0000950147-01-501781.txt : 20011101
0000950147-01-501781.hdr.sgml : 20011101
ACCESSION NUMBER: 0000950147-01-501781
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20010831
FILED AS OF DATE: 20011031
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: 1771054
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-7646.txt
ANNUAL REPORT FOR THE YEAR ENDED 8/31/01
[LOGO]
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
1235 WESTLAKES DRIVE, SUITE 330
BERWYN, PA 19312
(610) 296-1400
ANNUAL REPORT
AUGUST 31, 2001
CHARTWELL SMALL CAP VALUE FUND
Dear Shareholder:
The period ending August 31, 2001 was marked by strong absolute returns for
small cap value stocks and, for the second year in a row, some of the best
returns in the equity markets, outpacing those of both large stocks and growth
stocks. While late 2000 evidenced a slowing economy and the continuing
adjustment from the technology and internet boom, early 2001 found the Federal
Reserve cutting interest rates and investors looking forward to a recovery.
Throughout the year, the economic sensitivity, the heavy financial services
sector weight and the attractive valuation of the small cap value segment of the
market drove performance. Your portfolio returned 19.20% in the period,
outperforming the Russell 2000 Value Index return of 18.04%.
Your portfolio's investments in the financial, consumer cyclical and capital
spending sectors reflected the above market strength and contributed the most to
the period's strong performance. Americredit and Microfinancial among
financials, Dal Tile and BorgWarner in the consumer cyclical group, and Regal
Beloit and Gardner Denver in the capital spending group were some of the
outstanding performers. Not surprisingly, technology was the weakest sector with
stocks such as APW Ltd. and CTS particularly poor selections.
We remain committed to consistent investment disciplines: focusing on
inexpensive stocks, researching the business fundamentals of our companies for
improving prospects and owning stocks which display catalysts for price
appreciation. The recent strong performance of our small cap value sector has
closed some of the gap between the valuation of our stocks and that of the
market, though we feel they are still attractively valued. We are outperforming
our market benchmark and believe that smaller, more value-oriented stocks have a
bright future.
/s/ David C. Dalrymple
David C. Dalrymple, CFA
Managing Partner and Portfolio Manager
2
CHARTWELL SMALL CAP VALUE FUND
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE CHARTWELL
SMALL CAP VALUE FUND VERSUS THE RUSSELL 2000 VALUE INDEX(1).
AVERAGE ANNUAL TOTAL RETURN(2)
1 Year ............................19.20%
SINCE INCEPTION (10/1/99) .........24.55%
CHARTWELL SMALL CAP VALUE FUND RUSSELL 2000 VALUE INDEX
------------------------------ ------------------------
1 Oct 99 10,000 10,000
30 Nov 99 10,130 9,851
29 Feb 00 10,557 10,492
31 MAY 00 11,419 10,442
31 AUG 00 12,782 11,602
30 NOV 00 12,903 11,647
28 FEB 01 14,060 11,102
31 MAY 01 14,900 11,619
31 AUG 01 15,236 10,965
Past performance does not predict future performance.
(1) The Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth
values.
(2) Average annual total return represents the average change in account value
over the periods indicated.
3
CHARTWELL LARGE CAP VALUE FUND
Dear Shareholder:
Overall economic and market conditions continued to be difficult during the
second half of the fiscal year ended August 31, 2001. For the fiscal year ended
August 31, 2001 the Chartwell Large Cap Value Fund returned -1.85% vs. -1.12%
for the Russell 1000 Value. The Standard and Poors 500 Index was down -24.39%.
The primary reason for the modest underperformance versus the Russell was our
intentional underweight in basics and capital goods. Both groups recovered
sharply in anticipation of a quick positive economic response to Federal Reserve
easing. It is now understood that recovery is going to take somewhat longer to
unfold. That being true, the above mentioned deep cyclicals are now coming under
pressure. Consequently, we feel our less economically sensitive portfolio will
begin to outperform.
