-----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, TQQD16lqViwNetYklNwoQ95RcVJb0ZGF00YQ8U/41bEChzzl+bxjoc00azhE5WpL w3FkyQpfiG3GEFtgJNhV8Q== 0000950147-01-501576.txt : 20010911 0000950147-01-501576.hdr.sgml : 20010911 ACCESSION NUMBER: 0000950147-01-501576 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010910 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: 1940 Act SEC FILE NUMBER: 811-07959 FILM NUMBER: 1733705 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-7446.txt SEMI-ANNUAL REPORT FOR PERIOD ENDED 6-30-01 [LOGO] THE AL FRANK FUND - -------------------------------------------------------------------------------- Semi-Annual Report - -------------------------------------------------------------------------------- For the Six Months Ended June 30, 2001 THE AL FRANK FUND Dear Shareholders, The Al Frank Fund (VALUX) continues to enjoy superb performance, as the "stealth" bull market endures, despite the headlines one reads almost daily in the financial press. While the major market averages were flat-to-down in the first half of 2001, with the Nasdaq Composite off another 12.55%, the majority of stocks were actually up for the year. Of course, indexes like the Dow Jones Industrial Average, the S&P 500 and the aforementioned Nasdaq are dominated by large capitalization stocks, most of which have been substantially overvalued after riding atop the market "bubble" for several years. Although the General Electrics, Cisco Systems and Yahoos of the investment universe have seen their market prices slashed this year, a recent study showed that 55% of the stocks in the S&P 500, 68% of all Nasdaq stocks priced at more than $5 and 66% of all New York Stock Exchange stocks priced at more than $5 were up as of July 22, 2001. Happily, the Net Asset Value of The Al Frank Fund advanced, yes advanced, 22.89% for the first six months of 2001. We have generated our performance by continuing to practice our disciplined approach of buying out-of-favor and undervalued stocks with the anticipation of holding them for their long-term appreciation potential. We have not wavered from our time-tested "buy-low-sell-high" philosophy even when it seemed that the "greater-fool" momentum-driven new era of investing was all the rage. We are not shocked that many of the profit-less dot.com stocks have gone bust, nor are we surprised that the sky-high P/Es of the large-cap technology companies have been depressed. Stock market history reveals that stocks trading for low Price/Earnings ratios, low Price/Sales ratios and low Price/Book Value ratios outperform stocks trading for higher valuations by a wide margin over the long term. Continuing the history lesson, small-capitalization stocks also outperform large-capitalization stocks by a significant percentage. Because we play the percentages, so to speak, by purchasing undervalued, small-cap companies, we should not be surprised that our style of investing has produced such stellar returns. Not only have we seen the market reward many of our inexpensive companies with higher multiples of earnings, sales, and book value, we have enjoyed quite a few buyout offers for our corporations as other investors, industry rivals and management-led groups have reached the conclusion that owning entire companies can be quite lucrative, especially when the purchase price is so reasonable. While we own only a very small percentage of the outstanding shares, we believe that we are partnering with the corporations in which we invest. We are not merely buying and selling pieces of paper as so many on Wall Street seem to do with little interest in the valuation measures of the underlying corporations. With the caveats that no investment approach works 100% of the time, that there are certainly no guarantees in investing and that our philosophy requires substantial patience to allow stocks time to blossom, we strongly believe that our brand of simple value investing will deliver superior returns over the long term. In addition, we continue to think that we are in the early stages of the renaissance of value investing, especially as the valuation divergence of the overvalued large-cap stocks and the undervalued small-caps had become so extreme. We could see the major market averages tread water, while the inexpensive stocks march higher. Such was the case following the bear