-----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, NRQaWELibF8G2yEQ6Vu2Ig0albTgd5bIEuRuUsc3ehnPAw61TFnG4SbS9hh4Z2O0 wTePlLDTORBoXxI2vzJSNQ== 0000950147-99-001035.txt : 19990920 0000950147-99-001035.hdr.sgml : 19990920 ACCESSION NUMBER: 0000950147-99-001035 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990917 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: 99713361 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 ANNUAL REPORT FOR THE YEAR ENDED 6-30-99 [KAMINSKI LOGO] ANNUAL REPORT JUNE 30, 1999 MANAGED BY KAMINSKI ASSET MANAGEMENT, INC. 319 1ST AVENUE NORTH, SUITE 300 MINNEAPOLIS, MN 55401 August 26, 1999 Dear Shareholder, We are pleased to bring you this annual report for the Kaminski Poland Fund covering the period ending June 30, 1999. Over the past year, Poland has offered much in the way of opportunities for the portfolio. The ride, however, was not without some stress brought on by unforeseen circumstances and events beyond our control. Russia's economic collapse in August of last year is a prime example. However, with the strength and resilience of the Polish market, coupled with our asset management objectives, the Poland Fund rallied back with vigor. As of this report, the Kaminski Poland Fund - Class I posted a calendar 1999 return of 26.70%, while the Class A shares had a return of 15.88%* since the inception date of March 18, 1999. Our benchmark, the WIG Index, produced a return of 15.43% for the same period. This same strength has brought us from the depths of negative double-digit returns earlier this year, to a June 1999 year-end total return of (5.09)% for the Class I shares. Over the course of the last year, we saw a large percentage of our holdings prosper due to strong performances, solid management, and prudent sector weightings. Holdings performing below our expectations were a result of not only the economic collapse in Russia, but in large part due to corporate consolidations at arguably low valuations. As the Polish market continues to mature, however, mergers and acquisitions going forward will hopefully prove profitable for the Fund due to more sophisticated players, improved accounting methods, and higher valuations. Commensurate with this maturation comes the improved perception by foreign investors towards Poland. The future is bright. A testament to the opportunities in Poland lie in the fact that since our last annual report, numerous U.S. companies have either entered Poland's market or are expanding existing operations. The Polish market is ripe with opportunity. Over the course of the next several years, we will witness Poland continuing to strive for expanded free market trade resulting in exponential growth. With Poland's entrance into the EU in the early 2000's, the anticipated doubling of her market capitalization in 3-5 years, and the world's focus and preoccupation with "Globalization", as managers of the Kaminski Poland Fund, we feel that Poland remains truly one of the brightest emerging/developing market plays today. Cordially, /s/ M.G. Kaminski M.G. Kaminski * Load-adjusted return. For Class I shares, the average annual total return from inception (July 9, 1997) to June 30, 1999 was (21.70)%. Past performance is not indicative of future performance. Fund share values will fluctuate so that your shares, when redeemed, may be worth more or less than your original investment. KAMINSKI POLAND FUND Comparison of the change in value of a $10,000 investment in the Kaminski Poland Fund - Class I versus the WIG Index of the Warsaw Stock Exchange. Kaminski Poland Fund - Class I WIG Index ------------------------------ --------- 11-Jul-97 10,000 10,000 30-Sep-97 9,720 11,042 31-Dec-97 9,060 9,264 31-Mar-98 9,870 10,651 30-Jun-98 8,240 9,934 30-Sep-98 6,020 7,730 31-Dec-98 6,180 8,082 31-Mar-99 6,480 8,925 30-Jun-99 7,830 10,627 Past performance is not predictive of future performance. WIG Index: The Warsaw Stock Exchange main market index. An unmanaged index of 117 companies based on market capitalizations. Companies held by the Fund will not be identical to those held by the index. 2 KAMINSKI POLAND FUND SCHEDULE OF INVESTMENTS AT JUNE 30, 1999 - -------------------------------------------------------------------------------- Shares COMMON STOCKS: 86.45% Market Value - -------------------------------------------------------------------------------- BUILDING AND CONSTRUCTION: 10.82% 16,000 Budimex S.A.*.......................................... $ 93,797 4,850 Exbud S.A.*............................................ 37,827 13,750 Mostostal Krakow S.A.*................................. 25,759 9,500 Mostostal Zabrze S.A................................... 30,025 31,700 Mostostal - Export S.A................................. 39,995 ---------- 227,403 ---------- CHEMICALS - DIVERSIFIED: 3.59% 19,500 Huta Olawa S.A......................................... 37,773 19,500 Polifarb-Cieszyn Wroclaw S.A.*......................... 37,774 ---------- 75,547 ---------- COMMERCIAL BANKS: 19.82% 3,825 Bank Handlowy W Warszawie.............................. 53,134 2,000 Bank Ochrony Srodowiska S.A.*.......................... 32,115 1,000 Bank Przemyslowo - Handlowy S.A.*...................... 51,486 39,500 Big Bank Gdanski S.A................................... 87,590 8,150 Grupa Pekao S.A.*...................................... 