-----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, DhYFGnqllSRx3tclNUI5cK4ET/yOrEiYQy0/bVTqJPox8/hi5HBO15/vw5FDUCrx BCqlTqT3I0yUYCQ5DwWO+w== 0000950147-01-500224.txt : 20010207 0000950147-01-500224.hdr.sgml : 20010207 ACCESSION NUMBER: 0000950147-01-500224 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001130 FILED AS OF DATE: 20010206 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: 1525793 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 e-6206.txt SEMI-ANNUAL REPORT DTD. 11/30/2000 UNITY FUND Semi-Annual Report For the six months ended November 30, 2000 UNITY FUND November 30, 2000 Dear Fellow Shareholder: It is with great pleasure that I report to you the performance of the Unity Fund at a time that may otherwise appear to be a difficult one for stock investing. Specifically, your Fund rose 15.40% (11.36% after sales charges) from June 30 to November 30 of this year while the S&P 500 index actually declined 9.17%. Furthermore, from its inception on June 30, 1998 through November 30, 2000, the Fund's average annual total return was 2.80% (1.31% after sales charges). In the first eleven months of the year 2000, we saw two very different stock market environments. Through mid-March, technology and related stocks rose in almost boundless fashion as investors eagerly bid their prices up. It was believed that these companies' recently high earnings growth rates would continue indefinitely and, thus, justify the rich prices paid for their shares. As it turns out, the S&P 500's record high reached on March 24, 2000 would mark at least a temporary end to this speculation. From that day through November 30, the S&P 500 fell 13.25%. The resulting flow of money toward less "glamorous"--but, we believe, more dependable--"Old Economy" stocks lifted your Fund to a 10.04% (6.15% after sales charges) gain over the same period. We have consistently focused on the actual business results of the companies in which we invest, rather than the movement of their stock prices. As a result, during the period that "growth" (specifically, high-tech) investing seemed the only show in town, we steadily accumulated the "bargain-priced" shares of quality companies such as Honeywell. Very recently, not only have investors in general begun to reward these undervalued companies but, in the case of Honeywell, its shares rose just over 50% in the month of October as General Electric decided to buy the company. The sharp price swings in the stock market again remind all of us of the risks of equity investing. Our philosophy is that we should minimize these fluctuations to the extent possible, while still attempting to deliver the above-average returns you expect from stock investing. In simple terms, we do this by investing in large, asset-rich (and increasingly profitable) companies at times when most investors seem to be ignoring these financial facts. Consequently, we are given a bargain opportunity in exchange for simply having the confidence to wait for stock prices to reflect corporate values as, in the long run, they most likely will. As always, we greatly appreciate your investment in the Unity Fund. You can be sure that we are committed to serving you in the best way we know how. /s/ Greg St. Etienne Greg St. Etienne Advisor Footnotes: Past performance is no guarantee of future results. Share value 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. An Index does not incur expenses and is not available for investment. UNITY FUND SCHEDULE OF INVESTMENTS at November 30, 2000 (Unaudited) - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 94.55% Market Value - -------------------------------------------------------------------------------- Aerospace/Defense: 4.22% 400 General Dynamics Corporation....................... $ 30,500 --------- Automobiles: 3.42% 500 General Motors Corporation......................... 24,750 --------- Banks - Money Center: 3.73% 200 J.P. Morgan & Co., Incorporated.................... 26,963 --------- Chemicals: 5.26% 538 E. I. du Pont de Nemours and Company............... 22,764 500 The Dow Chemical Company........................... 15,281 --------- 38,045 --------- Chemicals - Specialty: 1.55% 600 International Flavors & Fragrances, Inc............ 11,213 --------- Electric Companies: 8.16% 700 American Electric Power Company, Inc............... 32,200 850 The Southern Company............................... 26,828 --------- 59,028 --------- Electrical Equipment: 4.33% 312 Honeywell, Inc..................................... 15,210 400 Rockwell International Corporation................. 16,100 --------- 31,310 --------- Electronics - Defense: 3.58% 800 Raytheon Company, Class A.......................... 25,900 --------- Insurance - Life/Health: 3.11% 300 American General Corporation....................... 22,481 --------- Insurance - Multi-Line: 8.05% 200 CIGNA Corporation.................................. 26,350 450 The Hartford Financial Services Group, Inc......... 31,838 --------- 58,188 --------- 2 UNITY FUND SCHEDULE OF INVESTMENTS at November 30, 2000 (Unaudited), continued - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- Leisure Time - Products: 2.38% 1,000 Brunswick Corporation.............................. $ 17,188 --------- Machinery - Diversified: 3.81% 700 Caterpillar Inc.................................... 27,519 --------- Manufacturing - Diversified: 4.14% 300 Minnesota Mining and Manufacturing Company......... 29,963 --------- Natural Gas: 6.08% 600 The Coastal Corporation............................ 43,950 --------- Oil - International Integrated: 3.65% 300 Exxon Mobil Corporation............................ 26,400 --------- Paper & Forest Products: 2.34% 500 International Paper Company........................ 16,938 --------- Photography/Imaging: 2.32% 400 Eastman Kodak Company.............................. 16,800 --------- Railroads: 5.24% 900 Burlington Northern Inc............................ 22,781 1,050 Norfolk Southern Corporation....................... 15,094 --------- 37,875 --------- Retail - General Merchandise: 2.72% 700 The May Department Stores Company.................. 