N-CSR 1 sf-ncsra.htm SHENKMAN FUNDS ANNUAL REPORT 9-30-17
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549


FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES




Investment Company Act file number 811-07959



Advisors Series Trust
 (Exact name of registrant as specified in charter)



615 East Michigan Street
Milwaukee, WI 53202
 (Address of principal executive offices) (Zip code)


Douglas G. Hess, President
Advisors Series Trust
c/o U.S. Bancorp Fund Services, LLC
777 East Wisconsin Avenue, 5th Floor
Milwaukee, WI 53202
 (Name and address of agent for service)



(414) 765-6609
(Registrant's telephone number, including area code)



Date of fiscal year end:  September 30, 2017



Date of reporting period:  September 30, 2017
 
Item 1. Reports to Stockholders.
 
 

 
 
Annual
  
SHENKMAN FLOATING RATE
Report
  
HIGH INCOME FUND
     
September 30, 2017
  
SHENKMAN SHORT DURATION
   
HIGH INCOME FUND
     
   
Each a series of Advisors Series Trust (the “Trust”)    
 
 
        
 
SHENKMAN
  
Institutional
    
 
FLOATING RATE
Class F
Class
    
 
HIGH INCOME FUND
(SFHFX)
(SFHIX)
    
           
 
SHENKMAN
      
Institutional
 
SHORT DURATION
Class A
Class C
Class F
Class
 
HIGH INCOME FUND
(SCFAX)
(SCFCX)
(SCFFX)
(SCFIX)
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
             
 c/o U.S. Bancorp Fund Services, LLC
            
 P.O. Box 701
            
 Milwaukee, Wisconsin 53201-0701
            
 1-855-SHENKMAN (1-855-743-6562)
            
 

SHENKMAN FLOATING RATE HIGH INCOME FUND

SHAREHOLDER LETTER
September 30, 2017

Dear Shareholder,
 
The loan market continued to perform well, with the rally that started in March 2016 continuing into the past year. During the trailing 12-month fiscal period ended September 30, 2017 (the “Period”), the S&P/LSTA Leveraged Loan Index (the “Index”) returned +5.29%, just shy of the +5.41% return for the previous twelve months. The Index started the Period off on a strong note, as the fourth quarter of 2016 was up +2.26%. The rally began to lose steam by spring, however, as June and August 2017 both posted slightly negative returns, the first monthly declines since March 2016. Despite some mid-summer volatility, the market ended the Period relatively well, as the third quarter of 2017 returned +1.04%.
 
The S&P/LSTA B- and Above Leveraged Loan Index (the “B- and Above Index”), which we believe tends to be a more conservative benchmark than the Index, returned +4.45% for the Period (0.84% below the Index). The majority of the performance differential between the Index and the B- and Above Index unsurprisingly occurred during the most bullish part of the Period, from October 2016 through February 2017. During those five months, the Index outperformed the B- and Above Index by 0.83% (as compared to 0.84% for the full Period).
 
Fund Performance
 
The Shenkman Floating Rate High Income Fund (the “Fund”) seeks to generate high current income through active selection of investments in the leveraged loan universe. For liquidity purposes, the Fund targets an allocation of approximately 15% of assets in cash and shorter duration bonds. As of September 30, 2017, 85% of the Fund’s assets were invested in bank loans, 12% in high yield bonds, and 3% in cash.
 
The Fund had a net return of +4.73% during the Period. Similar to the overall loan market, the Fund also had a strong 4Q16, with a quarterly return of +2.08%. Also similar to the Index, the Fund experienced a summer slowdown; but while the Index had two negative performing months during the Period, the Fund managed to only have one (August).
 
Not surprisingly, during the rally the Fund’s high yield bonds, including its short duration bonds, outperformed leveraged loans, albeit marginally. The duration of the Fund’s high yield bond holdings was 2.19 versus the overall high yield bond market’s duration of 3.62. The Fund’s allocation to high yield bonds positively contributed to the overall performance of the Fund. Within bank loans, from a sector standpoint, the Business Equipment & Services and Electronics/Electrical sectors were the biggest contributors to absolute return, while Retailers (Except Food & Drug) detracted from returns. The Fund’s three largest industry sectors were Business Equipment & Services, Electronics/Electrical, and Health Care. Relative to the Index, the Fund currently maintains an underweight to Retailers (Except Food & Drug)
1
SHENKMAN FLOATING RATE HIGH INCOME FUND
 
SHAREHOLDER LETTER – Continued
September 30, 2017

with a weight of 3.5% vs 5.4% in the Index. As of September 30, 2017, the Fund’s average price was $98.40, which is approximately one half of a point higher than it was a year earlier. The Fund’s yield as of September 30, 2017 was 5.04%, and its discount margin was 372bps.  During the past year, we have focused on increasing issuer diversity. The Fund is well-diversified, with investments in 315 issuers across 34 industries as of September 30, 2017, as compared to 257 issuers across 34 industries a year earlier.
 
Market Commentary
 
The Period was mostly characterized by the continuation of the rally that started in March 2016. With the exception of a brief summer pause, risk was definitely in vogue. Continuing to climb were some of the riskiest sectors that had suffered the most during the early-2016 downturn. Naturally, these sectors have rallied the most since that timeframe. By rating, loans rated CCC in the Index returned +17.16%, while Single-Bs and Double-Bs gained 5.40% and 3.71%, respectively, during the Period.
 
Further evidence of the risk rally during the Period can be seen by examining industry level returns. Within the Index, only one sector, Retailers (Not Food and Drug), had a negative return during the Period, with the negative performance being largely due to longer-term secular shifts. The best performing industries in the Index were commodity-related sectors that exhibited the highest volatility during the mid-summer pullback, as Oil and Gas and Nonferrous Metals – Minerals posted gains of +18.51% and +17.68%, respectively, during the Period.
 
New institutional loan volume totaled $504.5 billion for the Period1. This figure compares to $280.9bn during the equivalent period a year earlier. Despite the summer volatility, new issue volume remained relatively strong the entire year. In fact, 1Q17 set a new quarterly record for institutional new issuance with $171.4bn coming to market.
 
Despite the healthy pace of new issuance, the usage of new loans to refinance older debt, as well as repayments and scheduled amortizations, collectively kept the loan market’s net growth subdued. Repayments during the Period totaled $354.3bn, which represents a 74% increase over the total repayments of $204.7bn for the prior twelve months.  Coupled with refinancings and bond takeouts, the total par amount outstanding of the Index only grew $64.8bn during the Period. As of September 30, 2017, the loan market totaled $946.6bn, compared to $881.7bn a year earlier. The trend in the loan market more recently, however, has been towards actual net growth in market size. The second quarter of 2017 saw approximately $53bn net growth, the largest quarter-over-quarter net increase in the total par amount of loans outstanding on record.
 
Along with the strong performance, demand in the loan market also remained healthy. Floating-rate loan funds saw $26.5bn of inflows during the
2
SHENKMAN FLOATING RATE HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

Period1, although retail demand has begun to wane somewhat as the third quarter of 2017 actually saw a modest outflow of $0.73bn. Demand from collateralized loan obligations (“CLOs”) was robust during the entire Period, however, helping to offset weaker retail demand more recently. New CLO formations totaled $139.7bn during the Period, more than triple the $46.3bn from the prior year period. Moreover, the issuance was spread relatively evenly across all four quarters, despite some volatility in the underlying loan market and continuing questions regarding risk retention requirements. The strong demand from CLOs has helped fuel the rally in the loan market as CLOs remain the largest buyers of new issue loans, with over 60% of all new issue institutional loans having been sold to a CLO1 during the Period.
 
The strong market has helped keep the default environment relatively benign. Only 18 companies defaulted on $11.7bn of loan debt during the Period, bringing the par-weighted trailing 12-month default rate to 1.31% at September 30, 2017, a sizeable decrease from 2.25% a year earlier2. Default risk continues to be concentrated in a few sectors. Energy names continue to represent a sizeable portion of the default rate (four companies, $2.0bn of debt), and in light of the secular shift mentioned above, Retail also saw four companies default with $3.3bn. Technology also had a big default, as Avaya, Inc. filed for bankruptcy protection with its $3.3bn of debt.
 
Outlook
 
We remain constructive on the leveraged loan market overall, but are focused on credit selection. The mid-summer volatility highlighted the importance of choosing the right credits, as strong technicals earlier in the year allowed weaker credits to access the capital markets. The market bounced back quickly from that pullback, but in the event of a more protracted downturn, we would likely see greater performance dispersion among loan credits. However, we do believe that the default environment will likely remain benign in the near-term. Moreover, leveraged loans have historically exhibited some strength during the fourth quarter of the calendar year.
 
While broader questions remain on the future leadership of the U.S. Federal Reserve and rate hikes, as well as increased geopolitical risks, the loan market seems focused on the more positive data. Relatively strong economic data, increasing LIBOR, and the relative scarcity of investment alternatives will likely continue to drive demand. In addition, the loan market may also see interest from high yield investors as the yield difference between loans and bonds has fallen to a multi-year low, and by some measures leveraged loans are trading at a higher spread than high yield bonds. On the supply side, the primary market should continue to bring a variety of new issues, and we believe there are multiple investment opportunities with relatively attractive risk/return profiles.
 
Thank you again for your continued support and trust in our strategy.  We look forward to growing with you.
3
SHENKMAN FLOATING RATE HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

Notes:
 
 
1.
Data sourced from S&P LCD
 
2.
Data sourced from JP Morgan
 
Past performance does not guarantee future results.
 
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
 
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.
 
The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
 
Investments in CLOs carry additional risks, including the possibility that distributions from collateral securities will not be adequate to make interest payments and that the quality of the collateral may decline in value or default.
 
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
 
The S&P/LSTA Leveraged Loan Index is a daily total return index that tracks the current outstanding balance and spread over LIBOR for fully funded term loans. The facilities included in the S&P/LSTA Leveraged Loan Index represent a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers.
 
The S&P/LSTA B- & Above Leveraged Loan Index consists of all loans in the S&P/LSTA Leveraged Loan Index that have a B- and above S&P rating.
 
You cannot invest directly in an index.
 
Basis points (bps) are equivalent to one-one hundredths of a percentage point.
 
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
4
SHENKMAN FLOATING RATE HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

Yield is defined as the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.
 
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.  Please refer to the Schedule of Investments for a complete list of fund holdings.
 
Par amount refers to the amount at which a security is issued or can be redeemed.
 
Must be preceded or accompanied by a prospectus.
 
The credit rating is a financial indicator to potential investors of debt securities such as bonds. These are assigned by credit rating agencies such as Moody’s and Standard & Poor’s to have letter designations (such as AAA, B, CC) which represent the quality of a bond. Moody’s assigns bond credit ratings of Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, with WR and NR as withdrawn and not rated.  Standard & Poor’s assigns bond credit ratings of AAA, AA, A, BBB, BB, B, CCC, CC, C, D.
 
These materials contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s.  Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party.  Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content.  THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS.  Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities.  They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.
 
The Shenkman Floating Rate High Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Shenkman Capital Management, Inc.
5
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER
September 30, 2017

Dear Shareholder,
 
The Shenkman Short Duration High Income Fund (the “Fund”) continued to seek a high level of current income over the past fiscal year by focusing on investments within the non-investment grade universe, believed to be high quality, yet short duration. The Fund’s Institutional Class (SCFIX) returned +3.97% for the fiscal year ended September 30, 2017 (the “Annual Period”), and ended the Annual Period with a duration-to-worst of 0.98 years and average final maturity of 3.5 years. The Fund’s Class A shares returned +3.65% (without sales load) and +0.53% (with maximum sales load imposed on purchases of 3.00%) for the Annual Period, and the Class F shares returned +3.89%. Additionally, the Class C shares returned +3.01% (without sales load) and +2.01% (with maximum deferred sales load of 1.00%) for the Annual Period. The Fund’s benchmark, the ICE BofAML 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C), returned +4.5% for the Annual Period.  The ICE BofAML 0-3 Year U.S. Treasury Index (G1QA) returned 0.39% for the Annual Period.
 
The Fund’s sector positioning is largely a function of its focus on bottom-up, individual security selection and fundamental analysis as opposed to top-down, sector-driven allocations. That said, Healthcare remained the Fund’s largest exposure while Media-Cable moved up to the second largest. Healthcare was the largest contributor to returns followed by Telecommunications and Media-Cable. All sectors posted positive returns for the Annual Period, with Support-Services and Metals/Mining lagging on a relative basis.  The Fund’s exposure to bank loans, which ended the period at 9.2%, was a positive contributor to performance as bank loan returns edged out short duration for the Annual Period.  As of September 30, 2017, the Fund’s average price was $104.3 with a current yield of 5.4%, yield-to-maturity of 4.2% and a yield-to-worst of 2.6%.  As diversification remains a key factor in helping to mitigate risk, the portfolio was well-diversified, with investments in 198 issuers across 36 industries as of September 30, 2017.
 
Market Commentary
 
High yield bonds opened the fourth quarter of 2016 advancing sharply early in the quarter as the global search for yield persisted, risk-on behavior continued, and underlying U.S. economic data remained largely positive. In the weeks leading up to Election Day, however, the market retreated as nervousness increased over the prospect of a Donald Trump presidency amid the escalating Hillary Clinton e-mail scandal, and crude oil sliding back to the mid-$40’s level.  High yield resumed its ascent following Trump’s election as the anticipation of a more business and regulatory-friendly environment and additional infrastructure spending drove equities and lower-rated debt securities higher. Crude oil stabilized following the Organization of the Petroleum Exporting Countries’ announcement that it would curtail crude
6
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

production and the Dow Jones Industrial Average approached the milestone 20,000 barrier.  The ICE BofAML U.S. High Yield Index (H0A0) gained 1.88% in the fourth quarter of 2016, capping off a total increase of 17.49% for 2016, its highest return since 2009, with ten out of the twelve months showing positive performance.  As had been the case for most of 2016, risk-on sentiment persisted in the final quarter of the year as triple-C rated credits surged, meaningfully outpacing single-B and double-B gains.  Although there were modest Fund outflows of $2 billion for the quarter, strong equity markets and increased optimism as the period progressed led investors to deploy capital to high yield mutual funds.  $3.75 billion came in during the week of December 14, 2016, representing the fourth largest inflow in high yield market history.
 
High yield opened 2017 with continued post-election jubilation as solid economic reports, robust consumer and business optimism, improving earnings results, and record equity prices propelled returns for the asset class.  However, high yield experienced intermittent episodes of decline during the first three quarters of 2017 as concerns about a possible nuclear conflict on the Korean Peninsula, political turmoil in Washington D.C., substantial new issue supply, and sporadic periods of weakness in crude oil prices pressured the market.  Each time, however, the weakness was short-lived.  Some of those concerns were alleviated as investors refocused their attention on the positive factors and hopes that the potential passage of a comprehensive tax reform package would accelerate growth and boost the financial markets.  The H0A0 returned +7.05%, with each of the first three quarters of 2017 showing coupon-plus gains in excess of 2%.  With the “risk-on” environment dominating the market for the majority of the first three quarters of 2017, triple-C rated credits surged by +9.79%, approximately 50% higher than the single-B and double-B increases of +6.36% and 6.79%, respectively.  For the nine-month period ending September 30, 2017 (the “YTD Period”), H0A0 prices soared $2.19 to $101.79, leaving its yield-to-worst and spread as of September 30, 2017 at 5.47% and +367bps, respectively, both approximately 70bps tighter than at the beginning of 2017.  Over the same period, returns for the higher-quality, short duration segment of the high yield market proved more defensive than broader high yield given the shorter tenor and higher ratings mix.  The ICE BofAML 0-2 Year Duration BB-B High Yield Constrained Index (H42C) posted an increase of 3.54% for the YTD Period, trailing the broader market’s risk rally.  The JP Morgan U.S. High Yield trailing twelve month par-weighted default rate (excluding distressed exchanges),  which started 2017 at 3.57%, plunged to just 1.07% as of September 30, 2017, as the onslaught of commodity-focused bankruptcies that occurred toward the beginning of 2016 was rolled off from the trailing-twelve-month calculation.  The trailing default rate is now at its lowest level since March 2014.  Not surprisingly, approximately half of this year’s defaults have occurred in the Retail and Energy industries.  New
7
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

issuance for the YTD Period was robust at $255.6 billion, as improving economic growth expectations and relatively low treasury rates were supportive of corporations accessing the high yield market to refinance existing debt and extend maturities.  62.7% of new issuance was used for refinancing purposes, while credit quality was relatively high with just 14.9% being split-B and CCC-rated.  Notably, with crude oil prices stabilizing over recent months, there has been a meaningful increase in new issuance tied to the Energy sector.  Mutual funds, which experienced heavy outflows in early 2017, stabilized in the second and third quarters leaving outflow for the YTD Period at $11.1 billion.  Lastly, with economic growth showing encouraging signs and corporate profitability displaying improvement, 331 companies received rating upgrades versus just 255 receiving downgrades.
 
Outlook
 
Although the “devil is in the details” as to which aspects of corporate and personal tax reform will ultimately come to fruition, when and if those changes are enacted, and how those revisions will impact the federal deficit. Even a diluted plan could provide some uplift to corporate profitability, consumer confidence and economic results.  Meanwhile, the Federal Reserve has now taken the first modest step toward reducing the size of its $4.5 trillion balance sheet and may raise rates again before 2017 is over.  However, we expect that Fed will continue to move at a glacial pace, that its balance sheet will decline slowly and predictably, and that rate hikes will be clearly telegraphed.  With solid economic momentum both in the U.S. and abroad, improving corporate earnings, default rates lingering near multi-year lows (and we believe likely to stay at those levels), and the absence of aggressive Fed hikes causing a sudden end to the current expansion, high yield should continue to hold up well in what is still a relatively low global interest rate environment.  This environment should also benefit the shorter duration segment of the high yield market, which we believe remains an appealing area to capture attractive risk-adjusted returns.
 
Thank you again for your continued support and trust in our strategy. We look forward to growing with you.
 

 
Past performance does not guarantee future results.
 
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
 
Mutual fund investing involves risk. Principal loss is possible. There can be no assurance that the Fund will achieve its stated objective. In addition to the normal risks associated with investing, bonds and bank loans, and the funds that invest in them are subject to interest rate risk and can be expected to decline in value as interest rates rise.
8
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods.  Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
 
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
 
The ICE BofAML U.S. High Yield Index (H0A0) has an inception date of August 31, 1986 and tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.
 
The ICE BofAML 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C) consists of all securities in the ICE BofAML BB-B U.S. High Yield Index (HUC4) that have a duration-to-worst of 2 years or less. The ICE BofAML U.S. High Yield, BB-B Rated, Constrained Index (HUC4) has an inception date of December 31, 1996, and is a subset of the ICE BofAML U.S. High Yield Index (H0A0) that consists of all securities rated BB1 through B3, based on an average of Moody’s, S&P and Fitch, but caps issuer exposure at 2%.  The ICE BofAML U.S. Treasuries, 0-3 Years Index (G1QA) is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of less than three years.
 
Source of the above-listed indices is ICE Data Indices, LLC (“ICE Data Indices”), used with permission. ICE Data Indices PERMITS USE OF THE ICE BofAML INDICES AND RELATED DATA ON AN “AS IS” BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofAML INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND SHENKMAN CAPITAL MANAGEMENT, INC., OR ANY OF ITS PRODUCTS OR SERVICES.
 
You cannot invest directly in an index.
 
Basis points (bps) are equivalent to one-one hundredths of a percentage point.
 
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.
9
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

Duration-to-worst is the duration of a bond computed using either the final maturity date, or a call date within the bond’s call schedule, whichever would result in the lowest yield to the investor.
 
Yield is defined as the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.
 
Yield-to-worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting.
 
Yield-to-Maturity is the rate of return anticipated on a bond if held until the end of its lifetime. YTM is considered a long-term bond yield expressed as an annual rate. The YTM calculation takes into account the bond’s current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupon payments are reinvested at the same rate as the bond’s current yield. YTM is a complex but accurate calculation of a bond’s return that helps investors compare bonds with different maturities and coupons.
 
Diversification does not guarantee a profit or protect from loss in a declining market.
 
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a complete list of fund holdings.
 
Must be preceded or accompanied by a prospectus.
 
The credit rating is a financial indicator to potential investors of debt securities such as bonds. These are assigned by credit rating agencies such as Moody’s and Standard & Poor’s to have letter designations (such as AAA, B, CC) which represent the quality of a bond. Moody’s assigns bond credit ratings of Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, with WR and NR as withdrawn and not rated.  Standard & Poor’s assigns bond credit ratings of AAA, AA, A, BBB, BB, B, CCC, CC, C, D.
 
These materials contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s.  Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party.  Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content.  THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF
10
SHENKMAN SHORT DURATION HIGH INCOME FUND

SHAREHOLDER LETTER – Continued
September 30, 2017

MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS.  Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities.  They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.
 
The Shenkman Short Duration High Income Fund is distributed by Quasar Distributors, LLC.

11
SHENKMAN FLOATING RATE HIGH INCOME FUND

Comparison of the change in value of a hypothetical $1,000,000
investment in the Shenkman Floating Rate High Income Fund –
Institutional Class vs the S&P/LSTA Leveraged Loan Index
and the S&P/LSTA B- & Above Leveraged Loan Index
 
 
Average Annual Total Return:
 
   
Since Inception 
 
One Year
10/15/2014
3/1/2017
Class F
—
—
1.46%
Institutional Class
4.73%
3.37%
—
S&P/LSTA Leveraged Loan Index
5.31%
4.01%
1.90%
S&P/LSTA B- & Above Leveraged Loan Index
4.46%
4.03%
1.91%
 
Total Annual Fund Operating Expenses: 0.82% (Class F),
  0.72% (Institutional Class), as of the most recently filed prospectus.
 
Performance data quoted represents past performance; 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 Fund may be lower or higher than the performance quoted.  Performance data current to the most recent month end may be obtained by calling 1-855-743-6562.
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. Indices do not incur expenses and are not available for investment.
 
The S&P/LSTA Leveraged Loan Index is a daily total return index that tracks the current outstanding balance and spread over LIBOR for fully funded term loans. The facilities included in the S&P/LSTA Leveraged Loan Index represent a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers.
 
The S&P LSTA B- & Above Leveraged Loan Index consists of all securities in the S&P/LSTA Leveraged Loan Index that have a B- and above S&P Rating.

12
SHENKMAN SHORT DURATION HIGH INCOME FUND

Comparison of the change in value of a hypothetical $1,000,000 investment
in the Shenkman Short Duration High Income Fund – Institutional Class vs
the ICE BofAML  0-3 US Treasury Index and the ICE BofAML
0-2 Year Duration BB-B U.S. High Yield Constrained Index
 


Average Annual Total Return:
 
   
Since Inception 
 
One Year
10/31/2012
5/17/2013
1/28/2014
Class A (without sales load)
3.65%
3.09%
—
—
Class A (with sales load)
0.53%
2.46%
—
—
Class C (without
       
  deferred sales load)
3.01%
—
—
1.80%
Class C (with
       
  deferred sales load)
2.01%
—
—
1.80%
Class F
3.89%
—
3.01%
—
Institutional Class
3.97%
3.43%
—
—
ICE BofAML 0-3 Year
       
  US Treasury Index
0.39%
0.55%
0.57%
0.61%
ICE BofAML 0-2 Year
       
  Duration BB-B U.S. High
       
  Yield Constrained Index
4.50%
4.23%
3.83%
3.77%
 
Total Annual Fund Operating Expenses: 1.25% (Class A), 2.00% (Class C), 0.99% (Class F), 0.89% (Institutional Class), as of the most recently filed prospectus.
 
Performance data quoted represents past performance; 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 Fund may be lower or higher than the performance quoted.  Performance data current to the most recent month end may be obtained by calling 1-855-743-6562.
 
Returns reflect reinvestment of dividends and capital gains distributions.  Fee waivers are in effect.  In the absence of fee waivers, returns would be reduced. Class A shares may be subject to a 3.00% sales load. Class A shares do not have a contingent deferred sales charge (“CDSC”) except that a charge of 1% applies to certain redemptions made
13
SHENKMAN SHORT DURATION HIGH INCOME FUND
 

 
within thirty calendar days.  Class C shares may be subject to a CDSC of 1.00% on redemptions held for twelve months or less after purchase. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. Indices do not incur expenses and are not available for investment.
 
The ICE BofAML 0-3 Year US Treasury Index (G1QA) tracks the performance of US dollar denominated sovereign debt publicly issued by the US government in its domestic market with maturities less than three years.
 
The ICE BofAML 0-2 Year Duration BB-B U.S. HY Constrained Index (H42C) consists of all securities in the ICE BofAML BB-B U.S. High Yield Index (HUC4) that have a duration-to-worst of 2 years or less. The HUC4 index is a subset of the ICE BofAML U.S. High Yield Index (H0A0) that includes all securities in the H0A0 rated BB1 through B3, inclusive.
 
Information used herein from ICE Data Indices, LLC (“ICE BofAML”) was used with permission. ICE BofAML PERMITS USE OF THE ICE BofAML INDICES AND RELATED DATA ON AN “AS IS” BASIS, MAKES NO WARRANTIES REGARDING SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BofAML INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THE USE OF THE FOREGOING, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND SHENKMAN CAPITAL MANAGEMENT, INC., OR ANY OF ITS PRODUCTS OR SERVICES.

14
SHENKMAN FUNDS

EXPENSE EXAMPLE
September 30, 2017 (Unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs including sales charges (loads), if applicable; redemption fees, if applicable; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1 fees); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a 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 indicated and held for the entire period from April 1, 2017 to September 30, 2017.
 
Actual Expenses
 
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns 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 row entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.  There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $15 fee is charged to the account annually) that would increase the amount of expenses paid on your account.  The example below does not include portfolio trading commissions and related expenses, and other extraordinary expenses as determined under generally accepted accounting principles.
 
