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Name | Symbol | Market | Type |
---|---|---|---|
Acadian Emerging Markets Debt Fund Insti (MM) | NASDAQ:AEMDX | NASDAQ | Fund |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06400
The Advisors Inner Circle Fund
(Exact name of registrant as specified in charter)
SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
(Address of principal executive offices) (Zip code)
CT Corporation
101 Federal Street
Boston, MA 02110
(Name and address of agent for service)
Registrants telephone number, including area code: (877) 446-3863
Date of fiscal year end: October 31, 2012
Date of reporting period: October 31, 2012
Item 1. Reports to Stockholders.
Managers Discussion of Fund Performance
Dear Shareholders:
The following table summarizes performance data for the FMC Strategic Value Fund (the Fund) for the periods indicated:
Periods Ended October 31, 2012 | ||||
Six Months | Twelve Months | |||
FMC Strategic Value Fund |
(2.92)% | 6.69% | ||
Russell 2000 Value Index |
2.69% | 14.47% |
Our results as shown above are clearly disappointing; this is not a position in which we usually have found ourselves. As a reflection of the continued short-term market volatility, our ego leads us to report that in the eleven calendar months ended November 30, 2012, our performance largely made up the shortfall and was only slightly behind the Russell 2000 Value Index. Nevertheless, it has been a frustrating year. We have had a number of stocks that have appreciated by more than 50%, including Agrium, AZZ, Jarden, Huntsman and Prestige Brands. These gains have been diluted by declines in Cenveo, Federal-Mogul, Polycom and RR Donnelley. In addition, our largest industry weighting is energy, a sector that has largely underperformed during the fiscal year. We think the development of shale reserves for both oil and gas hold important long-term positives for exploration and production companies as well as for oilfield services companies, and as a result we feel comfortable with our holdings. Finally, the Index, until recent months, has benefitted from the performance of the technology sector, a sector where we have been and are likely to remain underweighted, notwithstanding our comment below on Tech Data.
As noted above, volatility remains high and investor confidence seems low. Understandably it may be hard to find good news. The European debt crisis seems never ending, violence in the Middle East is surely disturbing, and with our presidential election concluded, we are now consumed with the fiscal cliff. To be sure an economic slowdown throughout the world, including the major growth engine, China, has reared its head and had an adverse impact on Q3 profits and those expected in Q4. That is, there have been more than a few disappointments reported, including reduced expectations/lower guidance for Q4. Notwithstanding these fears, valuations are quite conservative, and largely discount events that could prove transitory. Even our holdings that have performed well this year are selling at relatively low valuations based on our long-term expectations. While investors seeking yield have limited options today given the de minimis returns on both government bonds and high grade corporate bonds, low interest rates provide an important economic stimulus for corporate growth. Mr. William Conway, a co-founder and CEO of The Carlyle Group, a large and successful private equity firm, recently wrote that in 2011 and the first nine months of 2012, Carlyle committed over 50% of its capital in the U.S. with about two-thirds in Americas industrial and manufacturing sectors. Any way you look at it, now is a great time to invest and there is no better place than America.
In this environment we continue to find attractive equity values. Two new additions to the portfolio which we believe represent attractive long-term potential are Tech Data Corp and Allison Transmission.
Tech Data Corp is a global distributor of technology products acting as a middle man between the manufacturers such as Apple, Hewlett Packard, Cisco and IBM, and the vendors who are too small to buy direct. Importantly, the company has significantly limited its obsolescence risk as over 90% of its products have price protection. Growth is driven by the overall IT market which is historically growing at 4% 6% per year. In addition, the company has been increasing its market share particularly in Europe where the industry is fragmented including many small competitors. Currently, 60% of sales are in Europe and 40% in the Americas; the company also has designs of expanding into Asia.
In addition to its growth prospects we were attracted to Tech Data because its large representation in Europe has caused, in our opinion, an exaggerated and unwarranted decline in its stock price. On balance, the company is very profitable with a return on invested capital of 14% 16%. It also generates significant free cash flow which in part has been used for share repurchases; the company has bought back over 35% of its shares in the past five
1
years. We acquired our position at less than 10 times 2012 expected earnings, around 7 or 8 times free cash flow, and at a price almost equal to its tangible book value. Finally, despite swings in its need for working capital, Tech Data is virtually debt free.
