-----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, LCOIBc7hsCfOt7xmsdW+TUob4J0GBLQPnj5ot1WI0q8tPBloB8mWLKWzJJx+5mYD 3CxC0wmSQ+Ml2OA9rvgPvg== 0000898531-06-000109.txt : 20060310 0000898531-06-000109.hdr.sgml : 20060310 20060310150008 ACCESSION NUMBER: 0000898531-06-000109 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051231 FILED AS OF DATE: 20060310 DATE AS OF CHANGE: 20060310 EFFECTIVENESS DATE: 20060310 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07959 FILM NUMBER: 06679018 BUSINESS ADDRESS: STREET 1: U.S BANCORP FUND SERVICES, LLC STREET 2: 615 E MICHIGAN STREET CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 414-765-5340 MAIL ADDRESS: STREET 1: 615 E MICHIGAN STREET STREET 2: MK-WI-LC2 CITY: MILWAUKEE STATE: WI ZIP: 53202 0001027596 S000005078 McCarthy Multi-Cap Stock Fund C000013865 Institutional Class MGAMX N-CSRS 1 mmcsf-ncsrse.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 EAST 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: JUNE 30, 2006 ------------- Date of reporting period: DECEMBER 31, 2005 ----------------- ITEM 1. REPORT TO STOCKHOLDERS. - ------------------------------ MCCARTHY MULTI-CAP STOCK FUND (MGAMX) (MCCARTHY MULTI-CAP STOCK FUND LOGO) Semi-Annual Report For the Six Months Ended December 31, 2005 MCCARTHY MULTI-CAP STOCK FUND, A SERIES OF ADVISORS SERIES TRUST (MGAMX) SEMI-ANNUAL LETTER TO SHAREHOLDERS DECEMBER 31, 2005 Dear Fellow Shareholder: The McCarthy Multi-Cap Stock Fund's (the "Fund," ticker: MGAMX) performance for various periods ended December 31, 2005, and the performance for the Standard & Poor's 500 Index (the "Index" or the " S&P 500"), with dividends reinvested, are shown below: MCCARTHY MULTI-CAP STANDARD & POOR'S MGAMX TIME PERIOD STOCK FUND 500 INDEX VERSUS INDEX - ----------- ---------- ----------------- ------------ Six months 7.38% 5.77% +1.61% One year 8.04% 4.91% +3.13% Three years annualized 16.66% 14.39% +2.27% Annualized since 8/6/01 inception date 4.91% 2.64% +2.27% Cumulative since 8/6/01 inception date 23.52% 12.17% +11.35%
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. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED BY VISITING WWW.MGAMX.COM. A number of legendary investors and stock market gurus have opined that the S&P 500 (the "market") may provide modest investment returns, relative to long-term historical standards, for several years. As an academic exercise, such an argument makes sense. In a historical context, it is not unusual for the market to trade in a limited range for several years after a substantial increase in the market. Since the extended bull market, from 1982 through 1999, the market has made little progress for about seven years. For making "little progress", the last seven years were hardly without price volatility. The aftermath of the bursting of the technology bubble saw the market decline for three consecutive years. The market then turned around and provided gains for three straight years. We note that stock market indexing and "buy and hold" strategies gained much favor during the extended bull market. Those strategies are logical in extended bull markets; investment and tax costs are relatively low and an investor remains fully invested to benefit from steadily rising stock prices. However, in the current environment where, in our opinion, the market is likely to make "little progress", we believe active management can improve stock market returns by owning carefully-selected individual stocks rather than the "stock market". TOP FIVE INDUSTRIES % - ------------------- --- Commercial Services & Supplies 12.8% Software 12.3% Health Care Providers & Services 10.6% Insurance 7.5% Health Care Equipment & Supplies 5.9% ----- Total in Top Five Industries 49.1% Let's take this discussion one step further with a brief "Case Study". The S&P 500 (the "market") gained 4.88% in 2005 with little price volatility during the year. As is typical, there was considerably more price volatility in the individual stocks that comprise the market. For example, Omnicare (OCR) and Boston Scientific (BSX) are two stocks in our Healthcare sector research universe. While OCR gained 65.6% in 2005, BSX lost 31.1% (see chart). In 2003 our investment systems identified OCR as an investment candidate. Our research indicated that OCR represented compelling value, showed evidence that value would grow in the future and concluded that the financial interests of OCR's management team were properly aligned with shareholders. The Fund purchased OCR and enjoyed a cumulative gain of more than 100%. In late 2005, OCR added some debt to make an acquisition. Our equity team's fundamental research update on the Company showed a weaker financial condition, deteriorating cash returns on capital and stock sales by OCR's management team. When coupled with a less- than-compelling stock valuation, OCR presented a poor risk/reward profile. We liquidated the OCR shares for the Fund. Company Explorer - Price DATA PER FACTSET OCR 681904108 2659778 NYSE COMMON STOCK 31-JAN-2005 TO 30-DEC-2005 (MONTHLY) U.S. DOLLAR DATE OMNICARE BOSTON SCIENTIFIC ---- -------- ----------------- 