-----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, P6rdKv2gxJvpOKkUk4gd3IsZkiPlKtj2xvOsOFxkwJ5ifL8+VneCfRf8WUi8KqH3 5wcYMyXiNo8aOXvvHPZ68w== 0000950147-99-000656.txt : 19990624 0000950147-99-000656.hdr.sgml : 19990624 ACCESSION NUMBER: 0000950147-99-000656 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990623 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADVISORS SERIES TRUST CENTRAL INDEX KEY: 0001027596 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07959 FILM NUMBER: 99650812 BUSINESS ADDRESS: STREET 1: 2025 E FINANCIAL WAY SUITE 101 CITY: GLENDORA STATE: CA ZIP: 91741 BUSINESS PHONE: 8188521033 MAIL ADDRESS: STREET 1: 2025 E FINANCIAL WAY STREET 2: SUITE 101 CITY: GLENDORA STATE: CA ZIP: 91741 N-30D 1 SEMI-ANNUAL REPORT FOR PERIOD ENDING 4-30-99 ELC EDGAR LOMAX VALUE FUND SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 1999 EDGAR LOMAX VALUE FUND Semi-Annual Report April 30, 1999 Dear fellow shareholder: We are pleased to bring you up-to-date on the performance and steady growth of the Edgar Lomax Value Fund as of April 30, 1999. From its "kick off" on December 12, 1997 through the end of this past April, the Fund returned an annualized 19.4% while its assets grew to $3.8 million. The timing of this report couldn't be better. The stock market--as represented by the S&P 500 Index--rose to record levels over the past three years, levels we argue are supported by neither the earnings nor the underlying assets of many of its companies. Further, these gains accrued predominantly to a narrow list of very-large, "growth" stocks. Our stocks and "value" stocks in general--as measured by the S&P/Barra Value Index--were tossed aside as investors feared missing out on what appeared to be easy money in this small set of favored stocks. However, we were very comfortable that investors would inevitably return to our stocks, many of which are the oldest and most experienced companies in the U.S. We firmly believed that their relative safety and bargain prices would not forever remain unappreciated. Our patience was rewarded during April. So much unrecognized value had built up in our portfolio that the prices of its stock holdings literally exploded during the month of April. Specifically, the Fund gained 15.1% during the month, while the S&P 500 Index gained only 3.9% and our "value" benchmark, the S&P/Barra Value Index, returned 8.6%. As a result, our return of 13.3% for the first four months of 1999 represents a clear advantage over the S&P 500's 9.0% return and the S&P/Barra Value's gain of 11.7%. While we can't make any guarantees, we hope April's shift is just a taste of things to come. The swing from one group of stocks to another reminds us that investing in the stock market, despite its historic climb, is not without risk. However, minimizing risk is a fundamental goal of our stock-selection strategy. First, we select stocks only from those comprising the S&P 500 Index, consequently limiting our portfolios to, for all practical purposes, the very largest publicly-owned companies. We then systematically eliminate those companies we believe have taken on too much debt. A resulting portfolio should, therefore, have a more favorable risk profile than that of the S&P 500 itself. Finally, we absolutely require that our companies pay dividends. We greatly appreciate the opportunity to be of service. You will continue to receive our very best efforts in the investment of your hard-earned money. Cordially, /s/ Randall R. Eley Randall R. Eley EDGAR LOMAX VALUE FUND Footnotes: The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to represent the broad domestic stock market. The S&P/Barra Value Index is an unmanaged capitalization-weighted index of stocks in the S&P 500 index with lower price-to-book ratios. The number of stocks is such that the S&P/Barra Value's total market capitalization is approximately 50% of that of the S&P 500. The Edgar Lomax Value Fund's annual average total return from inception on December 12, 1997 through March 31, 1999 was 10.92% (after capping expenses at 1.75% of average net assets annually) compared to the S&P 500 Index's and S&P Barra Value Index's average annual total returns of 37.46% and 20.15%, respectively, for the same period. Performance Figures of the Fund and indexes referenced represent past performance and are not indicative of future performance of the Fund or the indexes. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Indexes do not incur expenses and are not available for direct investment. The Fund is distributed by First Fund Distributors, Inc., Phoenix, AZ. Member NASD 2 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 99.92% Market Value - -------------------------------------------------------------------------------- AEROSPACE/DEFENSE: 3.33% 1,800 General Dynamics Corporation.......................... $ 126,450 ----------- AUTO PARTS & EQUIPMENT: 4.82% 3,200 The Goodyear Tire & Rubber Company.................... 