Form N-CSR ADVISORS SERIES TRUST For: Sep 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07959
Advisors Series Trust
(Exact name of registrant as specified in charter)
(Exact name of registrant as specified in charter)
615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Jeffrey T. Rauman, President/Chief Executive Officer
Advisors Series Trust
c/o U.S. Bancorp Fund Services, LLC
777 East Wisconsin Avenue, 5th Floor
Milwaukee, WI 53202
(Name and address of agent for service)
(Name and address of agent for service)
(626) 914-7363
Registrant's telephone number, including area code
Date of fiscal year end: September 30, 2022
Date of reporting period: September 30, 2022
Item 1. Reports to Stockholders.
(a)
Chase
Growth Fund
Annual Report
Dated September 30, 2022
Chase Investment Counsel Corporation
350 Old Ivy Way
Suite 100
Charlottesville, Virginia 22903
Adviser: 434-293-9104
Shareholder Servicing: 888-861-7556
www.chasegrowthfund.com
Chase Growth Fund
November 4, 2022
Dear Fellow Shareholder:
We are pleased to present our annual report for the Chase Growth Fund (NASDAQ: CHASX, CHAIX) (a “Fund”) for the fiscal year ended September 30, 2022. As
of September 30, 2022, over 1,700 shareholders had $59 million invested in both classes of the Chase Growth Fund. We appreciate the trust all of you have placed in our management and we want to extend a special welcome to new shareholders since our
May 2, 2022 letter.
Fund Performance Overview
As always, we are “growth at a reasonable price” investors seeking high-quality stocks which we believe are reasonably priced relative to their earnings
growth rates. Our investment process is very disciplined, combining fundamental and technical analysis both to control risk and build sound portfolios.
Returns for the periods ended September 30, 2022, are summarized below.
Chase Growth Fund Class N (CHASX)
|
||||
|
5 years ended
|
10 years ended
|
Since Inception
|
|
|
1 year ended
|
9/30/22
|
9/30/22
|
(12/2/97)
|
|
9/30/22
|
(Annualized)
|
(Annualized)
|
(Annualized)
|
Chase Growth Fund Class N (CHASX)
|
-18.05%
|
+6.87%
|
+9.99%
|
+7.54%
|
S&P 500® Index
|
-15.47%
|
+9.24%
|
+11.70%
|
+7.38%
|
Lipper Multi-Cap Growth Funds Index
|
-31.88%
|
+8.21%
|
+11.23%
|
+6.95%
|
|
||||
Chase Growth Fund Institutional Class (CHAIX)
|
||||
|
5 years ended
|
10 years ended
|
Since Inception
|
|
|
1 year ended
|
9/30/22
|
9/30/22
|
(1/29/07)
|
|
9/30/22
|
(Annualized)
|
(Annualized)
|
(Annualized)
|
Chase Growth Fund Institutional Class (CHAIX)
|
-17.99%
|
+6.96%
|
+10.16%
|
+7.52%
|
S&P 500® Index
|
-15.47%
|
+9.24%
|
+11.70%
|
+8.26%
|
Lipper Multi-Cap Growth Funds Index
|
-31.88%
|
+8.21%
|
+11.23%
|
+8.26%
|
Gross Expense Ratio: Class N 1.31%, Institutional Class 1.16%, as of the Fund’s most recently filed registration statement.
Expense Caps*: Class N 1.14%, Institutional Class 0.99%, as of the Fund’s most recently filed registration statement.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will
fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. The most recent month-end performance may be obtained by
visiting our website at www.chasegrowthfund.com. The Fund imposes a 2.00% redemption fee on shares held 60 days or less. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced.
*
|
Chase Investment Counsel Corporation (the “Adviser”) has contractually agreed to waive a portion or all of its management fees and pay Fund expenses in order to limit Total Annual Fund
Operating Expenses (excluding AFFE, taxes, interest expenses, dividends on securities sold short, extraordinary expenses, Rule 12b-1 fees, shareholder servicing fees and any other class-specific expenses) to 0.99% of average daily net assets
of the Fund (the “Expense Cap”). The Expense Cap will remain
|
1
Chase Growth Fund
in effect through at least January 27, 2023 and may be terminated only by the Trust’s Board of Trustees (the “Board”). The Adviser may request recoupment of previously waived fees and paid
expenses from the Fund for 36 months from the date they were waived or paid, subject to the Expense Cap.
|
After ending 2021 on a high note, beginning in early January 2022 markets turned and have been uniformly weak ever since as the world grappled with
Russia’s invasion of Ukraine, rising prices, rising inflation, and rising interest rates. The S&P 500® Index (“S&P 500”) fell 15.5% during the 12 months ended
September 30, 2022 and was down 25.6% from its January 4, 2022, peak. This put it in “bear market” territory from which it has not been able to escape, at least as of October 20, 2022. The weak markets were a worldwide phenomenon with the MSCI EAFE
Developed Markets Index down 24.7%, and the MSCI Emerging Markets Index down 27.8%. It also was relatively unaffected by size and investment style with the S&P MidCap 400®
Index down 15.3%, the S&P SmallCap 600® Index down 20.0%, the Russell 1000® Growth
Index down 22.6% and the Russell 1000® Value Index down 11.4%. Ten of the S&P 500’s 11 sectors were negative for the year through September 30th, with only energy
up 34.9% so far this year driven by higher prices for oil and gas. The current year is also unusual in that, along with stocks, bonds fell in value as well, with the S&P U.S. Aggregate Bond Index off 13.2% through September 30th driven by several
rate hikes imposed to battle inflation.
Two of the biggest conundrums confronting investors today are the level and direction of both corporate earnings and interest rates. Federal Reserve
bankers have raised short-term rates five times this year and are likely to do so two more times before year-end. The moves are designed to curb inflation. It is too early to tell whether they will be successful or whether we will face more of the
same in 2023. The situation with earnings is similar. After a Covid-reduced earnings year in 2020, corporate earnings came back strong in 2021 with a year-end figure of $206.40, up 55.4% over 2020 levels. This year’s estimates have not changed
significantly despite rising inflation and interest rates. According to S&P Capital IQ, the most recent estimate for S&P 500 earnings this year is $225.46. At the start of the year, the estimate was $225.57. Third-quarter 2022 earnings coming
out so far seem to be in-line with consensus. This late in the year, the bigger question is what 2023’s earnings will look like. On October 20th, S&P Capital IQ’s consensus estimate for S&P 500 earnings is $241.44, a 7.2% increase over 2022
levels. The 2023 numbers will show the full effects of rising inflation and interest rates as well as the impact of a stronger U.S. dollar, something that has begun to affect corporate earnings in the later part of 2022.
The following is a discussion of the components and drivers of the performance of the Fund, as well as how the characteristics of the underlying stocks
compare with those in the S&P 500.
On September 30, 2022, the Chase Growth Fund owned 40 stocks ranging in market capitalization from $2.3 billion (Silicon Motion Technology Corp.) to
$2,221.0 billion (Apple, Inc.).
For the last 12 months ended September 30, 2022, the Chase Growth Fund trailed the S&P 500 but outperformed the Lipper Multi-Cap Growth Funds Index.
Our performance was hurt by our underweight position in the Consumer Staples sector but helped by our underweight position in the Communication Services sector. Stock selection detracted from performance in the Consumer Discretionary, Energy, Health
Care, and Technology sectors, but helped performance in the Industrials sector. For the twelve months ended September 30, 2022, our five best performing stocks were Pioneer Natural Resources, Co. +48.0%, Enphase Energy, Inc. +42.0%, Kansas City
Southern +41.7%, Carlisle Cos., Inc. +33.3%, and Mosaic Co. +23.0%. Our five worst performing stocks were NVIDIA Corporation -37.9%, Tempur Sealy International, Inc. -31.9%, Expedia Group, Inc. -31.4%, Alphabet, Inc. -25.9%, and Deere & Co.
-23.7%.
Pioneer Natural Resources, Co., Enphase Energy, Inc., and Kansas City Southern have been highly successful stocks for us since their purchase. Pioneer
Natural Resources, Co. explores for, develops, and produces oil, natural gas liquids, and gas. Its operations are concentrated in the Permian Basin of Western Texas. With its acquisition of Parsley Energy,
2
Chase Growth Fund
the company now has more than 12,500 premium drilling locations in the larger Permian region, and its scale provides a strong advantage over peers. With the rebound in oil
prices over the last year, Pioneer has seen its best-in-class cash flow generation result in strong earnings.
Enphase Energy, Inc. is a global energy technology company that delivers energy management technology for the solar industry. The expanding solar market
has set the stage for the solar microinverter market’s boom, benefitting Enphase, which already enjoys a strong position as a leading U.S. manufacturer of microinverters. The company’s expansion into Brazil in the first quarter and introduction of
microinverters in Europe and Australia in the second half of 2022 is driving earnings growth for the company.
