCOME Income Dividends (Net of withholding tax of $180) $ 229,891 Interest 7,774 ----------- Total investment income 237,665 ----------- Expenses Advisory fees (Note 3) 212,647 Administration fees (Note 3) 42,529 Registration fees 15,163 Fund accounting fees 14,380 Professional fees 12,639 Transfer agent fees 10,093 Custody fees 7,432 Trustee fees 3,080 Shareholder Reporting 1,834 Miscellaneous 1,488 Insurance fees 753 ----------- Total expenses before waiver and reimbursement from Advisor of expenses, interest expense, and dividends on short positions 322,038 Less: waiver of expenses and reimbursement from Advisor (2,887) ----------- Net expenses before interest expense and dividends on short positions 319,151 Interest expense 311 Dividends on short positions 2,553 ----------- Total expenses 322,015 ----------- NET INVESTMENT LOSS (84,350) ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized loss on: Investments (2,509,014) Short positions (308,261) ----------- (2,817,275) ----------- Change in unrealized (depreciation) appreciation on: Investments (5,792,348) Short positions 44,289 ----------- (5,748,059) ----------- Net realized and unrealized loss on investments (8,565,334) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(8,649,684) ----------- ----------- See accompanying Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS Six Months Ended January 2, 2001* June 30, 2002 through (Unaudited) December 31, 2001 ---------- ----------------- OPERATIONS Net investment loss $ (84,350) $ (78,518) Net realized loss on investments sold and securities sold short (2,817,275) (4,251,092) Change in unrealized (depreciation) appreciation on investments and short positions (5,748,059) 1,013,142 ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (8,649,684) (3,316,468) ----------- ----------- CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 7,288,875 48,432,776 Cost of shares redeemed (4,302,367) (1,886,837) ----------- ----------- Net increase in net assets resulting from capital share transactions 2,986,508 46,545,939 ----------- ----------- TOTAL (DECREASE) INCREASE IN NET ASSETS (5,663,176) 43,229,471 ----------- ----------- NET ASSETS Beginning of period 43,229,471 -- ----------- ----------- End of period $37,566,295 $43,229,471 ----------- ----------- ----------- ----------- CHANGES IN SHARES OUTSTANDING Shares sold 834,710 4,870,787 Shares redeemed (517,150) (205,437) ----------- ----------- Net increase in shares outstanding 317,560 4,665,350 ----------- ----------- ----------- ----------- * Commencement of operations. See accompanying Notes to Financial Statements. FINANCIAL HIGHLIGHTS FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD Six Months Ended January 2, 2001* June 30, 2002 through (Unaudited) December 31, 2001 ----------- ----------------- Net asset value, beginning of period $ 9.27 $10.00 ------ ------ LOSS FROM INVESTMENT OPERATIONS: Net investment loss (0.02) (0.02) Net realized and unrealized loss on investments (1.71) (0.71) ------ ------ Total from investment operations (1.73) (0.73) ------ ------ Net asset value, end of period $ 7.54 $9.27 ------ ------ ------ ------ TOTAL RETURN (18.66%)1 (7.30%)1 SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (millions) $37.6 $43.2 RATIO OF NET EXPENSES TO AVERAGE NET ASSETS: Before expense reimbursement and waivers 1.51%2 1.80%2 After expense reimbursement and waivers 1.50%2, 3 1.50%2, 3 RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS: Before expense reimbursement and waivers (0.41%)2 (0.62%)2 After expense reimbursement and waivers (0.40%)2, 4 (0.32%)2, 4 Portfolio turnover rate 161% 210%
* Commencement of operations. 1 Not annualized. 2 Annualized. 3 The annualized expense ratio excluded dividends on short positions. The ratio including interest expense and dividends on short positions for the six months ended June 30, 2002 and the period of January 2, 2001 through December 31, 2001 were 1.51% and 1.53%, respectively. 4 The net investment income ratio included dividends on short positions. The ratio excluding interest expense and dividends on short positions for the six months ended June 30, 2002 and the period of January 2, 2001 through December 31, 2001 were (0.39%) and (0.29%), respectively. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS at June 30, 2002 (Unaudited) NOTE 1 - ORGANIZATION The SYM Select Growth Fund (the "Fund") is a series of shares of beneficial interest of the Advisors Series Trust (the "Trust") which is registered under the Investment Company Act of 1940 (the "1940 Act") as a diversified open-end management investment company. The Fund commenced operations on January 2, 2001. The investment objective of the Fund is to seek long-term capital growth. The Fund seeks to achieve its objective by investing in the common stocks of domestic companies with the potential for growth. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America. A. Securities Valuation. Securities traded on a national exchange or Nasdaq are valued at the last reported sale price at the close of regular trading on the last business day of the period; securities traded on an exchange or Nasdaq for which there have been no sales, and other over-the-counter securities, are valued at the mean between the last reported bid and asked prices. Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by the Board of Trustees. Short-term investments are stated at cost which, when combined with accrued interest, approximates market value. U.S. Government securities with less than 60 days remaining to maturity when acquired by the Fund are valued on an amortized cost basis. U.S. Government securities with more than 60 days remaining to maturity are valued at their current market value (using the mean between the bid and asked price) until the 60th day prior to maturity, and are then valued at amortized cost based upon the value on such date unless the Board of Trustees determines during such 60 day period that amortized cost does not represent fair value. B. Federal Income Taxes. It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. At June 30, 2002, the Fund had capital loss carryovers of $3,425,764, which expires in 2009, available to offset future gains if any. The Fund had net realized capital losses of $807,576 during the period November 1, 2001 through December 31, 2001, which are treated for federal income tax purposes as arising during the Fund's tax year ending December 31, 2002. The "post-October" losses may be utilized in future years to offset net realized gains prior to distributing such gains to shareholders. C. Securities Transactions, Dividend Income and Distributions. Securities 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. E. Short Sales. The Fund may engage in short sale transactions. For financial statement purposes, an amount equal to the short sale proceeds is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the short position. Subsequent fluctuations in the market prices of securities sold, but not yet purchased, may require the Fund to purchase the securities at prices that may differ from the market value reflected in the Statement of Assets and Liabilities. The Fund is liable for any dividends payable on securities while those securities are in a short position. As collateral for its short positions, the Fund is required under the 1940 Act to maintain segregated assets consisting of cash, cash equivalents or liquid securities. These segregated assets are required to be adjusted daily to reflect changes in the value of the securities sold short. NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS SYM Financial Corporation (the "Advisor") provides the Fund with investment management services under an Investment Advisory Agreement (the "Agreement"). Under the Agreement the Advisor furnishes all investment advice, office space, facilities, and most of the personnel needed by the Fund. As compensation for its services, the Advisor receives a monthly fee at the annual rate of 1.00% of the Fund's average daily net assets. For the six months ended June 30, 2002, the Fund incurred $212,647 in advisory fees. The Fund is responsible for its own operating expenses. The Advisor has contractually agreed to limit the Fund's total operating expenses by reducing all or a portion of its fees and reimbursing the Fund's expenses, for a one year period, so that its ratio of expenses to average net assets will not exceed 1.50%. In the case of the Fund's initial period of operations any fee withheld or voluntarily reduced and/or any Fund expense absorbed by the Advisor pursuant to an agreed upon expense cap shall be reimbursed by the Fund to the Advisor, if so requested by the Advisor, anytime before the end of the fifth fiscal year following the year to which the fee waiver and/or expense absorption relates, provided the aggregate amount of the Fund's current operating expenses for such fiscal year does not exceed the applicable limitation on Fund expenses. For the six months ended June 30, 2002, the Advisor absorbed expenses of $2,887. The Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Cumulative expenses subject to recapture amount to $77,163 at June 30, 2002. Any such reimbursement is also contingent upon Board of Trustees review and approval prior to the time the reimbursement is initiated. U.S. Bancorp Fund Services, L.L.C. (the "Administrator") acts as the Fund's administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns; prepares reports and materials to be supplied to the trustees; monitors the activities of the Fund's custodian, transfer agent and accountant; coordinates the preparation and payment of Fund expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rates: Under $15 million $30,000 $15 to $50 million 0.20% of average daily net assets $50 to $100 million 0.15% of average daily net assets $100 to $150 million 0.10% of average daily net assets Over $150 million 0.05% of average daily net assets For the six months ended June 30, 2002, the Fund incurred $42,529 in administration fees. U.S. Bancorp Fund Services, L.L.C. provides fund accounting and transfer agency services for the Fund. Quasar Distributors, L.L.C. (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 and trustees of the Trust are also officers of the Administrator. NOTE 4 - PURCHASES AND SALES OF SECURITIES During the six months ended June 30, 2002, the aggregate purchases and sales of securities (excluding short-term investments and short sales of securities) were: Purchases Sales --------- ----- Long Transactions $61,084,717 $57,920,364 At June 30, 2002, gross unrealized appreciation and depreciation of investments for tax purposes were as follows: Appreciation $ 1,346,670 Depreciation (6,099,339) ----------- Net unrealized depreciation on investments $(4,752,669) ----------- ----------- At June 30, 2002, the cost of investments for federal income tax purposes was $41,652,254. RESULTS OF THE SPECIAL MEETING (UNAUDITED) A special meeting of the shareholders of the SYM Select Growth Fund, a series of Trust for Investment Managers, was held on June 6, 2002 for shareholders of record as of April 30, 2002. The shareholders of the Fund voted on whether to approve a proposal to reorganize the Fund into a newly formed series of Advisors Series Trust. The results of the vote at the shareholder meeting held June 6, 2002 were as follows: 1. To approve the proposed reorganization into Advisors Series Trust: For Against Withheld --- ------- -------- 3,113,691 4,638 22,865 ADVISOR SYM Financial 100 Capital Dr. Warsaw, Indiana 46581 DISTRIBUTOR Quasar Distributor, LLC 615 E. Michigan Street Milwaukee, Wisconsin 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street M/L 6118 Cincinnati, Ohio 45202 TRANSFER AGENT U.S. Bancorp Fund Services, LLC 615 E. Michigan Street Milwaukee, Wisconsin 53202 (866) 209-1963 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP 555 South Flower Street Los Angeles, California 90071 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. 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.