Allison Transmission is the worlds largest manufacturer of fully automatic transmissions for commercial vehicles with a market share of 62% in its core on-highway market. A key competitive advantage for Allison, in our opinion, is its proprietary technology which is reflected in its operating profit margins of between 25% 30%. Despite overall industry cyclicality, growth is expected from further market penetration of automatic transmissions vs. manual transmissions, particularly in applications which require a high degree of start and stop activity. That is, improved technology is clearly enhancing Allisons prospects.
Allison was acquired from General Motors in 2007 by two private equity firms (Onex and Carlyle) who then sold a portion in an IPO earlier this year. We acquired our position at a discount to the IPO price of $23 per share. More important, we think the valuation is very attractive at 7 9 times free cash flow. The cash flow benefits from both an NOL and a stream of tax deductible intangible amortization expenses arising from a step-up in the tax basis of the assets at the time they were acquired by the private equity group. The current debt/EBITDA ratio is 4 times, but we expect management to use its significant free cash flow to rapidly deleverage the company to 2 2 1 / 2 times over the next couple of years. As such, lower interest expenses should be an important source of earnings growth.
Finally, as you were previously notified, Paul Patrick joined me as a Co-Portfolio Manager of the Fund on November 1, 2012. The addition of Paul has not changed the Funds investment objective or principal investment strategy. We continue to seek long-term capital appreciation by investing primarily in common stocks of U.S. companies with small to medium market capitalizations which we believe are selling at a market price below their intrinsic value. We expect that the Funds portfolio will broaden to include companies that Paul follows. Paul has been a research analyst with the Firm since 1999, in recent years he has added responsibility for managing accounts as well.
We appreciate your continued confidence.
Sincerely,
Edward I. Lefferman
Portfolio Manager
The information provided herein represents the opinion of the manager at a specific point in time and is not intended to be a forecast of future events, a guarantee of future results nor investment advice.
2
Comparison of Change in the Value of a $10,000 Investment
in the FMC Strategic Value Fund versus the Russell 2000 Value Index
AVERAGE ANNUAL TOTAL RETURN (1) FOR THE PERIODS ENDED OCTOBER 31, 2012 |
||||||||||||||||
1 Year
Return |
3 Year
Return |
5 Year
Return |
10 Year
Return |
|||||||||||||
FMC Strategic Value Fund | 6.69% | 9.55% | (0.10)% | 9.05% | ||||||||||||
Russell 2000 Value Index (2) | 14.47% | 13.83% | 0.87% | 9.38% |
(1) |
The data quoted herein represents past performance; past performance does not guarantee future results. The return and value of an investment in the Fund will fluctuate so that, when redeemed, the investment may be worth less than its original cost. The Funds performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a funds returns, do not include any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers were applied during earlier periods; if they had not been in effect, performance would have been lower. For performance data current to the most recent month end, please call 1-877-FMC-4099 (1-877-362-4099). |
