-----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, R3F2mV3uYlf8lKV7oRkD/3WTtMkj26TzJPKsFL3sa8JZlicihYcth0gvmLFbxjq9 BZpHx0WPggd5oUkvfAam0g== 0000898531-05-000128.txt : 20050309 0000898531-05-000128.hdr.sgml : 20050309 20050309151720 ACCESSION NUMBER: 0000898531-05-000128 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050309 DATE AS OF CHANGE: 20050309 EFFECTIVENESS DATE: 20050309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORS SERIES TRUST CENTRAL INDEX KEY: 0001027596 IRS NUMBER: 000000000 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: 05669259 BUSINESS ADDRESS: STREET 1: U.S BANCORP FUND SERVICES, LLC STREET 2: 615 E MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 414-765-5344 MAIL ADDRESS: STREET 1: 615 E MICHIGAN STREET STREET 2: MK-WI-LC2 CITY: MILWAUKEE STATE: WI ZIP: 53202 N-CSR 1 taff-ncsra.txt 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 E. MICHIGAN ST. 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) 765-5340 -------------- Registrant's telephone number, including area code Date of fiscal year end: DECEMBER 31, 2004 ----------------- Date of reporting period: DECEMBER 31, 2004 ----------------- ITEM 1. REPORT TO STOCKHOLDERS. - ------------------------------ (AL FRANK LOGO) AL FRANK FUND AL FRANK DIVIDEND VALUE FUND ANNUAL REPORT DECEMBER 31, 2004 AL FRANK FUNDS 32392 COAST HIGHWAY, SUITE 260 LAGUNA BEACH, CA 92651 SHAREHOLDER SERVICES (888) 263-6443 WWW.ALFRANKFUNDS.COM AL FRANK ASSET MANAGEMENT, INC. 32392 Coast Highway, Suite 260, Laguna Beach, CA 92651 www.alfrankfunds.com February 2005 Dear Shareholder, Though the new year is off to a modest start for both The Al Frank Fund (VALUX) and The Al Frank Dividend Value Fund (VALDX) as of this writing, in 2004 we again witnessed the merits of staying true to our disciplined investment philosophy as the performance numbers below will attest. We know that we will not always have market-beating or even positive performance in the short term, but we have always been well rewarded in the fullness of time for remaining patient during disappointing periods. FUND PERFORMANCE: AVERAGE ANNUAL TOTAL RETURNS LIFE OF PERIODS ENDED 12/31/04 1 YEAR 3 YEARS 5 YEARS FUND* - ---------------------- ------ ------- ------- --------- Al Frank Fund 15.83% 15.10% 16.17% 17.44% Al Frank Dividend Value Fund n/a n/a n/a 10.77% Russell 2000 Index 18.33% 11.48% 6.61% 7.23% S&P 500 Index 10.88% 3.59% -2.30% 4.70% Wilshire 5000 Index 12.62% 5.43% -1.42% 5.09% * The Al Frank Fund inception date was 1/2/98, The Al Frank Dividend Value Fund inception date was 9/30/04. Performance data quoted represents past performance and 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. Performance current to the most recent month end may be lower or higher than the performance quoted and may be obtained by visiting www.alfrankfunds.com. The Funds impose a 2.00% redemption fee on shares held for less than two months. Consider that for most of the first nine months of last year, The Al Frank Fund was in the red. Yet the tide turned quickly in the fourth quarter, despite a time frame that included the often scary month of October and all of the uncertainties surrounding the November presidential election. Happily, by the end of 2004 The Al Frank Fund had moved significantly higher, so much so that it managed a 15.83% return for the year. While this was a bit below our average annualized rate of return of 17.44% (dating back to inception on January 2, 1998), we can't complain as we significantly outperformed the traditional mutual fund benchmark, the Standard & Poor's 500 Index, as well as the broad-based Wilshire 5000 Index. We are pleased that many of our newer VALUX shareholders chose to stay the course last year, even when their paper losses during the summer were in the double-digit percentages. Alas, we know that more than a few of our shareholders decided to redeem their holdings, with outflows heaviest when performance was weakest. As our founder Al Frank used to say, "twas ever thus!" I know that it isn't always easy to keep the faith when things are not going our way, but we have witnessed time and again that for those who share our long-term orientation it is far better to be buying rather than selling when short-term performance is punk. For example, when redemptions were heaviest in The Al Frank Fund back in August, not only did I not sell any shares in the Fund, I actually put more dollars into VALUX as I firmly believe in putting my money where my mouth is. After all, if I don't have faith in our Funds, why should I expect shareholders to entrust their assets to us? Obviously, I understand that I can't expect every shareholder to always remain loyal, but I wish that we could force investors to stay with us for three to five years, or even longer - not for our sake, but for their sakes! For its part, The Al Frank Dividend Value Fund (VALDX), enjoyed a 10.77% return over its first three months of operation (inception was on September 30, 2004) and I am pleased to report that assets in this new Fund have climbed above $19 million as of this writing. Remember that just like our flagship fund, VALUX, we are managing VALDX for long-term capital appreciation. Those seeking instant gratification have likely come to the wrong place. I have discussed this before, but it is worth repeating: After rough sledding in 1998, VALUX roared back to return 60% in 1999 and after dismal returns in 2002, the Fund soared 78% in 2003. Not once during those difficult periods did we waver from our time-tested approach of buying and patiently holding undervalued stocks. In fact, the very same stocks that created the lousy returns were responsible for the tremendous recoveries! Given that both of our Funds are broadly diversified, one or two winning or losing stocks do not make or break performance and, as is generally the case, favorable earnings comparisons powered the winning stocks while disappointing results drove the losers lower. VALUX benefited in 2004 from strong gains in energy stocks like Tesoro Petroleum and OMI Corp, healthcare stocks like Aetna and Pacificare, homebuilding stocks like Toll Brothers and Beazer Homes, retail stocks like American Eagle Outfitters and Abercrombie & Fitch and technology stocks like Endwave and Apple Computer. VALDX was powered higher by stellar performers like Haggar, AU Optronics, Ambassador's Int'l, Skywest Airlines and US Steel. Obviously, not all of our picks were winners in 2004 and VALUX was held back by big losses in Concord Camera, FLYi, Blue Martini, Innovex and 3Com. In VALDX, Frontline, Capstead Mortgage, Tsakos Energy, Pfizer and Alcoa were the largest losers. Of course, our historical experience has proven that our winners win more than our losers lose and we will happily take the bad with the good, as our market-beating returns are proof that our time-tested approach works. Certainly, we are always working to improve our research, but the same fundamental analysis that gave us the top performers also led us to the laggards. Those who are familiar with our investment approach are likely well aware that we remain very optimistic about the prospects for the securities we hold in our Funds. We focus on valuations, and with interest rates remaining low, inflation staying contained and corporate profits turning out to be better than expected, we can't help but be bullish. Of course, we can never forget that the odds are stacked in our favor, given that stocks have historically returned 10% to 12% per annum, with undervalued equities performing even better. While I recognize that VALUX and VALDX are classified as Small- to Mid-Cap Value Funds, I remind shareholders that we are never constrained by asset allocation style boxes. Take a look at the Top 10 Holdings (as a percentage of total assets on December 31, 2004) of each Fund to see what I mean. In VALUX, Norfolk Southern, Aetna and Transocean sport market capitalizations of more than $14 billion, not exactly small-cap, while in VALDX, companies like AU Optronics, Intel and Abbott Laboratories could be considered more growth oriented as opposed to value-based. TOP TEN HOLDINGS AS OF DECEMBER 31, 2004 THE AL FRANK FUND (VALUX) THE AL FRANK DIVIDEND VALUE FUND (VALDX) 1. Beazer Homes 0.67% 1. Lennar Corp CLA 0.92% 2. Toll Brothers 0.66% 2. Ambassadors Int'l 0.88% 3. Aleris Int'l 0.65% 3. Fedders 0.87% 4. Norfolk Southern 0.62% 4. Countrywide Financial 0.85% 5. Aetna 0.60% 5. AU Optronics 0.84% 6. Abercrombie & Fitch 0.59% 6. Standard Pacific 0.81% 7. Advanced Micro Devices 0.59% 7. DR Horton 0.80% 8. Optimal Group 0.59% 8. DuPont 0.80% 9. Transocean 0.58% 9. Intel 0.79% 10. OMICorp. 