market of 2 THE AL FRANK FUND 1973-1974 when Small Value stocks soared 400% over the next five years, while Large Growth stocks advanced "only" 100%. This data, generated by Ibbotson Associates, appeared in the Wall Street Journal earlier this year. What's more, the friendly Federal Reserve is an extremely important pillar for the stock markets. The seven interest rate cuts enacted thus far in 2001 should eventually lead to a significant upturn in the economy and the initiation of an interest rate cutting cycle has almost always led to higher stock prices, if the last 30 years can be used as a guide. There have been 13 previous Fed rate-cutting cycles since 1971 and in all 13 instances, the Nasdaq was higher 12 months later and in 12 of the 13 occasions, the S&P 500 was higher a year later. Of course, both of those indexes will have to rise significantly by the end of this year for that trend to continue, given the current (as of August 25) decline of 10.25% for the S&P 500 and a loss of 22.41% for the Nasdaq Composite. For comparative purposes, VALUX was up 22.14% year-to-date, versus a 0.56% loss for the Russell 2000, our primary benchmark. The Fund has received substantial inflows this year with assets rising to more than $32 million today from $20 million at the beginning of the year. We continue to find numerous bargains in which to invest, with over 300 stocks presently residing in VALUX. Given this broad diversification, a hallmark of our 24 years of publishing The Prudent Speculator investment newsletter, we are able to be as tax- efficient as possible. We can not promise that there will not be a distribution later this year, but we will do our best to minimize shareholders' tax burdens without jeopardizing the performance of the Fund. We thank you for your continued participation in The Al Frank Fund. Sincerely, /s/ John Buckingham /s/ Al Frank John Buckingham and Al Frank 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. This report is authorized for use when preceded or accompanied by a current prospectus for the Fund. The prospectus contains more information about the risks and on-going expenses of an investment in the Fund. The Fund's total return for the six months ended June 30, 2001 was 22.89% and since inception (January 2, 1998) through June 30, 2001 was 20.40% (on an annualized basis). If the maximum sales charge were reflected, the Fund's returns for the same periods would have been 16.20% and 18.49%, respectively. The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. The NASDAQ Stock Market is the largest electronic, screen-based market in the world with over 5,100 companies listed. The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally leaders in their respective industries and are listed on the New York Stock Exchange. The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. 3 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- COMMON STOCKS: 95.86% ADVANCED INDUSTRIAL EQUIPMENT 3,000 KLA-Tencor Corp.* $ 175,410 4,002 MTS Systems Corp. 55,187 11,600 Stratasys, Inc.* 35,032 10,000 The Lamson & Sessions Co.* 67,000 ------------ 332,629 ------------ ADVANCED MEDICAL DEVICES 2,700 Guidant Corp.* 97,200 37,000 Laserscope* 62,900 13,774 Utah Medical Products, Inc.* 156,335 8,000 VISX, Inc.* 154,800 ------------ 471,235 ------------ AEROSPACE & DEFENSE 11,000 Allied Research Corp.* 88,000 6,000 BE Aerospace, Inc.* 114,300 3,100 Ducommun, Inc.* 40,300 3,000 Kaman Corp. 53,100 9,000 LMI Aerospace, Inc.* 35,910 1,200 Lockheed Martin Corp. 44,460 1,500 Raytheon Co. - Class B 39,825 1,000 Sequa Corp.* 45,500 14,600 SIFCO Industries, Inc. 81,030 20,000 TransTechnology Corp.* 175,300 ------------ 717,725 ------------ AIR FREIGHT/COURIERS 99 FedEx Corp.* 3,980 ------------ AIRLINES 3,000 AMR Corp.* 108,390 1,500 Delta Air Lines, Inc. 66,120 5,000 KLM Royal Dutch Airlines 88,250 2,500 UAL Corp. 87,875 ------------ 350,635 ------------ ALUMINUM 3,500 Alcoa, Inc. 137,900 ------------ AUTOMOBILE MANUFACTURERS 2,000 DaimlerChrysler Corp. 92,200 5,000 Ford Motor Co. 122,750 1,600 General Motors Corp. 102,960 ------------ 317,910 ------------ AUTOMOBILE PARTS & EQUIPMENT 6,000 ArvinMeritor, Inc. 100,440 6,000 Cooper Tire & Rubber 85,200 11,999 Dura Automotive Systems, Inc.* 191,984 4,500 Genuine Parts Co. 141,750 3,000 Lear Corp.