(2) |
The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. |
Portfolio Composition (3)
(3) |
Portfolio composition percentages are based upon the total investments of the Fund. |
3
Schedule of Investments |
FMC Strategic Value Fund |
October 31, 2012
Shares |
Value (000) |
|||||||
Common Stock (89.6%) |
||||||||
Automotive (11.0%) |
||||||||
Allison Transmission Holdings |
170,000 | $ | 3,432 | |||||
Drew Industries* |
236,013 | 7,475 | ||||||
Federal-Mogul* |
463,000 | 3,491 | ||||||
Spartan Motors |
825,000 | 3,877 | ||||||
|
|
|||||||
18,275 | ||||||||
|
|
|||||||
Basic Industry (6.9%) |
||||||||
Harsco |
170,000 | 3,398 | ||||||
Mueller Industries |
184,000 | 8,059 | ||||||
|
|
|||||||
11,457 | ||||||||
|
|
|||||||
Chemicals (4.3%) |
||||||||
Huntsman |
480,000 | 7,219 | ||||||
|
|
|||||||
Energy (18.4%) |
||||||||
Approach Resources* |
440,000 | 10,837 | ||||||
Halliburton |
123,000 | 3,972 | ||||||
Range Resources |
190,000 | 12,418 | ||||||
Weatherford International Ltd.* |
300,000 | 3,390 | ||||||
|
|
|||||||
30,617 | ||||||||
|
|
|||||||
Financial Services (3.0%) |
||||||||
American Safety Insurance Holdings Ltd.* |
250,000 | 4,215 | ||||||
Old Republic International |
85,000 | 840 | ||||||
|
|
|||||||
5,055 | ||||||||
|
|
|||||||
Food (3.0%) |
||||||||
Agrium |
47,000 | 4,960 | ||||||
|
|
|||||||
Industrial/Manufacturing (7.9%) |
||||||||
Actuant, Cl A |
100,000 | 2,824 | ||||||
AZZ |
160,000 | 6,310 | ||||||
Mettler-Toledo International* |
24,000 | 4,065 | ||||||
|
|
|||||||
13,199 | ||||||||
|
|
|||||||
Miscellaneous (1.1%) |
||||||||
Leucadia National |
85,000 | 1,930 | ||||||
|
|
|||||||
Miscellaneous Consumer (10.6%) |
||||||||
Jarden* |
130,000 | 6,474 | ||||||
Prestige Brands Holdings* |
640,000 | 11,130 | ||||||
|
|
|||||||
17,604 | ||||||||
|
|
|||||||
Paper (4.5%) |
||||||||
Neenah Paper |
293,000 | 7,589 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
4
Schedule of Investments |
FMC Strategic Value Fund |
October 31, 2012
Shares/Face
(000) |
Value (000) |
|||||||
Printing & Publishing (2.9%) |
||||||||
Cenveo* |
895,000 | $ | 1,799 | |||||
RR Donnelley & Sons |
300,000 | 3,006 | ||||||
|
|
|||||||
4,805 | ||||||||
|
|
|||||||
Services (5.9%) |
||||||||
American Reprographics* |
531,150 | 2,034 | ||||||
United Stationers |
270,000 | 7,836 | ||||||
|
|
|||||||
9,870 | ||||||||
|
|
|||||||
Technology (5.8%) |
||||||||
MTS Systems |
65,000 | 3,276 | ||||||
Polycom* |
327,000 | 3,277 | ||||||
Tech Data* |
70,000 | 3,102 | ||||||
|
|
|||||||
9,655 | ||||||||
|
|
|||||||
Transportation Equipment (2.5%) |
||||||||
Commercial Vehicle Group* |
550,000 | 4,174 | ||||||
|
|
|||||||
Veterinary Services (1.8%) |
||||||||
VCA Antech* |
150,000 | 2,937 | ||||||
|
|
|||||||
Total Common Stock |
||||||||
(Cost $118,545) |
149,346 | |||||||
|
|
|||||||
Corporate Obligation (0.5%) |
||||||||
Cenveo |
||||||||
7.875%, 12/01/13 (Cost $761) |
$ | 772 | 764 | |||||
|
|
|||||||
Short-Term Investment (8.4%) |
||||||||
Dreyfus Treasury Prime Cash Management Fund, 0.001% (1) |
||||||||
(Cost $14,015) |
14,014,578 | 14,015 | ||||||
|
|
|||||||
Total Investments (98.5%) |
||||||||
(Cost $133,321) |
$ | 164,125 | ||||||
|
|
Percentages are based on Net Assets (in thousands) of $166,706.
* | Non-income producing security. |
(1) |
The rate shown is the 7-day effective yield as of October 31, 2012. |
Cl Class
Ltd. Limited
The accompanying notes are an integral part of the financial statements.