Kansas City Southern is a transportation holding company with railroad investments in the United States, Mexico, and Panama. The company’s coordinated
rail network provides shippers with an effective alternative by giving direct access to Mexico and the southeast and southwest United States through less congested interchange hubs. In December 2021, Canadian Pacific Railway completed its
acquisition of the company.
The chart below compares the characteristics of Chase Growth Fund stocks to the stocks in the S&P 500. Chase Growth Fund stocks have higher five-year
average annual earnings per share (“EPS”) growth rates of 21% vs. 17% for the S&P 500. They are expected to have earnings growth (based on consensus earnings forecasts for their underlying companies) in 2023 of 16% vs. 13%, and higher revenue
growth of 10% vs. 7%. Despite the stronger EPS growth characteristics, they have sold at modestly lower price-earnings ratios (“P/E”) than the S&P 500 (21.5X vs. 22.7X) based on 2023 estimated earnings. Relative to their growth rates, we
believe our stocks are reasonably priced, selling at 1.03 times their five-year historical growth rates compared to 1.36 times for the S&P 500 and 1.32 times their projected one-year growth rates compared to 1.80 times for the S&P 500.
September 30, 2022
|
CHASE GROWTH FUND STOCKS VS. S&P 500® INDEX
|
Source: Chase Investment Counsel Corporation. This information is based on certain assumptions and historical data. None of the projected information provided (including
estimated EPS numbers for 2023) is a prediction of future results for the Fund or companies held in the Fund's portfolio.
Market Outlook
The third quarter earnings season of 2022 is upon us. According to Credit-Suisse, as of October 21st, about 23% of the S&P 500 have reported results.
So far, 68% of reporting companies have exceeded earnings estimates. However, this is below the 5-year average of 77% and the “beats” are small at 3.2%. However, guidance about the fourth quarter is mixed with many companies reporting higher costs
for labor and supplies as well as negative effects from a strong U.S. dollar.
As of November 1st, we are now in the seasonally strong six months of the year for equity markets. Although there are always many issues to watch, this
year’s list seems longer than normal. It includes guesses as to when the Federal
3
Chase Growth Fund
Reserve might end its tightening policy, where inflation is headed, whether we will face a recession in late 2022, or 2023 or not at all and whether the
higher energy and food prices we have faced since the beginning of the Russia-Ukraine war might start to ease. There are also fears of turmoil involving China and Taiwan, and in the Middle East.
With the substantial decline in market values, plus relatively stable earnings, markets are more reasonably valued now than they have been in several
years. On October 20th, S&P Capital IQ estimated that S&P 500 earnings for 2022 will be $225.46 per share. This values the index at 16.2x estimated earnings compared to five and 10-year average price/earnings multiples of 17.3x and 15.5x,
respectively. Using next year’s S&P 500 estimate of $241.44 makes the index a slightly more attractive 15.2x earnings. One should take the earnings estimates with a large grain of salt, however. It is likely they may be revised downward as we see
Q322 figures and guidance.
As is our long-term philosophy, we continue to pay special attention to companies that we believe can continue to grow earnings and revenues in a
challenging environment. Estimated earnings for our companies are expected to increase 16% in 2023, versus estimated growth of 13% for our S&P 500 benchmark. Should you have any questions or need additional information, please call us on
800-293-9104.
Chase Growth Fund
|
% of Net Assets
|
|||
1.
|
Microsoft Corp.
|
5.7%
|
||
2.
|
Apple, Inc.
|
5.0%
|
||
3.
|
Carlisle Cos., Inc.
|
4.0%
|
||
4.
|
Alphabet, Inc.
|
3.8%
|
||
5.
|
Molina Healthcare, Inc.
|
3.7%
|
||
6.
|
LPL Financial Holdings, Inc.
|
3.7%
|
||
7.
|
Enphase Energy, Inc.
|
3.6%
|
||
8.
|
National Fuel Gas Co.
|
3.2%
|
||
9.
|
WW Grainger, Inc.
|
3.0%
|
||
10.
|
AbbVie, Inc.
|
2.9%
|
Peter W. Tuz, CFA, CFP®
|
Robert ‘Buck’ C. Klintworth, CMT, CFP®
|
President & Director
|
Senior Vice President
|
Must be preceded or accompanied by a prospectus.
Past performance does not guarantee future results.
Mutual fund investing involves risk. Principal loss is possible. The Chase Growth Fund invests in mid-cap companies, which involve additional risks such as
limited liquidity and greater volatility. The Chase Growth Fund may invest in foreign securities traded on U.S. exchanges, which involve greater volatility and political, economic and currency risks and differences in accounting methods. Growth
stocks are typically more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.
The opinions expressed above are those of the investment adviser, are subject to change, and any forecasts made cannot be guaranteed.
The S&P 500® Index is a broad-based unmanaged index of 500 stocks, which is widely
recognized as representative of the equity market in general.
The Lipper Multi-Cap Growth Funds Index measures the performance of 30 of the largest funds in the multi-cap growth category as tracked by Lipper, Inc.
4
Chase Growth Fund
The S&P MidCap 400® Index provides investors with a benchmark for mid-sized companies.
The index, which is distinct from the large-cap S&P 500®, is designed to measure the performance of 400 mid-sized companies, reflecting the distinctive risk and
return characteristics of this market segment.
The S&P SmallCap 600® Index seeks to measure the small-cap segment of the U.S. equity
market. The index is designed to track companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.
The MSCI EAFE Developed Markets Index is a stock index offered by MSCI that covers non-U.S. and Canadian equity markets. It serves as a performance benchmark for the major
international equity markets as represented by 21 major MSCI indices from Europe, Australasia, and the Middle East.
The MSCI Emerging Markets Index captures large and mid-cap representation across 27 Emerging Markets (EM) countries.
The Russell 1000® Growth Index measures the performance of the large cap growth segment of
the U.S. equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000® Value Index measures the performance of the large cap value segment of the
U.S. equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values.
The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the
S&P Aggregate™ Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency,
and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.
You cannot invest directly in an index.
Market capitalization (cap) is the market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share.
Earnings growth is the annual rate of growth of earnings from investments.
Earnings growth and revenue growth for a fund holding does not guarantee a corresponding increase in the market price of the holding or the Fund.
Earnings per share (“EPS”) are calculated by taking the total earnings divided by the number of shares outstanding.
The Price-Earnings Ratio (“P/E”) is the most common measure of how expensive a stock is.
Please note the Chase Growth Fund does not have any sales charges but management fees and other expenses still apply.
Please refer to the prospectus for further details.
Fee waivers are in effect for the Chase Growth Fund. In the absence of fee waivers, total return would be reduced.
Fund holdings and sector weightings are subject to change and are not a recommendation to buy or sell any security. Please refer to the schedule of investments for more
information.
The Chase Growth Fund is distributed by Quasar Distributors, LLC.
5
Chase Growth Fund
SECTOR ALLOCATION OF PORTFOLIO ASSETS at September 30, 2022 (Unaudited)
Percentages represent market value as a percentage of total investments.
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive
property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
6
Chase Growth Fund
EXPENSE EXAMPLE at September 30, 2022 (Unaudited)
As a shareholder of a fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees, and
exchange fees, and (2) ongoing costs, including management fees, distribution and/or service fees, and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these
costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (4/1/22 – 9/30/22).
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. Although the Fund charges no sales load or
transaction fees, you will be assessed fees for outgoing wire transfers, returned checks, and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Fund’s transfer agent. The Example below includes, but is not
limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on
your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please
note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables is useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During Period
|
|
4/1/22
|
9/30/22
|
4/1/22 – 9/30/22*
|
|
Chase Growth Fund (Class N)
|
|||
Actual
|
$1,000.00
|
$ 805.70
|
$4.98
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,019.55
|
$5.57
|
*
|
Expenses are equal to the annualized expense ratio of 1.10% for the period, multiplied by the average account value over the period, multiplied by 183 (days in most recent fiscal half-year) / 365 days to
reflect the one-half year expense.
|
Beginning
|
Ending
|
Expenses Paid
|
|
Account Value
|
Account Value
|
During Period
|
|
4/1/22
|
9/30/22
|
4/1/22 – 9/30/22*
|
|
Chase Growth Fund (Institutional Class)
|
|||
Actual
|
$1,000.00
|
$ 806.00
|
$4.48
|
Hypothetical (5% return before expenses)
|
$1,000.00
|
$1,020.10
|
$5.01
|
*
|
Expenses are equal to the annualized expense ratio of 0.99% for the period, multiplied by the average account value over the period, multiplied by 183 (days in most recent fiscal half-year) / 365 days to
reflect the one-half year expense.
|
7
Chase Growth Fund
Comparison of the change in value of a hypothetical $10,000 investment in the
Chase Growth Fund – Class N Shares versus the S&P 500 Index and the Lipper Multi-Cap Growth Funds Index
One
|
Five
|
Ten
|
|
Average Annual Total Return as of Sept. 30, 2022
|
Year
|
Years
|
Years
|
Chase Growth Fund – Class N Shares
|
-18.05%
|
6.87%
|
9.99%
|
Chase Growth Fund – Institutional Class
|
-17.99%
|
6.96%
|
10.16%
|
S&P 500® Index
|
-15.47%
|
9.24%
|
11.70%
|
Lipper Multi-Cap Growth Funds Index
|
-31.88%
|
8.21%
|
11.23%
|
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment
will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. The most recent month-end performance may be
obtained by visiting our website at www.chasegrowthfund.com.