* 104,700 5,000 The Goodyear Tire & Rubber Co. 140,000 5,000 Visteon Corp. 91,900 ------------ 855,974 ------------ BANKS 2,000 Bank of America Corp. 120,060 1,000 BANK ONE Corp. 35,800 20,000 BankAtlantic Bancorp, Inc. 173,800 13,872 Bay View Capital Corp. 103,762 2,000 Capstead Mortgage Corp. 35,600 1,100 Citigroup, Inc. 58,124 819 First Union Corp. 28,616 8,000 Pacific Century Financial Corp. 206,320 10,000 Sovereign BanCorp, Inc. 130,000 ------------ 892,082 ------------ BIOTECHNOLOGY 20,000 Zonagen, Inc.* 61,400 ------------ BUILDING MATERIALS 900 Ameron International Corp. 60,075 4,000 Hughes Supply 94,600 7,000 JLG Industries, Inc. 86,450 6,000 NCI Building Systems, Inc.* 109,500 3,000 Nortek, Inc.* 93,660 5,500 OMNOVA Solutions, Inc. 40,040 7,000 Pope & Talbot, Inc. 90,370 ------------ 574,695 ------------ BUSINESS SERVICES 13,900 Ablest, Inc.* 62,550 20,000 Analysts International Corp. 89,200 50,000 Be Free, Inc.* 61,000 9,500 Cambridge Technology Partners (Massachusetts), Inc.* 33,630 40,000 Comdisco, Inc. 53,200 40,000 Computer Horizons Corp.* 124,400 20,000 Encompass Services Corp.* 179,000 7,000 IKON Office Solutions, Inc. 68,600 5,000 In Focus Systems* 101,950 4 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- BUSINESS SERVICES, CONTINUED 3,750 Right Mgmt Consult $ 97,875 80,000 SOS Staffing Services, Inc.* 104,800 32,720 Vicon Industries, Inc.* 81,800 ------------ 1,058,005 ------------ CHEMICALS - COMMODITY 5,000 Olin Corp. 84,950 3,000 The Dow Chemical Co. 99,750 ------------ 184,700 ------------ CHEMICALS - SPECIALTY 7,000 Crompton Corp. 76,300 8,000 IMC Global, Inc. 81,600 2,200 Octel Corp.* 35,750 8,000 Spartech Corp. 193,200 1,400 Wellman, Inc. 25,060 ------------ 411,910 ------------ CLOTHING/FABRICS 1,000 Garan, Inc 34,150 10,000 Guess ?, Inc.* 67,000 7,200 Haggar Corp. 74,520 30,000 Hartmarx Corp.* 75,300 4,500 Kellwood Co. 103,950 5,000 Oxford Industries 110,000 14,000 Quaker Fabrics* 143,500 1,500 Quiksilver, Inc.* 37,500 5,000 Tommy Hilfiger Corp.* 70,000 5,000 Tropical Sportswear* 104,050 8,000 Unifi, Inc* 68,000 ------------ 887,970 ------------ COMMUNICATIONS TECHNOLOGY 20,000 3Com Corp.* 95,000 50,000 Adaptive BroadBand* 17,500 186 Avaya, Inc.* 2,548 14,400 Blonder Tongue Labs* 57,168 6,000 Cabletron Systems, Inc. 137,100 11,000 Clarent Corp.* 101,090 6,000 Datum* 81,000 10,000 Davox Corp.* 83,000 10,000 DIGI International, Inc.* 87,400 65,000 Glenayre Technologies, Inc.* 83,200 10,000 Lucent Technologies, Inc. 62,000 20,000 Network Equipment Technology* 64,000 60,000 Screaming Media, Inc.* 177,000 75,000 VTEL Corp.* 87,000 20,000 Zoom Telephonics, Inc.* 45,000 ------------ 1,180,006 ------------ COMPUTERS 11,000 Adaptec, Inc. 109,340 6,000 Apple Computer, Inc.* 139,500 10,400 Applied Graphics Technology, Inc.* 12,480 4,000 Compaq Computer Corp. 61,960 22,000 Exabyte Corp.* 21,120 30,000 Iomega Corp.* 71,700 11,000 Maxtor Corp.* 57,750 3,000 Quantum Corp. - DLT & Storage Systems Group* 30,270 20,000 Read-Rite Corp.* 106,600 1,250 Seagate Technology* 100 25,000 SONICblue* 82,500 8,000 Storage Technology Corp.* 110,080 20,000 Trident Microsystems, Inc.* 81,200 ------------ 884,600 ------------ CONSUMER SERVICES 20,000 ANC Rental Corp.* 60,000 2,500 H&R Block, Inc. 161,375 62,800 Mypoints.com* 161,396 ------------ 382,771 ------------ CONTAINERS & PACKAGING 20,000 Applied Extrusion Technology, Inc.* 146,800 ------------ COSMETICS/PERSONAL CARE 30,000 Allou Health & Beauty Care, Inc.* 123,000 10,000 Helen of Troy Ltd.* 88,400 ------------ 211,400 ------------ ELECTRICAL COMPONENTS & EQUIPMENT 30,000 Aerovox, Inc.* 16,200 25,000 Aetrium, Inc.* 57,500 5,000 American Power Conversion Corp.* 78,750 4,000 AVX Corp. 84,000 4,000 Bel Fuse, Inc. - Class B 133,000 4,000 C&D Technologies 124,000 60,000 InVision Technologies, Inc.* 231,000 8,289 Nam Tai Electronics, Inc. 124,417 5,000 PRI Automation, Inc.* 92,625 5,400 Recoton Corp.* 93,558 7,600 RF Industries Ltd.* 23,256 3,100 Thomas & Betts Corp. 68,417 12,298 Vishay Intertechnology, Inc.* 282,866 ------------ 1,409,589 ------------ 5 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- FINANCIAL SERVICES, DIVERSIFIED 4,847 Conseco, Inc.* $ 66,162 ------------ FIXED LINE COMMUNICATIONS 4,000 AT&T Corp.* 88,000 5,000 MCI Group 80,500 5,000 Worldcom, Inc. 71,000 ------------ 239,500 ------------ FOOD 2,200 Sara Lee Corp. 41,668 ------------ FOOD RETAILERS 3,500 Albertson's, Inc. 104,965 ------------ FOOTWEAR 25,000 Deckers Outdoor* 98,250 5,000 Maxwell Shoe Co., Inc.