The US economy is very close to recessionary levels. Capital spending,
particularly in the technology and communications sectors, has declined sharply.
While the consumer has been able to maintain spending thus far, rising
unemployment, high debt levels and the tragic events of September 11th may serve
to undermine confidence. As a result we expect even more aggressive fiscal and
monetary stimulus to be enacted. With history as a guide, these policies should
begin to impact by late this year or early next.
The portfolio continues to be dominated by high quality companies with
overweights in healthcare, energy, technology and utilities. The underweights
are basic industry, capital goods, consumer cyclicals and communications. With
reference to the underweights, we are vigilant for opportunities that are likely
to present themselves in this period of uncertainty.
/s/ Kevin A. Melich
Mr. Kevin A. Melich, CFA Ms. Terry F. Bovarnick, CFA
Managing Partner and Managing Partner and
Portfolio Manager Portfolio Manager
4
CHARTWELL LARGE CAP VALUE FUND
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE CHARTWELL
LARGE CAP VALUE FUND VERSUS THE RUSSELL 1000 VALUE INDEX(1).
TOTAL RETURN(2)
1 YEAR ............................ (10.38%)
SINCE INCEPTION (10/1/99) ......... 2.39%
CHARTWELL LARGE CAP VALUE FUND RUSSELL 1000 VALUE INDEX
------------------------------ ------------------------
1 Oct 99 10,000 10,000
30 Nov 99 10,230 10,493
29 Feb 00 9,628 9,442
31 MAY 00 10,661 10,581
31 AUG 00 10,661 10,793
30 NOV 00 10,480 11,495
28 FEB 01 11,059 9,856
31 MAY 01 11,321 9,978
31 AUG 01 10,464 9,004
Past performance does not predict future performance.
(1) The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth
values.
(2) Average annual total return represents the average change in account value
over the periods indicated.
5
CHARTWELL SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 97.84% Market Value
--------------------------------------------------------------------------------
BASIC INDUSTRY: 16.49%
2,140 AptarGroup, Inc............................... $ 76,591
3,040 Arch Chemicals, Inc........................... 62,928
2,390 CLARCOR, Inc.................................. 63,956
3,610 Cytec Industries Inc.*........................ 119,202
4,700 Elcor Corp.................................... 93,530
1,800 H.B. Fuller Corp.............................. 96,606
3,010 Kaydon Corp................................... 70,886
2,200 Minerals Technologies, Inc.................... 96,140
5,900 NOVA Chemical Corp., ADR...................... 116,820
7,300 Packaging Corporation of America*............. 134,174
3,010 USFreightways Corporation..................... 109,564
----------
1,040,397
----------
BUSINESS SERVICES: 3.90%
1,400 Central Parking Corporation................... 28,560
2,700 G&K Services, Inc. - Class A.................. 75,465
2,400 Insight Enterprises, Inc.*.................... 45,000
5,440 MSC Industrial Direct Co.*.................... 96,832
----------
245,857
----------
CAPITAL SPENDING: 4.19%
4,320 Gardner Denver, Inc.*......................... 97,416
3,600 Littlefuse, Inc.*............................. 97,200
3,250 Regal-Beloit Corp............................. 69,713
----------
264,329
----------
CONSUMER CYCLICAL: 6.25%
3,800 ArvinMeritor, Inc............................. 67,260
2,090 Borg-Warner Automotive, Inc................... 106,799
5,130 Dal-Tile International Inc.*.................. 88,749
3,200 Harman International Industries, Inc.......... 131,520
----------
394,328
----------
See Notes to Financial Statements.
