-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DNxI3cxqtiZKW+ZqGxLCOU0HU0ylhwsdCqUn/clG3tTAsslFD003El/c5l38l5fa 9AzE2H8J4thEeNKrCNgzTw== 0000898531-03-000276.txt : 20030709 0000898531-03-000276.hdr.sgml : 20030709 20030709164729 ACCESSION NUMBER: 0000898531-03-000276 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030709 EFFECTIVENESS DATE: 20030709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORS SERIES TRUST CENTRAL INDEX KEY: 0001027596 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07959 FILM NUMBER: 03780399 BUSINESS ADDRESS: STREET 1: U.S BANCORP FUND SERVICES, LLC STREET 2: 615 E MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4147655335 MAIL ADDRESS: STREET 1: 615 E MICHIGAN STREET STREET 2: SUITE 2 CITY: MILWAUKEE STATE: WI ZIP: 53202 N-CSR 1 namcef-ncsr.txt As filed with the Securities and Exchange Commission on July 9, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07959 --------- ADVISORS SERIES TRUST --------------------- (Exact name of registrant as specified in charter) 615 EAST MICHIGAN STREET MILWAUKEE, WI 53202 ------------------------ (Address of principal executive offices) (Zip code) ERIC M. BANHAZL --------------- ADVISORS SERIES TRUST --------------------- 2020 EAST FINANCIAL WAY, SUITE 100 GLENDORA, CA 91741 ------------------- (Name and address of agent for service) (414) 765-5344 -------------- Registrant's telephone number, including area code Date of fiscal year end: APRIL 30, 2003 -------------- Date of reporting period: APRIL 30, 2003 -------------- ITEM 1. REPORTS TO STOCKHOLDERS. - -------------------------------- (NATIONAL ASSET MANAGEMENT CORE EQUITY FUND LOGO) NATIONAL ASSET MANAGEMENT CORE EQUITY FUND ANNUAL REPORT FOR THE YEAR ENDED APRIL 30, 2003 May 28, 2003 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 by 2.12% over the six- month period ended April 30th. The S&P 500 Index, which is the Fund's benchmark, gained 4.48% over the same period. The recent gain in the Fund's value could not offset the pronounced market weakness during 2002's last eight months. Accordingly, the Fund's twelve-month return showed a decline of 18.26%. The S&P 500 declined by 13.31% over the same period. Since inception on June 2, 1999, the Fund's annualized return of -7.01% has slightly out-performed the S&P 500 Index which lost 7.18% annualized. The equity market continued to be highly volatile over the last six months. This isn't totally surprising given a seemingly unending stream of negative news with which we all had to cope. Geopolitical issues trumped fundamental economic news during much of the period. Investor anxiety leading up to the war with Iraq greatly overshadowed continuing steady improvement in U.S. corporate earnings. Following a fairly rare three consecutive calendar years of negative returns from the equity market, many investors had entered 2003 hoping for signs that the bear market might soon end. Then January and February both logged negative numbers and it seemed we were well on our way to a fourth year of negative results. However, just as U.S.-led military action in Iraq became inevitable, investors began to look ahead and a strong rally materialized. Starting on March 12, literally just days before commencement of the military campaign in Iraq, the S&P 500 moved up off recent cyclical lows and climbed steadily as the war news improved. By April 30th that Index had climbed 15% above the March low. Then as fighting in Iraq wound down, investor focus returned to economic issues just as first quarter earnings reports were being released. These reports documented accelerating profit growth amidst continuing modest U.S. economic recovery. Aggregate earnings for S&P 500 companies were approximately 13% higher than over the same period a year ago and the first quarter of 2003 was the sixth consecutive quarter of positive growth in U.S. gross domestic product, after adjustments for inflation. The Fund's Multiple Attribute philosophy continues to provide good diversification across three different types of stocks. The portfolio includes investments in stocks demonstrating earnings growth more rapid than that of the broad market's, stocks that currently sell at a relatively low ratio of price to earning per share, and stocks that pay an above average dividend yield. We currently have a slight emphasis in growth 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 continues to