* 85,000 5,000 R.G. Barry Corp.* 23,000 1,800 Reebok International Ltd. 57,510 15,000 Saucony, Inc. - Class B 94,800 1,000 The Timberland Co. - Class A 39,510 ------------ 398,070 ------------ FOREST PRODUCTS 2,500 Georgia-Pacific Corp. 84,625 ------------ HEALTHCARE PROVIDERS 4,000 Aetna, Inc.* 103,480 11,500 Curative Health Services, Inc.* 72,450 12,000 HEALTHSOUTH Corp.* 191,640 10,000 Humana Corp.* 98,500 42,300 LCA-Vision, Inc.* 105,750 3,500 Oxford Health* 100,100 7,000 Pacificare* 114,100 13,500 Res-Care, Inc.* 111,510 ------------ 897,530 ------------ HEAVY CONSTRUCTION 5,000 Dycom Industries* 114,650 ------------ HEAVY MACHINERY 1,800 A.O. Smith Corp. 32,220 20,400 Katy Industries* 96,696 ------------ 128,916 ------------ HOME CONSTRUCTION 16,000 Cavalier Homes, Inc.* 46,400 10,000 Champion Enterprises, Inc.* 113,800 4,000 Clayton Homes, Inc. 62,880 4,839 D.R. Horton, Inc. 109,845 8,000 Fleetwood Enterprises 112,640 4,000 KB Home, Inc. 120,680 20,000 Oakwood Homes 100,000 6,100 Rexhall Industries* 37,637 6,000 Standard Pacific Corp. 138,900 1,200 Toll Brothers, Inc.* 47,172 ------------ 889,954 ------------ HOME FURNISHINGS 14,000 Applica Corp.* 111,440 4,000 Chromcraft Revington, Inc.* 38,500 6,000 Craftmade International, Inc. 67,200 3,100 Maytag Corp. 90,706 25,000 The Dixie Group, Inc.* 118,750 2,000 Whirlpool Corp. 125,000 ------------ 551,596 ------------ HOUSE-DURABLE 11,000 Department 56, Inc.* 84,150 3,500 Springs Industries, Inc. 154,350 4,000 The Sherwin-Williams Co. 88,800 ------------ 327,300 ------------ HOUSE-NON-DURABLE 15,000 Central Garden & Pet Co. - Class A* 124,200 ------------ INDUSTRIAL & COMMERCIAL SERVICES 4,500 Avnet, Inc. 100,890 10,000 Nu Horizons Electronics Corp.* 95,000 10,000 Spectrum Controls* 59,600 8,000 Trio-Tech International* 26,000 ------------ 281,490 ------------ INDUSTRIAL DIVERSIFIED 8,000 GenCorp, Inc. 102,400 15,300 McRae Industries, Inc. 64,643 7,000 P & F Industries, Inc. - Class A* 47,950 1,000 Rockwell International Corp. 38,120 ------------ 253,113 ------------ INSURANCE, LIFE 400 National Western Life Insurance Co.* 48,000 1,500 Torchmark Corp. 60,315 2,000 UnumProvident Corp. 64,240 ------------ 172,555 ------------ 6 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- INSURANCE, PROPERTY & CASUALTY 800 MGIC Investment Corp. $ 58,112 2,200 Radian Group 88,990 50,000 RTW, Inc.* 102,250 1,000 The Allstate Corp. 43,990 1,700 Trenwick Group, Inc. 38,964 ------------ 332,306 ------------ MARINE TRANSPORTATION 18,000 OMI Corp.* 102,420 8,000 Sea Containers Ltd. - Class A 149,760 1,900 Stolt-Nielsen S.A. ADR 33,915 ------------ 286,095 ------------ MEDICAL SUPPLIES 3,500 Bergen Brunswig Corp. 67,270 5,000 Boston Scientific Corp.* 85,000 10,000 Minntech Corp.* 96,500 ------------ 248,770 ------------ OIL, EQUIPMENT & SERVICES 13,000 Giant Industries, Inc.* 114,400 5,000 Holly Corp. 176,250 6,000 Maverick Tube Corp.* 101,700 5,000 Oceaneering International, Inc.* 103,750 2,700 Offshore Logistics, Inc.* 51,300 ------------ 547,400 ------------ OIL, DRILLING 2,300 Global Marine, Inc.* 42,849 16,400 Harken Energy Corp.* 40,180 10,200 Wiser Oil* 71,400 ------------ 154,429 ------------ OIL, SECONDARY 10,000 FriedeGoldmanHalter* 4,400 6,000 Ocean Energy, Inc. 104,700 10,000 Range Resources Corp.* 60,000 3,300 Triton Energy* 108,075 1,500 Ultramar Diamond Shamrock Corp. 70,875 2,500 Valero Energy Corp. 91,950 5,000 Vintage Petroleum 93,500 ------------ 533,500 ------------ OTHER NON-FERROUS 4,000 Cleveland-Cliffs, Inc. 74,000 899 Phelps Dodge Corp. 37,309 ------------ 111,309 ------------ PAPER PRODUCTS 3,000 International Paper Co. 107,100 ------------ PHARMACEUTICALS 4,000 Nature's Sunshine Products, Inc. 47,320 2,700 Schering-Plough 97,848 40,000 Twinlab Corp.* 103,200 ------------ 248,368 ------------ POLLUTION CONTROL/WASTE MANAGEMENT 20,000 IMCO Recycling, Inc. 142,000 ------------ PRECIOUS METALS 3,259 AngloAmerican ADR 48,800 ------------ RAILROADS 3,500 CSX Corp. 126,840 1,800 Union Pacific Corp. 98,838 ------------ 225,678 ------------ REAL ESTATE INVESTMENT 8,000 HRPT Properties Trust 77,840 3,000 LNR Property Corp. 105,000 ------------ 182,840 ------------ RECREATIONAL PRODUCTS 4,000 Brunswick Corp. 96,120 2,200 Callaway Golf Co. 34,760 3,600 CoastCast Corp. 28,620 15,000 Concord Camera* 88,500 2,000 Eastman Kodak Co. 93,360 6,000 K2, Inc.