6
CHARTWELL SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001, Continued
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
CONSUMER SERVICES: 12.23%
2,000 Factory 2-U Stores, Inc.*..................... $ 44,720
1,900 Linens `n Things, Inc.*....................... 49,400
5,200 Oakley, Inc.*................................. 70,980
5,700 Orient-Express Hotels Ltd.*................... 114,456
8,220 Pier 1 Imports, Inc........................... 99,873
8,600 Spanish Broadcasting System, Inc.*............ 80,066
2,900 Speedway Motorsports, Inc.*................... 75,400
7,070 Station Casinos, Inc.*........................ 93,678
2,521 The Men's Wearhouse, Inc.*.................... 64,033
8,000 Unifi, Inc.*.................................. 78,480
----------
771,086
----------
CONSUMER STAPLES: 5.12%
2,460 Constellation Brands, Inc.*................... 104,181
3,960 Corn Products International, Inc.............. 130,680
4,000 Sensient Technologies Corp.................... 87,960
----------
322,821
----------
ENERGY: 3.86%
4,700 California Dive International, Inc............ 82,250
2,370 Lone Star Technologies, Inc.*................. 50,220
1,460 Louis Dreyfus Natural Gas Corp.*.............. 48,545
2,560 Precision Drilling Corp.*..................... 62,720
----------
243,735
----------
FINANCIAL SERVICES: 17.10%
3,300 AmerUs Group Co............................... 102,233
2,000 Annuity and Life Re (Holdings), Ltd........... 69,460
4,460 Community First Bankshares, Inc............... 108,601
3,010 Cullen/Frost Bankers, Inc..................... 107,608
3,730 Financial Federal Corporation*................ 102,762
3,000 Fulton Financial Corp......................... 64,830
4,504 Hudson United Bancorp......................... 121,383
1,300 StanCorp Financial Group, Inc................. 59,800
4,800 Trenwick Group Ltd............................ 67,632
2,300 Webster Financial Corp........................ 74,796
2,900 Westamerica Bancorp........................... 113,332
1,410 Wilmington Trust Corp......................... 85,968
----------
1,078,405
----------
See Notes to Financial Statements.
7
CHARTWELL SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001, Continued
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
HEALTHCARE: 3.50%
2,860 Edwards Lifesciences Corp.*................... $ 75,190
4,440 Renal Care Group, Inc.*....................... 145,454
----------
220,644
----------
REITS: 10.39%
2,920 Alexandria Real Estate Equities, Inc.......... 116,770
2,835 Arden Realty, Inc............................. 75,411
2,100 BRE Properties, Inc........................... 66,045
3,520 Home Properties of New York, Inc.............. 111,408
4,250 PS Business Parks, Inc........................ 120,148
2,700 Reckson Associates Realty Corp................ 61,830
3,550 SL Green Realty Corp.......................... 104,015
----------
655,627
----------
TECHNOLOGY: 8.45%
5,200 Asyst Technologies, Inc.*..................... 65,832
3,132 Avnet, Inc.................................... 75,419
1,300 DuPont Photomasks, Inc.*...................... 45,500
2,300 Electronics for Imaging, Inc.*................ 47,058
2,300 Fairchild Semiconductor
International, Inc. - Class A*.............. 49,611
5,500 General Semiconductor, Inc.* ................. 71,225
1,900 Park Electrochemical Corp..................... 47,595
1,800 Radiant Systems, Inc.*........................ 17,208
2,400 Sipex Corp.*.................................. 27,432
3,460 The Reynolds & Reynolds Company............... 86,154
----------
533,034
----------
UTILITIES: 6.36%
3,740 ALLETE........................................ 97,837
2,200 Commonwealth Tel Enterprises*................. 91,300
5,300 El Paso Electric Co.*......................... 78,970
2,500 OGE Energy Corp............................... 54,875
3,800 Vectren Corp.................................. 77,900
----------
400,882
----------
Total Common Stocks (Cost $5,675,060)......... $6,171,145
----------
See Notes to Financial Statements.
8
CHARTWELL SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001, Continued
--------------------------------------------------------------------------------
Shares SHORT-TERM INVESTMENTS: 3.07% Market Value
--------------------------------------------------------------------------------
193,357 Firstar Stellar Treasury Fund (Cost $193,357) $ 193,357
----------
Total Investments in Securities
(Cost $5,868,417): 100.91% 6,364,502
Liabilities in excess of Other Assets: (0.91% (57,150)
----------
Net Assets: 100.00%.......................... $ 6,307,352
===========
* Non-income producing security.
