-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Raq4eWm8KUEvKzXLbjQ8X+X9VUp+WChWiJ6ho0o8r75CIqKlQyHfclx0X9lvHXWR 23LZ1JawmTBRL/Sm5+ifBw== 0000950147-00-000017.txt : 20000107 0000950147-00-000017.hdr.sgml : 20000107 ACCESSION NUMBER: 0000950147-00-000017 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991031 FILED AS OF DATE: 20000106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORS SERIES TRUST CENTRAL INDEX KEY: 0001027596 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07959 FILM NUMBER: 502152 BUSINESS ADDRESS: STREET 1: 2020 E FINANCIAL WAY SUITE 100 CITY: GLENDORA STATE: CA ZIP: 91741 BUSINESS PHONE: 8188521033 MAIL ADDRESS: STREET 1: 2020 E FINANCIAL WAY STREET 2: SUITE 100 CITY: GLENDORA STATE: CA ZIP: 91741 N-30D 1 SEMI-ANNUAL REPORT FOR PERIOD ENDING 10-31-99 [NATIONAL ASSET MANAGEMENT CORE EQUITY FUND] SEMI-ANNUAL REPORT FOR THE PERIOD ENDED OCTOBER 31, 1999 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND Dear Fellow Shareholders: We are pleased to present you with the first semi-annual report on the progress of the National Asset Management Core Equity Fund for the five-month period ending October 31, 1999. The Fund got off to a good start in its first five months of existence, gaining 7.20%. This compares quite favorably to the S&P 500 Index that advanced by 5.21% over the same time period. The goal of the Fund is to earn a high total investment return. Our investment philosophy is to pursue this goal in three ways: to stay fully invested in the stock market, to blend both growth and value investment styles, and to diversify the portfolio among three attributes or types of stocks: growth, high yield, and low P/E. The Fund invests in these attributes because they each have outperformed the S&P 500 Index over the long term, but each performs quite differently during different economic conditions. Over the last five months the market environment has favored large capitalization growth stocks, which we have been emphasizing in the portfolio. Value stocks have not been able to sustain the brief rally they experienced in the second quarter. We continue to monitor the economy, watching diligently for indications of a favorable environment for the more cyclical low P/E and high yield stocks. Should it materialize, we will gradually shift the attribute weightings accordingly. The portfolio is broadly diversified across the major sectors of the large capitalization equity market. The largest single sector weighting is technology, which at times approached 25% of the portfolio and 5% larger than the S&P 500 Index weighting. This overweighting was the largest single source of extra market return during the Fund's first five months. The technology stocks in the portfolio can be characterized as those which are leaders in their niches. These companies are benefiting financially from the technology and communication revolution taking place in the world today. All of these are well established companies which are very profitable, and not the faddish IPOs associated with the dot.com craze. Our outlook is for the large capitalization high quality companies to continue to perform well, driven by strong market shares and solid relative earning growth. Without question, we are in an environment where progress will systematically be interrupted by periods of volatility. The trends of increasing global free trade and low inflation should allow corporate earnings growth to be solid in the new year. NATIONAL ASSET MANAGEMENT CORE EQUITY FUND We thank you for your support and the trust you have expressed in us by investing in our Fund. We look forward to a long and mutually rewarding relationship. Sincerely, NATIONAL ASSET MANAGEMENT EQUITY TEAM Past performance of the Fund and the S&P 500 Index is not predictive of future performance. Fund share values will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. Indexes are not available for direct investment and do not incur expenses. The information contained in this report is authorized for use when proceeded or accompanied by a prospectus for the Fund. The Fund is distributed by First Fund Distributors, Inc., 4455 E. Camelback Rd., Suite 261E, Phoenix, AZ 85018. NATIONAL ASSET MANAGEMENT CORE EQUITY FUND SCHEDULE OF INVESTMENTS AT OCTOBER 31, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 98.26% Market Value - -------------------------------------------------------------------------------- BASIC INDUSTRY: 8.08% 270 Alcoa Inc............................................. $ 16,403 170 Champion International Corporation.................... 9,828 110 E. I. du Pont de Nemours and Company.................. 7,088 300 Ingersoll-Rand Company................................ 15,675 200 Praxair, Inc.......................................... 9,350 330 Sigma-Aldrich Corporation............................. 9,405 250 Willamette Industries, Inc............................ 10,391 ----------- 78,140 ----------- CAPITAL GOODS: 8.21% 200 Caterpillar Inc....................................... 11,050 40 Emerson Electric Co................................... 2,403 214 General Electric Company.............................. 29,010 320 Lucent Technologies Inc............................... 20,560 360 Pitney Bowes Inc...................................... 16,402 ----------- 79,425 ----------- CONSUMER CYCLICAL: 8.38% 270 Dayton Hudson Corporation............................. 