Hypothetical Example for Comparison Purposes
 
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and 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.  As noted above, there are some account fees that are charged to certain types of accounts that would increase the amount of expense paid on your account.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the
15
SHENKMAN FUNDS

EXPENSE EXAMPLE – Continued
September 30, 2017 (Unaudited)
 
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(1)
Shenkman Floating Rate High Income Fund
      
Actual
      
Class F
$1,000.00
$1,015.10
$3.23
Institutional Class
$1,000.00
$1,015.50
$2.73
       
Hypothetical (5% return
     
  before expenses)
      
Class F
$1,000.00
$1,021.86
$3.24
Institutional Class
$1,000.00
$1,022.36
$2.74
 
(1)
Shenkman Floating Rate High Income Fund – Class F expenses are equal to the Fund share’s annualized expense ratio of 0.64%, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of 1.51% as of September 30, 2017.  Shenkman Floating Rate High Income Fund – Institutional Class expenses are equal to the Fund share’s annualized expense ratio of 0.54%, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of 1.55% as of September 30, 2017.
 
 
Beginning
Ending
Expenses Paid
 
Account Value
Account Value
During Period(2)
Shenkman Short Duration High Income Fund
      
Actual
      
Class A
$1,000.00
$1,021.80
$4.76
Class C
$1,000.00
$1,018.10
$8.50
Class F
$1,000.00
$1,021.80
$3.75
Institutional Class
$1,000.00
$1,023.30
$3.30
       
Hypothetical (5% return
     
  before expenses)
      
Class A
$1,000.00
$1,020.36
$4.76
Class C
$1,000.00
$1,016.65
$8.49
Class F
$1,000.00
$1,021.36
$3.75
Institutional Class
$1,000.00
$1,021.81
$3.29
 
(2)
Shenkman Short Duration High Income Fund Class A, Class C, Class F, and Institutional Class expenses are equal to the fund shares’ annualized expense ratio of 0.94%, 1.68%, 0.74% and 0.65%, respectively, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the six-month period of operation). The Fund’s ending account values in the table are based on its six-month total return of 2.18% for Class A, 1.81% for Class C, 2.18% for Class F, and 2.33% for the Institutional Class as of September 30, 2017.
 
16
SHENKMAN FLOATING RATE HIGH INCOME FUND

PORTFOLIO ALLOCATION
September 30, 2017 (Unaudited)
 
 

TOP TEN HOLDINGS
  
% Net Assets 
CenturyLink, Inc. 2.75%,
     
  (1 Month USD LIBOR + 2.75%), 01/31/2025
    
0.99
%
Delta 2 Lux S.a.r.l. 4.235%
       
  (1 Month USD LIBOR + 3.25%), 02/01/2024
    
0.94
%
Amaya B.V. 4.833%
       
  (3 Month USD LIBOR + 3.50%), 08/02/2021
    
0.90
%
MPH Acquisition Holdings, LLC 4.333%
       
  (3 Month USD LIBOR + 3.75%), 06/07/2023
    
0.87
%
Brickman Group Ltd., LLC 4.234%
       
  (1 Month USD LIBOR + 3.00%), 12/18/2020
    
0.86
%
Acrisure, LLC 6.272%
       
  (2 Month USD LIBOR + 5.00%), 11/22/2023
    
0.84
%
IMG Worldwide, Inc. 4.49%
       
  (1 Month USD LIBOR + 4.25%), 05/06/2021
    
0.77
%
Genesys Telecommunications Laboratories, Inc. 5.007%
       
  (2 Month USD LIBOR + 3.75%), 12/01/2023
    
0.64
%
Ancestry.com Operations, Inc. 4.49%
       
  (1 Month USD LIBOR + 3.25%), 10/19/2023
    
0.63
%
Trans Union, LLC 3.235%
       
  (1 Month USD LIBOR + 2.00%), 04/07/2023
    
0.60
%

The portfolio’s holdings and allocations are subject to change, and exclude short term investments. The percentages are of total net assets as of September 30, 2017.
 
17
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72%
            
             
Aerospace & Defense – 1.00%
            
CPI International, Inc. 4.735% (1 Month
           
  USD LIBOR + 3.50%), 07/26/2024 (b)
  
$
885,000
    
$
886,111
  
Lockheed Martin Corp. 3.25% (1 Month
               
  USD LIBOR + 2.00%), 08/16/2023 (b)
    
759,337
      
765,036
  
TransDigm, Inc.
                
  4.327% (1-3 Month USD LIBOR + 3.00%),
               
    06/04/2021 (b)
    
483,750
      
485,564
  
  4.268% (1-3 Month USD LIBOR + 3.00%),
               
    05/14/2022 (b)
    
248,801
      
249,692
  
  4.235% (1-3 Month USD LIBOR + 3.00%),
               
    08/22/2024 (b)(j)
    
786,249
      
788,462
  
             
3,174,865
  
                 
Automotive – 2.28%
                
American Axle & Manufacturing, Inc.
               
  3.49% (1 Month USD LIBOR + 2.25%),
               
  04/06/2024 (b)
    
895,234
      
894,119
  
American Tire Distributors, Inc.
               
  5.485% (1 Month USD LIBOR + 4.25%),
               
  09/01/2021 (b)
    
685,930
      
693,218
  
Camping World 4.981% (1 Month
               
  USD LIBOR + 3.75%), 11/08/2023 (b)
    
1,151,300
      
1,158,616
  
CH Hold Corp. 4.235% (1 Month
               
  USD LIBOR + 3.00%), 02/01/2024 (b)
    
519,432
      
524,465
  
Federal-Mogul Corp. 4.98% (1 Month
               
  USD LIBOR + 3.75%), 04/15/2021 (b)
    
455,889
      
459,147
  
KAR Auction Services, Inc. 3.875% (3 Month
               
  USD LIBOR + 2.50%), 03/09/2023 (b)
    
504,031
      
507,575
  
Midas Intermediate Holdco II, LLC
               
  4.083% (3 Month USD LIBOR + 2.75%),
               
  08/18/2021 (b)
    
443,224
      
443,778
  
Navistar, Inc. 5.24% (1 Month
               
  USD LIBOR + 4.00%), 08/07/2020 (b)
    
935,241
      
941,670
  
Tower Automotive Holdings USA, LLC
               
  4.00% (1 Month USD LIBOR + 2.75%),
               
  03/07/2024 (b)
    
485,539
      
487,363
  

The accompanying notes are an integral part of these financial statements.

18
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

    Principal     Fair  
    Amount     Value  
             
BANK LOANS – 85.72% – Continued
            
             
Automotive – 2.28% – Continued
            
TRADER Corp. 4.581% (3 Month
           
  USD LIBOR + 3.25%), 09/28/2023 (b)
  
$
522,375
    
$
522,704
  
Wabash National Corp. 3.987% (1 Month
               
  USD LIBOR + 2.75%), 03/19/2022 (b)
    
585,575
      
587,405
  
             
7,220,060
  
                 
Beverage & Food – 1.52%
                
Dole Food Co., Inc. 4.018% (Prime – 3 Month
                
  USD LIBOR + 2.75%), 04/06/2024 (b)
    
795,000
      
798,351
  
Hearthside Group Holdings, LLC
               
  4.235% (1 Month USD LIBOR + 3.00%),
               
  06/02/2021 (b)
    
1,428,923
      
1,434,875
  
KFC Holding Co. 3.234% (1 Month
               
  USD LIBOR + 2.00%), 06/16/2023 (b)
    
777,170
      
781,541
  
Post Holdings, Inc. 3.49% (1 Month
               
  USD LIBOR + 2.25%), 05/24/2024 (b)
    
798,000
      
800,825
  
Refresco Group N.V. 4.066% (3 Month
               
  USD LIBOR + 2.75%), 07/21/2024 (b)(j)
    
550,000
      
552,750
  
US Foods, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 06/27/2023 (b)
    
438,206
      
441,337
  
             
4,809,679
  
                 
Building Materials – 1.93%
                
CPG International, Inc. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 05/05/2024 (b)
    
1,548,519
      
1,561,743
  
Floor & Decor Outlets of America, Inc.
               
  4.74% (1 Month USD LIBOR + 3.50%),
               
  09/30/2024 (b)
    
337,679
      
338,945
  
Generation Brands Holdings, Inc.
               
  4.985% (1 Month USD LIBOR + 3.75%),
               
  02/28/2024 (b)
    
587,109
      
593,714
  
HD Supply, Inc.
                
  3.583% (3 Month USD LIBOR + 2.25%),
               
    08/13/2021 (b)
    
447,040
      
449,485
  
  3.833% (3 Month USD LIBOR + 2.50%),
               
    10/17/2023 (b)
    
99,250
      
99,953
  
 
The accompanying notes are an integral part of these financial statements.

19
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Building Materials – 1.93% – Continued
            
HD Supply Waterworks Merger Sub, LLC
           
  4.455% (3 Month USD LIBOR + 3.00%),
           
  08/01/2024 (b)
  
$
610,000
    
$
612,098
  
Henry Company, LLC 5.735% (1 Month
               
  USD LIBOR + 4.50%), 09/30/2023 (b)
    
496,250
      
501,213
  
JELD-WEN, Inc. 4.333% (3 Month
               
  USD LIBOR + 3.00%), 07/01/2022 (b)
    
533,094
      
538,147
  
Quikrete Holdings, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 11/15/2023 (b)
    
1,415,059
      
1,416,665
  
             
6,111,963
  
                 
Chemicals – 3.23%
                
Allnex S.à.r.l. 4.567% (3 Month
               
  USD LIBOR + 3.25%), 09/13/2023 (b)
    
529,791
      
532,000
  
Allnex USA, Inc. 4.567% (3 Month
               
  USD LIBOR + 3.25%), 09/13/2023 (b)
    
703,209
      
706,141
  
ColourOz MidCo S.à.r.l.
                
  4.313% (3 Month USD LIBOR + 3.00%),
               
    09/07/2021 (b)
    
894,133
      
873,644
  
  4.313% (3 Month USD LIBOR + 3.00%),
               
    09/07/2021 (b)
    
147,811
      
144,424
  
INEOS Styrolution US Holding, LLC
               
  4.083% (3 Month USD LIBOR + 2.75%),
               
  03/29/2024 (b)
    
769,197
      
777,851
  
MacDermid, Inc.
                
  3.816% (1 Month USD LIBOR + 2.50%),
               
    06/07/2020 (b)(j)
    
30,000
      
30,122
  
  4.239% (1 Month USD LIBOR + 3.00%),
               
    06/07/2023 (b)
    
593,738
      
597,574
  
Methanol Holdings 4.735% (1 Month
               
  USD LIBOR + 3.50%), 06/30/2022 (b)
    
721,310
      
727,629
  
Nexeo Solutions, LLC 5.061% (3 Month
               
  USD LIBOR + 3.75%), 06/09/2023 (b)
    
888,784
      
896,187
  
Orion Engineered Carbons 3.833% (3 Month
               
  USD LIBOR + 2.50%), 07/25/2021 (b)
    
673,624
      
677,666
  
Road Infrastructure Investment, LLC
               
  4.737% (1 Month USD LIBOR + 3.50%),
               
  06/13/2023 (b)
    
679,850
      
684,524
  
                 
The accompanying notes are an integral part of these financial statements.

20
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Chemicals – 3.23% – Continued
            
Solenis International, L.P.
            
  4.567% (3 Month USD LIBOR + 3.25%),
            
     07/31/2021 (b)
  
$
596,047
    
$
595,144
  
  8.067% (3 Month USD LIBOR + 6.75%),
                
     07/31/2022 (b)
    
750,184
      
748,620
  
Tronox, Ltd.
                
  4.317% (3 Month USD LIBOR + 3.00%),
               
    09/22/2024 (b)(j)
    
281,163
      
282,539
  
  3.00% (3 Month USD LIBOR + 3.00%),
               
    09/22/2024 (b)(j)
    
648,837
      
652,013
  
Univar USA, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 07/01/2022 (b)
    
1,027,920
      
1,033,142
  
Venator Materials PLC 4.312% (3 Month
               
  USD LIBOR + 3.00%), 08/08/2024 (b)
    
295,000
      
296,659
  
             
10,255,879
  
                 
Consumer Products – 1.62%
                
Alphabet Holding Co., Inc.
                
  4.833% (3 Month USD LIBOR + 3.50%),
               
    08/15/2024 (b)(j)
    
1,570,000
      
1,553,970
  
  9.061% (3 Month USD LIBOR + 7.75%),
               
    08/15/2025 (b)(j)
    
455,000
      
450,450
  
Energizer Holdings, Inc. 3.25% (1 Month
               
  USD LIBOR + 2.00%), 06/30/2022 (b)
    
636,751
      
640,467
  
KIK Custom Products, Inc. 5.737% (1 Month
                
  USD LIBOR + 4.50%), 08/26/2022 (b)
    
1,724,853
      
1,744,801
  
Prestige Brands, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 01/26/2024 (b)
    
376,523
      
378,842
  
Spectrum Brands, Inc. 3.314% (3 Month
               
  USD LIBOR + 2.00%), 06/23/2022 (b)
    
381,135
      
383,862
  
             
5,152,392
  
                 
Environmental – 1.41%
                
Advanced Disposal Services, Inc.
               
  3.947% (7 Day USD LIBOR + 2.75%),
               
  11/10/2023 (b)
    
927,042
      
934,236
  
Casella Waste Systems, Inc. 3.984% (1 Month
               
  USD LIBOR + 2.75%), 10/17/2023 (b)
    
436,700
      
438,884
  

The accompanying notes are an integral part of these financial statements.

21
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Environmental – 1.41% – Continued
            
GFL Environmental, Inc. 4.083% (3 Month
           
  USD LIBOR + 2.75%), 09/27/2023 (b)
  
$
371,250
    
$
373,455
  
Granite Acquisition, Inc.
                
  5.296% (3 Month USD LIBOR + 4.00%),
               
    12/17/2021 (b)
    
1,621,619
      
1,635,581
  
  5.333% (3 Month USD LIBOR + 4.00%),
               
    12/17/2021 (b)
    
47,145
      
47,551
  
Wheelabrator Technologies 8.583% (3 Month
               
  USD LIBOR + 7.25%), 12/17/2022 (b)
    
510,247
      
512,160
  
Wrangler Buyer Corp. 4.316% (1 Month
               
  USD LIBOR + 3.00%), 09/28/2024 (b)(j)
    
545,000
      
548,518
  
             
4,490,385
  
                 
Finance – Insurance – 1.94%
                
Acrisure, LLC 6.272% (2 Month
               
  USD LIBOR + 5.00%), 11/22/2023 (b)
    
2,641,725
      
2,678,048
  
AssuredPartners, Inc.
                
  4.739% (US LIBOR + 3.50%),
               
    10/21/2022 (b)(j)(k)
    
715,897
      
717,984
  
  4.585% (1 Month USD LIBOR + 3.35%),
               
    10/22/2024 (b)
    
57,250
      
56,678
  
Hub International, Ltd. 4.312% (3 Month
               
  USD LIBOR + 3.25%), 10/02/2020 (b)
    
726,609
      
732,255
  
National Financial Partners Corp.
               
  4.735% (1 Month USD LIBOR + 3.50%),
               
  01/08/2024 (b)
    
1,036,725
      
1,045,578
  
USI, Inc.
                
  4.314% (3 Month USD LIBOR + 3.00%),
               
    05/16/2024 (b)
    
450,000
      
449,251
  
  4.311% (3 Month USD LIBOR + 3.00%),
               
    05/16/2024 (b)(j)
    
485,000
      
483,788
  
             
6,163,582
  

The accompanying notes are an integral part of these financial statements.

22
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Finance – Services – 3.77%
            
AlixPartners LLP
            
  4.333% (3 Month USD LIBOR + 3.00%),
           
    04/04/2024 (b)
  
$
1,621,850
    
$
1,628,192
  
  3.805% (3 Month USD LIBOR + 2.75%),
               
    04/04/2024 (b)(j)
    
92,118
      
92,478
  
Aretech Group, Inc. 2.00% (1 Month
               
  USD LIBOR + 1.00%), 05/23/2021 (b)
    
1,501,266
      
1,498,451
  
Avolon TLB Borrower 1 US, LLC
               
  3.986% (1 Month USD LIBOR + 2.75%),
               
  04/03/2020 (b)
    
1,132,163
      
1,135,831
  
Duff & Phelps Corp. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 04/23/2020 (b)
    
688,066
      
690,216
  
EVO Payments International, LLC
               
  6.24% (1 Month USD LIBOR + 5.00%),
               
  12/22/2023 (b)
    
1,144,250
      
1,160,521
  
Focus Financial Partners, LLC
               
  4.549% (3 Month USD LIBOR + 3.25%),
               
  07/03/2024 (b)
    
485,000
      
489,547
  
Freedom Mortgage Corp. 6.956% (3 Month
               
  USD LIBOR + 5.50%), 02/23/2022 (b)
    
860,491
      
876,630
  
North American Bancard 4.833% (3 Month
               
  USD LIBOR + 3.50%), 06/30/2024 (b)
    
500,000
      
503,440
  
Ocwen Loan Servicing, LLC 6.231% (1 Month
               
  USD LIBOR + 5.00%), 12/05/2020 (b)
    
640,063
      
639,861
  
RCS Capital Corp. 8.00% (1 Month
               
  USD LIBOR + 8.00%), 11/23/2020 (b)
    
551,533
      
554,290
  
VFH Parent Bridge, Inc. 8.670% (3 Month
               
  USD LIBOR + 7.50%), 05/31/2024 (b)(g)(j)
    
1,195,000
      
1,195,000
  
VFH Parent, LLC 5.061% (3 Month
               
  USD LIBOR + 3.75%), 12/30/2021 (b)
    
975,306
      
987,195
  
Walter Investment Management Corp.
               
  4.985% (1 Month USD LIBOR + 3.75%),
               
  12/18/2020 (b)
    
539,563
      
496,589
  
             
11,948,241
  
                 
The accompanying notes are an integral part of these financial statements.

23
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Food & Drug Retailers – 1.11%
            
Albertson’s, LLC
            
  3.985% (1 Month USD LIBOR + 2.75%),
           
    08/25/2021 (b)
  
$
767,459
    
$
741,619
  
  4.33% (3 Month USD LIBOR + 3.00%),
               
    12/21/2022 (b)
    
297,696
      
287,570
  
BJ’s Wholesale Club, Inc.
                
  4.982% (1 Month USD LIBOR + 3.75%),
               
    02/03/2024 (b)
    
1,940,138
      
1,864,608
  
  8.74% (1 Month USD LIBOR + 7.50%),
               
    01/27/2025 (b)
    
650,000
      
623,025
  
             
3,516,822
  
                 
Gaming – 3.80%
                
Amaya B.V. 4.833% (3 Month
               
  USD LIBOR + 3.50%), 08/01/2021 (b)
    
2,833,810
      
2,846,506
  
American Casino & Entertainment
               
  6.50% (3 Month USD LIBOR + 2.25%),
               
  07/07/2022 (b)
    
734,587
      
736,886
  
Arictocrat International Pty, Ltd.
               
  3.316% (3 Month USD LIBOR + 2.00%),
               
  10/19/2024 (b)(j)
    
365,000
      
366,186
  
Aristocrat International Pty, Ltd.
               
  3.307% (3 Month USD LIBOR + 2.00%),
               
  10/20/2021 (b)
    
581,986
      
584,270
  
Eldorado Resorts, Inc. 3.563% (3 Month
               
  USD LIBOR + 2.25%), 04/17/2024 (b)
    
431,843
      
432,113
  
Gateway Casinos & Entertainment, Ltd.
               
  5.083% (3 Month USD LIBOR + 3.75%),
               
  02/22/2023 (b)
    
832,913
      
839,418
  
Golden Entertainment, Inc.
               
  4.202% (3 Month USD LIBOR + 3.00%),
                
  10/20/2024 (b)(j)
    
1,235,000
      
1,229,214
  
Greektown Holdings, LLC 4.235% (1 Month
               
  USD LIBOR + 3.00%), 04/25/2024 (b)
    
867,825
      
869,452
  
MGM Growth Properties Operating
               
  Partnership L.P. 3.485% (1 Month
               
  USD LIBOR + 2.25%), 04/25/2023 (b)
    
821,658
      
825,154
  
                 
The accompanying notes are an integral part of these financial statements.

24
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Gaming – 3.80% – Continued
            
Penn National Gaming, Inc. 3.735% (1 Month
           
  USD LIBOR + 2.50%), 01/19/2024 (b)
  
$
940,275
    
$
946,218
  
Scientific Games International, Inc.
               
  4.485% (1 Month USD LIBOR + 3.25%),
               
  08/14/2024 (b)
    
1,175,000
      
1,178,490
  
Station Casinos, LLC 3.74% (1 Month
               
  USD LIBOR + 2.50%), 06/08/2023 (b)
    
1,188,745
      
1,191,241
  
             
12,045,148
  
                 
General Industrial Manufacturing – 4.37%
                
Aclara Technologies, LLC 7.067% (3 Month
               
  USD LIBOR + 5.75%), 08/29/2023 (b)
    
569,250
      
580,635
  
Clark Equipment Co. 4.083% (3 Month
               
  USD LIBOR + 2.75%), 05/12/2024 (b)
    
955,200
      
962,364
  
Columbus McKinnon Corp. 4.296% (3 Month
               
  USD LIBOR + 3.00%), 01/20/2024 (b)
    
591,975
      
594,565
  
Cortes NP Acquisition Corp. 5.235% (1 Month
               
  USD LIBOR + 4.00%), 11/30/2023 (b)
    
1,378,966
      
1,391,604
  
EWT Holdings III Corp. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 01/15/2021 (b)
    
1,541,433
      
1,563,591
  
Filtration Group Corp. 4.235% (1 Month
               
  USD LIBOR + 3.00%), 11/21/2020 (b)
    
1,297,938
      
1,307,945
  
Manitowoc Foodservice, Inc. 3.985% (7 Day
               
  USD LIBOR + 2.75%), 03/03/2023 (b)
    
554,089
      
558,358
  
Milacron, LLC 4.235% (1 Month
               
  USD LIBOR + 3.00%), 09/28/2023 (b)
    
1,166,188
      
1,172,992
  
MTS Systems Corp. 4.49% (1 Month
               
  USD LIBOR + 3.25%), 07/05/2023 (b)
    
905,850
      
913,776
  
MW Industries, Inc. 5.316% (3 Month
               
  USD LIBOR + 4.00%), 09/28/2024 (b)(j)
    
450,000
      
451,125
  
North American Lifting Holdings, Inc.
               
  5.833% (3 Month USD LIBOR + 4.50%),
               
  11/27/2020 (b)
    
830,739
      
766,356
  
Penn Engineering & Manufacturing Corp.
               
  3.985% (1 Month USD LIBOR + 2.75%),
               
  06/27/2024 (b)
    
887,775
      
891,939
  
RBS Global, Inc. 4.060% (1-3 Month
               
  USD LIBOR + 2.75%), 08/21/2023 (b)
    
1,389,500
      
1,396,316
  

The accompanying notes are an integral part of these financial statements.

25
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
General Industrial Manufacturing – 4.37% – Continued
            
Unifrax Corp. 5.083% (3 Month
           
  USD LIBOR + 3.75%), 03/31/2024 (b)
  
$
908,613
    
$
915,618
  
Utility One Source 6.735% (1 Month
               
  USD LIBOR + 5.50%), 04/18/2023 (b)
    
389,025
      
399,723
  
             
13,866,907
  
                 
Healthcare – 9.46%
                
Acadia Healthcare Co, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 02/11/2022 (b)
    
935,570
      
943,171
  
Air Medical Group Holdings, Inc.
                
  4.485% (1 Month USD LIBOR + 3.25%),
               
    04/28/2022 (b)
    
1,072,041
      
1,065,877
  
  5.567% (3 Month USD LIBOR + 4.25%),
               
    09/26/2024 (b)(j)
    
385,000
      
385,362
  
Albany Molecular Research, Inc.
               
  4.583% (3 Month USD LIBOR + 3.25%),
               
  08/31/2024 (b)
    
940,000
      
942,059
  
Avantor Performance Materials Holdings, Inc.
               
  5.24% (1 Month USD LIBOR + 4.00%),
               
  03/10/2024 (b)
    
820,875
      
824,298
  
Catalent Pharma Solutions 3.985% (1 Month
               
  USD LIBOR + 2.75%), 05/20/2021 (b)
    
783,922
      
790,660
  
Change Healthcare Holdings, LLC
               
  3.985% (1 Month USD LIBOR + 2.75%),
               
  03/01/2024 (b)
    
761,637
      
764,542
  
CHG Healthcare Services, Inc.
               
  4.561% (3 Month USD LIBOR + 3.25%),
               
  06/07/2023 (b)
    
418,625
      
423,186
  
CHS/Community Health Systems, Inc.
                
  4.067% (3 Month USD LIBOR + 2.75%),
               
    12/31/2019 (b)
    
137,604
      
136,974
  
  4.317% (3 Month USD LIBOR + 3.00%),
               
    01/27/2021 (b)
    
377,026
      
375,070
  
Concentra, Inc. 4.32% (3 Month
               
  USD LIBOR + 3.00%), 06/01/2022 (b)
    
287,765
      
289,083
  
Endo Pharmaceuticals, Inc. 5.50% (1 Month
               
  USD LIBOR + 4.25%), 04/27/2024 (b)
    
563,588
      
569,928
  

The accompanying notes are an integral part of these financial statements.

26
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017
 
   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Healthcare – 9.46% – Continued
            
Envision Healthcare Corp. 4.24% (1 Month
           
  USD LIBOR + 3.00%), 12/01/2023 (b)
  
$
1,202,318
    
$
1,207,205
  
Exam Works Group, Inc. 4.485% (1 Month
               
  USD LIBOR + 3.25%), 07/27/2023 (b)
    
848,531
      
854,683
  
Greatbatch Ltd. 4.74% (1 Month
               
  USD LIBOR + 3.50%), 10/27/2022 (b)
    
719,555
      
724,729
  
Greenway Health, LLC 5.58% (3 Month
               
  USD LIBOR + 4.25%), 02/16/2024 (b)
    
648,375
      
651,617
  
Grifols Worldwide Operations USA, Inc.
               
  3.447% (7 Day USD LIBOR + 2.25%),
               
  01/31/2025 (b)
    
942,150
      
944,929
  
HC Group Holdings III, Inc.
               
  6.317% (3 Month USD LIBOR + 5.00%),
               
  04/07/2022 (b)
    
1,156,252
      
1,169,259
  
HCA, Inc.
                
