N-30D 1 sym-a.txt (SYM FINANCIAL CORPORATION LOGO) SYM SELECT GROWTH FUND Annual Report December 31, 2002 February 20, 2003 To Our Fellow Shareholders: It's been a rough year for growth oriented investors. For the 12 months ended Dec 31, 2002, the fund was down 28.48%. As the chart here shows it was a negative year for the S&P 500, the NASDAQ Composite, and the Lipper Multi-Cap Index also. Since Inception 1 year average (1/01) average annual total annual total Returns as of December 31, 2002 return return ------------------------------- -------------- --------------- SYM Select Growth Fund -28.48% -18.62% S&P 500 -22.10% -17.15% Lipper Multicap Growth Funds Index -29.82% -27.53% NASDAQ Composite -31.53% -26.48% Growth stocks were out of favor in 2002. And generally the larger the company the more damage that occurred to the stock prices of these growth companies as investors sought refuge in value oriented stocks, bonds, real estate, or cash. The bear market in stocks continues. And early into 2003 we have the geopolitical concerns surrounding the outcome of our potential war with IRAQ. This bear market will certainly be remembered as one of the biggest declines in history. The NASDAQ Composite peaked at 5000 in March of 2000 and is down over 70% from that high. The S&P 500 is down roughly 50% from its high in 2000. The question in front of investors now is whether the experience of these past 12 months and the two years that preceded 2002 was just a very nasty correction that should be bought or perhaps a prelude to something more severe that will lead to more market declines. We continue to be cautious. While the intent of the fund is to be fully invested in growth stocks in normal times, we have felt that some short term alternative strategies such as holding cash at times or trading the short term ups and downs of this bear market is the prudent approach to this turbulent market. We are finding growth opportunities in the gold mining industry as gold itself looks to be emerging from a 20 year bear market. Technology companies that defined the late 90's bull market have proved to be cyclical like any other industry. Yet their current valuations are still expensive relative to their growth prospects in our opinion. In the fund we have generally avoided most technology names, other than as short term trades, 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. Longer term we see significant growth opportunities in biotechnology. 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 1000. Sixteen years later, in 1982, the Dow was still under 1000. One conclusion we have reached is that the markets in the future may be more "buy and sell" versus "buy and hold". As a result we are currently limiting our 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 opportunities for short term gains. Many commentators have argued that the depth of the recent declines can only lead to a bull market. To a certain extent we believe that is true as the current bear market of 2000 to 2002 has now exceeded the duration of the bear market during the Depression but not the depth of the decline. We continue to feel that long term appreciation will come from new leadership. The likelihood of a resumption of the PC/telecom led technology rally is unlikely. That means we may be exposed to a transition type of market that slowly moves from the old leadership to new leadership that will only be defined in hindsight. As advisors to the fund we are looking over the horizon to new ideas in healthcare, biotechnology, energy, etc for long term opportunities for growth. We believe that further downside risk is possible but we are not going to attempt to profit from a significant decline in the market. The year ahead of us will likely be very volatile as the old leadership gives way to the new leadership. While it impossible to determine the start of the next bull market we do know that when it arrives it may likely be a big move and it may not be recognized as the start of a bull market until it has already happened. They do not ring a bell at the