94,517 21,000 Kredyt Bank PBI S.A.................................... 97,952 ---------- 416,794 ---------- CONGLOMERATES: 11.44% 17,000 Elektrim Spolka Akcyjna S.A............................ 240,482 ---------- FOOD - MISCELLANEOUS/DIVERSIFIED: 6.29% 19,500 Agros Holding S.A.*.................................... 132,208 ---------- MEDICAL - DRUGS: 5.65% 5,000 Polfa Kutno*........................................... 72,642 4,550 Polska Grupa Farmaceutyczna*........................... 46,157 ---------- 118,799 ---------- METAL - DIVERSIFIED: 1.65% 5,500 KGHM Polska Miedz S.A.*................................ 34,626 ---------- See Notes to Financial Statements. 3 KAMINSKI POLAND FUND SCHEDULE OF INVESTMENTS AT JUNE 30, 1999, CONTINUED - -------------------------------------------------------------------------------- Shares Market Value - -------------------------------------------------------------------------------- MULTI-LINE INSURANCE: 6.05% 47,000 Polisa S.A............................................. $ 40,730 4,400 Tuir Warta S.A......................................... 86,354 ---------- 127,084 ---------- TECHNOLOGY: 8.45% 51 Comarch S.A.*.......................................... 2,080 6,000 Computer Service Support S.A.*......................... 41,291 5,400 Optimus S.A............................................ 64,965 2,000 Softbank S.A.*......................................... 69,328 ---------- 177,664 ---------- TELECOMMUNICATIONS: 3.33% 10,000 Telekomunikacja Polska - GDR........................... 70,093 ---------- TELEVISION: 9.36% 10,500 @Entertainment, Inc.*.................................. 196,875 ---------- Total Investments in Securities (cost $1,848,016)+: 86.45% .......................... $1,817,575 Cash and Other Assets less Liabilities: 13.55%......... 284,912 ---------- TOTAL NET ASSETS: 100.00% ............................. $2,102,487 ========== * Denotes a non-income producing security. + At June 30, 1999, the cost of securities for Federal tax purposes was the same as the basis for financial reporting. Unrealized appreciation and depreciation of securities and foreign currency were as follows: Gross unrealized appreciation.......................... $ 325,825 Gross unrealized depreciation.......................... (359,177) ---------- Net unrealized depreciation.......................... $ (33,352) ========== See Notes to Financial Statements. 4 KAMINSKI POLAND FUND STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1999 - ------------------------------------------------------------------------------- ASSETS Investments in securities, at value (cost $1,848,016) .... $ 1,817,575 Cash .................................................... 246,646 Receivables: Due from Advisor ................................... 13,362 Dividends .......................................... 8,023 Deferred organization costs .............................. 21,525 Prepaid expenses and other assets ........................ 31,598 ----------- Total assets ................................. 2,138,729 ----------- LIABILITIES Payable for securities purchased: ........................ 611 Accrued expenses ......................................... 35,631 ----------- Total liabilities ............................ 36,242 ----------- NET ASSETS ..................................................... $ 2,102,487 =========== COMPONENTS OF NET ASSETS Paid-in capital .......................................... $ 2,319,152 Accumulated net realized loss on investments ............. (183,313) Net unrealized depreciation on investments ............... (33,352) ----------- Net assets ................................... $ 2,102,487 =========== Net Assets: Class A Shares ........................................... $ 105,940 Class I Shares ........................................... 1,996,547 ----------- $ 2,102,487 =========== CLASS A SHARES Net asset value, offering and redemption price per share ($105,940/13,559 shares outstanding; unlimited number of shares authorized, par value $.01) ... $ 7.81 =========== Maximum Public Offering Price per Share (net asset value $7.81/.9425) ............................ $ 8.29 =========== CLASS I SHARES Net asset value, offering and redemption price per share ($1,996,547/255,091 shares outstanding; unlimited number of shares authorized, par value $.01 ) .. $ 7.83 =========== See Notes to Financial Statements. 5 KAMINSKI POLAND FUND STATEMENT OF OPERATIONS - FOR THE YEAR ENDED JUNE 30, 1999 - -------------------------------------------------------------------------------- INVESTMENT INCOME Income Dividends (net of withholding tax of $873) ................... $ 12,751 Interest ..................................................... 61 --------- Total income ............................................... 12,812 --------- Expenses Custodian and accounting fees ................................ 39,381 Administration fees (Note 3) ................................. 29,917 Professional fees ............................................ 25,674 Transfer agent fees .......................................... 24,196 Advisory fees (Note 3) ....................................... 20,142 Registration fees ............................................ 10,265 Amortization of deferred organization costs .................. 6,993 Reports to shareholders ...................................... 4,783 Trustees' fees ............................................... 3,965 Miscellaneous ................................................ 3,491 Distribution fees (Note 4) ................................... 