-----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, A258rWpl+k3f1LgwTaHrWU8tHrBX9F4i/WkC9nZ4AbZybo3rDGM1c8OAWJfe5vGE 4XEZsCu5A/Ey9URitAB7XA== /in/edgar/work/20000710/0000950147-00-001027/0000950147-00-001027.txt : 20000712 0000950147-00-001027.hdr.sgml : 20000712 ACCESSION NUMBER: 0000950147-00-001027 CONFORMED SUBMISSION TYPE: N-30D/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000430 FILED AS OF DATE: 20000710 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/A SEC ACT: SEC FILE NUMBER: 811-07959 FILM NUMBER: 670706 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/A 1 0001.txt SEMI-ANNUAL REPORT DATED 4/30/00 [LOGO] EDGAR LOMAX VALUE FUND SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 2000 EDGAR LOMAX VALUE FUND Semi-Annual Report April 30, 2000 Dear Fellow Shareholder: As your mutual fund steadily develops a track record--now over two and one-half years--we are pleased to keep you updated on its performance. From its opening on December 12, 1997 through April 30, 2000, the Edgar Lomax Value Fund's average annual total return was 5.18%. Despite the record performances of many of the stock market indexes over the last few years, the fact is, not all stocks--and certainly not all styles of investing (e.g., "growth" and "value" investing)--have been as profitable as the indexes would indicate. Specifically, the S&P 500 index just completed its unprecedented sixth straight year in which its "growth" stocks (measured by the S&P/Barra Growth subindex) outperformed its "value" stocks (measured by the S&P/Barra Value subindex). Even among the "growth" names, though, a significant portion of the returns came from just a few very large companies such as Microsoft and Cisco. What are investors, particularly "value" investors, to do in light of the unusual stock market environment? Simply, take advantage of the opportunity it presents. Remember that long-term equity returns come ONLY from the actual earnings of companies one invests in, as opposed to those earnings one projects or hopes will occur. The profitable, financially strong companies we have purchased on your behalf have grown tremendously on an internal basis, while their market prices have increased only modestly. This has given us a rare opportunity to buy these stocks at "fire sale" prices relative to what we believe are their true values. Consequently, their potential for strong future outperformance has never been better. As your investment manager, we remain committed to investing based on fundamental facts. You can rest assured that we will not risk your money chasing the latest "hot" stock simply because its price is increasing quickly. We appreciate your continuing confidence in our investment program and promise you our best efforts. Cordially, /s/ Randall R. Eley Randall R. Eley EDGAR LOMAX VALUE FUND Footnotes: Performance figures of the Fund referenced represent past performance and are not indicative of future performance. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. The Fund's average annual total return for the year ended March 31, 2000 was - -2.04% and since inception (December 12, 1997) through March 31, 2000 was 3.67%. The Fund is distributed by First Fund Distributors, Inc., Phoenix 2 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED) - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 99.34% Market Value - -------------------------------------------------------------------------------- AEROSPACE/DEFENSE: 3.59% 2,300 General Dynamics Corporation.......................... $ 134,550 ----------- AUTOMOBILES: 6.30% 2,525 General Motors Corporation............................ 236,403 ----------- BANKS - MONEY CENTER: 4.28% 1,250 J.P. Morgan & Co., Incorporated....................... 160,469 ----------- CHEMICALS: 6.50% 2,938 E. I. du Pont de Nemours and Company.................. 139,371 925 The Dow Chemical Company.............................. 104,525 ----------- 243,896 ----------- CHEMICALS - SPECIALTY: 3.03% 3,300 International Flavors & Fragrances, Inc............... 113,644 ----------- ELECTRIC COMPANIES: 7.16% 3,775 American Electric Power Company, Inc.................. 138,259 5,225 The Southern Company.................................. 130,298 ----------- 268,557 ----------- ELECTRICAL EQUIPMENT: 5.96% 2,165 Honeywell, Inc........................................ 121,240 2,600 Rockwell International Corporation.................... 102,375 ----------- 223,615 ----------- ELECTRONICS - DEFENSE: 3.06% 5,000 Raytheon Company, Class A............................. 114,688 ----------- INSURANCE - LIFE/HEALTH: 2.39% 1,600 American General Corporation.......................... 89,600 ----------- INSURANCE - MULTI-LINE: 6.86% 1,525 CIGNA Corporation..................................... 121,619 2,600 The Hartford Financial Services Group, Inc............ 135,688 ----------- 257,307 ----------- 3 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- LEISURE TIME - PRODUCTS: 2.81% 5,500 Brunswick Corporation................................. $ 105,531 ----------- MACHINERY - DIVERSIFIED: 4.42% 4,200 Caterpillar, Inc...................................... 165,638 ----------- MANUFACTURING - DIVERSIFIED: 4.61% 2,000 Minnesota Mining and Manufacturing Company............ 173,000 ----------- NATURAL GAS: 4.68% 3,500 The Coastal Corporation............................... 175,656 ----------- OIL - INTERNATIONAL INTEGRATED: 2.80% 1,350 Exxon Mobil Corporation............................... 104,878 ----------- PAPER & FOREST PRODUCTS: 2.65% 2,700 International Paper Company........................... 