  3.235% (1 Month USD LIBOR + 2.00%),
               
    03/18/2023 (b)
    
535,950
      
538,464
  
  3.485% (1 Month USD LIBOR + 2.25%),
               
    02/15/2024 (b)
    
199,000
      
200,190
  
Heartland Dental, LLC 5.99% (3 Month
               
  USD LIBOR + 4.75%), 07/31/2023 (b)
    
450,000
      
453,038
  
INC Research Holdings, Inc.
               
  3.485% (1 Month USD LIBOR + 2.25%),
               
    06/26/2024 (b)
    
1,025,000
      
1,029,771
  
Jaguar Holding Co. 4.037% (1-3 Month
               
  USD LIBOR + 2.75%), 08/18/2022 (b)
    
1,771,984
      
1,782,872
  
Mallinckrodt International Finance SA
               
  4.083% (3 Month USD LIBOR + 2.75%),
               
  09/24/2024 (b)
    
1,085,450
      
1,086,432
  
Micro Holding Corp. 5.07% (3 Month
               
  USD LIBOR + 3.00%), 09/15/2024 (b)
    
935,000
      
931,494
  
MPH Acquisition Holdings, LLC
               
  4.333% (3 Month USD LIBOR + 3.00%),
               
  06/07/2023 (b)
    
2,741,304
      
2,766,359
  
NMSC Holdings, Inc. 6.333% (3 Month
               
  USD LIBOR + 5.00%), 04/19/2023 (b)
    
442,528
      
449,719
  

The accompanying notes are an integral part of these financial statements.

27
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Healthcare – 9.46% – Continued
            
PAREXEL International Corp.
           
  4.304% (1 Month USD LIBOR + 3.00%),
           
    09/27/2024 (b)(j)
  
$
575,000
    
$
579,675
  
  3.75%, 12/31/2021 (g)(j)(k)
    
695,000
      
695,000
  
PharMerica 5.061% (3 Month
               
  USD LIBOR + 3.50%), 09/26/2024 (b)(j)
    
1,135,000
      
1,143,155
  
Press Ganey Holdings, Inc. 4.485% (1 Month
               
  USD LIBOR + 3.25%), 10/21/2023 (b)
    
635,200
      
639,370
  
QuintilesIMS 3.321% (3 Month
               
  USD LIBOR + 2.00%), 01/18/2025 (b)(j)
    
555,000
      
558,666
  
RPI Finance Trust 3.333% (3 Month
               
  USD LIBOR + 2.00%), 03/27/2023 (b)
    
929,178
      
932,792
  
Sterigenics-Nordion Holdings, LLC
               
  4.235% (1 Month USD LIBOR + 3.00%),
               
  05/15/2022 (b)
    
182,915
      
183,373
  
Team Health, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 02/06/2024 (b)
    
716,400
      
704,762
  
Valeant Pharmaceuticals International, Inc.
               
  5.99% (1 Month USD LIBOR + 4.75%),
               
  04/01/2022 (b)
    
1,576,082
      
1,605,957
  
VCVH Holding Corp. 6.34% (3 Month
               
  USD LIBOR + 5.00%), 06/01/2023 (b)
    
641,875
      
648,294
  
             
29,992,015
  
                 
Hotels – 0.51%
                
Belmond Interfin, Ltd. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 07/03/2024 (b)
    
713,213
      
715,891
  
ESH Hospitality, Inc. 3.735% (1 Month
               
  USD LIBOR + 2.50%), 08/30/2023 (b)
    
886,067
      
890,900
  
             
1,606,791
  
                 
Investments & Miscellaneous
               
  Financial Services – 0.23%
                
Fortress Investment Group, LLC
               
  2.75% (1 Month USD LIBOR + 2.75%),
               
  06/12/2022 (b)
    
720,000
      
728,489
  

The accompanying notes are an integral part of these financial statements.

28
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Leisure & Entertainment – 2.35%
            
CDS U.S. Intermediate Holdings, Inc.
           
  5.083% (3 Month USD LIBOR + 3.75%),
           
  07/08/2022 (b)
  
$
980,044
    
$
982,803
  
Delta 2 Lux S.a.r.l. 4.235% (1 Month
               
  USD LIBOR + 3.00%), 02/01/2024 (b)
    
2,946,427
      
2,968,157
  
Intrawest Resorts Holdings, Inc.
               
  4.485% (1 Month USD LIBOR + 3.25%),
               
  07/31/2024 (b)(j)
    
1,845,000
      
1,857,112
  
Seaworld Parks & Entertainment, Inc.
               
  4.333% (3 Month USD LIBOR + 3.00%),
               
  03/31/2024 (b)
    
882,217
      
856,853
  
UFC Holdings, LLC 4.49% (1 Month
               
  USD LIBOR + 3.25%), 08/18/2023 (b)
    
772,200
      
776,420
  
             
7,441,345
  
                 
Media – Broadcast – 3.69%
                
Beasley Mezzanine Holdings, LLC
               
  7.237% (1 Month USD LIBOR + 6.00%),
               
  11/01/2023 (b)
    
574,642
      
582,724
  
CBS Radio, Inc. 4.737% (1 Month
               
  USD LIBOR + 3.50%), 10/17/2023 (b)
    
803,854
      
811,394
  
Cumulus Media Holdings, Inc.
               
  4.49% (1 Month USD LIBOR + 3.25%),
               
  12/23/2020 (b)
    
2,071,521
      
1,736,192
  
Entercom Radio, LLC 4.735% (1 Month
               
  USD LIBOR + 3.50%), 11/01/2023 (b)
    
882,604
      
886,355
  
EW Scripps Co/The 3.561% (1 Month
               
  USD LIBOR + 2.25%), 10/02/2024 (b)(j)
    
580,000
      
582,903
  
Gray Television, Inc. 3.735% (1 Month
               
  USD LIBOR + 2.50%), 02/07/2024 (b)
    
645,125
      
649,293
  
Hubbard Radio, LLC 4.49% (1 Month
               
  USD LIBOR + 3.25%), 05/27/2022 (b)
    
403,881
      
405,523
  
ION Media Networks, Inc. 4.24% (1 Month
               
  USD LIBOR + 3.00%), 12/18/2020 (b)
    
1,050,000
      
1,056,563
  
Mission Broadcasting, Inc. 3.735% (1 Month
               
  USD LIBOR + 2.50%), 01/17/2024 (b)
    
98,432
      
98,819
  

The accompanying notes are an integral part of these financial statements.

29
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Media – Broadcast – 3.69% – Continued
            
Nexstar Broadcasting, Inc. 3.735% (1 Month
           
  USD LIBOR + 2.50%), 07/19/2024 (b)
  
$
786,272
    
$
789,362
  
Quincy Newspapers, Inc. 4.49% (1 Month
               
  USD LIBOR + 3.25%), 11/02/2022 (b)
    
756,735
      
760,518
  
Townsquare Media, Inc. 4.272% (2 Month
               
  USD LIBOR + 3.00%), 04/01/2022 (b)
    
421,754
      
421,227
  
Tribune Media Co.
                
  4.235% (1 Month USD LIBOR + 3.00%),
               
    12/27/2020 (b)
    
90,407
      
90,802
  
  4.235% (1 Month USD LIBOR + 3.00%),
               
    01/27/2024 (b)
    
1,126,806
      
1,130,681
  
Univision Communications, Inc.
               
  3.985% (1 Month USD LIBOR + 2.75%),
               
  03/15/2024 (b)
    
1,721,006
      
1,707,892
  
             
11,710,248
  
                 
Media – Cable – 3.71%
                
Atlantic Broadband 3.674% (3 Month
               
  USD LIBOR + 2.375%), 08/11/2024 (b)(j)
    
875,000
      
870,896
  
Cable ONE, Inc. 3.57% (3 Month
               
  USD LIBOR + 2.25%), 05/01/2024 (b)
    
468,825
      
472,341
  
Charter Communications Operating, LLC
                
  3.24% (1 Month USD LIBOR + 2.00%),
               
    07/01/2020 (b)
    
148,584
      
149,257
  
  3.49% (1 Month USD LIBOR + 2.25%),
               
    01/15/2024 (b)
    
909,706
      
914,381
  
CSC Holdings, LLC 3.484% (1 Month
               
  USD LIBOR + 2.25%), 07/17/2025 (b)
    
497,503
      
495,503
  
Hargray Communications 4.235% (1 Month
               
  USD LIBOR + 3.00%), 05/16/2024 (b)
    
812,963
      
816,861
  
Lions Gate Entertainment Corp.
               
  4.235% (1 Month USD LIBOR + 3.00%),
               
  12/08/2023 (b)
    
575,813
      
581,090
  
Mediacom Illinois, LLC 3.45% (7 Day
               
  USD LIBOR + 2.25%), 02/15/2024 (b)
    
676,600
      
678,853
  
RCN Corp. 4.235% (1 Month
               
  USD LIBOR + 3.00%), 02/01/2024 (b)
    
1,144,250
      
1,130,485
  
                 
 
The accompanying notes are an integral part of these financial statements.

30
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Media – Cable – 3.71% – Continued
            
Telenet Financing USD, LLC
           
  3.984% (1 Month USD LIBOR + 2.75%),
           
  06/30/2025 (b)
  
$
935,000
    
$
938,857
  
Unitymedia Finance, LLC 3.487% (1 Month
               
  USD LIBOR + 2.25%), 09/30/2025 (b)
    
360,000
      
359,438
  
UPC Financing Partnership 3.984% (1 Month
               
  USD LIBOR + 2.75%), 04/15/2025 (b)
    
600,000
      
602,580
  
Virgin Media Bristol, LLC 3.984% (1 Month
               
  USD LIBOR + 2.75%), 01/31/2025 (b)
    
1,175,000
      
1,180,511
  
WideOpenWest Finance, LLC /
               
  WideOpenWest Capital Corp.
               
  4.484% (1 Month USD LIBOR + 3.25%),
               
  08/19/2023 (b)
    
1,850,930
      
1,850,642
  
Ziggo B.V. 3.734% (1 Month
               
  USD LIBOR + 2.50%), 04/27/2025 (b)
    
720,000
      
720,227
  
             
11,761,922
  
                 
Media Diversified & Services – 3.54%
                
Ancestry.com Operations, Inc.
               
  4.49% (1 Month USD LIBOR + 3.25%),
               
  10/19/2023 (b)
    
1,989,900
      
2,006,695
  
Catalina Marketing Corp. 4.735% (1 Month
               
  USD LIBOR + 3.50%), 04/09/2021 (b)
    
1,015,648
      
857,796
  
Creative Artists Agency, LLC
               
  4.734% (1 Month USD LIBOR + 3.50%),
               
  02/13/2024 (b)
    
937,500
      
942,778
  
EMI Music Publishing Group
               
  3.731% (1 Month USD LIBOR + 2.50%),
               
  08/20/2023 (b)
    
1,003,207
      
1,007,160
  
IMG Worldwide, Inc. 4.49% (1 Month
               
  USD LIBOR + 3.25%), 05/06/2021 (b)
    
2,431,625
      
2,451,381
  
Learfield Communications, Inc.
               
  4.49% (1 Month USD LIBOR + 3.25%),
               
  12/01/2023 (b)
    
595,500
      
599,782
  
Match Group, Inc. 3.809% (3 Month
               
  USD LIBOR + 2.50%), 11/16/2022 (b)
    
500,000
      
504,375
  
Quebecor Media, Inc. 3.565% (3 Month
               
  USD LIBOR + 2.25%), 08/17/2020 (b)
    
969,948
      
973,988
  

The accompanying notes are an integral part of these financial statements.

31
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

    Principal     Fair  
    Amount     Value  
             
BANK LOANS – 85.72% – Continued
            
             
Media Diversified & Services – 3.54% – Continued
            
Vivid Seats 5.235% (1 Month
           
  USD LIBOR + 4.00%), 06/30/2024 (b)
  
$
778,050
    
$
779,023
  
WMG Acquisition Corp. 3.737% (1 Month
               
  USD LIBOR + 2.50%), 11/01/2023 (b)
    
1,100,000
      
1,103,954
  
             
11,226,932
  
                 
Metals & Mining Excluding Steel – 0.23%
                
Westmoreland Coal Co. 7.833% (3 Month
               
  USD LIBOR + 6.50%), 12/16/2020 (b)(j)(g)
    
1,108,054
      
747,937
  
                 
Non-Food & Drug Retailers – 3.06%
                
ABG Intermediate Holdings 2, LLC
                
  5.296% (3 Month USD LIBOR + 2.75%),
               
    05/27/2021 (b)
    
1,330,545
      
1,341,084
  
  4.816% (3 Month USD LIBOR + 3.50%),
               
    09/29/2024 (b)(j)
    
348,157
      
349,898
  
  9.066% (3 Month USD LIBOR + 7.75%),
               
    09/29/2025 (b)(j)
    
220,495
      
222,700
  
Ascena Retail Group, Inc. 5.75% (1 Month
               
  USD LIBOR + 4.50%), 08/21/2022 (b)
    
1,093,458
      
895,728
  
Bass Pro Group, LLC 6.270% (1-3 Month
               
  USD LIBOR + 5.00%), 09/25/2024 (b)
    
895,000
      
845,399
  
Harbor Freight Tools USA, Inc.
               
  4.485% (1 Month USD LIBOR + 3.25%),
               
  08/16/2023 (b)
    
805,650
      
809,964
  
Jo-Ann Stores, LLC 6.391% (3 Month
               
  USD LIBOR + 5.00%), 10/21/2023 (b)
    
710,286
      
680,987
  
Michaels Stores, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 01/28/2023 (b)
    
867,855
      
868,320
  
National Vision, Inc. 4.235% (1 Month
               
  USD LIBOR + 3.00%), 03/13/2021 (b)
    
926,646
      
930,505
  
Neiman Marcus Group, Inc.
                
  4.481% (1 Month USD LIBOR + 3.25%),
               
  10/25/2020 (b)
    
1,320,848
      
988,100
  
PetSmart, Inc. 4.24% (1 Month
               
  USD LIBOR + 3.00%), 03/10/2022 (b)
    
950,278
      
806,349
  

The accompanying notes are an integral part of these financial statements.

32
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Non-Food & Drug Retailers – 3.06% – Continued
            
Sally Holdings, LLC / Sally Capital, Inc.
           
  4.50%, 07/05/2024
  
$
960,000
    
$
960,600
  
             
9,699,634
  
                 
Oil & Gas – 0.70%
                
American Energy – Marcellus, LLC
               
  8.735% (1 Month USD LIBOR + 7.50%),
               
  08/04/2021 (b)(f)
    
1,204,382
      
87,318
  
Floatel Delaware, LLC 6.333% (3 Month
               
  USD LIBOR + 5.00%), 06/27/2020 (b)
    
1,485,250
      
1,170,866
  
HGIM Corp. 7.75% (3 Month
               
  USD LIBOR + 4.50%), 06/18/2020 (b)(f)(j)
    
1,499,649
      
530,501
  
Seadrill Partners, LLC 4.333% (3 Month
               
  USD LIBOR + 3.00%), 02/21/2021 (b)
    
593,660
      
437,361
  
             
2,226,046
  
                 
Packaging – 3.23%
                
Anchor Glass Container Corp.
               
  3.981% (1 Month USD LIBOR + 2.75%),
               
  12/07/2023 (b)
    
491,288
      
493,963
  
Berry Global, Inc.
                
  3.485% (1 Month USD LIBOR + 2.25%),
               
    02/08/2020 (b)
    
544,662
      
547,260
  
  3.485% (1 Month USD LIBOR + 2.25%),
               
    01/19/2024 (b)
    
860,675
      
862,530
  
BWAY Corp. 4.481% (1 Month
               
  USD LIBOR + 3.25%), 04/03/2024 (b)
    
1,042,388
      
1,046,573
  
Hoffmaster Group, Inc. 5.833% (3 Month
               
  USD LIBOR + 4.50%), 11/23/2023 (b)
    
744,375
      
751,354
  
Industrial Container Services
                
  5.32% (3 Month USD LIBOR + 4.00%),
               
    04/28/2024 (b)
    
1,024,941
      
1,032,628
  
  5.32% (3 Month USD LIBOR + 4.00%),
               
    04/29/2024 (b)
    
185,059
      
186,447
  
PKC Holding Corp. 4.812% (3 Month
               
  USD LIBOR + 3.50%), 05/08/2024 (b)
    
1,083,750
      
1,083,749
  

The accompanying notes are an integral part of these financial statements.

33
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Packaging – 3.23% – Continued
            
Reynolds Group Issuer, Inc. / Reynolds Group
           
  Issuer, LLC / Reynolds Group Issuer Lu
           
  4.235% (1 Month USD LIBOR + 3.00%),
           
  02/05/2023 (b)
  
$
980,119
    
$
984,926
  
RING Container Technologies
               
  4.066% (3 Month USD LIBOR + 2.75%),
               
  10/31/2024 (b)(j)
    
780,000
      
776,100
  
SIG Combibloc Holdings S.C.A.
               
  4.235% (1 Month USD LIBOR + 2.25%),
               
  03/13/2022 (b)
    
1,015,913
      
1,020,993
  
Signode Industrial Group Lux S.A.
               
  4.031% (1-3 Month USD LIBOR + 2.75%),
               
  05/01/2021 (b)
    
682,146
      
685,697
  
TricorBraun, Inc.
                
  5.083% (3 Month USD LIBOR + 3.75%),
               
    10/30/2023 (b)
    
699,261
      
705,233
  
  4.75% (US LIBOR + 3.75%),
               
    10/31/2023 (b)(k)(m)
    
70,455
      
71,056
  
             
10,248,509
  
                 
Printing & Publishing – 0.74%
                
Cengage Learning, Inc. 5.485% (1 Month
               
  USD LIBOR + 4.25%), 06/07/2023 (b)
    
433,605
      
400,929
  
Harland Clarke Holdings Corp.
                
  7.333% (3 Month USD LIBOR + 6.00%),
               
    12/31/2021 (b)
    
309,209
      
311,625
  
  6.833% (3 Month USD LIBOR + 5.50%),
               
    02/09/2022 (b)
    
630,569
      
635,251
  
McGraw Hill Global Education Holdings, LLC
               
  5.235% (1 Month USD LIBOR + 4.00%),
               
  05/04/2022 (b)
    
172,886
      
170,185
  
Tribune Publishing Co. 5.985% (1 Month
               
  USD LIBOR + 4.75%), 08/04/2021 (b)
    
817,550
      
824,703
  
             
2,342,693
  
                 
Restaurants – 0.39%
                
1011778 B.C. Unlimited Liability Co.
               
  3.485% (1 Month USD LIBOR + 2.25%),
                
  02/17/2024 (b)
    
426,955
      
426,849
  

The accompanying notes are an integral part of these financial statements.

34
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Restaurants – 0.39% – Continued
            
NPC International, Inc. 4.738% (1 Month
           
  USD LIBOR + 3.50%), 04/20/2024 (b)
  
$
788,025
    
$
797,631
  
             
1,224,480
  
                 
Steel Producers & Products – 0.32%
                
MRC Global 4.742% (1 Month
               
  USD LIBOR + 3.50%), 09/20/2024 (b)
    
295,000
      
298,688
  
Zekelman Industries, Inc. 4.073% (3 Month
               
  USD LIBOR + 2.75%), 06/14/2021 (b)
    
716,957
      
721,258
  
             
1,019,946
  
                 
Support – Services – 9.42%
                
Access CIG, LLC 6.237% (1 Month
               
  USD LIBOR + 5.00%), 10/17/2021 (b)
    
1,215,664
      
1,224,174
  
Allied Universal Holdco, LLC
               
  5.083% (3 Month USD LIBOR + 3.75%),
               
  07/28/2022 (b)
    
748,101
      
747,402
  
Aramark Corp. 3.235% (1 Month
               
  USD LIBOR + 2.00%), 03/28/2024 (b)
    
503,795
      
506,210
  
Asurion, LLC
                
  3.985% (1 Month USD LIBOR + 2.75%),
               
    08/04/2022 (b)
    
1,472,922
      
1,478,998
  
  4.235% (1 Month USD LIBOR + 3.00%),
               
    11/03/2023 (b)
    
1,433,955
      
1,442,021
  
  7.235% (1 Month USD LIBOR + 6.00%),
               
    08/04/2025 (b)
    
310,000
      
317,589
  
Avatar Purchaser, Inc. 5.066% (3 Month
               
  USD LIBOR + 3.75%), 09/29/2024 (b)(j)
    
635,000
      
631,825
  
Brand Energy & Infrastructure Services, Inc.
               
  5.564% (2-3 Month USD LIBOR + 4.25%),
               
  06/21/2024 (b)
    
1,550,163
      
1,559,952
  
Brickman Group Ltd., LLC 4.234% (1 Month
               
  USD LIBOR + 3.00%), 12/18/2020 (b)
    
2,720,533
      
2,736,011
  
Camelot Finance L.P. 4.735% (1 Month
               
  USD LIBOR + 3.50%), 10/03/2023 (b)
    
1,687,993
      
1,696,956
  
Coinmach Services 5.014% (2 Month
               
  USD LIBOR + 3.75%), 11/14/2022 (b)
    
1,195,000
      
1,201,871
  

The accompanying notes are an integral part of these financial statements.

35
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Support – Services – 9.42% – Continued
            
Garda World Security Corp. 5.311%
           
  (Prime – 3 Month USD LIBOR + 3.00%),
           
    05/26/2024 (b)
  
$
1,025,186
    
$
1,036,935
  
GEO Group, Inc. 3.49% (1 Month
               
  USD LIBOR + 2.25%), 03/23/2024 (b)
    
940,275
      
943,406
  
Hertz Corp. 3.99% (1 Month
               
  USD LIBOR + 2.75%), 06/30/2023 (b)
    
516,804
      
514,037
  
Information Resources, Inc.
                
  5.487% (1 Month USD LIBOR + 4.25%),
               
    01/18/2024 (b)
    
1,129,325
      
1,142,030
  
  9.487% (1 Month USD LIBOR + 8.25%),
               
    01/18/2025 (b)
    
720,000
      
721,350
  
Learning Care Group, Inc. 5.264% (2-3 Month
                
  USD LIBOR + 4.00%), 05/05/2021 (b)
    
524,345
      
530,244
  
Moneygram International, Inc.
               
  4.583% (3 Month USD LIBOR + 3.25%),
               
  03/28/2020 (b)
    
792,258
      
792,013
  
Pods, Inc. 4.485% (1 Month
               
  USD LIBOR + 3.25%), 02/02/2022 (b)
    
947,687
      
955,586
  
Renaissance Learning, Inc. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 04/09/2021 (b)
    
1,180,141
      
1,189,730
  
Sedgwick Claims Management Services
               
  3.985% (1 Month USD LIBOR + 3.00%),
               
  02/28/2021 (b)
    
775,285
      
777,611
  
ServiceMaster Co., LLC 3.735% (1 Month
               
  USD LIBOR + 2.50%), 11/08/2023 (b)
    
848,588
      
853,255
  
SiteOne Landscape Supply Holding, LLC
               
  4.74% (1 Month USD LIBOR + 3.50%),
               
  04/29/2022 (b)
    
398,463
      
401,328
  
Staples, Inc. 5.31% (3 Month
               
  USD LIBOR + 4.00%), 09/12/2024 (b)(j)
    
860,000
      
857,158
  
Tempo Acquisition, LLC 4.235% (1 Month
               
  USD LIBOR + 3.00%), 05/01/2024 (b)
    
1,047,375
      
1,049,124
  
TKC Holdings, Inc. 5.522% (2 Month
               
  USD LIBOR + 4.25%), 02/01/2023 (b)
    
567,150
      
573,057
  
TMK Hawk Parent Corp. 4.816% (3 Month
               
  USD LIBOR + 3.50%), 09/15/2024 (b)(j)
    
402,051
      
405,380
  

The accompanying notes are an integral part of these financial statements.

36
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Support – Services – 9.42% – Continued
            
Trans Union, LLC 3.235% (1 Month
           
  USD LIBOR + 2.00%), 04/09/2023 (b)
  
$
1,893,431
    
$
1,892,246
  
TriMark USA 4.816% (3 Month
                
  USD LIBOR + 3.50%), 09/15/2024 (b)(j)
    
17,949
      
18,097
  
USIC Holdings, Inc. 5.004% (3 Month
               
  USD LIBOR + 3.50%), 12/09/2023 (b)
    
809,236
      
815,641
  
West Corp.
                
  3.735% (1 Month USD LIBOR + 2.50%),
               
    06/17/2021 (b)
    
271,569
      
271,952
  
  3.735% (1 Month USD LIBOR + 2.50%),
               
    06/17/2023 (b)
    
581,811
      
582,756
  
             
29,865,945
  
                 
Technology – 6.99%
                
Canyon Valor Cos., Inc. 5.583% (3 Month
               
  USD LIBOR + 4.25%), 06/16/2023 (b)
    
655,000
      
664,141
  
CCC Information Services, Inc.
               
  4.24% (1 Month USD LIBOR + 3.00%),
               
  03/31/2024 (b)
    
608,475
      
608,475
  
CommScope, Inc. 3.235% (1 Month
               
  USD LIBOR + 2.00%), 12/29/2022 (b)
    
644,914
      
647,977
  
Compuware Corp. 5.49% (1 Month
               
  USD LIBOR + 4.25%), 12/15/2021 (b)
    
900,852
      
912,113
  
Dell International, LLC 3.74% (1 Month
               
  USD LIBOR + 2.50%), 09/07/2023 (b)
    
995,000
      
999,612
  
Diebold Nixdorf, Inc. 4.00% (1 Month
               
  USD LIBOR + 2.75%), 11/06/2023 (b)
    
423,560
      
424,753
  
Genesys Telecommunications
               
  Laboratories, Inc. 5.007% (2 Month
               
  USD LIBOR + 3.75%), 12/01/2023 (b)
    
1,999,913
      
2,016,701
  
Global Payments, Inc. 3.235% (1 Month
               
  USD LIBOR + 2.00%), 04/22/2023 (b)
    
719,385
      
722,403
  
Informatica Corp. 4.833% (3 Month USD
                
  LIBOR + 3.50%), 08/06/2022 (b)
    
685,977
      
687,510
  
JDA Software Group, Inc. 4.735% (1 Month
               
  USD LIBOR + 3.50%), 10/12/2023 (b)
    
560,763
      
565,019
  
Kronos, Inc./MA 4.811% (3 Month
               
  USD LIBOR + 3.50%), 11/01/2023 (b)
    
635,208
      
639,575
  

The accompanying notes are an integral part of these financial statements.