Returns reflect reinvestment of dividends and capital gains distributions. The performance data and graph do not reflect the deduction of taxes that a shareholder may pay on
dividends, capital gains distributions, or redemption of Fund shares. Performance data shown does not reflect the 2.00% redemption fee imposed on shares held 60 days or less. If it did, total returns would be reduced. Indices do not incur expenses
and are not available for investment.
The S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed
to represent the broad domestic economy.
The Lipper Multi-Cap Growth Funds Index measures the performance of 30 of the largest funds in the multi-cap growth category as tracked by Lipper, Inc. The index is
comprised of funds that invest at least 75% of their equity assets in companies with any market capitalization over an extended period of time. Multi-cap growth funds typically have above average characteristics compared to the S&P
SuperComposite 1500 Index.
8
Chase Growth Fund
SCHEDULE OF INVESTMENTS at September 30, 2022
Shares
|
COMMON STOCKS – 93.1%
|
Value
|
|||||
Agriculture – 2.8%
|
|||||||
28,782
|
Corteva, Inc.
|
$
|
1,644,891
|
||||
Auto/Auto Parts – 6.7%
|
|||||||
717
|
AutoZone, Inc.*
|
1,535,764
|
|||||
5,841
|
Tesla, Inc.*
|
1,549,325
|
|||||
8,007
|
Visteon Corp.*
|
849,222
|
|||||
3,934,311
|
|||||||
Biotechnology – 2.6%
|
|||||||
5,219
|
Vertex Pharmaceuticals, Inc.*
|
1,511,109
|
|||||
Brokerage – 3.7%
|
|||||||
9,900
|
LPL Financial Holdings, Inc.
|
2,162,952
|
|||||
Business Services – 2.1%
|
|||||||
8,422
|
ExlService Holdings, Inc.*
|
1,241,066
|
|||||
Computer – Storage – 1.0%
|
|||||||
8,872
|
Silicon Motion Technology Corp. – ADR
|
578,366
|
|||||
Computer Hardware – 5.0%
|
|||||||
21,121
|
Apple, Inc.
|
2,918,922
|
|||||
Computer Software – 7.7%
|
|||||||
15,012
|
Amdocs Ltd.
|
1,192,703
|
|||||
14,460
|
Microsoft Corp.
|
3,367,734
|
|||||
4,560,437
|
|||||||
Conglomerates – 4.0%
|
|||||||
8,368
|
Carlisle Companies, Inc.
|
2,346,471
|
|||||
Containers – 1.9%
|
|||||||
55,731
|
Graphic Packaging Holding Co.
|
1,100,130
|
|||||
Drugs – Proprietary – 4.4%
|
|||||||
12,730
|
AbbVie, Inc.
|
1,708,493
|
|||||
5,878
|
Zoetis, Inc. – Class A
|
871,649
|
|||||
2,580,142
|
|||||||
Electrical Components – 2.1%
|
|||||||
10,379
|
WESCO International, Inc.*
|
1,239,045
|
|||||
Energy/Oil & Gas Exploration & Production – 1.7%
|
|||||||
4,663
|
Pioneer Natural Resources Co.
|
1,009,679
|
The accompanying notes are an integral part of these financial statements.
9
Chase Growth Fund
SCHEDULE OF INVESTMENTS at September 30, 2022, Continued
Shares
|
Value
|
||||||
Energy/Solar – 3.6%
|
|||||||
7,730
|
Enphase Energy, Inc.*
|
$
|
2,144,843
|
||||
Engineering/Construction – 3.6%
|
|||||||
6,729
|
Quanta Services, Inc.
|
857,207
|
|||||
4,572
|
Valmont Industries, Inc.
|
1,228,131
|
|||||
2,085,338
|
|||||||
Finance/Information Services – 2.7%
|
|||||||
6,881
|
Global Payments, Inc.
|
743,492
|
|||||
4,898
|
Visa, Inc. – Class A
|
870,130
|
|||||
1,613,622
|
|||||||
Financial Services – Diversified – 2.2%
|
|||||||
9,680
|
American Express Co.
|
1,305,929
|
|||||
Footwear – 1.6%
|
|||||||
13,467
|
Crocs, Inc.*
|
924,644
|
|||||
Health Care Benefits – 6.6%
|
|||||||
6,613
|
Molina Healthcare, Inc.*
|
2,181,232
|
|||||
3,364
|
UnitedHealth Group, Inc.
|
1,698,955
|
|||||
3,880,187
|
|||||||
Health Care Distribution – 1.0%
|
|||||||
4,470
|
AmerisourceBergen Corp.
|
604,925
|
|||||
Industrial Distributors – 3.0%
|
|||||||
3,589
|
W. W. Grainger, Inc.
|
1,755,703
|
|||||
Insurance – Property/Casualty/Title – 2.2%
|
|||||||
14,227
|
Arch Capital Group, Ltd.*
|
647,898
|
|||||
2,483
|
Everest Re Group, Ltd.
|
651,638
|
|||||
1,299,536
|
|||||||
Internet Software & Services – 3.8%
|
|||||||
23,450
|
Alphabet, Inc. – Class A*
|
2,242,993
|
|||||
Machinery – 2.1%
|
|||||||
6,629
|
Chart Industries, Inc.*
|
1,222,056
|
|||||
Railroad – 1.5%
|
|||||||
13,231
|
Canadian Pacific Railway, Ltd.
|
882,772
|
The accompanying notes are an integral part of these financial statements.
10
Chase Growth Fund
SCHEDULE OF INVESTMENTS at September 30, 2022, Continued
Shares
|
Value
|
||||||
Retail – Discount – 4.5%
|
|||||||
21,504
|
BJ’s Wholesale Club Holdings, Inc.*
|
$
|
1,565,706
|
||||
7,967
|
Dollar Tree, Inc.*
|
1,084,309
|
|||||
2,650,015
|
|||||||
Retail – Specialty – 2.5%
|
|||||||
3,646
|
Ulta Beauty, Inc.*
|
1,462,739
|
|||||
Semiconductors – 1.4%
|
|||||||
6,638
|
NVIDIA Corp.
|
805,787
|
|||||
Steel – 1.9%
|
|||||||
36,210
|
Howmet Aerospace, Inc.
|
1,119,975
|
|||||
Utilities Electric/Gas – 3.2%
|
|||||||
30,867
|
National Fuel Gas Co.
|
1,899,864
|
|||||
Total Common Stocks (Cost $47,774,908)
|
54,728,449
|
||||||
REITS – 1.2%
|
|||||||
Real Estate Investment Trust – 1.2%
|
|||||||
10,276
|
W.P. Carey, Inc.
|
717,265
|
|||||
Total REITS (Cost $883,736)
|
717,265
|
||||||
MONEY MARKET FUND – 5.8%
|
|||||||
3,404,961
|
Invesco STIT Treasury Portfolio – Institutional Class, 2.87%#
|
3,404,961
|
|||||
Total Money Market Fund (Cost $3,404,961)
|
3,404,961
|
||||||
Total Investments in Securities (Cost $52,063,605) – 100.1%
|
58,850,675
|
||||||
Liabilities in Excess of Other Assets – (0.1)%
|
(67,208
|
)
|
|||||
Net Assets – 100.0%
|
$
|
58,783,467
|
ADR
|
American Depository Receipt
|
|
REIT
|
Real Estate Investment Trust
|
|
*
|
Non-income producing security.
|
|
#
|
Rate shown is the 7-day annualized yield as of September 30, 2022.
|
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive
property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
11
Chase Growth Fund
STATEMENT OF ASSETS AND LIABILITIES at September 30, 2022
ASSETS
|
||||
Investments in securities, at value (identified cost $52,063,605)
|
$
|
58,850,675
|
||
Receivables
|
||||
Fund shares issued
|
2,750
|
|||
Dividends and interest
|
44,989
|
|||
Dividend tax reclaim
|
5,897
|
|||
Prepaid expenses
|
15,099
|
|||
Total assets
|
58,919,410
|
|||
LIABILITIES
|
||||
Payables
|
||||
Due to Adviser
|
26,067
|
|||
Fund shares redeemed
|
43,397
|
|||
Audit fees
|
22,500
|
|||
Shareholder servicing fees
|
2,969
|
|||
Administration and fund accounting fees
|
17,459
|
|||
Transfer agent fees and expenses
|
12,280
|
|||
Custody fees
|
2,401
|
|||
Legal fees
|
811
|
|||
Chief Compliance Officer fee
|
2,500
|
|||
Printing and mailing expense
|
4,561
|
|||
Trustee fees and expenses
|
203
|
|||
Accrued expenses
|
795
|
|||
Total liabilities
|
135,943
|
|||
NET ASSETS
|
$
|
58,783,467
|
The accompanying notes are an integral part of these financial statements.