3,473 Insurance expense ............................................ 1,249 --------- Total expenses ............................................. 173,529 Less advisory fee waiver and absorption (Note 3) ........... (135,329) --------- Net expenses ............................................... 38,200 --------- NET INVESTMENT LOSS ...................................... (25,388) --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized loss from security transactions ................... (179,661) Net change in unrealized depreciation on investments ........... 218,184 --------- Net realized and unrealized gain on investments ............ 38,523 --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..... $ 13,135 ========= See Notes to Financial Statements. 6 KAMINSKI POLAND FUND STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- Year July 9, 1997* Ended through June 30, 1999 June 30, 1998 - -------------------------------------------------------------------------------- DECREASE IN NET ASSETS FROM OPERATIONS Net investment loss ............................ $ (25,388) $ (13,532) Net realized loss from security transactions ... (179,661) (3,414) Net change in unrealized depreciation on investments ............................... 218,184 (251,536) ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................. 13,135 (268,482) ----------- ----------- CAPITAL SHARE TRANSACTIONS Net increase in net assets derived from net change in outstanding shares (a) Class A Shares ............................... 95,462 0 Class I Shares ............................... 632,117 1,630,255 ----------- ----------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS.......................... 727,579 1,630,255 ----------- ----------- NET CHANGE IN NET ASSETS ..................... 740,714 1,361,773 NET ASSETS Beginning of period .............................. 1,361,773 0 ----------- ----------- END OF PERIOD .................................... $ 2,102,487 $ 1,361,773 =========== =========== (a) A summary of capital shares transactions is as follows: Year July 9,1997* Ended through June 30, 1999 June 30, 1998 ---------------------- ---------------------- Shares Value Shares Value ------- ---------- ------- ---------- CLASS A:** Shares sold ................ 13,560 $ 95,472 0 $ 0 Shares redeemed ............ (1) (10) 0 0 ------- ---------- ------- ---------- Net increase ............... 13,559 $ 95,462 0 $ 0 ======= ========== ======= ========== CLASS I: Shares sold ................ 159,278 $1,084,143 195,353 $1,927,665 Shares redeemed ............ (69,157) (452,026) (30,383) (297,410) ------- ---------- ------- ---------- Net increase ............... 90,121 $ 632,117 164,970 $1,630,255 ======= ========== ======= ========== * Commencement of operations. ** Denotes transactions in Class A shares that were recorded between March 18, 1999, the inception date of the new offering, and June 30, 1999. See Notes to Financial Statements. 7 KAMINSKI POLAND FUND
FINANCIAL HIGHLIGHTS FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD - --------------------------------------------------------------------------------------------------------- CLASS A CLASS I CLASS I March 18, 1999** July 9, 1997* through Year Ended through June 30, 1999 June 30, 1999 June 30, 1998 - --------------------------------------------------------------------------------------------------------- Net asset value, beginning of period................. $ 6.35 $ 8.25 $10.00 ------ ------ ------ Income (loss) from investment operations: Net investment loss++.......................... (0.02) (0.02) (0.08) Net realized and unrealized gain (loss) on investments............................... 1.48 (0.40) (1.67) ------ ------ ------ Total from investment operations..................... 1.46 (0.42) (1.75) ------ ------ ------ Net asset value, end of period....................... $ 7.81 $ 7.83 $ 8.25 ====== ====== ====== Total return at net asset value...................... 22.99%++*** (5.09%)++ (17.50%)++ Ratios/supplemental data: Net assets, end of period (millions)................. $ 0.1 $ 2.0 $ 1.4 Ratio of expenses to average net assets: Before expense reimbursement................... 57.30%+ 11.97% 17.57%+ After expense reimbursement.................... 2.75%+ 2.75% 2.75%+ Ratio of net investment loss to average net assets: Before expense reimbursement................... (56.62)%+ (11.05)% (16.30%)+ After expense reimbursement.................... (2.02)%+ (1.82)% (1.48%)+ Portfolio turnover rate.............................. 28.51% 28.51% 25.74%
* Commencement of operations. ** Inception date of the Class A shares. *** Total investment return does not reflect effect of sales charges. + Annualized. ++ Net investment loss per share is calculated using the ending balance prior to consideration of adjustments for permanent book and tax differences. ++ Not annualized. See Notes to Financial Statements. 