183,000 ----------- AUTOMOBILES: 4.51% 1,925 General Motors Corporation............................ 171,205 ----------- BANKS - MONEY CENTER: 4.44% 1,250 J.P. Morgan & Co., Incorporated....................... 168,438 ----------- BANKS - MAJOR REGIONAL: 2.96% 2,600 Wells Fargo & Company................................. 112,288 ----------- CHEMICALS: 9.81% 2,500 E. I. du Pont de Nemours and Company.................. 176,563 1,125 The Dow Chemical Company.............................. 147,586 925 Union Carbide Corporation............................. 47,984 ----------- 372,133 ----------- CHEMICALS - SPECIALTY: 2.39% 2,300 International Flavors & Fragrances, Inc............... 90,850 ----------- COMMUNICATIONS EQUIPMENT: 2.50% 2,750 Harris Corporation.................................... 95,047 ----------- ELECTRIC COMPANIES: 5.00% 2,275 American Electric Power Company, Inc.................. 94,270 3,525 The Southern Company.................................. 95,395 ----------- 189,665 ----------- ELECTRICAL EQUIPMENT: 3.43% 1,375 Honeywell, Inc........................................ 130,281 ----------- 3 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- ENGINEERING AND CONSTRUCTION: 2.07% 2,350 Fluor Corporation..................................... $ 78,431 ----------- FINANCIAL - DIVERSIFIED: 7.61% 1,000 American Express Company.............................. 130,688 2,100 Citigroup Inc......................................... 158,025 ----------- 288,713 ----------- INSURANCE - MULTI-LINE: 6.00% 1,325 CIGNA Corporation..................................... 115,523 1,900 The Hartford Financial Services Group, Inc............ 111,981 ----------- 227,504 ----------- LEISURE TIME - PRODUCTS: 2.66% 4,200 Brunswick Corporation................................. 100,800 ----------- MACHINERY - DIVERSIFIED: 4.41% 2,600 Caterpillar Inc....................................... 167,375 ----------- MANUFACTURING - DIVERSIFIED: 5.51% 2,350 Minnesota Mining and Manufacturing Company............ 209,150 ----------- OIL - DOMESTIC INTEGRATED: 3.65% 1,650 Atlantic Richfield Company............................ 138,497 ----------- OIL - INTERNATIONAL INTEGRATED: 5.85% 1,100 Chevron Corporation................................... 109,725 1,350 Exxon Corporation..................................... 112,134 ----------- 221,859 ----------- PHOTOGRAPHY/IMAGING: 2.50% 1,275 Eastman Kodak Company................................. 95,147 ----------- RAILROADS: 2.76% 3,200 Norfolk Southern Corporation.......................... 104,600 ----------- RETAIL - SPECIALTY/APPAREL: 4.09% 3,550 The Limited, Inc...................................... 155,313 ----------- 4 EDGAR LOMAX VALUE FUND SCHEDULE OF INVESTMENTS AT APRIL 30, 1999 (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- RETAIL - GENERAL MERCHANDISE: 3.76% 3,100 Sears, Roebuck and Co................................. $ 142,600 ----------- TELEPHONE: 3.04% 2,000 Bell Atlantic Corporation............................. 115,250 ----------- TOBACCO: 2.82% 3,050 Philip Morris Companies Inc........................... 106,940 ----------- Total common stocks (cost $3,261,382)................. 3,791,536 ----------- Principal Amount SHORT-TERM INVESTMENTS: 0.24% - -------------------------------------------------------------------------------- $8,907 Star Treasury Fund 4.84%.............................. 8,907 ----------- Total Investments in Securities (cost $3,150,561): 100.16%............................................. 3,800,443 Liabilities in excess of other assets: (0.16)%........ (5,983) ----------- TOTAL NET ASSETS: 100.00% ............................ $ 3,794,460 =========== See accompanying Notes to Financial Statements. 5 EDGAR LOMAX VALUE FUND STATEMENT OF ASSETS AND LIABILITIES AT APRIL 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (identified cost of $3,270,289)........................................... $ 3,800,443 Receivables Due from Advisor..................................... 3,258 Dividends and interest............................... 3,873 Prepaid expenses .......................................... 3,388 ----------- Total assets................................... 3,810,962 ----------- LIABILITIES Payables Administration fees.................................. 2,466 Accrued expenses........................................... 14,036 ----------- Total liabilities.............................. 16,502 ----------- NET ASSETS ..................................................... $ 3,794,460 =========== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($3,794,460/300,401 shares outstanding; unlimited number of shares authorized, par value $0.01).... $ 12.63 =========== COMPONENTS OF NET ASSETS Paid-in capital............................................ $ 3,041,358 Net investment income in excess of dividends............... 12,760 Accumulated net realized gain on investments............... 210,188 Net unrealized appreciation on investments ................ 