31-Jan-2005 30.750 33.060 28-Feb-2005 34.490 32.660 31-Mar-2005 35.450 29.290 29-Apr-2005 34.670 29.580 31-May-2005 38.320 27.090 30-Jun-2005 42.430 27.000 29-Jul-2005 46.100 28.950 31-Aug-2005 52.550 26.880 30-Sep-2005 56.230 23.370 31-Oct-2005 54.100 25.120 30-Nov-2005 56.950 26.480 30-Dec-2005 57.220 24.490 TEN LARGEST HOLDINGS % - -------------------- --- Novell Inc 4.2% Berkshire Hathaway Inc Cl B 3.8% First Data Corp 3.5% Liberty Media Corp Cl A 2.9% Alltel Corp 2.9% Fisher Scientific Intl 2.9% Jackson Hewitt Tax Service 2.8% Waste Management, Inc 2.7% AmerisourceBergen Corp 2.6% Odyssey Healthcare Inc. 2.6% ----- Total in Ten Largest Holdings 30.9% We did not find Boston Scientific Corp. (BSX) a compelling investment, when the stock traded in the $40's, at approximately the time the Fund was buying shares of Omnicare (OCR). While OCR was rising, BSX was falling to the low-$20's per share. With high cash flow returns on capital and a high-quality balance sheet, BSX became an investment candidate in our investment systems. Our research confirmed that BSX was a compelling value, that future value would grow and that the financial interests of BSX's management team were properly aligned with shareholders. We purchased shares of BSX for the Fund. Our Case Study of OCR and BSX is intended to show that there are opportunities, and risks, in individual stocks despite a lethargic stock market. We are working hard to identify the opportunities and avoid the risks. Despite the tone of the preceding paragraphs, our preference is to own high- quality companies for long time periods; forever if possible. Our investment process drives the holding period through a constant focus on business fundamentals and appreciation potential for each individual stock we purchase for the Fund. FIVE FUND HOLDINGS WITH THE LARGEST GAINS, IN DOLLARS, FOR THE PAST SIX MONTHS: o Novell, Inc. (NOVL) o Omnicare, Inc. (OCR) o Fair Isaac & Co., Inc. (FIC) o Odyssey Healthcare, Inc. (ODSY) o AmerisourceBergen Corp. (ABC) FIVE FUND HOLDINGS WITH THE LARGEST LOSSES, IN DOLLARS, FOR THE PAST SIX MONTHS: o Liberty Media Corp Class A (L) o Pfizer, Inc. (PFE) o Fifth Third Bancorp (FITB) o Apria Healthcare Group, Inc. (AHG) o Boston Scientific Corp. (BSX) Thank you for being our partners in the McCarthy Multi-Cap Stock Fund! The officers, employees, and affiliates of your Fund's advisor have a substantial investment in the Fund. We believe our investment in the Fund properly aligns our interests with yours, now and in the future. Sincerely, MCCARTHY GROUP ADVISORS, LLC Richard L. Jarvis Art N. Burtscher Chief Investment Officer Chairman Opinions expressed are those of Richard L. Jarvis and Art N. Burtscher and are subject to change, are not guaranteed and should not be considered investment advice. THE FUND INVESTS IN SMALL- AND MID-CAP COMPANIES, WHICH INVOLVE ADDITIONAL RISKS SUCH AS LIMITED LIQUIDITY AND GREATER VOLATILITY. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. Indexes are not available for direct investment and do not incur expenses. Fund sector allocations and portfolio holdings are subject to change and are not recommendations to buy or sell any security. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. The information contained in this report is authorized for use when preceded or accompanied by a prospectus for the McCarthy Multi-Cap Stock Fund, which includes more complete information on the charges and expenses related to an ongoing investment in the Fund. Please read the prospectus carefully before you invest or send money. The Fund is distributed by Quasar Distributors, LLC. (02/06) ALLOCATION OF PORTFOLIO ASSETS AT DECEMBER 31, 2005 (UNAUDITED) Energy 2% Materials 4% Industrials 15% Consumer Discretionary 6% Consumer Staples 6% Health Care 20% Financials 15% Information Technology 22% Telecommunication Services 3% Short-Term Investments 7% SCHEDULE OF INVESTMENTS AT DECEMBER 31, 2005 (UNAUDITED) SHARES COMMON STOCKS - 93.83% VALUE ------ ---------------------- ----- BEVERAGES - 3.78% 16,373 The Coca-Cola Co. $ 659,995 13,196 PepsiCo, Inc. 779,620 ----------- 1,439,615 ----------- CAPITAL MARKETS - 1.76% 18,120 Federated Investors, Inc. 671,165 ----------- CHEMICALS - 1.82% 15,358 The Scotts Miracle-Gro Co. - Class A 694,796 ----------- COMMERCIAL BANKS - 3.36% 14,895 Fifth Third Bancorp 561,839 10,200 National City Corp. 342,414 6,000 Wells Fargo & Co. 376,980 ----------- 1,281,233 ----------- COMMERCIAL SERVICES & SUPPLIES - 12.77% 21,075 Cendant Corp. 363,544 24,610 Corinthian Colleges, Inc.* 289,906 23,736 FirstService Corp.*# 608,828 38,780 Jackson Hewitt Tax Service, Inc. 1,074,594 14,604 NCO Group, Inc.* 247,099 22,734 Republic Services, Inc.+ 853,662 11,100 Waste Connections, Inc.* 382,506 34,400 Waste Management, Inc. 1,044,040 ----------- 4,864,179 ----------- COMMUNICATIONS EQUIPMENT - 0.67% 71,400 3Com Corp.* 257,040 ----------- CONSUMER FINANCE - 1.52% 22,141 MoneyGram International, Inc. 577,437 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES - 2.91% 17,575 Alltel Corp. 1,108,982 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.02% 11,600 Benchmark Electronics, Inc.