5
Statement of Assets and Liabilities (000) |
FMC Strategic Value Fund |
October 31, 2012
Assets: |
||||
Investments at Value (Cost $133,321) |
$ | 164,125 | ||
Receivable for Investment Securities Sold |
3,011 | |||
Dividend and Interest Receivable |
63 | |||
Receivable for Capital Shares Sold |
26 | |||
Other Assets |
11 | |||
|
||||
Total Assets |
167,236 | |||
|
||||
Liabilities: |
||||
Payable for Capital Shares Redeemed |
321 | |||
Payable to Investment Adviser |
146 | |||
Payable to Administrator |
17 | |||
Payable to Trustees and Officers |
5 | |||
Other Accrued Expenses |
41 | |||
|
||||
Total Liabilities |
530 | |||
|
||||
Net Assets |
$ | 166,706 | ||
|
||||
Net Assets Consist of: |
||||
Paid-in Capital |
$ | 137,527 | ||
Distributions in Excess of Net Investment Income |
(300 | ) | ||
Accumulated Net Realized Loss on Investments |
(1,325 | ) | ||
Net Unrealized Appreciation on Investments |
30,804 | |||
|
||||
Net Assets |
$ | 166,706 | ||
|
||||
Outstanding Shares of Beneficial Interest (unlimited authorization no par value) |
7,256,681 | (1) | ||
|
||||
Net Asset Value, Offering and Redemption Price Per Share |
$ | 22.97 | ||
|
(1) |
Shares have not been rounded. |
The accompanying notes are an integral part of the financial statements.
6
Statement of Operations (000) |
FMC Strategic Value Fund |
For the Year Ended October 31, 2012
Investment Income: |
||||
Dividend Income (Less Foreign Taxes Withheld of $6) |
$ | 1,919 | ||
Interest Income |
117 | |||
|
||||
Total Investment Income |
2,036 | |||
|
||||
Expenses: |
||||
Investment Advisory Fees |
1,813 | |||
Administration Fees |
214 | |||
Trustees and Officers Fees |
17 | |||
Transfer Agent Fees |
48 | |||
Professional Fees |
44 | |||
Printing Fees |
21 | |||
Registration and Filing Fees |
21 | |||
Custodian Fees |
7 | |||
Other Expenses |
13 | |||
|
||||
Total Expenses |
2,198 | |||
|
||||
Net Investment Loss |
(162 | ) | ||
|
||||
Net Realized Loss on Investments |
(95 | ) | ||
Net Change in Unrealized Appreciation (Depreciation) on Investments |
11,932 | |||
|
||||
Net Realized and Unrealized Gain on Investments |
11,837 | |||
|
||||
Net Increase in Net Assets Resulting From Operations |
$ | 11,675 | ||
|
The accompanying notes are an integral part of the financial statements.
7
Statement of Changes in Net Assets (000) |
FMC Strategic Value Fund |
For the Years Ended October 31,
2012 | 2011 | |||||||
Operations: |
||||||||
Net Investment Income (Loss) |
$ | (162 | ) | $ | 486 | |||
Net Realized Gain (Loss) on Investments |
(95 | ) | 1,001 | |||||
Net Change in Unrealized Appreciation (Depreciation) on Investments |
11,932 | 3,662 | ||||||
|
||||||||
Net Increase in Net Assets Resulting from Operations |
11,675 | 5,149 | ||||||
|
||||||||
Dividends and Distributions: |
||||||||
Net Investment Income |
(162 | ) | (636 | ) | ||||
Net Realized Gain |
(851 | ) | (1,019 | ) | ||||
Return of Capital |
(34 | ) | | |||||
|
||||||||
Total Dividends and Distributions |
(1,047 | ) | (1,655 | ) | ||||
|
||||||||
Capital Share Transactions: |
||||||||
Issued |
8,929 | 9,657 | ||||||
Reinvestment of Dividends |
1,042 | 1,639 | ||||||
Redeemed |
(39,383 | ) | (17,351 | ) | ||||
|
||||||||
Net Decrease in Net Assets Derived from Capital Share Transactions |
(29,412 | ) | (6,055 | ) | ||||
|
||||||||
Total Decrease in Net Assets |
(18,784 | ) | (2,561 | ) | ||||
|
||||||||
Net Assets: |
||||||||
Beginning of Year |
185,490 | 188,051 | ||||||
|
||||||||
End of Year |
$ | 166,706 | $ | 185,490 | ||||
|
||||||||
Distributions in Excess of Net Investment Income |
$ | (300 | ) | $ | | |||
|
||||||||
Shares Transactions: |
||||||||
Issued |
386 | 402 | ||||||
Reinvestment of Dividends |
51 | 71 | ||||||
Redeemed |
(1,743 | ) | (736 | ) | ||||
|
||||||||
Net Decrease in Shares Outstanding from
|
(1,306 | ) | (263 | ) | ||||
|
Amounts designated as are $0.