dominate portfolio activity due to the lack of any overwhelming evidence emerging from the macro economic environment that would favor a more thematic approach. Several economically sensitive stocks that are paying above average dividends were added during the period. The largest sector weighting continues to be in financial stocks, which comprise 24% of the portfolio. These stocks currently offer good value and are benefiting from the low interest rate environment. Technology stocks constitute the next largest weight composing 16% of the portfolio, a slight over weighting when compared to the S&P 500 Index. Our technology holdings are generally considered the market leaders in their respective industry segments and we feel should be among the first to recover when conditions begin to improve in the tech sector. As mentioned above, the three-year bear market, which started in March of 2000, began 2003 with no conclusive sign that it is over. However, over the last nine months the market's performance probably "felt" worse than it actually was. After a significant decline in the first seven months of 2002, the market basically traded in a flat range while digesting many negative headlines. The S&P 500 first reached one of several recent low points last July. While having revisited the July 2002 low level two more times, the S&P 500 has also twice rebounded while trading within a range bounded by price levels of 775 and 950. This type of sideways trading, especially in a period of major unsettling news background, often indicates that a bear market may be ending to be followed by generally gradual improvement. Hopefully, a combination of further economic recovery, continued earnings growth, and some likely new pro-investment tax initiatives can under gird further stock market recovery as we go forward. Our goal for the Fund remains to earn an attractive long-term total investment return. We continue to pursue this goal 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, but each attribute has performed quite well over the long term and when blended together we feel they have produced excellent results. We thank you for your support and the trust you have expressed in us by investing in the Fund. We also acknowledge that the Fund started up just as a major bear market was about to unfold. Now, we look forward to a time of more positive market conditions and to reporting pleasing investment returns to you. Sincerely, INVESCO-National Asset Management Equity Team Opinions expressed are those of the INVESCO-National Asset Management Equity Team and are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Sector allocations are as of 04/30/03 and are subject to change at any time. The S&P 500 Index is an unmanaged index commonly used to measure performance of U.S. stocks. One cannot invest directly in an index. Mutual fund investing involves risk. Principal loss is possible. The information contained in this report is authorized for us when preceded or accompanied by a prospectus. The Fund is distributed by Quasar Distributors, LLC. 06/03 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 $9,017 4/30/2002 $9,208 $8,619 7/31/2002 $7,858 $7,327 10/31/2002 $7,371 $7,152 1/31/2003 $7,039 $6,941 4/30/2003 $7,527 $7,472 Since Inception Average Annual Total Return as of April 30, 2003 1-year (6/2/99) - ------------------------------------------------ ------ --------------- National Asset Management Core Equity Fund -18.26% -7.01% S&P 500 Composite Stock Price Index -13.31% -7.18% The Fund commenced operations on June 2, 1999. Past performance is no guarantee of future results. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions, or redemption of Fund shares. Share value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original investment. Indices do not incur expenses and are not available for investment. 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, 2003 Shares COMMON STOCKS: 98.12% Value - ------ --------------------- ----- BASIC INDUSTRY: 6.30% 5,500 Air Products and Chemicals, Inc. $ 236,885 3,110 Emerson Electric Co. 157,677 4,210 Phelps Dodge Corp.