* 68,580 ------------ 409,940 ------------ RESTAURANTS 30,000 CKE Restaurants* 99,000 3,500 Landry's Seafood Restaurants, Inc. 59,500 3,600 Outback Steakhouse* 103,680 3,000 TRICON Global Restaurants, Inc.* 131,700 ------------ 393,880 ------------ RETAILERS, APPAREL 750 American Eagle Outfitters, Inc. 26,430 5,000 AnnTaylor, Inc.* 179,000 2,500 Burlington Coat Factory Warehouse Corp.* 50,000 10,000 Gadzooks, Inc.* 130,900 100,000 One Price Clothing Stores, Inc.* 72,000 2,500 Pacific Sunwear of California, Inc.* 56,075 ------------ 514,405 ------------ 7 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- RETAILERS, BROADLINE 5,000 J.C. Penney Company, Inc. $ 131,800 10,000 Kmart Corp.* 114,700 5,000 Nordstrom, Inc. 92,750 2,500 Sears, Roebuck and Co. 105,775 ------------ 445,025 ------------ RETAILERS, SPECIALTY 4,500 A.C. Moore Arts & Crafts, Inc.* 67,500 10,000 AutoNation, Inc.* 116,000 17,000 Friedman's, Inc. 195,500 40,000 HomeBase, Inc.* 138,000 30,000 Jo-Ann Stores, Inc. - Class B* 67,800 5,000 Michaels Stores, Inc.* 205,000 5,000 Office Depot, Inc.* 51,900 25,000 OfficeMax* 92,250 4,000 Rex Stores Corp. 107,640 8,000 TBC Corp.* 76,640 4,000 The Pep Boys - Manny, Moe & Jack 44,920 4,000 Toys 'R' Us, Inc.* 99,000 2,700 TransWorld Entertainment Corp.* 25,677 ------------ 1,287,827 ------------ SAVINGS & LOANS 2,400 FirstFed Financial Corp.* 71,520 2,200 Golden State Bancorp, Inc. 67,760 2,750 PVF Capital Corp. 29,563 2,250 Washington Mutual, Inc. 84,488 ------------ 253,331 ------------ SECURITIES BROKERS 750 Lehman Brothers Holdings, Inc. 58,313 882 The Bear Stearns Companies, Inc. 52,012 ------------ 110,325 ------------ SEMICONDUCTOR & RELATED 4,000 Advanced Micro Devices, Inc.* 115,520 1,500 Applied Materials, Inc.* 73,650 1,929 ASM Holdings* 42,920 6,668 Atmel Corp.* 89,951 5,000 Cohu, Inc. 112,500 4,500 Credence Systems Corp.* 109,080 4,000 Cypress Semiconductor Corp.* 95,400 4,000 Dataram Corp.* 39,600 9,000 Diodes, Inc.* 83,700 6,000 Electroglas, Inc.* 106,200 10,690 ESS Technology* 113,314 12,000 General Semiconductor, Inc.* 125,520 3,000 Integrated Device Technology, Inc.* 95,070 12,000 Integrated Silicon Solutions, Inc.* 166,800 2,334 International Rectifier Corp.* 79,589 5,000 KEMET Corp.* 99,050 8,000 Kulicke and Soffa Industries, Inc.* 137,280 5,000 Lam Research Corp.* 148,250 4,000 LSI Logic* 75,200 2,000 Micron Technology, Inc.* 82,200 4,000 National Semiconductor Corp.* 116,480 3,000 Novellus Systems, Inc.* 170,370 1,250 Standard Microsystems Corp.* 22,375 2,000 Teradyne, Inc.* 66,200 4,200 Varian Semiconductor Equipment Associates, Inc.* 176,400 ------------ 2,542,620 ------------ SOFTWARE 10,000 Aether Systems, Inc.* 88,500 54,500 American Software, Inc. - Class A* 92,650 4,000 Autodesk, Inc.* 149,200 6,000 Avant! Corp.* 79,800 2,000 BMC Software, Inc.* 45,080 15,000 CAM Commerce Solutions, Inc.* 56,475 4,000 Computer Associates International, Inc. 144,000 10,000 Compuware Corp.* 139,900 1,500 Electronics for Imaging, Inc.* 44,250 50,000 Net Perceptions, Inc.* 86,000 35,000 NetManage, Inc.* 25,200 82,700 Peerless Systems Corp.* 152,995 2,800 Progress Software Corp.* 45,360 20,000 Rainbow Technologies* 111,800 1,316 Roxio* 17,108 39,000 SEEC, Inc.* 104,130 2,500 Software Spectrum, Inc.* 30,300 2,400 Symantec Corp.* 104,856 8 THE AL FRANK FUND SCHEDULE OF INVESTMENTS at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- SOFTWARE, CONTINUED 3,500 Unisys Corp.* $ 51,485 ------------ 1,569,089 ------------ STEEL 10,000 AK Steel 125,400 100,000 LTV Corp.* 13,100 50,000 Rouge Industries, Inc. - Class A 111,500 1,351 Ryerson Tull, Inc. 18,225 4,000 USX - US Steel Group 80,600 ------------ 348,825 ------------ TOBACCO 1,000 Philip Morris Companies, Inc. 50,750 1,600 R.J. Reynolds Tobacco Holdings, Inc. 87,360 1,700 UST, Inc. 49,062 ------------ 187,172 ------------ TOYS 6,000 Hasbro, Inc. 86,700 6,000 Mattel, Inc.* 113,520 9,000 Topps Company, Inc.* 105,210 ------------ 305,430 ------------ TRANSPORTATION EQUIPMENT 2,000 Cummins Engine Co. 77,400 3,000 Navistar International Corp.* 84,390 433 Sabre Holdings Corp.* 21,650 4,000 Trinity Industries, Inc. 83,560 ------------ 267,000 ------------ TRUCKING 5,000 Arkansas Best Corp.* 115,250 33,800 Cannon Express, Inc.