17,449 90 Masco Corporation..................................... 2,745 311 The Home Depot, Inc................................... 23,481 410 The Interpublic Group of Companies, Inc............... 16,656 362 Wal-Mart Stores, Inc.................................. 20,679 ----------- 81,010 ----------- CONSUMER STAPLES: 9.86% 613 Automatic Data Processing............................. 29,539 300 Ceridian Corp. *...................................... 6,581 150 Cintas Corporation.................................... 9,038 400 CVS Corporation....................................... 17,375 60 Philip Morris Companies Inc........................... 1,511 250 Safeway Inc. *........................................ 8,828 180 The Coca-Cola Company................................. 10,620 470 Walgreen Co........................................... 11,838 ----------- 95,330 ----------- 4 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND SCHEDULE OF INVESTMENTS AT OCTOBER 31, 1999 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- ENERGY: 6.76% 17 Conoco Inc. - Class B................................. $ 448 160 Exxon Corporation..................................... 11,850 240 Mobil Corporation..................................... 23,160 250 Schlumberger Limited.................................. 15,141 240 Texaco Inc................................... ........ 14,729 ----------- 65,328 ----------- FINANCE: 16.45% 150 American General Corporation.......................... 11,128 295 American International Group, Inc..................... 30,367 308 Associates First Capital Corporation.................. 11,242 340 Citigroup Inc. *...................................... 18,403 160 Comerica Incorporated................................. 9,510 210 Commerce Bancshares, Inc.............................. 8,138 310 Fannie Mae............................................ 21,933 170 MGIC Investment Corporation........................... 10,158 340 Radian Group Inc...................................... 17,956 140 The Chase Manhattan Bank.............................. 12,233 155 The PMI Group, Inc.................................... 8,040 ----------- 159,106 ----------- HEALTHCARE: 13.86% 346 Bristol-Myers Squibb Company.......................... 26,577 220 Eli Lilly and Company................................. 15,153 250 Guidant Corporation................................... 12,344 200 Johnson & Johnson..................................... 20,950 440 Medtronic, Inc........................................ 15,235 333 Merck & Co, Inc....................................... 26,494 350 Schering-Plough Corporation........................... 17,325 ----------- 134,078 ----------- 5 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND SCHEDULE OF INVESTMENTS AT OCTOBER 31, 1999 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- TECHNOLOGY: 21.71% 280 Altera Corporation *.................................. $ 13,615 190 Applied Materials, Inc. *............................. 17,064 321 Cisco Systems, Inc. *................................. 23,754 209 Computer Sciences Corporation *....................... 14,356 300 Fiserv, Inc. *........................................ 9,600 310 Intel Corporation..................................... 24,006 233 International Business Machines Corporation............................. 22,921 150 Linear Technology Corporation......................... 10,491 180 Maxim Integrated Products, Inc *...................... 14,209 365 Microsoft Corporation *............................... 33,785 290 Teradyne, Inc. *...................................... 11,165 190 Xilinx, Inc. *....................................... 14,939 ----------- 209,905 ----------- UTILITY: 4.95% 374 BellSouth Corporation................................. 16,830 190 MCI WorldCom Incorporated *........................... 16,304 290 SBC Communications Inc................................ 14,772 ----------- 47,906 ----------- Total Comon Stocks (Cost $894,112).................... 950,228 6 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND SCHEDULE OF INVESTMENTS AT OCTOBER 31, 1999 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Principal Amount Short-Term Investments: 7.60% - -------------------------------------------------------------------------------- $73,541 Firstar Stellar Treasury Fund (Cost $73,541)................................... 73,541 Total Investments in Securities (Cost $967,653): 105.86%......................... 1,023,769 Liabilities in excess of ----------- Other Assets: (5.86)%............................ (56,714) ----------- TOTAL NET ASSETS: 100.00% ............................ $ 967,055 =========== *Non-income producing security. +At October 31, 1999, the cost of securities for Federal tax purposes was the same as the basis for finacial reporting. Unrealized appreciation and depreciation of securitites were as follows: Gross unrealized appreciation.................................... $ 74,119 Gross unrealized depreciation.................................... (18,004) ----------- Net unrealized appreciation............................. $ 56,115 =========== 7 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND STATEMENT OF ASSETS AND LIABILITIES AT OCTOBER 31, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (identified cost $967,654) ......................... $ 1,023,769 Receivables Due from Advisor ................................... 