99,225 ----------- PHOTOGRAPHY/IMAGING: 3.54% 2,375 Eastman Kodak Company................................. 132,852 ----------- RAILROADS: 6.10% 5,100 Burlington Northern Sante Fe Corporation.............. 123,038 6,000 Norfolk Southern Corporation.......................... 105,750 ----------- 228,788 ----------- RETAIL - GENERAL MERCHANDISE: 2.79% 3,800 The May Department Stores Company..................... 104,500 ----------- RETAIL - SPECIALTY/RETAIL: 3.43% 2,850 The Limited, Inc...................................... 128,784 ----------- TELECOMMUNICATIONS - LONG DISTANCE: 1.13% 900 AT&T Corporation...................................... 42,019 ----------- 4 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 2000 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- TELEPHONE: 7.25% 2,000 Bell Atlantic Corporation............................. $ 118,500 3,500 SBC Communications, Inc............................... 153,343 ----------- 271,843 ----------- TOBACCO: 4.00% 6,850 Philip Morris Companies, Inc.......................... 149,844 ----------- Total Common Stocks (Cost $3,833,791+): 99.34%........ 3,725,287 ----------- Principal Amount SHORT-TERM INVESTMENTS: 5.10% - -------------------------------------------------------------------------------- $191,151 Firstar Stellar Treasury Fund (Cost $191,151)......... 191,151 ----------- Total Investments in Securities (Cost $4,024,942): 104.44%.......................... 3,916,438 Liabilities in Excess of Other Assets: (4.44%)........ (166,601) ----------- TOTAL NET ASSETS: 100.00% ............................ $ 3,749,837 =========== + Gross unrealized appreciation and depreciation of securities is as follows: Gross unrealized appreciation......................... $ 319,328 Gross unrealized depreciation......................... (427,832) ----------- Net unrealized depreciation........................... $ (108,504) =========== See accompanying Notes to Financial Statements. 5 EDGAR LOMAX VALUE FUND STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 2000 (UNAUDITED) - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (identified cost of $4,024,942) ....................... $ 3,916,438 Receivables Due from Advisor ...................................... 10,388 Dividends and interest ................................ 3,182 Fund shares purchased ................................. 100 Prepaid expenses ........................................ 1,316 ----------- Total assets ........................................ 3,931,424 ----------- LIABILITIES Payables Securities purchased .................................. 156,733 Accrued expenses ........................................ 24,854 ----------- Total liabilities ................................... 181,587 ----------- NET ASSETS ................................................ $ 3,749,837 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($3,749,837 / 358,592 shares outstanding; unlimited number of shares [par value $0.01] authorized) ............... $ 10.46 =========== COMPONENTS OF NET ASSETS Paid-in capital ......................................... $ 3,757,235 Net investment income ................................... 19,913 Accumulated net realized gain on investments ............ 81,193 Net unrealized depreciation on investments .............. (108,504) ----------- Net assets .......................................... $ 3,749,837 =========== See accompanying Notes to Financial Statements. 6 EDGAR LOMAX VALUE FUND STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends .................................................. $ 50,697 Interest ................................................... 1,191 --------- Total income ......................................... 51,888 --------- Expenses Advisory fees (Note 3) ..................................... 18,239 Administration fees (Note 3) ............................... 14,794 Professional fees .......................................... 9,842 Fund accounting fees ....................................... 8,878 Transfer agent fees ........................................ 6,658 Reports to shareholders .................................... 1,480 Custody fees ............................................... 2,761 Trustee fees ............................................... 1,480 Other ...................................................... 1,604 Registration fees .......................................... 1,300 Insurance expense .......................................... 394 --------- Total expenses ........................................... 67,430 Less, advisory fee waiver and absorption (Note 3) ........ (35,455) --------- Net expenses ............................................. 31,975 --------- NET INVESTMENT INCOME .................................. 19,913 --------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain from security transactions ................. 93,390 Net change in unrealized depreciation on investments ......... (367,268) --------- Net realized and unrealized loss on investments ............ (273,878) --------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................. $(253,965) ========= See accompanying Notes to Financial Statements. 7 EDGAR LOMAX VALUE FUND STATEMENT OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Six Months Year Ended Ended April 30, 2000# October 31, 1999 --------------- ---------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ........................... $ 19,913 $ 30,291 Net realized gain on security transactions ...... 