530,154 ----------- Net assets........................................... $ 3,794,460 =========== See accompanying Notes to Financial Statements. 6 EDGAR LOMAX VALUE FUND STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends............................................ $ 45,568 Interest............................................. 646 ----------- Total income................................... 46,214 ----------- Expenses Advisory fees (Note 3)............................... 16,956 Administration fees (Note 3)......................... 14,876 Professional fees.................................... 8,927 Fund accounting fees................................. 8,023 Transfer agent fees.................................. 6,447 Reports to shareholders.............................. 3,472 Custody fees......................................... 3,281 Trustee fees......................................... 1,893 Other ............................................... 1,445 Registration fees.................................... 1,111 Insurance expense.................................... 1,015 ----------- Total expenses................................. 67,446 Less, advisory fee waiver and absorption (Note 3)....................................... (37,772) ----------- Net expenses................................... 29,674 ----------- Net investment income...................... 16,540 ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain from security transactions............... 211,499 Net change in unrealized appreciation on investments....... 362,608 ----------- Net realized and unrealized gain on investments...... 574,107 ----------- Net Increase in Net Assets Resulting from Operations............................... $ 590,647 =========== See accompanying Notes to Financial Statements. 7 EDGAR LOMAX VALUE FUND STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------ Six Months December 12, 1997* Ended through April 30, 1999# October 31, 1998 - ------------------------------------------------------------------------------------ INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ........................ $ 16,540 $ 19,206 Net realized gain on security transactions ... 211,499 11,374 Net change in unrealized appreciation on investments ............................. 362,608 167,546 ----------- ----------- Net increase in net assets resulting from operations ........................ 590,647 198,126 ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS From net investment income ................... (21,112) (1,875) From net realized gains ...................... (12,684) -- ----------- ----------- Total dividends and distibution to shareholders ........................... (33,796) (1,875) CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from net change in outstanding shares (a) ....... (56,225) 3,097,583 ----------- ----------- Total increase in net assets ................. 500,626 3,293,834 NET ASSETS Beginning of period ............................. 3,293,834 0 ----------- ----------- End of period ................................... $ 3,794,460 $ 3,293,834 =========== ===========
(a) A summary of capital shares transactions is as follows: Six Months December 12, 1997* Ended through April 30, 1999# October 31, 1998 -------------------------------------------------------- Shares Paid in Capital Shares Paid in Capital -------------------------------------------------------- Shares sold ......... 7,352 $ 81,411 334,640 $ 3,410,803 Shares issued on reinvestments of distributions 782 8,441 185 1,875 Shares redeemed ..... (13,089) (146,077) (29,369) (315,095) ------- ---------- ------- ----------- Net increase ........ (4,955) $ (56,225) 305,456 $ 3,097,583 ======= ========== ======= =========== * Commencement of operations. # Unaudited. See accompanying Notes to Financial Statements. 8 EDGAR LOMAX VALUE FUND FINANCIAL HIGHLIGHTS FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------ Six Months December 12, 1997* Ended through April 30, 1999# October 31, 1998 - ----------------------------------------------------------------------------------------- Net asset value, beginning of period ................ $ 10.78 $ 10.00 --------- --------- Income from investment operations: Net investment income ......................... 0.07 0.07 Net realized and unrealized gain on investments 1.89 0.72 --------- --------- Total from investment operations .................... 1.96 0.79 --------- --------- Less distributions: From net investment income .................... (0.07) (0.01) From net realized gains ....................... (0.04) -- --------- --------- Total distributions ................................. (0.11) (0.01) Net asset value, end of period ...................... $ 12.63 $ 10.78 ========= ========= Total return ........................................ 18.36%++ 7.89%++ Ratios/supplemental data: Net assets, end of period (thousands) ............... $ 3,794 $ 3,294 Ratio of expenses to average net assets: Before expense reimbursement .................. 3.97%+ 4.67%+ After expense reimbursement ................... 1.75%+ 1.75%+ Ratio of net investment income to average net assets: After expense reimbursement ................... 0.97%+ 0.81%+ Portfolio turnover rate ............................. 42.87% 32.71%