7,406 Receivable for Securities Sold ..................... 1,377 Dividends and interest ............................. 662 Prepaid expenses ....................................... 1,144 ----------- Total assets .................................. 1,034,358 ----------- LIABILITIES Payables Securities Purchased ............................... 51,866 Accrued expenses ....................................... 15,437 ----------- Total liabilities ............................. 67,303 ----------- NET ASSETS .................................................... $ 967,055 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($967,055 / 90,175 shares outstanding; unlimited number of shares [par value $0.01] authorized) ..................... $ 10.72 =========== COMPONENTS OF NET ASSETS Paid-in capital ........................................ $ 912,047 Net investment income .................................. 393 Accumulated net realized loss on investments ........... (1,500) Net unrealized appreciation on investments ............. 56,115 ----------- Net assets ......................................... $ 967,055 =========== See accompanying Notes to Financial Statements. 8 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND STATEMENT OF OPERATIONS - FOR THE PERIOD FROM JUNE 2, 1999* THROUGH OCTOBER 31, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends ........................................... $ 1,697 Interest ............................................ 553 -------- Total income .................................. 2,250 -------- Expenses Organization expense ................................ 30,000 Administration fee .................................. 12,246 Professional fees ................................... 7,475 Fund accounting fees ................................ 7,349 Transfer agent fees ................................. 6,941 Custodian fees ...................................... 2,858 Reports to shareholders ............................. 1,225 Trustees' fees ...................................... 1,021 Other ............................................... 1,002 Advisory fees ....................................... 977 Registration fees ................................... 326 -------- Total expenses ...................................... 71,420 Less, advisory fee waiver and absorption (Note 3) ....................... (69,563) -------- Net expenses ................................... 1,857 -------- Net investment income ..................... 393 -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss from security transactions ............. (1,500) Net change in unrealized appreciation on investments ......................................... 56,115 -------- Net realized and unrealized gain on investments .................................... 54,615 -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $ 55,008 ======== * Commencement of operations. See accompanying Notes to Financial Statements. 9 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- June 2, 1999* through October 31, 1999+ ----------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income .................................. $ 393 Net realized loss from security transactions ........... (1,500) Net change in unrealized appreciation on investments ... 56,115 --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................. 55,008 --------- CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from net change in outstanding shares (a) ............................ 912,047 --------- TOTAL INCREASE IN NET ASSETS ...................... 967,055 --------- NET ASSETS Beginning of period .......................................... -- --------- END OF PERIOD ................................................ $ 967,055 ========= (a) A summary of capital shares transactions is as follows: June 2, 1999* through October 31, 1999+ Shares Paid in Capital ------ --------------- Shares sold ....................................... 90,175 $ 912,047 Shares redeemed.................................... -- -- ------ --------- Net increase....................................... 90,175 $ 912,047 ====== ========= * Commencement of operations. + Unaudited. 10 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND FINANCIAL HIGHLIGHTS FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD - -------------------------------------------------------------------------------- June 2, 1999* through October 31, 1999+ ----------------- Net asset value, beginning of period...................... $10.00 Income from investment operations: Net investment income............................... 0.72 ------ Total from investment operations.......................... 0.72 ------ Net asset value, end of period............................ $10.72 ====== Total return.............................................. 7.20%++ Ratios/supplemental data: Net assets, end of period (000)........................... $ 967 Ratio of expenses to average net assets: Before expense reimbursement........................ 35.00%+ After expense reimbursement......................... 