93,390 217,244 Net change in unrealized (depreciation)/ appreciation on investments ................... (367,268) 91,218 ----------- ----------- NET (DECREASE)/INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ (253,965) 338,753 ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS From net investment income ...................... (36,575) (21,112) From net realized gains ......................... (218,064) (12,685) ----------- ----------- Total dividends and distibution to shareholders............................. (254,639) (33,797) ----------- ----------- CAPITAL SHARE TRANSACTIONS Net (decrease)/increase in net assets derived from net change in outstanding shares (a) .................................... (8,137) 667,788 ----------- ----------- TOTAL (DECREASE)/INCREASE IN NET ASSETS.... (516,741) 972,744 ----------- ----------- NET ASSETS Beginning of period ............................... 4,266,578 3,293,834 ----------- ----------- END OF PERIOD ..................................... $ 3,749,837 $ 4,266,578 =========== ===========
(a) A summary of capital shares transactions is as follows:
Six Months Year Ended Ended April 30, 2000# October 31, 1999 ------------------------ ------------------------- Shares Paid in Capital Shares Paid in Capital ------ --------------- ------ --------------- Shares sold ..................... 22,172 $ 240,140 69,273 $ 835,121 Shares issued on reinvestments of distributions .............. 4,763 51,488 782 8,441 Shares redeemed ................. (28,431) (299,765) (15,423) (175,774) ------- --------- ------- --------- Net (decrease)/increase ......... (1,496) $ (8,137) 54,632 $ 667,788 ======= ========= ======= =========
- ---------- # Unaudited. See accompanying Notes to Financial Statements. 8 EDGAR LOMAX VALUE FUND FINANCIAL HIGHLIGHTS FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD - --------------------------------------------------------------------------------
Six Months Year December 12, 1997* Ended Ended through April 30, 2000# October 31, 1999 October 31, 1998 --------------- ---------------- ---------------- Net asset value, beginning of period ............. $ 11.85 $ 10.78 $ 10.00 --------- --------- --------- Income from investment operations: Net investment income .......................... 0.02 0.08 0.07 Net realized and unrealized (loss)/gain on investments ................................ (0.70) 1.10 0.72 --------- --------- --------- Total from investment operations ................. (0.68) 1.18 0.79 --------- --------- --------- Less distributions: From net investment income ..................... (0.10) (0.07) (0.01) From net realized gains ........................ (0.61) (0.04) 0.00 --------- --------- --------- Total distributions .............................. (0.71) (0.11) (0.01) --------- --------- --------- Net asset value, end of period ................... $ 10.46 $ 11.85 $ 10.78 ========= ========= ========= TOTAL RETURN ..................................... (5.89%)++ 11.05% 7.89%++ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) ............ $ 3,750 $ 4,267 $ 3,294 Ratio of expenses to average net assets: Before expense reimbursement ................... 3.69%+ 3.63% 4.67%+ After expense reimbursement .................... 1.75%+ 1.75% 1.75%+ Ratio of net investment/(loss) to average net assets: After expense reimbursement .................... (1.66)%+ 0.81% 0.81%+ Portfolio turnover rate .......................... 43.33% 41.85% 32.71%
- ---------- * Commencement of operations. # Unaudited. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. 9 EDGAR LOMAX VALUE FUND NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 2000 (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Edgar Lomax Value 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's investment objective is to seek growth of capital, with a secondary objective of providing income. The Fund began operations on December 12, 1997. 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, which are determined in accordance with income tax regulations, 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 six months ended April 30, 2000, The Edgar Lomax Company (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 10 EDGAR LOMAX VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- the annual rate of 1.00% based upon the average daily net assets of the Fund. For the six months ended April 30, 2000, the Fund incurred $18,239 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 1.75% 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 reimbursed is made. Such reimbursement may not be paid prior to the Fund's payment of current ordinary operating expenses. For the six months ended April 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in the amount of $35,455; no amounts were reimbursed to the Advisor. Investment Company Administration, L.L.C. (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 net 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 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 six months ended April 30, 2000, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $1,616,644 and $1,872,320, respectively. 11 ADVISOR The Edgar Lomax Company 6564 Loisdale Court, Suite 310 Springfield, VA 22150 www.edgarlomax.cihost.com DISTRIBUTOR First Fund Distributors, Inc. 4455 E. Camelback Rd., Ste. 261E Phoenix, AZ 85018 CUSTODIAN Firstar Institutional Custody Services 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT ICA Fund Services Corporation 4455 E. Camelback Rd., Ste. 261E Phoenix, AZ 85018 (800) 385-7003 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP 345 California Street, 29th Floor San Francisco, CA 94104 -----END PRIVACY-ENHANCED MESSAGE-----