12
Chase Growth Fund
STATEMENT OF ASSETS AND LIABILITIES at September 30, 2022, Continued
CALCULATION OF NET ASSET VALUE PER SHARE
|
||||
Class N Shares
|
||||
Net assets applicable to shares outstanding
|
$
|
30,523,598
|
||
Shares issued and outstanding [unlimited number of shares
|
||||
(par value $0.01) authorized]
|
2,920,505
|
|||
Net asset value, offering and redemption price per share(1)
|
$
|
10.45
|
||
Institutional Class Shares
|
||||
Net assets applicable to shares outstanding
|
$
|
28,259,869
|
||
Shares issued and outstanding [unlimited number of shares
|
||||
(par value $0.01) authorized]
|
2,517,933
|
|||
Net asset value, offering and redemption price per share(1)
|
$
|
11.22
|
||
COMPONENTS OF NET ASSETS
|
||||
Paid-in capital
|
$
|
48,978,750
|
||
Total distributable earnings
|
9,804,717
|
|||
Net assets
|
$
|
58,783,467
|
(1)
|
A redemption fee of 2.00% is assessed against shares redeemed within 60 days of purchase.
|
The accompanying notes are an integral part of these financial statements.
13
Chase Growth Fund
STATEMENT OF OPERATIONS For the Year Ended September 30, 2022
INVESTMENT INCOME
|
||||
Income
|
||||
Dividends (net of foreign tax and issuance fees withheld of $4,981)
|
$
|
861,888
|
||
Interest
|
15,628
|
|||
Total income
|
877,516
|
|||
Expenses
|
||||
Advisory fees (Note 4)
|
550,409
|
|||
Administration and fund accounting fees (Note 4)
|
104,581
|
|||
Transfer agent fees and expenses (Note 4)
|
68,222
|
|||
Shareholder servicing fees – Class N Shares (Note 5)
|
37,027
|
|||
Registration fees
|
34,411
|
|||
Audit fees
|
22,500
|
|||
Custody fees (Note 4)
|
15,115
|
|||
Chief Compliance Officer fee (Note 4)
|
15,000
|
|||
Trustees fees and expenses
|
13,596
|
|||
Printing and mailing expense
|
11,957
|
|||
Legal fees
|
9,308
|
|||
Insurance expense
|
3,129
|
|||
Miscellaneous
|
8,976
|
|||
Total expenses
|
894,231
|
|||
Less: fees waived by Adviser (Note 4)
|
(130,664
|
)
|
||
Net expenses
|
763,567
|
|||
Net investment income
|
113,949
|
|||
REALIZED AND UNREALIZED GAIN/(LOSS) ON
|
||||
INVESTMENTS AND FOREIGN CURRENCY
|
||||
Net realized gain from:
|
||||
Investments
|
4,445,105
|
|||
Foreign currency
|
386
|
|||
Net change in unrealized appreciation/(depreciation) on:
|
||||
Investments
|
(17,625,199
|
)
|
||
Foreign currency
|
(22
|
)
|
||
Net realized and unrealized loss on investments and foreign currency
|
(13,179,730
|
)
|
||
Net Decrease in Net Assets Resulting from Operations
|
$
|
(13,065,781
|
)
|
The accompanying notes are an integral part of these financial statements.
14
Chase Growth Fund
15
Chase Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended
|
Year Ended
|
|||||||
Sept. 30, 2022
|
Sept. 30, 2021
|
|||||||
NET INCREASE/(DECREASE) IN NET ASSETS FROM:
|
||||||||
OPERATIONS
|
||||||||
Net investment income/(loss)
|
$
|
113,949
|
$
|
(116,632
|
)
|
|||
Net realized gain from:
|
||||||||
Investments
|
4,445,105
|
14,184,805
|
||||||
Foreign currency
|
386
|
—
|
||||||
Net change in unrealized appreciation/(depreciation) on:
|
||||||||
Investments
|
(17,625,199
|
)
|
2,741,215
|
|||||
Foreign currency
|
(22
|
)
|
—
|
|||||
Net increase/(decrease) in net assets
|
||||||||
resulting from operations
|
(13,065,781
|
)
|
16,809,388
|
|||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
Class N Shares
|
(7,384,748
|
)
|
(2,943,764
|
)
|
||||
Institutional Class Shares
|
(6,419,507
|
)
|
(2,342,525
|
)
|
||||
Total distributions to shareholders
|
(13,804,255
|
)
|
(5,286,289
|
)
|
||||
CAPITAL SHARE TRANSACTIONS
|
||||||||
Net increase/(decrease) in net assets derived
|
||||||||
from net change in outstanding shares (a)
|
5,771,034
|
(1,545,188
|
)
|
|||||
Total increase/(decrease) in net assets
|
(21,099,002
|
)
|
9,977,911
|
|||||
NET ASSETS
|
||||||||
Beginning of year
|
79,882,469
|
69,904,558
|
||||||
End of year
|
$
|
58,783,467
|
$
|
79,882,469
|
The accompanying notes are an integral part of these financial statements.
16
Chase Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS, Continued
(a)
|
A summary of share transactions is as follows:
|
Class N Shares
Year Ended
|
Year Ended
|
|||||||||||||||
Sept. 30, 2022
|
Sept. 30, 2021
|
|||||||||||||||
Shares
|
Paid-in Capital
|
Shares
|
Paid-in Capital
|
|||||||||||||
Shares sold
|
119,097
|
$
|
1,580,582
|
88,033
|
$
|
1,291,166
|
||||||||||
Shares issued on reinvestments
|
||||||||||||||||
of distributions
|
506,876
|
6,934,064
|
208,757
|
2,786,900
|
||||||||||||
Shares redeemed*
|
(426,424
|
)
|
(5,517,038
|
)
|
(445,926
|
)
|
(6,401,922
|
)
|
||||||||
Net increase/(decrease)
|
199,549
|
$
|
2,997,608
|
(149,136
|
)
|
$
|
(2,323,856
|
)
|
||||||||
* Net of redemption fees of
|
$
|
269
|
$
|
3,029
|
||||||||||||
Institutional Class Shares
|
||||||||||||||||
Year Ended
|
Year Ended
|
|||||||||||||||
Sept. 30, 2022
|
Sept. 30, 2021
|
|||||||||||||||
Shares
|
Paid-in Capital
|
Shares
|
Paid-in Capital
|
|||||||||||||
Shares sold
|
92,566
|
$
|
1,326,081
|
163,865
|
$
|
2,468,715
|
||||||||||
Shares issued on reinvestments
|
||||||||||||||||
of distributions
|
397,076
|
5,829,080
|
148,143
|
2,097,700
|
||||||||||||
Shares redeemed*
|
(319,202
|
)
|
(4,381,735
|
)
|
(259,075
|
)
|
(3,787,747
|
)
|
||||||||
Net increase
|
170,440
|
$
|
2,773,426
|
52,933
|
$
|
778,668
|
||||||||||
* Net of redemption fees of
|
$
|
248
|
$
|
2,631
|
The accompanying notes are an integral part of these financial statements.
17
Chase Growth Fund
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
Class N Shares
Year Ended September 30,
|
||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
15.33
|
$
|
13.21
|
$
|
13.01
|
$
|
14.66
|
$
|
13.67
|
||||||||||
Income from investment operations:
|
||||||||||||||||||||
Net investment income/(loss)(1)
|
0.01
|
(0.03
|
)
|
(0.05
|
)
|
(0.05
|
)
|
(0.05
|
)
|
|||||||||||
Net realized and unrealized
|
||||||||||||||||||||
gain/(loss) on investments
|
||||||||||||||||||||
and foreign currency
|
(2.12
|
)
|
3.21
|
1.66
|
(0.18
|
)
|
2.57
|
|||||||||||||
Total from investment operations
|
(2.11
|
)
|
3.18
|
1.61
|
(0.23
|
)
|
2.52
|
|||||||||||||
Less distributions:
|
||||||||||||||||||||
From net realized gain on investments
|
(2.77
|
)
|
(1.06
|
)
|
(1.41
|
)
|
(1.42
|
)
|
(1.53
|
)
|
||||||||||
Total distributions
|
(2.77
|
)
|
(1.06
|
)
|
(1.41
|
)
|
(1.42
|
)
|
(1.53
|
)
|
||||||||||
Paid-in capital from redemption fees(1)(2)
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
|||||||||||||||
Net asset value, end of year
|
$
|
10.45
|
$
|
15.33
|
$
|
13.21
|
$
|
13.01
|
$
|
14.66
|
||||||||||
Total return
|
-18.05
|
%
|
25.25
|
%
|
13.45
|
%
|
-0.32
|
%
|
20.10
|
%
|
||||||||||
Ratios/supplemental data:
|
||||||||||||||||||||
Net assets, end of year (thousands)
|
$
|
30,523
|
$
|
41,715
|
$
|
37,914
|
$
|
32,593
|
$
|
40,480
|
||||||||||
Ratio of expenses to average net assets:
|
||||||||||||||||||||
Before fee waiver
|
1.27
|
%
|
1.26
|
%
|
1.29
|
%
|
1.23
|
%
|
1.19
|
%
|
||||||||||
After fee waiver
|
1.09
|
%
|
1.14
|
%
|
1.25
|
%
|
1.23
|
%
|
1.19
|
%
|
||||||||||
Ratio of net investment income/(loss)
|
||||||||||||||||||||
to average net assets:
|
||||||||||||||||||||
Before fee waiver
|
(0.07
|
%)
|
(0.32
|
%)
|
(0.47
|
%)
|
(0.37
|
%)
|
(0.39
|
%)
|
||||||||||
After fee waiver
|
0.11
|
%
|
(0.20
|
%)
|
(0.43
|
%)
|
(0.37
|
%)
|
(0.39
|
%)
|
||||||||||
Portfolio turnover rate
|
122.57
|
%
|
94.19
|
%
|
145.44
|
%
|
106.29
|
%
|
62.10
|
%
|
(1)
|
Based on average shares outstanding.
