NOTE 1 - ORGANIZATION
The Avatar Advantage International Equity Allocation Fund (the "Fund") is a series of shares of beneficial interest
of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund began operations on February 2, 1998.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are
in conformity with generally accepted accounting principles.
A. SECURITY VALUATION: The Fund's investments are carried at fair value. Securities that are primarily
traded on a national securities exchange shall be valued at the last sale price on the exchange on which they are
primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid
and asked prices.
Securities primarily traded in the NASDAQ National Market System for which market quotations are readily
available shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at
the mean between the bid and asked prices. Over-the-counter ("OTC") securities which are not traded in the
NASDAQ National Market System shall be valued at the most recent trade price. Securities for which market
quotations are not readily available, if any, are valued following procedures approved by the Board of Trustees.
Short-term investments are valued at amortized cost, which approximates market value.
B. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
C. SECURITY TRANSACTIONS, DIVIDENDS AND DISTRIBUTIONS: Security transactions are
accounted for on the trade date. Dividend income and distributions to shareholders, which are determined