8 KAMINSKI POLAND FUND NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Kaminski Poland 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 non-diversified, open-end management investment company. The Fund began operations on July 9, 1997. The Fund's primary investment objective is to seek long term growth of capital by investing in publicly traded securities of companies based in the Republic of Poland. Effective March 18, 1999, the Fund implemented a multiple class structure whereby the Fund is authorized to offer two classes of shares: Class A and Class I. The shares outstanding prior to March 18, 1999 were designated as Class I shares. The two classes differ principally in the sales loads charged at the time of purchase and redemption. Both classes of shares have identical rights to earnings, assets and voting privileges, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. At a meeting on September 10, 1999, the Board of Trustees, in consultation with the Advisor, determined that the Fund should be reorganized into a trust or other business entity separate from Advisors Series Trust and seek other administrative and distribution service providers. The Board intends to make a final determination with respect to a plan of reorganization or, in the alternative, liquidation of the Fund, at its meeting on September 22, 1999. 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: Investments in securities traded on the Warsaw Stock Exchange, Poland's primary exchange, are valued at the last reported sale price at the close of regular trading on the last business day of the period; securities traded on the exchange for which there have been no sale 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. U.S. Government securities with less than 60 days remaining to maturity when acquired by the Fund are valued on an amortized cost basis. U.S. Government securities with more than 60 days remaining to maturity are valued at the current market value (using the mean between the bid and the asked price) until the 60th day prior to maturity, and are then valued at amortized cost based upon the value on such date unless the Board determines during such 60-day period that this amortized cost basis does not represent fair value. Foreign securities are recorded in the financial statements after translation to U.S. dollars, based on the applicable exchange rate at the end of the period. The Fund does not isolate that portion of the results of operations arising as a result of changes in the currency exchange rate from the fluctuations arising as a result of changes in the market prices of investments during the period. Such changes are included in net realized and unrealized gain or loss from investments. 9 KAMINSKI POLAND FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED - -------------------------------------------------------------------------------- Interest income is translated at the exchange rates which existed at the dates the income was accrued. Income will be booked on ex-date or as soon as the information becomes available. Exchange gains and losses related to interest income are included in interest income on the accompanying Statement of Operations. B. REPURCHASE AGREEMENTS: The Fund may enter into repurchase agreements with government securities dealers recognized by the Federal Reserve Board, with member banks of the Federal Reserve System or with such other brokers or dealers that meet the credit guidelines established by the Board of Trustees. The Fund will always receive and maintain, as collateral, securities whose market value, including accrued interest, will be at least equal to 102% of the dollar amount invested by the Fund in each agreement, and the Fund will make payment for such securities only upon physical delivery or upon evidence of book entry transfer to the account of the custodian. To the extent that the term of any repurchase transaction exceeds one business day, the value of collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. C. 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. At June 30, 1999, the Fund had accumulated net realized capital loss carryovers of $25,341 expiring in 2007. To the extent that the Fund realizes future net capital gains, taxable distributions will be reduced by any unused capital loss carryovers. Differences exist between net realized capital losses for financial statement and tax purposes due to the deferral of capital losses for tax purposes. It is the Fund's policy to reclassify the net-effect of permanent differences between book and taxable income to trust capital accounts on the statements of assets and liabilities. As a result of permanent book-to-tax differences for the period ended June 30, 1999, the accumulated net investment loss was reclassified into paid-in capital. These reclassifications have no effect on net assets, net asset value per share, or the change in net assets resulting from operations. Additionally, net capital losses of $157,972 attributable to security transactions incurred after October 31, 1998 are treated as arising on the first day (July 1, 1999) of the Fund's next taxable year. D. SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES: Security transactions are accounted for on the trade date. The cost of securities owned on realized transactions are relieved on the first-in, first-out (FIFO) basis for book and tax purposes. Dividend income is recorded on the ex-dividend date, if available, or on a cash 10 KAMINSKI POLAND FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED - -------------------------------------------------------------------------------- basis. Realized gains and losses on securities sold are determined on the basis of identified cost. Realized and unrealized gains and losses and net investment income, other than class specific expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Operating expenses directly attributable to a specific class are charged against the operations of that class. E. DISTRIBUTIONS: Dividends and capital gain distributions to shareholders, if available, are recorded on the ex-dividend date. F. DEFERRED ORGANIZATION COSTS: The Fund has incurred expenses of $35,427 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. G. CONCENTRATION OF RISK: As of June 30, 1999 the Fund held a significant portion of its assets in foreign securities. Certain price and foreign exchange fluctuations as well as economic and political situations in Poland could have an impact on the Fund's net assets. It is the Trust's policy to continually monitor these off-balance sheet risks. H. 