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
18
Chase Growth Fund
FINANCIAL HIGHLIGHTS, Continued
For a share outstanding throughout each year
Institutional Class Shares
|
||||||||||||||||||||
Year Ended September 30,
|
||||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
16.26
|
$
|
13.94
|
$
|
13.64
|
$
|
15.29
|
$
|
14.18
|
||||||||||
Income from investment operations:
|
||||||||||||||||||||
Net investment income/(loss)(1)
|
0.03
|
(0.01
|
)
|
(0.04
|
)
|
(0.04
|
)
|
(0.04
|
)
|
|||||||||||
Net realized and unrealized
|
||||||||||||||||||||
gain/(loss) on investments
|
||||||||||||||||||||
and foreign currency
|
(2.30
|
)
|
3.39
|
1.75
|
(0.19
|
)
|
2.68
|
|||||||||||||
Total from investment operations
|
(2.27
|
)
|
3.38
|
1.71
|
(0.23
|
)
|
2.64
|
|||||||||||||
Less distributions:
|
||||||||||||||||||||
From net realized gain on investments
|
(2.77
|
)
|
(1.06
|
)
|
(1.41
|
)
|
(1.42
|
)
|
(1.53
|
)
|
||||||||||
Total distributions
|
(2.77
|
)
|
(1.06
|
)
|
(1.41
|
)
|
(1.42
|
)
|
(1.53
|
)
|
||||||||||
Paid-in capital from redemption fees
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
0.00
|
(1)(2)
|
—
|
|||||||||||
Net asset value, end of year
|
$
|
11.22
|
$
|
16.26
|
$
|
13.94
|
$
|
13.64
|
$
|
15.29
|
||||||||||
Total return
|
-17.99
|
%
|
25.36
|
%
|
13.57
|
%
|
-0.30
|
%
|
20.24
|
%
|
||||||||||
Ratios/supplemental data:
|
||||||||||||||||||||
Net assets, end of year (thousands)
|
$
|
28,260
|
$
|
38,167
|
$
|
31,991
|
$
|
36,312
|
$
|
38,911
|
||||||||||
Ratio of expenses to average net assets:
|
||||||||||||||||||||
Before fee waiver
|
1.17
|
%
|
1.16
|
%
|
1.18
|
%
|
1.15
|
%
|
1.10
|
%
|
||||||||||
After fee waiver
|
0.99
|
%
|
1.04
|
%
|
1.14
|
%
|
1.15
|
%
|
1.10
|
%
|
||||||||||
Ratio of net investment income/(loss)
|
||||||||||||||||||||
to average net assets:
|
||||||||||||||||||||
Before fee waiver
|
0.03
|
%
|
(0.21
|
%)
|
(0.34
|
%)
|
(0.29
|
%)
|
(0.30
|
%)
|
||||||||||
After fee waiver
|
0.21
|
%
|
(0.09
|
%)
|
(0.30
|
%)
|
(0.29
|
%)
|
(0.30
|
%)
|
||||||||||
Portfolio turnover rate
|
122.57
|
%
|
94.19
|
%
|
145.44
|
%
|
106.29
|
%
|
62.10
|
%
|
(1)
|
Based on average shares outstanding.
|
(2)
|
Amount is less than $0.01 per share.
|
The accompanying notes are an integral part of these financial statements.
19
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022
NOTE 1 – ORGANIZATION
The Chase Growth Fund (the “Fund”) is a series of shares of Advisors Series Trust (the “Trust”), which is registered under the Investment Company Act of
1940 (“1940 Act”), as amended, as an open-end management investment company. The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946
“Financial Services – Investment Companies”.
The Fund is a diversified fund. The investment objective of the Fund is growth of capital. The Fund offers Class N shares which commenced operations
on December 2, 1997 and Institutional Class shares which commenced operations on January 29, 2007. Because the fees and expenses vary between the Class N shares and the Institutional Class shares, performance will vary with respect to each class.
Under normal conditions, the Institutional Class shares are expected to have lower expenses than the Class N shares which will result in higher total returns.
All classes of the Fund are offered through approved financial supermarkets, investment advisors and consultants, financial planners, brokers, dealers
and other investment professionals and their agents. Institutional Class shares of the Fund are offered to a limited category of investors, most notably to shareholders whose cumulative investment in the Fund exceeds $500,000.
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 accounting
principles generally accepted in the United States of America.
A.
|
Security Valuation: All investments in securities are recorded at their estimated fair value, as described in note 3.
|
|
B.
|
Federal Income Taxes: It is the Fund’s policy to comply with the requirements of Subchapter M 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 or excise tax provision is required.
|
|
The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The tax returns of the Fund’s prior
three fiscal years are open for examination. Management has reviewed all open tax years in major jurisdictions and concluded that there is no impact on the Fund’s net assets and no tax liability resulting from unrecognized tax events relating
to uncertain income tax positions taken or expected to be taken on a tax return. The Fund identifies their major tax jurisdictions as U.S. Federal and the state of Wisconsin. The Fund is not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
|
20
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
C.
|
Securities Transactions, Income and Distributions: Securities transactions are accounted for on the trade date. Realized gains and losses on securities sold are
determined on the basis of identified cost. Interest income is recorded on an accrual basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided
for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
|
|
Investment income, expenses (other than those specific to the class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of the Fund based upon their
relative net assets on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
|
||
The Fund is charged for those expenses that are directly attributable to the Fund, such as investment advisory, custody and transfer agent fees. Common expenses of the Trust are typically allocated among the
funds in the Trust based on the fund’s respective net assets, or by other equitable means.
|
||
The Fund distributes substantially all net investment income, if any, and net realized capital gains, if any, annually. Distributions from net realized gains for book purposes may include short-term capital
gains. All short-term capital gains are included in ordinary income for tax purposes.
|
||
The amount of dividends and distributions to shareholders from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which differs from accounting
principles generally accepted in the United States of America. To the extent these book/tax differences are permanent, such amounts are reclassified within the capital accounts based on their Federal tax treatment.
|
||
D.
|
Reclassification of Capital Accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to
permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.
|
|
For the year ended September 30, 2022, the Fund made the following permanent tax adjustments on the statement of assets and liabilities:
|
Total Distributable Earnings
|
Paid-in Capital
|
||
$(658,863)
|
$658,863
|
E.
|
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.
|
21
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
F.
|
Redemption Fees: The Fund charges a 2% redemption fee to shareholders who redeem shares held for 60 days or less. Such fees are retained by the Fund and accounted for
as an addition to paid-in capital. Redemption fees retained are disclosed in the statements of changes.
|
|
G.
|
REITs: The Fund can make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from
operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits resulting in the excess portion of such dividends being designated as a return of capital. The Fund intends to include the gross dividends
from such REITs in its annual distributions to its shareholders and, accordingly, a portion of the Fund’s distributions may also be designated as a return of capital.
|
|
H.
|
Events Subsequent to the Fiscal Year End: In preparing the financial statements as of September 30, 2022, management considered the impact of subsequent events for
potential recognition or disclosure in the financial statements. Management has determined there were no subsequent events that would need to be disclosed in the Fund’s financial statements.
|
NOTE 3 – SECURITIES VALUATION
The Fund has adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for
measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the
period and expanded disclosure of valuation levels for major security types. These inputs are summarized in the three broad levels listed below:
Level 1 –
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
|
Level 2 –
|
Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument
on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in
valuing the asset or liability, and would be based on the best information available.
|
22
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a
recurring basis.
Equity Securities – The Fund’s investments are carried at fair value. Equity 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 Global Market System for which market quotations are readily available shall be valued using the NASDAQ Official Closing Price (“NOCP”). If the NOCP is not available, such securities 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 securities which are not traded in the NASDAQ Global Market System shall be valued at the most recent
sales price. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in level 1 of the fair value hierarchy.