0.58% 10. Abbott Laboratories 0.78% We seek bargains wherever they reside. If Blue-Chips are cheap, we will buy them. If technology stocks are undervalued, we will not hesitate to pick them up. We believe that if we limit our investment universe by market-cap or value- versus-growth distinctions, then we are likely to limit our returns! All of us at Al Frank Asset Management appreciate the patronage of our long-term oriented shareholders and we will continue to put forth the "extra" that can turn an ordinary mutual fund into an extraordinary one. After all, our money is invested right beside yours! As we work to improve communications with our shareholders, we have launched some very exciting e-mail newsletters and updates. Please visit www.alfrankfunds.com/sar for additional information and to sign up for this free - ------------------------ service. Sincerely, /s/John Buckingham John Buckingham President & Chief Portfolio Manager Investment performance reflects voluntary fee waivers. In the absence of returns such waivers, total returns would be reduced. Short term performance, in particular, is not a good indication of a fund's future performance, and an investment should not be made based solely on returns. INVESTING IN SECURITIES OF SMALL AND MEDIUM-CAPITALIZATION COMPANIES WILL INVOLVE GREATER PRICE VOLATILITY THAN LARGE-CAPITALIZATION COMPANIES. Opinions expressed are those of John Buckingham, which are subject to change and are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. Fund holdings are subject to change and are not a recommendation to buy or sell any security. The S&P 500, Russell 2000 and Wilshire 5000 Indices are unmanaged indices commonly used to measure performance of U.S. stocks. The S&P 500 invests primarily in large-cap stocks; the Russell 2000 invests primarily in small-cap stocks; and the Wilshire 5000 invests primarily in small-, mid- and large-cap stocks. You cannot invest directly in an index. This material must be preceded or accompanied by a current prospectus. Read it carefully before investing. Distributed by Quasar Distributors LLC. (02/05) AL FRANK FUNDS AL FRANK FUND Comparison of the change in value of a hypothetical $10,000 investment in the Al Frank Fund vs. the Russell 2000 Index, the Dow Jones Wilshire 5000 (Full Cap) Index, the S&P/Barra Value Index, and the S&P 500 Index Dow Jones Wilshire 5000 Date Al Frank S&P 500 Russell S&P/Barra (Full Cap) Fund Index 2000 Index Value Index Index ---- -------- ------- ---------- ----------- ------------- 1/2/98 $10,000 $10,000 $10,000 $10,000 $10,000 12/31/98 $9,070 $12,797 $9,758 $11,447 $12,309 12/31/99 $14,550 $15,489 $11,833 $12,903 $15,209 12/31/2000 $15,566 $14,080 $11,475 $13,688 $13,553 12/31/2001 $20,195 $12,406 $11,761 $12,085 $12,066 12/31/2002 $14,945 $9,664 $9,352 $9,565 $9,549 12/31/2003 $26,598 $12,436 $13,771 $12,606 $12,570 12/31/2004 $30,801 $13,789 $16,296 $14,584 $14,157 AVERAGE ANNUAL TOTAL RETURN1 Al S&P S&P/ Russell Dow Jones Frank 500 Barra 2000 Wilshire 5000 Fund Index Value Index Index (Full Cap) Index ----- ----- ----------- ----- ----------------- 1 Year 15.83% 10.88% 15.69% 18.33% 12.62% 5 Year 16.17% -2.30% 2.47% 6.61% -1.42% Since inception (1/2/98) 17.44% 4.70% 5.54% 7.23% 5.09%
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. Current performance of the Funds may be lower or higher than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. Performance data for the most recent month end is available at www.alfrankfunds.com. The Fund imposes a 2.00% redemption fee on shares held less than two months. Returns reflect the reinvestment of dividends and capital gains. Fee waivers were in effect in 1998 and 1999. In the absence of fee waivers, returns in 1998 and 1999 would be reduced. The performance data and graphs above do not reflect the deduction of taxes that a shareholder may pay on dividends, capital gain distributions, or redemption of Fund shares. 1 Average Annual Total Return represents the average change in account value over the periods indicated. The Dow Jones Wilshire 5000 (Full Cap) Index tracks the performance of all equity securities issued by the U.S. head-quartered companies regardless of exchange. As of 3/31/04, the index was comprised of 5,176 companies. The Russell 2000 Index is a widely regarded small cap index of the 2,000 smallest securities of the Russell 3000 Index which is comprised of the 3,000 largest U.S. securities as determined by total market capitalization. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. The S&P/Barra Value Index is an unmanaged capitalization-weighted index that contains approximately 50% of the stocks in the S&P 500 Index with lower price- to-book ratios. One cannot invest directly in an index. AL FRANK FUNDS AL FRANK DIVIDEND VALUE FUND Comparison of the change in value of a hypothetical $10,000 investment in the Al Frank Dividend Value Fund vs. S&P 500 Index, the S&P 400 Midcap Index, and the Dow Jones Wilshire 5000 (Full Cap) Index Dow Jones Al Frank Wilshire 5000 Dividend S&P 500 S&P 400 (Full Cap) Date Value Fund Index Midcap Index Index ---- ---------- ------- ------------ ------------- 9/30/2004 $10,000 $10,000 $10,000 $10,000 10/31/2004 $10,030 $10,153 $10,160 $10,171 11/30/2004 $10,740 $10,564 $10,586 $10,647 12/31/2004 $11,077 $10,923 $11,216 $11,033 CUMULATIVE TOTAL RETURN Al Frank S&P 400 Dow Jones Dividend S&P 500 Midcap Wilshire 5000 Value Fund Index Index (Full Cap) Index ---------- ------- ------- ---------------- Since inception (9/30/04) 10.77% 9.23% 12.16% 10.33% 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. Current performance of the Funds may be lower or higher than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. Performance data for the most recent month end is available at www.alfrankfunds.com. The Fund imposes a 2.00% redemption fee on shares held less than two months. Returns reflect the reinvestment of dividends and capital gains. Fee waivers are in effect. In the absence of fee waivers, returns would be reduced. The performance data and graphs above do not reflect the deduction of taxes that a shareholder may pay on dividends, capital gain distributions, or redemption of Fund shares. The Dow Jones Wilshire 5000 (Full Cap) Index tracks the performance of all equity securities issued by the U.S. head-quartered companies regardless of exchange. As of 3/31/04, the index was comprised of 5,176 companies. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. The S&P 400 Midcap Index is a capitalization-weighted indices which measures the performance of the mid-range sector of the U.S. stock market. One cannot invest directly in an index. AL FRANK FUNDS EXPENSE EXAMPLE AT DECEMBER 31, 2004 (UNAUDITED) Shareholders of mutual funds generally incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. The Al Frank Funds are no-load mutual funds. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund(s) and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/04 - 12/31/04) for the Al Frank Fund and (9/30/04 - 12/31/04) for the Al Frank Dividend Value Fund. ACTUAL EXPENSES The first line of the tables below provides information about actual account values and actual expenses, with actual net expenses being limited to 1.98% per the advisory agreement. Please note that the Al Frank Fund operated below the expense cap at 1.67%. Although the Fund(s) charge no sales load or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks, and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds' transfer agent. The example below includes, but is not limited to, management fees, 12b-1 fees, fund accounting, custody and transfer agent fees. You may use the information in the first line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period'' to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. AL FRANK FUND BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD 7/1/04 12/31/04 7/1/04 - 12/31/04* ------------- ------------- ---------------------- Actual $1,000.00 $1,105.70 $8.84 Hypothetical (5% return $1,000.00 $1,016.74 $8.47 before expenses) * Expenses are equal to the Fund's annualized expense ratio of 1.67%, multiplied by the average account value over the period, multiplied by 184 (days in most recent fiscal half-year divided by 366 days to reflect the one-half year expense). AL FRANK DIVIDEND VALUE FUND BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD 9/30/04 12/31/04 9/30/04 - 12/31/04* ------------- ------------- ---------------------- Actual $1,000.00 $1,107.70 $5.30 Hypothetical (5% return $1,000.00 $1,007.67 $5.05 before expenses) * Expenses are equal to the Fund's annualized expense ratio of 1.98%, multiplied by the average account value over the period, multiplied by 93 (days in most recent fiscal half-year) divided by 366 days to reflect the expenses for the period). AL FRANK FUNDS ALLOCATION OF PORTFOLIO ASSETS AT DECEMBER 31, 2004 (UNAUDITED) AL FRANK FUND Basic Materials 5% Consumer, Cyclical 22% Consumer, Noncyclical 3% Energy 9% Financial 8% Healthcare 7% Industrial 14% Technology 27% Telecommunications 3% Utilities 0% Warrants 0% Short-Term Investments 2% AL FRANK DIVIDEND VALUE FUND Basic Materials 6% Consumer, Cyclical 25% Consumer, Noncyclical 5% Energy 12% Financial 15% Healthcare 8% Industrial 12% Technology 10% Telecommunications 3% Short-Term Investments 4% AL FRANK FUND SCHEDULE OF INVESTMENTS AT DECEMBER 31, 2004 Shares Common Stocks: 98.15% Market Value ------ --------------------- ------------ ADVANCED INDUSTRIAL EQUIPMENT: 0.57% 76,200 O.I. Corp.* $ 752,856 80,000 The Lamson & Sessions Co.* 728,000 ------------ 1,480,856 ------------ ADVANCED MEDICAL DEVICES: 0.72% 25,100 Bio-logic Systems Corp.* 228,410 273,300 Cathay Merchant Group, Inc.* 213,174 15,074 Utah Medical Products, Inc. 338,713 75,000 Vascular Solutions, Inc.* 751,500 13,000 VISX, Inc.* 336,310 ------------ 1,868,107 ------------ AEROSPACE & DEFENSE: 3.45% 24,100 AAR Corp.* 328,242 40,000 BE Aerospace, Inc.* 465,600 40,000 Ducommun, Inc.* 834,000 50,000 Kaman Corp. - Class A 632,500 129,900 LMI Aerospace, Inc.* 702,759 22,000 Lockheed Martin Corp. 1,222,100 115,000 Orbit International Corp.* 1,296,050 12,300 Pemco Aviation Group, Inc.* 335,175 15,000 Raytheon Co. 582,450 110,700 SIFCO Industries, Inc.* 635,418 50,000 The Allied Defense Group, Inc.* 1,112,500 15,500 The Boeing Co. 802,435 ------------ 8,949,229 ------------ AIRLINES: 0.92% 22,000 Air France ADR 422,400 80,000 Airtran Holdings, Inc.* 856,000 75,000 Mesa Air Group, Inc.* 595,500 175,000 Midwest Express Holdings, Inc.* 509,250 ------------ 2,383,150 ------------ ALUMINUM: 0.40% 33,000 Alcoa, Inc. 1,036,860 ------------ AUTOMOBILE MANUFACTURERS: 1.11% 20,000 DaimlerChrysler AG # 961,000 70,000 Ford Motor Co. 1,024,800 22,000 General Motors Corp. 881,320 ------------ 2,867,120 ------------ AUTOMOBILE PARTS & EQUIPMENT: 1.39% 35,000 ArvinMeritor, Inc. 782,950 23,000 Cooper Tire & Rubber Co. 495,650 80,000 Dura Automotive Systems, Inc.