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 June 30, 1999, Kaminski Asset Management, Inc. (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 1.45% based upon the average daily net assets of the Fund. For the period ended June 30, 1999, the Fund incurred $20,142 in Advisory Fees. The Fund is responsible for its own operating expenses. The Advisor has agreed to reduce fees payable to it by the Fund and to pay Fund operating expenses to the extent necessary to limit the Fund's aggregate annual operating expenses to 2.75% 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 sixth year and seventh year of the Fund's operations. Any such 11 KAMINSKI POLAND FUND NOTES TO FINANCIAL STATEMENTS, CONTINUED - -------------------------------------------------------------------------------- reimbursement is also contingent upon Board of Trustees' subsequent review and ratification of the reimbursed amounts. Such reimbursement may not be paid prior to the Fund's payment of current ordinary operating expenses. For the period ended June 30, 1999, the Advisor reduced its fees and absorbed Fund expenses in the amount of $135,329; no amounts were reimbursed. 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 for the Fund. For the period ended June 30, 1999, the Fund incurred $29,917 in administration fees. 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. For the year ended June 30, 1999, First Fund Distributors received $4,442 of aggregate commissions from sales of Class A shares. There were no contingent deferred sales charges from redemptions of Class A shares for the year ended June 30, 1999. Sales charges are not an expense of the Fund and are not reflected in the financial statements of the Fund. Contingent deferred sales charges and/or redemption fees may cause the redemption price per share to differ from the net asset value per share. Certain officers of the Fund are also officers and/or directors of the Administrator and the Distributor; however, they receive no compensation from the Fund. NOTE 4 - DISTRIBUTION COSTS The Trust has adopted a Distribution Plan (the "Plan") in accordance with Rule 12b-1 under the 1940 Act. The Plan provides that the Fund may pay a fee to the Advisor, acting as Distribution Coordinator, at an annual rate of up to .25% of the average daily net assets of each class of shares of the Fund. The fee is paid to the Distribution Coordinator as reimbursement for, or in anticipation of, expenses incurred for distribution-related activity. For the period ended June 30, 1999, the Fund paid the Distribution Coordinator in the amount of $3,473. NOTE 5 - PURCHASES AND SALES OF SECURITIES For the period ended June 30, 1999, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were $841,846 and $378,041, respectively. 12 [PRICEWATERHOUSECOOPERS LLP LOGO] - -------------------------------------------------------------------------------- PRICEWATERHOUSECOOPERS LLP 650 Third Avenue South Park Building Suite 1300 Minneapolis, MN 55402-4333 Telephone (612) 596 6000 Facimile (612) 373 7160 REPORT OF INDEPENDENT ACCOUNTANTS September 14, 1999 In our opinion, the accompanying statement of assets and liabilities, including the schedule 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 the Kaminski Poland Fund (the "Fund") at June 30, 1999, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's 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 generally accepted auditing standards which require that we plan and perform the audits 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 June 30, 1999 by correspondence with the custodian and brokers, provides a reasonable basis for the opinion expressed above. As described in Note 1, at a meeting on September 10, 1999, the Board of Trustees, in consultation with the Advisor, determined that the Fund should be reorganized into a trust or other business entity separate from Advisors Series Trust and seek other administrative and distribution service providers. The Board intends to make a final determination with respect to a plan of reorganization or, in the alternative, liquidation of the Fund, at its meeting on September 22, 1999. /s/ PriceWaterhouseCoopers LLP ADVISOR Kaminski Asset Management, Inc. 319 1st Avenue North, Suite 300 Minneapolis, MN 55401 Web Page: www.polfund.com (888) POL-FUND DISTRIBUTOR First Fund Distributors, Inc. 4455 East Camelback Road, Suite 261E Phoenix, AZ 85018 CUSTODIAN Firstar Bank, N.A. 425 Walnut Street, M.L. 6118 Cincinnati, OH 45202 TRANSFER AGENT American Data Services, Inc. 150 Motor Parkway, Suite 109 Hauppauge, NY 11788 (888) 229-2105 AUDITOR PricewaterhouseCoopers LLP 650 Third Avenue South, Ste. 1300 Minneapolis, MN 55402 (612) 596-6000 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. -----END PRIVACY-ENHANCED MESSAGE-----