37
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Technology – 6.99% – Continued
            
LANDesk Group Inc. 5.49% (1 Month
           
  USD LIBOR + 4.25%), 01/20/2024 (b)
  
$
870,481
    
$
850,529
  
MaxLinear, Inc. 3.737% (1 Month
               
  USD LIBOR + 2.50%), 05/12/2024 (b)
    
371,412
      
373,037
  
Micro Focus
                
  3.987% (1 Month USD LIBOR + 2.75%),
               
    04/29/2024 (b)
    
114,146
      
114,517
  
  3.987% (1 Month USD LIBOR + 2.75%),
               
    06/21/2024 (b)
    
770,854
      
773,360
  
Misys 4.817% (3 Month
               
  USD LIBOR + 3.50%), 06/16/2024 (b)
    
725,000
      
729,042
  
Neustar, Inc. 5.062% (3 Month
               
  USD LIBOR + 3.75%), 03/01/2024 (b)
    
540,000
      
545,287
  
ON Semiconductor Corp. 3.485% (1 Month
               
  USD LIBOR + 2.25%), 03/31/2023 (b)
    
524,645
      
527,132
  
Optiv Security, Inc. 4.563% (3 Month
               
  USD LIBOR + 3.25%), 02/01/2024 (b)
    
890,104
      
838,554
  
Qlik Technologies 4.81% (3 Month
               
  USD LIBOR + 3.50%), 04/26/2024 (b)
    
798,000
      
781,294
  
Rackspace Hosting, Inc. 4.311% (3 Month
               
  USD LIBOR + 3.00%), 11/03/2023 (b)
    
354,113
      
354,157
  
Solarwinds Holdings, Inc. 4.735% (1 Month
               
  USD LIBOR + 3.50%), 02/05/2023 (b)
    
1,651,322
      
1,658,545
  
Solera, LLC 4.485% (1 Month
               
  USD LIBOR + 3.25%), 03/03/2023 (b)
    
1,354,809
      
1,360,811
  
Sybil Software LLC 4.583% (3 Month
               
  USD LIBOR + 3.25%), 09/30/2023 (b)
    
789,506
      
794,074
  
Synchronoss Technologies, Inc.
               
  5.735% (1 Month USD LIBOR + 4.50%),
               
  01/19/2024 (b)
    
1,268,625
      
1,203,291
  
TIBCO Software, Inc. 4.740% (1 Month
               
  USD LIBOR + 3.50%), 12/04/2020 (b)
    
746,240
      
749,878
  
Vantiv, LLC
                
  2.00% (3 Month USD LIBOR + 2.00%),
               
    08/07/2024 (b)(j)
    
92,041
      
92,144
  
  3.316% (1 Month USD LIBOR + 2.00%),
               
    08/07/2024 (b)(j)
    
327,959
      
328,710
  

The accompanying notes are an integral part of these financial statements.

38
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Technology – 6.99% – Continued
            
VF Holdings Corp. 4.485% (1 Month
           
  USD LIBOR + 3.25%), 06/17/2023 (b)
  
$
559,350
    
$
562,150
  
Western Digital Corp. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 04/29/2023 (b)
    
651,775
      
656,787
  
             
22,181,578
  
                 
Telecommunications – Satellites – 1.34%
                
DigitalGlobe, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 01/15/2024 (b)
    
456,550
      
456,931
  
MacDonald Dettwiler & Associates, Ltd.
               
  4.049% (3 Month USD LIBOR + 2.75%),
               
  10/05/2024 (b)(j)
    
1,400,000
      
1,403,325
  
Telesat Canada / Telesat, LLC
               
  4.24% (1 Month USD LIBOR + 3.00%),
               
  11/17/2023 (b)
    
1,595,357
      
1,610,649
  
Xplornet Communications, Inc.
               
  6.083% (3 Month USD LIBOR + 4.75%),
               
  09/09/2021 (b)
    
782,525
      
792,310
  
             
4,263,215
  
                 
Telecommunications – Wireline/Wireless – 4.91%
                
Altice Financing S.A. 4.054% (3 Month
               
  USD LIBOR + 2.75%), 07/15/2025 (b)
    
798,000
      
800,163
  
CenturyLink, Inc. 2.75%, (1 Month
               
  USD LIBOR + 2.75%), 01/31/2025 (b)
    
3,250,000
      
3,154,531
  
Communications Sales & Leasing, Inc.
               
  4.235% (1 Month USD LIBOR + 3.00%),
               
  10/24/2022 (b)
    
714,600
      
662,073
  
Consolidated Communications, Inc.
               
  4.24% (1 Month USD LIBOR + 3.00%),
               
  10/05/2023 (b)
    
1,256,336
      
1,226,668
  
Cyxtera DC Holdings, Inc. 4.31% (3 Month
               
  USD LIBOR + 3.00%), 05/01/2024 (b)
    
882,788
      
887,934
  
Equinix, Inc. 3.333% (3 Month
               
  USD LIBOR + 2.00%), 01/09/2023 (b)
    
494,975
      
496,059
  
Level 3 Financing, Inc. 3.486% (1 Month
               
  USD LIBOR + 2.25%), 02/22/2024 (b)
    
760,000
      
760,536
  
                 
The accompanying notes are an integral part of these financial statements.

39
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Telecommunications – Wireline/Wireless – 4.91% – Continued
            
Lightower Fiber Networks 4.485% (1 Month
           
  USD LIBOR + 3.25%), 04/13/2020 (b)
  
$
1,547,276
    
$
1,552,436
  
Masergy Holdings, Inc. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 12/15/2023 (b)
    
496,250
      
499,972
  
Peak 10 Holding Corp. 4.811% (3 Month
               
  USD LIBOR + 3.50%), 08/01/2024 (b)
    
955,000
      
957,187
  
SBA Senior Finance II, LLC 3.49% (1 Month
               
  USD LIBOR + 2.25%), 06/10/2022 (b)
    
709,556
      
712,085
  
SFR Group S.A. 4.061% (3 Month
               
  USD LIBOR + 2.75%), 07/18/2025 (b)
    
767,625
      
766,090
  
Sprint Communications, Inc.
               
  3.75% (1 Month USD LIBOR + 2.50%),
               
  02/02/2024 (b)
    
1,427,825
      
1,430,652
  
Switch, Ltd. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 06/27/2024 (b)
    
1,117,200
      
1,126,283
  
TierPoint, LLC 4.985% (1 Month
               
  USD LIBOR + 3.75%), 05/06/2024 (b)
    
528,675
      
531,757
  
             
15,564,426
  
                 
Transportation Excluding Air & Rail – 0.38%
                
AI Mistral Luxembourg Subco S.a.r.l.
               
  4.235% (1 Month USD LIBOR + 3.00%),
               
  03/11/2024 (b)
    
427,850
      
419,563
  
XPO Logistics, Inc. 3.554% (3 Month
               
  USD LIBOR + 2.25%), 11/01/2021 (b)
    
775,000
      
777,642
  
             
1,197,205
  
                 
Utilities – Electric – 2.24%
                
AES Corp. 3.317% (3 Month
               
  USD LIBOR + 2.00%), 05/19/2022 (b)
    
691,525
      
692,967
  
Calpine Corp. 4.09% (3 Month
               
  USD LIBOR + 2.75%), 01/15/2024 (b)
    
1,158,152
      
1,157,132
  
Dynegy, Inc. 4.485% (1 Month
               
  USD LIBOR + 3.25%), 02/07/2024 (b)
    
998,329
      
1,003,990
  
Eastern Power, LLC 4.985% (1 Month
               
  USD LIBOR + 3.75%), 10/02/2023 (b)
    
1,093,461
      
1,100,683
  

The accompanying notes are an integral part of these financial statements.

40
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 85.72% – Continued
            
             
Utilities – Electric – 2.24% – Continued
            
Helix Gen Funding, LLC 5.083% (3 Month
           
  USD LIBOR + 3.75%), 06/03/2024 (b)
  
$
680,424
    
$
688,732
  
Lightstone Holdco, LLC
                
  5.735% (1 Month USD LIBOR + 4.50%),
               
    01/30/2024 (b)
    
953,828
      
951,644
  
  5.735% (1 Month USD LIBOR + 4.50%),
               
    01/30/2024 (b)
    
59,508
      
59,371
  
Texas Competitive Electric Holdings
                
  3.985% (1 Month USD LIBOR + 2.75%),
               
    08/04/2023 (b)
    
873,824
      
876,651
  
  3.982% (1 Month USD LIBOR + 2.75%),
               
    08/04/2023 (b)
    
200,799
      
201,449
  
Vistra Operations Co., LLC 3.984% (1 Month
               
  USD LIBOR + 2.75%), 12/14/2023 (b)
    
370,691
      
372,389
  
             
7,105,008
  
                 
Utilities – Gas – 0.30%
                
BCP Renaissance 5.316% (3 Month
               
  USD LIBOR + 4.00%), 10/31/2024 (b)(j)
    
355,000
      
359,271
  
Southcross Holdings Borrower L.P.
               
  9.00%, 04/13/2023
    
60,136
      
53,070
  
Traverse Midstream Partners, LLC
               
  5.316% (3 Month USD LIBOR + 4.00%),
               
  09/27/2024 (b)(j)
    
545,000
      
552,493
  
             
964,834
  
TOTAL BANK LOANS
               
  (Cost $273,786,918)
            
271,875,121
  
                 
CORPORATE BONDS – 11.31% (l)
                
                 
Aerospace & Defense – 0.30%
                
Triumph Group, Inc. 4.875%, 04/01/2021
    
950,000
      
940,975
  
                 
Automotive – 0.12%
                
ZF North America Capital, Inc.
               
  4.75%, 04/29/2025 (d)(i)
    
350,000
      
370,563
  
                 
Consumer Products – 0.24%
                
Griffon Corp. 5.25%, 03/01/2022 (d)(j)
    
760,000
      
775,199
  

The accompanying notes are an integral part of these financial statements.

41
SHENKMAN FLOATING RATE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 11.31% (l) – Continued
            
             
Environmental – 0.26%
            
Covanta Holding Corp.
           
  6.375%, 10/01/2022
  
$
800,000
    
$
824,000
  
                 
Finance – Banking – 0.42%
                
Ally Financial, Inc. 4.75%, 09/10/2018
    
1,300,000
      
1,331,980
  
                 
Finance – Services – 1.58%
                
Nationstar Mortgage, LLC / Nationstar
               
  Capital Corp. 7.875%, 10/01/2020
    
1,075,000
      
1,099,859
  
OneMain Financial Holdings, LLC
               
  6.75%, 12/15/2019 (d)(i)
    
700,000
      
728,000
  
Park Aerospace Holdings, Ltd.
               
  3.625%, 03/15/2021 (c)(d)(i)
    
1,000,000
      
1,005,000
  
Starwood Property Trust, Inc.
               
  5.00%, 12/15/2021
    
1,000,000
      
1,046,250
  
VFH Parent, LLC / Orchestra Co-Issuer, Inc.
               
  6.75%, 06/15/2022 (d)(i)
    
1,070,000
      
1,116,812
  
             
4,995,921
  
                 
Food & Drug Retailers – 0.08%
                
Albertsons Cos LLC / Safeway Inc /
               
  New Albertson’s Inc / Albertson’s LLC
               
  5.75%, 03/15/2025
    
310,000
      
274,350
  
                 
General Industrial Manufacturing – 0.25%
                
CNH Industrial Capital, LLC
               
  3.875%, 07/16/2018
    
800,000
      
811,000
  
                 
Healthcare – 1.42%
                
MPH Acquisition Holdings, LLC
               
  7.125%, 06/01/2024 (d)(i)
    
725,000
      
781,188
  
MPT Operating Partnership L.P. /
               
  MPT Finance Corp. 6.375%, 02/15/2022
    
900,000
      
929,430
  
Tenet Healthcare Corp.
               
  4.625%, 07/15/2024 (d)(i)
    
1,346,000
      
1,337,197
  
Valeant Pharmaceuticals International, Inc.
                
  7.00%, 10/01/2020 (c)(d)(i)
    
435,000
      
438,806
  
  6.375%, 10/15/2020 (d)(i)
    
145,000
      
145,725
  

The accompanying notes are an integral part of these financial statements.

42
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 11.31% (l) – Continued
            
             
Healthcare – 1.42% – Continued
            
West Street Merger Sub, Inc.
           
  6.375%, 09/01/2025 (d)(i)
  
$
870,000
    
$
870,000
  
             
4,502,346
  
                 
Media – Broadcast – 0.19%
                
Tribune Media Co. 5.875%, 07/15/2022
    
580,000
      
606,100
  
                 
Media – Cable – 1.65%
                
Block Communications, Inc.
               
  6.875%, 02/15/2025 (d)(i)
    
1,125,000
      
1,226,588
  
Cablevision Systems Corp.
               
  8.00%, 04/15/2020
    
650,000
      
722,313
  
CCO Holdings, LLC / CCO Holdings
               
  Capital Corp. 5.25%, 09/30/2022
    
575,000
      
593,688
  
Cequel Communications Holdings I, LLC /
               
  Cequel Capital Corp.
               
  6.375%, 09/15/2020 (d)(i)
    
452,000
      
462,735
  
DISH DBS Corp.
                
  4.25%, 04/01/2018
    
1,500,000
      
1,514,999
  
  7.875%, 09/01/2019
    
650,000
      
711,750
  
             
5,232,073
  
                 
Media Diversified & Services – 0.14%
                
Clear Channel Worldwide Holdings, Inc.
               
  7.625%, 03/15/2020
    
450,000
      
446,063
  
                 
Metals & Mining Excluding Steel – 0.34%
                
Grinding Media, Inc. / MC Grinding Media
               
  Canada, Inc. 7.375%, 12/15/2023 (d)(i)
    
1,000,000
      
1,087,500
  
                 
Non-Food & Drug Retailers – 0.50%
                
PetSmart, Inc.
                
  7.125%, 03/15/2023 (d)(i)
    
1,180,000
      
923,114
  
  5.875%, 06/01/2025 (d)(i)
    
750,000
      
658,125
  
             
1,581,239
  

The accompanying notes are an integral part of these financial statements.

43
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

 
  
Principal
     Fair  
 
  
Amount
     Value  
             
CORPORATE BONDS – 11.31% (l) – Continued
            
             
Packaging – 0.97%
            
Ardagh Packaging Finance PLC /
           
  Ardagh Holdings USA, Inc.
           
  4.25%, 09/15/2022 (c)(d)(i)
  
$
660,000
    
$
680,130
  
Flex Acquisition Co, Inc.
               
  6.875%, 01/15/2025 (d)(i)
    
1,000,000
      
1,040,000
  
Multi-Color Corp. 4.875%, 11/01/2025 (d)(j)
    
695,000
      
704,348
  
Reynolds Group Issuer, Inc. / Reynolds Group
               
  Issuer, LLC / Reynolds Group Issuer Lu
               
  6.875%, 02/15/2021 (h)
    
648,135
      
665,149
  
             
3,089,627
  
                 
Restaurants – 0.18%
                
1011778 B.C. Unlimited Liability Co. /
               
  New Red Finance, Inc.
               
  6.00%, 04/01/2022 (c)(d)(i)
    
552,000
      
569,733
  
Support – Services – 0.82%
                
Alliance Data Systems Corp.
               
  5.875%, 11/01/2021 (d)(i)
    
1,350,000
      
1,407,375
  
Hertz Corp. 6.75%, 04/15/2019
    
313,000
      
312,413
  
United Rentals North America, Inc.
               
  7.625%, 04/15/2022
    
100,000
      
104,205
  
WEX, Inc. 4.75%, 02/01/2023 (d)(i)
    
745,000
      
767,350
  
             
2,591,343
  
                 
Technology – 0.54%
                
Dell International, LLC / EMC Corp.
               
  4.42%, 06/15/2021 (d)(i)
    
750,000
      
788,094
  
NCR Corp. 4.625%, 02/15/2021
    
900,000
      
918,000
  
             
1,706,094
  
                 
Telecommunications – Satellites – 0.47%
                
Hughes Satellite Systems Corp.
               
  7.625%, 06/15/2021
    
1,300,000
      
1,481,051
  
                 
The accompanying notes are an integral part of these financial statements.

44
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017
 
   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 11.31% (l) – Continued
            
             
Telecommunications – Wireline/Wireless – 0.61%
            
Sprint Communications, Inc.
            
  9.00%, 11/15/2018 (d)(i)
  
$
650,000
    
$
699,023
  
  7.00%, 08/15/2020
    
650,000
      
711,828
  
Wind Acquisition Finance S.A.
               
  6.50%, 04/30/2020 (c)(d)(i)
    
500,000
      
518,185
  
             
1,929,036
  
                 
Utilities – Gas – 0.23%
                
Genesis Energy L.P. / Genesis Energy
               
  Finance Corp. 5.75%, 02/15/2021
    
725,000
      
731,344
  
TOTAL CORPORATE BONDS
               
  (Cost $35,525,588)
            
35,877,537
  
               
   
Shares
          
                 
PRIVATE PLACEMENTS – 0.18%
                
                 
Finance – Services – 0.17%
                
RCS Capital Corp. (a)(g)
    
17,405
      
530,853
  
                 
Utilities – Gas – 0.01%
                
Southcross Energy Partners, L.P. (a)(g)
    
63
      
42,525
  
Southcross Energy Partners, L.P. (a)(g)
    
63
      
—
  
             
42,525
  
TOTAL PRIVATE PLACEMENTS
               
  (Cost $132,799)
            
573,378
  
                 
COMMON STOCKS – 0.07%
                
                 
Forestry & Paper – 0.07%
                
Verso Corp. (a)
    
40,879
      
208,074
  
TOTAL COMMON STOCKS
               
  (Cost $1,854,881)
            
208,074
  
                 
The accompanying notes are an integral part of these financial statements.

45
SHENKMAN FLOATING RATE HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

         
Fair
  
   
Shares
    
Value
  
             
SHORT-TERM INVESTMENTS – 8.14%
            
             
Money Market Fund – 8.14%
            
Fidelity Government Portfolio –
           
  Institutional Class, 0.91% (e)
    
25,821,991
    
$
25,821,991
  
TOTAL SHORT-TERM INVESTMENTS
               
  (Cost $25,821,991)
            
25,821,991
  
Total Investments (Cost $337,122,177) – 105.42%
            
334,356,101
  
Liabilities in Excess of Other Assets – (5.42%)
            
(17,180,291
)
TOTAL NET ASSETS – 100.00%
          
$
317,175,810
  

Percentages are stated as a percent of net assets.
PLC Public Limited Company
(a)
Non-Income producing security.
(b)
Variable rate securities, the coupon rate shown is the effective interest rate as of September 30, 2017.
(c)
U.S. traded security of a foreign issuer.
(d)
Rule 144a Security.
(e)
Rate shown is the 7-day yield as of September 30, 2017.
(f)
Security is in default.
(g)
Security valued at fair value using methods determined in good faith by or at the direction of the Board of Trustees of Advisor Series Trust.  Value determined using significant unobservable inputs.
(h)
Represents a step bond.  The rate shown represents the rate as of September 30, 2017.
(i)
The Fund’s Advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees.  As of September 30, 2017 the value of these investments was $17,621,243 or 5.56% of net assets.
(j)
Illiquid security, a security may be considered illiquid if it lacks a readily available market.  As of September 30, 2017 the value of these investments was $24,822,454 or 7.83% of net assets.
(k)
Variable rate security.  Final terms of the bank loan are not yet known, so reference index and spread information may not be presented.
(l)
All or a portion is posted as collateral for delayed settlement securities.
(m)
All or portion of the loan is unfunded.

The accompanying notes are an integral part of these financial statements.

46
SHENKMAN SHORT DURATION HIGH INCOME FUND

PORTFOLIO ALLOCATION
September 30, 2017
 

 
 
TOP TEN HOLDINGS
  
% Net Assets 
HCA, Inc. 6.50%, 02/15/2020
    
1.41
%
Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc.
       
  6.00%, 06/30/2021
    
1.16
%
DISH DBS Corp. 6.75%, 06/01/2021
    
1.07
%
Reynolds Group Issuer, Inc. / Reynolds Group Issuer, LLC /
       
  Reynolds Group Issuer Lu, 5.75%, 10/15/2020
    
1.04
%
Ally Financial, Inc., 8.00%, 03/15/2020
    
1.04
%
Sprint Communications, Inc., 7.00%, 08/15/2020
    
0.98
%
Centene Corp. 5.625%, 02/15/2021
    
0.98
%
Hughes Satellite Systems Corp. 7.625%, 06/15/2021
    
0.96
%
Tenet Healthcare Corp., 6.00%, 10/01/2020
    
0.94
%
Cablevision Systems Corp., 8.00%, 04/15/2020
    
0.93
%

The portfolio’s holdings and allocations are subject to change, and exclude short term investments. The percentages are of total net assets as of September 30, 2017.

47
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j)
            
             
Aerospace & Defense – 1.59%
            
Bombardier, Inc. 7.75%, 03/15/2020 (b)(c)(h)
  
$
1,175,000
    
$
1,255,781
  
KLX, Inc. 5.875%, 12/01/2022 (c)(h)
    
2,375,000
      
2,497,194
  
Orbital ATK, Inc. 5.25%, 10/01/2021
    
3,100,000
      
3,216,250
  
TransDigm, Inc. 5.50%, 10/15/2020
    
500,000
      
508,125
  
Triumph Group, Inc. 4.875%, 04/01/2021
    
1,040,000
      
1,030,120
  
             
8,507,470
  
                 
Automotive – 2.14%
                
American Axle & Manufacturing, Inc.
                
  5.125%, 02/15/2019
    
550,000
      
550,848
  
  7.75%, 11/15/2019
    
2,144,000
      
2,361,080
  
IHO Verwaltungs GmbH 4.125% Cash or
               
  5.00% PIK, 09/15/2021 (b)(c)(h)
    
3,025,000
      
3,085,500
  
Penske Automotive Group, Inc.
               
  5.75%, 10/01/2022
    
3,000,000
      
3,099,675
  
ZF North America Capital, Inc.
               
  4.00%, 04/29/2020 (c)(h)
    
2,275,000
      
2,357,469
  
             
11,454,572
  
                 
Beverage & Food – 1.68%
                
B&G Foods, Inc. 4.625%, 06/01/2021
    
1,425,000
      
1,455,281
  
Darling Ingredients, Inc.
               
  5.375%, 01/15/2022
    
1,400,000
      
1,455,125
  
Dean Foods Co. 6.90%, 10/15/2017
    
100,000
      
100,138
  
DS Services of America, Inc.
               
  10.00%, 09/01/2021 (c)(h)
    
1,747,000
      
1,851,820
  
Post Holdings, Inc. 6.00%, 12/15/2022 (c)(h)
    
2,505,000
      
2,633,381
  
Yum! Brands, Inc. 6.25%, 03/15/2018
    
1,475,000
      
1,504,500
  
             
9,000,245
  
                 
Building & Construction – 2.58%
                
Calantlantic Group, Inc.
               
  8.375%, 05/15/2018
    
4,100,000
      
4,274,250
  
Lennar Corp.
                
  4.75%, 12/15/2017
    
1,100,000
      
1,102,750
  
  6.95%, 06/01/2018
    
2,925,000
      
3,020,063
  
  4.125%, 12/01/2018 (d)
    
950,000
      
967,974
  
M/I Homes, Inc. 6.75%, 01/15/2021
    
1,375,000
      
1,442,031
  

The accompanying notes are an integral part of these financial statements.

48
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Building & Construction – 2.58% – Continued
            
Toll Brothers Finance Corp.
            
  4.00%, 12/31/2018
  
$
750,000
    
$
764,063
  
  6.75%, 11/01/2019
    
350,000
      
381,062
  
TRI Pointe Group, Inc. / TRI Pointe
               
  Homes, Inc. 4.375%, 06/15/2019
    
1,800,000
      
1,847,250
  
             
13,799,443
  
                 
Building Materials – 1.95%
                
American Builders & Contractors
               
  Supply Co, Inc. 5.625%, 04/15/2021 (c)(h)
    
1,995,000
      
2,049,862
  
Masonite International Corp.
               
  5.625%, 03/15/2023 (b)(c)(h)
    
1,765,000
      
1,855,986
  
Ply Gem Industries, Inc. 6.50%, 02/01/2022
    
1,325,000
      
1,386,679
  
Standard Industries, Inc.
               
  5.125%, 02/15/2021 (c)(h)
    
1,600,000
      
1,654,000
  
Summit Materials, LLC / Summit Materials
               
  Finance Corp.
                
  8.50%, 04/15/2022
    
1,935,000
      
2,186,550
  
  6.125%, 07/15/2023
    
1,205,000
      
1,277,300
  
             
10,410,377
  
                 
Chemicals – 2.51%
                
Consolidated Energy Finance S.A.
               
  6.75%, 10/15/2019 (b)(c)(h)
    
336,000
      
342,300
  
Huntsman International, LLC
               
  4.875%, 11/15/2020
    
2,000,000
      
2,127,500
  
Platform Specialty Products Corp.
               
  10.375%, 05/01/2021 (c)(h)
    
3,640,000
      
3,976,700
  
PQ Corp. 6.75%, 11/15/2022 (c)(h)
    
2,650,000
      
2,881,875
  
Tronox Finance, LLC 7.50%, 03/15/2022 (c)(h)
    
1,750,000
      
1,852,813
  
Univar USA, Inc. 6.75%, 07/15/2023 (c)(h)
    
2,152,000
      
2,264,980
  
             
13,446,168
  
                 
Consumer Products – 0.74%
                
Griffon Corp. 5.25%, 03/01/2022 (c)(i)
    
1,050,000
      
1,071,000
  
Prestige Brands, Inc.
               
  5.375%, 12/15/2021 (c)(h)
    
2,775,000
      
2,868,656
  
             
3,939,656
  

The accompanying notes are an integral part of these financial statements.

49
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Environmental – 1.68%
            
Clean Harbors, Inc.
            
  5.25%, 08/01/2020
  
$
1,882,000
    
$
1,910,230
  
  5.125%, 06/01/2021
    
1,400,000
      
1,425,802
  
Covanta Holding Corp. 6.375%, 10/01/2022
    
985,000
      
1,014,550
  
GFL Environmental, Inc.
                