* 57,122 15,000 Consolidated Freightways Corp.* 134,400 3,100 Old Dominion Freight Line, Inc.* 30,225 4,300 Roadway Express, Inc. 102,211 4,500 Yellow Corp.* 85,410 ------------ 524,618 ------------ WIRELESS COMMUNICATIONS 30,000 Brightpoint, Inc.* 87,000 6,000 Corning 100,260 ------------ 187,260 ------------ Total Common Stocks (Cost $23,310,553)+ $ 28,665,550 ------------ Principal Amount - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS: 3.02% $903,663 Firstar Stellar Treasury Fund (Cost $903,663) $ 903,663 ------------ Total Investments in Securities (Cost $24,214,216): 98.88% 29,569,213 Other Assets less Liabilties: 1.12% 334,419 ------------ Net Assets: 100.00% $ 29,903,632 ============ - ---------- * Non-incoome producing security. + Gross unrealized appreciation and depreciation of securities is as follows: Gross unrealized appreciation $ 7,447,075 Gross unrealized depreciation (2,092,078) ------------ Net unrealized appreciation $ 5,354,997 ============ 9 THE AL FRANK FUND STATEMENT OF ASSETS AND LIABILITIES at June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (cost $24,214,216) ..................................... $ 29,569,213 Receivables: Dividends and interest ................................. 14,970 Fund shares sold ....................................... 371,550 Securities sold ........................................ 155,235 Deferred organization costs .............................. 10,546 Prepaid expenses ......................................... 29,538 ------------ Total assets ......................................... 30,151,052 ------------ LIABILITIES Payables: Administration fees .................................... 4,884 Distribution fees ...................................... 6,113 Due to advisor ......................................... 28,217 Fund shares redeemed ................................... 137,346 Securities purchased ................................... 70,860 ------------ Total liabilities .................................... 247,420 ------------ NET ASSETS ................................................. $ 29,903,632 ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$29,903,632 / 1,667,553 shares outstanding; unlimited number of shares (par value $.01) authorized] ........................... $ 17.93 ============ OFFERING PRICE PER SHARE ($17.93 / .9450) ................ $ 18.97 ============ COMPONENTS OF NET ASSETS Paid-in capital .......................................... $ 23,700,699 Net investment loss ...................................... (123,517) Accumulated net realized gain on investments ............. 971,453 Net unrealized appreciation on investments ............... 5,354,997 ------------ Net assets ........................................... $ 29,903,632 ============ See accompanying Notes to Financial Statements. 10 THE AL FRANK FUND STATEMENT OF OPERATIONS For the Six Months Ended June 30, 2001 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends .................................................. $ 132,317 Interest ................................................... 24,788 ----------- Total income .......................................... 157,105 ----------- Expenses Advisory fees (note 3) ..................................... 124,882 Distribution fees (note 4) ................................. 31,220 Administration fees (Note 3) ............................... 24,976 Professional fees .......................................... 18,248 Registration expense ....................................... 16,074 Transfer agent fees ........................................ 14,356 Fund accounting fees ....................................... 13,419 Custody fees ............................................... 7,182 Reports to shareholders .................................... 5,902 Deferred organization expense .............................. 3,472 Miscellaneous .............................................. 2,625 Trustee fees ............................................... 2,132 Insurance expense .......................................... 1,006 ----------- Total expenses ........................................... 265,494 Add: expenses recouped by advisor (Note 3) ............... 15,128 ----------- Net expenses ........................................... 280,622 ----------- NET INVESTMENT LOSS .................................. (123,517) ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on investments ............................. 627,919 Net change in unrealized appreciation on investments ................................................ 4,194,145 ----------- Net realized and unrealized gain on investments .................................. 4,822,064 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................................... $ 4,698,547 =========== See accompanying Notes to Financial Statements. 11 THE AL FRANK FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
