N-30D 1 e-7639.txt SEMI-ANNUAL REPORT FOR PERIOD ENDING 8-31-01 THE AMERICAN TRUST ALLEGIANCE FUND One Court Street Lebanon, New Hampshire 03766 SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED AUGUST 31, 2001 AMERICAN TRUST ALLEGIANCE FUND October, 2001 Dear Fellow Shareholder, We are pleased to send you the American Trust Allegiance Fund's semi-annual report for the six- month period ending August 31, 2001. The Fund's assets declined to $26.6 million as of August 31, 2001, reflecting the sharp fall in U.S. stock prices. After posting competitive investment performance since inception, the Fund's performance this year has been disappointing as it has lagged behind the S&P 500 Index. The six months covered in this semi-annual report encompasses a period in which the U.S. economy has steadily weakened and a classic bear market has gripped the financial markets in this country. The U.S. stock market has experienced its worst sustained decline over the past twelve months in nearly 30 years. There have been few, if any, places that investors have been able to hide from the punishing fall in stock prices. The technology sector, which had offered exceptional growth opportunities over the past few years, has come to a standstill. Falling demand, rising inventories and deteriorating cash flow have undercut the profitability of the entire sector. The vicious terrorist attacks of September 11th hit an already weakening economy, likely tipping us into a recession. Our thoughts and prayers are with the families and friends of those who perished in the attacks. But our resolve is strong and our confidence in the United States is unwavering. From an economic and investment perspective, we are equally confident. The macroeconomic impact of an accommodative monetary policy and a stimulative fiscal policy will trigger the expansionary phase of the business cycle. The economy and financial markets will recover from this recessionary period, just as they always have during other swings of the U.S. business cycle. It will be no different this time around. We have restructured the Fund's holdings away from technology and reduced our overweighted position in this sector. Overall, we have sought to improve the industrial and sector diversification of the Fund. Our bias continues to be large capitalization growth companies with a record of consistent earnings growth. 2 AMERICAN TRUST ALLEGIANCE FUND We thank you for your support and look forward to helping you achieve your financial goals. /s/ Jeffrey M. Harris Jeffrey M. Harris, CFA /s/ Paul H. Collins Paul H. Collins Footnotes: Remember past performance is not a guarantee of future results. Fund share values and returns fluctuate and investors may have a gain or a loss when shares are redeemed. During the ranking period advisory fees have been waived. The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic economy. 3 AMERICAN TRUST ALLEGIANCE FUND TOP 10 HOLDINGS AT AUGUST 31, 2001 -------------------------------------------------------------------------------- American International Group, Inc. ChevronTexaco Corp. Cintas Corp. Colgate-Palmolive Co. Exxon Mobil Corp. Fannie Mae Performance Food Group Co. Schlumberger Ltd. Sysco Corp. The Clorox Co. 4 AMERICAN TRUST ALLEGIANCE FUND SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001 (UNAUDITED) -------------------------------------------------------------------------------- Shares COMMON STOCKS: 97.7% Market Value -------------------------------------------------------------------------------- AEROSPACE/DEFENSE: 2.81% 3,500 General Dynamics Corp. .............................. $ 276,360 6,900 United Technologies Corp. ........................... 471,960 ----------- 748,320 ----------- AIR FREIGHT & COURIERS: 1.89% 9,900 Expeditors International of Washington, Inc. ........ 503,514 ----------- AIRLINES: 1.15% 17,100 Southwest Airlines Co. .............................. 305,919 ----------- ALUMINUM: 0.89% 6,200 Alcoa, Inc. ......................................... 236,344 ----------- APPLICATION SOFTWARE: 1.13% 3,000 Advent Software, Inc.*.............................. 159,330 6,500 Siebel Systems, Inc.*................................ 140,400 ----------- 299,730 ----------- BANKS: 5.61% 6,100 Fifth Third Bancorp ................................. 355,630 8,100 Mellon Financial Corp. .............................. 285,525 9,700 Northern Trust Corp. ................................ 549,990 7,600 The Bank of New York Company, Inc. .................. 301,720 ----------- 1,492,865 ----------- BROADCASTING & CABLE: 1.86% 13,500 Comcast Corp. - Special Class A* .................... 494,505 ----------- CHEMICALS - SPECIALTY: 1.27% 8,400 Ecolab, Inc. ........................................ 336,672 ----------- COMPUTER HARDWARE: 2.03% 11,000 Dell Computer Corp.* ................................ 235,180 1,400 International Business Machines Corp. ............... 140,000 14,400 Sun Microsystems, Inc.* ............................. 164,880 ----------- 540,060 ----------- See accompanying Notes to Financial Statements. 5 AMERICAN TRUST ALLEGIANCE FUND SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- Shares Market Value -------------------------------------------------------------------------------- COMPUTER STORAGE/PERIPHERAL: 0.84% 14,500 EMC Corp.* .......................................... $ 224,170 ----------- CONSTRUCTION & ENGINEERING: 2.50% 6,400 Fluor Corp. ......................................... 