  9.875%, 02/01/2021 (b)(c)(h)
    
2,900,000
      
3,111,352
  
  5.625%, 05/01/2022 (b)(c)(h)
    
1,450,000
      
1,515,250
  
             
8,977,184
  
                 
Finance – Banking – 2.96%
                
Ally Financial, Inc.
                
  6.25%, 12/01/2017
    
225,000
      
226,575
  
  4.75%, 09/10/2018
    
1,325,000
      
1,357,595
  
  3.50%, 01/27/2019
    
500,000
      
508,750
  
  3.75%, 11/18/2019
    
250,000
      
256,125
  
  8.00%, 03/15/2020
    
4,925,000
      
5,556,089
  
CIT Group, Inc.
                
  5.50%, 02/15/2019 (c)(h)
    
1,119,000
      
1,172,152
  
  5.375%, 05/15/2020
    
1,400,000
      
1,506,750
  
DAE Funding, LLC 4.00%, 08/01/2020 (c)(h)
    
3,000,000
      
3,067,500
  
Lincoln Finance, Ltd.
               
  7.375%, 04/15/2021 (b)(c)(h)
    
2,050,000
      
2,165,313
  
             
15,816,849
  
                 
Finance – Insurance – 0.21%
                
HUB International, Ltd.
               
  7.875%, 10/01/2021 (c)(h)
    
1,100,000
      
1,146,750
  
                 
Finance – Services – 4.72%
                
Aircastle, Ltd.
                
  4.625%, 12/15/2018 (b)
    
800,000
      
823,000
  
  6.25%, 12/01/2019 (b)
    
3,700,000
      
4,000,625
  
  7.625%, 04/15/2020 (b)
    
675,000
      
754,313
  
  5.125%, 03/15/2021 (b)
    
400,000
      
427,500
  
International Lease Finance Corp.
                
  7.125%, 09/01/2018 (c)(h)
    
225,000
      
235,638
  
  6.25%, 05/15/2019
    
675,000
      
717,725
  

The accompanying notes are an integral part of these financial statements.

50
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Finance – Services – 4.72% – Continued
            
Nationstar Mortgage, LLC /
           
  Nationstar Capital Corp.
            
  6.50%, 08/01/2018
  
$
1,625,000
    
$
1,631,094
  
  7.875%, 10/01/2020
    
1,725,000
      
1,764,891
  
Navient Corp.
                
  8.45%, 06/15/2018
    
1,000,000
      
1,044,500
  
  5.50%, 01/15/2019
    
600,000
      
621,528
  
  8.00%, 03/25/2020
    
875,000
      
966,875
  
  6.50%, 06/15/2022
    
1,175,000
      
1,247,697
  
OneMain Financial Holdings, LLC
                
  6.75%, 12/15/2019 (c)(h)
    
3,250,000
      
3,380,000
  
  7.25%, 12/15/2021 (c)(h)
    
1,200,000
      
1,255,500
  
Springleaf Finance Corp.
                
  6.90%, 12/15/2017
    
900,000
      
907,875
  
  6.125%, 05/15/2022
    
475,000
      
504,236
  
Starwood Property Trust, Inc.
               
  5.00%, 12/15/2021
    
4,140,000
      
4,331,475
  
VFH Parent, LLC / Orchestra Co-Issuer, Inc.
               
  6.75%, 06/15/2022 (c)(h)
    
600,000
      
626,250
  
             
25,240,722
  
                 
Food & Drug Retailers – 0.89%
                
Rite Aid Corp.
                
  9.25%, 03/15/2020
    
1,850,000
      
1,910,125
  
  6.75%, 06/15/2021
    
2,750,000
      
2,859,175
  
             
4,769,300
  
                 
Forestry & Paper – 0.24%
                
Cascades, Inc. 5.50%, 07/15/2022 (b)(c)(h)
    
1,235,000
      
1,287,487
  
                 
Gaming – 2.44%
                
Boyd Gaming Corp. 6.875%, 05/15/2023
    
1,200,000
      
1,287,756
  
Churchill Downs, Inc. 5.375%, 12/15/2021
    
3,480,000
      
3,606,150
  
GLP Capital L.P. / GLP Financing II, Inc.
               
  4.375%, 11/01/2018
    
1,400,000
      
1,429,750
  
International Game Technology PLC
               
  5.625%, 02/15/2020 (b)(c)(h)
    
428,000
      
454,215
  

The accompanying notes are an integral part of these financial statements.

51
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Gaming – 2.44% – Continued
            
MGM Resorts International
            
  8.625%, 02/01/2019
  
$
3,750,000
    
$
4,059,375
  
  6.75%, 10/01/2020
    
1,780,000
      
1,966,900
  
Station Casinos, LLC 7.50%, 03/01/2021
    
250,000
      
260,000
  
             
13,064,146
  
                 
General Industrial Manufacturing – 1.74%
                
Anixter, Inc. 5.625%, 05/01/2019
    
2,500,000
      
2,634,375
  
CNH Industrial Capital, LLC
               
  3.875%, 07/16/2018
    
750,000
      
760,312
  
EnPro Industries, Inc. 5.875%, 09/15/2022
    
2,185,000
      
2,291,519
  
Oshkosh Corp. 5.375%, 03/01/2022
    
1,750,000
      
1,822,188
  
WESCO Distribution, Inc.
               
  5.375%, 12/15/2021
    
1,725,000
      
1,787,531
  
             
9,295,925
  
                 
Healthcare – 10.32%
                
Acadia Healthcare Co., Inc.
               
  6.125%, 03/15/2021
    
1,325,000
      
1,370,977
  
Alere, Inc.
                
  7.25%, 07/01/2018
    
1,780,000
      
1,784,895
  
  6.50%, 06/15/2020
    
500,000
      
510,000
  
Centene Corp. 5.625%, 02/15/2021
    
5,035,000
      
5,249,994
  
DaVita HealthCare Partners, Inc.
               
  5.75%, 08/15/2022
    
4,120,000
      
4,225,575
  
Eagle Holding Co. II, LLC 7.625% Cash or
               
  8.375% PIK, 05/15/2022 (a)(c)(h)
    
1,550,000
      
1,612,000
  
Fresenius Medical Care US Finance II, Inc.
                
  6.50%, 09/15/2018 (c)(h)
    
2,325,000
      
2,424,334
  
  5.625%, 07/31/2019 (c)(h)
    
850,000
      
902,201
  
HCA, Inc.
                
  4.25%, 10/15/2019
    
2,000,000
      
2,075,000
  
  6.50%, 02/15/2020
    
6,900,000
      
7,529,625
  
  6.25%, 02/15/2021
    
500,000
      
542,500
  
  5.875%, 03/15/2022
    
1,000,000
      
1,110,000
  
Hologic, Inc. 5.25%, 07/15/2022 (c)(h)
    
825,000
      
869,344
  

The accompanying notes are an integral part of these financial statements.

52
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Healthcare – 10.32% – Continued
            
Mallinckrodt International Finance S.A.
            
  3.50%, 04/15/2018 (b)
  
$
1,025,000
    
$
1,028,844
  
  4.875%, 04/15/2020 (b)(c)(h)
    
3,900,000
      
3,900,000
  
Molina Healthcare, Inc.
               
  5.375%, 11/15/2022 (d)
    
1,225,000
      
1,268,610
  
MPT Operating Partnership L.P. / MPT
               
  Finance Corp. 6.375%, 02/15/2022
    
1,550,000
      
1,600,685
  
Sabra Health Care L.P. / Sabra
               
  Capital Corp. 5.50%, 02/01/2021
    
1,500,000
      
1,543,298
  
Service Corp. International
               
  7.625%, 10/01/2018
    
1,065,000
      
1,128,900
  
Sterigenics-Nordion Topco, LLC 8.125%
               
  Cash or 9.00% PIK, 11/01/2021 (c)(h)
    
1,025,000
      
1,048,063
  
Tenet Healthcare Corp.
                
  6.00%, 10/01/2020
    
4,725,000
      
5,047,292
  
  7.50%, 01/01/2022 (c)(h)
    
1,300,000
      
1,379,625
  
  8.125%, 04/01/2022
    
1,190,000
      
1,213,800
  
Universal Health Services, Inc.
               
  3.75%, 08/01/2019 (c)(h)
    
2,500,000
      
2,565,625
  
Universal Hospital Services, Inc.
               
  7.625%, 08/15/2020
    
1,240,000
      
1,261,700
  
Valeant Pharmaceuticals International, Inc.
               
  7.00%, 10/01/2020 (b)(c)(h)
    
2,000,000
      
2,017,500
  
             
55,210,387
  
                 
Hotels – 0.40%
                
RHP Hotel Properties L.P. / RHP Finance
               
  Corp. 5.00%, 04/15/2021
    
2,100,000
      
2,157,750
  
                 
Leisure & Entertainment – 0.41%
                
NCL Corp., Ltd. 4.75%, 12/15/2021 (b)(c)(h)
    
875,000
      
910,000
  
Regal Entertainment Group
               
  5.75%, 03/15/2022
    
1,250,000
      
1,293,750
  
             
2,203,750
  

The accompanying notes are an integral part of these financial statements.

53
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Media – Broadcast – 3.39%
            
Nexstar Broadcasting, Inc.
           
  6.125%, 02/15/2022 (c)(h)
  
$
2,350,000
    
$
2,461,625
  
Sinclair Television Group, Inc.
                
  5.375%, 04/01/2021
    
1,925,000
      
1,977,937
  
  6.125%, 10/01/2022
    
750,000
      
775,313
  
TEGNA, Inc.
                
  5.125%, 10/15/2019
    
1,650,000
      
1,676,812
  
  5.125%, 07/15/2020
    
4,530,000
      
4,654,575
  
Tribune Media Co. 5.875%, 07/15/2022
    
2,400,000
      
2,508,000
  
Univision Communications, Inc.
               
  6.75%, 09/15/2022 (c)(h)
    
3,950,000
      
4,107,329
  
             
18,161,591
  
                 
Media – Cable – 8.54%
                
Cable One, Inc. 5.75%, 06/15/2022 (c)(h)
    
1,075,000
      
1,126,062
  
Cablevision Systems Corp.
                
  7.75%, 04/15/2018
    
2,775,000
      
2,854,781
  
  8.00%, 04/15/2020
    
4,485,000
      
4,983,956
  
CCO Holdings, LLC / CCO Holdings
               
  Capital Corp. 5.25%, 09/30/2022
    
4,700,000
      
4,852,750
  
Cequel Communications Holdings I, LLC /
               
  Cequel Capital Corp.
                
  6.375%, 09/15/2020 (c)(h)
    
3,181,000
      
3,256,549
  
  5.125%, 12/15/2021 (c)(h)
    
2,490,000
      
2,546,025
  
CSC Holdings, LLC
                
  7.625%, 07/15/2018
    
800,000
      
832,400
  
  6.75%, 11/15/2021
    
500,000
      
553,750
  
  10.125%, 01/15/2023 (c)(h)
    
1,750,000
      
2,023,437
  
DISH DBS Corp.
                
  4.25%, 04/01/2018
    
950,000
      
959,500
  
  7.875%, 09/01/2019
    
3,550,000
      
3,887,250
  
  5.125%, 05/01/2020
    
425,000
      
446,654
  
  6.75%, 06/01/2021
    
5,200,000
      
5,733,000
  
GCI, Inc. 6.75%, 06/01/2021
    
2,350,000
      
2,411,688
  
Mediacom Broadband, LLC / Mediacom
               
  Broadband Corp. 5.50%, 04/15/2021
    
2,547,000
      
2,607,491
  
                 
The accompanying notes are an integral part of these financial statements.

54
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Media – Cable – 8.54% – Continued
            
Midcontinent Communications /
           
  Midcontinent Finance Corp.
           
  6.875%, 08/15/2023 (c)(h)
  
$
1,895,000
    
$
2,051,338
  
Netflix, Inc. 5.375%, 02/01/2021
    
1,500,000
      
1,616,250
  
WaveDivision Escrow, LLC / WaveDivision
               
  Escrow Corp. 8.125%, 09/01/2020 (c)(h)
    
2,911,000
      
2,991,053
  
             
45,733,934
  
                 
Media Diversified & Services – 1.80%
                
Clear Channel Worldwide Holdings, Inc.
               
  7.625%, 03/15/2020
    
800,000
      
793,000
  
Lamar Media Corp. 5.875%, 02/01/2022
    
1,250,000
      
1,290,625
  
Match Group, Inc. 6.75%, 12/15/2022
    
2,200,000
      
2,279,750
  
Nielsen Finance, LLC / Nielsen Finance Co.
                
  4.50%, 10/01/2020
    
600,000
      
608,250
  
  5.50%, 10/01/2021 (b)(c)(h)
    
4,550,000
      
4,686,500
  
             
9,658,125
  
                 
Metals & Mining Excluding Steel – 2.50%
                
Anglo American Capital PLC
               
  9.375%, 04/08/2019 (b)(c)(h)
    
1,775,000
      
1,966,292
  
Constellium N.V.
               
  7.875%, 04/01/2021 (b)(c)(h)
    
2,325,000
      
2,473,219
  
FMG Resources Pty, Ltd.
                
  9.75%, 03/01/2022 (b)(c)(h)
    
3,025,000
      
3,409,175
  
  4.75%, 05/15/2022 (b)(c)(h)
    
1,550,000
      
1,575,187
  
Freeport-McMoRan, Inc.
                
  2.375%, 03/15/2018
    
1,200,000
      
1,203,000
  
  6.50%, 11/15/2020
    
1,150,000
      
1,177,887
  
  6.75%, 02/01/2022
    
1,525,000
      
1,597,438
  
             
13,402,198
  
                 
Non-Food & Drug Retailers – 2.16%
                
Dollar Tree, Inc.
                
  5.25%, 03/01/2020
    
800,000
      
823,200
  
  5.75%, 03/01/2023
    
2,400,000
      
2,544,000
  
L Brands, Inc. 8.50%, 06/15/2019
    
1,000,000
      
1,103,750
  

The accompanying notes are an integral part of these financial statements.

55
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Non-Food & Drug Retailers – 2.16% – Continued
            
Michaels Stores, Inc.
           
  5.875%, 12/15/2020 (c)(h)
  
$
3,665,000
    
$
3,752,044
  
QVC, Inc. 3.125%, 04/01/2019
    
2,085,000
      
2,107,011
  
William Carter Co. 5.25%, 08/15/2021
    
1,175,000
      
1,211,719
  
             
11,541,724
  
                 
Oil & Gas – 0.83%
                
Range Resources Corp.
               
  5.75%, 06/01/2021 (c)(h)
    
1,650,000
      
1,724,250
  
Rowan Cos., Inc. 7.875%, 08/01/2019
    
590,000
      
643,100
  
Whiting Petroleum Corp.
               
  5.00%, 03/15/2019
    
2,050,000
      
2,060,865
  
             
4,428,215
  
                 
Packaging – 4.41%
                
Ardagh Packaging Finance PLC /
               
  Ardagh Holdings USA, Inc.
               
  6.00%, 06/30/2021 (b)(c)(h)
    
6,040,000
      
6,228,750
  
Ball Corp. 4.375%, 12/15/2020
    
350,000
      
368,812
  
Berry Global, Inc. 6.00%, 10/15/2022
    
472,000
      
502,680
  
Greif, Inc. 7.75%, 08/01/2019
    
1,825,000
      
1,998,375
  
Owens-Brockway Glass Container, Inc.
               
  5.00%, 01/15/2022 (c)(h)
    
1,240,000
      
1,317,500
  
Reynolds Group Issuer, Inc. / Reynolds Group
               
  Issuer, LLC / Reynolds Group Issuer Lu
                
  5.75%, 10/15/2020
    
5,475,000
      
5,577,930
  
  6.875%, 02/15/2021 (d)
    
1,231,457
      
1,263,783
  
  4.804% (3 Month USD LIBOR + 3.50%),
               
    07/15/2021 (a)(c)(h)
    
650,000
      
664,625
  
Signode Industrial Group Lux S.A.
               
  6.375%, 05/01/2022 (c)(h)
    
2,750,000
      
2,866,875
  
Silgan Holdings, Inc.
                
  5.00%, 04/01/2020
    
462,000
      
469,508
  
  5.50%, 02/01/2022
    
2,250,000
      
2,317,500
  
             
23,576,338
  
                 
The accompanying notes are an integral part of these financial statements.

56
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Real Estate Development & Management – 0.32%
            
Realogy Group, LLC /
           
  Realogy Co-Issuer Corp.
            
  4.50%, 04/15/2019 (c)(h)
  
$
1,300,000
    
$
1,339,000
  
  5.25%, 12/01/2021 (c)(h)
    
380,000
      
396,150
  
             
1,735,150
  
Reits – 0.19%
                
VEREIT Operating Partnership L.P.
               
  3.00%, 02/06/2019
    
1,000,000
      
1,009,276
  
                 
Restaurants – 0.30%
                
1011778 B.C. Unlimited Liability Co. /
               
  New Red Finance, Inc.
               
  6.00%, 04/01/2022 (b)(c)(h)
    
294,000
      
303,445
  
Brinker International, Inc.
               
  2.60%, 05/15/2018
    
1,300,000
      
1,300,000
  
             
1,603,445
  
Steel Producers & Products – 0.80%
                
BlueScope Steel Finance, Ltd. /
               
  BlueScope Steel Finance USA, LLC
               
  6.50%, 05/15/2021 (b)(c)(h)
    
2,025,000
      
2,125,845
  
Steel Dynamics, Inc.
                
  5.125%, 10/01/2021
    
255,000
      
262,969
  
  6.375%, 08/15/2022
    
1,850,000
      
1,910,772
  
             
4,299,586
  
Support – Services – 2.67%
                
AECOM 5.75%, 10/15/2022
    
1,125,000
      
1,183,218
  
Alliance Data Systems Corp.
                
  5.25%, 12/01/2017 (c)(h)
    
1,343,000
      
1,352,737
  
  6.375%, 04/01/2020 (c)(h)
    
2,350,000
      
2,388,187
  
  5.875%, 11/01/2021 (c)(h)
    
1,250,000
      
1,303,125
  
CoreCivic, Inc. 4.125%, 04/01/2020
    
1,250,000
      
1,287,500
  
FTI Consulting, Inc. 6.00%, 11/15/2022
    
2,275,000
      
2,357,469
  
GEO Group, Inc. 5.875%, 01/15/2022
    
1,825,000
      
1,900,281
  
Hertz Corp. 7.625%, 06/01/2022 (c)(h)
    
1,145,000
      
1,183,644
  
Iron Mountain, Inc. 4.375%, 06/01/2021 (c)(h)
    
900,000
      
933,111
  

The accompanying notes are an integral part of these financial statements.

57
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Support – Services – 2.67% – Continued
            
United Rentals North America, Inc.
           
  7.625%, 04/15/2022
  
$
375,000
    
$
390,769
  
             
14,280,041
  
Technology – 4.09%
                
CDK Global, Inc. 3.30%, 10/15/2019 (d)
    
2,675,000
      
2,758,594
  
CommScope, Inc. 5.00%, 06/15/2021 (c)(h)
    
2,000,000
      
2,057,500
  
Dell International, LLC / EMC Corp.
                
  5.875%, 06/15/2021 (c)(h)
    
2,280,000
      
2,389,258
  
  4.42%, 06/15/2021 (c)(h)
    
500,000
      
525,396
  
EMC Corp. 2.65%, 06/01/2020
    
1,645,000
      
1,629,341
  
First Data Corp. 5.375%, 08/15/2023 (c)(h)
    
1,300,000
      
1,363,050
  
Infor US, Inc. 5.75%, 08/15/2020 (c)(h)
    
1,925,000
      
1,982,750
  
Micron Technology, Inc.
               
  7.50%, 09/15/2023
    
2,240,000
      
2,494,800
  
Microsemi Corp. 9.125%, 04/15/2023 (c)(h)
    
2,005,000
      
2,298,231
  
NCR Corp.
                
  4.625%, 02/15/2021
    
950,000
      
969,000
  
  5.875%, 12/15/2021
    
1,325,000
      
1,374,025
  
Nuance Communications, Inc.
               
  5.375%, 08/15/2020 (c)(h)
    
255,000
      
259,972
  
NXP B.V. / NXP Funding, LLC
                
  3.75%, 06/01/2018 (b)(c)(h)
    
728,000
      
737,100
  
  4.125%, 06/01/2021 (b)(c)(h)
    
1,000,000
      
1,048,750
  
             
21,887,767
  
Telecommunications – Satellites – 1.92%
                
Hughes Satellite Systems Corp.
                
  6.50%, 06/15/2019
    
1,723,000
      
1,839,303
  
  7.625%, 06/15/2021
    
4,500,000
      
5,126,715
  
ViaSat, Inc. 6.875%, 06/15/2020
    
3,275,000
      
3,335,014
  
             
10,301,032
  
Telecommunications – Wireline/Wireless – 7.77%
                
Altice Financing SA 6.50%,
               
  01/15/2022 (b)(c)(h)
    
1,000,000
      
1,042,500
  
Altice Luxembourg SA
               
  7.75%, 05/15/2022 (b)(c)(h)
    
3,400,000
      
3,612,500
  

The accompanying notes are an integral part of these financial statements.

58
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Telecommunications – Wireline/Wireless – 7.77% – Continued
            
CenturyLink, Inc. 5.625%, 04/01/2020
  
$
2,425,000
    
$
2,539,460
  
Equinix, Inc. 5.375%, 04/01/2023
    
2,450,000
      
2,562,210
  
Frontier Communications Corp.
                
  8.125%, 10/01/2018
    
375,000
      
379,687
  
  7.125%, 03/15/2019
    
1,100,000
      
1,091,750
  
Level 3 Communications, Inc.
               
  5.75%, 12/01/2022
    
2,600,000
      
2,678,000
  
Level 3 Financing, Inc. 6.125%, 01/15/2021
    
2,100,000
      
2,152,185
  
SBA Communications Corp.
               
  4.00%, 10/01/2022 (c)(i)
    
1,650,000
      
1,666,500
  
SFR Group S.A. 6.00%, 05/15/2022 (b)(c)(h)
    
1,950,000
      
2,040,187
  
SoftBank Group Corp.
               
  4.50%, 04/15/2020 (b)(c)(h)
    
1,400,000
      
1,447,838
  
Sprint Communications, Inc.
                
  9.00%, 11/15/2018 (c)(h)
    
700,000
      
752,794
  
  6.90%, 05/01/2019
    
2,085,000
      
2,228,344
  
  7.00%, 08/15/2020
    
4,800,000
      
5,256,576
  
Sprint Corp. 7.25%, 09/15/2021
    
1,200,000
      
1,336,500
  
T-Mobile USA, Inc. 6.125%, 01/15/2022
    
3,675,000
      
3,831,188
  
Wind Acquisition Finance S.A.
                
  6.50%, 04/30/2020 (b)(c)(h)
    
2,650,000
      
2,746,381
  
  4.75%, 07/15/2020 (b)(c)(h)
    
850,000
      
861,424
  
  7.375%, 04/23/2021 (b)(c)(h)
    
2,000,000
      
2,081,250
  
Zayo Group LLC / Zayo Capital, Inc.
               
  6.00%, 04/01/2023
    
1,225,000
      
1,300,031
  
             
41,607,305
  
Transportation Excluding Air & Rail – 0.56%
                
XPO Logistics, Inc. 6.50%, 06/15/2022 (c)(h)
    
2,820,000
      
2,971,575
  
                 
Utilities – Electric – 1.21%
                
AES Corp.
                
  8.00%, 06/01/2020
    
451,000
      
519,778
  
  7.375%, 07/01/2021
    
444,000
      
509,534
  
Calpine Corp. 6.00%, 01/15/2022 (c)(h)
    
2,300,000
      
2,389,125
  
                 
The accompanying notes are an integral part of these financial statements.

59
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
CORPORATE BONDS – 87.00% (j) – Continued
            
             
Utilities – Electric – 1.21% – Continued
            
NRG Energy, Inc.
            
  7.625%, 01/15/2018
  
$
288,000
    
$
293,112
  
  7.875%, 05/15/2021
    
1,987,000
      
2,044,623
  
  6.25%, 07/15/2022
    
690,000
      
727,950
  
             
6,484,122
  
Utilities – Gas – 4.34%
                
Andeavor Logistics L.P. / Tesoro
               
  Logistics Finance Corp.
                
  5.50%, 10/15/2019
    
3,425,000
      
3,621,938
  
  5.875%, 10/01/2020
    
291,000
      
296,820
  
  6.125%, 10/15/2021
    
775,000
      
800,187
  
Genesis Energy L.P. / Genesis Energy
               
  Finance Corp. 5.75%, 02/15/2021
    
2,525,000
      
2,547,094
  
NGL Energy Partners L.P. / NGL Energy
               
  Finance Corp. 5.125%, 07/15/2019
    
3,575,000
      
3,583,937
  
NGPL PipeCo, LLC 4.375%, 08/15/2022 (c)(h)
    
2,390,000
      
2,485,600
  
NuStar Logistics, L.P.
                
  7.65%, 04/15/2018 (d)
    
3,850,000
      
3,975,125
  
  4.80%, 09/01/2020
    
300,000
      
312,750
  
Rockies Express Pipeline, LLC
                
  6.85%, 07/15/2018 (c)(h)
    
1,885,000
      
1,955,687
  
  6.00%, 01/15/2019 (c)(h)
    
1,950,000
      
2,028,000
  
Sunoco L.P. / Sunoco Finance Corp.
                
  5.50%, 08/01/2020
    
1,100,000
      
1,134,375
  
  6.25%, 04/15/2021
    
450,000
      
472,658
  
             
23,214,171
  
TOTAL CORPORATE BONDS
               
  (Cost $461,233,934)
            
465,623,776
  
                 
BANK LOANS – 9.56%
                
                 
Aerospace & Defense – 0.34%
                
TransDigm, Inc. 4.256% (1-3 Month
               
  USD LIBOR + 3.00%), 08/22/2024 (a)
    
1,832,884
      
1,838,044
  

The accompanying notes are an integral part of these financial statements.