Six Months Ended Year Ended June 30, 2001# December 31, 2000 -------------- ----------------- INCREASE (DECREASE) IN NET ASSETS FROM: OPERATIONS Net investment loss .......................... $ (123,517) $ (104,299) Net realized gain on investments ............. 627,919 362,231 Net change in unrealized appreciation / (depreciation) on investments .............. 4,194,145 (319,164) ------------ ------------ NET INCREASE / (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ............... 4,698,547 (61,232) ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS Net realized gain on security transactions ... -- (886,353) ------------ ------------ TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net increase in net assets derived from net change in outstanding shares (a) 5,378,967 13,111,125 ------------ ------------ TOTAL INCREASE IN NET ASSETS ................ 10,077,514 12,163,540 ------------ ------------ NET ASSETS Beginning of period ......................... 19,826,118 7,662,578 ------------ ------------ END OF PERIOD ............................... $ 29,903,632 $ 19,826,118 ============ ============
(a) A summary of share transactions is as follows: Six Months Ended Year Ended June 30, 2001# December 31, 2000 ------------------------ ------------------------- Shares Value Shares Value -------- ----------- -------- ------------ Shares sold ......... 501,260 $ 8,588,490 975,413 $ 15,365,513 Shares issued on reinvestment of distributions ..... -- -- 55,209 881,129 Shares redeemed ..... (193,438) (3,209,523) (197,647) (3,135,517) -------- ----------- -------- ------------ Net increase ........ 307,822 $ 5,378,967 832,975 $ 13,111,125 ======== =========== ======== ============ - ---------- # Unaudited. See accompanying Notes to Financial Statements. 12 THE AL FRANK FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout each year - --------------------------------------------------------------------------------
Year Ended Six Months December 31, Jan. 2, 1998* Ended -------------------------- through June 30, 2001# 2000 1999 Dec. 31, 1998 -------------- ---------- ---------- ------------- Net asset value, beginning of period ...... $ 14.58 $ 14.55 $ 9.07 $ 10.00 ---------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss ..................... (0.07) (0.08) (0.21) (0.08) Net realized and unrealized gain on investments ........................... 3.42 0.18 5.69 (0.85) ---------- ---------- ---------- ---------- Total from investment operations .......... 3.35 1.10 5.48 (0.93) ---------- ---------- ---------- ---------- LESS DISTRIBUTIONS: From net realized gain on investments ... -- (1.07) -- -- Net asset value, end of period ............ $ 17.93 $ 14.58 $ 14.55 $ 9.07 ========== ========== ========== ========== Total return .............................. 22.89%+ 6.98% 60.42% (9.30%)+ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) ..... $ 29,903 $ 19,826 $ 7,663 $ 7,042 RATIO OF EXPENSES TO AVERAGE NET ASSETS: Before expense reimbursement ............ 2.14%** 2.25% 3.60% 3.74%** After expense reimbursement ............. 2.25%** 2.25% 2.20% 2.25%** RATIO OF NET INVESTMENT LOSS TO AVERAGE NET ASSETS After expense reimbursement ........... (0.99%)** (0.79%) (1.32%) (1.28%)** Portfolio turnover rate ................... 4.79%+ 30.17% 19.00% 5.82%+