0.95%+ Ratio of net investment income to average net assets: After expense reimbursement......................... 0.19%+ Portfolio turnover rate................................... 14.27% * Commencement of operations. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. 11 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND NOTES TO FINANCIAL STATEMENTS AT OCTOBER 31, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The National Asset Management Core Equity Fund (the "Fund") is a series of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund began operations on June 2, 1999. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with generally accepted accounting principles. A. SECURITY VALUATION: The Fund's investments are carried at fair value. Securities that are primarily traded on a national securities exchange shall be valued at the last sale price on the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices. Securities primarily traded in the NASDAQ National Market System for which market quotations are readily available shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Over-the-counter ("OTC") securities which are not traded in the NASDAQ National Market System shall be valued at the most recent trade price. Securities for which market quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value. B. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. SECURITY TRANSACTIONS, DIVIDENDS AND DISTRIBUTIONS: Security transactions are accounted for on the trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date. 12 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Realized gains and losses on securities sold are determined on the basis of identified cost. Discounts and premiums on securities purchased are amortized over the life of the respective securities. D. USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the period ended October 31, 1999, National Asset Management Corporation (the "Advisor") provided the Fund with investment management services under an Investment Advisory Agreement. The Advisor furnished all investment advice, office space, facilities, and provides most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 0.50% based upon the average daily net assets of the Fund. For the period ended October 31, 1999, the Fund incurred $977 in Advisory Fees. The Fund is responsible for its own operating expenses. The Advisor has agreed to reduce fees payable to it by the Fund and to pay Fund operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 0.95% of average net assets (the "expense cap"). Any such reductions made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the applicable limitation on Fund expenses. The Advisor is permitted to be reimbursed only for fee reductions and expense payments made in the previous three fiscal years, but is permitted to look back five years and four years, respectively, during the initial six years and seventh year of the Fund's operations. Any such reimbursement is also contingent upon Board of Trustees review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to 13 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- the Fund's payment of current ordinary operating expenses. For the period ended October 31, 1999, the Advisor reduced its fees and absorbed Fund expenses in the amount of $69,563; no amounts were reimbursed to the Advisor. Investment Company Administration, LLC (the "Administrator") acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rate: Fund asset level Fee rate ---------------- -------- Less than $15 million $30,000 $15 million to less than $50 million 0.20% of average daily net assets $50 million to less than $50 million 0.15% of average daily net assets $100 million to less than $150 million 0.10% of average daily net assets More than $150 million 0.05% of average daily net assets First Fund Distributors, Inc. (the "Distributor") acts as the Fund's principal underwriter in a continuous public offering of the Fund's shares. The Distributor is an affiliate of the Administrator. Certain officers of the Fund are also officers and/or directors of the Administrator and the Distributor. NOTE 4 - PURCHASES AND SALES OF SECURITIES For the period ended October 31, 1999, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $959,698 and $65,500, respectively. 14 NATIONAL ASSET MANAGEMENT CORE EQUITY FUND CHANGE IN INDEPENDENT ACCOUNTANT On August 27, 1999, McGladrey & Pullen, LLP ("McGladrey") resigned as independent auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP ("PwC") to acquire McGladrey's investment company practice. The McGladrey partners and professionals serving the Fund at the time of the acquisition joined PwC. On September 10, 1999, the Fund, with the approval of its Board of Trustees and its Audit Committee, engaged PwC as its independent auditors. 15 ADVISOR National Asset Management Corporation 101 South Fifth Street Louisville, KY 40202 DISTRIBUTOR First Fund Distributors, Inc. 4455 E. Camelback Rd., Ste. 261E Phoenix, AZ 85018 CUSTODIAN Firstar Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT American Data Services, Inc. P.O. Box 5536 Hauppauge, NY 11788-0132 (800) 385-7003 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP 345 California Street, 29th Floor San Francisco, CA 94104 -----END PRIVACY-ENHANCED MESSAGE-----