60
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.56% – Continued
            
             
Beverage & Food – 0.13%
            
Allflex Holdings III, Inc. 4.706% (6 Month
           
  USD LIBOR + 3.25%), 07/17/2020 (a)
  
$
680,506
    
$
685,610
  
                 
Building Materials – 0.24%
                
Quikrete Holdings, Inc. 3.985% (1 Month
               
  USD LIBOR + 2.75%), 11/15/2023 (a)
    
1,293,484
      
1,294,952
  
                 
Chemicals – 0.24%
                
Nexeo Solutions, LLC 5.07% (3 Month
               
  USD LIBOR + 3.75%), 06/09/2023 (a)
    
888,784
      
896,187
  
Orion Engineered Carbons GmbH
               
  3.833% (3 Month USD LIBOR + 2.50%),
               
  07/25/2021 (a)
    
406,086
      
408,522
  
             
1,304,709
  
Consumer Products – 0.67%
                
Alphabet Holding Co., Inc. 4.833% (3 Month
               
  USD LIBOR + 3.50%), 08/15/2024 (a)(i)
    
2,500,000
      
2,474,475
  
KIK Custom Products, Inc. 5.737% (1 Month
               
  USD LIBOR + 4.50%), 08/26/2022 (a)
    
1,080,045
      
1,092,535
  
             
3,567,010
  
Environmental – 0.20%
                
Granite Acquisition, Inc.
                
  5.29% (3 Month USD LIBOR + 4.00%),
               
    12/17/2021 (a)
    
1,050,806
      
1,059,853
  
  5.333% (3 Month USD LIBOR + 4.00%),
               
    12/17/2021 (a)
    
26,107
      
26,332
  
             
1,086,185
  
Finance – Insurance – 1.24%
                
Acrisure, LLC 6.272% (2 Month
               
  USD LIBOR + 5.00%), 11/22/2023 (a)
    
2,587,000
      
2,622,571
  
HUB International, Ltd. 4.312% (3 Month
               
  USD LIBOR + 3.00%), 10/02/2020 (a)
    
1,726,506
      
1,739,921
  
USI, Inc./NY 4.314% (3 Month
               
  USD LIBOR + 3.00%), 05/16/2024 (a)
    
2,300,000
      
2,296,171
  
             
6,658,663
  
                 
The accompanying notes are an integral part of these financial statements.

61
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.56% – Continued
            
             
Finance – Services – 0.45%
            
VFH Parent Bridge / Orchestra Borrower,
           
  LLC / Orchestra Co-Issuer, Inc.
           
  8.67% (3 Month USD LIBOR + 7.50%),
            
  05/31/2024 (a)(f)(i)
  
$
2,380,000
    
$
2,380,000
  
                 
Gaming – 0.77%
                
Amaya B.V. 4.833% (3 Month
               
  USD LIBOR + 3.50%), 08/01/2021 (a)
    
2,276,752
      
2,286,952
  
Station Casinos, LLC 3.74% (1 Month
               
  USD LIBOR + 2.50%), 06/08/2023 (a)
    
1,822,478
      
1,826,305
  
             
4,113,257
  
General Industrial Manufacturing – 0.20%
                
EWT Holdings III Corp. 5.083% (3 Month
               
  USD LIBOR + 3.75%), 01/15/2021 (a)
    
1,031,092
      
1,045,914
  
                 
Healthcare – 0.84%
                
Air Medical Group Holdings, Inc.
                
  5.237% (1 Month USD LIBOR + 4.00%),
               
    04/28/2022 (a)
    
2,743,070
      
2,744,441
  
  4.485% (1 Month USD LIBOR + 3.25%),
               
    04/28/2022 (a)
    
738,665
      
734,418
  
Pharmaceutical Product Development, LLC
               
  4.036% (1-3 Month USD LIBOR + 2.75%),
               
    08/18/2022 (a)
    
987,406
      
993,473
  
             
4,472,332
  
Leisure & Entertainment – 0.35%
                
Delta 2 Lux S.a.r.l 4.235% (1 Month
               
  USD LIBOR + 3.00%), 02/01/2024 (a)
    
1,850,000
      
1,863,644
  
                 
Media – Broadcast – 0.22%
                
Univision Communications, Inc.
               
  3.985% (1 Month USD LIBOR + 2.75%),
               
  03/15/2024 (a)
    
1,193,546
      
1,184,451
  
                 
Media – Cable – 0.50%
                
Atlantic Broadband 3.674% (3 Month
               
  USD LIBOR + 2.375%), 08/11/2024 (a)(i)
    
850,000
      
846,013
  
                 
The accompanying notes are an integral part of these financial statements.

62
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.56% – Continued
            
             
Media – Cable – 0.50% – Continued
            
WideOpenWest Finance, LLC / WideOpenWest
           
  Capital Corp. 4.484% (1 Month
           
  USD LIBOR + 3.25%), 08/19/2023 (a)
  
$
1,817,730
    
$
1,817,448
  
             
2,663,461
  
Media Diversified & Services – 0.21%
                
Ancestry.com Operations, Inc.
               
  4.49% (1 Month USD LIBOR + 3.25%),
               
  10/19/2023 (a)
    
1,108,800
      
1,118,158
  
                 
Packaging – 0.33%
                
Industrial Container Services
                
  5.32% (3 Month USD LIBOR + 4.00%),
               
    04/28/2024 (a)
    
1,185,882
      
1,194,776
  
  5.32% (3 Month USD LIBOR + 4.00%),
               
    04/28/2024 (a) (g)
    
214,118
      
215,724
  
Signode Industrial Group Lux S.A.
               
  4.03% (1-3 Month USD LIBOR + 2.75%),
               
  05/01/2021 (a)
    
348,495
      
350,309
  
             
1,760,809
  
Support – Services – 1.56%
                
Asurion, LLC
                
  3.985% (1 Month USD LIBOR + 2.75%),
               
    08/04/2022 (a)
    
544,937
      
547,185
  
  4.235% (1 Month USD LIBOR + 3.00%),
               
    11/03/2023 (a)
    
193,914
      
195,004
  
Camelot Finance L.P. 4.735% (1 Month
               
  USD LIBOR + 3.50%), 10/03/2023 (a)
    
962,737
      
967,849
  
Coinmach Services 5.014% (2 Month
               
  USD LIBOR + 3.75%), 11/14/2022 (a)
    
1,583,949
      
1,593,057
  
Garda World Security Corp. 5.311%
               
  (Prime – 3 Month USD LIBOR + 4.00%),
               
  05/03/2024 (a)
    
640,742
      
648,084
  
Information Resources, Inc. 5.487% (1 Month
               
  USD LIBOR + 4.25%), 01/18/2024 (a)
    
1,194,000
      
1,207,433
  

The accompanying notes are an integral part of these financial statements.

63
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS – Continued
September 30, 2017

   
Principal
    
Fair
  
   
Amount
    
Value
  
             
BANK LOANS – 9.56% – Continued
            
             
Support – Services – 1.56% – Continued
            
MoneyGram International, Inc.
           
  4.583% (3 Month USD LIBOR + 3.25%),
           
  03/28/2020 (a)
  
$
525,594
    
$
525,431
  
Tempo Acquisition, LLC 4.235% (1 Month
               
  USD LIBOR + 3.00%), 05/01/2024 (a)
    
1,695,750
      
1,698,582
  
Trans Union, LLC 3.235% (1 Month
               
  USD LIBOR + 2.00%), 04/09/2023 (a)
    
987,264
      
986,647
  
             
8,369,272
  
Technology – 0.86%
                
Micro Focus 3.811% (3 Month
               
  USD LIBOR + 2.50%), 11/20/2021 (a)
    
2,600,000
      
2,601,625
  
Misys 4.817% (3 Month
               
  USD LIBOR + 3.50%), 06/16/2024 (a)
    
1,000,000
      
1,005,575
  
Rackspace Hosting, Inc. 4.311% (3 Month
               
  USD LIBOR + 3.00%), 11/03/2023 (a)
    
995,006
      
995,131
  
             
4,602,331
  
Telecommunications – Wireline/Wireless – 0.21%
                
Lightower Fiber Networks 4.485% (1 Month
               
  USD LIBOR + 3.25%), 04/13/2020 (a)
    
143,625
      
144,104
  
SFR Group S.A. 4.561% (3 Month
               
  USD LIBOR + 3.25%), 01/31/2025 (a)
    
992,500
      
996,430
  
             
1,140,534
  
TOTAL BANK LOANS
               
  (Cost $50,767,908)
            
51,149,336
  

 
The accompanying notes are an integral part of these financial statements.

64
SHENKMAN SHORT DURATION HIGH INCOME FUND

SCHEDULE OF INVESTMENTS
September 30, 2017

         
Fair
  
   
Shares
    
Value
  
             
SHORT-TERM INVESTMENTS – 3.16%
            
             
Money Market Fund – 3.16%
            
Fidelity Government Portfolio –
           
  Institutional Class, 0.91% (e)
    
16,927,168
    
$
16,927,168
  
TOTAL SHORT-TERM INVESTMENTS
               
  (Cost $16,927,168)
            
16,927,168
  
Total Investments (Cost $528,929,010) – 99.72%
            
533,700,280
  
Other Assets in Excess of Liabilities – 0.28%
            
1,515,443
  
TOTAL NET ASSETS – 100.00%
          
$
535,215,723
  

Percentages are stated as a percent of net assets.
PLC Public Limited Company
REIT Real Estate Investment Trust
(a)
Variable rate securities, the coupon rate shown is the effective interest rate as of September 30, 2017.
(b)
U.S. traded security of a foreign issuer.
(c)
Rule 144a Security.
(d)
Represents a step bond.  The rate shown represents the rate as of September 30, 2017.
(e)
Rate shown is the 7-day yield as of September 30, 2017.
(f)
Security valued at fair value using methods determined in good faith by or at the direction of the Board of Trustees of Advisor Series Trust.  Value determined using significant unobservable inputs.
(g)
All or portion of the loan is unfunded.
(h)
The Fund’s Advisor has deemed these securities to be liquid based upon procedures approved by the Board of Trustees.  As of September 30, 2017 the value of these investments was $172,104,363 or 32.16% of net assets.
(i)
Illiquid security, a security may be considered illiquid if it lacks a readily available market.  As of September 30, 2017 the value of these investments was $8,437,988 or 1.58% of net assets.
(j)
All or a portion is posted as collateral for delayed settlement securities.

The accompanying notes are an integral part of these financial statements.

65
SHENKMAN FUNDS

STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2017

   
Shenkman
   
Shenkman
  
   
Floating
   
Short
  
   
Rate High
   
Duration High
  
   
Income Fund
    
Income Fund
  
ASSETS:
            
Investments, at value (cost $337,122,177
           
  and $528,929,010)
  
$
334,356,101
    
$
533,700,280
  
Cash
    
3,288,406
      
765,405
  
Receivables
                
Securities sold
    
2,273,474
      
—
  
Interest
    
1,043,308
      
7,917,814
  
Fund shares sold
    
1,529,300
      
2,973,066
  
Prepaid expenses and other assets
    
13,033
      
37,202
  
Total Assets
    
342,503,622
      
545,393,767
  
LIABILITIES:
                
Payables
                
Securities purchased
    
25,028,202
      
8,870,397
  
Fund shares redeemed
    
3,726
      
515,122
  
Distributions
    
95,281
      
398,075
  
Advisory fees
    
86,391
      
208,704
  
Administration and accounting expenses
    
72,462
      
77,736
  
Audit
    
21,700
      
26,200
  
Printing and mailing
    
6,681
      
6,925
  
Transfer agent fees and expenses
    
6,469
      
15,639
  
Custody fees
    
2,207
      
4,678
  
Legal
    
1,952
      
1,950
  
Compliance fees
    
1,500
      
1,500
  
Trustee fees and expenses
    
598
      
371
  
Shareholder servicing fees
    
56
      
13,046
  
Distribution fees
    
—
      
36,940
  
Other accrued expenses and other liabilities
    
587
      
761
  
Total Liabilities
    
25,327,812
      
10,178,044
  
NET ASSETS
  
$
317,175,810
    
$
535,215,723
  
NET ASSETS CONSIST OF:
                
Capital stock
  
$
323,789,587
    
$
532,090,896
  
Accumulated net investment income
    
433,592
      
113,708
  
Accumulated net realized loss on investments
    
(4,281,293
)
    
(1,760,151
)
Unrealized net appreciation/(depreciation)
               
  on investments
    
(2,766,076
)
    
4,771,270
  
Total Net Assets
  
$
317,175,810
    
$
535,215,723
  
                 

The accompanying notes are an integral part of these financial statements.

66
SHENKMAN FUNDS

STATEMENTS OF ASSETS AND LIABILITIES – Continued
September 30, 2017

   
Shenkman
   
Shenkman
  
   
Floating
   
Short
  
   
Rate High
   
Duration High
  
   
Income Fund
    
Income Fund
  
NET ASSETS
            
Class A:
            
Net assets applicable to outstanding
           
  Class A shares
  
$
—
    
$
12,341,337
  
Shares issued and outstanding
    
—
      
1,225,862
  
Net asset value, redemption price per share
  
$
—
    
$
10.07
  
Maximum offering price per share
                
  (net asset value divided by 97.00%)
  
$
—
    
$
10.38
  
Class C:
                
Net assets applicable to outstanding
               
  Class C shares
  
$
—
    
$
11,537,719
  
Shares issued and outstanding
    
—
      
1,149,640
  
Net asset value, offering price
               
  and redemption price per share
  
$
—
    
$
10.04
  
Class F:
                
Net assets applicable to outstanding
               
  Class F shares
  
$
687,509
    
$
139,323,881
  
Shares issued and outstanding
    
70,580
      
13,874,757
  
Net asset value, offering price
               
  and redemption price per share
  
$
9.74
    
$
10.04
  
Institutional Class:
                
Net assets applicable to outstanding
               
  Institutional Class shares
  
$
316,488,301
    
$
372,012,786
  
Shares issued and outstanding
    
32,476,687
      
37,017,000
  
Net asset value, offering price
               
  and redemption price per share
  
$
9.75
    
$
10.05
  


The accompanying notes are an integral part of these financial statements.

67
SHENKMAN FUNDS

STATEMENTS OF OPERATIONS
For the Year Ended September 30, 2017

   
Shenkman
   
Shenkman
  
   
Floating
   
Short
  
   
Rate High
   
Duration High
  
   
Income Fund
    
Income Fund
  
INVESTMENT INCOME:
            
Interest income
  
$
13,037,545
    
$
14,917,070
  
Consent and term loan fee income
    
304,511
      
115,779
  
Total investment income
    
13,342,056
      
15,032,849
  
EXPENSES:
                
Investment advisory fees (Note 4)
    
1,449,121
      
2,192,278
  
Administration and accounting fees (Note 4)
    
417,375
      
424,794
  
Federal and state registration fees
    
31,336
      
80,805
  
Transfer agent fees and expenses (Note 4)
    
31,061
      
95,494
  
Audit fees
    
21,700
      
26,200
  
Custody fees (Note 4)
    
17,272
      
24,903
  
Trustees’ fees and expenses
    
15,114
      
13,838
  
Other expenses
    
12,642
      
16,840
  
Reports to Shareholders
    
9,065
      
13,916
  
Chief Compliance Officer fees and expenses (Note 4)
    
9,000
      
9,000
  
Insurance expense
    
5,332
      
5,505
  
Legal fees
    
5,155
      
3,852
  
Service fees – Class A (Note 6)
    
—
      
5,409
  
Service fees – Class C (Note 6)
    
—
      
3,813
  
Service fees – Class F (Note 6)
    
110
      
87,857
  
Distribution fees – Class A (Note 5)
    
—
      
26,500
  
Distribution fees – Class C (Note 5)
    
—
      
115,271
  
Total expenses before
               
  reimbursement from Advisor
    
2,024,283
      
3,146,275
  
Expense reimbursement from Advisor (Note 4)
    
(459,123
)
    
(316,790
)
Net expenses
    
1,565,160
      
2,829,485
  
NET INVESTMENT INCOME
    
11,776,896
      
12,203,364
  
NET REALIZED AND UNREALIZED GAIN:
                
Net realized gain on investments
    
1,754,181
      
1,037,682
  
Change in unrealized appreciation/
                
  (depreciation) on investments
    
(563,795
)
    
2,594,669
  
Net realized and unrealized
               
  gain on investments
    
1,190,386
      
3,632,351
  
NET INCREASE IN NET ASSETS
               
  RESULTING FROM OPERATIONS
  
$
12,967,282
    
$
15,835,715
  


The accompanying notes are an integral part of these financial statements.

68
SHENKMAN FLOATING RATE HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS


   
Year Ended
    
Year Ended
  
   
September 30,
   
September 30,
 
   
2017
    
2016
  
OPERATIONS:
            
Net investment income
  
$
11,776,896
    
$
11,643,878
  
Net realized gain/(loss) on investments
    
1,754,181
      
(5,978,402
)
Change in unrealized appreciation/
                
  (depreciation) on securities
    
(563,795
)
    
5,798,592
  
Net increase in net assets resulting from operations
    
12,967,282
      
11,464,068
  
DISTRIBUTIONS TO SHAREHOLDERS FROM:
                
Net investment income:
                
Class F
    
(5,780
)
    
—
  
Institutional Class
    
(11,601,915
)
    
(11,427,094
)
Total distributions
    
(11,607,695
)
    
(11,427,094
)
CAPITAL SHARE TRANSACTIONS:
                
Proceeds from shares sold:
                
Class F
    
683,499
      
N/A
  
Institutional Class
    
58,745,715
      
10,650,218
  
Proceeds from shares issued to
               
  holders in reinvestment of dividends:
                
Class F
    
5,780
      
N/A
  
Institutional Class
    
10,768,321
      
11,396,002
  
Cost of shares redeemed:
                
Class F
    
—
      
N/A
  
Institutional Class
    
(19,765,917
)
    
(39,295,337
)
Net increase/(decrease) in net assets
               
  derived from capital share transactions
    
50,437,398
      
(17,249,117
)
TOTAL INCREASE/(DECREASE) IN NET ASSETS
    
51,796,985
      
(17,212,143
)
NET ASSETS:
                
Beginning of year
    
265,378,825
      
282,590,968
  
End of year
  
$
317,175,810
    
$
265,378,825
  
Accumulated net investment
               
  income, end of year
  
$
433,592
    
$
264,391
  
CHANGES IN SHARES OUTSTANDING:
                
Shares sold:
                
Class F
    
69,987
      
N/A
  
Institutional Class
    
6,008,147
      
1,110,354
  
Shares issued to holders as reinvestment of dividends:
                
Class F
    
593
      
N/A
  
Institutional Class
    
1,103,042
      
1,199,019
  
Shares redeemed:
                
Class F
    
—
      
N/A
  
Institutional Class
    
(2,025,267
)
    
(4,130,373
)
Net decrease in shares outstanding
    
5,156,502
      
(1,821,000
)

The accompanying notes are an integral part of these financial statements.

69
SHENKMAN SHORT DURATION HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS


   
Year Ended
    
Year Ended
  
   
September 30,
   
September 30,
 
   
2017
    
2016
  
OPERATIONS:
            
Net investment income
  
$
12,203,364
    
$
4,888,119
  
Net realized gain/(loss) on investments
    
1,037,682
      
(2,236,158
)
Change in unrealized appreciation
               
  on securities
    
2,594,669
      
4,255,786
  
Net increase in net assets
               
  resulting from operations
    
15,835,715
      
6,907,747
  
DISTRIBUTIONS TO SHAREHOLDERS FROM:
                
Net investment income:
                
Class A
    
(290,940
)
    
(190,547
)
Class C
    
(226,796
)
    
(180,123
)
Class F
    
(3,025,799
)
    
(1,543,872
)
Institutional Class
    
(8,568,054
)
    
(2,955,068
)
Total distributions
    
(12,111,589
)
    
(4,869,610
)
CAPITAL SHARE TRANSACTIONS:
                
Proceeds from shares sold:
                
Class A
    
6,906,170
      
5,611,070
  
Class C
    
4,167,452
      
5,351,045
  
Class F
    
116,665,116
      
60,992,303
  
Institutional Class
    
281,729,316
      
128,109,876
  
Proceeds from shares issued to
               
  holders in reinvestment of dividends:
                
Class A
    
184,434
      
118,973
  
Class C
    
110,060
      
98,319
  
Class F
    
1,510,727
      
971,237
  
Institutional Class
    
6,800,582
      
2,665,908
  
Cost of shares redeemed:
                
Class A
    
(3,572,472
)
    
(1,930,074
)
Class C
    
(3,760,911
)
    
(758,708
)
Class F
    
(48,809,438
)
    
(29,555,394
)
Institutional Class
    
(67,962,267
)
    
(47,686,820
)


The accompanying notes are an integral part of these financial statements.

70
SHENKMAN SHORT DURATION HIGH INCOME FUND

STATEMENTS OF CHANGES IN NET ASSETS – Continued


   
Year Ended
    
Year Ended
 
   
September 30,
    
September 30,
 
   
2017
    
2016
  
CAPITAL SHARE TRANSACTIONS – Continued:
            
Redemption fees retained:
            
Class A
  
$
671
    
$
494
  
Class C
    
—
      
1
  
Class F
    
4
      
104
  
Institutional Class
    
2,034
      
150
  
Net increase in net assets derived from
               
  capital share transactions
    
293,971,478
      
123,988,484
  
TOTAL INCREASE IN NET ASSETS
    
297,695,604
      
126,026,621
  
NET ASSETS:
                
Beginning of year
    
237,520,119
      
111,493,498
  
End of year
  
$
535,215,723
    
$
237,520,119
  
Accumulated net investment
               
  income, end of year
  
$
113,708
    
$
28,307
  
CHANGES IN SHARES OUTSTANDING:
                
Shares sold:
                
Class A
    
688,574
      
568,723
  
Class C
    
417,295
      
542,833
  
Class F
    
11,671,739
      
6,200,032
  
Institutional Class
    
28,172,107
      
12,979,423
  
Shares issued to holders as
               
  reinvestment of dividends:
                
Class A
    
18,395
      
12,043
  
Class C
    
11,018
      
9,979
  
Class F
    
151,138
      
98,465
  
Institutional Class
    
679,559
      
269,922
  
Shares redeemed:
                
Class A
    
(356,255
)
    
(195,557
)
Class C
    
(376,159
)
    
(77,117
)
Class F
    
(4,887,353
)
    
(2,993,990
)
Institutional Class
    
(6,781,671
)
    
(4,831,829
)
Net increase in shares outstanding
    
29,408,387
      
12,582,927
  


The accompanying notes are an integral part of these financial statements.

71
SHENKMAN FLOATING RATE HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout the period
 
Class F
   
For the Period
 
   
March 1, 2017*
 
   
through
 
   
September 30,
 
   
2017
  
PER SHARE DATA:
      
Net asset value, beginning of period
  
$
9.82
  
         
Income from investment operations:
        
Net investment income
    
0.22
  
Net realized and unrealized loss on securities
    
(0.08
)
Total from investment operations
    
0.14
  
         
Less distributions:
        
Dividends from net investment income
    
(0.22
)
Total distributions
    
(0.22
)
         
Net asset value, end of period
  
$
9.74
  
         
TOTAL RETURN
    
1.46
%†
         
SUPPLEMENTAL DATA AND RATIOS:
        
Net assets, end of period (thousands)
  
$
688
  
Ratio of expenses to average net assets:
        
Before advisory fee waiver
    
0.81
%‡
After advisory fee waiver
    
0.64
%‡
Ratio of net investment income to average net assets:
        
Before advisory fee waiver
    
3.81
%‡
After advisory fee waiver
    
3.98
%‡
Portfolio turnover rate
    
74
%†

*
Commencement of operations.
†
Not Annualized.
‡
Annualized.


The accompanying notes are an integral part of these financial statements.

72
SHENKMAN FLOATING RATE HIGH INCOME FUND

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period
 
Institutional Class
               
October 15,
 
   
Year Ended
September 30,
    
2014*
 
       
through
  
       
September 30,
 
   
2017
    
2016
    
2015
  
PER SHARE DATA:
                    
Net asset value,
                   
  beginning of period
  
$
9.69
    
$
9.67
    
$
10.00
  
                         
Income from
                       
  investment operations:
                        
Net investment income
    
0.39
      
0.42
      
0.41
  
Net realized and unrealized
                       
  gain/(loss) on securities
    
0.06
      
0.01
      
(0.34
)
Total from
                       
  investment operations
    
0.45
      
0.43
      
0.07
  
                         
Less distributions:
                        
Dividends from net
                       
  investment income
    
(0.39
)
    
(0.41
)
    
(0.40
)
Total distributions
    
(0.39
)
    
(0.41
)
    
(0.40
)
                         
Net asset value, end of period
  
$
9.75
    
$
9.69
    
$
9.67
  
                         
TOTAL RETURN
    
4.73
%
    
4.63
%
    
0.66
%†
                         
SUPPLEMENTAL DATA AND RATIOS:
                        
Net assets, end of
                       
  period (thousands)
  
$
316,488
    
$
265,379
    
$
282,591
  
Ratio of expenses
                       
  to average net assets:
                        
Before advisory fee waiver
    
0.70
%
    
0.71
%
    
0.72
%‡
After advisory fee waiver
    
0.54
%
    
0.54
%
    
0.54
%‡
Ratio of net investment income
                       
  to average net assets:
                        
Before advisory fee waiver
    
3.90
%
    
4.20
%
    
4.26
%‡
After advisory fee waiver
    
4.06
%
    
4.37
%
    
4.44
%‡
Portfolio turnover rate
    
74
%
    
60
%
    
70
%†

*
Commencement of operations.
†
Not Annualized.
‡
Annualized.



The accompanying notes are an integral part of these financial statements.