bottom. As long term growth investors we accept the short term transition and the associated volatility as part of the process of cleansing out the old growth companies and making room for new growth companies that may define the next bull market. Many of these potential new leaders that we have begun to initiate positions in are not household names_yet. Keep in mind that in 1970, four years after the 1966 top in the stock market Wal-Mart had just 18 stores and annual sales of 44 million. Opportunities exist for growth fund investors but patience is required as the larger market sorts out all the issues and remnants of the last bull market. 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 initial investment. The S&P 500, NASDAQ Composite, Dow Jones Industrial Average and Lipper Multi-Cap Indices are unmanaged indices commonly used to measure performance of U.S. Stocks. One cannot invest directly in an index. As of 12/31/02, the fund's top 10 holdings were: Newmont Mining Corporation (5.09%), Cendant Corporation (3.67%), Wal Mart Stores, Inc. (3.54%), Wells Fargo & Company (3.29%), Goldcorp, Inc. (2.68%), Target Corporation (2.63%), Cephalon, Inc. (2.56%), Fleetwood Enterprises, Inc. (2.48%), Johnson & Johnson (2.45%), Gold Fields Ltd (2.45%). Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Must be preceded or accompanied by a prospectus. Please read it carefully before investing. Mutual fund investing involves risk. Principal loss is possible. Quasar Distributors, LLC, Distributor. 02/03 Comparison of the change in value of a $10,000 investment in the SYM Select Growth Fund versus the Lipper Multi-Cap Growth Fund Index Date SYM Select Growth Fund Lipper Multi-Cap Growth Funds Index ---- ---------------------- ----------------------------------- 1/2/2001 $10,000 $10,000 3/31/2001 $9,700 $7,776 6/30/2001 $10,450 $8,524 9/30/2001 $8,640 $6,273 12/31/2001 $9,270 $7,484 3/31/2002 $8,910 $7,228 6/30/2002 $7,540 $5,978 9/30/2002 $6,410 $4,959 12/31/2002 $6,630 $5,253 Past performance is not predictive of future performance. Share value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original investment. The returns shown do not reflect the deduction of taxes a shareholder would pay on fund distributions or the redemption of fund shares. The Lipper Multi-Cap Growth Fund Index is comprised of funds that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Annualized Return Average Annual Total Return One Year Return Since Inception --------------------------- --------------- ----------------- SYM Select Growth Fund (28.48)% (18.62)% Lipper Multi-Cap Growth Funds Index (29.82)% (27.53)% SCHEDULE OF INVESTMENTS at December 31, 2002 SHARES MARKET VALUE ------ ------------ COMMON STOCKS: 83.78% BANKS: 8.22% 20,000 Huntington Bancshares, Inc. $ 374,200 15,000 Lakeland Financial Corp. 351,750 10,000 State Street Corp. 390,000 15,000 Synovus Financial Corp. 291,000 20,000 Wells Fargo & Co. 937,400 ----------- 2,344,350 ----------- BIOTECHNOLOGY: 8.25% 10,000 Affymetrix, Inc.* 228,900 15,000 Cephalon, Inc.* 730,020 7,000 Charles River Laboratories International, Inc.* 269,360 8,000 CTI Molecular Imaging, Inc.* 197,280 60,000 Human Genome Sciences, Inc.* 528,600 50,000 Millennium Pharmaceuticals, Inc.* 397,000 ----------- 2,351,160 ----------- BUILDING - RESIDENTIAL/COMMERCIAL: 2.48% 90,000 Fleetwood Enterprises, Inc.* 706,500 ----------- COMMERCIAL SERVICES: 3.68% 100,000 Cendant Corp.* 1,048,000 ----------- COMPUTERS - INTEGRATED SYSTEMS: 1.98% 65,000 Brocade Communications Systems, Inc.* 269,100 95,000 Sun Microsystems, Inc.* 295,450 ----------- 564,550 ----------- CONSTRUCTION: 0.23% 15,000 Berger Holdings, Ltd.* 65,100 ----------- ELECTRIC SERVICES: 1.05% 15,000 NiSource, Inc. 300,000 ----------- FINANCE COMPANIES: 0.78% 8,000 John Hancock Financial Services, Inc. 223,200 ----------- HEALTHCARE - SERVICES: 3.76% 20,000 Health Management Associates, Inc. - Class A 358,000 80,000 Hooper Holmes, Inc. 491,200 7,000 Lincare Holdings, Inc.