* 131,310 5,450 Praxair, Inc. 316,536 3,790 Weyerhaeuser Co. 187,946 ----------- 1,030,354 ----------- CAPITAL GOODS: 13.16% 3,440 Deere & Co. 151,463 22,332 General Electric Co. 657,677 9,420 Honeywell International, Inc. 222,312 8,660 Ingersoll-Rand Co. - Class A# 381,733 17,290 Masco Corp. 364,300 8,210 The Boeing Co. 223,969 2,400 United Technologies Corp. 148,344 ----------- 2,149,798 ----------- CHEMICALS - DIVERSIFIED: 2.46% 5,720 E.I. Du Pont de Nemours and Co. 243,272 3,280 PPG Industries, Inc. 159,113 ----------- 402,385 ----------- COMMUNICATIONS: 0.88% 6,140 SBC Communications, Inc. 143,430 ----------- CONSUMER CYCLICAL: 11.55% 4,550 Harley-Davidson, Inc. 202,202 2,000 Johnson Controls, Inc. 164,480 3,780 Kohl's Corp. * 214,704 6,500 Newell Rubbermaid, Inc. 198,120 9,020 Target Corp. 301,629 7,236 The Home Depot, Inc. 203,549 10,712 Wal-Mart Stores, Inc. 603,300 ----------- 1,887,984 ----------- CONSUMER STAPLES: 6.16% 8,670 PepsiCo, Inc. 375,238 1,940 The Procter & Gamble Co. 174,309 7,950 Walgreen Co. 245,337 3,730 Wm. Wrigley Jr. Co. 211,528 ----------- 1,006,412 ----------- ENERGY: 5.49% 5,393 ChevronTexaco Corp. 338,734 13,762 Exxon Mobil Corp. 484,422 1,770 Schlumberger Limited 74,216 ----------- 897,372 ----------- FINANCE: 23.70% 6,487 American International Group, Inc. 375,922 13,786 Citigroup, Inc. 541,100 6,900 Fannie Mae 499,491 2,680 Fifth Third Bancorp 132,121 4,440 Freddie Mac 257,076 2,600 MGIC Investment Corp. 118,196 6,060 Morgan Stanley 271,185 12,158 Radian Group, Inc. 482,673 5,720 State Street Corp. 200,372 4,430 The Allstate Corp. 167,410 8,830 The Bank of New York Co., Inc. 233,553 4,510 The Goldman Sachs Group, Inc. 342,309 8,170 The PMI Group, Inc. 251,799 ----------- 3,873,207 ----------- HEALTHCARE: 12.19% 9,110 Johnson & Johnson 513,440 7,780 Medtronic, Inc. 371,417 4,713 Merck & Co, Inc. 274,202 13,610 Pfizer, Inc. 418,508 7,280 Tenet Healthcare Corp.* 108,035 7,050 Wyeth 306,887 ----------- 1,992,489 ----------- TECHNOLOGY: 16.23% 10,720 Altera Corp.* 169,483 28,222 Cisco Systems, Inc.* 423,330 11,360 Dell Computer Corp.* 329,213 7,800 EMC Corp.* 70,902 18,008 Intel Corp. 330,807 11,840 Jabil Circuit, Inc.* 221,408 3,440 Maxim Integrated Products, Inc. 135,295 21,990 Microsoft Corp. 562,064 18,360 Oracle Corp.* 218,117 5,990 QUALCOMM, Inc. 191,021 ----------- 2,651,640 ----------- Total Common Stocks (Cost $18,819,624) 16,035,071 ----------- SHORT-TERM INVESTMENTS: 2.02% ------------------------------ 330,370 Federated Cash Trust Series II (Cost $330,370) 330,370 ----------- Total Investment in Securities (Cost $19,149,994): 100.14% 16,365,441 Liabilities in Excess of Other Assets: (0.14%) (23,205) ----------- Net Assets: 100.00% $16,342,236 ----------- ----------- * Non-income producing security. # U.S. Security of foreign issuer. See accompanying Notes to Financial Statements. STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 2003 ASSETS Investments in securities, at value (identified cost $19,149,994) $16,365,441 Receivables Dividends 14,743 Prepaid expenses 2,482 ----------- Total assets 16,382,666 ----------- LIABILITIES Payables Due to Advisor 762 Due to Administrator 2,600 Accrued expenses 37,068 ----------- Total liabilities 40,430 ----------- NET ASSETS $16,342,236 ----------- ----------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$16,342,236/2,208,638 shares outstanding; unlimited number of shares (par value $0.01) authorized] $7.40 ----- ----- COMPONENTS OF NET ASSETS Paid-in capital $25,483,515 Undistributed net investment income 79,467 Accumulated net realized loss on investments (6,436,193) Net unrealized depreciation on investments (2,784,553) ----------- Net assets $16,342,236 ----------- ----------- See accompanying Notes to Financial Statements. STATEMENT OF OPERATIONS FOR THE YEAR ENDED APRIL 30, 2003 INVESTMENT INCOME Income Dividend income $ 262,959 ----------- Expenses Advisory fees (Note 3) 96,571 Administration fees (Note 3) 38,628 Professional fees 24,503 Fund accounting fees 22,498 Custodian fees 15,502 Transfer agent fees 13,002 Registration fees 7,516 Trustees' fees 6,398 Reports to shareholders 6,001 Miscellaneous 6,000 Insurance fees 2,336 ----------- Total expenses 238,955 Less, advisory fee waiver (Note 3) (55,469) ----------- Net expenses 183,486 ----------- Net investment income 79,473 ----------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss from security transactions (5,368,001) Net change in unrealized depreciation on investments 773,520 ----------- Net realized and unrealized loss on investments (4,594,481) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(4,515,008) ----------- ----------- See accompanying Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS Year Ended Year Ended April 30, 2003 April 30, 2002 -------------- -------------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income $ 79,473 $ 35,362 Net realized loss on security transactions (5,368,001) (1,068,192) Net change in unrealized depreciation on investments 773,520 (2,209,330) ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS (4,515,008) (3,242,160) ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Net investment income (34,779) (13,956) Net realized gain on security transactions -- (109,543) ----------- ----------- (34,779) (123,499) ----------- ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net (decrease)/increase in net assets derived from net change in outstanding shares (a) (2,901,801) 2,708,667 ----------- ----------- TOTAL DECREASE IN NET ASSETS (7,451,588) (656,992) ----------- ----------- NET ASSETS Beginning of period 23,793,824 24,450,816 ----------- ----------- END OF PERIOD $16,342,236 $23,793,824 ----------- ----------- ----------- ----------- Undistributed net investment income $ 79,467 $ 34,773 ----------- ----------- ----------- ----------- (a) A summary of shares transactions is as follows: Year Ended Year Ended April 30, 2003 April 30, 2002 -------------------- ------------------- Shares Value Shares Value ------ ----- ------ ----- Shares sold 256,382 $ 1,977,605 524,090 $5,211,817 Shares issued in reinvestment of distributions 4,018 28,450 10,791 103,813 Shares redeemed (674,920) (4,907,856) (265,748) (2,606,963) -------- ----------- -------- ---------- Net (decrease)/increase (414,520) $(2,901,801) 269,133 $2,708,667 -------- ----------- -------- ---------- -------- ----------- -------- ---------- See accompanying Notes to Financial Statements. FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD Year Year Year June 2, 1999* Ended Ended Ended through April 30, April 30, April 30, April 30, 2003 2002 2001 2000 ---- ---- ---- ---- Net asset value, beginning of period $ 9.07 $10.39 $11.42 $10.00 ------ ------ ------ ------ Income from investment operations: Net investment income 0.03 0.01 0.01 0.01 Net realized and unrealized (loss)/gain on investments (1.69) (1.28) (0.92) 1.42 ------ ------ ------ ------ Total from investment operations (1.66) (1.27) (0.91) 1.43 ------ ------ ------ ------ Less distributions: From net investment income (0.01) (0.01) (0.01) (0.01) From net realized gains -- (0.04) (0.11) -- ------ ------ ------ ------ (0.01) (0.05) (0.12) (0.01) ------ ------ ------ ------ Net asset value, end of period $ 7.40 $ 9.07 $10.39 $11.42 ------ ------ ------ ------ ------ ------ ------ ------ Total return (18.26%) (12.28%) (8.13%) 14.26%++ Ratios/supplemental data: Net assets, end of period (000) $16,342 $23,794 $24,451 $10,606 Ratio of expenses to average net assets: Before expense reimbursement 1.24% 1.13% 1.27% 5.47%+ After expense reimbursement 0.95% 0.95% 0.95% 0.95%+ Ratio of net investment income to average net assets: After expense reimbursement 0.41% 0.14% 0.12% 0.14%+ Portfolio turnover rate 30.37% 29.99% 21.88% 20.80%
* Commencement of operations. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS APRIL 30, 2003 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 (maturities of 60 days or less) are valued at amortized cost, which approximates market value. Effective June 13, 2003, the Board of Trustees amended the valuation procedures to allow for the use of the NASDAQ Official Closing Price (NOCP) for securities primarily traded on the NASDAQ National Market System, when applicable. 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 with 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, 2003, 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, 2003, the Fund incurred $96,571 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, 2003, the Advisor reduced its fees and absorbed Fund expenses in the amount of $55,469; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $257,513 at April 30, 2003, and will expire unless recaptured before the end of the fiscal years as follows: Year Amount ---- ------ 2005 $157,391 2006 $100,122 U.S. Bancorp Fund Services, LLC (the "Administrator") acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. 