* 390,108 ----------- FOOD & STAPLES RETAILING - 1.55% 12,600 Wal-Mart Stores, Inc. 589,680 ----------- FOOD PRODUCTS - 0.77% 12,900 Fresh Del Monte Produce, Inc.# 293,733 ----------- HEALTH CARE EQUIPMENT & SUPPLIES - 5.91% 36,760 Boston Scientific Corp.* 900,253 10,495 Conmed Corp.* 248,312 17,840 Fisher Scientific International* 1,103,582 ----------- 2,252,147 ----------- HEALTH CARE PROVIDERS & SERVICES - 10.59% 24,384 AmerisourceBergen Corp.+ 1,009,498 11,000 Apria Healthcare Group, Inc.* 265,210 14,486 Caremark Rx, Inc.* 750,230 14,183 Laboratory Corporation of America Holdings* 763,754 52,778 Odyssey HealthCare, Inc.* 983,782 48,424 Stewart Enterprises, Inc. - Class A 261,974 ----------- 4,034,448 ----------- HOUSEHOLD DURABLES - 0.96% 4,200 Mohawk Industries, Inc.* 365,316 ----------- INDUSTRIAL CONGLOMERATES - 3.19% 7,500 3M Co. 581,250 22,000 Tyco International Ltd.# 634,920 ----------- 1,216,170 ----------- INSURANCE - 7.48% 12,730 American International Group, Inc. 868,568 494 Berkshire Hathaway, Inc. - Class B* 1,450,137 8,400 Hanover Insurance Group, Inc. 350,868 9,415 Horace Mann Educators Corp. 178,508 ----------- 2,848,081 ----------- INTERNET & CATALOG RETAIL - 1.03% 13,907 IAC/InterActiveCorp* 393,707 ----------- IT SERVICES - 4.35% 21,199 Convergys Corp.* 336,004 30,748 First Data Corp. 1,322,472 ----------- 1,658,476 ----------- MEDIA - 2.88% 139,293 Liberty Media Corp. - Class A* 1,096,236 ----------- METALS & MINING - 2.04% 31,650 Compass Minerals International, Inc. 776,691 ----------- OIL & GAS - 2.55% 7,306 Devon Energy Corp. 456,917 10,294 Newfield Exploration Co.* 515,421 ----------- 972,338 ----------- PHARMACEUTICALS - 3.75% 10,446 Johnson & Johnson 627,805 19,519 Pfizer, Inc. 455,183 16,580 Schering-Plough Corp. 345,693 ----------- 1,428,681 ----------- REAL ESTATE - 0.82% 7,598 Redwood Trust, Inc. 313,493 ----------- SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT - 2.15% 30,467 Applied Materials, Inc. 546,578 9,272 Cabot Microelectronics Corp.* 271,948 ----------- 818,526 ----------- SOFTWARE - 12.32% 12,830 Fair Isaac Corp. 566,701 15,065 Intuit, Inc.*+ 802,964 39,121 Jack Henry & Associates, Inc. 746,429 21,004 Manhattan Associates, Inc.* 430,162 21,500 Microsoft Corp. 562,225 179,452 Novell, Inc.* 1,584,561 ----------- 4,693,042 ----------- THRIFTS & MORTGAGE FINANCE - 1.88% 16,439 Washington Mutual, Inc. 715,097 ----------- TOTAL COMMON STOCKS (Cost $29,062,365) 35,750,417 ----------- SHORT-TERM INVESTMENTS - 6.80% 2,592,158 Federated Cash Trust Treasury Money Market Fund (Cost $2,592,158) 2,592,158 ----------- TOTAL INVESTMENTS IN SECURITIES (Cost $31,654,523) - 100.63% 38,342,575 Call Options Written: (0.65%) (247,435) Assets in Excess of Other Liabilities - 0.02% 7,764 ----------- NET ASSETS - 100.00% $38,102,904 ----------- ----------- See notes to financial statements. SCHEDULE OF CALL OPTIONS WRITTEN AT DECEMBER 31, 2005 (UNAUDITED) CONTRACTS VALUE - --------- ----- AmerisourceBergen Corp. 142 Expiring January 2006, Exercise Price $30.00 $159,040 Intuit, Inc. 87 Expiring January 2006, Exercise Price $47.50 51,765 Republic Services, Inc. 132 Expiring January 2006, Exercise Price $35.00 36,630 -------- TOTAL OPTIONS WRITTEN (Premiums received $174,047) $247,435 -------- -------- * Non-income producing security. # U.S. security of a foreign issuer. + Security is subject to written call option. See notes to financial statements. STATEMENT OF ASSETS AND LIABILITIES AT DECEMBER 31, 2005 (UNAUDITED) ASSETS Investments, at market value (cost $31,654,523) $38,342,575 Receivables: Fund shares issued 4,030 Dividends and interest 40,184 Prepaid expenses 9,706 ----------- Total Assets 38,396,495 ----------- LIABILITIES Payables: Call options written, at value (proceeds $174,047) 247,435 Advisory fees 23,921 Administration fees 4,869 Fund accounting fees 4,281 Printing and mailing fees 4,087 Transfer agent fees 1,980 Chief Compliance Officer fee 1,115 Professional fees 953 Due to Custodian 780 Custodian fees 557 Accrued expenses 3,613 ----------- Total Liabilities 293,591 ----------- NET ASSETS $38,102,904 ----------- ----------- NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$38,102,904 / 3,264,966 shares outstanding; unlimited number of shares (par value $0.01) authorized] $11.67 ------ ------ COMPONENTS OF NET ASSETS Paid-in capital $30,601,881 Undistributed net investment loss (29,683) Accumulated net realized gain on investments and option contracts written 916,042 Net unrealized appreciation/(depreciation) of: Investments 6,688,052 Option contracts written (73,388) ----------- Net Assets $38,102,904 ----------- ----------- See notes to financial statements. STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2005 (UNAUDITED) INVESTMENT INCOME Dividend $ 181,332 Interest 19,554 ---------- Total income 200,886 ---------- EXPENSES Advisory fees (Note 3) 175,232 Administration fees (Note 3) 27,668 Professional fees 15,341 Fund accounting fees 14,869 Transfer agent fees 14,183 Custody fees 5,819 Chief Compliance Officer fee (Note 3) 4,866 Trustee fees 4,788 Registration fees 3,604 Shareholder