* 221,340 ----------- 1,070,540 ----------- MACHINERY - CONSTRUCTION & MINING: 2.41% 15,000 Caterpillar, Inc. 685,800 ----------- MANUFACTURING - DIVERSIFIED: 2.55% 20,000 General Electric Co. 487,000 10,000 Honeywell International, Inc. 240,000 ----------- 727,000 ----------- MEDIA: 2.98% 40,000 AOL Time Warner, Inc.* 524,000 20,000 The Walt Disney Co. 326,200 ----------- 850,200 ----------- METALS - MINERAL EXPLORATION: 16.08% 40,000 Freeport - McMoRan Copper & Gold, Inc. - Class B* 671,200 20,000 Glamis Gold Ltd.* 226,800 60,000 Goldcorp, Inc. 763,200 50,000 Gold Fields Ltd, ADR 698,000 35,000 Meridian Gold, Inc.* 617,050 50,000 Newmont Mining Corp. 1,451,500 20,000 Pan American Silver Corp.* 156,800 ----------- 4,584,550 ----------- OIL AND GAS PRODUCERS: 2.57% 30,000 El Paso Corp. 208,800 15,000 Exxon Mobil Corp. 524,100 ----------- 732,900 ----------- OIL - EXPLORATION & PRODUCTION: 2.29% 10,000 Ocean Energy, Inc. 199,700 20,000 Rowan Companies, Inc. 454,000 ----------- 653,700 ----------- PHARMACEUTICALS: 5.34% 15,000 American Pharmaceutical Partners, Inc.* 267,000 20,000 Bristol - Myers Squibb Co. 463,000 5,000 Eon Labs, Inc.* 94,550 13,000 Johnson & Johnson 698,230 ----------- 1,522,780 ----------- RADIO: 0.94% 100,000 XM Satellite Radio Holdings, Inc.* 269,000 ----------- REAL ESTATE INVESTMENT TRUSTS: 1.41% 20,000 Thornburg Mortgage, Inc. 402,000 ----------- RETAIL: 8.88% 20,000 Blue Rhino Corp.* 347,800 8,000 Costco Wholesale Corp.* 224,480 20,000 Galyan's Trading Co.* 200,000 25,000 Target Corp. 750,000 20,000 Wal-Mart Stores, Inc. 1,010,200 ----------- 2,532,480 ----------- RETAIL - RESTAURANTS: 0.68% 25,000 Quality Dining, Inc.* 73,000 5,000 Yum! Brands, Inc.* 121,100 ----------- 194,100 ----------- SEMICONDUCTORS: 3.52% 30,000 International Rectifier Corp.* 553,800 30,000 National Semiconductor Corp.* 450,300 ----------- 1,004,100 ----------- TELECOMMUNICATIONS - EQUIPMENT: 2.75% 50,000 Corning, Inc.* 165,500 250,000 JDS Uniphase Corp.* 617,500 ----------- 783,000 ----------- TELECOMMUNICATIONS - INTEGRATED: 0.95% 10,000 SBC Communications, Inc. 271,100 ----------- TOTAL COMMON STOCKS (Cost $25,660,834) 23,886,110 ----------- EXCHANGE - TRADED FUNDS: 7.37% 10,000 DIAMONDS Trust, Series I 835,100 10,000 SPDR Trust Series I 882,300 20,000 Utilities Select Sector SPDR 383,000 ----------- TOTAL EXCHANGE - TRADED FUNDS (Cost $2,008,485) 2,100,400 ----------- CONTRACTS --------- CALL OPTIONS PURCHASED: 0.01% CAPITAL ONE FINANCIAL CORP. 50 Expiration January 2003, Exercise Price $35 2,000 ----------- TOTAL CALL OPTIONS PURCHASED (Cost $2,350) 2,000 ----------- SHARES ------ SHORT-TERM INVESTMENTS: 17.55% 5,004,254 Federated Cash Trust Treasury Money Market (Cost $5,004,254) 5,004,254 ----------- TOTAL SHORT-TERM INVESTMENTS (Cost $5,004,254) 5,004,254 ----------- TOTAL INVESTMENTS IN SECURITIES (Cost $32,675,923): 108.71% 30,992,764 Liabilities in Excess of Other Assets : (8.71%) (2,483,399) ----------- NET ASSETS: 100.00% $28,509,365 ----------- ----------- SHARES ------ SECURITIES SOLD SHORT: (3.28%) 6,000 ADTRAN, Inc.* 197,400 5,000 C.R. Bard, Inc. 290,000 5,000 Novastar Financial, Inc. 155,150 7,000 Patterson - UTI Energy, Inc.* 211,190 2,000 Symantec Corp.* 81,020 ----------- TOTAL SECURITIES SOLD SHORT (Proceeds $946,527) $ 934,760 ----------- ----------- * Non-income producing security. ADR - American Depository Receipt. See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES at December 31, 2002 ASSETS Investments, at value (identified cost $ 32,675,923) $30,992,764 Receivables: Due from broker 1,766,259 Dividends 38,880 Other assets 10,627 ----------- Total Assets 32,808,530 ----------- LIABILITIES Securities sold short, at value (Proceeds of $946,527) 934,760 Payables: Securities purchased 3,279,933 Fund shares redeemed 15,319 Due to investment advisor 27,762 Due to administrator 4,984 Accrued expenses and other liabilities 36,407 ----------- Total Liabilities 4,299,165 ----------- NET ASSETS $28,509,365 ----------- ----------- COMPONENTS OF NET ASSETS Paid-in capital $44,576,621 Accumulated net realized loss on investments (14,395,864) Net unrealized (depreciation)/appreciation on: Investments (1,683,159) Short positions 11,767 ----------- Net assets $28,509,365 ----------- ----------- NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE ($28,509,365/4,299,642 shares outstanding; unlimited number of shares authorized without par value) $6.63 ----------- ----------- See accompanying Notes to Financial Statements. STATEMENT OF OPERATIONS for the year ended December 31, 2002 INVESTMENT INCOME Income Dividend Income (Net of withholding tax of $720) $ 473,598 Interest Income 11,845 ------------ Total investment income 485,443 ------------ Expenses Advisory fees (Note 3) 362,725 Administration fees (Note 3) 72,545 Fund accounting fees 29,799 Registration fees 21,255 Professional fees 19,622 Transfer agent fees 18,576 Custody fees 15,994 Shareholder Reporting 6,099 Trustee fees 5,601 Miscellaneous 5,500 Insurance fees 1,518 ------------ Total expenses before waiver and reimbursement from Advisor of expenses, interest expense, and dividends on short positions 559,234 Less: waiver of expenses and reimbursement from Advisor (Note 3) (14,966) ------------ Net expenses before interest expense and dividends on short positions 544,268 Interest expense 311 Dividends on short positions 14,049 ------------ Total expenses 558,628 ------------ NET INVESTMENT LOSS (73,185) ------------ REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized (loss)/gain on: Investments (10,165,338) Short positions 20,566 ------------ (10,144,772) ------------ Change in unrealized (depreciation)/appreciation on: Investments (2,740,590) Short positions 56,056 ------------ (2,684,534) ------------ Net realized and unrealized loss on investments (12,829,306) ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(12,902,491) ------------ ------------ See accompanying Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS January 2, 2001* Year Ended through December 31, 2002 December 31, 2001 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment loss $ (73,185) $ (78,518) Net realized loss on investments sold and securities sold short (10,144,772) (4,251,092) Change in unrealized (depreciation) appreciation on investments and short positions (2,684,534) 1,013,142 ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (12,902,491) (3,316,468) CAPITAL SHARE TRANSACTIONS Net (decrease)/increase in net assets derived from net change in outstanding shares (a) (1,817,615) 46,545,939 ----------- ----------- TOTAL (DECREASE) INCREASE IN NET ASSETS (14,720,106) 43,229,471 NET ASSETS Beginning of period 43,229,471 -- ----------- ----------- End of period $28,509,365 $43,229,471 ----------- ----------- ----------- -----------
(a) A summary of share transactions is as follows: Year January 2, 2001* Ended through December 31, 2002 December 31, 2001 ------------------------- ------------------------- Shares Paid in Capital Shares Paid in Capital ------ --------------- ------ --------------- Shares sold 1,465,603 $11,445,318 4,870,787 $48,432,776 Shares redeemed (1,831,311) (13,262,933) (205,437) (1,886,837) ---------- ------------ --------- ----------- Net (decrease)/increase (365,708) $(1,817,615) 4,665,350 $46,545,939 ---------- ------------ --------- ----------- ---------- ------------ --------- -----------
* Commencement of operations. See accompanying Notes to Financial Statements. FINANCIAL HIGHLIGHTS For a capital share outstanding throughout the period January 2, 2001* Year Ended through December 31, 2002 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 (2.62) (0.71) ------ ------ Total from investment operations (2.64) (0.73) ------ ------ Net asset value, end of period $ 6.63 $ 9.27 ------ ------ ------ ------ TOTAL RETURN (28.48%) (7.30%)1 SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (millions) $28.5 $43.2 RATIO OF NET EXPENSES TO AVERAGE NET ASSETS: Before expense reimbursement and waivers 1.54% 1.80%2 After expense reimbursement and waivers 1.50%3 1.50%2, 3 RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS: Before expense reimbursement and waivers (0.24%) (0.62%)2 After expense reimbursement and waivers (0.20%)4 (0.32%)2, 4 Portfolio turnover rate 291% 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 year ended December 31, 2002 and the period of January 2, 2001 through December 31, 2001 were 1.54% 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 year ended December 31, 2002 and the period of January 2, 2001 through December 31, 2001 were (0.16%) and (0.29%), respectively. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS at December 31, 2002 NOTE 1 - ORGANIZATION The SYM Select Growth Fund (the "Fund") is a series of shares of beneficial interest of Advisors Series Trust (the "Trust") which is registered under the Investment Company Act of 1940 (the "1940 Act") as a diversified open-end management investment company. The Fund commenced operations on 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. Short-term investments are stated at cost, which when combined with accrued interest 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. At December 31, 2002, the Fund had capital loss carryovers of $3,443,516 and $8,314,514, which expire in 2009 and 2010, respectively, available to offset future gains if any. The Fund had net realized capital losses of $597,746 during the period November 1, 2002 through December 31, 2002, which are treated for federal income tax purposes as arising during the Fund's tax year ending December 31, 2003. The "post-October" losses may be utilized in future years to offset net realized capital 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 differ from accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their federal tax treatment. D. 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. Securities Sold Short. 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 year ended December 31, 2002, the Fund incurred $362,725 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%. Any such reductions made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the 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. For the year ended, December 31, 2002, the Advisor absorbed expenses of $14,966. 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 $89,242 at December 31, 2002. Under the expense limitation provision of the Investment Advisory Agreement, reimbursements made by the Advisor in the Fund's first three years of operation remain eligible for reimbursement as follows: reimbursements incurred in the first and second years of the Fund's operation are eligible for reimbursement through the end of the Fund's sixth fiscal year; reimbursements made in the third year of operation are eligible for reimbursement through the end of the seventh fiscal year. Any such reimbursement is also contingent upon Board of Trustees review and approval prior to the time the reimbursement is initiated. Cumulative expenses subject to recapture expire as follows: Year Amount ---- ------ 2007 $89,242 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; 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 year ended December 31, 2002, the Fund incurred $72,545 in administration fees. U.S. Bancorp Fund Services, LLC provides fund accounting and transfer agency services for the Fund. Quasar Distributors, LLC (the "Distributor") acts as the Fund's principal underwriter in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Administrator. Certain officers and trustees of the Trust are also officers of the Administrator and the Distributor. NOTE 4 - PURCHASES AND SALES OF SECURITIES During the year ended December 31, 2002, the aggregate purchases and sales of securities (excluding short-term investments and short sales of securities) were: Purchases Sales --------- ----- Long Transactions $94,386,789 $91,736,339 Short Sale Transactions $19,305,143 $17,624,225 At December 31, 2002, gross unrealized appreciation and depreciation of investments for tax purposes were as follows: Appreciation $ 1,175,766 Depreciation (4,899,013) ----------- Net unrealized depreciation on investments $(3,723,247) ----------- ----------- At December 31, 2002, the cost of investments for federal income tax purposes was $34,716,011. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS TO THE SHAREHOLDERS OF SYM SELECT GROWTH FUND THE BOARD OF TRUSTEES OF ADVISORS SERIES TRUST We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of SYM Select Growth Fund, a series of Advisors Series Trust, as of December 31, 2002, and the related statement of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2002, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of SYM Select Growth Fund as of December 31, 2002, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. TAIT, WELLER & BAKER PHILADELPHIA, PENNSYLVANIA JANUARY 25, 2003 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 the advisor. INDEPENDENT TRUSTEES -------------------- # OF FUNDS IN TERM OF PRINCIPAL COMPLEX OTHER POSITION OFFICE AND OCCUPATION OVERSEEN DIRECTORSHIPS HELD WITH LENGTH OF DURING PAST BY HELD BY NAME, AGE AND ADDRESS THE TRUST TIME SERVED FIVE YEARS TRUSTEE TRUSTEE --------------------- --------- ----------- ----------- -------- ------------- Walter E. Auch Trustee Indefinite Management 16 Nicholas- (Born 1921) Term Consultant Applegate 2020 E. Financial Way Funds, Glendora, CA 91741 Since 1997 Salomon Smith Barney Funds, Bayan Strategic Realty Trust, Legend Properties, Pimco Advisors LLP, and Senele Group James Clayburn LaForce Trustee Indefinite Dean Emeritus, 16 The Payden (Born 1927) Term John E. Anderson & Rygel 2020 E. Financial Way Graduate School of Investment Glendora, CA 91741 Since Management, Group, PIC May 2002 University of Investment California, Trust, PIC Los Angeles Small Cap Portfolio, PIC Balanced Portfolio, PIC Growth Portfolio, PIC Mid Cap Portfolio, Provident Investment Counsel Institutional Money Market Fund, Black Rock Funds, Jacobs Engineering, Timken Co., Concervex Donald E. O'Connor Trustee Indefinite Financial Consultant; 16 The Parnassus (Born 1936) Term formerly Executive Fund; 2020 E. Financial Way Vice President and The Parnassus Glendora, CA 91741 Since 1997 Chief Operating Income Fund; officer of ICI Mutual The Forward Insurance Company Funds (until January, 1997); Vice President, Operations, Investment Company Institute (until July , 1993). George J. Rebhan Trustee Indefinite Retired; formerly 16 E*Trade (Born 1934) Term President, Hotchkis Funds 2020 E. Financial Way and Wiley Funds Glendora, CA 91741 Since (mutual funds) May 2002 from 1985 to 1993. George T. Wofford III Trustee Indefinite Senior Vice 16 Not (Born 1939) Term President, Information Applicable 2020 E. Financial Way Services, Federal Glendora, CA 91741 Since 1997 Home Loan Bank of San Francisco.
INTERESTED TRUSTEES AND OFFICERS -------------------------------- # OF FUNDS IN COMPLEX OVERSEEN OTHER TERM OF PRINCIPAL BY DIRECTORSHIPS POSITION OFFICE AND OCCUPATION TRUSTEE HELD BY HELD WITH LENGTH OF DURING PAST OR TRUSTEE NAME, AGE AND ADDRESS THE TRUST TIME SERVED FIVE YEARS OFFICER OR OFFICER --------------------- --------- ----------- ----------- -------- ------------- Eric M. Banhazl Trustee & Indefinite Senior Vice 16 None (Born 1957) President Term President, U.S. 2020 E. Financial Way Bancorp Fund Glendora, CA 91741 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). John S. Wagner Treasurer Indefinite Assistant Vice 16 None (Born 1965) Term President Compliance 615 E. Michigan Street and Administration, Milwaukee, WI 53202 Since U.S. Bancorp Fund September Services, LLC 2002 since June 1999. Chad E. Fickett Secretary Indefinite Compliance 16 None (Born 1973) Term Administrator, U.S. 615 E. Michigan Street Bancorp Fund Milwaukee, WI 53202 Since March Services, LLC since 2002 July 2000.
ADVISOR SYM Financial 100 Capital Drive Warsaw, Indiana 46581 DISTRIBUTOR Quasar Distributors, LLC 615 East Michigan Street 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 Milwaukee, Wisconsin 53202 1-866-205-0523 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 55 Second Street, 24th Floor San Francisco, California 94105 INDEPENDENT PUBLIC ACCOUNTANTS Tait, Weller & Baker 1818 Market Street, Suite 2400 Philadelphia, Pennsylvania 19103-3638 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.