73
SHENKMAN SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class A
                           
October 31,
 
                           
2012*
 
                           
through
 
   
Year Ended September 30,
    
September 30,
 
   
2017
    
2016
    
2015
    
2014
    
2013
  
PER SHARE DATA:
                                
Net asset value,
                               
  beginning of period
  
$
9.98
    
$
9.91
    
$
10.10
    
$
10.12
    
$
10.00
  
                                         
Income from
                                       
  investment operations:
                                        
Net investment income
    
0.28
      
0.29
      
0.27
      
0.30
      
0.25
  
Net realized and
                                       
  unrealized gain/(loss)
                                        
  on securities
    
0.08
      
0.06
      
(0.14
)
    
(0.01
)
    
0.13
  
Total from investment
                                        
  operations
    
0.36
      
0.35
      
0.13
      
0.29
      
0.38
  
                                         
Less distributions:
                                        
Dividends from net
                                       
  investment income
    
(0.27
)
    
(0.28
)
    
(0.30
)
    
(0.30
)
    
(0.26
)
  from net realized gains
    
—
      
—
      
(0.02
)
    
(0.01
)
    
—
  
Total distributions
    
(0.27
)
    
(0.28
)
    
(0.32
)
    
(0.31
)
    
(0.26
)
                                         
Net asset value,
                                       
  end of period
  
$
10.07
    
$
9.98
    
$
9.91
    
$
10.10
    
$
10.12
  
                                         
TOTAL RETURN
    
3.65
%
    
3.61
%
    
1.25
%
    
2.92
%
    
3.79
%†
                                         
SUPPLEMENTAL DATA AND RATIOS:
                                        
Net assets, end of
                                       
  period (thousands)
  
$
12,341
    
$
8,730
    
$
4,853
    
$
658
    
$
72
  
Ratio of expenses
                                       
  to average net assets:
                                        
Before advisory fee waiver
    
1.03
%
    
1.24
%
    
1.36
%
    
1.73
%
    
2.34
%‡
After advisory fee waiver
    
0.95
%
    
0.98
%
    
1.00
%
    
1.00
%
    
1.00
%‡
Ratio of net investment income
                                       
  to average net assets:
                                        
Before advisory fee waiver
    
2.73
%
    
2.69
%
    
2.63
%
    
1.84
%
    
1.56
%‡
After advisory fee waiver
    
2.81
%
    
2.95
%
    
2.99
%
    
2.56
%
    
2.90
%‡
Portfolio turnover rate
    
65
%
    
53
%
    
57
%
    
57
%
      78 %†
 
*
Commencement of operations.
†
Not Annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.

74
SHENKMAN SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class C
                     
January 28,
 
                     
2014*
 
                     
through
  
   
Year Ended September 30,
    
September 30,
 
   
2017
    
2016
    
2015
    
2014
  
PER SHARE DATA:
                          
Net asset value,
                         
  beginning of period
  
$
9.94
    
$
9.88
    
$
10.08
    
$
10.23
  
                                 
Income from
                               
  investment operations:
                                
Net investment income
    
0.21
      
0.22
      
0.22
      
0.18
  
Net realized and
                               
  unrealized gain/(loss)
                               
  on securities
    
0.09
      
0.05
      
(0.17
)
    
(0.14
)
Total from
                               
  investment operations
    
0.30
      
0.27
      
0.05
      
0.04
  
                                 
Less distributions:
                                
Dividends from net
                               
  investment income
    
(0.20
)
    
(0.21
)
    
(0.23
)
    
(0.19
)
  from net realized gains
    
—
      
—
      
(0.02
)
    
—
  
Total distributions
    
(0.20
)
    
(0.21
)
    
(0.25
)
    
(0.19
)
                                 
Net asset value, end of period
  
$
10.04
    
$
9.94
    
$
9.88
    
$
10.08
  
                                 
TOTAL RETURN
    
3.01
%
    
2.77
%
    
0.45
%
    
0.38
%†
                                 
SUPPLEMENTAL DATA AND RATIOS:
                                
Net assets, end of
                               
  period (thousands)
  
$
11,538
    
$
10,913
    
$
6,142
    
$
2,086
  
Ratio of expenses
                               
  to average net assets:
                                
Before advisory fee waiver
    
1.77
%
    
1.99
%
    
2.13
%
    
2.49
%‡
After advisory fee waiver
    
1.68
%
    
1.73
%
    
1.75
%
    
1.75
%‡
Ratio of net investment income
                               
  to average net assets:
                                
Before advisory fee waiver
    
1.99
%
    
1.95
%
    
1.86
%
    
1.24
%‡
After advisory fee waiver
    
2.08
%
    
2.21
%
    
2.24
%
    
1.98
%‡
Portfolio turnover rate
    
65
%
    
53
%
    
57
%
    
57
%†

*
Commencement of operations.
†
Not Annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.

75
SHENKMAN SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Class F
                           
May 17,
 
                           
2013*
 
                           
through
  
                           
September 30,
 
   
Year Ended September 30,
    
2013
  
   
2017
    
2016
    
2015
    
2014
    
(Unaudited)
  
PER SHARE DATA:
                                
Net asset value,
                               
  beginning of period
  
$
9.95
    
$
9.88
    
$
10.08
    
$
10.11
    
$
10.16
  
                                         
Income from
                                       
  investment operations:
                                        
Net investment income
    
0.29
      
0.31
      
0.31
      
0.32
      
0.12
  
Net realized and
                                       
  unrealized gain/(loss)
                                       
  on securities
    
0.09
      
0.06
      
(0.17
)
    
—
      
(0.04
)
Total from
                                       
  investment operations
    
0.38
      
0.37
      
0.14
      
0.32
      
0.08
  
                                         
Less distributions:
                                        
Dividends from net
                                       
  investment income
    
(0.29
)
    
(0.30
)
    
(0.32
)
    
(0.34
)
    
(0.13
)
  from net realized gains
    
—
      
—
      
(0.02
)
    
(0.01
)
    
—
  
Total distributions
    
(0.29
)
    
(0.30
)
    
(0.34
)
    
(0.35
)
    
(0.13
)
                                         
Net asset value,
                                       
  end of period
  
$
10.04
    
$
9.95
    
$
9.88
    
$
10.08
    
$
10.11
  
                                         
TOTAL RETURN
    
3.89
%
    
3.88
%
    
1.41
%
    
3.22
%
    
0.77
%†
                                         
SUPPLEMENTAL DATA AND RATIOS:
                                        
Net assets, end
                                       
  of period (thousands)
  
$
139,324
    
$
69,045
    
$
35,917
    
$
8,287
    
$
10
  
Ratio of expenses
                                       
  to average net assets:
                                        
Before advisory fee waiver
    
0.82
%
    
0.98
%
    
1.12
%
    
1.55
%
    
2.06
%‡
After advisory fee waiver
    
0.74
%
    
0.73
%
    
0.75
%
    
0.75
%
    
0.75
%‡
Ratio of net investment income
                                        
  to average net assets:
                                        
Before advisory fee waiver
    
2.95
%
    
2.95
%
    
2.87
%
    
2.64
%
    
1.83
%‡
After advisory fee waiver
    
3.03
%
    
3.20
%
    
3.24
%
    
3.44
%
    
3.14
%‡
Portfolio turnover rate
    
65
%
    
53
%
    
57
%
    
57
%
    
78
%†

*
Commencement of operations.
†
Not Annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.

76
SHENKMAN SHORT DURATION HIGH INCOME FUND

FINANCIAL HIGHLIGHTS


For a share outstanding throughout each period
 
Institutional Class
                           
October 31,
 
                           
2012*
 
                         
through
  
   
Year Ended September 30,
    
September 30,
 
   
2017
    
2016
    
2015
    
2014
    
2013
  
PER SHARE DATA:
                                
Net asset value,
                               
  beginning of period
  
$
9.96
    
$
9.89
    
$
10.08
    
$
10.12
    
$
10.00
  
                                         
Income from
                                       
  investment operations:
                                        
Net investment income
    
0.30
      
0.31
      
0.33
      
0.32
      
0.29
  
Net realized and
                                       
  unrealized gain/(loss)
                                       
  on securities
    
0.09
      
0.07
      
(0.17
)
    
—
      
0.12
  
Total from
                                       
  investment operations
    
0.39
      
0.38
      
0.16
      
0.32
      
0.41
  
                                         
Less distributions:
                                        
Dividends from net
                                       
  investment income
    
(0.30
)
    
(0.31
)
    
(0.33
)
    
(0.35
)
    
(0.29
)
  from net realized gains
    
—
      
—
      
(0.02
)
    
(0.01
)
    
—
  
Total distributions
    
(0.30
)
    
(0.31
)
    
(0.35
)
    
(0.36
)
    
(0.29
)
Net asset value,
                                       
  end of period
  
$
10.05
    
$
9.96
    
$
9.89
    
$
10.08
    
$
10.12
  
                                         
TOTAL RETURN
    
3.97
%
    
3.97
%
    
1.60
%
    
3.21
%
    
4.12
%†
                                         
SUPPLEMENTAL DATA AND RATIOS:
                                        
Net assets, end
                                       
  of period (thousands)
  
$
372,013
    
$
148,831
    
$
64,581
    
$
50,927
    
$
28,547
  
Ratio of expenses
                                       
  to average net assets:
                                        
Before advisory fee waiver
    
0.73
%
    
0.88
%
    
1.04
%
    
1.60
%
    
2.00
%‡
After advisory fee waiver
    
0.65
%
    
0.65
%
    
0.65
%
    
0.65
%
    
0.65
%‡
Ratio of net investment income
                                       
  to average net assets:
                                        
Before advisory fee waiver
    
3.04
%
    
3.04
%
    
2.95
%
    
2.30
%
    
1.83
%‡
After advisory fee waiver
    
3.12
%
    
3.27
%
    
3.34
%
    
3.25
%
    
3.18
%‡
Portfolio turnover rate
    
65
%
    
53
%
    
57
%
    
57
%
    
78
%†

*
Commencement of operations.
†
Not Annualized.
‡
Annualized.

The accompanying notes are an integral part of these financial statements.

77
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS
September 30, 2017

NOTE 1 – ORGANIZATION
 
The Shenkman Short Duration High Income Fund (the “Short Duration High Income Fund”) and the Shenkman Floating Rate High Income Fund (the “Floating Rate High Income Fund”)(each a “Fund” and collectively, the “Funds”) are diversified series of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as an open-end management investment company.  The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies.”
 
The Short Duration High Income Fund commenced operations on October 31, 2012. The Floating Rate High Income Fund commenced operations on October 15, 2014. The primary investment objective of the Funds is to seek a high level of current income.  Currently, the Short Duration High Income Fund offers Class A, Class C, Class F, and Institutional Class shares.  Class F shares became available for purchase on May 17, 2013, while Class C shares became available for purchase on January 28, 2014.
 
The Floating Rate High Income Fund offers Class F and Institutional Class shares. Institutional Class shares became available for purchase on October 15, 2014. The initial purchase included a transfer in-kind of securities and cash. The transfer in-kind was nontaxable, whereby the Fund issued 12,794,119 shares on October 15, 2014. The fair value and cost of securities, for tax purposes, received by the Fund was $127,869,966 and $129,652,584 respectively. In addition, the Fund received $1,871,223 of cash and interest receivable. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. Currently the Floating Rate High Income Fund offers Class F and Institutional Class shares. Class F shares became available for purchase on March 1, 2017.
 
Each class of shares differs principally in its respective distribution expenses and sales charges.  Each class of shares has identical rights to earnings, assets and voting privileges, except for class-specific expenses and exclusive rights to vote on matters affecting only individual classes.
 
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
 
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America.
 
Security Valuation – All investments in securities are recorded at their estimated fair value, as described in Note 3.
 
Federal Income Taxes – It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its
 
 
78
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

taxable income to its shareholders.  Therefore, no Federal income or excise tax provision is required.
 
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities.  The tax returns of the Funds’ for the prior three fiscal years are open for examination. Management has reviewed all open tax years in major jurisdictions and concluded that there is no impact on the Funds’ net assets and no tax liability resulting from unrecognized tax events relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds identify their major tax jurisdictions as U.S. Federal and the state of Wisconsin. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
 
Securities Transactions, Income, and Distributions – Securities transactions are accounted for on the trade date.  Securities sold are determined on a specific identification process.  Interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are accreted/amortized over the life of the respective security.  Dividend income and distributions to shareholders are recorded on the ex-dividend date.  Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
 
Each Fund distributes substantially all of its net investment income, if any, and net realized capital gains, if any, annually.  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.  Distributions from net realized gains for book purposes may include short-term capital gains.  All short-term capital gains are included in ordinary income for tax purposes.
 
Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of the Funds’ shares based upon their relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
 
Each Fund is charged for those expenses that are directly attributable to that Fund, such as investment advisory, custody and transfer agent fees.  Expenses that are not attributable to the Funds are typically allocated among the Funds in proportion to their respective net assets.  Common expenses of the Trust are typically allocated among the funds in the Trust based on a Fund’s respective net assets, or by other equitable means.
 

 
79
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

Securities Purchased on a When-Issued Basis – The Funds may purchase securities on a when-issued basis, for payment and delivery at a later date, generally within one month. The price and yield are generally fixed on the date of commitment to purchase, and the value of the security is thereafter reflected in the Funds’ NAV. During the period between purchase and settlement, no payment is made by the Funds and no interest accrues to the Funds. At the time of settlement, the market value of the security may be more or less than the purchase price.
 
Redemption Fees – The Funds charge a 1% redemption fee to shareholders who redeem shares held for 30 days or less.  Such fees are retained by the Funds and accounted for as an addition to paid-in capital.  During the year ended September 30, 2017 the Short Duration High Income Fund retained $2,709 in redemption fees.
 
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 from operation during the reporting period.  Actual results could differ from those estimates.
 
Derivatives – The Funds have adopted the financial accounting reporting rules as required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification (“FASB ASC”).  The Funds are required to include enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivatives instruments affect an entity’s result of operations and financial position.  During the year ended September 30, 2017 the Funds did not hold any derivative instruments.
 
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.  For the year ended September 30, 2017, the Funds made the following permanent tax adjustments on the Statement of Assets and Liabilities:
 
 
Undistributed
Accumulated
 
Net Investment
Net Realized
 
Income/(Loss)
Gain/(Loss)
Short Duration High Income Fund
$(6,374)
$6,374
 
Events Subsequent to the Fiscal Year End – In preparing the financial statements as of September 30, 2017 management considered the impact of subsequent events for the potential recognition or disclosure in these financial statements.
 

 
80
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

NOTE 3 – SECURITIES VALUATION
 
The Funds have adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for major security types.  These inputs are summarized in the three broad levels listed below:
 
 
Level 1 –
Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
 
 
Level 2 –
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
 
Level 3 –
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
Following is a description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis.
 
Each fund determines the fair value of its investments and computes its net asset value per share as of the close of regular trading on the New York Stock Exchange (4:00pm EST).
 
Bank Loan Obligations – Bank loan obligations are valued at market on the basis of valuations furnished by an independent pricing service which utilizes quotations obtained from dealers in bank loans.  These securities will generally be classified in Level 2 of the fair value hierarchy.
 
Debt Securities – Debt securities, such as corporate bonds, asset backed securities, mortgage backed securities, municipal bonds, U.S. Treasuries and U.S. government agency issues are valued at market on the basis of valuations furnished by an independent pricing service which utilizes both dealer-supplied valuations and formula-based techniques.  The pricing service may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer.  In addition, the
 

 
81
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

model may incorporate market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data.  Certain securities are valued principally using dealer quotations.  Debt securities having a maturity of 60 days or less are valued at the evaluated mean between the bid and asked price.  These securities will generally be classified in Level 2 of the fair value hierarchy.
 
Investment Companies – Investments in open-end mutual funds are valued at their net asset value per share.  To the extent, these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.
 
Short-Term Securities – Short-term securities having a maturity of less than 60 days are valued at the evaluated mean between bid and asked price.  To the extent the inputs are observable and timely, these securities would be classified in Level 2 of the fair value hierarchy.
 
Illiquid Securities – A security may be considered illiquid if it lacks a readily available market.  Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the Funds.  Illiquid securities may be valued under methods approved by the Funds’ Board of Trustees as reflecting fair value.  The Funds intend to hold no more than 15% of its net assets in illiquid securities.
 
Certain restricted securities may be considered illiquid.  Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the Funds’ Board of Trustees as reflecting fair value.  Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on the Funds’ investments in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the Funds’ Board of Trustees.  As of September 30, 2017, Shenkman Capital Management, Inc. (the “Advisor”) has determined that certain securities held by the Fund are considered illiquid.  See the Schedule of Investments for additional information.
 
Securities for which market quotations are not readily available, or if the closing price does not represent fair value, are valued following procedures approved by the Board of Trustees (“Board”).  These procedures consider many factors, including the type of security, size of holding, trading volume and news events.  There can be no assurance that the Funds could obtain the fair value assigned to a security if they were to sell the security at approximately the time at which the Fund determines its net asset value per share. 
 
82
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

The Board has delegated day-to-day valuation issues to a Valuation Committee of the Trust which is comprised of representatives from U.S. Bancorp Fund Services, LLC, the Funds’ administrator.  The function of the Valuation Committee is to value securities where current and reliable market quotations are not readily available or the closing price does not represent fair value by following procedures approved by the Board.  These procedures consider many factors, including the type of security, size of holding, trading volume and news events.  All actions taken by the Valuation Committee are subsequently reviewed and ratified by the Board.
 
Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either Level 2 or Level 3 of the fair value hierarchy.
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Funds’ securities as of September 30, 2017:
 
Floating Rate High Income Fund
 
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stock
                        
  Wholesale
                       
    Trade
  
$
208,074
    
$
—
    
$
—
    
$
208,074
  
Total
                               
  Common Stock
    
208,074
      
—
      
—
      
208,074
  
Private
                               
  Placements
                                
  Finance and
                               
    Insurance
    
—
      
—
      
530,853
      
530,853
  
  Utilities
    
—
      
—
      
42,525
      
42,525
  
Total Private
                               
  Placements
    
—
      
—
      
573,378
      
573,378
  
Fixed Income
                                
  Bank Loan
                               
    Obligations
    
—
      
269,237,184
      
2,637,937
      
271,875,121
  
  Corporate Bonds
    
—
      
35,877,537
      
—
      
35,877,537
  
Total Fixed
                               
  Income
    
—
      
305,114,721
      
2,637,937
      
307,752,658
  
Short-Term
                               
  Investments
    
25,821,991
      
—
      
—
      
25,821,991
  
Total
                               
  Investments
  
$
26,030,065
    
$
305,114,721
    
$
3,211,315
    
$
334,356,101
  

 
83
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

Short Duration High Income Fund
 
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Fixed Income
                        
  Bank Loan
                       
    Obligations
  
$
—
    
$
48,769,336
    
$
2,380,000
    
$
51,149,336
  
  Corporate
                               
    Bonds
    
—
      
465,623,776
      
—
      
465,623,776
  
Total Fixed
                               
  Income
    
—
      
514,393,112
      
2,380,000
      
516,773,112
  
Short-Term
                               
  Investments
    
16,927,168
      
—
      
—
      
16,927,168
  
Total
                               
  Investments
  
$
16,927,168
    
$
514,393,112
    
$
2,380,000
    
$
533,700,280
  
 
Refer to the Funds’ Schedule of Investments for a detailed break-out of securities.  Transfers between levels are recognized at September 30, 2017 the end of the reporting period.  The Shenkman Short Duration High Income Fund recognized no transfers to/from Level 1 or Level 2 during the year ended September 30, 2017. The Shenkman Floating Rate High Income Fund transferred $1,498,451 from Level 3 to Level 2 and transferred $747,937 from Level 2 to Level 3 at September 30, 2017 because the securities were priced either by way of single broker quote vs. multiple broker quotes.
 
The following is a reconciliation of each Fund’s level 3 investments for which significant unobservable inputs were used in determining fair value.
 
Floating Rate High Income Fund
 
Level 3 Reconciliation Disclosure
 
 
  
Private
   
Bank
        
 
  
Placements
    
Loans
    
Total
  
Balance as of
                 
  September 30, 2016
  
$
131,483
    
$
1,117,744
    
$
1,249,227
  
  Accrued discounts/premiums
    
—
      
5,123
      
5,123
  
  Change in unrealized
                        
    appreciation
    
441,895
      
307,323
      
749,218
  
  Transfer into Level 3
    
—
      
747,937
      
747,937
  
  Purchases
    
—
      
1,958,261
      
1,958,261
  
  Transfer out of Level 3
    
—
      
(1,498,451
)
    
(1,498,451
)
Balance as of
                       
  September 30, 2017
  
$
573,378
    
$
2,637,937
    
$
3,211,315
  

Change in unrealized appreciation/(depreciation) during the
     
  period for Level 3 investments held at September 30, 2017
  
 
$318,029
  
       

 
84
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

The Level 3 investments as of September 30, 2017 represented 1.01% of net assets and did not warrant a disclosure of significant unobservable valuation inputs.
 
Short Duration High Income Fund
 
Level 3 Reconciliation Disclosure
 
 
  
Bank Loans
    
Total
  
Balance as of September 30, 2016
  
$
—
    
$
—
  
  Purchases
    
2,380,000
      
2,380,000
  
Balance as of September 30, 2017
  
$
2,380,000
    
$
2,380,000
  
 
The Level 3 investments as of September 30, 2017 represented 0.44% of net assets and did not warrant a disclosure of significant unobservable valuation inputs.
 
NOTE 4 – INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
 
The Funds have an investment advisory agreement with Shenkman Capital Management, Inc. pursuant to which the Advisor is responsible for providing investment management services to each Fund.  The Advisor furnished all investment advice, office space and facilities, and provides most of the personnel needed by the Funds.  As compensation for its services, Shenkman Capital Management, Inc. is entitled to a fee, computed daily and payable monthly based upon the average daily net assets of the Funds at the annual rates of:
 
Floating Rate High Income Fund
0.50%
Short Duration High Income Fund
0.55%
 
For the year ended September 30, 2017, the Floating Rate High Income Fund and the Short Duration High Income Fund incurred $1,449,121 and $2,192,278, respectively, in advisory fees. Advisory fees payable to the Advisor at September 30, 2017 for the Floating Rate High Income Fund and the Short Duration High Income Fund were $86,391 and $208,704, respectively.  The amounts shown on the Statements of Assets and Liabilities are net amounts due to the Advisor.
 
Each Fund is responsible for its own operating expenses.  The Advisor has contractually agreed to waive its fees and/or absorb expenses of the Funds to the extent necessary to limit the Funds’ aggregate annual operating expenses (excluding Acquired Fund Fees and Expenses, taxes, interest, dividends in securities sold short, and extraordinary expenses) to the following amounts of the average daily net assets for each class of shares:
 
Floating Rate High Income Fund:
 
Class F
0.64%
Institutional Class
0.54%

 
85
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

Short Duration High Income Fund:
 
 
Class A
1.00%
 
Class C
1.75%
 
Class F
0.75%
 
Institutional Class
0.65%
 
Any such reduction made by the Advisor in its fees or payment of expenses which are the Funds’ obligation are subject to reimbursement by the Funds to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Funds 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.  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 Funds’ payment of current ordinary operating expenses. For the year ended September 30, 2017, the Advisor reduced its fees in the amount of $459,123 for the Floating Rate High Income Fund and in the amount of $316,790 for the Short Duration High Income Fund.  No amounts were reimbursed to the Advisor for either Fund.  Cumulative expenses subject to recapture pursuant to the aforementioned conditions expire as follows:
 
 
  
2018
    
2019
    
2020
    
Total
  
Floating Rate High
                       
  Income Fund
  
$
442,934
    
$
448,779
    
$
459,123
    
$
1,350,836
  
Short Duration High
                               
  Income Fund
    
345,681
      
368,819
      
316,790
      
1,031,290
  
 
U.S. Bancorp Fund Services, LLC (the “Administrator”) acts as each of the Fund’s 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.  U.S. Bancorp Fund Services, LLC also serves as the fund accountant, Chief Compliance Officer and transfer agent to the Funds.  U.S. Bank N.A. an affiliate of U.S. Bancorp Fund Services, serves as the Funds’ custodian.  For the year ended September 30, 2017, the Funds incurred the following expenses for administration, fund accounting, transfer agency, custody and Chief Compliance Officer fees:
 

 
86
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

 
  
Floating Rate
    
Short Duration
  
 
  
High Income Fund
    
High Income Fund
  
Administration & accounting
  
$
417,375
    
$
424,794
  
Custody
    
17,272
      
24,903
  
Transfer agency(a)
    
24,959
      
80,949
  
Chief Compliance Officer
    
9,000
      
9,000
  
                 
(a)  Does not include out-of-pocket expenses
                
 
At September 30, 2017, the Funds had payables due to U.S. Bancorp Fund Services, LLC for administration, fund accounting, transfer agency and Chief Compliance Officer fees and to U.S. Bank N.A. for custody fees in the following amounts:
 
 
  
Floating Rate
    
Short Duration
  
 
  
High Income Fund
    
High Income Fund
  
Administration & accounting
  
$
72,462
    
$
77,736
  
Custody
    
2,207
      
4,678
  
Transfer agency(a)
    
5,224
      
13,532
  
Chief Compliance Officer
    
1,500
      
1,500
  
                 
(a)  Does not include out-of-pocket expenses
                
 
Quasar Distributors, LLC (the “Distributor”) acts as each of the Fund’s principal underwriter in a continuous public offering of the Funds’ shares.  The Distributor is an affiliate of the Administrator.
 
Certain officers of the Funds are employees of the Administrator.  The Trust’s Chief Compliance Officer is also an employee of USBFS.  A Trustee of the Trust is affiliated with USBFS and U.S. Bank N.A. as he was recently, previously employed by USBFS.  This same Trustee was recently an interested person of the Distributor.
 
NOTE 5 – DISTRIBUTION AGREEMENT AND PLAN
 
The Short Duration High Income Fund adopted a Distribution Plan pursuant to Rule 12b-1 (the “Plan”).  The Plan permits the Fund to pay for distribution and related expenses at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class A shares and up to 1.00% of the average net assets of the Fund’s Class C shares.  The expenses covered by the Plan may include the cost in connection with the promotion and distribution of shares and the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, and the printing and mailing of sales literature.  Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred.  For the year ended September 30, 2017, the Short Duration High Income Fund incurred distribution expenses on their Class A and Class C shares of $26,500 and $115,271 respectively.
 