* Commencement of operations. ++ Annualized. + Not annualized. # Unaudited. 9 EDGAR LOMAX VALUE FUND NOTES TO FINANCIAL STATEMENTS AT APRIL 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Edgar Lomax Value Fund (the "Fund") is a series of shares 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 December 12, 1997. The investment objective of the Fund is to seek growth of capital, with a secondary objective of providing income. The Fund seeks to achieve its objective by investing primarily in equity securities that it believes are undervalued, reasonably priced and have prospects for continued consistent growth. 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 market value. Securities listed on an exchange or quoted on a National Market System are valued at the last sale price. Other securities are valued at the mean between the last bid and asked prices. Securities for which market quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees. Short-term investments are valued at amortized cost, which approximates market value. B. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. C. SECURITY TRANSACTIONS, DIVIDENDS AND DISTRIBUTIONS: Security transactions are accounted for on the trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Realized gains and losses on securities sold are determined on the basis of identified cost. D. 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 period ended April 30, 1999, The Edgar Lomax Company (the "Advisor") provided the Fund with investment management services under an Investment Advisory Agreement. The Advisor furnished all investment advice, office space, facilities, and provides most of the personnel needed by the Fund. As compensation for its services, the Advisor is entitled to a monthly fee at the annual rate of 1.00% based upon the average daily net assets of the Fund. For the period ended April 30, 1999, the Fund incurred $16,956 in Advisory Fees. 10 EDGAR LOMAX VALUE FUND NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED - -------------------------------------------------------------------------------- The Fund is responsible for its own operating expenses. The Advisor has agreed to reduce fees payable to it by the Fund and to pay Fund operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 1.75% of average net assets (the "expense cap"). Any such reductions made by the Advisor in its fees or payment of expenses which are the Fund's obligation are subject to reimbursement by the Fund to the Advisor, if so requested by the Advisor, in subsequent fiscal years if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the applicable limitation on Fund expenses. The Advisor is permitted to be reimbursed only for fee reductions and expense payments made in the previous three fiscal years, but is permitted to look back five years and four years, respectively, during the initial six years and seventh year of the Fund's operations. Any such reimbursement is also contingent upon Board of Trustees review and approval at the time the reimbursement is made. Such reimbursement may not be paid prior to the Fund's payment of current ordinary operating expenses. For the period ended April 30, 1999, the Advisor reduced its fees and absorbed Fund expenses in the amount of $37,772; no amounts were reimbursed to the Advisor. Investment Company Administration, L.L.C. (the "Administrator") acts as the Fund's Administrator under an Administration Agreement. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund; prepares reports and materials to be supplied to the Trustees; monitors the activities of the Fund's custodian, transfer agent and accountants; coordinates the preparation and payment of the Fund's expenses and reviews the Fund's expense accruals. For its services, the Administrator receives a monthly fee at the annual rate of 0.20% of average daily net assets, subject to a minimum fee of $30,000 annually. 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 - SECURITIES TRANSACTIONS For the period ended April 30, 1999, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $1,454,012 and $1,494,156, respectively. 11 ADVISOR The Edgar Lomax Company 6564 Loisdale Court, Suite 310 Springfield, VA 22150 www.edgarlomax.cihost.com DISTRIBUTOR First Fund Distributors, Inc. 4455 E. Camelback Rd., Ste. 261E Phoenix, AZ 85018 CUSTODIAN Firstar Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 TRANSFER AGENT American Data Services, Inc. P.O. Box 5536 Hauppauge, NY 11788-0132 (800) 385-7003 AUDITORS McGladrey & Pullen LLP 555 Fifth Avenue, 8th Floor New York, NY 10017-2416 LEGAL COUNSEL Paul, Hastings, Janofsky & Walker LLP 345 California Street, 29th Floor San Francisco, CA 94104 -----END PRIVACY-ENHANCED MESSAGE-----