* 866,400 60,000 The Goodyear Tire & Rubber Co.* 879,600 60,000 Visteon Corp. 586,200 ------------ 3,610,800 ------------ BANKS: 1.87% 20,000 Bank of America Corp. 939,800 20,000 BankAtlantic Bancorp, Inc. - Class A 398,000 81,984 BFC Financial Corp. - Class A* 1,037,098 38,000 Capstead Mortgage Corp. 400,520 18,000 Citigroup, Inc. 867,240 13,200 JPMorgan Chase & Co. 514,932 12,500 National City Corp. 469,375 10,000 Sovereign Bancorp, Inc. 225,500 ------------ 4,852,465 ------------ BROKERAGES: 0.63% 10,000 Lehman Brothers Holdings, Inc. 874,800 7,500 The Bear Stearns Companies, Inc. 767,325 ------------ 1,642,125 ------------ BUILDING MATERIALS: 1.38% 20,000 Ameron International Corp. 758,000 100,000 Huttig Building Products, Inc.* 1,045,000 17,000 International Aluminum Corp. 575,450 40,000 JLG Industries, Inc. 785,200 440,000 Smith-Midland Corp.*^ 426,800 ------------ 3,590,450 ------------ BUSINESS SERVICES: 4.27% 40,000 Ambassadors International, Inc. 629,200 260,000 Analysts International Corp.* 1,040,000 150,000 Computer Horizons Corp.* 571,500 110,000 Edgewater Technology, Inc.* 539,000 151,100 HealthStream, Inc.* 404,948 90,000 Insweb Corp.* 247,500 4,207 Manpower, Inc. 203,198 30,000 MasTec, Inc.* 303,300 125,000 Onvia.com, Inc.* 790,000 130,000 Optimal Group, Inc. - Class A*# 1,532,700 49,630 Quotesmith.com, Inc.* 247,505 500,000 Technology Solutions Co.* 555,000 210,000 Traffix, Inc. 1,333,500 98,823 ValueClick, Inc.* 1,317,311 116,800 Vicon Industries, Inc.* 548,960 200,000 Zomax, Inc.* 822,000 ------------ 11,085,622 ------------ CASINOS & CASINO EQUIPMENT: 0.16% 30,000 Alliance Gaming Corp.* 414,300 ------------ CHEMICALS, COMMODITY: 0.79% 15,000 E.I. Du Pont de Nemours and Co. 735,750 60,000 Olin Corp. 1,321,200 ------------ 2,056,950 ------------ CHEMICALS, SPECIALTY: 1.34% 40,000 Crompton Corp. 472,000 15,000 Octel Corp. ADR 312,150 20,000 OM Group, Inc.* 648,400 10,500 Spartech Corp. 284,445 25,000 The Mosaic Co.* 408,000 125,000 Wellman, Inc. 1,336,250 ------------ 3,461,245 ------------ CLOTHING/FABRICS: 2.45% 25,000 Delta Apparel, Inc. 606,250 22,500 Haggar Corp. 528,278 120,000 Hartmarx Corp.* 932,400 10,000 Kellwood Co. 345,000 10,000 Oxford Industries, Inc. 413,000 84,850 Quaker Fabric Corp. 475,160 40,000 Quiksilver, Inc.* 1,191,600 35,000 Russell Corp. 681,800 305,000 Unifi, Inc.* 1,168,150 ------------ 6,341,638 ------------ COMMUNICATIONS TECHNOLOGY: 5.63% 150,000 3Com Corp.* 625,500 45,000 Andrew Corp.* 613,350 150,000 APA Optics, Inc.* 310,500 150,000 Avanex Corp.* 496,500 115,000 Avici Systems, Inc.* 1,040,750 241,000 Blonder Tongue Laboratories, Inc.* 1,038,710 65,000 Celeritek, Inc. 99,450 65,000 Communications Systems, Inc. 780,650 30,000 Comverse Technology, Inc.* 733,500 289,700 deltathree, Inc. - Class A* 961,804 66,600 Digi International, Inc.* 1,144,854 475,000 Forgent Networks, Inc.* 1,011,750 46,160 MarketWatch.com, Inc.* 830,880 150,000 Net2Phone, Inc.* 510,000 65,000 Network Equipment Technologies, Inc.* 638,300 75,000 Novell, Inc.* 506,250 28,000 Polycom, Inc.* 652,960 100,000 Stratos International, Inc.* 439,000 27,609 Symmetricom, Inc.* 268,083 125,000 Tellabs, Inc.* 1,073,750 355,000 TII Network Technologies, Inc.* 543,150 60,000 TriQuint Semiconductor, Inc.* 267,000 ------------ 14,586,691 ------------ COMPUTERS/HARDWARE: 2.22% 45,000 AU Optronics Corp. ADR 644,400 12,463 Apple Computer, Inc.* 802,617 40,000 Computer Network Technology Corp.* 284,000 175,000 Gateway, Inc.*# 1,051,750 30,000 Hewlett Packard Co. 629,100 100,000 InFocus Corp.* 916,000 25,000 SanDisk Corp.* 624,250 150,000 Sun Microsystems, Inc.* 807,000 ------------ 5,759,117 ------------ CONSUMER SERVICES: 0.05% 4,000 SINA Corp.* # 128,240 ------------ CONTAINERS & PACKAGING: 0.67% 80,000 American Biltrite, Inc.* 912,000 51,250 Rock of Ages Corp. 374,125 150,000 Rotonics Manufacturing, Inc. 450,000 ------------ 1,736,125 ------------ COSMETICS/PERSONAL CARE: 0.13% 10,000 Helen of Troy Ltd.* # 336,100 ------------ CREDIT CARDS: 0.68% 22,000 MBNA Corp. 620,180 70,000 Providian Financial Corp. * 1,152,900 ------------ 1,773,080 ------------ DATA STORAGE/DISK DRIVES: 1.49% 120,000 Adaptec, Inc.* 910,800 170,000 Innovex, Inc.* 926,500 75,000 Iomega Corp.* 415,500 25,000 Storage Technology Corp.* 790,250 75,000 Western Digital Corp.* 813,000 ------------ 3,856,050 ------------ ELECTRICAL COMPONENTS & EQUIPMENT: 1.99% 31,000 American Power Conversion Corp. 663,400 50,000 AVX Corp. 630,000 25,000 C&D Technologies, Inc. 426,000 125,000 Fedders Corp. 452,500 55,000 Frequency Electronics, Inc. 816,750 50,000 Kemet Corp.* 447,500 40,000 OSI Systems, Inc.* 908,400 7,600 RF Industries, Ltd.* 62,396 50,000 Vishay Intertechnology, Inc.* 751,000 ------------ 5,157,946 ------------ ELECTRONIC MANUFACTURING SERVICES: 0.90% 40,000 Flextronics International LTD*# 552,800 25,000 Nam Tai Electronics, Inc. # 481,250 60,000 Sanmina - SCI Corp.* 508,200 150,000 Solectron Corp.* 799,500 ------------ 2,341,750 ------------ FIBER OPTIC COMPONENTS: 0.53% 319,900 Alliance Fiber Optic Products, Inc.* 479,850 75,000 Bookham, Inc.* 363,000 45,000 Corning, Inc.* 529,650 ------------ 1,372,500 ------------ FINANCIAL SERVICES, DIVERSIFIED: 0.65% 10,000 Fannie Mae 712,100 20,000 H & R Block, Inc. 980,000 ------------ 1,692,100 ------------ FIXED LINE COMMUNICATIONS: 0.88% 175,000 ADC Telecommunications, Inc.* 469,000 60,000 Endwave Corp.* 1,047,000 30,000 SBC Communications, Inc. 773,100 ------------ 2,289,100 ------------ FOOD MANUFACTURERS: 0.79% 45,000 Archer-Daniels-Midland Co. 1,003,950 43,000 Sara Lee Corp. 1,038,020 ------------ 2,041,970 ------------ FOOD RETAILERS: 0.18% 20,000 Albertson's, Inc. 477,600 ------------ FOOTWEAR: 0.85% 7,500 Deckers Outdoor Corp.* 352,425 30,000 Saucony, Inc. - Class B 815,700 21,000 Steven Madden, Ltd.* 396,060 10,000 The Timberland Co. - Class A* 626,700 ------------ 2,190,885 ------------ FOREST PRODUCTS: 0.44% 14,500 Georgia-Pacific Corp. 543,460 35,000 Pope & Talbot, Inc. 598,850 ------------ 1,142,310 ------------ HEALTHCARE PROVIDERS: 3.53% 12,500 Aetna, Inc. 1,559,375 95,000 American Shared Hospital Services 564,300 45,000 Curative Health Services, Inc.* 308,250 20,000 HCA, Inc. 799,200 50,000 Humana, Inc.* 1,484,500 35,047 LCA-Vision, Inc. 819,749 23,000 PacifiCare Health Systems, Inc.* 1,299,960 60,000 Res-Care, Inc.* 913,200 61,000 United American Healthcare Corp.* 384,849 11,442 UnitedHealth Group, Inc. 1,007,239 ------------ 9,140,622 ------------ HEAVY CONSTRUCTION: 0.27% 172,300 Williams Industries, Inc.* 706,430 ------------ HEAVY MACHINERY: 0.02% 9,700 Katy Industries, Inc.* 50,246 ------------ HOME CONSTRUCTION: 6.41% 12,000 Beazer Homes USA, Inc. 1,754,520 10,000 Cavco Industries, Inc.* 449,500 22,500 Centex, Corp. 1,340,550 35,000 D.R. Horton, Inc. 1,410,850 27,500 Hovnanian Enterprises, Inc. - Class A* 1,361,800 14,000 KB Home 1,461,600 20,000 Lennar Corp. - Class A 1,133,600 4,000 M.D.C. Holdings, Inc. 345,760 35,000 Orleans Homebuilders, Inc.* 694,750 20,000 Pulte Homes, Inc. 1,276,000 25,000 Ryland Group, Inc. 1,438,500 20,000 Standard Pacific Corp. 1,282,800 25,000 Toll Brothers, Inc.* 1,715,250 32,500 WCI Communities, Inc.* 955,500 ------------ 16,620,980 ------------ HOME FURNISHINGS: 0.84% 80,000 Applica, Inc.* 484,000 32,700 Chromcraft Revington, Inc.* 402,210 6,000 Craftmade International, Inc. 118,326 45,000 The Dixie Group, Inc.* 758,700 6,000 Whirlpool Corp. 415,260 ------------ 2,178,496 ------------ HOUSE, DURABLE: 0.53% 45,000 Department 56, Inc.* 749,250 71,200 Global-Tech Appliances, Inc.*# 635,816 ------------ 1,385,066 ------------ HOUSE, NON-DURABLE: 0.11% 7,000 Central Garden & Pet Co.* 292,180 ------------ INDUSTRIAL DIVERSIFIED: 0.70% 40,000 GenCorp, Inc. 742,800 35,000 McRae Industries, Inc. - Class A 382,900 44,900 P & F Industries, Inc. - Class A* 683,782 ------------ 1,809,482 ------------ INDUSTRIAL SERVICES & DISTRIBUTORS: 0.73% 30,000 Avnet, Inc.* 547,200 75,000 Nu Horizons Electronics Corp.* 598,500 50,908 Spectrum Control, Inc.* 369,592 75,000 Trio-Tech International* 372,750 ------------ 1,888,042 ------------ INSURANCE, FULL LINE: 0.27% 10,000 Hartford Financial Services Group, Inc. 693,100 ------------ INSURANCE, LIFE: 0.47% 2,500 National Western Life Insurance Co. - Class A* 416,525 45,000 UnumProvident Corp. 807,300 ------------ 1,223,825 ------------ INSURANCE, PROPERTY & CASUALTY: 1.77% 20,000 Merchants Group, Inc. 480,000 10,500 MGIC Investment Corp. 723,555 30,000 PXRE Group LTD.# 756,300 11,500 Radian Group, Inc. 612,260 25,000 RTW, Inc.* 237,000 20,000 The Allstate Corp. 1,034,400 20,000 The St. Paul Travelers Companies, Inc. 741,400 ------------ 4,584,915 ------------ MARINE TRANSPORTATION/SHIPPING (NON-ENERGY): 0.44% 57,500 Sea Containers Ltd. - Class A# 1,132,175 ------------ MEDICAL SUPPLIES: 1.04% 15,000 Abbott Laboratories 699,750 25,000 Baxter International, Inc. 863,500 36,000 McKesson Corp. 1,132,560 ------------ 2,695,810 ------------ MERCHANT ENERGY PROVIDERS: 0.19% 125,000 Calpine Corp.* 492,500 ------------ NATURAL GAS: 0.17% 30,000 KCS Energy, Inc.* 443,400 ------------ OIL, EQUIPMENT & SERVICES: 1.88% 70,000 Key Energy Services, Inc.* 826,000 40,000 Maverick Tube Corp.* 1,212,000 30,000 Oceaneering International, Inc.* 1,119,600 20,000 Offshore Logistics, Inc.* 649,400 30,000 Tidewater Inc. 1,068,300 ------------ 4,875,300 ------------ OIL, EXPLORATION & PRODUCTION/DRILLING: 1.49% 35,000 GlobalSantaFe Corp.# 1,158,850 18,000 Nabors Industries, Ltd.* # 923,220 10,000 Rowan Companies, Inc.* 259,000 36,000 Transocean, Inc.*# 1,526,040 ------------ 3,867,110 ------------ OIL, INTEGRATED MAJORS: 0.87% 17,500 Anadarko Petroleum Corp. 1,134,175 30,000 Marathon Oil Corp. 1,128,300 ------------ 2,262,475 ------------ OIL, REFINERS: 2.11% 55,000 Giant Industries, Inc.