The accompanying notes are an integral part of the financial statements.
8
Financial Highlights |
FMC Strategic Value Fund |
For a Share Outstanding Throughout Each Year
For the Years Ended October 31,
Net
Asset Value, Beginning of Year |
Net
Investment Income (Loss) (1) |
Realized
and Unrealized Gain (Loss) on Investments |
Total
from Operations |
Dividends
from Net Investment Income |
Distributions
from Net Realized Gains |
Return of
Capital |
Total
Dividends and Distributions |
Net
Asset Value, End of Year |
Total
Return (2) |
Net
Assets End of Year (000) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income (Loss) to Average Net Assets |
Portfolio
Turnover Rate |
|||||||||||||||||||||||||||||||||||||||||||
2012 |
$ | 21.66 | $ | (0.02 | ) | $ | 1.45 | $ | 1.43 | $ | (0.02 | ) | $ | (0.10 | ) | $ | | (3) | $ | (0.12 | ) | $ | 22.97 | 6.69 | % | $ | 166,706 | 1.21 | % | (0.09 | )% | 8 | % | |||||||||||||||||||||||
2011 |
21.31 | 0.06 | 0.48 | 0.54 | (0.07 | ) | (0.12 | ) | | (0.19 | ) | 21.66 | 2.47 | 185,490 | 1.21 | 0.24 | 6 | |||||||||||||||||||||||||||||||||||||||
2010 |
17.73 | | 3.59 | 3.59 | (0.01 | ) | | | (0.01 | ) | 21.31 | 20.27 | 188,051 | 1.21 | 0.02 | 21 | ||||||||||||||||||||||||||||||||||||||||
2009 |
14.98 | 0.01 | 2.79 | 2.80 | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.05 | ) | 17.73 | 18.84 | 169,650 | 1.24 | 0.04 | 11 | ||||||||||||||||||||||||||||||||||||||
2008 |
25.15 | 0.05 | (8.75 | ) | (8.70 | ) | (0.07 | ) | (1.40 | ) | | (1.47 | ) | 14.98 | (36.30 | ) | 165,210 | 1.18 | 0.25 | 30 |
(1) | Per share calculations were performed using average shares for the year. |
(2) | Total returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon the redemption of Fund shares. |
(3) | Includes return of capital of less than $0.01. |
Amounts designated as are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
9
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
1. Organization:
The Advisors Inner Circle Fund (the Trust) is organized as a Massachusetts business trust under an Amended and Restated Agreement and Declaration of Trust dated February 18, 1997. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with 45 funds. The financial statements herein are those of the FMC Strategic Value Fund (the Fund and together with the FMC Select Fund, the Funds). The Fund is classified as a diversified investment company under the 1940 Act. The Fund seeks to provide long-term capital appreciation by investing primarily in equity securities of U.S. companies with small to medium market capitalizations that First Manhattan Co., investment adviser to the Fund (the Adviser), considers undervalued by the market. The financial statements of the remaining funds of the Trust are not presented herein, but are presented separately. The assets of each fund within the Trust are segregated, and a shareholders interest is limited to the fund in which shares are held.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies followed by the Fund.
Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the fair value of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Security Valuation Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are
traded, or, if there is no such reported sale, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Values of debt securities are generally reported at the last sales price if the security is actively traded. If a debt security is not actively traded it is valued at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.