reporting 3,281 Insurance 1,555 Miscellaneous fees 1,428 ---------- Total expenses 272,634 Less: advisory fee waiver (Note 3) (42,065) ---------- Net expenses 230,569 ---------- NET INVESTMENT LOSS (29,683) ---------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND OPTION CONTRACTS WRITTEN Net realized gain on: Investments 929,348 Option contracts written 12,430 ---------- Net realized gain 941,778 ---------- Net change in unrealized appreciation/(depreciation) on: Investments 1,735,582 Option contracts written (73,388) ---------- Net unrealized gain 1,662,194 ---------- Net realized and unrealized gain on investments and option contracts written 2,603,972 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,574,289 ---------- ---------- See notes to financial statements. STATEMENT OF CHANGES IN NET ASSETS SIX MONTHS ENDED DECEMBER 31, 2005 YEAR ENDED (UNAUDITED) JUNE 30, 2005 ----------------- ------------- INCREASE/(DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment loss $ (29,683) $ (103,667) Net realized gain on investments and option contracts written 941,778 3,635,211 Net change in unrealized appreciation/ (depreciation) on investments and option contracts written 1,662,194 (606,675) ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,574,289 2,924,869 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS Net realized gain on investments (1,974,770) -- ----------- ----------- CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from net change in outstanding shares (a) 2,457,569 965,052 ----------- ----------- TOTAL INCREASE IN NET ASSETS 3,057,088 3,889,921 ----------- ----------- NET ASSETS Beginning of period $35,045,816 31,155,895 ----------- ----------- End of period $38,102,904 $35,045,816 ----------- ----------- ----------- ----------- Includes undistributed net investment loss of: $ (29,683) $ -- ----------- ----------- ----------- -----------
(a) A summary of shares transactions is as follows: SIX MONTHS ENDED DECEMBER 31, 2005 YEAR ENDED (UNAUDITED) JUNE 30, 2005 -------------------------- -------------------------- SHARES PAID-IN CAPITAL SHARES PAID-IN CAPITAL ------ --------------- ------ --------------- Shares sold 347,657 $4,188,414 634,187 $6,741,061 Shares issued in reinvestment of distributions 165,517 1,936,553 -- -- Shares redeemed (306,301) (3,667,398) (531,086) (5,776,009) -------- ---------- -------- ---------- Net increase 206,873 $2,457,569 103,101 $ 965,052 -------- ---------- -------- ---------- -------- ---------- -------- ----------
See notes to financial statements. FINANCIAL HIGHLIGHTS For a fund share outstanding throughout the period SIX MONTHS ENDED YEAR YEAR YEAR PERIOD DECEMBER 31, ENDED ENDED ENDED ENDED 2005 JUNE 30, JUNE 30, JUNE 30, JUNE 30, (UNAUDITED) 2005 2004 2003 2002* ------------ -------- -------- -------- --------- NET ASSET VALUE, BEGINNING OF PERIOD $11.46 $10.54 $ 8.77 $ 8.13 $10.00 ------ ------ ------ ------ ------ INCOME FROM INVESTMENT OPERATIONS: Net investment income/(loss) (0.01) (0.03) (0.06) (0.03) 0.02 Net realized and unrealized gain/ (loss) on investments and option contracts written 0.86 0.95 1.83 0.67 (1.85) ------ ------ ------ ------ ------ Total from investment operations 0.85 0.92 1.77 0.64 (1.83) ------ ------ ------ ------ ------ LESS DISTRIBUTIONS TO SHAREHOLDERS: From net investment income -- -- -- -- (0.03) From net realized gains (0.64) -- -- -- (0.01) ------ ------ ------ ------ ------ Total distributions (0.64) -- -- -- (0.04) ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD $11.67 $11.46 $10.54 $ 8.77 $ 8.13 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ TOTAL RETURN 7.38%1 8.73% 20.18% 7.87% (18.40)%1 SUPPLEMENTAL DATA AND RATIOS: Net assets, end of period (in millions) $38.1 $35.0 $31.2 $26.1 $26.3 Ratio of net expenses to average net assets: Before expense reimbursement 1.48%2 1.47% 1.51% 1.58% 1.85%2 After expense reimbursement 1.25%2 1.25% 1.25% 1.25% 1.25%2 Ratio of net investment income/(loss) to average net assets: Before expense reimbursement (0.39%)2 (0.53%) (0.84%) (0.70%) (0.41)%2 After expense reimbursement (0.16%)2 (0.31%) (0.58%) (0.37%) 0.19%2 Portfolio turnover rate 23%1 61% 51% 58% 46%1
* Commenced operations on August 6, 2001. 1 Not annualized. 2 Annualized. See notes to financial statements. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2005 (UNAUDITED) NOTE 1 - ORGANIZATION The McCarthy Multi-Cap Stock Fund (the "Fund"), formerly known as the McCarthy Fund, is a series of Advisor Series Trust (the "Trust") which is registered under the Investment Company Act of 1940 (the "1940 Act") as a diversified, open-end management investment company. The Fund commenced operations on August 6, 2001. The investment objective of the Fund is to seek long-term growth of capital. The Fund pursues this objective by investing primarily in equity securities. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America. A. Securities Valuation. Securities traded on a national exchange or Nasdaq are valued at the last reported sale price at the close of regular trading on the last business day of the period. Securities 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 quotations are not readily available, or if the closing price does not represent fair market value, are valued at their respective fair values as determined in good faith by the Board of Trustees. These procedures consider many factors, including the type of security, size of holding, trading volume, and news events. Short-term investments are stated at cost which, when combined with accrued interest, approximates market value. U.S. Government securities with less than 60 days remaining to maturity when acquired by the Fund are valued on an amortized cost basis. U.S. Government securities with more than 60 days remaining to maturity are valued at their current market value (using the mean between the bid and asked price) until the 60th day prior to maturity, and are then valued at amortized cost based upon the value on such date unless the Board of Trustees determines during such 60 day period that amortized cost does not represent fair value. B. Federal Income Taxes. It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. Securities Transactions, Dividend Income and Distributions. Securities transactions are accounted for on the trade date. Realized gains and losses on securities sold are calculated on the basis of first in, first out. Dividend income and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differ from accounting principles generally accepted in the United States of America. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their federal tax treatment. D. Share Valuation. The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund's shares will not be priced on the days on which the NYSE is closed for trading. E. 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 and disclosure of contingent 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. F. Options Transactions. The Fund may write call options only if it (i) owns an offsetting position in the underlying security or (ii) maintains cash or other liquid assets in an amount equal to or greater than its obligation under the option. When the Fund writes a call option, an amount equal to the premium received is included in the statement of assets and liabilities as a liability. The amount of the liability is subsequently marked-to- market to reflect the current market value of the option. If an option expires on its stipulated expiration date or if the Fund enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As a writer of an option, the Fund has no control over whether the underlying securities are subsequently sold (called) and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option. The Fund may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in the Fund's portfolio. If such a decline occurs, the put options will permit the Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Fund. In addition, in the event that the price of the security in connection with which an option was purchased moves in a direction favorable to the Fund, the benefits realized by the Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. G. Reclassification of Capital Accounts. Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS McCarthy Group Advisors, LLC (the "Advisor") provides the Fund with investment management services under an Investment Advisory Agreement (the "Agreement"). Under the Agreement the Advisor furnishes all investment advice, office space, facilities, and most of the personnel needed by the Fund. As compensation for its services, the Advisor receives a monthly fee at the annual rate of 0.95% of the Fund's average daily net assets. For the six months ended December 31, 2005, the Fund incurred $175,232 in advisory fees. The Fund is responsible for its own operating expenses. The Advisor has contractually agreed to limit the Fund's total operating expenses by reducing all or a portion of its fees and reimbursing the Fund's total operating expenses, for a one year period, so that its ratio of expenses to average net assets will not exceed 1.25%. Any such reductions made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor in subsequent fiscal years, provided the aggregate amount of the Fund's current operation for such fiscal year does not exceed the applicable limitation of the Fund's expenses. Under the expense limitation agreement, the Advisor may recoup reimbursements made in the Fund's first fiscal year in any of the five succeeding fiscal years, reimbursements made in the Fund's second fiscal year in any of the four succeeding fiscal years, and reimbursements in any subsequent fiscal year over the following three fiscal years. For the six months ended December 31, 2005, the Advisor absorbed expenses of $42,065. The Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Cumulative expenses subject to recapture amount to $273,352 at December 31, 2005. Any such reimbursement is also contingent upon Board of Trustees review and approval prior to the time the reimbursement is initiated. Cumulative expenses subject to recapture expire as follows: YEAR AMOUNT ---- ------ 2006 $ 80,837 2007 76,037 2008 74,413 2009 42,065 -------- $273,352 -------- -------- U.S. Bancorp