Investment Companies – Investments in open-end mutual funds, including money market funds, are generally priced
at their net asset value per share provided by the service agent of the funds and will be classified in level 1 of the fair value hierarchy.
Short-Term Securities – Short-term debt securities, including those securities having a maturity of 60 days or
less, are valued at the evaluated mean between the bid and asked prices. To the extent the inputs are observable and timely, these securities would be classified in level 2 of the fair value hierarchy.
Prior to the effectiveness of Rule 2a-5 on September 8, 2022, the Board of Trustees had delegated day-to-day valuation issues to a Valuation Committee
of the Trust which is comprised of representatives from the Fund’s administrator, U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”). The function of the Valuation Committee was to value securities
where current and reliable market quotations are not readily available or the closing price does not represent fair value by following procedures approved by the Board of Trustees. These procedures considered many factors, including the type of
security, size of holding, trading volume and news events. All actions taken by the Valuation Committee were subsequently reviewed and ratified by the Board of Trustees. The Valuation Committee served until September 7, 2022. Effective September
8, 2022, the Board of Trustees approved Chase Investment Counsel Corporation (the “Adviser”), as the Fund’s valuation designee under Rule 2a-5.
Depending on the relative significance of the valuation inputs, fair valued securities may be classified in either level 2 or level 3 of the fair value
hierarchy.
23
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is
a summary of the inputs used to value the Fund’s securities as of September 30, 2022:
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
Common Stocks
|
|||||||||||||||||
Communication Services
|
$
|
2,242,993
|
$
|
—
|
$
|
—
|
$
|
2,242,993
|
|||||||||
Consumer Discretionary
|
7,406,003
|
—
|
—
|
7,406,003
|
|||||||||||||
Consumer Staples
|
1,565,706
|
—
|
—
|
1,565,706
|
|||||||||||||
Energy
|
1,009,679
|
—
|
—
|
1,009,679
|
|||||||||||||
Financials
|
4,768,417
|
—
|
—
|
4,768,417
|
|||||||||||||
Health Care
|
8,576,363
|
—
|
—
|
8,576,363
|
|||||||||||||
Industrials
|
10,651,360
|
—
|
—
|
10,651,360
|
|||||||||||||
Materials
|
2,745,021
|
—
|
—
|
2,745,021
|
|||||||||||||
Real Estate
|
717,265
|
—
|
—
|
717,265
|
|||||||||||||
Technology
|
13,863,043
|
—
|
—
|
13,863,043
|
|||||||||||||
Utilities
|
1,899,864
|
—
|
—
|
1,899,864
|
|||||||||||||
Total Common Stocks
|
55,445,714
|
—
|
—
|
55,445,714
|
|||||||||||||
Money Market Fund
|
3,404,961
|
—
|
—
|
3,404,961
|
|||||||||||||
Total Investments in Securities
|
$
|
58,850,675
|
$
|
—
|
$
|
—
|
$
|
58,850,675
|
Refer to the Fund’s schedule of investments for a detailed break-out of common stocks by industry classification.
In October 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment
companies (“Rule 18f-4”). Funds were required to implement and comply with Rule 18f-4 by August 19, 2022. Rule 18f-4 imposes limits on the amount of derivatives a fund can enter into, eliminates the asset segregation framework currently used by
funds to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and requires funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk
management program and appoint a derivatives risk manager. On April 26, 2022, the Fund filed a supplement to its statutory prospectus and statement of additional information that states the Fund is prohibited from investing in derivatives.
In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for
determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 permits fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also
24
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In
connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and rescinded previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments.
The Fund is in compliance with Rule 2a-5, which had a compliance date of September 8, 2022.
The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain.
Although vaccines for COVID-19 are becoming more widely available, the ultimate economic fallout from the pandemic, amid the spread of COVID-19 variants, and the long-term impact on economies, markets, industries and individual companies are not
known. The operational and financial performance of individual companies and the market in general depends on future developments, including the duration and spread of any future outbreaks and the pace of recovery which may vary from market to
market, and such uncertainty may in turn adversely affect the value and liquidity of the Fund’s investments, impair the Fund’s ability to satisfy redemption requests, and negatively impact the Fund’s performance.
NOTE 4 – INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser provides the Fund with investment management services under the Fund’s investment advisory agreement. The Adviser furnishes all investment
advice, office space, facilities, and provides most of the personnel needed by the Fund. As compensation for its services, the Adviser is entitled to a monthly fee at the annual rate of 0.75% based upon the average daily net assets of the Fund. For
the year ended September 30, 2022, the advisory fees incurred by the Fund are disclosed in the statement of operations.
The Fund is responsible for its own operating expenses. The Adviser has contractually agreed to waive a portion of its management fees and pay expenses
of the Fund to ensure that the total annual fund operating expenses (excluding acquired fund fees and expenses, taxes, interest expense, extraordinary expenses, shareholder servicing fees or any other class-specific expenses) do not exceed 0.99% of
the Fund’s average daily net assets through at least January 27, 2023. Any such reductions made by the Adviser in its fees or payment of expenses which are the Fund’s obligation are subject to reimbursement by the Fund to the Adviser, if so
requested by the Adviser, in any subsequent month in the 36-month period from the date of the management fee reduction and expense payment if the aggregate amount actually paid by the Fund toward the operating expenses for such fiscal year (taking
into account the reimbursement) will not cause the Fund to exceed the lesser of: (1) the expense limitation in place at the time of the management fee reduction and expense payment; or (2) the expense limitation in place at the time of the
reimbursement. Any such reimbursement is also contingent upon Board of Trustees review and approval. Such reimbursement may not be paid
25
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
prior to the Fund’s payment of current ordinary operating expenses. For the year ended September 30, 2022, the Adviser reduced its fees in the amount of $130,664. The
Adviser may recapture portions of the amounts shown below no later than the corresponding dates.
Expiration
|
Amount
|
||||
9/30/23
|
$
|
28,116
|
|||
9/30/24
|
91,200
|
||||
9/30/25
|
130,664
|
||||
$
|
249,980
|
Fund Services serves as the Fund’s administrator, fund accountant and transfer agent. U.S. Bank N.A. serves as the Fund’s custodian (the “Custodian”).
The Custodian is an affiliate of Fund Services. Fund Services maintains the Fund’s books and records, calculates the Fund’s NAV, prepares various federal and state regulatory filings, coordinates the payment of fund expenses, reviews expense
accruals and prepares materials supplied to the Board of Trustees. The officers of the Trust, including the Chief Compliance Officer, are employees of Fund Services. Fees paid by the Fund for administration and accounting, transfer agency, custody
and compliance services for the year ended September 30, 2022, are disclosed in the statement of operations.
Quasar Distributors, LLC (“Quasar”) acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares. Quasar is a
wholly-owned broker-dealer subsidiary of Foreside Financial Group, LLC.
NOTE 5 – SHAREHOLDER SERVICING FEE
The Fund has entered into a shareholder servicing agreement (the “Agreement”) with the Adviser, under which the Fund’s Class N shares may pay servicing
fees at an annual rate of up to 0.15% of the average daily net assets of the Class N shares. Payments to the Adviser under the Agreement may reimburse the Adviser for payments it makes to selected brokers, dealers and administrators which have
entered into service agreements with the Adviser for services provided to shareholders of the Fund. The services provided by such intermediaries are primarily designed to assist shareholders of the Fund and include the furnishing of office space and
equipment, telephone facilities, personnel and assistance to the Fund in servicing such shareholders. Services provided by such intermediaries also include the provision of support services to the Fund and include establishing and maintaining
shareholders’ accounts and record processing, purchase and redemption transactions, answering routine client inquiries regarding the Fund, and providing such other personal services to shareholders as the Fund may reasonably request. For the year
ended September 30, 2022, the shareholder servicing fees incurred under the Agreement by the Fund’s Class N shares are disclosed in the statement of operations.
26
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
NOTE 6 – SECURITIES TRANSACTIONS
For the year ended September 30, 2022, the cost of purchases and the proceeds from sales of securities, excluding short-term securities, were
$86,138,945 and $94,052,888, respectively. There were no purchases or sales of U.S. government securities.
NOTE 7 – LINE OF CREDIT
The Fund has an unsecured line of credit in the amount of $8,000,000. The line of credit is intended to provide short-term financing, if necessary,
subject to certain restrictions, in connection with shareholder redemptions. The credit facility is with the Fund’s custodian, U.S. Bank N.A. During the year ended September 30, 2022, the Fund did not draw on its line of credit. At September 30,
2022, the Fund had no outstanding loan amounts.
