NOTE 1 -- ORGANIZATION
The Rockhaven Fund and The Rockhaven Premier Dividend Fund (the "Funds") are each a series of shares of
beneficial interest of Advisors Series Trust (the "Trust"), which is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Rockhaven Fund's primary investment
objective is obtaining above average current income together with capital appreciation. The Rockhaven Premier
Dividend Fund's primary investment objective is obtaining high current income and its secondary objective is
seeking capital appreciation. The Funds attempt to achieve their objectives by investing in a diversified portfolio
of equity securities. The Funds began operations on November 3, 1997.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds. These policies
are in conformity with generally accepted accounting principles.
A. SECURITY VALUATION: The Funds' investments are carried at fair value. Securities that are primarily
traded on a national securities exchange are 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 on the NASDAQ National Market System for which market
quotations are readily available are 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 are valued at the most recent traded price. Securities for
which market quotations are not readily available, if any, are valued following procedures approved by the Board
of Trustees. Short-term investments are valued at amortized cost, which approximates market value.
B. FEDERAL INCOME TAXES: It is the Funds' policy to comply with the requirements of