+ At August 31, 2001, the cost of securities for Federal tax purposes was
$5,871,152. Gross unrealized appreciation and depreciation were as follows:
Gross unrealized appreciation................. $ 704,726
Gross unrealized depreciation................. (211,376)
---------
Net unrealized appreciation.............. $ 493,350
=========
See Notes to Financial Statements.
9
CHARTWELL LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001
--------------------------------------------------------------------------------
Shares COMMON STOCKS: 98.13% Market Value
--------------------------------------------------------------------------------
BASIC INDUSTRY: 1.79%
9,480 Alcoa, Inc.................................... $ 361,378
2,770 Praxair, Inc.................................. 130,384
------------
491,762
------------
CAPITAL GOODS: 1.52%
10,125 General Electric Co........................... 414,923
------------
CONSUMER CYCLICAL: 2.08%
16,865 Starwood Hotels & Resorts Worldwide, Inc...... 570,880
------------
CONSUMER STAPLES: 12.37%
15,890 Anheuser-Busch Companies, Inc................. 683,906
11,370 Avon Products, Inc............................ 524,498
6,360 General Mills, Inc........................... 282,002
6,720 Kimberly-Clark Corp........................... 416,976
8,885 McGraw-Hill, Inc.............................. 526,436
20,380 Philip Morris Companies, Inc.................. 966,012
------------
3,399,830
------------
DEFENSE: 1.97%
26,700 Rockwell Collins, Inc......................... 542,544
------------
ENERGY: 17.39%
27,240 Baker Hughes, Inc............................. 897,285
10,754 El Paso Corp.................................. 522,537
10,200 Exelon Corp................................... 556,920
23,139 Exxon Mobil Corp.............................. 929,031
7,070 Schlumberger Ltd.............................. 346,430
32,835 The Williams Companies, Inc................... 1,068,779
14,550 USX-Marathon Group............................ 458,471
------------
4,779,453
------------
See Notes to Financial Statements.
10
CHARTWELL LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001, Continued
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
FINANCIAL: 15.12%
26,665 Citigroup, Inc................................ $ 1,219,924
12,587 Fleet Boston Financial Corp................... 463,579
22,540 MBNA Corp..................................... 783,490
7,605 Mellon Financial Corp......................... 268,076
6,090 Morgan Stanley Dean Witter & Co............... 324,902
26,044 U.S. Bancorp.................................. 631,307
10,085 Wells Fargo & Co.............................. 464,011
------------
4,155,289
------------
HEALTHCARE: 11.42%
11,065 American Home Products Corp................... 619,640
5,455 Baxter International Inc. .................... 281,478
10,350 Becton, Dickinson and Co...................... 371,876
7,945 Bristol-Myers Squibb Co....................... 446,032
24,285 Pfizer, Inc................................... 930,358
12,350 Pharmacia Corp................................ 489,060
------------
3,138,444
------------
INSURANCE/OTHER: 13.35%
18,660 ACE Ltd....................................... 618,952
2,194 American International Group, Inc............. 171,603
17,540 Freddie Mac................................... 1,102,915
10,550 J.P. Morgan Chase & Co........................ 415,670
8,160 Marsh & McLennan Companies, Inc............... 758,064
9,255 The Hartford Financial Services Group, Inc.... 599,724
------------
3,666,928
------------
PRODUCTS: 1.65%
14,040 Kraft Foods, Inc.............................. 452,790
------------
SERVICES: 1.74%
15,310 Carnival Corp.- Class A....................... 478,897
------------
See Notes to Financial Statements.