Securities for which market prices are not readily available are valued in accordance with Fair Value Procedures established by the Funds Board of Trustees (the Board). The Funds Fair Value Procedures are implemented through a Fair Value Committee (the Committee) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the securitys trading has been halted or suspended; the security has been de-listed from a national exchange; the securitys primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the securitys primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of October 31, 2012, there were no securities valued in accordance with the Fair Value Procedures.
For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular securitys last
10
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
trade and the time at which the Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates net asset value if an event that materially affected the value of those securities (a Significant Event) has occurred between the time of the securitys last close and the time that the Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the Adviser becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates net asset value, it may request that a Committee meeting be called. In addition, SEI Investments Global Funds Services (the Administrator), a wholly owned subsidiary of SEI Investments Company, monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time the Fund calculates net asset value. If price movements in a monitored index or security exceed levels established by the Administrator and the Fund holds the relevant securities, then the Administrator will notify the Adviser that such limits have been exceeded. In such event, the Adviser makes the determination whether a Committee meeting should be called based on the information provided.
In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received if an asset were sold or paid if a liability were transferred in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
The three levels of the fair value hierarchy are described below:
Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;
Level 2 Quoted prices which are not active, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
Level 3 Prices, inputs or proprietary modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).
Effective May 1, 2012, the Fund adopted Accounting Standards Update (ASU) No. 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 requires reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 requires reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The adoption of ASU 2011-04 had no impact on the Funds net assets.
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several
11
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
The following table summarizes the valuation of the investments in securities, in thousands, within the fair value hierarchy levels as of October 31, 2012:
Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Common Stock |
$ | 149,346 | $ | | $ | | $ | 149,346 | ||||||||
Corporate Obligation |
| 764 | | 764 | ||||||||||||
Short-Term Investment |
14,015 | | | 14,015 | ||||||||||||
|
||||||||||||||||
Total |
$ | 163,361 | $ | 764 | $ | | $ | 164,125 | ||||||||
|
Amounts designated as are $0.
During the year ended October 31, 2012, there were no significant changes to the Funds fair valuation methodologies.
During the year ended October 31, 2012, there were no transfers between Level 1 and Level 2 assets and liabilities. For the year ended October 31, 2012, the Fund did not hold any Level 3 securities.
Federal Income Taxes It is the Funds intention to continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to its shareholders. Accordingly, no provision for Federal income taxes has been made in the financial statements.
The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Funds tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current period. The Fund did not record any tax provision in the current period. However, managements conclusions
regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three open tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.
As of and during the year ended October 31, 2012, the Fund did not have any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended October 31, 2012, the Fund did not incur any interest or penalties.
Foreign Currency Translation The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Fund does not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities.
Security Transactions and Investment Income Security transactions are accounted for on the date the security is purchased or sold (trade date) for financial reporting purposes. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities sold. Discounts or premiums are amortized to interest income using the effective interest method. Interest income is recognized on the accrual basis from settlement date. Dividend income is recorded on the ex-date.
Expenses Expenses that are directly related to the Fund are charged to the Fund. Other operating expenses of the Trust are allocated to the Fund on a pro rata basis based on the number of funds and/or relative net assets.
Dividends and Distributions to Shareholders Dividends from net investment income, if any, are declared and paid to shareholders quarterly. Any net realized capital gains are distributed to shareholders at least annually.
12
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
3. Transactions with Affiliates:
Certain officers of the Trust are also officers of the Administrator, and/or SEI Investments Distribution Co. (the Distributor). Such officers are paid no fees by the Trust, other than the Chief Compliance Officer (CCO) as described below, for serving as officers of the Trust.
A portion of the services provided by the CCO and his staff, each of whom is an employee of the Administrator, is paid for by the Trust as incurred. The services include regulatory oversight of the Trusts advisers and service providers as required by Securities and Exchange Commission (SEC) regulations. The CCOs services and fees have been approved by and are reviewed by the Board. For the year ended October 31, 2012, the Fund was allocated CCO fees totaling $5,457.