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, 2003, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $5,839,951 and $8,623,267, respectively. NOTE 5 - INCOME TAXES Net investment income/(loss) and net realized gains/(losses) 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, 2003, the components of net assets on a tax basis were as follows: Cost of investments $19,174,224 Gross tax unrealized appreciation $ 534,106 Gross tax unrealized depreciation (3,342,889) ----------- Net tax unrealized depreciation $(2,808,783) ----------- ----------- Capital loss carryforwards expire as follows: Year Amount ---- ------ 2010 $ (312,802) 2011 (2,881,258) ----------- $(3,194,060) ----------- ----------- At April 30, 2003, the Fund had deferred capital losses occurring subsequent to October 31, 2002 of ($3,217,903). For tax purposes, such losses will be deferred until the year ending April 30, 2004. The tax composition of dividends during the year ended April 30, 2003, was as follows: 2003 2002 ---- ---- Ordinary income $34,779 $64,736 Long term capital gains -- 58,763 As of April 30, 2003, the components of distributable earnings, on a tax basis, were as follows: Undistributed ordinary income $79,467 ------- ------- NOTE 6 - SUBSEQUENT EVENTS On June 13, 2003, PricewaterhouseCoopers LLP ("PwC") resigned as the independent auditors for the National Asset Management Core Equity Fund (the "Fund"), a series of Advisors Series Trust (the "Company"). On June 13, 2003, the Company retained Tait Weller & Baker CPA's, LLP ("Tait") as the independent auditors for the Funds. The retention of Tait as the independent auditors of the Fund has been approved by the Company's Audit Committee and Board of Trustees. The reports of PwC on the financial statements of the Fund for the past two fiscal years contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. In connection with its audits for the two most recent fiscal years and through June 13, 2003, there have been no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC would have caused them to make reference thereto in their report on the financial statements for such years. REPORT OF INDEPENDENT AUDITORS 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, 2003, 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, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Milwaukee, Wisconsin June 6, 2003 INFORMATION ABOUT TRUSTEES AND OFFICERS (UNAUDITED) This chart provides information about the Trustees and Officers who oversee your Fund. Officers elected by the Trustees manage the day-to-day operations of the Fund and execute policies formulated by the Trustees. INDEPENDENT TRUSTEES NAME, AGE NUMBER OF ADDRESS TRUSTEE FUNDS IN COMPLEX PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS OF FUND OVERSEEN AND OTHER DIRECTORSHIPS SINCE BY TRUSTEE - ---------------------------------------------- ------- ---------------- Walter E. Auch, Born 1921 1997 16 2020 E. Financial Way Glendora, CA 91741 Management Consultant. Other Directorships: Nicholas-Applegate Funds, Citigroup, Legend Properties, Pimco Advisors, LLP and Senele Group James Clayburn LaForce, Born 1927 2002 16 2020 E. Financial Way Glendora, CA 91741 Dean Emeritus, John E. Anderson Graduate School of Management, University of California, Los Angeles. Other Directorships: The Payden & Rygel Investment Group, The Metzler/Payden Investment Group, PIC Investment Trust, PIC Small Cap Portfolio, PIC Balanced Portfolio, PIC Growth Portfolio, PIC Mid Cap Portfolio, Black Rock Funds, Jacobs Engineering, Arena Pharmaceuticals, Cancervax Donald E. O'Connor, Born 1936 1997 16 2020 E. Financial Way Glendora, CA 91741 Financial Consultant, formerly Executive Vice President and Chief Operating Officer of ICI Mutual Insurance Company (until January, 1997). Other Directorships: The Forward Funds George J. Rebhan, Born 1934 2002 16 2020 E. Financial Way Glendora, CA 91741 Retired; formerly President, Hotchkis and Wiley Funds (mutual funds) from 1985 to 1993. Other Directorships: E*Trade Funds George T. Wofford III, Born 1939 1997 16 2020 E. Financial Way Glendora, CA 91741 Senior Vice President, Information Services, Federal Home Loan Bank of San Francisco. Other Directorships: None INTERESTED TRUSTEES AND OFFICERS Eric M. Banhazl, Born 1957 1997 16 2020 E. Financial Way Glendora, CA 91741 Trustee and President Senior Vice President, U.S. Bancorp Fund 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). Other Directorships: None Chad E. Fickett, Born 1973 2002 16 615 E. Michigan Street Milwaukee, WI 53202 Secretary Compliance Administrator, U.S. Bancorp Fund Services, LLC (since July 2000). Directorships: None Douglas G. Hess, Born 1967 2002 16 615 E. Michigan Street Milwaukee, WI 53202 Treasurer Vice President Compliance and Administration, U.S. Bancorp Fund Services, LLC (since March 1997). Directorships: None