11
CHARTWELL LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS AT AUGUST 31, 2001, Continued
--------------------------------------------------------------------------------
Shares Market Value
--------------------------------------------------------------------------------
TECHNOLOGY: 11.60%
3,255 Agilent Technologies, Inc.*................... $ 86,257
12,500 Cadence Design Systems, Inc.*................. 274,750
8,950 Computer Sciences Corp.*...................... 336,520
15,390 Electronic Data Systems Corp.................. 907,702
8,820 International Business Machines Corp.......... 882,000
14,715 LSI Logic Corp.*.............................. 297,979
12,550 PerkinElmer, Inc.............................. 402,604
------------
3,187,812
------------
TELECOMMUNICATIONS: 4.76%
17,855 SBC Communications, Inc....................... 730,449
13,860 Sprint Corp................................... 323,492
19,720 WorldCom, Inc................................. 253,599
------------
1,307,540
------------
UTILITIES: 1.37%
7,515 Verizon Corp.................................. 375,750
------------
Total Common Stocks (Cost $27,814,722)........ 26,962,842
------------
SHORT-TERM INVESTMENTS: 4.01%
--------------------------------------------------------------------------------
1,102,027 Firstar Stellar Treasury Fund
(Cost $1,102,027)........................... $ 1,102,027
------------
Total Investments in Securities
(Cost $28,916,749+): 102.14%............... 28,064,869
Liabilities in excess of Other
Assets: (2.14%)............................ (588,363)
------------
Net Assets: 100.00%........................ $ 27,476,506
============
* Non-income producing security.
+ At August 31, 2001the cost of securities for Federal tax purposes was
$28,957,213. Gross unrealized appreciation and depreciation were as
follows:
Gross unrealized appreciation................. $ 431,510
Gross unrealized depreciation................. (1,323,854)
----------
Net unrealized depreciation.............. $ (892,344)
==========
See Notes to Financial Statements.
12
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
STATEMENTS OF ASSETS AND LIABILITIES AT AUGUST 31, 2001
--------------------------------------------------------------------------------
SMALL CAP LARGE CAP
VALUE FUND VALUE FUND
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value
(identified cost $5,868,417 and
$28,916,749, respectively) .................. $ 6,364,502 $ 28,064,869
Receivables:
Due from advisor ............................ 3,127 --
Dividends and interest ...................... 6,288 49,610
Fund shares sold ............................ -- 225
Investment securities sold .................. 44,838 668,153
Prepaid expenses .............................. 926 3,036
------------ ------------
Total assets ........................... 6,419,681 28,785,893
------------ ------------
LIABILITIES
Payables:
Due to administrator ........................ 2,548 4,754
Due to advisor .............................. -- 3,931
Investment securities purchased ............. 84,394 1,277,948
Accrued expenses .............................. 25,387 22,754
------------ ------------
Total liabilities ...................... 112,329 1,309,387
------------ ------------
NET ASSETS ..................................... $ 6,307,352 $ 27,476,506
============ ============
Net asset value and redemption price
per share [$6,307,352/434,770 and
$27,476,506/2,647,732 shares
outstanding; unlimited number of
shares (par value $0.01) authorized] ........... $ 14.51 $ 10.38
============ ============
COMPONENTS OF NET ASSETS
Paid-in capital ............................... $ 5,497,785 $ 28,241,763
Undistributed net investment income ........... 19,594 229,376
Accumulated net realized gain (loss)
on investments ............................... 293,888 (142,753)
Net unrealized appreciation/(depreciation)
on investments ............................... 496,085 (851,880)
------------ ------------
Net assets ............................. $ 6,307,352 $ 27,476,506
============ ============
See Notes to Financial Statements.