NOTE 8 – INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid by the Fund during the years ended September 30, 2022 and September 30, 2021 was as follows:
Year Ended
|
Year Ended
|
||||||||
September 30, 2022
|
September 30, 2021
|
||||||||
Ordinary income
|
$
|
3,295,309
|
$
|
137,149
|
|||||
Long-term capital gains
|
10,508,946
|
5,149,140
|
As of September 30, 2022, the components of capital on a tax basis were as follows:
Cost of investments (a)
|
$
|
52,063,605
|
|||
Gross unrealized appreciation
|
8,760,335
|
||||
Gross unrealized depreciation
|
(1,973,265
|
)
|
|||
Net unrealized appreciation (a)
|
6,787,070
|
||||
Net unrealized depreciation on currency
|
(22
|
)
|
|||
Undistributed ordinary income
|
—
|
||||
Undistributed long-term capital gains
|
3,017,669
|
||||
Total distributable earnings
|
3,017,669
|
||||
Total accumulated earnings/(losses)
|
$
|
9,804,717
|
(a)
|
The book-basis and tax-basis net unrealized appreciation is the same.
|
27
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
NOTE 9 – PRINCIPAL RISKS
Below is a summary of some, but not all, of the principal risks of investing in the Fund, each of which may adversely affect the Fund’s net asset value
and total return. The Fund’s most recent prospectus provides further descriptions of the Fund’s investment objective, principal investment strategies and principal risks.
•
|
General Market Risk – Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or
conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in general financial markets, a particular financial
market or other asset classes due to a number of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability,
debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Fund’s investments may
be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, country instability, and infectious disease epidemics or pandemics. For example, the outbreak of COVID-19,
a novel coronavirus disease, has negatively affected economies, markets and individual companies throughout the world, including those in which the Fund invests. The effects of this pandemic to public health and business and market
conditions, including exchange trading suspensions and closures, may continue to have a significant negative impact on the performance of the Fund’s investments, increase the Fund’s volatility, negatively impact the Fund’s arbitrage and
pricing mechanisms, exacerbate pre-existing political, social and economic risks to the Fund, and negatively impact broad segments of businesses and populations. The Fund’s operations may be interrupted as a result, which may contribute to
the negative impact on investment performance. In addition, governments, their regulatory agencies, or self-regulatory organizations may take actions in response to the pandemic that affect the instruments in which the Fund invests, or the
issuers of such instruments, in ways that could have a significant negative impact on the Fund’s investment performance. The full impact of the COVID-19 pandemic, or other future epidemics or pandemics, is currently unknown.
|
|
•
|
Medium-Cap Companies Risk – Investing in securities of medium-capitalization companies may involve greater volatility than investing in larger companies because medium
capitalization companies can be subject to more abrupt or erratic share price changes than larger, more established companies.
|
28
Chase Growth Fund
NOTES TO FINANCIAL STATEMENTS at September 30, 2022, Continued
•
|
Large-Cap Companies Risk – Larger, more established companies may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative
smaller competitors. In addition, large-cap companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion.
|
|
•
|
Small-Cap Companies Risk – Investments in smaller or unseasoned companies involve much greater risk than investments in larger, more established companies due to smaller
companies being more likely to experience unexpected fluctuations in prices. This is due to the higher degree of uncertainty in a small-cap company’s growth prospects, the lower degree of liquidity in the market for small-cap stocks, and the
greater sensitivity of small-cap companies to changing economic conditions.
|
|
•
|
Depositary Receipt Risk – Depositary receipts involve risks similar to those associated with investments in foreign securities and certain additional risks. Investments
in foreign securities may involve financial, economic or political risks not ordinarily associated with the securities of U.S. issuers. Depositary receipts listed on U.S. exchanges are issued by banks or trust companies, and entitle the
holder to all dividends and capital gains that are paid out on the underlying foreign shares. When the Fund invests in depositary receipts as a substitute for an investment directly in the underlying foreign shares, the Fund is exposed to the
risk that the depositary receipts may not provide a return that corresponds precisely with that of the underlying foreign shares.
|
NOTE 10 – TRUSTEES AND OFFICERS
Mr. Joe Redwine became the Audit Chairman of the Board effective January 1, 2022. Ms. Michelle Sanville-Seebold resigned as Deputy Chief Compliance
Officer effective May 27, 2022.
29
Chase Growth Fund
To the Board of Trustees
Advisors Series Trust and
Shareholders of:
Chase Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of the Chase Growth Fund (the “Fund”), a series of Advisors Series Trust (the “Trust”), including the
schedule of investments, as of September 30, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, financial highlights for each of the five
years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of September 30,
2022, the results of its operation for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2003.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our
audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no
such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2022 by correspondence with the custodian. We believe that our
audits provide a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
November 29, 2022
30
Chase Growth Fund
NOTICE TO SHAREHOLDERS at September 30, 2022 (Unaudited)
For the year ended September 30, 2022, the Fund designated $3,295,309 and $10,508,946 as ordinary income and long-term capital gains, respectively, for
purposes of the dividends paid deduction.
Certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of
2003. For the year ended September 30, 2022, the percentage of dividends declared from net investment income designated as qualified dividend income in the Fund was 24.04%.
For corporate shareholders in the Fund the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the
year ended September 30, 2022 was 22.99%.
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section
871(k)(2)(C) for the Fund was 96.53%.
How to Obtain a Copy of the Fund’s Proxy Voting Policies
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without
charge, upon request, by calling 1-888-861-7556 or on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
How to Obtain a Copy of the Fund’s Proxy Voting Records for the 12-Month Period Ended June 30
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available
without charge, upon request, by calling 1-888-861-7556. Furthermore, you can obtain the Fund’s proxy voting records on the SEC’s website at http://www.sec.gov.
Quarterly Filings on Form N-PORT
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT.
The Fund’s Form N-PORT is available on the SEC’s website at http://www.sec.gov. Information included in the Fund’s Form N-PORT is also available, upon request, by calling 1-888-861-7556.
31
Chase Growth Fund
INFORMATION ABOUT TRUSTEES AND OFFICERS (Unaudited)
This chart provides information about the Trustees and Officers who oversee the Fund. Officers elected by the Trustees manage the day-to-day operations
of the Fund and execute policies formulated by the Trustees.
Number of
|
|||||
Term of
|
Portfolios
|
||||
Office
|
in Fund
|
Other
|
|||
Position
|
and Length
|
Complex
|
Directorships
|
||
Name, Address
|
Held with
|
of Time
|
Principal Occupation
|
Overseen by
|
Held During
|
and Age
|
the Trust
|
Served*
|
During Past Five Years
|
Trustee(2)
|
Past Five Years(3)
|
Independent Trustees(1)
|
|||||
David G. Mertens
|
Trustee
|
Indefinite
|
Partner and Head of Business
|
1
|
Trustee, Advisors
|
(age 62)
|
term; since
|
Development Ballast Equity
|
Series Trust
|
||
615 E. Michigan Street
|
March 2017.
|
Management, LLC (a privately-
|
(for series not
|
||
Milwaukee, WI 53202
|
held investment advisory firm)
|
affiliated with
|
|||
(February 2019 to present);
|
the Fund).
|
||||
Managing Director and Vice
|
|||||
President, Jensen Investment
|
|||||
Management, Inc. (a privately-
|
|||||
held investment advisory firm)
|
|||||
(2002 to 2017).
|
|||||
Joe D. Redwine
|
Trustee
|
Indefinite
|
Retired; formerly Manager,
|
1
|
Trustee, Advisors
|
(age 75)
|
term; since
|
President, CEO, U.S. Bancorp
|
Series Trust
|
||
615 E. Michigan Street
|
September
|
Fund Services, LLC and its
|
(for series not
|
||
Milwaukee, WI 53202
|
2008.
|
predecessors (May 1991 to
|
affiliated with
|
||
July 2017).
|
the Fund).
|
32
Chase Growth Fund
INFORMATION ABOUT TRUSTEES AND OFFICERS (Unaudited), Continued
Number of
|
|||||
Term of
|
Portfolios
|
||||
Office
|
in Fund
|
Other
|
|||
Position
|
and Length
|
Complex
|
Directorships
|
||
Name, Address
|
Held with
|
of Time
|
Principal Occupation
|
Overseen by
|
Held During
|
and Age
|
the Trust
|
Served*
|
During Past Five Years
|
Trustee(2)
|
Past Five Years(3)
|
Independent Trustees(1)
|
|||||
Raymond B. Woolson
|
Chairman
|
Indefinite
|
President, Apogee Group, Inc.
|
1
|
Trustee, Advisors
|
(age 63)
|
of the
|
term; since
|
(financial consulting firm)
|
Series Trust
|
|
615 E. Michigan Street
|
Board
|
January 2020.
|
(1998 to present).
|
(for series not
|
|
Milwaukee, WI 53202
|
affiliated with
|
||||
Trustee
|
Indefinite
|
the Fund);
|
|||
term; since
|
Independent
|
||||
January 2016.
