-----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, HmDaorPBafFh05xlQq7plbj/iyhMqSPrWuUjmOcmICzM7OVc/zhisbRktC342OXC rtqzU2Psht5JDZdtIBEpNg== 0000950147-00-000142.txt : 20000204 0000950147-00-000142.hdr.sgml : 20000204 ACCESSION NUMBER: 0000950147-00-000142 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991130 FILED AS OF DATE: 20000203 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: 521503 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 ANNUAL REPORT FOR YEAR ENDING 11-30-99 HOWARD EQUITY FUND ANNUAL REPORT NOVEMBER 30, 1999 HOWARD EQUITY FUND ANNUAL REPORT NOVEMBER 30, 1999 Dear Fellow Shareholder: We are pleased to report that the Howard Equity Fund (the "Fund") outperformed the S&P 500 Index for the period ending November 30th. For the fiscal period December 29, 1998 (commencement of operations) through November 30, 1999, the Fund appreciated 20.40% as compared to a 14.31% increase in the S&P 500 Index -- an advantage of nearly 6 percentage points. The Fund also performed favorably as compared to the Lipper Multi-Cap Core Fund Index which appreciated 12.43% during the same period. During the past year, the recovering economies of the Pacific Rim and Europe combined with an increasingly vigorous domestic economy to accelerate economic growth. To best capitalize on this increase in economic activity, the Fund emphasized investments in selected cyclically sensitive businesses. While our investments in financial services, healthcare and consumer non-durables have been rewarding, we continue to under-weight these areas in order to take advantage of what we believe to be more attractive valuations in technology, telecommunications, energy services, industrial manufacturing and consumer/industrial cyclicals. The Fund did lag the indices in the early part of the year when extremely narrow market breadth continued the focus on companies that would benefit from slower economic growth. However, the investment landscape began to change as the first quarter drew to a close. As strategists and portfolio managers began to embrace the concept of accelerating economic growth, the previously "unattractive" sectors of the marketplace began to appreciate significantly. The strength in the beneficiaries of economic growth concurrent with the rotational correction of the prior equity leadership will cause the equity market to remain volatile for the next several months. The more cyclically sensitive Dow Jones Industrials should remain in a trading range between 12,000 and 10,000, while the S&P Index (which includes a greater weighting of the prior leadership) might have a trading range with a modest downward bias between 1,450 and 1,200. In order to take advantage of investment opportunities in this environment, we increased cash holdings as a percentage of the Fund's assets to more than 20% at December 31, 1999. The sharp market decline during the first three trading days of the year provided an excellent opportunity to increase our equity exposure once again. Assets have increased significantly over the past year which now allows the Fund to be followed on financial web sites or quote machines on a daily basis under its new ticker symbol (HEFGX). /s/ Anthony Orphanos Anthony Orphanos Chief Investment Officer & Portfolio Manager HOWARD EQUITY FUND Footnotes: Performance figures of the Fund and indexes referenced represent past performance and are not indicative of future performance of the Fund or the indexes. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Indexes do not incur expenses and are not available for investment. The S&P Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. The Lipper Multi-Cap Core Fund Index is comprised of funds that invest in a variety of market capitalization ranges, without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Core funds will normally have an average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified multi-cap equity funds universe average. The Fund's annual total return for the period December 29, 1998 (inception) to November 30, 1999 was 20.40%. The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. Member NASD. 2 HOWARD EQUITY FUND Comparison of the change in value of a $10,000 investment in the Howard Equity Fund versus the S & P 500 Composite Stock Price Index and the Lipper Multi-Cap Core Fund Index. Total Return Since inception (12/29/98).............. 20.40% S & P 500 Composite Lipper Multi-Cap Howard Equity Fund Stock Price Index Core Fund Index ------------------ ----------------- --------------- 29-Dec-98 $10,000 $10,000 $10,000 31-Dec-98 $ 9,940 $10,002 $10,000 31-Jan-99 $10,120 $10,423 $10,332 28-Feb-99 $10,230 $10,093 $ 9,934 31-Mar-99 $10,100 $10,497 $10,247 30-Apr-99 $10,600 $10,906 $10,665 31-May-99 $10,770 $10,643 $10,546 30-Jun-99 $11,370 $11,234 $11,063 31-Jul-99 $11,230 $10,885 $10,820 31-Aug-99 $11,450 $10,830 $10,631 30-Sep-99 $11,260 $10,532 $10,366 31-Oct-99 $11,100 $11,206 $10,892 30-Nov-99 $12,040 $11,431 $11,243 Past performance is not predictive of future performance. 3 HOWARD EQUITY FUND SCHEDULE OF INVESTMENTS AT NOVEMBER 30, 1999 - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 66.51% Market Value - -------------------------------------------------------------------------------- AEROSPACE/DEFENSE - EQUIPMENT: 1.13% 2,000 United Technologies Corporation....................... $ 113,000 ----------- AUCTION HOUSE/ART DEALER: 2.03% 6,500 Sotheby's Holdings, Inc., Class A..................... 202,719 ----------- CELLULAR TELECOM: 1.98% 2,000 Nextel Communications, Inc.