13
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2001
--------------------------------------------------------------------------------
SMALL CAP LARGE CAP
VALUE FUND VALUE FUND
--------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends ................................... $ 61,646 $ 344,021
Interest .................................... 6,874 31,341
----------- -----------
Total income ........................... 68,520 375,362
----------- -----------
Expenses
Advisory fees (Note 3) ...................... 31,727 96,984
Administration fees (Note 3) ................ 30,000 41,936
Professional fees ........................... 21,297 22,679
Fund accounting fee ......................... 20,497 25,255
Transfer agent fees ......................... 10,798 12,201
Custodian fees .............................. 7,301 16,413
Trustees' fees .............................. 4,300 4,700
Other ....................................... 2,500 3,200
Insurance fees .............................. 1,437 2,183
Reports to shareholders ..................... 1,300 675
Registration fees ........................... 673 4,141
----------- -----------
Total expenses ......................... 131,830 230,367
Less: advisory fee waiver and
absorption (Note 3) .................. (88,059) (84,611)
----------- -----------
Net expenses ........................... 43,771 145,756
----------- -----------
Net investment income ................ 24,749 229,606
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from security
transactions ................................ 334,147 (74,012)
Net change in unrealized appreciation /
(depreciation) on investments ............... 333,464 (1,124,787)
----------- -----------
Net realized and unrealized gain
(loss) on investments .................... 667,611 (1,198,799)
----------- -----------
Net Increase (Decrease) in
Net Assets Resulting
from Operations ...................... $ 692,360 $ (969,193)
=========== ===========
See Notes to Financial Statements.
14
CHARTWELL SMALL CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
YEAR OCT. 1, 1999*
ENDED THROUGH
AUG. 31, 2001 AUG. 31, 2000
--------------------------------------------------------------------------------
NET INCREASE IN ASSETS FROM OPERATIONS
Net investment income .......................... $ 24,749 $ 3,837
Net realized gain from security transactions ... 334,147 55,508
Net change in unrealized appreciation
on investments ................................ 333,464 162,621
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... 692,360 221,966
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .......................... (7,779) (1,213)
Net realized gain on securities
transactions .................................. (95,767) --
----------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS .......................... (103,546) (1,213)
----------- -----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase in net assets derived from
net change in outstanding shares (a) .......... 4,333,393 1,164,392
----------- -----------
TOTAL INCREASE IN NET ASSETS .............. 4,922,207 1,385,145
NET ASSETS
Beginning of period .............................. 1,385,145 --
----------- -----------
END OF PERIOD** .................................. $ 6,307,352 $ 1,385,145
=========== ===========
(a) A summary of share transactions is as follows:
YEAR ENDED OCT. 1, 1999* TO
AUG. 31, 2001 AUG. 31, 2000
----------------------- ------------------------
SHARES PAID IN CAPITAL SHARES PAID IN CAPITAL
------ --------------- ------ ---------------
Shares sold ................. 320,335 $ 4,255,170 135,438 $ 1,429,985
Shares issued in reinvestment
of distributions ........... 5,826 78,235 -- --
Shares redeemed ............. (1) (12) (26,828) (265,593)
------- ----------- ------- -----------
Net increase ................ 326,160 $ 4,333,393 108,610 $ 1,164,392
======= =========== ======= ===========
* Commencement of operations.
** Includes undistributed net investment income of $19,594 and $2,624 in 2001
and 2000, respectively.
See Notes to Financial Statements.