* 1,458,050 40,000 Holly Corp. 1,114,800 45,000 Tesoro Petroleum Corp.* 1,433,700 32,000 Valero Energy Corp. 1,452,800 ------------ 5,459,350 ------------ OIL, SECONDARY: 0.55% 10,000 Apache Corp. 505,700 40,000 Vintage Petroleum, Inc. 907,600 ------------ 1,413,300 ------------ OIL, TRANSPORTATION/SHIPPING: 1.87% 12,500 Frontline LTD.# 554,500 10,000 Nordic American Tanker Shipping LTD.# 390,500 90,000 OMI Corp.# 1,516,500 15,000 Overseas Shipholding Group, Inc. 828,000 20,000 Teekay Shipping Corp. # 842,200 20,000 Tsakos Energy Navigation LTD.# 715,800 ------------ 4,847,500 ------------ OTHER NON-FERROUS: 0.59% 20,000 Inco, Ltd.*# 735,600 8,000 Phelps Dodge Corp. 791,360 ------------ 1,526,960 ------------ PAPER PRODUCTS: 0.27% 17,000 International Paper Co. 714,000 ------------ PHARMACEUTICALS: 2.07% 22,000 Bristol-Myers Squibb Co. 563,640 6,000 Eli Lilly & Co. 340,500 8,000 Forest Laboratories, Inc.* 358,880 18,500 Johnson & Johnson 1,173,270 50,000 King Pharmaceuticals, Inc.* 620,000 20,000 Merck & Co. Inc. 642,800 30,000 Pfizer, Inc. 806,700 20,000 Wyeth 851,800 ------------ 5,357,590 ------------ POLLUTION CONTROL/WASTE MANAGEMENT: 0.65% 100,000 Aleris International, Inc.* 1,692,000 ------------ PRECIOUS METALS: 0.28% 65,000 Stillwater Mining Co.* 731,900 ------------ RAILROADS: 1.49% 32,000 CSX Corp. 1,282,560 45,000 Norfolk Southern Corp. 1,628,550 14,000 Union Pacific Corp. 941,500 ------------ 3,852,610 ------------ REAL ESTATE INVESTMENT: 0.40% 60,000 HRPT Properties Trust 769,800 130,000 Jameson Inns, Inc.* 256,100 ------------ 1,025,900 ------------ RECREATIONAL PRODUCTS: 1.73% 50,000 Action Performance Companies, Inc. 549,500 15,000 Brunswick Corp. 742,500 30,000 Callaway Golf Co. 405,000 150,000 Concord Camera Corp.* 343,500 20,000 Eastman Kodak Co. 645,000 30,000 K2, Inc.* 476,400 55,000 The Nautilus Group, Inc. 1,329,350 ------------ 4,491,250 ------------ RESTAURANTS: 0.28% 25,000 Landry's Restaurants, Inc. 726,500 ------------ RETAILERS, APPAREL: 1.88% 33,000 Abercrombie & Fitch Co. - Class A 1,549,350 30,000 American Eagle Outfitters, Inc. 1,413,000 25,000 AnnTaylor Stores Corp.* 538,250 20,000 Burlington Coat Factory Warehouse Corp. 454,000 100,000 Goody's Family Clothing, Inc. 914,000 ------------ 4,868,600 ------------ RETAILERS, BROADLINE: 0.69% 24,000 J. C. Penney Company, Inc. 993,600 5,000 Nordstrom, Inc. 233,650 11,000 Sears, Roebuck and Co. 561,330 ------------ 1,788,580 ------------ RETAILERS, SPECIALTY: 2.40% 35,000 AutoNation, Inc.* 672,350 25,000 Claire's Stores, Inc. 531,250 25,000 Jo-Ann Stores, Inc. - Class B* 688,500 30,000 Michaels Stores, Inc. 899,100 16,000 OfficeMax, Inc. 502,080 8,000 TBC Corp.* 222,400 29,000 The Home Depot, Inc. 1,239,460 60,000 Toys "R" Us, Inc.* 1,228,200 20,000 Trans World Entertainment Corp.* 249,400 ------------ 6,232,740 ------------ SAVINGS & LOANS: 1.18% 15,000 Countrywide Financial Corp. 555,150 16,000 FirstFed Financial Corp.* 829,920 4,000 Golden West Financial Corp. 245,680 26,840 PVF Capital Corp. 370,392 25,000 Washington Mutual, Inc. 1,057,000 ------------ 3,058,142 ------------ SEMICONDUCTOR, CAPITAL EQUIPMENT: 3.23% 130,000 Aetrium, Inc.* 509,600 35,000 Brooks Automation, Inc.* 602,700 40,000 Cohu, Inc. 742,400 50,000 Credence Systems Corp.* 457,500 75,000 Electroglas, Inc.* 356,250 90,000 Kulicke and Soffa Industries, Inc.* 775,800 37,500 Lam Research Corp.* 1,084,125 60,000 Mattson Technology, Inc.* 675,600 25,000 Novellus Systems, Inc.* 697,250 25,000 Teradyne, Inc.* 426,750 35,976 Ultratech, Inc.* 678,148 23,000 Varian Semiconductor Equipment Associates, Inc.* 847,550 25,000 Veeco Instruments, Inc.* 526,750 ------------ 8,380,423 ------------ SEMICONDUCTOR, GRAPHICS CHIPS: 0.84% 60,000 ESS Technology, Inc.* 426,600 30,000 NVIDIA Corp.* 706,800 40,001 Trident Microsystems, Inc.* 668,817 163,900 Tvia, Inc.* 332,553 205,288 Vialta, Inc. - Class A* 48,243 ------------ 2,183,013 ------------ SEMICONDUCTOR, MICROPROCESSORS: 3.44% 70,000 Advanced Micro Devices, Inc.* 1,541,400 150,000 Atmel Corp.* 588,000 30,000 Cypress Semiconductor Corp.* 351,900 80,000 Dataram Corp.* 508,800 45,600 Diodes, Inc.* 1,031,928 115,000 Integrated Silicon Solution, Inc.* 943,000 20,000 International Rectifier Corp.* 891,400 60,000 Micron Technology, Inc.* 741,000 40,000 National Semiconductor Corp. 718,000 60,000 Silicon Storage Technology, Inc.* 357,000 20,000 Siliconix, Inc.* 729,800 21,000 Texas Instruments, Inc. 517,020 ------------ 8,919,248 ------------ SEMICONDUCTOR, PROGRAMMABLE LOGIC DEVICES: 0.60% 42,500 Genesis Microchip, Inc.* 689,350 75,000 Integrated Device Tech, Inc.* 867,000 ------------ 1,556,350 ------------ SOFTWARE: 4.94% 100,000 ActivCard Corp.* 890,000 170,500 American Software, Inc. - Class A 1,028,115 165,000 Apropos Technology, Inc.* 562,650 35,000 Ascential Software Corp.* 570,850 29,500 Aspect Communications Corp.* 328,630 170,000 Blue Martini Software, Inc.* 457,470 53,100 CAM Commerce Solutions, Inc.* 900,629 100,000 Captaris, Inc.* 516,000 16,000 Click Commerce, Inc.* 257,120 145,000 Compuware Corp.* 938,150 188,286 Corio, Inc.* 363,392 40,000 Electronics for Imaging, Inc.* 696,400 85,000 iPass, Inc.* 629,000 100,000 Keynote Systems, Inc.* 1,392,000 65,000 NetManage, Inc.* 419,250 290,000 Peerless Systems Corp.* 377,000 155,000 Quovadx, Inc.* 370,450 75,000 Roxio, Inc.* 705,000 20,000 SafeNet, Inc.* 734,800 100,000 Selectica, Inc.* 358,000 25,000 SonicWALL, Inc.* 158,000 200,000 VIA NET.WORKS, Inc.* 170,000 ------------ 12,822,906 ------------ STEEL: 0.82% 70,000 Ryerson Tull, Inc. 1,102,500 20,000 United States Steel Corp. 1,025,000 ------------ 2,127,500 ------------ TOBACCO: 1.12% 10,000 Altria Group, Inc. 611,000 90,000 Dimon, Inc. 604,800 13,500 Reynolds American, Inc. 1,061,100 13,000 UST, Inc. 625,430 ------------ 2,902,330 ------------ TOYS: 1.32% 25,000 Hasbro, Inc. 484,500 60,000 Mattel, Inc. 1,169,400 41,291 The Topps Co. 402,587 60,000 THQ, Inc.* 1,376,400 ------------ 3,432,887 ------------ TRANSPORTATION EQUIPMENT: 0.24% 18,000 Trinity Industries, Inc. 613,440 ------------ TRUCKING: 0.46% 15,000 Arkansas Best Corp. 673,350 9,500 Yellow Roadway Corp.* 529,245 ------------ 1,202,595 ------------ WIRELESS COMMUNICATIONS: 1.44% 75,000 Brightpoint, Inc.* 1,465,500 27,500 Nextel Communications, Inc.* 825,000 40,000 Nokia Corp. ADR 626,800 93,333 Vyyo, Inc.* 803,597 ------------ 3,720,897 ------------ Total Common Stocks (Cost $197,213,632) $254,513,146 ------------ Warrants: 0.01% --------------- 20,000 Air France ADR* Expiration July 2005, Exercise Price $20.00 (Acquired 5/5/2004, Cost $18,752) 22,800 ------------ Short-Term Investments: 2.10% ----------------------------- MONEY MARKET FUNDS: 2.10% 1,462,535 Dreyfus Treasury Prime Cash Management Fund - Investor Class 1,462,535 3,985,051 SEI Daily Income Treasury Government Fund - Class B 3,985,051 ------------ Total Short-Term Investments (Cost $5,447,586) 5,447,586 ------------ Total Investments in Securities (Cost $202,679,970): 100.26% 259,983,532 Liabilities in Excess of Other Assets: (0.26%) (676,557) ------------ Net Assets: 100.00% $259,306,975 ------------ ------------ * Non-income producing security. # U.S. security of a foreign issuer. ^ Affiliated Company; the fund owns 5% or more of the outstanding voting securities of the issuer. See Note 4. ADR - American Depositary Receipt See accompanying Notes to Financial Statements. AL FRANK DIVIDEND VALUE FUND SCHEDULE OF INVESTMENTS AT DECEMBER 31, 2004 Shares Common Stocks: 97.62% Market Value ------ --------------------- ------------ AEROSPACE & DEFENSE: 2.17% 9,500 Kaman Corp. - Class A $ 120,175 2,000 Lockheed Martin Corp. 111,100 2,300 The Boeing Co. 119,071 ----------- 350,346 ----------- AIRLINES: 0.66% 5,300 SkyWest, Inc. 106,318 ----------- ALUMINUM: 0.68% 3,500 Alcoa, Inc. 109,970 ----------- AUTOMOBILE MANUFACTURERS: 1.49% 8,500 Ford Motor Co. 124,440 2,900 General Motors Corp. 116,174 ----------- 240,614 ----------- AUTOMOBILE PARTS & EQUIPMENT: 2.20% 4,300 ArvinMeritor, Inc. 96,191 4,000 Cooper Tire & Rubber Co. 86,200 8,500 Delphi Corp. 76,670 9,900 Visteon Corp. 96,723 ----------- 355,784 ----------- BANKS: 2.98% 10,000 Capstead Mortgage Corp. 105,400 2,700 Citigroup, Inc. 130,086 3,200 JPMorgan Chase & Co. 124,832 3,200 National City Corp. 120,160 ----------- 480,478 ----------- BROKERAGES: 2.57% 1,400 Lehman Brothers Holdings, Inc. 122,472 1,400 Merrill Lynch & Co., Inc. 83,678 1,600 Morgan Stanley 88,832 1,150 The Goldman Sachs Group, Inc. 119,646 ----------- 414,628 ----------- BUILDING MATERIALS: 0.59% 2,800 International Aluminum Corp. 94,780 ----------- BUSINESS SERVICES: 1.65% 9,300 Ambassadors International, Inc. 146,289 19,000 Traffix, Inc. 120,650 ----------- 266,939 ----------- CHEMICALS, COMMODITY: 1.89% 2,700 E.I. Du Pont de Nemours and Co. 132,435 4,100 Olin Corp. 90,282 1,675 The Dow Chemical Co. 82,929 ----------- 305,646 ----------- CHEMICALS, SPECIALTY: 0.64% 9,600 Wellman, Inc. 102,624 ----------- CLOTHING/FABRICS: 2.95% 5,300 Delta Apparel, Inc. 128,525 4,700 Haggar Corp. 110,351 3,500 Kellwood Co. 120,750 6,000 Russell Corp. 116,880 ----------- 476,506 ----------- COMMUNICATIONS TECHNOLOGY: 0.75% 7,000 Motorola, Inc. 120,400 ----------- COMPUTERS/HARDWARE: 1.65% 9,800 AU Optronics Corp. ADR 140,336 6,000 Hewlett Packard Co. 125,820 ----------- 266,156 ----------- CREDIT CARDS: 0.75% 4,300 MBNA Corp. 121,217 ----------- DATA STORAGE/DISK DRIVES: 0.66% 6,200 Seagate Technology# 107,074 ----------- ELECTRICAL COMPONENTS & EQUIPMENT: 3.04% 4,900 American Power Conversion Corp. 104,860 9,700 AVX Corp. 122,220 40,000 Fedders Corp. 144,800 8,000 Frequency Electronics, Inc. 118,800 ----------- 490,680 ----------- ELECTRONIC MANUFACTURING SERVICES: 0.68% 5,700 Nam Tai Electronics, Inc. # 109,725 ----------- FINANCIAL SERVICES, DIVERSIFIED: 1.29% 1,200 Fannie Mae 85,452 2,500 H & R Block, Inc. 122,500 ----------- 207,952 ----------- FIXED LINE COMMUNICATIONS: 2.01% 4,500 AT&T Corp. 85,770 4,300 BellSouth Corp. 119,497 4,600 SBC Communications, Inc. 118,542 ----------- 323,809 ----------- FOOD MANUFACTURERS: 1.40% 4,600 Archer-Daniels-Midland Co. 102,626 5,100 Sara Lee Corp. 123,114 ----------- 225,740 ----------- FOOD RETAILERS: 0.75% 5,100 Albertson's, Inc. 121,788 ----------- FOOTWEAR: 0.60% 2,200 Reebok International LTD. 96,800 ----------- HEALTHCARE PROVIDERS: 0.74% 3,000 HCA, Inc. 119,880 ----------- HEAVY MACHINERY: 1.23% 1,000 Caterpillar, Inc. 97,510 1,350 Deere & Co. 100,440 ----------- 197,950 ----------- HOME CONSTRUCTION: 4.70% 3,300 D.R. Horton, Inc. 133,023 950 KB Home 99,180 2,700 Lennar Corp. - Class A 153,036 1,500 M.D.C. Holdings, Inc, 129,660 1,900 Ryland Group, Inc. 109,326 2,100 Standard Pacific Corp. 134,694 ----------- 758,919 ----------- HOME FURNISHINGS: 1.13% 4,450 Maytag Corp. 93,895 1,950 National Presto Industries, Inc. 88,725 ----------- 182,620 ----------- HOUSE, DURABLE: 0.79% 5,300 Newall Rubbermaid, Inc. 128,207 ----------- HOUSE, NON-DURABLE: 0.57% 1,800 Colgate-Palmolive Co. 92,088 ----------- INDUSTRIAL DIVERSIFIED: 0.50% 2,000 SPX Corp. 80,120 ----------- INDUSTRIAL SERVICES & DISTRIBUTORS: 0.69% 4,000 Cognex Corp. 111,600 ----------- INSURANCE, FULL LINE: 1.34% 1,800 Hartford Financial Services Group, Inc. 124,758 1,200 The Chubb Corp. 92,280 ----------- 217,038 ----------- INSURANCE, LIFE: 0.58% 5,200 UnumProvident Corp. 93,288 ----------- INSURANCE, PROPERTY & CASUALTY: 3.79% 3,900 American Financial Group, Inc. 122,109 5,000 PXRE Group LTD.# 126,050 2,400 The Allstate Corp. 124,128 3,300 The St. Paul Travelers Companies, Inc. 122,331 2,500 W.R. Berkley Corp. 117,925 ----------- 612,543 ----------- MARINE TRANSPORTATION/SHIPPING (NON-ENERGY): 0.83% 6,500 Sea Containers Ltd. - Class A# 127,985 253 Ship Finance International LTD# 5,192 ----------- 133,177 ----------- MEDICAL SUPPLIES: 2.14% 2,800 Abbott Laboratories 130,620 2,600 Baxter International, Inc. 89,804 4,000 McKesson Corp. 125,840 ----------- 346,264 ----------- OIL, EQUIPMENT & SERVICES: 0.53% 2,400 Tidewater Inc. 85,464 ----------- OIL, EXPLORATION & PRODUCTION/DRILLING: 0.55% 2,700 GlobalSantaFe Corp.# 89,397 ----------- OIL, INTEGRATED MAJORS: 3.61% 1,700 Anadarko Petroleum Corp. 110,177 2,200 ChevronTexaco Corp. 115,522 1,400 ConocoPhillips 121,562 2,400 Exxon Mobil Corp. 123,024 3,000 Marathon Oil Corp. 112,830 ----------- 583,115 ----------- OIL, REFINERS: 0.76% 2,700 Valero Energy Corp. 122,580 ----------- OIL, SECONDARY: 3.45% 2,400 Apache Corp. 121,368 2,000 Ashland, Inc. 116,760 3,100 Devon Energy Corp. 120,652 2,000 Kerr-McGee Corp. 115,580 1,700 Pogo Producing Co. 82,433 ----------- 556,793 ----------- OIL, TRANSPORTATION/SHIPPING: 2.80% 2,500 Frontline LTD.#. 110,900 3,200 Nordic American Tanker Shipping LTD.# 124,960 6,500 OMI Corp.# 109,525 3,000 Tsakos Energy Navigation LTD.# 107,370 ----------- 452,755 ----------- PAPER PRODUCTS: 0.78% 3,000 International Paper Co. 126,000 ----------- PHARMACEUTICALS: 5.22% 5,050 Bristol-Myers Squibb Co. 129,381 2,100 Eli Lilly & Co. 119,175 1,900 Johnson & Johnson 120,498 3,900 Merck & Co. Inc. 125,346 6,700 Mylan Laboratories, Inc. 118,456 4,100 Pfizer, Inc. 110,249 2,800 Wyeth 119,252 ----------- 842,357 ----------- RAILROADS: 2.68% 1,900 Burlington Northern Santa Fe Corp. 89,889 3,200 CSX Corp. 128,256 2,600 Norfolk Southern Corp. 94,094 1,800 Union Pacific Corp. 121,050 ----------- 433,289 ----------- RECREATIONAL PRODUCTS: 2.70% 11,000 Action Performance Companies, Inc. 120,890 7,400 Callaway Golf Co. 99,900 3,500 International Game Technology 120,330 3,400 The Walt Disney Co. 94,520 ----------- 435,640 ----------- RESTAURANTS: 0.56% 2,800 McDonald's Corp. 89,768 ----------- RETAILERS, APPAREL: 2.26% 13,500 Goody's Family Clothing, Inc. 123,390 6,800 The Finish Line, Inc. 124,440 4,300 The Talbots, Inc. 117,089 ----------- 364,919 ----------- RETAILERS, BROADLINE: 3.08% 4,100 Family Dollar Stores, Inc. 128,043 2,200 J. C. Penney Company, Inc. 91,080 4,200 May Department Stores Co. 123,480 2,000 Nordstrom, Inc. 93,460 1,200 Sears, Roebuck and Co. 61,236 ----------- 497,299 ----------- RETAILERS, SPECIALTY: 2.81% 5,500 Claire's Stores, Inc. 116,875 3,900 OfficeMax, Inc. 122,382 2,800 The Home Depot, Inc. 119,672 5,600 The Pep Boys - Manny, Moe & Jack 95,592 ----------- 454,521 ----------- SAVINGS & LOANS: 1.66% 3,800 Countrywide Financial Corp. 140,638 3,000 Washington Mutual, Inc. 126,840 ----------- 267,478 ----------- SEMICONDUCTOR, CAPITAL EQUIPMENT: 0.78% 6,800 Cohu, Inc. 126,208 ----------- SEMICONDUCTOR, MICROPROCESSORS: 2.07% 5,600 Intel Corp. 130,984 5,100 National Semiconductor Corp. 91,545 4,500 Texas Instruments, Inc. 110,790 ----------- 333,319 ----------- SEMICONDUCTOR, PROGRAMMABLE LOGIC DEVICES: 1.26% 2,000 Maxim Integrated Products, Inc. 84,780 4,000 Xilinx, Inc. 118,600 ----------- 203,380 ----------- SOFT DRINKS: 0.64% 2,475 The Coca-Cola Co. 103,034 ----------- SOFTWARE: 1.46% 20,000 American Software, Inc. - Class A 120,600 4,300 Microsoft Corp. 114,853 ----------- 235,453 ----------- STEEL: 2.00% 2,000 Nucor Corp. 104,680 7,000 Ryerson Tull, Inc. 110,250 2,100 United States Steel Corp. 107,625 ----------- 322,555 ----------- TOBACCO: 1.40% 1,675 Altria Group, Inc. 102,343 18,300 Dimon, Inc. 122,976 ----------- 225,319 ----------- TOYS: 0.76% 6,300 Mattel, Inc. 122,787 ----------- WIRELESS COMMUNICATIONS: 0.72% 7,400 Nokia Corp. ADR 115,958 ----------- Total Common Stocks (Cost $14,530,669) 15,759,056 ----------- Short-Term Investments: 3.86% ----------------------------- MONEY MARKET FUNDS: 3.86% 623,576 SEI Daily Income Treasury Government Fund - Class B 623,576 ----------- Total Short-Term Investments (Cost $623,576) 623,576 ----------- Total Investments in Securities (Cost $15,154,245): 101.48% 16,382,632 Liabilities in Excess of Other Assets: (1.48%) (238,943) ----------- Net Assets: 100.00% $16,143,689 ----------- ----------- # U.S. security of a foreign issuer. ADR - American Depositary Receipt See accompanying Notes to Financial Statements. AL FRANK FUNDS STATEMENT OF ASSETS AND LIABILITIES AT DECEMBER 31, 2004 AL FRANK AL FRANK DIVIDEND FUND VALUE FUND -------- ---------- ASSETS Investments in securities, at value: Non-affiliates (cost $202,225,522 and $15,154,245, respectively) $259,556,732 $16,382,632 Affiliates (cost $454,448 and $0, respectively) 426,800 -- ------------ ----------- Total investments in securities, at value 259,983,532 16,382,632 ------------ ----------- Cash 2,639 -- Receivables: Securities sold 930,830 -- Fund shares sold 616,879 215,302 Dividends and interest 168,400 25,846 Prepaid expenses 25,480 16,862 ------------ ----------- Total assets 261,727,760 16,640,642 ------------ ----------- LIABILITIES Payables: Securities purchased 1,799,715 458,545 Fund shares redeemed 205,100 382 Dividends and other distributions -- 47 Due to advisor 213,030 5,196 Distribution and service fees 53,257 3,081 Custody fees 36,884 123 Transfer agent fees and expenses 30,166 3,717 Administration fees 23,391 2,465 Fund accounting fees 13,402 2,892 Audit fees 22,000 15,501 Accrued expenses 23,840 5,004 ------------ ----------- Total liabilities 2,420,785 496,953 ------------ ----------- NET ASSETS $259,306,975 $16,143,689 ------------ ----------- ------------ ----------- CALCULATION OF NET ASSET VALUE PER SHARE Net assets applicable to shares outstanding $259,306,975 $16,143,689 Shares issued and outstanding [unlimited number of shares (par value $0.01) authorized] 9,118,852 1,460,182 ------------ ----------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 28.44 $ 11.06 ------------ ----------- ------------ ----------- COMPONENTS OF NET ASSETS Paid in capital $202,425,105 $14,923,297 Accumulated net realized loss on investments (421,692) (7,995) Net unrealized appreciation on investments 57,303,562 1,228,387 ------------ ----------- Net assets $259,306,975 $16,143,689 ------------ ----------- ------------ -----------
See accompanying Notes to Financial Statements. AL FRANK FUNDS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31, 2004 AL FRANK AL FRANK DIVIDEND FUND VALUE FUND* -------- --------------- INVESTMENT INCOME Income Dividends (Net of foreign taxes withheld of $10,783 and $0, respectively) $ 2,841,830 $ 73,656 Interest 102,402 3,287 ----------- ---------- Total income 2,944,232 76,943 ----------- ---------- Expenses Advisory fees (Note 3) 2,469,167 28,063 Distribution fees (Note 5) 617,292 7,016 Administration fees (Note 3) 273,869 5,713 Transfer agent fees 261,971 3,717 Custody fees 94,012 1,907 Fund accounting fees 69,481 5,541 Reports to shareholders 61,074 2,521 Registration expense 39,572 5,545 Professional fees 30,273 17,013 Miscellaneous 24,000 1,511 Trustee fees 14,994 1,765 Insurance expense 9,242 504 ----------- ---------- Total expenses 3,964,947 80,816 Less: reimbursed by advisor (Note 3) -- (25,252) ----------- ---------- Net expenses 3,964,947 55,564 ----------- ---------- NET INVESTMENT INCOME/(LOSS) (1,020,715) 21,379 ----------- ---------- REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS Net realized gain/(loss) on investments Non-affiliates 1,632,398 (7,995) Affiliated companies (97,121) -- Net change in unrealized appreciation on investments 27,531,072 1,228,387 ----------- ---------- Net realized and unrealized gain on investments 29,066,349 1,220,392 ----------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $28,045,634 $1,241,771 ----------- ---------- ----------- ----------