Fund Services, LLC, (the "Administrator") acts as administrator for the Fund. The Administrator prepares various federal and state regulatory filings, reports and returns; prepares reports and materials to be supplied to the trustees; monitors the activities of the Fund's custodian, transfer agent and accountant; coordinates the preparation and payment of Fund expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rates: Under $24 million $36,000 $24 to $100 million 0.15% of average daily net assets $100 to $150 million 0.10% of average daily net assets Over $150 million 0.05% of average daily net assets For the six months ended December 31, 2005, the Fund incurred $27,668 in administration fees. U.S. Bancorp Fund Services, LLC ("USBFS") provides fund accounting services for the Fund. Quasar Distributors, LLC (the "Distributor") acts as the Fund's principal underwriter in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Administrator. U.S. Bank, N.A., an affiliate of USBFS, serves as custodian to the Fund. Certain officers of the Fund are also officers of the Administrator. For the six months ended December 31, 2005, the Fund was allocated $4,866 of the Chief Compliance Officer fee. NOTE 4 - OPTION CONTRACTS WRITTEN The number of option contracts written and the premiums received by the Fund during the six months ended December 31, 2005, were as follows: NUMBER PREMIUMS OF CONTRACTS RECEIVED ------------ -------- Options outstanding, beginning of year -- $ -- Options written 751 303,643 Options exercised (222) (89,110) Options closed (168) (40,486) ---- -------- Options outstanding, end of year 361 $174,047 ---- -------- ---- -------- NOTE 5 - PURCHASES AND SALES OF SECURITIES For the six months ended December 31, 2005, the cost of purchases and proceeds from sales of securities, excluding short-term securities, were $8,109,780 and $8,666,398, respectively. NOTE 6 - INCOME TAXES Net investment income/(loss) and net realized gains/(losses) differ for financial statement and tax purposes due to differing treatments of distributions received from Real Estate Investment Trusts and wash sale losses deferred. The tax character of distributions paid during the six months ended December 31, 2005 and the year ended June 30, 2005, the Fund's most recently completed fiscal year end, were as follows: 2005 2004 ---- ---- Long-term capital gains $1,974,770 $ -- As of June 30, 2005, the Fund's most recently completed fiscal year end, the components of accumulated earnings/(losses) on a tax basis were as follows: Cost of investments (a) $30,151,211 ----------- Gross tax unrealized appreciation $ 5,531,839 Gross tax unrealized depreciation (583,720) ----------- Net tax unrealized appreciation $ 4,948,119 ----------- ----------- Cumulative tax cost adjustments $ -- ----------- Undistributed ordinary income $ -- Undistributed long-term capital gain 1,974,749 ----------- Total distributable earnings $ 1,974,749 ----------- ----------- Other accumulated gains/losses $ -- ----------- Total accumulated earnings/(losses) $(6,922,868) ----------- ----------- (a) Represents cost for federal income tax purposes and differs from the cost for financial purposes due to wash sales. EXPENSE EXAMPLE AT DECEMBER 31, 2005 (UNAUDITED) As a shareholder of a mutual fund, you 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. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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 (7/1/05 - 12/31/05). ACTUAL EXPENSES The first line of the table below provides information about actual account values and actual expenses, with actual net expenses being limited to 1.25% per the advisory agreement. Although the Fund charges 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 Gemini Fund Services, LLC, the Fund's transfer agent. The example below includes, but is not limited to, management fees, fund accounting, custody and transfer agent fees. You may use the information in this 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 table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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 Fund 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 table 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. BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* 7/1/05 12/31/05 7/1/05 - 12/31/05 ------------- ------------- ------------------ Actual $1,000.00 $1,073.80 $6.53 Hypothetical (5% return $1,000.00 $1,018.90 $6.36 before expenses) * Expenses are equal to the Fund's annualized expense ratio of 1.25%, multiplied by the average account value over the period, multiplied by 184 (days in most recent fiscal half-year)/365 days to reflect the one- half year expense. NOTICE TO SHAREHOLDERS AT DECEMBER 31, 2005 (UNAUDITED) HOW TO OBTAIN A COPY OF THE FUND'S PROXY VOTING POLICIES A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling (866) 811-0228 or on the SEC's website at http://www.sec.gov. - ------------------ HOW TO OBTAIN A COPY OF THE FUND'S PROXY VOTING RECORDS FOR THE 12-MONTH PERIOD ENDED JUNE 30, 2005 Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2005 is available without charge, upon request, by calling (866) 811-0228. 