15
CHARTWELL LARGE CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
YEAR OCT. 1, 1999*
ENDED THROUGH
AUG. 31, 2001 AUG. 31, 2000
--------------------------------------------------------------------------------
NET (DECREASE)/INCREASE IN ASSETS FROM:
OPERATIONS
Net investment income ........................ $ 229,606 $ 66,932
Net realized loss from security transactions . (74,012) (18,777)
Net change in unrealized (depreciation)
appreciation on investments ................. (1,124,787) 272,907
------------ ------------
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ............ (969,193) 321,062
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................ (64,746) (2,242)
Net realized gain on securities transactions . (50,138) --
------------ ------------
TOTAL DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS ........................... (114,884) (2,242)
------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase in net assets derived from net
change in outstanding shares (a) ............ 19,664,932 8,576,831
------------ ------------
TOTAL INCREASE IN NET ASSETS ............ 18,580,855 8,895,651
NET ASSETS
Beginning of period ............................ 8,895,651 --
------------ ------------
END OF PERIOD** ................................ $ 27,476,506 $ 8,895,651
============ ============
(a) A summary of share transactions is as follows:
YEAR ENDED OCT. 1, 1999* TO
AUG. 31, 2001 AUGUST 31, 2000
------------------------- -----------------------
SHARES PAID IN CAPITAL SHARES PAID IN CAPITAL
------ --------------- ------ ---------------
Shares sold .......... 1,828,348 $ 19,847,429 958,809 $ 9,764,051
Shares issued in
reinvestment of
distributions ....... 10,221 114,884 -- --
Shares redeemed ...... (27,489) (297,381) (122,157) (1,187,220)
--------- ------------ -------- ------------
Net increase ......... 1,811,080 $ 19,664,932 836,652 $ 8,576,831
========= ============ ======== ============
* Commencement of operations.
** Includes undistributed net investment income of $229,367 and $64,690 in
2001 and 2000, respectively.
See Notes to Financial Statements.
16
CHARTWELL SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
YEAR OCT. 1, 1999*
ENDED THROUGH
AUG. 31, 2001 AUG. 31, 2000
--------------------------------------------------------------------------------
Net asset value, beginning of period ......... $ 12.75 $ 10.00
--------- ---------
Income from investment operations:
Net investment income ...................... 0.07 0.05
Net realized and unrealized gain on
investments .............................. 2.33 2.73
--------- ---------
Total from investment operations ............. 2.40 2.78
--------- ---------
Less distributions:
From net investment income ................. (0.05) (0.03)
From net realized gains .................... (0.59) --
--------- ---------
Total distributions .......................... (0.64) (0.03)
--------- ---------
Net asset value, end of period ............... $ 14.51 $ 12.75
========= =========
Total return ................................. 19.20% 27.82%+
Ratios/supplemental data:
Net assets, end of period (thousands) ........ $ 6,307 $ 1,385
Ratio of expenses to average net assets:
Before expense reimbursement ............... 3.31% 15.23%**
After expense reimbursement ................ 1.10% 1.10%**
Ratio of net investment income to
average net assets
After expense reimbursement ................ 0.62% 0.48%**
Portfolio turnover rate ...................... 68.13% 68.77%
* Commencement of operations.
** Annualized.
+ Not Annualized.
See Notes to Financial Statements.
17
CHARTWELL LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
YEAR OCT. 1, 1999*
ENDED THROUGH
AUG. 31, 2001 AUG. 31, 2000
--------------------------------------------------------------------------------
Net asset value, beginning of period .............. $ 10.63 $ 10.00
-------- --------
Income from investment operations:
Net investment income ........................... 0.04 0.11
Net realized and unrealized (loss) gain
on investments ................................. (0.23) 0.55
-------- --------
Total from investment operations .................. (0.19) 0.66
-------- --------
Less distributions:
From net investment income ..................... (0.03) (0.03)
From net realized gains ........................ (0.03) --
-------- --------
Total distributions ............................... (0.06) (0.03)
-------- --------
Net asset value, end of period .................... $ 10.38 $ 10.63
======== ========
TOTAL RETURN ...................................... (1.85%) 6.61%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (thousands) ............. $ 27,477 $ 8,896
Ratio of expenses to average net assets:
Before expense reimbursement .................... 1.18% 2.89%**
After expense reimbursement ..................... 0.75% 0.75%**
Ratio of net investment income to average
net assets
After expense reimbursement ..................... 1.18% 1.38%**
Portfolio turnover rate ........................... 173.68% 169.14%
* Commencement of operations.
** Annualized.
+ Not Annualized.
See Notes to Financial Statements.
18
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS AT AUGUST 31, 2001
--------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Chartwell Large Cap Value Fund and Chartwell Small Cap Value Fund (the
"Funds") are each 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. Each Fund's
investment objective is growth of capital, with a secondary objective to provide
current income.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles.