19,644 --------- Retail - Speciatly/Retail: 2.69% 1,000 The Limited, Inc................................... 19,438 --------- Telecommunications - Long Distance: 0.54% 200 AT&T Corp.......................................... 3,925 --------- 3 UNITY FUND SCHEDULE OF INVESTMENTS at November 30, 2000 (Unaudited), continued - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- Telephone: 6.89% 600 SBC Communications Inc............................. $ 32,963 300 Verizon Corporation................................ 16,856 --------- 49,819 --------- Tobacco: 6.34% 1,200 Philip Morris Companies Inc........................ 45,825 --------- Total Common Stocks (Cost $669,766+)............... 683,659 --------- Principal Amount SHORT-TERM INVESTMENTS: 2.80% - -------------------------------------------------------------------------------- $20,256 Firstar Stellar Treasury Fund...................... 20,256 --------- Total Investments in Securities (Cost $690,022): 97.35%.......................... 703,914 Other Assets less Liabilities: 2.65%.............. 19,147 --------- Total Net Assets: 100.00%......................... $ 723,061 ========= + Gross unrealized appreciation and deprecation of securities is as follows: Gross unrealized appreciation...................... $ 111,104 Gross unrealized depreciation...................... (97,212) --------- Net unrealized appreciation................... $ 13,892 ========= See accompanying Notes to Financial Statements. 4 UNITY FUND STATEMENT OF ASSETS AND LIABILITIES at November 30, 2000 (Unaudited) - -------------------------------------------------------------------------------- ASSETS Cash ............................................................. $ 80 Investments in securities, at value (identified cost $690,022) ... 703,914 Receivables Due from Advisor ............................................... 16,169 Dividends and interest ......................................... 3,171 Fund shares sold ............................................... 76,781 Deferred Organization Cost ....................................... 20,623 Prepaid expenses ................................................. 3,478 -------- Total assets ................................................. 824,216 -------- LIABILITIES Payables Fund shares repurchased ........................................ 81,026 Administration fees ............................................ 2,466 Accrued expenses ................................................. 17,663 -------- Total liabilities ............................................ 101,155 -------- NET ASSETS ......................................................... $723,061 ======== Class A - Net asset value and redemption price per share [$723,061 / 70,942 shares outstanding; unlimited number of shares (par value $0.01) authorized] ......... $ 10.19 ======== Class A - Offering price per share ($10.19 / 0.965) ................ $ 10.56 ======== COMPONENTS OF NET ASSETS Paid-in capital .................................................. $589,076 Undistributed net investment income .............................. 20,247 Accumulated net realized gain on investments ..................... 99,846 Net unrealized appreciation on investments ....................... 13,892 -------- Net Assets ......................................................... $723,061 ======== See accompanying Notes to Financial Statements. 5 UNITY FUND STATEMENT OF OPERATIONS - For the six months ended November 30, 2000 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends ...................................................... $ 19,156 Interest ....................................................... 2,199 -------- Total income ............................................. 21,355 -------- Expenses Administration fees (Note 3) ................................... 15,040 Custodian and accounting fees .................................. 11,031 Professional fees .............................................. 10,530 Transfer agent fees ............................................ 9,026 Advisory fees (Note 3) ......................................... 6,527 Amortization of deferred organization costs .................... 4,011 Registration fees .............................................. 3,017 Reports to shareholders ........................................ 2,507 Trustees' fees ................................................. 2,156 Other .......................................................... 1,003 Insurance expense .............................................. 937 Distribution fees (Class A) .................................... 181 Shareholder servicing fees (Class A) ........................... 90 -------- Total expenses ........................................... 66,056 Less, advisory fee waiver and absorption (Note 3) ........ (51,528) -------- Net expenses ............................................. 14,527 -------- Net investment income .............................. 6,827 -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain from security transactions ..................... 30,133 Net change in unrealized appreciation on investments ............. (8,239) -------- Net realized and unrealized gain on investments ................ 21,895 -------- Net Increase in net assets resulting from operations $ 28,722 ======== See accompanying Notes to Financial Statements. 6 UNITY FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Six Months Year Ended Ended November 30, 2000# May 31, 2000 ------------------ ------------ (DECREASE) / INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ........................................ $ 6,827 $ 13,420 Net realized gain / (loss) from security transactions ........ 30,133 (41,517) Net change in unrealized depreciatIon on investments ......... (8,239) (352,827) ----------- ----------- Net increase / (decrease) in net assets resulting from operations ......................................... 28,721 (380,924) ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS From net investment income ................................... -- (19,723) From net investment gain from security transactions .......... -- (115,019) ----------- ----------- Total dividends and distributions to shareholders ............ -- (134,742) ----------- ----------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net decrease in net assets derived from net change in outstanding shares (Class A) (a) ........................... (1,186,121) (1,659,739) ----------- ----------- Total decrease in net assets ................................. (1,157,400) (2,175,405) NET ASSETS Beginning of period ............................................. 1,880,461 4,055,866 ----------- ----------- End of period ................................................... $ 723,061 $ 1,880,461 =========== =========== (a) A summary of shares transactions is as follows: Six Months For the Year Ended Ended November 30, 2000# May 31, 2000 -------------------- -------------------- Shares Value Shares Value ------ ----- ------ ----- Class A Shares sold ................. 1,866 $ 17,776 387,677 $ 3,931,608 -------- ----------- -------- ----------- Shares issued in reinvestment of distributions .......... 0 0 12,899 129,118 Shares redeemed ............. (123,141) (1,203,897) (563,262) (5,720,465) -------- ----------- -------- ----------- Net decrease ................ (121,275) $(1,186,121) (162,686) $(1,659,739) ======== =========== ======== ===========
* Commencement of operations. # Unaudited. See accompanying Notes to Financial Statements. 7 UNITY FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout each period - --------------------------------------------------------------------------------
Six Months Year June 29, 1998* Ended Ended through November 30, 2000# May 31, 2000 May 31, 1999 ------------------ ------------ ------------ Net asset value, beginning of period ................... $ 9.78 $ 11.43 $ 10.00 --------- --------- -------- Income from investment operations: Net investment income ................................ 0.10 0.07 0.05 Net realized and unrealized gain on investments ...... 0.31 (1.25) 1.40 --------- --------- --------- Total from investment operations ....................... 0.41 (1.18) 1.45 --------- --------- --------- Less distributions: From net investment income ........................... -- (0.07) (0.01) From net investment gain from security transactions... -- (0.40) (0.01) --------- --------- --------- Total distributions .................................... -- (0.47) (0.02) --------- --------- --------- Net asset value, end of period ......................... $ 10.19 $ 9.78 $ 11.43 ========= ========= ========= Total return (Sales charge not included) ............... 4.19%++ (10.41%) 14.55%++ Ratios/supplemental data: Net assets, end of period (thousands) .................. $ 723 $ 1,881 $ 4,056 Ratio of expenses to average net assets: Before expense reimbursement ......................... 9.55%+ 5.36% 6.24%+ After expense reimbursement .......................... 2.10%+ 2.10% 2.10%+ Ratio of net investment loss to average net assets: After expense reimbursement .......................... 0.99%+ 0.43% 0.64%+ Portfolio turnover rate ................................ 0.00% 43.05% 54.69%
* Commencement of operations. # Unaudited. + Annualized. ++ Does not include sales load and is not annualized. See accompanying Notes to Financial Statements. 8 UNITY FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Unity 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 June 29, 1998. The Fund's primary investment objective is growth of capital. It's secondary objective is to provide current income. The Fund uses a disciplined approach to select securities it believes are undervalued, reasonably priced and have prospects for continued consistent growth. Shares of beneficial interest of the Fund are currently divided into two classes, designated Class A Shares and Class I Shares. Each class represents an interest in the same portfolio. During the six months ended November 30, 2000, Class I was inactive. 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 are 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 on the NASDAQ National Market System for which market quotations are readily available are 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 are valued at the most recent traded 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. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $40,000 in connection with its organization. These costs have been deferred and are being amortized on a straight-line basis over a period of sixty months from the date the Fund commenced investment operations. E. 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. 9 UNITY FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the six months ended November 30, 2000, Liberty Bank and Trust Company (the "Advisor") maintained overall responsibility for the Fund's assets and was responsible for monitoring the day-to-day activities of the Sub-Advisor, The Edgar Lomax Company. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 0.25% based upon the average daily net assets of the Fund. For the six months ended November 30, 2000, The Edgar Lomax Company (the "Sub-Advisor") provided the Fund with advice on buying and selling securities and managing the investments of the Fund. As compensation for its services, the Sub-Advisor is entitled to a monthly fee at the annual rate of 0.60% based upon the average daily net assets of the Fund. 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 2.10% of average net assets (the "expense cap"). Any such reduction 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 a Fund's payment of current ordinary operating expenses. For the six months ended November 30, 2000, the Advisor reduced its fees and absorbed Fund expenses in the amount of $51,528; 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 Funds; 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 Fund 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 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. 10 UNITY FUND NOTES TO FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- Certain officers of the Fund are also officers and/or directors of the Administrator and the Distributor. NOTE 4 - SECURITIES TRANSACTIONS For the six months ended November 30, 2000, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $0 and $1,171,317, respectively. 11 Advisor Liberty Bank and Trust Company 6600 Plaza Drive, Suite 310 New Orleans, LA 70122 Sub-Advisor The Edgar Lomax Company 6564 Loisdale Court, Suite 310 Springfield, VA 22150 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 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-----