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 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. Information included in the Fund's Form N-Q is also available by calling (866) 811-0228. BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT At a meeting held on December 15, 2005, the board of trustees (the "Board"), including the independent trustees ("Independent Trustees"), considered and approved the continuance of the investment advisory agreement (the "Advisory Agreement") with McCarthy Group Advisors (the "Advisor") pertaining to the McCarthy Multi-cap Stock Fund (the "Fund") for a period ending December 15, 2006. Prior to the meeting, the Independent Trustees had requested detailed information from the Advisor regarding the Fund. This information together with the information provided to the Independent Trustees throughout the course of year formed the primary (but not exclusive) basis for the Board's determinations. Below is a summary of the factors considered by the Board and the conclusions thereto that formed the basis for the Board approving the continuance of the Advisory Agreement: 1. THE NATURE, EXTENT AND QUALITY OF THE SERVICES PROVIDED AND TO BE PROVIDED BY THE ADVISOR UNDER THE ADVISORY AGREEMENT. The Board considered the Advisor's specific responsibilities in all aspects of day-to-day investment management of the Fund. The Board considered the qualifications, experience and responsibilities of the portfolio managers, as well as the responsibilities of other key personnel at the Advisor involved in the day- to-day activities of the Fund, including administration, marketing and compliance. The Board noted the Advisor's commitment to responsible Fund growth. The Board also considered the resources and compliance structure of the Advisor, including information regarding its compliance program, its chief compliance officer and the Advisor's compliance record, and the Advisor's business continuity plan. The Board also considered the prior relationship between the Advisor and the Trust, as well as the Board's knowledge of the Advisor's operations, and noted that during the course of the prior year they had met with the Advisor in person to discuss various marketing and compliance topics. The Board concluded that the Advisor had the quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Advisory Agreement and that the nature, overall quality, cost and extent of such management services are satisfactory and reliable. 2. THE FUND'S HISTORICAL YEAR-TO-DATE PERFORMANCE AND THE OVERALL PERFORMANCE OF THE ADVISOR. In assessing the quality of the portfolio management services delivered by the Advisor, the Trustees reviewed the short-term and long-term performance of the Fund on both an absolute basis, and in comparison to its peer funds as classified by Lipper, Inc. and the S&P 500 Index, (the "Benchmark Index"). The Board noted that the Fund's year-to-date performance was above the median of its peer group and Benchmark Index. The Trustees particularly noted the Fund's first quartile performance ranking for all relevant periods. The Trustees also noted that during the course of the prior year they had met with the Advisor in person to discuss various performance topics. The Board concluded that the advisor's overall performance was highly satisfactory under current market conditions. 3. THE COSTS OF THE SERVICES TO BE PROVIDED BY THE ADVISOR AND THE STRUCTURE OF THE ADVISOR'S FEES UNDER THE ADVISORY AGREEMENT. In considering the advisory fee and total fees and expenses of the Fund, the Board reviewed comparisons to its peer funds and accounts for other types of other similar accounts managed by the Advisor, as well as all expense waivers and reimbursements. The Board noted that the Advisor had agreed to maintain an annual expense ratio of 1.25%. The Board further noted the Fund has consistently and clearly disclosed to shareholders the expense ratio that shareholders should expect to experience and the Advisor had honored its agreement to cap expenses. The Trustees noted that the Fund's total expense ratio was below its peer group median and that the expense structure was in line with the fees charged by the Advisor to its other investment management clients. After taking into account all waivers and reimbursements, the Board concluded that the fees paid to the Advisor were fair and reasonable in light of comparative performance and expense and advisory fee information. 4. ECONOMIES OF SCALE. The Board also considered that economies of scale would be expected to be realized by the Advisor as the assets of the Fund grow and the Fund's expense ratio begins to show signs of reduction. As the level of the Fund's asset grows, the Advisor expects to be able to cover existing Fund overhead, although there are other Fund expenses that will increase with greater assets. The Board noted that although the Fund does not have advisory fee breakpoints, the Advisor has contractually agreed to reduce its advisory fees or reimburse expenses through the specified period so that the Fund does not exceed its specified expense limitation, and the Advisor is of the opinion that breakpoints will be appropriate when the Fund has grown to a larger size. The Board concluded that there were no effective economies of scale to be shared by the Advisor at current asset levels, but considered revisiting this issue in the future as circumstances changed and asset levels increased. 