The Fund effects brokerage or other agency transactions through the Adviser, a registered broker-dealer, and pays brokerage commissions consistent with the applicable requirements of the Investment Company Act of 1940, the Securities and Exchange Act of 1934 and rules promulgated by the SEC. For the year ended October 31, 2012, the Adviser received $18,676 in brokerage commissions from the Fund.
4. Administration, Distribution, Transfer Agent and Custodian Agreements:
The Funds and the Administrator are parties to an Administration Agreement under which the Administrator provides management and administrative services to the Funds for an annual fee equal to the higher of $75,000 or 0.12% of the Funds average daily net assets of the first $350 million, 0.10% of the Funds average daily net assets of the next $150 million, 0.08% of the Funds average daily net assets of the next $500 million, and 0.06% of the Funds average daily net assets in excess of $1 billion.
The Trust and Distributor are parties to a Distribution Agreement. The Distributor receives no fees for its distribution services under this agreement.
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for the Fund under a transfer agency agreement with the Trust.
U.S. Bank, N.A. acts as custodian (the Custodian) for the Fund. The Custodian plays no role in determining the investment policies of the Fund or which securities are to be purchased and/or sold by the Fund.
5. Investment Advisory Agreement:
The Trust and the Adviser are parties to an Investment Advisory Agreement under which the Adviser receives an annual fee equal to 1.00% of the Funds average daily net assets. The Adviser has, on a voluntary basis, agreed to waive its fee in order to limit the Funds total operating expenses to a maximum of 1.30% of the Funds average daily net assets. The Adviser reserves the right to terminate this arrangement at any time at its sole discretion. There were no fees waived during the year ended October 31, 2012.
6. Investment Transactions:
The cost of security purchases and the proceeds from security sales, other than short-term investments, in thousands, for the year ended October 31, 2012, were as follows:
Purchases |
$ | 13,855 | ||
Sales |
53,607 |
7. Federal Tax Information:
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or to paid-in capital as appropriate, in the period that the differences arise. Accordingly, the
13
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
following permanent differences, in thousands, primarily attributable to real estate investment trust adjustments and distribution adjustments, have been reclassified to/from the following accounts as of October 31, 2012:
Undistributed
Net Investment Income |
Accumulated
Net Realized Loss |
Paid-in Capital | ||
$57 | $(23) | $(34) |
These reclassifications had no impact on net assets or net asset value per share.
The tax character of dividends and distributions, in thousands, declared during the years ended October 31, 2012 and October 31, 2011 was as follows:
Ordinary
Income |
Long-Term
Capital Gains |
Return of
Capital |
Total | |||||||||||||||||
2012 |
$ | 584 | $ | 429 | $ | 34 | $ | 1,047 | ||||||||||||
2011 |
636 | 1,019 | | 1,655 |
Amounts designated as are $0.
As of October 31, 2012, the components of distributable earnings, in thousands, on a tax basis were as follows:
Capital Loss Carryforwards |
$ | (118 | ) | |
Late-Year Loss Deferral |
(301 | ) | ||
Unrealized Appreciation |
29,598 | |||
|
|
|||
Total Distributable Earnings |
$ | 29,179 | ||
|
|
For Federal income tax purposes, capital losses incurred in taxable years beginning before December 22, 2010 may be carried forward for a maximum period of eight years and applied against future net capital gains.
Under the recently enacted Regulated Investment Company Modernization Act of 2010, a fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this new ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. As of October 31, 2012, the Fund had $118 of long-term losses carried forward, in thousands, under these new provisions.
Deferred late-year losses represent ordinary losses realized on investment transactions from January 1, 2012 through October 31, 2012 and specified losses realized on investment transactions from November 1, 2011 through October 31, 2012, that, in accordance with Federal income tax regulations, the Fund defers and treats as having arisen in the following fiscal year.
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments, in thousands, held by the Fund at October 31, 2012, were as follows:
Federal
Tax Cost |
Aggregate
Gross Unrealized Appreciation |
Aggregate
Gross Unrealized Depreciation |
Net
Unrealized Appreciation |
|||||||||||||||
$134,527 | $ | 54,537 | $ | (24,939 | ) | $ | 29,598 |
8. Other:
At October 31, 2012, one shareholder of record held 91% of the Funds total outstanding shares. The shareholder of record was an omnibus account for the exclusive benefit of customers maintained by the Adviser, through Pershing LLC, in its capacity as a broker-dealer.