* Commencement of operations September 30, 2004. See accompanying Notes to Financial Statements. AL FRANK FUND STATEMENTS OF CHANGES IN NET ASSETS Year Ended Year Ended December 31, December 31, 2004 2003 ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment loss $ (1,020,715) $ (520,686) Net realized gain on investments 1,535,277 1,312,926 Net change in unrealized appreciation on investments 27,531,072 40,324,322 ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 28,045,634 41,116,562 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS From net realized gain on investments (75,802) -- ------------ ------------ TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net increase in net assets derived from net change in outstanding shares (a) 50,957,105 90,791,683 ------------ ------------ TOTAL INCREASE IN NET ASSETS 78,926,937 131,908,245 ------------ ------------ NET ASSETS Beginning of year 180,380,038 48,471,793 ------------ ------------ END OF YEAR $259,306,975 $180,380,038 ------------ ------------ ------------ ------------ Accumulated net investment income -- -- ------------ ------------
(a) A summary of share transactions is as follows: Year Year Ended Ended December 31, 2004 December 31, 2003 ----------------------------- ------------------------------ Shares Paid in Capital Shares Paid in Capital ------------ --------------- ------------ --------------- Shares sold 7,821,456 $200,294,494 5,061,932 $112,953,852 Shares issued on reinvestment of distributions 2,520 71,267 -- -- Shares redeemed* (6,049,722) (149,408,656) (1,230,776) (22,162,169) ---------- ------------ ---------- ------------ Net increase 1,774,254 $ 50,957,105 3,831,156 $ 90,791,683 ---------- ------------ ---------- ------------ ---------- ------------ ---------- ------------ * Net of redemption fees of $ 209,930 $ 131,470 ------------ ------------ ------------ ------------
See accompanying Notes to Financial Statements. AL FRANK DIVIDEND VALUE FUND STATEMENT OF CHANGES IN NET ASSETS September 30, 2004** to December 31, 2004 ------------------------- INCREASE/(DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment income $ 21,379 Net realized loss on investments (7,995) Net change in unrealized appreciation on investments 1,228,387 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,241,771 ----------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (24,563) ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net increase in net assets derived from net change in outstanding shares (a) 14,926,481 ----------- TOTAL INCREASE IN NET ASSETS 16,143,689 ----------- NET ASSETS Beginning of period -- ----------- END OF PERIOD $16,143,689 ----------- ----------- Accumulated net investment income $ -- ----------- (a) A summary of share transactions is as follows: September 30, 2004** to December 31, 2004 --------------------------------- Shares Paid in Capital ------------ --------------- Shares sold 1,476,057 $15,094,761 Shares issued on reinvestment of distributions 2,078 22,898 Shares redeemed* (17,953) (191,178) --------- ----------- Net increase 1,460,182 $14,926,481 --------- ----------- --------- ----------- * Net of redemption fees of $ 28 ----------- ----------- ** Commencement of operations. See accompanying Notes to Financial Statements. AL FRANK FUND FINANCIAL HIGHLIGHTS - FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR Year Ended December 31, ---------------------------------------------------------------- 2004 2003 2002 2001 2000 ---- ---- ---- ---- ---- Net asset value, beginning of year $24.56 $13.80 $18.77 $14.58 $14.55 ------ ------ ------ ------ ------ Income from investment operations: Net investment loss (0.11) (0.07) (0.23) (0.13) (0.08) Net realized and unrealized gain/(loss) on investments 3.98 10.81 (4.66) 4.47 1.18 ------ ------ ------ ------ ------ Total from investment operations 3.87 10.74 (4.89) 4.34 1.10 ------ ------ ------ ------ ------ Less distributions: From net realized gain on investments (0.01) -- (0.09) (0.15) (1.07) ------ ------ ------ ------ ------ Redemption fees retained 0.02 0.02 0.01 -- -- ------ ------ ------ ------ ------ Net asset value, end of year $28.44 $24.56 $13.80 $18.77 $14.58 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total return 15.83% 77.97% (25.99%) 29.83% 6.91% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (thousands) $259,307 $180,380 $48,472 $47,243 $19,826 Ratio of expenses to average net assets 1.61% 1.79% 2.25% 2.25% 2.25% Ratio of net investment loss to average net assets (0.41%) (0.74%) (1.34%) (1.15%) (0.79%) Portfolio turnover rate 24.59% 13.64% 28.14% 18.11% 30.17%
See accompanying Notes to Financial Statements. AL FRANK DIVIDEND VALUE FUND FINANCIAL HIGHLIGHTS - FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD September 30, 2004* to December 31, 2004 ------------------------ Net asset value, beginning of period $10.00 ------ Income from investment operations: Net investment gain 0.02 Net realized and unrealized gain on investments 1.06 ------ Total from investment operations 1.08 ------ Less distributions: From net investment income (0.02) ------ Redemption fees retained 0.00# ------ Net asset value, end of period $11.06 ------ ------ Total return 10.77%+ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) $16,144 Ratio of expenses to average net assets: Before expense reimbursement 2.84%** After expense reimbursement 1.98%** Ratio of net investment loss to average net assets: After expense reimbursement 0.75%** Portfolio turnover rate 1.57%+ * Commencement of operations. ** Annualized. + Not Annualized. # Amount is less than $0.01. See accompanying Notes to Financial Statements. AL FRANK FUNDS NOTES TO FINANCIAL STATEMENTS AT DECEMBER 31, 2004 NOTE 1 - ORGANIZATION The Al Frank Fund and the Al Frank Dividend Value Fund (the "Funds") are each diversified series of shares of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as an open-end management investment company. The investment objective of the Al Frank Fund is to seek growth of capital, which it attempts to achieve by investing in out of favor and undervalued equity securities. The investment objective of the Al Frank Dividend Value Fund is long-term total return from both capital appreciation and, secondarily, dividend income which it seeks to achieve by investing in dividend-paying equity securities that it believes are out of favor and undervalued. The Al Frank Fund and the Al Frank Dividend Value Fund commenced operations on January 2, 1998 and September 30, 2004, respectively. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with accounting principles generally accepted in the United States of America. A. Security Valuation: The Funds' 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 using the NASDAQ Official Closing Price ("NOCP"). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Over-the-counter ("OTC") securities which are not traded in the NASDAQ National Market System shall be valued at the most recent trade price. Securities for which market quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value. B. Federal Income Taxes: It is the Funds' policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. Security Transactions, Dividends and Distributions: Security transactions are accounted for on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differs from accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their Federal tax treatment. D. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. E. Reclassification of Capital Accounts: The Funds account and report for distributions to shareholders in accordance with the American Institute of Certified Public Accountant's Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital and Return of Capital Distributions by Investment Companies. For the year ended December 31, 2004, the Al Frank Fund decreased accumulated net investment loss and paid in capital by $1,020,715 and $1,111,042, respectively, and decreased accumulated net realized loss by $90,327 due to certain permanent book and tax differences. Net assets were not affected by the change. For the period ended December 31, 2004, the Al Frank Dividend Value Fund decreased accumulated net investment loss and paid in capital by $3,184. Net assets were not affected by the change. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER AGREEMENTS For period ended December 31, 2004, Al Frank Asset Management, Inc. (the "Advisor") provided the Funds 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 1.00% based upon the average daily net assets of each Fund. For the period ended December 31, 2004, the Al Frank Fund and the Al Frank Dividend Value Fund incurred $2,469,167 and $28,063 respectively, in advisory fees. The Funds are responsible for their own operating expenses. For the period ended December 31, 2004, the Advisor agreed to reduce fees payable to it by the Funds and to pay Funds operating expenses to the extent necessary to limit each Fund's aggregate annual operating expenses to 1.98% of average net assets. Any such reduction made by the Advisor in its fees or payment of expenses which are a 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 each 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 period ended December 31, 2004, there were no expenses of the Al Frank Fund subject to recapture pursuant to the aforementioned conditions. For the period ended December 31, 2004, the Advisor reduced its fees and absorbed Fund expenses in the amount of $25,252 for the Al Frank Dividend Value Fund; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $25,252 and expire in the year 2009. U.S. Bancorp Fund Services, LLC (the "Administrator") acts as the Funds' Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Funds; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Funds' custodian, transfer agent and accountants; coordinates the preparation and payment of the Funds' expenses and reviews the Funds' 