*.......................... 198,250 ----------- COMPUTER SOFTWARE: 3.74% 5,500 Cambridge Technology Partners (Massachusetts), Inc.*.. 79,063 13,000 Parametric Technology Corporation*.................... 294,937 ----------- 374,000 ----------- COMPUTERS - HARDWARE: 1.90% 2,000 Hewlett-Packard Company............................... 189,750 ----------- CONSULTING SERVICES: 1.69% 7,000 Comdisco, Inc......................................... 168,875 ----------- DIVERSIFIED MANUFACTURING OPERATIONS: 0.96% 1,000 Minnesota Mining and Manufacturing Company............ 95,563 ----------- ELECTRONIC COMPONENTS - SEMICONDUCTOR: 5.79% 3,800 Texas Instruments, Incorporated....................... 365,037 5,500 Watkins-Johnson Company............................... 213,469 ----------- 578,506 ----------- INSTRUMENTS - SCIENTIFIC: 1.23% 3,000 PerkinElmer, Inc...................................... 123,375 ----------- INTERNET CONTENT: 1.21% 2,500 Security First Technologies Corporation*.............. 120,625 ----------- 4 HOWARD EQUITY FUND SCHEDULE OF INVESTMENTS AT NOVEMBER 30, 1999, CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- INTERNET SOFTWARE: 5.56% 4,000 At Home Corporation*.................................. $ 194,000 ----------- 1,300 Covad Communications Group, Inc....................... 67,519 8,000 Open Market, Inc.*.................................... 294,500 ----------- 556,019 ----------- MACHINERY - CONSTRUCTION & MINING: 1.16% 2,500 Caterpillar Inc....................................... 115,937 ----------- MEDICAL - BIOMEDICAL/GENOMICS: 4.11% 8,000 Lynx Therapeutics, Inc.*............................ 93,000 2,000 Millennium Pharmaceuticals, Inc.*..................... 194,687 2,000 PE Corporation - Celera Genomics Group Stock*......... 122,500 ----------- 410,187 ----------- MEDICAL DRUGS: 0.34% 2,000 Pharmacopeia, Inc.*................................... 34,500 ----------- MONEY CENTER BANKS: 1.32% 1,000 J.P. Morgan & Co., Incorporated....................... 131,500 ----------- MULTI-LINE INSURANCE: 0.78% 2,000 CNA Financial Corporation*............................ 78,000 ----------- NETWORK SOFTWARE: 11.10% 55,000 NetSpeak Corporation*................................. 893,750 11,000 Novell, Inc.*......................................... 215,188 ----------- 1,108,938 ----------- OIL - FIELD MACHINERY & EQUIPMENT: 9.09% 10,000 Cooper Cameron Corporation*........................... 428,750 3,000 Halliburton Company................................... 116,062 34,000 Varco International, Inc.............................. 363,375 ----------- 908,187 ----------- OIL - FIELD SERVICES: 2.79% 8,000 BJ Services Company*.................................. 279,000 ----------- 5 HOWARD EQUITY FUND SCHEDULE OF INVESTMENTS AT NOVEMBER 30, 1999, CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- OIL & GAS DRILLING: 2.26% 8,000 Transocean Offshore Inc............................... $ 225,500 ----------- PIPELINES: 0.68% 2,000 The Williams Companies, Inc........................... 67,500 ----------- STEEL PRODUCERS: 1.31% 21,000 Bethlehem Steel Corporation*.......................... 131,250 ----------- TELECOM SERVICES: 1.55% 819 Global Crossing Ltd.*................................. 35,729 3,500 Qwest Communications International Inc.*.............. 119,656 ----------- 155,385 ----------- TELEPHONE - LONG DISTANCE: 2.80% 5,000 AT&T Corp............................................. 279,375 ----------- Total Common Stocks (Cost $5,614,910): 66.51%......... 6,645,941 ----------- Principal Amount SHORT-TERM INVESTMENTS: 36.89% - -------------------------------------------------------------------------------- $3,685,836 Firstar Stellar Treasury Fund, 4.18% (Cost $3,685,836) .................................. 3,685,836 ----------- Total Investments in Securities (Cost $9,300,746+): 103.40%......................... 10,331,777 Liabilities in excess of Other Assets: (3.40)%........ (339,714) ----------- TOTAL NET ASSETS: 100.00% ............................ $ 9,992,063 =========== * Non-income producing security. + At November 30, 1999, the cost of securities for Federal tax purposes was the same as the basis for financial reporting. Gross unrealized appreciation and depreciation of securities on a tax basis were as follows: Gross unrealized appreciation......................... $ 1,210,497 Gross unrealized depreciation......................... (179,466) ----------- Net unrealized appreciation....................... $ 1,031,031 =========== See Notes to Financial Statements. 6 HOWARD EQUITY FUND STATEMENT OF ASSETS AND LIABILITIES AT NOVEMBER 30, 1999 - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (identified cost $9,300,746).................................. $10,331,777 Receivables Fund shares sold.............................................. 35,000 Dividends and interest ....................................... 15,968 Prepaid expenses ............................................... 301 ----------- Total assets................................................ 10,383,046 ----------- LIABILITIES Payables Due to Investment Advisor..................................... 