ADVISOR INVESCO - National Asset Management 400 West Market Street, Suite 2500 Louisville, KY 40202 DISTRIBUTOR Quasar Distributors, LLC 615 East Michigan Street, 2nd Floor Milwaukee, WI 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT U.S. Bancorp Fund Services, LLC 615 East Michigan Street, 2nd Floor Milwaukee, WI 53202 1-800-576-8229 INDEPENDENT AUDITORS PricewaterhouseCoopers, LLP 100 East Wisconsin Avenue Milwaukee, WI 53202 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 1-800-576-8229. 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. ITEM 2. CODE OF ETHICS. - ----------------------- Not applicable to annual reports filed for periods ending before July 15, 2003. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. - ----------------------------------------- Not applicable to annual reports filed for periods ending before July 15, 2003. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. - ----------------------------------------------- Not required for annual reports filed for periods ending before December 15, 2003. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. - ---------------------------------------------- Not applicable. ITEM 6. [RESERVED] - ------------------ ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END - ------------------------------------------------------------------------- MANAGEMENT INVESTMENT COMPANIES - ------------------------------- Not applicable. ITEM 8. [RESERVED] - ------------------ ITEM 9. CONTROLS AND PROCEDURES. - -------------------------------- (a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's President and Treasurer/CFO have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure. (b) There were no significant changes in the Registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. - ------------------ (a) Any code of ethics or amendment thereto. Not applicable to annual reports for periods ending before July 15, 2003. (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. (c) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Advisors Series Trust ---------------------------- By (Signature and Title) /s/ Eric M. Banhazl ---------------------------------------- Eric M. Banhazl, President Date 7/3/03 ------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. (Registrant) Advisors Series Trust ---------------------------- By (Signature and Title) /s/ Doug Hess ---------------------------------------- Doug Hess, Treasurer Date 7/3/03 ------------------------------ EX-99.CERT 3 namcef-ex99cert302.txt CERTIFICATIONS -------------- I, Eric M. Banhazl, certify that: 1. I have reviewed this report on Form N-CSR of the Advisors Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: 7/3/03 /s/ Eric M. Banhazl -------------------- ---------------------------------------- Eric M. Banhazl President CERTIFICATIONS -------------- I, Doug Hess, certify that: 1. I have reviewed this report on Form N-CSR of the Advisors Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: 7/3/03 /s/ Doug Hess ------------------- --------------------------------------- Doug Hess Treasurer EX-99.CERT 4 namcef-ex99cert906.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT --------------------------------------------------------------- Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Advisors Series Trust, does hereby certify, to such officer's knowledge, that the report on Form N-CSR of Advisors Series Trust for the fiscal year ended April 30, 2003 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of Advisors Series Trust. /s/ Eric M. Banhazl /s/ Doug Hess - ----------------------------------- ------------------------------------- Eric M. Banhazl Doug Hess President, Advisors Series Trust Treasurer, Advisors Series Trust Dated: 7/3/03 -------------------- A signed original of this written statement required by Section 906 has been provided by Advisors Series Trust and will be retained by Advisors Series Trust and furnished to the SEC or its staff upon request. This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Advisors Series Trust for purposes of the Securities Exchange Act of 1934. -----END PRIVACY-ENHANCED MESSAGE-----