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 For the period ended December 31, 2004, the Al Frank Fund and the Al Frank Dividend Value Fund incurred $273,869 and $5,713, respectively, in administration fees. U.S. Bancorp Fund Services, LLC also serves as the fund accountant and transfer agent to the Funds. U.S. Bank, N.A., an affiliate of U.S. Bancorp Fund Services, serves as the Funds' custodian. Quasar Distributors, LLC (the "Distributor") acts as the Funds' principal underwriter in a continuous public offering of the Funds' shares. Certain officers of the Funds are also officers of the Administrator and Distributor. NOTE 4 - OTHER AFFILIATES Investments representing 5% or more of the outstanding securities of a portfolio company result in that company being considered an affiliated company, as defined in the 1940 Act. The aggregate market value of all securities of affiliated companies as of December 31, 2004 amounted to $426,800 representing 0.16% of net assets. Transactions during the year ended December 31, 2004 in which the issuer was an "affiliated person" are as follows: SMITH-MIDLAND CORP. ------------------- Beginning Shares 300,000 Beginning Cost $ 396,872 Purchase Cost $ 218,576 Sales Cost $(161,000) --------- Ending Cost $ 454,448 --------- Ending Shares 440,000 Dividend Income $ -- Net Realized Loss $ 97,121 NOTE 5 - DISTRIBUTION COSTS The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 (the "Plan"). The Plan permits the Funds to pay for distribution and related expenses at an annual rate of up to 0.25% of each Fund's average daily net assets annually. The expenses covered by the Plan may include the cost of preparing and distributing prospectuses and other sales material, advertising and public relations expenses, payments to financial intermediaries and compensation of personnel involved in selling shares of the Funds. Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred. Pursuant to a distribution coordination agreement adopted under the Plan, distribution fees are paid to the Advisor as "Distribution Coordinator". For the period ended December 31, 2004, the Al Frank Fund and the Al Frank Dividend Value Fund paid the Distribution Coordinator $617,292 and $7,016, respectively. NOTE 6 - PURCHASES AND SALES OF SECURITIES For the year ended December 31, 2004, the cost of purchases and the proceeds from sales of securities, excluding short-term securities for the Al Frank Fund, were $113,276,503 and $56,728,532, respectively. For the period ended December 31, 2004, the cost of purchases and the proceeds from sales of securities, excluding short-term securities for the Al Frank Dividend Value Fund, were $14,697,839 and $158,803, respectively. NOTE 7 - 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. The tax character of distributions paid during the years ended December 31, 2004 and 2003 for the Al Frank Fund were as follows: 2004 2003 ---- ---- Long-term capital gains $75,802 -- The tax character of distributions paid during the period ended December 31, 2004 for the Al Frank Dividend Value Fund was as follows: 2004 ---- Ordinary Income $24,563 As of December 31, 2004, the components of accumulated earnings/(losses) on a tax basis were as follows: Al Frank Al Frank Dividend Value Fund Fund -------- -------------- Cost of investments $202,825,386 $15,154,245 ------------ ----------- Gross tax unrealized appreciation 70,558,627 1,371,996 Gross tax unrealized depreciation (13,400,481) (143,609) ------------ ----------- Net tax unrealized appreciation $ 57,158,146 $ 1,228,387 ------------ ----------- ------------ ----------- Undistributed ordinary income $ -- $ -- Undistributed long-term capital gain -- -- ------------ ----------- Total distributable earnings $ -- $ -- ------------ ----------- ------------ ----------- Other accumulated gains/losses $ (276,276) $ (7,995) ------------ ----------- Total accumulated earnings/(losses) $ 56,881,870 $ 1,220,392 ------------ ----------- ------------ ----------- The Al Frank Fund had a capital loss carryforward of $165,326 which expires in 2010 and post October losses of $110,950. The Al Frank Dividend Value Fund had a capital loss carryforward of $7,995 which expires in 2012. AL FRANK FUNDS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE SHAREHOLDERS OF AND BOARD OF TRUSTEES ADVISORS SERIES TRUST MILWAUKEE, WISCONSIN We have audited the accompanying statements of assets and liabilities of Al Frank Fund and Al Frank Dividend Value Fund, each a series of Advisors Series Trust, including the schedules of investments as of December 31, 2004, and with respect to the Al Frank Fund, the statement of operations for the year then ended, and the statements of changes in net assets and financial highlights for each of the two years in the period then ended, and with respect to the Al Frank Dividend Value Fund, the statement of operations, the statement of changes in net assets, and financial highlights for the period September 30, 2004 (commencement of operations) to December 31, 2004. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of Al Frank Fund for each of the three years in the period ended December 31, 2002 have been audited by other auditors, whose report dated February 21, 2003 expressed an unqualified opinion on such financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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, 2004 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 audits provide 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 Al Frank Fund and Al Frank Dividend Value Fund as of December 31, 2004, the results of their operations, the changes in their net assets and their financial highlights for the periods referred to above, in conformity with accounting principles generally accepted in the United States of America. TAIT, WELLER & BAKER PHILADELPHIA, PENNSYLVANIA FEBRUARY 23, 2005 AL FRANK FUNDS NOTICE TO SHAREHOLDERS AT DECEMBER 31, 2004 (UNAUDITED) For the period ended December 31, 2004, certain dividends paid by the Al Frank Dividend Value Fund may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from net investment income designated as qualified dividend income was 100%. For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the period ended December 31, 2004 was 100%. HOW TO OBTAIN A COPY OF THE FUNDS' PROXY VOTING POLICIES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling (888) 263-6443 or on the SEC's website at http://www.sec.gov. HOW TO OBTAIN A COPY OF THE AL FRANK FUND'S PROXY VOTING RECORDS FOR THE 12- MONTH PERIOD ENDED JUNE 30, 2004 Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2004 is available without charge, upon request, by calling (888) 263-6443. Furthermore, you can obtain the Fund's proxy voting records on the SEC's website at http://www.sec.gov. - ------------------ QUARTERLY FILINGS ON FORM N-Q The Al Frank Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q is available on the SEC's website at http://www.sec.gov. The ------------------ Fund's Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Beginning with the quarter ended March 31, 2005, the Al Frank Dividend Value Fund will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q may be reviewed and copies at the SEC's Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Information included in the Funds' N-Q is also available by calling (888) 263-6443. AL FRANK FUNDS INFORMATION ABOUT TRUSTEES AND OFFICERS (UNAUDITED) This chart provides information about the Trustees and Officers who oversee your Funds. Officers elected by the Trustees manage the day-to-day operations of the Funds and execute policies formulated by the Trustees. INDEPENDENT TRUSTEES NAME, AGE NUMBER OF ADDRESS PORTFOLIOS POSITION HELD WITH FUNDS TRUSTEE OVERSEEN PRINCIPAL OCCUPATION(S) AND OTHER OF FUNDS IN FUND DIRECTORSHIPS DURING PAST FIVE YEARS SINCE COMPLEX* - ------------------------------------ -------- ------------- Walter E. Auch, Born 1921 1997 2 2020 E. Financial Way Glendora, CA 91741 Trustee Management Consultant. Other Directorships: Nicholas-Applegate Funds, Citigroup, Pimco Advisors, LLP and Senele Group James Clayburn LaForce, Born 1928 2002 2 2020 E. Financial Way Glendora, CA 91741 Trustee 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, Black Rock Funds, Jacobs Engineering, Arena Pharmaceuticals, Cancervax Donald E. O'Connor, Born 1936 1997 2 2020 E. Financial Way Glendora, CA 91741 Trustee 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 2 2020 E. Financial Way Glendora, CA 91741 Trustee Retired; formerly President, Hotchkis and Wiley Funds (mutual funds) from 1985 to 1993. Trustee: E*Trade Funds George T. Wofford III, Born 1939 1997 2 2020 E. Financial Way Glendora, CA 91741 Trustee 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 2 2020 E. Financial Way Glendora, CA 91741 Interested Trustee, President Senior Vice President, U.S. Bancorp Fund Services, LLC, the Funds' administrator (since July 2001); Treasurer, Investec Funds; formerly, Executive Vice President, Investment Company Administration, LLC ("ICA") (The Funds' former administrator). Robert M. Slotky, Born 1947 1997 2 2020 E. Financial Way Glendora, CA 91741 Chief Compliance Officer Vice President, U.S. Bancorp Fund Services, LLC, the Funds' administrator (since July 2001); formerly Senior Vice President, ICA (the Funds' former administrator). Rodney A. DeWalt, Born 1967 2003 2 615 E. Michigan Street Milwaukee, WI 53202 Secretary Legal and Compliance Administrator, U.S. Bancorp Fund Services, LLC (since January 2003); Thrivent Financial for Lutherans from 2000 to 2003; Attorney Private Practice, 1997 to 2000. Douglas G. Hess, Born 1967 2003 2 615 E. Michigan Street Milwaukee, WI 53202 Treasurer Vice President Compliance and Administration, U.S. Bancorp Fund Services, LLC (since March 1997).