290,112 6,400 Jacobs Engineering Group, Inc. ...................... 375,168 ----------- 665,280 ----------- CONSUMER FINANCE: 1.44% 11,000 MBNA Corp. .......................................... 382,360 ----------- DEPARTMENT STORES: 2.23% 10,700 Kohl's Corp.* ....................................... 593,850 ----------- DIVERSE FINANCIAL SERVICES: 8.65% 15,300 American Express Co.................................. 557,226 8,400 Fannie Mae........................................... 640,164 15,200 Federated Investors, Inc. - Class B.................. 432,440 6,600 Merrill Lynch & Co., Inc............................. 340,560 6,800 State Street Corp.................................... 330,208 ----------- 2,300,598 ----------- ELECTRIC UTILITIES: 3.34% 15,000 Calpine Corp.*....................................... 495,300 21,300 NRG Energy, Inc...................................... 391,920 ----------- 887,220 ----------- ELECTRICAL COMPONENT: 1.87% 9,300 Emerson Electric Co. ................................ 498,480 ----------- ELECTRONIC EQUIPMENT/INSTRUMENTS: 1.77% 3,500 Celestica, Inc.*..................................... 127,400 15,500 Solectron Corp.*..................................... 210,800 9,825 Symbol Technologies, Inc............................. 132,638 ----------- 470,838 ----------- See accompanying Notes to Financial Statements. 6 AMERICAN TRUST ALLEGIANCE FUND SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- Shares Market Value -------------------------------------------------------------------------------- FOOD DISTRIBUTORS: 5.21% 21,200 Performance Food Group Co............................ $ 715,712 23,900 SYSCO Corp........................................... 669,678 ----------- 1,385,390 ----------- FOREST PRODUCTS: 0.96% 4,500 Weyerhaeuser Co...................................... 255,375 ----------- HOUSEHOLD PRODUCTS: 4.55% 11,050 Colgate-Palmolive Co................................. 598,358 16,400 The Clorox Co........................................ 610,900 ----------- 1,209,258 ----------- INSURANCE - BROKERS: 2.09% 5,975 Marsh & McLennan Companies, Inc...................... 555,078 ----------- INSURANCE - MULTI-LINE: 2.40% 8,167 American International Group, Inc.................... 638,659 ----------- IT CONSULTING & SERVICES: 1.44% 16,200 SunGard Data Systems, Inc............................ 383,130 ----------- MACHINERY INDUSTRIAL: 2.86% 7,500 Illinois Tool Works, Inc............................. 468,825 7,200 Ingersoll-Rand Co.................................... 292,104 ----------- 760,929 ----------- MOTORCYCLE MANUFACTURERS: 2.17% 11,900 Harley-Davidson, Inc................................. 578,221 ----------- MULTI-UTILITIES: 1.64% 12,500 Enron Corp........................................... 437,375 ----------- NETWORKING EQUIPMENT: 1.13% 18,020 Cisco Systems, Inc.*................................. 294,267 430 McDATA Corp.*........................................ 6,140 ----------- 300,407 ----------- See accompanying Notes to Financial Statements. 7 AMERICAN TRUST ALLEGIANCE FUND SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- Shares Market Value -------------------------------------------------------------------------------- OIL AND GAS - EQUIPMENT/SERVICE: 2.58% 14,000 Schlumberger Ltd..................................... $ 686,000 ----------- OIL AND GAS - INTEGRATED: 5.25% 6,700 ChevronTexaco Corp................................... 608,025 19,600 Exxon Mobil Corp..................................... 786,940 ----------- 1,394,965 ----------- RESTAURANTS: 1.01% 8,900 Sonic Corp.*......................................... 269,581 ----------- RETAIL - HOME IMPROVEMENT: 1.54% 8,900 The Home Depot, Inc.................................. 408,955 ----------- SEMICONDUCTOR EQUIPMENT: 1.63% 6,300 Applied Materials, Inc.*............................. 271,467 2,300 Cabot Microelectronics Corp.*........................ 161,115 ----------- 432,582 ----------- SEMICONDUCTORS: 3.35% 6,500 Analog Devices, Inc.*................................ 310,570 10,800 Intel Corp........................................... 301,968 8,400 Texas Instruments, Inc............................... 278,040 ----------- 890,578 ----------- SERVICES - DATA PROCESSING: 6.70% 9,600 Automatic Data Processing, Inc....................... 496,896 8,900 Concord EFS, Inc................................... 466,983 6,100 First Data Corp...................................... 401,685 11,225 Paychex, Inc......................................... 416,111 ----------- 1,781,675 ----------- SERVICES - DIVERSE/COMMERCIAL: 4.39% 10,400 Apollo Group, Inc. - Class A......................... 409,448 16,300 Cintas Corp.......................................... 758,928 ----------- 1,168,376 ----------- SPECIALTY STORES: 2.17% 20,000 Bed Bath & Beyond, Inc.*............................. 577,000 ----------- See accompanying Notes to Financial Statements. 8 AMERICAN TRUST ALLEGIANCE FUND SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- Shares Market Value -------------------------------------------------------------------------------- SYSTEMS SOFTWARE: 2.66% 5,900 Adobe Systems, Inc................................... $ 198,299 5,550 Microsoft Corp.*..................................... 316,628 15,700 Oracle Corp.*........................................ 191,697 ----------- 706,624 ----------- TELECOM EQUIPMENT: 0.66% 11,100 Nokia Corp., ADR - Class A#.......................... 