A. SECURITY VALUATION: The Funds' 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 Funds' 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
19
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------
shareholders from net investment income and net realized gains are
determined in accordance with Federal income tax regulations which
differs from generally accepted accounting principles.
D. USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net
assets during the reporting period. Actual results could differ from
those estimates.
NOTE 3 - INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the year ended August 31, 2001, Chartwell Investment Partners (the
"Advisor") provided the Funds 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 each
Fund. As compensation for its services, the Advisor is entitled to a monthly fee
at the annual rate of 0.50% based upon the average daily net assets of the
Chartwell Large Cap Value Fund and 0.80% based upon the average daily net assets
of the Chartwell Small Cap Value Fund. For the year ended August 31, 2001, the
Chartwell Large Cap Value Fund and the Chartwell Small Cap Value Fund incurred
$96,984 and $31,727, respectively, in Advisory Fees.
The Funds are responsible for their own operating expenses. The Advisor has
agreed to reduce fees payable to it by each Fund and to pay each Fund's
operating expenses to the extent necessary to limit each Fund's aggregate annual
operating expenses to 0.75% of average net assets (the "expense cap") for the
Chartwell Large Cap Value Fund and 1.10% of average net assets (the "expense
cap") for the Chartwell Small Cap Value Fund. Any such reductions made by the
Advisor in its fees or payment of expenses which are a 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 the Fund's 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 year ended August 31, 2001, the Advisor
reduced its fees and absorbed Fund expenses in the amount of $84,611 for the
Chartwell Large Cap Value Fund and $88,059 for the Chartwell Small Cap Value
20
CHARTWELL LARGE CAP VALUE FUND
CHARTWELL SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
--------------------------------------------------------------------------------
Fund; no amounts were reimbursed to the Advisor. Cumulative expenses subject to
recapture pursuant to the aforementioned conditions amounted to $187,827 for the
Chartwell Large Cap Value Fund and $201,173 for the Chartwell Small Cap Value
Fund at August 31, 2001, which expires in 2008.
Investment Company Administration, L.L.C. (the "Administrator") acts as the
Funds' 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 Funds' custodian, transfer agent and accountants;
coordinates the preparation and payment of the Funds' expenses and reviews the
Funds' 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 Funds'
principal underwriter in a continuous public offering of the Funds' shares. The
Distributor is an affiliate of the Administrator.
Certain officers of the Funds are also officers and/or directors of the
Administrator and the Distributor.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
For the year ended August 31, 2001, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, for the Chartwell
Large Cap Value Fund were $52,702,177 and $33,098,529, respectively.
For the year ended August 31, 2001, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, for the Chartwell
Small Cap Value Fund were $6,766,826 and $2,597,026, respectively.
NOTE 6 - INCOME TAXES
As of August 31, 2001, the Chartwell Large Cap Value Fund had tax basis
capital losses of $102,289 which may be carried over to offset future capital
gains expiring in 2009.
21
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
CHARTWELL SMALL CAP VALUE FUND
CHARTWELL LARGE CAP VALUE FUND
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Chartwell Small Cap Value Fund and
Chartwell Large Cap Value Fund, each a series of Advisors Series Trust (the
"Funds") at August 31, 2001, and the results of each of their operations for the
year then ended, the changes in each of their net assets and the financial
highlights for the year then ended and for the period October 1, 1999
(commencement of operations) through August 31, 2000, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at August 31, 2001 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
October 12, 2001
22
ADVISOR
Chartwell Investment Partners
1235 Westlakes Drive
Suite 330
Berwyn, PA 19312
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road
Suite 261E
Phoenix, AZ 85018
TRANSFER AGENT
ICA Fund Services Corp.
4455 East Camelback Road
Suite 261E
Phoenix, AZ 85018
CUSTODIAN
Firstar Institutional Custody Services
425 Walnut Street
Cincinnati, OH 45202
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
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.