5. THE PROFITS TO BE REALIZED BY THE ADVISOR AND ITS AFFILIATES FROM THEIR RELATIONSHIP WITH THE FUND. The Board reviewed the Advisor's financial information and took into account both the direct benefits and the indirect benefits to the Advisor from advising the Fund. The Board considered that the Advisor benefits from positive reputational value in advising the Fund. The Board noted that the Advisor continued to subsidize a portion of the Fund's operating expenses, and reviewed the Advisor's compliance with its reimbursement requirements. The Board also considered the Advisor's estimate of the Fund asset level at which it would reach a breakeven level by covering allocated overhead costs. The Board considered that the additional benefits derived by the Advisor from its relationship with the Fund were limited primarily to research benefits received in exchange for "soft dollars." After such review, the Board determined that the profitability rates to the Advisor with respect to the Advisory Agreement are not excessive, and that the Advisor had maintained adequate profit levels to support the services to the Fund. No single factor was determinative of the Board's decision to approve the continuance of the Advisory Agreement, but rather the Trustees based their determination on the total mix of information available to them. Based on a consideration of all the factors in their totality, the Trustees determined that the advisory arrangements with the Advisor, including the advisory fee, were fair and reasonable to the Fund, and that the Fund's shareholders received reasonable value in return for the advisory fees paid. The Board (including a majority of the Independent Trustees) therefore determined that the continuance of the Advisory Agreement would be in the best interests of the Fund and its shareholders. ADVISOR McCarthy Group Advisors, LLC 1125 South 103rd Street, Suite 250 Omaha, Nebraska 68124-6019 DISTRIBUTOR Quasar Distributor, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 CUSTODIAN U.S. Bank, N.A. 425 Walnut Street M/L 6118 Cincinnati, Ohio 45202 TRANSFER AGENT Gemini Fund Services, LLC 4020 South 147th Street, Suite 2 Omaha, Nebraska 68137 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Tait, Weller & Baker LLP 1818 Market Street, Suite 2400 Philadelphia, Pennsylvania 19103 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP 55 Second Street, 24th Floor San Francisco, California 94105 This report is intended for shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Share price and returns will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are dated and are subject to change. ITEM 2. CODE OF ETHICS. - ----------------------- Not applicable for semi-annual reports. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. - ---------------------------------------- Not applicable for semi-annual reports. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. - ----------------------------------------------- Not applicable for semi-annual reports. 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. DURING THE LAST SIX MONTHS, THERE HAS BEEN A MATERIAL CHANGE TO THE PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES. THE NOMINATING COMMITTEE WILL NOW CONSIDER NOMINEES RECOMMENDED BY SHAREHOLDERS. ITEM 11. CONTROLS AND PROCEDURES. - --------------------------------- (a) The Registrant's President/Chief Executive Officer and Treasurer/Chief Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant's service provider. (b) There were no significant changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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. 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. Not Applicable. (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 3/7/06 -------------------------------------- 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 3/7/06 -------------------------------------- By (Signature and Title)* /s/ Douglas G. Hess -------------------------- Douglas G. Hess, Treasurer Date 3/8/06 -------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 mmcsf-ex99cert302.txt EX.99.CERT 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; and (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: 3/7/06 /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; and (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: 3/8/06 /s/ Douglas G. Hess ----------- ------------------- Douglas G. Hess Treasurer EX-99.906 CERT 3 mmcsf-ex99cert906.txt EX.99.906CERT 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 six months ended December 31, 2005 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: 3/7/06 Dated: 3/8/06 ------------------------- -------------------------- 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-----