 
87
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017
 
NOTE 6 – SHAREHOLDER SERVICING FEE
 
The Funds entered into a shareholder servicing agreement (the “Agreement”) with the Advisor, under which the Advisor will provide, or arrange for others to provide, certain specified shareholder services.  As compensation for the provision of shareholder services, the Funds may pay servicing fees at an annual rate of 0.10% of the average daily net assets of the Class A, Class C, and Class F shares. Payments to the Advisor under the Agreement may reimburse the Advisor for payments it makes to selected brokers, dealers and administrators which have entered into service agreements with the Advisor for services provided to shareholders of the Funds.  The services provided by such intermediaries are primarily designed to assist shareholders of each Fund and include the furnishing of office space and equipment, telephone facilities, personnel, and assistance to the Funds in servicing such shareholders.  Services provided by such intermediaries also include the provision of support services to the Funds and include establishing and maintaining shareholders’ accounts and record processing, purchase and redemption transactions, answering routine client inquiries regarding the Fund, and providing such other personal services to shareholders as the Fund may reasonably request. For the year ended September 30, 2017, the Floating Rate High Income Fund’s Class F shares incurred $110 in shareholder servicing fees. For the year ended September 30, 2017, the Class A, Class C and Class F shares of the Short Duration High Income Fund incurred $5,409, $3,813 and $87,857 respectively, in shareholder servicing fees.
 
NOTE 7 – PURCHASES AND SALES OF SECURITIES
 
For the year ended September 30, 2017, the cost of purchases and the proceeds from sales of securities (excluding short-term securities) were as follows:
 
 
  
Purchases
    
Sales
  
Floating Rate High Income Fund
  
$
251,701,359
    
$
208,768,985
  
Short Duration High Income Fund
    
543,177,733
      
243,437,104
  
 
There were no purchases or sales of U.S. government obligations during the year ended September 30, 2017. During the year ended September 30, 2017, the Short Duration High Income Fund purchased 56 bonds from an affiliate of the Advisor in the amount of $32,522,614. The purchase transactions complied with Rule 17a-7 under the 1940 Act and the 17a-7 procedures adopted by the Trust.
 
NOTE 8 – LINE OF CREDIT
 
The Short Duration High Income Fund and the Floating Rate High Income Fund each have a line of credit in the amount of $50,000,000.  These lines of credit are intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The credit
 

 
88
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

facility is with the Funds’ custodian, U.S. Bank N.A. During the year ended September 30, 2017, the Floating Rate High Income did not draw upon its line of credit. The Short Duration High Income Fund had an outstanding average day balance of $5,060, a weighted average interest rate of 4.25% and paid $218 in interest. The maximum amount outstanding for the Short Duration High Income Fund during the year ended September 30, 2017 was $1,847,000. At September 30, 2017, the Funds had no outstanding loan amounts.
 
NOTE 9 – INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
 
As of September 30, 2017, the components of accumulated earnings/(losses) on a tax basis were as follows:
 
 
  
Floating Rate
    
Short Duration
  
 
  
High Income Fund
    
High Income Fund
  
Cost of investments(a)
  
$
337,124,946
    
$
528,929,010
  
Gross unrealized appreciation
    
3,759,702
      
5,105,005
  
Gross unrealized depreciation
    
(6,528,547
)
    
(333,735
)
Net unrealized
               
  appreciation/(depreciation)
    
(2,768,845
)
    
4,771,270
  
Undistributed ordinary income
    
433,592
      
113,708
  
Total distributable earnings
    
433,592
      
113,708
  
Other accumulated gains/(losses)
    
(4,278,524
)
    
(1,760,151
)
Total accumulated
               
  earnings/(losses)
  
$
(6,613,777
)
  
$
3,124,827
  
 
(a) 
The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales adjustments and tax adjustments related to the transfer-in-kind.
 
At September 30, 2017, the Funds had tax basis capital losses to offset future gains as follows:

 
  
Capital Loss Carryover
           
 
  
Long-Term
    
Short-Term
    
Total
  
Expiration Date
Floating Rate High
                       
  Income Fund
  
$
2,419,506
    
$
1,859,018
    
$
4,278,524
  
No Expiration
Short Duration High
                             
  Income Fund
    
1,439,050
      
321,101
      
1,760,151
  
No Expiration
 
The tax character of distributions paid during the fiscal years ended September 30, 2017 and the September 30, 2016 were as follows:
 
Floating Rate High Income Fund
 
 
  
Year Ended
   
Year Ended
 
 
  
September 30, 2017
    
September 30, 2016
  
Ordinary income
  
$
11,607,695
    
$
11,427,094
  
Total distributions Paid
  
$
11,607,695
    
$
11,427,094
  
 
                
89
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

Short Duration High Income Fund
 
 
  
Year Ended
   
Year Ended
 
 
  
September 30, 2017
    
September 30, 2016
  
Ordinary income
  
$
12,111,589
    
$
4,869,610
  
Total distributions Paid
  
$
12,111,589
    
$
4,869,610
  
 
The Fund designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Fund related to net capital gain to zero for the tax year ended September 30, 2017.
 
NOTE 10 – PRINCIPAL RISKS
 
Below is a summary of some, but not all, of the principal risk of investing in the Funds, each of which may adversely affect a Fund’s net asset value and total return. The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks. The following risks apply to all Funds.
 
Bank Loan Risk – A Fund’s investments in assignments of secured and unsecured bank loans may create substantial risk. In making investments in such loans, which are made by banks or other financial intermediaries to borrowers, a Fund will depend primarily upon the creditworthiness of the borrower, whose financial condition may be troubled or highly leveraged, for payment of principal and interest. If a Fund does not receive scheduled interest or principal payments on such indebtedness, such Fund’s share price could be adversely affected. A Fund may invest in loans that are rated by a nationally recognized statistical rating organization or are unrated, and may invest in loans of any credit quality, including “distressed” companies with respect to which there is a substantial risk of losing the entire amount invested. In addition, certain bank loans in which a Fund may invest may be illiquid and, therefore, difficult to value and/or sell at a price that is beneficial to the Funds. A Fund, as a participant in a loan, has no direct claim on the loan and would be a creditor of the lender, and not the borrower, in the event of a borrower’s insolvency or default. Transactions in many loans settle on a delayed basis, and a Fund may not receive the proceeds from the sale of a loan for a substantial period after the sale (i.e., more than seven days after the sale). As a result, sale proceeds related to the sale of loans may not be available to make additional investments or to meet a Fund’s redemption obligations until potentially a substantial period after the sale of the loans. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.
 

 
90
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

Credit Risk – A company may not be able to repay its debt. The Funds invest primarily in “high yield” securities and loans (i.e., rated below Baa3 or BBB- by one or more nationally recognized statistical rating organizations or are unrated but are of comparable credit quality to obligations rated below investment-grade). High yield securities and loans have greater credit risk than more highly rated debt obligations and have a greater possibility that an adverse change in the financial condition of the issuer or the economy may impair the ability of the issuer to make payments of principal and interest. Bankruptcy and similar laws applicable to issuers of the high yield securities and loans may also limit the amount of a Fund’s recovery if the issuer becomes insolvent. High yield securities and loans have historically experienced greater default rates than has been the case for investment-grade securities.
 
High Yield Risk – Bonds and loans rated below BBB by S&P or Baa by Moody’s (commonly referred to as “junk bonds or loans”) typically carry higher coupon rates than investment grade bonds, but also are described as speculative by both S&P and Moody’s and may be subject to greater market price fluctuations, less liquidity and greater risk of income or principal including greater possibility of default and bankruptcy of the issuer of such securities than more highly rated bonds and loans. Lower-rated bonds and loans also are more likely to be sensitive to adverse economic or company developments and more subject to price fluctuations in response to changes in interest rates. The market for lower-rated debt issues generally is thinner and less active than that for higher quality securities, which may limit a Fund’s ability to sell such securities at fair value in response to changes in the economy or financial markets. During periods of economic downturn or rising interest rates, highly leveraged issuers of lower-rated securities may experience financial stress which could adversely affect their ability to make payments of interest and principal and increase the possibility of default.
 
Interest Rate Risk – Bond prices generally rise when interest rates decline and decline when interest rates rise. The longer the duration of a bond, the more a change in interest rates affects the bond’s price. Short-term and long-term interest rates may not move the same amount and may not move in the same direction. It is likely there will be less governmental action in the near future to maintain low interest rates, or that governmental actions will be less effective in maintaining low interest rates. The negative impact on fixed income securities from the resulting rate increases for that and other reasons could be swift and significant, including falling market values and reduced liquidity. Substantial redemptions from bond and other income funds may worsen that impact. Other types of securities also may be adversely affected from an increase in interest rates.
 
Investment Risk – The Funds invest primarily in debt obligations issued by non-investment grade companies that may have significant risks as a result of
 

 
91
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

business, financial, market or legal uncertainties. There can be no assurance that the Advisor will correctly evaluate the nature and magnitude of the various factors that could affect the value of, and return on, a Fund’s investments. Prices of the investments held by the Funds may be volatile, and a variety of other factors that are inherently difficult to predict, such as domestic or international economic and political developments, may significantly affect the results of a Fund’s activities and the value of its investments.
 
Liquidity Risk – Low or lack of trading volume may make it difficult to sell securities held by the Funds at quoted market prices. The Funds’ investments may at any time consist of significant amounts of securities that are thinly traded or for which no market exists. For example, the investments held by a Fund may not be liquid in all circumstances so that, in volatile markets, the Advisor may not be able to close out a position without incurring a loss. The foregoing risks may be accentuated when the Funds are required to liquidate positions to meet withdrawal requests. Additionally, floating rate loans generally are subject to legal or contractual restrictions on resale, may trade infrequently, and their value may be impaired when the Funds need to liquidate such loans. High yield bonds and loans generally trade only in the over-the-counter market rather than on an organized exchange and may be more difficult to purchase or sell at a fair price, which could have a negative impact on a Fund’s performance.
 
Market Risk – The prices of some or all of the securities in which the Funds invest may decline for a number of reasons, including in response to economic developments and perceptions about the creditworthiness of individual issuers. There can be no assurance that what is perceived as an investment opportunity will not, in fact, result in substantial losses. There is more risk that prices will go down for investors investing over short time horizons.
 
Rule 144A Securities Risk – Rule 144A securities are purchased in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, (the “Securities Act”) pursuant to Rule 144A of the Securities Act. Rule 144A securities may only be sold to qualified institutional buyers, such as the Funds. The market for Rule 144A securities typically is less active than the market for public securities. Rule 144A securities carry the risk that the trading market may not continue and the Funds might be unable to dispose of these securities promptly or at reasonable prices and might thereby experience difficulty satisfying redemption requirements.
 
NOTE 11 – REPORT OF THE TRUST’S SPECIAL SHAREHOLDER MEETING
 
A Special Meeting of Shareholders (the “Meeting”) took place on March 3, 2017, to elect one new Trustee to the Board and to ratify the prior appointment of two current Trustees of the Board.
 

 
92
SHENKMAN FUNDS

NOTES TO FINANCIAL STATEMENTS – Continued
September 30, 2017

All Trust shareholders of record, in the aggregate across all Funds of the Trust, were entitled to attend or submit proxies.  As of the applicable record date, the Trust had 315,776,916 shares outstanding.  The results of the voting for each proposal were as follows:
 
Proposal No. 1. Election of One New Trustee
 
Nominee
For Votes
Votes Withheld
David G. Mertens
206,896,354
1,556,814
 
Proposal No. 2. Ratification of the Prior Appointment of Two Current Trustees of the Board
 
Current Trustee
For Votes
Votes Withheld
Gail S. Duree
205,321,820
3,131,348
Raymond B. Woolson
206,321,270
2,131,897
 
Effective March 3, 2017, the Board of Trustees of Advisors Series Trust consists of the following individuals:
 
Gail S. Duree,
Joe D. Redwine, 
  Independent Trustee
  Interested Trustee
David G. Mertens,
George T. Wofford,
  Independent Trustee
  Independent Trustee
George J. Rebhan,
Raymond B. Woolson,
  Independent Trustee
  Independent Trustee
 
Effective March 13, 2017, following Mr. Wofford’s resignation, the Board of Trustees of Advisors Series Trust consists of the following individuals:
 
Gail S. Duree,
Joe D. Redwine,
  Independent Trustee
  Interested Trustee
David G. Mertens,
Raymond B. Woolson,
  Independent Trustee
  Independent Trustee
George J. Rebhan,
 
  Independent Trustee
  


93
SHENKMAN FUNDS

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Trustees
Advisors Series Trust and
Shareholders of:
Shenkman Floating Rate High Income Fund
Shenkman Short Duration High Income Fund
 
We have audited the accompanying statements of assets and liabilities of the Shenkman Floating Rate High Income Fund and Shenkman Short Duration High Income Fund (each a “Fund” and collectively, the “Funds”), each a series of Advisors Series Trust (the “Trust”), including the schedules of investments, as of September 30, 2017, and with respect to the Shenkman Floating Rate High Income Fund, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and for the period October 15, 2014 (commencement of operations) through September 30, 2015, with respect to the Shenkman Short Duration High Income Fund the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period October 31, 2012 (commencement of operations) through September 30, 2013.  These financial statements and financial highlights are the responsibility of the Trust’s management.  Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with 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.  The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies were not received. 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 the Shenkman Floating Rate High Income Fund and Shenkman Short Duration High Income Fund, as of September 30, 2017, and the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
 
 
TAIT, WELLER & BAKER LLP
 
Philadelphia, Pennsylvania
November 29, 2017
 
94
SHENKMAN FUNDS
 
INFORMATION ABOUT TRUSTEES AND OFFICERS
(Unaudited)
 
This chart provides information about the Trustees and Officers who oversee the Funds.  Officers elected by the Trustees manage the day-to-day operations of the Funds and execute policies formulated by the Trustees.
 
Independent Trustees(1)
       
Number
  
       
of
  
   
Term of
 
Portfolios
  
   
Office
  
in Fund
Other
 
Position
and
Principal
Complex
Directorships
 
Held
Length
Occupation
Overseen
Held
Name, Address
with the
of Time
During Past
by
During Past
and Age
Trust
Served
Five Years
Trustee(2)
Five Years(3)
Gail S. Duree
Trustee
Indefinite
Director, Alpha
2
Trustee,
(age 71)
  
term;
Gamma Delta
 
Advisors
615 E. Michigan St.
  
since
Housing
  
Series Trust
Milwaukee, WI
 
March
Corporation
  
(for series not
53202
  
2014.
(collegiate
 
affiliated with
     
housing
 
the Funds);
     
management)
 
Independent
     
(2012 to present);
  
Trustee from
     
Trustee and Chair
  
1999 to 2012,
     
(2000 to 2012),
 
New Covenant
     
New Covenant
 
Mutual Funds
     
Mutual Funds
 
(an open-end
     
(1999 to 2012);
 
investment
     
Director and
 
company with
     
Board Member,
 
4 portfolios).
     
Alpha Gamma
   
     
Delta Foundation
   
     
(philanthropic
   
     
organization)
   
     
(2005 to 2011).
    
           
David G. Mertens
Trustee
Indefinite
Retired;
2
Trustee,
(age 57)
  
term*;
formerly
  
Advisors
615 E. Michigan St.
  
since
Managing
 
Series Trust
Milwaukee, WI
 
March
Director and
 
(for series not
53202
  
2017.
Vice President,
 
affiliated with
     
Jensen
 
the Funds).
     
Investment
   
     
Management, Inc.
   
     
(a privately-held
   
     
investment
   
     
advisory firm)
    
     
(2002 to 2017).
    

 
95
SHENKMAN FUNDS

INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)

       
Number
  
       
of
  
   
Term of
 
Portfolios
  
   
Office
  
in Fund
Other
 
Position
and
Principal
Complex
Directorships
 
Held
Length
Occupation
Overseen
Held
Name, Address
with the
of Time
During Past
by
During Past
and Age
Trust
Served
Five Years
Trustee(2)
Five Years(3)
George J. Rebhan
Chairman
Indefinite
Retired;
2
Trustee,
(age 83)
of the
term;
formerly
  
Advisors
615 E. Michigan St.
Board
since
President,
 
Series Trust
Milwaukee, WI
and
May
Hotchkis and
 
(for series not
53202
Trustee
2002.
Wiley Funds
 
affiliated with
     
(mutual funds)
 
the Funds);
     
(1985 to 1993).
  
Independent
         
Trustee from
         
1999 to 2009,
         
E*TRADE
         
Funds.
           
Raymond B. Woolson
Trustee
Indefinite
President,
2
Trustee,
(age 58)
  
term*;
Apogee Group,
 
Advisors
615 E. Michigan St.
  
since
Inc. (financial
 
Series Trust
Milwaukee, WI
 
January
consulting firm)
 
(for series not
53202
  
2016.
(1998 to present).
  
affiliated with
         
the Funds);
         
Independent
         
Trustee,
         
DoubleLine
         
Funds Trust
         
(an open-end
         
investment
         
company with
         
15 portfolios),
         
DoubleLine
         
Opportunistic
         
Credit Fund
         
and
         
DoubleLine
         
Income
         
Solutions
         
Fund, from
         
2010 to
         
present;
         
Independent
         
Trustee,
         
DoubleLine
         
Equity Funds
         
from 2010
         
to 2016.

96
SHENKMAN FUNDS

INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
 
       
Number
  
       
of
  
   
Term of
 
Portfolios
  
   
Office
  
in Fund
Other
 
Position
and
Principal
Complex
Directorships
 
Held
Length
Occupation
Overseen
Held
Name, Address
with the
of Time
During Past
by
During Past
and Age
Trust
Served
Five Years
Trustee(2)
Five Years(3)
Interested Trustee
          
           
Joe D. Redwine(4)
Interested
Indefinite
Retired;
2
Trustee,
(age 70)
Trustee
term;
formerly
  
Advisors
615 E. Michigan St.
  
since
President,
 
Series Trust
Milwaukee, WI
 
September
CEO, U.S.
 
(for series not
53202
  
2008.
Bancorp Fund
  
affiliated with
     
Services, LLC
 
the Funds).
     
(May 1991 to
   
     
July 2017);
   
     
formerly,
   
     
Manager, U.S.
   
     
Bancorp Fund
   
     
Services, LLC
   
     
(1998 to
   
     
July 2017).
    
Officers
          
   
Term of
     
   
Office
      
 
Position
and
      
 
Held
Length
      
Name, Address
with the
of Time
Principal Occupation
    
and Age
Trust
Served
During Past Five Years
    
Douglas G. Hess
President,
Indefinite
Senior Vice President, Compliance and
 
(age 50)
Chief
term;
Administration, U.S. Bancorp Fund
 
615 E. Michigan St.
Executive
since
Services, LLC (March 1997 to present).
  
Milwaukee, WI
Officer
June
      
53202
and
2003.
      
 
Principal
        
 
Executive
        
 
Officer
        
         
Cheryl L. King
Treasurer
Indefinite
Vice President, Compliance and
 
(age 56)
and
term;
Administration, U.S. Bancorp Fund
 
615 E. Michigan St.
Principal
since
Services, LLC (October 1998 to present).
  
Milwaukee, WI
Financial
December
      
53202
Officer
2007.
      

 
97
SHENKMAN FUNDS

INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
 
   
Term of
 
   
Office
  
 
Position
and
  
 
Held
Length
  
Name, Address
with the
of Time
Principal Occupation
and Age
Trust
Served
During Past Five Years
Kevin J. Hayden
Assistant
Indefinite
Assistant Vice President, Compliance
(age 46)
Treasurer
term;
and Administration, U.S. Bancorp Fund
615 E. Michigan St.
  
since
Services, LLC (June 2005 to present).
Milwaukee, WI
 
September
  
53202
  
2013.
  
       
Michael L. Ceccato
Vice
Indefinite
Senior Vice President, U.S. Bancorp
(age 60)
President,
term;
Fund Services, LLC and Vice President,
615 E. Michigan St.
Chief
since
U.S. Bank N.A. (February 2008
Milwaukee, WI
Compliance
September
to present).
53202
Officer and
2009.
  
 
AML Officer
    
       
Jeanine M.
Secretary
Indefinite
Senior Vice President and Counsel,
  Bajczyk, Esq.
  
term;
U.S. Bancorp Fund Services, LLC
(age 52)
  
since
(May 2006 to present).
615 E. Michigan St.
  
September
  
Milwaukee, WI
 
2015.
  
53202
      


98
SHENKMAN FUNDS

INFORMATION ABOUT TRUSTEES AND OFFICERS – Continued
(Unaudited)
 
   
Term of
 
   
Office
  
 
Position
and
  
 
Held
Length
  
Name, Address
with the
of Time
Principal Occupation
and Age
Trust
Served
During Past Five Years
Emily R.
Assistant
Indefinite
Assistant Vice President, U.S. Bancorp
  Enslow, Esq.
Secretary
term;
Fund Services, LLC (July 2013 to
(age 30)
  
since
present); Proxy Voting Coordinator and
615 E. Michigan St.
  
September
Class Action Administrator, Artisan
Milwaukee, WI
 
2015.
Partners Limited Partnership (September
53202
    
2012 to July 2013); Legal Internship,
     
Artisan Partners Limited Partnership
     
(February 2012 to September 2012);
     
J.D. Graduate, Marquette University
     
Law School (2009 to 2012).

*
Under the Trust’s Agreement and Declaration of Trust, a Trustee serves during the continued lifetime of the Trust until he/she dies, resigns, is declared bankrupt or incompetent by a court of appropriate jurisdiction, or is removed, or, if sooner, until the election and qualification of his/her successor.  In addition, the Trustees have designated a mandatory retirement age of 75, such that each Trustee first elected or appointed to the Board after December 1, 2015, serving as such on the date he or she reaches the age of 75, shall submit his or her resignation not later than the last day of the calendar year in which his or her 75th birthday occurs.
(1)
The Trustees of the Trust who are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”).
(2)
As of September 30, 2017, the Trust was comprised of 45 active portfolios managed by unaffiliated investment advisers.  The term “Fund Complex” applies only to the Fund.  The Fund does not hold itself out as related to any other series within the Trust for investment purposes, nor does it share the same investment adviser with any other series.
(3)
“Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the Securities Exchange Act of 1934, as amended, (that is, “public companies”) or other investment companies registered under the 1940 Act.
(4)
Mr. Redwine is an “interested person” of the Trust as defined by the 1940 Act.  Mr. Redwine is an interested Trustee of the Trust by virtue of the fact that he was recently  an interested person of Quasar Distributors, LLC who acts as principal underwriter to the series of the Trust.
 
The Statement of Additional Information includes additional information about the Fund’s Trustees and Officers and is available, without charge, upon request by calling 1-855-743-6562.
 


99
SHENKMAN FUNDS

NOTICE TO SHAREHOLDERS
September 30, 2017 (Unaudited)

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 1-855-SHENKMAN (1-855-743-6562) or on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
 
 
How to Obtain a Copy of the Funds’ Proxy Voting Records for the 12-Month Period Ended June 30
 
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-855-SHENKMAN (1-855-743-6562). Furthermore, you can obtain the Funds’ proxy voting records on the SEC’s website at http://www.sec.gov.
 
 
Quarterly Filings on Form N-Q
 
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q is available on the SEC’s website at http://www.sec.gov. The Funds’ 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 1-202-551-8090. Information included in the Funds’ Form N-Q is also available, upon request, by calling 1-855-SHENKMAN (1-855-743-6562).
 
 
Trustees and Officers
 
The Fund’s Statement of Additional Information includes additional information about the Fund’s Trustees and Officers and is available, without charge, upon request by calling 1-855-SHENKMAN (1-855-743-6562) or by visiting the Fund’s website at www.shenkmanfunds.com.
 
 
Householding
 
In an effort to decrease costs, the Funds intend to reduce the number of duplicate prospectuses, annual and semi-annual reports, proxy statements and other regulatory documents you receive by sending only one copy of each to those addresses shared by two or more accounts and to shareholders the Transfer Agent reasonably believes are from the same family or household.  Once implemented, if you would like to discontinue householding for your accounts, please call toll-free at 1-855-SHENKMAN (1-855-743-6562) to request individual copies of these documents.  Once the Transfer Agent receives notice to stop householding, the Transfer Agent will begin sending individual copies thirty days after receiving your request.  This policy does not apply to account statements.
 

 
100
SHENKMAN FUNDS

PRIVACY NOTICE
 
The Funds collect non-public information about you from the following sources:
 
•
Information we receive about you on applications or other forms;
 
•
Information you give us orally; and/or
 
•
Information about your transactions with us or others.
 
We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Funds.  We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities.  We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.
 
In the event that you hold shares of the Funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
 
 
101


Adviser
Shenkman Capital Management, Inc.
461 Fifth Avenue, 22nd Floor
New York, NY  10017

Distributor
Quasar Distributors, LLC
777 East Wisconsin Avenue, 6th Floor
Milwaukee, WI  53202

Transfer Agent
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI  53202
(877) 273-8635

Custodian
U.S. Bank N.A.
1555 N. River Center Drive, Suite 302
Milwaukee, WI  53212

Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street, Suite 2400
Philadelphia, PA  19103

Legal Counsel
Schiff Hardin LLP
666 Fifth Avenue, Suite 1700
New York, NY  10103







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.
 

 

 
SJ-ANNUAL
 

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 Trustees has determined that there is at least one audit committee financial expert serving on its audit committee.  Ms. Gail S. Duree is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N‑CSR.

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 or expected to be 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  9/30/2017
FYE  9/30/2016
Audit Fees
          $40,900
          $40,300
Audit-Related Fees
          N/A
          N/A
Tax Fees
          $7,000
          $6,800
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.

The percentage of fees billed by Tait, Weller & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:

 
FYE  9/30/2017
FYE  9/30/2016
Audit-Related Fees
0%
0%
Tax Fees
0%
0%
All Other Fees
0%
0%

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 or expected to be 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  9/30/2017
FYE  9/30/2016
Registrant
N/A
N/A
Registrant’s Investment Adviser
N/A
N/A
 
Item 5. Audit Committee of Listed Registrants.

(a)  Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

(b)  Not applicable.

Item 6. Investments.

(a)
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
 
(b)   Not applicable.
 
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 Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

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/Principal Executive Officer and Treasurer/Principal 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, as amended, (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 changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the fourth 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable to open-end investment companies.

Item 13. 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.

(4) Change in the registrant’s independent public accountant.  There was no change in the registrant’s independent public accountant for the period covered by this report.

(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/ Douglas G. Hess
Douglas G. Hess, President/Chief Executive Officer/Principal Executive Officer

Date  12/8/17



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/ Douglas G. Hess
Douglas G. Hess, President/Chief Executive Officer/Principal Executive Officer

Date  12/8/17

By (Signature and Title)*    /s/ Cheryl L. King
Cheryl L. King, Treasurer/Principal Financial Officer

Date  12/8/17

* Print the name and title of each signing officer under his or her signature.