|
Trustee,
|
||||
DoubleLine
|
|||||
Funds Trust
|
|||||
(an open-end
|
|||||
investment
|
|||||
company with
|
|||||
20 portfolios),
|
|||||
DoubleLine
|
|||||
Opportunistic
|
|||||
Credit Fund,
|
|||||
DoubleLine
|
|||||
Selective Credit
|
|||||
Fund and
|
|||||
DoubleLine
|
|||||
Income Solutions
|
|||||
Fund, from
|
|||||
2010 to present.
|
33
Chase Growth Fund
INFORMATION ABOUT TRUSTEES AND OFFICERS (Unaudited), Continued
Term of
|
|||
Position
|
Office and
|
||
Name, Address
|
Held with
|
Length of
|
Principal Occupation
|
and Age
|
the Trust
|
Time Served
|
During Past Five Years
|
Officers
|
|||
Jeffrey T. Rauman
|
President,
|
Indefinite
|
Senior Vice President, Compliance and Administration, U.S. Bank
|
(age 53)
|
Chief
|
term; since
|
Global Fund Services (February 1996 to present).
|
615 E. Michigan Street
|
Executive
|
December
|
|
Milwaukee, WI 53202
|
Officer and
|
2018.
|
|
Principal
|
|||
Executive
|
|||
Officer
|
|||
Cheryl L. King
|
Vice
|
Indefinite
|
Vice President, Compliance and Administration, U.S. Bank Global
|
(age 61)
|
President,
|
term; since
|
Fund Services (October 1998 to present).
|
615 E. Michigan Street
|
Treasurer and
|
December
|
|
Milwaukee, WI 53202
|
Principal
|
2007.
|
|
Financial
|
|||
Officer
|
|||
Kevin J. Hayden
|
Assistant
|
Indefinite
|
Vice President, Compliance and Administration, U.S. Bank Global
|
(age 51)
|
Treasurer
|
term; since
|
Fund Services (June 2005 to present).
|
615 E. Michigan Street
|
September
|
||
Milwaukee, WI 53202
|
2013.
|
||
Richard R. Conner
|
Assistant
|
Indefinite
|
Assistant Vice President, Compliance and Administration, U.S. Bank
|
(age 40)
|
Treasurer
|
term; since
|
Global Fund Services (July 2010 to present).
|
615 E. Michigan Street
|
December
|
||
Milwaukee, WI 53202
|
2018.
|
||
Michael L. Ceccato
|
Vice
|
Indefinite
|
Senior Vice President, U.S. Bank Global Fund Services and Vice
|
(age 65)
|
President,
|
term; since
|
President, U.S. Bank N.A. (February 2008 to present).
|
615 E. Michigan Street
|
Chief
|
September
|
|
Milwaukee, WI 53202
|
Compliance
|
2009.
|
|
Officer and
|
|||
AML Officer
|
|||
Elaine E. Richards
|
Vice
|
Indefinite
|
Senior Vice President, U.S. Bank Global Fund Services
|
(age 54)
|
President
|
term; since
|
(July 2007 to present).
|
2020 East Financial Way,
|
and Secretary
|
September
|
|
Suite 100
|
2019.
|
||
Glendora, CA 91741
|
34
Chase Growth Fund
INFORMATION ABOUT TRUSTEES AND OFFICERS (Unaudited), Continued
Term of
|
|||
Position
|
Office and
|
||
Name, Address
|
Held with
|
Length of
|
Principal Occupation
|
and Age
|
the Trust
|
Time Served
|
During Past Five Years
|
Officers
|
|||
Ryan Charles
|
Assistant
|
Indefinite
|
Assistant Vice President, U.S. Bank Global Fund Services
|
(age 44)
|
Secretary
|
term; since
|
(May 2021 to present); Chief Legal Officer and Secretary Davis
|
2020 East Financial Way,
|
January
|
Selected Advisers, L.P. (2004 to 2021).
|
|
Suite 100
|
2022.
|
||
Glendora, CA 91741
|
*
|
The Trustees have designated a mandatory retirement age of 75, such that each Trustee, serving as such on the date he or she reaches the age of 75, shall submit his or her resignation not later than the last
day of the calendar year in which his or her 75th birthday occurs (“Retiring Trustee”). Upon request, the Board may, by vote of a majority of Trustees eligible to vote on such matter, determine whether or not to extend such Retiring Trustee’s
term and on the length of a one-time extension of up to three additional years.
|
(1)
|
The Trustees of the Trust who are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”).
|
(2)
|
As of September 30, 2022, the Trust was comprised of 34 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund. The Fund does not hold itself out as
related to any other series within the Trust for investment purposes, nor does it share the same investment adviser with any other series.
|
(3)
|
“Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the Securities Exchange Act of 1934, as amended, (that is, “public companies”) or
other investment companies registered under the 1940 Act.
|
The Statement of Additional Information includes additional information about the Fund’s Trustees and Officers and is available, without charge, upon request by calling
1-888-861-7556.
HOUSEHOLDING
In an effort to decrease costs, the Fund will reduce the number of duplicate prospectuses, supplements, and certain other shareholder documents that you
receive by sending only one copy of each to those addresses shown by two or more accounts. Please call the Fund’s transfer agent toll free at 1-888-861-7556 to request individual copies of these documents. The Fund will begin sending individual
copies 30 days after receiving your request. This policy does not apply to account statements.
35
Chase Growth Fund
PRIVACY NOTICE
The Fund collects non-public information about you from the following sources:
•
|
Information we receive about you on applications or other forms;
|
•
|
Information you give us orally; and/or
|
•
|
Information about your transactions with us or others.
|
We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response
to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the information necessary to
carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of
confidentiality.
In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of
your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
36
(This Page Intentionally Left Blank.)
Adviser
Chase Investment Counsel Corporation
350 Old Ivy Way, Suite 100
Charlottesville, VA 22903
Distributor
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, WI 53202
Transfer Agent, Fund Accountant
and Fund Administrator
U.S. Bank Global Fund Services
615 East Michigan Street
Milwaukee, WI 53202
Custodian
U.S. Bank National Association
Custody Operations
1555 North RiverCenter Drive, Suite 302
Milwaukee, WI 53212
Independent Registered
Public Accounting Firm
Tait, Weller & Baker LLP
Two Liberty Place
50 South 16th Street, Suite 2900
Philadelphia, PA 19102
Legal Counsel
Sullivan & Worcester LLP
1633 Broadway, 32nd Floor
New York, NY 10019
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.
(b) Not applicable
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any substantive amendments to its code of ethics during the period covered by
this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that there is at least one audit committee financial expert serving on its audit committee. Mr. Joe D. Redwine is the “audit committee financial expert” and is considered to be “independent” as
each term is defined in Item 3 of Form N‑CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant's annual
financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the
principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant including the review of federal income tax returns, review of federal excise tax
returns, review of state tax returns, if any, and assistance with calculation of required income, capital gain and excise distributions. There were no “other services” provided by the principal accountant. The following table details the
aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
FYE
9/30/2022
|
FYE
9/30/2021
|
|
(a) Audit Fees
|
$18,900
|
$18,900
|
(b) Audit-Related Fees
|
N/A
|
N/A
|
(c) Tax Fees
|
$3,600
|
$3,600
|
(d) All Other Fees
|
N/A
|
N/A
|
(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre‑approve all audit and non‑audit services of the registrant, including services provided to any entity affiliated with the
registrant.
(e)(2) The percentage of fees billed by Tait, Weller, & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
FYE 9/30/2022
|
FYE 9/30/2021
|
|
Audit-Related Fees
|
0%
|
0%
|
Tax Fees
|
0%
|
0%
|
All Other Fees
|
0%
|
0%
|
(f) All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full‑time permanent employees of the principal accountant.
(g) The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other
controlling entity, etc.—not sub-adviser) for the last two years.
Non-Audit Related Fees
|
FYE 9/30/2022
|
FYE 9/30/2021
|
Registrant
|
N/A
|
N/A
|
Registrant’s Investment Adviser
|
N/A
|
N/A
|
(h) The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's
independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
The registrant has not been identified by the U.S. Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is
located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position taken by an authority in that jurisdiction.
The registrant is not a foreign issuer.
Item 5. Audit Committee of Listed Registrants.
(a) Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
(b) Not applicable.
Item 6. Investments.
(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a)
|
The Registrant’s President/Chief Executive Officer/Principal Executive Officer and Vice President/Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940, as amended, (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of
1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and
reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over financial reporting.
|
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or
more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
(Registrant) Advisors Series Trust
By (Signature and Title)* /s/ Jeffrey T. Rauman
Jeffrey T. Rauman, President/Chief Executive Officer/Principal
Executive Officer
Date 12/9/2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By (Signature and Title)* /s/ Jeffrey T. Rauman
Jeffrey T. Rauman, President/Chief Executive Officer/Principal
Executive Officer
Date 12/9/2022
By (Signature and Title)* /s/ Cheryl L. King
Cheryl L. King, Vice President/Treasurer/Principal Financial
Officer
Date 12/9/2022
* Print the name and title of each signing officer under his or her signature.
ATTACHMENTS / EXHIBITS
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