2,781 Payable for securities purchased.............................. 353,479 Administration fees........................................... 2,466 Accrued expenses................................................ 32,257 ----------- Total liabilities........................................... 390,983 ----------- NET ASSETS ...................................................... $ 9,992,063 =========== Net asset value, offering and redemption price per share [$9,992,063/829,729 shares outstanding; unlimited number of shares (par value $0.01) authorized]......................... $12.04 =========== COMPONENTS OF NET ASSETS Paid-in capital................................................. $ 9,135,698 Undistributed net investment income............................. 3,092 Accumulated net realized loss on investments.................... (177,758) Net unrealized appreciation on investments ..................... 1,031,031 ----------- Net assets.................................................. $ 9,992,063 =========== See Notes to Financial Statements. 7 HOWARD EQUITY FUND STATEMENT OF OPERATIONS FOR THE PERIOD FROM DECEMBER 29, 1998* THROUGH NOVEMBER 30, 1999 - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends....................................................... $ 19,223 Interest........................................................ 65,929 ---------- Total income.................................................. 85,152 ---------- Expenses Advisory fees (Note 3).......................................... 41,862 Administration fee (Note 3) .................................... 27,616 Organization expense............................................ 25,000 Custodian and accounting fees................................... 20,704 Distribution Expense (Note 3) .................................. 20,931 Professional fees............................................... 17,654 Transfer agent fees............................................. 12,851 Reports to shareholders......................................... 7,699 Registration fees............................................... 4,476 Other .......................................................... 2,684 Trustees' fees.................................................. 2,635 Insurance expense............................................... 736 ---------- Total expenses................................................ 184,848 Less: fee waivers and absorption (Note 3)..................... (102,788) ---------- Net expenses.................................................. 82,060 ---------- Net investment income......................................... 3,092 ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss from security transactions.................. (177,758) Net change in unrealized appreciation on investments.......... 1,031,031 ---------- Net realized and unrealized gain on investments............. 853,273 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $ 856,365 ========== * Commencement of operations. See Notes to Financial Statements. 8 HOWARD EQUITY FUND STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- December 29, 1998* through November 30, 1999 ----------------- Increase (DECREASE) in net assets from OPERATIONS Net investment income......................................... $ 3,092 Net realized loss from security transactions.................. (177,758) Net change in unrealized appreciation on investments.......... 1,031,031 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....... 856,365 ---------- CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from net change in outstanding shares (a)............................ 9,135,698 ---------- TOTAL INCREASE IN NET ASSETS ............................... 9,992,063 NET ASSETS Beginning of period............................................. -- ---------- END OF PERIOD .................................................. $9,992,063 ========== (a) A summary of capital shares transactions is as follows: December 29, 1998* through November 30, 1999 ------------------------------- Shares Paid In Capital ------ --------------- Shares sold ............................... 842,974 $9,277,834 Shares redeemed............................ (13,245) (142,136) ------- ---------- Net increase............................... 829,729 $9,135,698 ======= ========== *Commencement of operations. See Notes to Financial Statements. 9 HOWARD EQUITY FUND FINANCIAL HIGHLIGHTS FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD - -------------------------------------------------------------------------------- December 29, 1998* through November 30, 1999 ----------------- Net asset value, beginning of period......................... $10.00 ------ Income from investment operations: Net realized and unrealized gain on investments........ 2.04 ------ Total from investment operations............................. 2.04 ------ Net asset value, end of period............................... $12.04 ====== Total return................................................. 20.40%++ Ratios/supplemental data: Net assets, end of period (000).............................. $9,992 Ratio of expenses to average net assets: Before expense reimbursement............................... 4.39%+ After expense reimbursement................................ 1.95%+ Ratio of net investment income to average net assets: After expense reimbursement................................ 