- ---------- * Commencement of operations. ** Annualized. + Not Annualized. # Unaudited. See accompanying Notes to Financial Statements. 13 THE AL FRANK FUND NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Al Frank 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 January 2, 1998. The investment objective of the Fund is to seek growth of capital. The Fund seeks to achieve its objective by investing in out of favor and undervalued equity securities. 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. Realized gains and losses on securities sold are determined on the basis of identified cost. Dividend income and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations which differs from generally accepted accounting principles. To the extent these book/tax differences are permanent such amounts are reclassified within the capital accounts based on their Federal tax treatment. 14 THE AL FRANK FUND NOTES TO FINANCIAL STATEMENTS - (Continued) - -------------------------------------------------------------------------------- D. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $35,000 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 of 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. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the six months ended June 30, 2001, Al Frank Asset 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. 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 six months ended June 30, 2001, the Fund incurred $124,882 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 2.25% 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 the Fund's payment of current ordinary operating expenses. For the six months ended June 30, 2001, the Advisor recouped $15,128 of such expenses it previously reimbursed to the Fund. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $149,524 at June 30, 2001. 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 15 THE AL FRANK FUND NOTES TO FINANCIAL STATEMENTS - (Continued) - -------------------------------------------------------------------------------- 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 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 - DISTRIBUTION COSTS 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 0.25% 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 coordination agreement adopted under the Plan, distribution fees are paid to the Advisor as "Distribution Coordinator". For the six months ended June 30, 2001, the Fund paid the Distribution Coordinator $31,220. NOTE 5 - SECURITIES TRANSACTIONS For the six months ended June 30, 2001, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $5,832,250 and $1,142,555 respectively. 16 THE AL FRANK FUND NOTES TO FINANCIAL STATEMENTS - (Continued) - -------------------------------------------------------------------------------- NOTE 6 - PRIVACY NOTICE The Al Frank Fund, Al Frank Asset Management, Inc. and First Fund Distributors, Inc. collect non-public information about you from the following sources: * Information we receive about you on applications or other forms; * Information you give us orally; and * Information about your transactions with us or others. We do not disclose any non-public personal information about our customers or former customers without the customer's authorization, except as required by law or in response to inquiries from governmental authorities. We restrict access to your personal and account information to those employees who need to know that information to provide products and services to you. We also may disclose that information to unaffiliated third parties (such as to brokers or custodians) only as permitted by law and only as needed for us to provide agreed services to you. We maintain physical, electronic and procedural safeguards to guard your non-public personal information. 17 - -------------------------------------------------------------------------------- ADVISOR Al Frank Asset Management, Inc. 465 Forest Avenue, Suite I Laguna Beach, California 92651 www.alfrank.com DISTRIBUTOR First Fund Distributors, Inc. 4455 E. Camelback Road, Suite 261-E Phoenix, Arizona 85018 CUSTODIAN Firstar Institutional Custody Services 425 Walnut Street, M/L 6118 Cincinnati, Ohio 45202 TRANSFER AGENT American Data Services, Inc. PO Box 542007 Omaha, NE 68154-1952 (888) 263-6443 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 345 California Street San Francisco, California 94104 - -------------------------------------------------------------------------------- This report is intended for the shareholders of the Fund and may not be used as sales literature unless preceded or accompanied by a current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Share price and returns will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are dated and are subject to change. -----END PRIVACY-ENHANCED MESSAGE-----