174,714 ----------- Total Common Stocks (Cost $29,429,069).................................. $25,975,595 ----------- SHORT-TERM INVESTMENTS: 2.29% -------------------------------------------------------------------------------- 609,719 Firstar Stellar Treasury Fund (Cost $609,719)..................................... $ 609,719 ----------- Total Investments in Securities (Cost $30,038,788+): 99.99%........................ 26,585,315 Other Assets less Liabilities: 0.01%................ 2,975 ----------- Net Assets: 100.00%................................. $26,588,290 =========== * Non-income producing security. # ADR - American Depository Receipt. + Gross unrealized appreciation and depreciation of securities is as follows: Gross unrealized appreciation........................ $ 1,234,730 Gross unrealized depreciation........................ (4,688,203) ----------- Net unrealized depreciation........................ $(3,453,473) =========== See accompanying Notes to Financial Statements. 9 AMERICAN TRUST ALLEGIANCE FUND STATEMENT OF ASSETS AND LIABILITIES AT AUGUST 31, 2001 (UNAUDITED) -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (cost $30,038,788) ..................................... $ 26,585,315 Receivables: Fund shares sold ....................................... 15,287 Dividends and interest ................................. 24,165 Deferred organization costs .............................. 1,931 Prepaid expenses ......................................... 17,987 ------------ Total assets ......................................... 26,644,685 ------------ LIABILITIES Payables: Due to advisor ......................................... 15,704 Fund shares repurchased ................................ 35,199 Accrued expenses ......................................... 5,492 ------------ Total liabilities .................................... 56,395 ------------ NET ASSETS ................................................. $ 26,588,290 ============ NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE [$26,588,290 / 1,855,270 shares outstanding; unlimited number of shares (par value $0.01) authorized] ........................ $ 14.33 ============ COMPONENTS OF NET ASSETS Paid-in capital .......................................... $ 32,834,826 Undistributed net investment loss ........................ (69,500) Accumulated net realized gain on investments ............. (2,723,563) Net unrealized appreciation on investments ............... (3,453,473) ------------ Net assets ........................................... $ 26,588,290 ============ See accompanying Notes to Financial Statements. 10 AMERICAN TRUST ALLEGIANCE FUND STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 2000 (UNAUDITED) -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends ................................................. $ 119,124 Interest .................................................. 33,266 ----------- Total income ............................................ 152,390 ----------- Expenses Advisory fees (Note 3) .................................... 145,448 Administration fees (Note 3) .............................. 30,620 Transfer agent fees ....................................... 25,369 Fund accounting fees ...................................... 15,520 Registration fees ......................................... 11,279 Audit fees ................................................ 9,577 Reports to shareholders ................................... 7,058 Custody fees .............................................. 6,758 Miscellaneous ............................................. 3,715 Legal fees ................................................ 3,025 Trustee fees .............................................. 2,168 Deferred organization expense ............................. 1,866 Insurance expense ......................................... 1,550 ----------- Total expenses .......................................... 263,953 Less: advisory fee waiver (Note 3) ...................... (42,063) ----------- Net expenses ............................................ 221,890 ----------- NET INVESTMENT LOSS ................................... (69,500) ----------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss on investments ............................ (2,884,957) Net change in unrealized depreciation on investments ........ (1,637,603) ----------- Net realized and unrealized loss on investments ........... (4,522,560) ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................................ $(4,592,060) =========== See accompanying Notes to Financial Statements. 11 AMERICAN TRUST ALLEGIANCE FUND STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
Six Months Year Ended Ended August 31, 2001* February 29, 2001 ---------------- ----------------- (DECREASE) / INCREASE IN NET ASSETS FROM: OPERATIONS Net investment loss .......................... $ (69,500) $ (310,502) Net realized (loss) / gain on investments ................................ (2,884,957) 164,480 Net unrealized depreciation on investments ................................ (1,637,603) (15,142,450) ------------ ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .............. (4,592,060) (15,288,472) ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Net realized gain on security transactions ... -- (1,001,777) ------------ ------------ TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST Net (decrease) / increase in net assets derived from net change in outstanding shares (a) ................................. (776,921) 11,315,499 ------------ ------------ TOTAL DECREASE IN NET ASSETS ............. (5,368,981) (4,974,750) NET ASSETS Beginning of year ............................ 31,957,271 36,932,021 ------------ ------------ END OF YEAR .................................. $ 26,588,290 $ 31,957,271 ============ ============