0.07%+ Portfolio turnover rate...................................... 211.31% * Commencement of operations. + Annualized. ++ Not Annualized. See Notes to Financial Statements. 10 HOWARD EQUITY FUND NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Howard Equity Fund (the "Fund") is a series of shares of beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund began operations on December 29, 1998. The investment objective of the Fund is to seek growth of capital. The Fund attempts to achieve its objective by investing primarily in equity securities of large to mid capitalization companies. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with 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. Realized gains and losses on securities sold are determined on the basis of identified cost. 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 November 30, 1999, Howard Capital Management (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. 11 HOWARD EQUITY FUND NOTES TO FINANCIAL STATEMENTS, Continued - -------------------------------------------------------------------------------- As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 1.00% based upon the average daily net assets of the Fund. For the period ended November 30, 1999, the Fund incurred $41,862 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 1.95% 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 the Fund's payment of current ordinary operating expenses. For the period ended November 30, 1999, the Advisor reduced its fees and absorbed Fund expenses in the amount of $74,624; no amounts were reimbursed to the Advisor. Investment Company Administration Corporation (the "Administrator") acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the following annual rate: Fund asset level Fee rate ---------------- -------- Less than $15 million $30,000 $15 million to less than $50 million 0.20% of average daily net assets $50 million to less than $100 million 0.15% of average daily net assets $100 million to less than $150 million 0.10% of average daily net assets More than $150 million 0.05% of average daily net assets From February 7, 1999 through May 2, 1999, the Administrator voluntarily waived its fee in the amount of $7,233. The Fund has 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 0.50% of the Fund's average daily net assets annually. The expenses covered by the Plan may include the cost of preparing and distributing prospectuses and other sales material, advertising and public relations expenses, payments to financial intermediaries and compensation of personnel involved in selling shares of the Fund. Payments made pursuant to the Plan will represent compensation for distribution and service activities, not reimbursements for specific expenses incurred. Pursuant to a distribution 12 HOWARD EQUITY FUND NOTES TO FINANCIAL STATEMENTS, Continued - -------------------------------------------------------------------------------- coordination agreement adopted under the Plan, distribution fees are paid to the Advisor as "Distribution Coordinator." Fees totaling $20,931 were waived by the Advisor, as Distribution Coordinator, for the period from December 29, 1998 to November 30, 1999. The Plan allows excess distribution expenses to be carried forward for the following three fiscal years. 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 November 30, 1999, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $11,406,465 and $5,613,797, respectively. At November 30, 1999, the Fund had tax basis capital losses of approximately $177,000 which may be carried over to offset future capital gains. Such losses expire November 30, 2007. 13 INDEPENDENT AUDITOR'S REPORT - -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Howard Equity Fund, series of Advisors Series Trust (the "Fund") at November 30, 1999, and the results of its operations, the changes in its net assets and the financial highlights for the period from December 29, 1998 (commencement of operations) through November 30, 1999, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at November 30, 1999 by correspondence with the custodian and brokers, provides a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP New York, New York December 30, 1999 14 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. Since this change occurred during the Fund's initial year of operation, McGladrey did not report on the Fund's financial statements. There were no disagreements with McGladrey on any matter of accounting principle or practices, financial statement disclosure, or auditing scope or procedure. 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 HOWARD CAPITAL MANAGEMENT ADVISOR HOWARD CAPITAL MANAGEMENT 45 ROCKEFELLER PLAZA SUITE 1440 NEW YORK, NY 10111 (212) 586-4800 DISTRIBUTOR FIRST FUND DISTRIBUTORS, INC. 4455 EAST CAMELBACK ROAD SUITE 261E PHOENIX, AZ 85018 CUSTODIAN FIRSTAR BANK, N.A. 425 WALNUT STREET CINCINNATI, OH 45202 SHAREHOLDER SERVICING AGENT AMERICAN DATA SERVICES, INC. 150 MOTOR PARKWAY SUITE 109 HAUPPAUGE, NY 11788-0132 (888) 229-2105 AUDITORS PRICEWATERHOUSECOOPERS LLP 1177 AVENUE OF THE AMERICAS NEW YORK, NY 10036 LEGAL COUNSEL PAUL, HASTINGS, JANOFSKY & WALKER LLP 345 CALIFORNIA STREET SAN FRANCISCO, CA 94014 -----END PRIVACY-ENHANCED MESSAGE-----