* The Trust is comprised of numerous portfolios managed by unaffiliated investment advisors. The term "Fund Complex" applies only to the Al Frank Funds. The Funds do not hold themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment advisor with any other series. ADVISOR Al Frank Asset Management, Inc. 32392 Coast Highway, Suite 260 Laguna Beach, CA 92651 www.alfrankfunds.com DISTRIBUTOR Quasar Distributors, LLC 615 East Michigan Street Milwaukee, WI 53202 TRANSFER AGENT U.S. Bancorp Fund Services, LLC. 615 East Michigan Street Milwaukee, WI 53202 (888) 263-6443 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Tait, Weller & Baker 1818 Market Street, Suite 2400 Philadelphia, PA 19103 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 55 Second Street, 24th Floor San Francisco, CA 94105 This report is intended for shareholders of the Funds and may not be used as sales literature unless preceded or accompanied by a current prospectus. Statements and other information herein are dated and are subject to change. ITEM 2. CODE OF ETHICS. - ----------------------- The registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the registrant's Code of Ethics is filed herewith. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. - ---------------------------------------- The registrant's board of trustess has determined that it does not have an audit committee financial expert serving on its audit committee. At this time, the registrant believes that the experience provided by each member of the audit committee together offers the registrant adequate oversight for the registrant's level of financial complexity. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. - ----------------------------------------------- The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. "Audit services" refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. "Audit-related services" refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. "Tax services" refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. There were no "Other Services" provided by the principal accountant. The following table details the aggregate fees billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant. FYE 12/31/2004 FYE 12/31/2003 --------------- --------------- Audit Fees $33,500 $13,000 Audit-Related Fees N/A N/A Tax Fees $4,000 $2,000 All Other Fees N/A N/A The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant. All of the principal accountant's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal accountant. The following table indicates the non-audit fees billed by the registrant's accountant for services to the registrant and to the registrant's investment adviser (and any other controlling entity, etc.--not sub-adviser) for the last two years. The audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant's independence. Non-Audit Related Fees FYE 12/31/2004 FYE 12/31/2003 - ---------------------- --------------- --------------- Registrant N/A N/A Registrant's Investment Adviser N/A N/A ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. - ---------------------------------------------- Not applicable to open-end investment companies. ITEM 6. SCHEDULE OF INVESTMENTS. - -------------------------------- Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END - ------------------------------------------------------------------------- MANAGEMENT INVESTMENT COMPANIES. - -------------------------------- Not applicable to open-end investment companies. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES - ------------------------------------------------------------------------ Not applicable to open-end investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT - --------------------------------------------------------------------------- COMPANY AND AFFILIATED PURCHASES. - --------------------------------- Not applicable to open-end investment companies. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. - ------------------------------------------------------------ The registrant's independent trustees serve as its nominating committee, however, they do not make use of a nominating committee charter. THERE HAVE BEEN NO MATERIAL CHANGES TO THE PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES. ITEM 11. CONTROLS AND PROCEDURES. - --------------------------------- (a) The Registrant's President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "1940 Act")) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended. ITEM 12. EXHIBITS. - ----------------- (a) (1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith. (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. (3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies. (b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished 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 3/4/05 ---------------- 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. By (Signature and Title)* /s/ Eric M. Banhazl -------------------------- Eric M. Banhazl, President Date 3/4/05 ---------------- By (Signature and Title)* /s/ Douglas G. Hess -------------------------- Douglas G. Hess, Treasurer Date 3/4/05 ---------------- * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 2 taff-ex99codeeth.txt EXHIBIT A - --------- ADVISORS SERIES TRUST CODE OF ETHICS FOR PRINCIPAL EXECUTIVE OFFICER & PRINCIPAL FINANCIAL OFFICER Advisors Series Trust (the "Trust") requires its Principal Executive Officer, Principal Financial Officer, or other Trust officers performing similar functions (the "Principal Officers"), to maintain the highest ethical and legal standards while performing their duties and responsibilities to the Trust and each of its series (each a "Fund," collectively the "Funds"), with particular emphasis on those duties that relate to the preparation and reporting of the financial information of the Funds. The following principles and responsibilities shall govern the professional conduct of the Principal Officers: 1. HONEST AND ETHICAL CONDUCT. The Principal Officers shall act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships, and shall report any material transaction or relationship that reasonably could be expected to give rise to such conflict between their interests and those of a Fund to the Audit Committee, the full Board of Trustees of the Trust, and, in addition, to any other appropriate person or entity that may reasonably be expected to deal with any conflict of interest in timely and expeditious manner. The Principal Officers shall act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing their independent judgment to be subordinated or compromised. 2. FINANCIAL RECORDS AND REPORTING The Principal Officers shall provide full, fair, accurate, timely and understandable disclosure in the reports and/or other documents to be filed with or submitted to the Securities and Exchange Commission or other applicable body by a Fund, or that is otherwise publicly disclosed or communicated. The Principal Officers shall comply with applicable rules and regulations of federal, state, and local governments, and other appropriate private and public regulatory agencies. The Principal Officers shall respect the confidentiality of information acquired in the course of their work and shall not disclose such information except when authorized or legally obligated to disclose. The Principal Officers will not use confidential information acquired in the course of their duties as Principal Officers. The Principal Officers shall share knowledge and maintain skills important and relevant to the Trust's needs; shall proactively promote ethical behavior of the Trust's employees and as a partner with industry peers and associates; and shall maintain control over and responsibly manage assets and resources employed or entrusted to them by the Trust. 3. COMPLIANCE WITH LAWS, RULES AND REGULATIONS The Principal Officers shall establish and maintain mechanisms to oversee the compliance of the Funds with applicable federal, state or local law, regulation or administrative rule, and to identify, report and correct in a swift and certain manner, any detected deviations from applicable federal, state or local law regulation or rule. 4. COMPLIANCE WITH THIS CODE OF ETHICS The Principal Officers shall promptly report any violations of this Code of Ethics to the Audit Committee as well as the full Board of Trustees of the Trust and shall be held accountable for strict adherence to this Code of Ethics. A proven failure to uphold the standards stated herein shall be grounds for such sanctions as shall be reasonably imposed by the Board of Trustees of the Trust. 5. AMENDMENT AND WAIVER This Code of Ethics may only be amended or modified by approval of the Board of Trustees. Any substantive amendment that is not technical or administrative in nature or any material waiver, implicit or otherwise, of any provision of this Code of Ethics, shall be communicated publicly in accordance with Item 2 of Form N-CSR under the Investment Company Act of 1940. EX-99.CERT 3 taff-ex99cert302.txt CERTIFICATIONS -------------- I, Eric M. Banhazl, certify that: 1. I have reviewed this report on Form N-CSR of 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 3/4/05 /s/ Eric M. Banhazl ------------ ------------------- Eric M. Banhazl President CERTIFICATIONS -------------- I, Douglas G. Hess, certify that: 1. I have reviewed this report on Form N-CSR of 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 3/4/05 /s/ Douglas G. Hess ------------ ------------------- Douglas G. Hess Treasurer EX-99.906 CERT 4 taff-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 the Advisors Series Trust, does hereby certify, to such officer's knowledge, that the report on Form N-CSR of the Advisors Series Trust for the year ended December 31, 2004 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Advisors Series Trust for the stated period. /s/ Eric M. Banhazl /s/ Douglas G. Hess - ------------------- ------------------- Eric M. Banhazl Douglas G. Hess President, Advisors Series Trust Treasurer, Advisors Series Trust Dated: 3/4/05 -------------- 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-----