(a) A summary of share transactions is as follows: Six Months Year Ended Ended August 31, 2001* February 29, 2001 ------------------------ ------------------------ Shares Value Shares Value -------- ------------ -------- ------------ Shares sold ........... 121,940 $ 1,939,423 622,931 $ 15,165,103 Shares issued on reinvestment of distributions ....... -- -- 47,738 974,814 Shares redeemed ....... (173,218) (2,716,344) (209,050) (4,824,418) -------- ------------ -------- ------------ Net (decrease) / increase ............ (51,278) $ (776,921) 461,619 $ 11,315,499 ======== ============ ======== ============ *Unaudited. See accompanying Notes to Financial Statements. 12 AMERICAN TRUST ALLEGIANCE FUND FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD --------------------------------------------------------------------------------
Six Months Year Year Year 3/11/97* Ended Ended Ended Ended through 8/31/01# 2/28/01 2/29/00 2/28/99 2/28/98 -------- -------- -------- -------- ------- Net asset value, beginning of period .............. $ 16.76 $ 25.56 $ 16.93 $ 13.48 $ 10.00 -------- -------- -------- -------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment loss ............................ (0.04) (0.16) (0.11) (0.07) (0.03) Net realized and unrealized gain on investments ................................. (2.39) (8.10) 8.74 3.74 3.51 -------- -------- -------- -------- ------- Total from investment operations ............... (2.43) (8.26) 8.63 3.67 3.48 -------- -------- -------- -------- ------- Less distributions: From net realized gain ......................... 0.00 (0.54) 0.00 (0.22) 0.00 -------- -------- -------- -------- ------- Net asset value, end of period .................... $ 14.33 $ 16.76 $ 25.56 $ 16.93 $ 13.48 ======== ======== ======== ======== ======= Total return ...................................... (14.50)%++ (32.68)% 50.97% 27.47% 34.80%++ RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (thousands) ............. $ 26,588 $ 31,957 $ 36,932 $ 13,329 $ 6,360 Ratio of expenses to average net assets: Before expense reimbursement .................... 1.73%+ 1.56% 1.75% 2.30% 4.04%+ After expense reimbursement ..................... 1.45%+ 1.45% 1.45% 1.45% 1.45%+ Ratio of net investment loss to average net assets: After fees waived and expenses absorbed ......... (0.45)%+ (0.77)% (0.73)% (0.57)% (0.42)%+ Portfolio turnover rate ........................... 29.83%++ 86.13% 39.81% 40.99% 27.65%++
* Commencement of operations. # Unaudited. + Annualized. ++ Not Annualized. See accompanying Notes to Financial Statements. 13 AMERICAN TRUST ALLEGIANCE FUND NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2001 (UNAUDITED) -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The American Trust Allegiance 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 investment objective of the Fund is to seek capital appreciation. The Fund began operations on March 11, 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. 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 14 AMERICAN TRUST ALLEGIANCE FUND NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- 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. D. DEFERRED ORGANIZATION COSTS: The fund has incurred expenses of $18,500 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. NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES For the six months ended August 31, 2001, American Trust 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 the annual rate of 0.95% based upon the average daily net assets of the Fund. For the six months ended August 31, 2001, the Fund incurred $145,448 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 1.45% 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 15 AMERICAN TRUST ALLEGIANCE FUND NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2001 (UNAUDITED), CONTINUED -------------------------------------------------------------------------------- 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 August 31, 2001, the Advisor reduced its fees and absorbed Fund expenses in the amount of $42,063; no amounts were reimbursed to the Advisor. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $334,007 at August 31, 2001. Cumulative expenses subject to recapture expire as follows: Year Amount ---- ------ 1 $174,965 2 109,256 3 49,786 -------- $334,007 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 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 August 31, 2001, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $11,915,766 and $8,560,528, respectively. 16 ADVISOR American Trust Investment Advisers, LLC One Court Street Lebanon, NH 03766 1-800-788-8806 DISTRIBUTOR First Fund Distributors, Inc. 4455 East Camelback Road, Suite 261E Phoenix, AZ 85018 CUSTODIAN Firstar Institutional Custody Services 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT Orbitex Data Services 14707 California Street, Suite 5 Omaha, NE 68154 1-800-385-7003 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker, LLP 345 California Street, 29th Floor San Francisco, CA 94104 This report is intended for 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.