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.
9. Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued a further update to the guidance Balance Sheet Disclosures about
14
Notes to Financial Statements |
FMC Strategic Value Fund |
October 31, 2012
Offsetting Assets and Liabilities. The amendments to this standard require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The amended guidance is effective for interim and annual reporting periods beginning after January 1, 2013. At this time, management is evaluating the implications of this update and its impact on the financial statements has not been determined.
10. Subsequent Events:
There were no matters requiring additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued.
15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of The Advisors Inner Circle Fund and Shareholders of
FMC Strategic Value Fund
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the FMC Strategic Value Fund (one of the series constituting The Advisors Inner Circle Fund (the Trust)) as of October 31, 2012, and 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, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trusts internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2012, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the FMC Strategic Value Fund of The Advisors Inner Circle Fund at October 31, 2012, the results of its operations 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 U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
December 27, 2012
16
Disclosure of Fund Expenses |
FMC Strategic Value Fund |
(Unaudited)
All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important that you understand how these costs affect your investment returns.
Operating expenses such as these are deducted from a mutual funds gross income and directly reduce its final investment return. These expenses are expressed as a percentage of a mutual funds average net assets; this percentage is known as a mutual funds expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The table below illustrates your Funds costs in two ways:
|
Actual Fund Return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The Expenses Paid During Period column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the Ending Account Value number is derived from deducting that expense cost from the Funds gross investment return. |
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under Expenses Paid During Period.
|
Hypothetical 5% Return. This section helps you compare your Funds costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the period, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Funds comparative cost by comparing the hypothetical result for your Fund in the Expenses Paid During Period column with those that appear in the same charts in the shareholder reports for other mutual funds. |
Note: Because the hypothetical return is set at 5% for comparison purposes NOT your Funds actual return the account values shown may not apply to your specific investment.
Beginning
Account Value 05/01/12 |
Ending
Account Value 10/31/12 |
Annualized
Expense Ratios |
Expenses
Paid During Period* |
|||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 970.80 | 1.21 | % | $ | 6.01 | ||||||||
Hypothetical 5% Return |
1,000.00 | 1,019.11 | 1.21 | 6.16 |
* | Expenses are equal to the Funds annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
17
Trustees and Officers of The Advisors Inner Circle Fund (Unaudited)
Set forth below are the names, ages, position with the Trust, term of office, and the principal occupations for the last five years of each of the persons currently serving as the Trustees and Officers of the Trust. Trustees who are deemed not to be interested persons of the Trust are referred to as Independent Board Members. Messrs. Nesher and Doran are Trustees who may be deemed to be interested persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Trusts Distributor. The Trusts Statement of Additional Information (SAI) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-877-362-4099. The following chart lists Trustees and Officers as of October 31, 2012.
1 | Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456. |
2 | Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trusts Declaration of Trust. |
3 | Denotes Trustees who may be deemed to be interested persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Distributor and/or its affiliates. |
4 | Board Members oversee 45 funds in The Advisors Inner Circle Fund. |
5 | Directorships of Companies required to report to the Securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., public companies) or other investment companies under the 1940 act. |
18
Trustees and Officers of The Advisors Inner Circle Fund (Unaudited)
1 | Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456. |
2 | Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trusts Declaration of Trust. |
3 | Board Members oversee 45 funds in The Advisors Inner Circle Fund. |
4 | Directorships of Companies required to report to the Securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., public companies) or other investment companies under the 1940 act. |
19
Trustees and Officers of The Advisors Inner Circle Fund (Unaudited)
1 | Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456. |
2 | Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns, or is removed in accordance with the Trusts Declaration of Trust. |
3 | Board Members oversee 45 funds in The Advisors Inner Circle Fund. |
4 | Directorships of Companies required to report to the Securities and Exchange Commission under the Securities Exchange act of 1934 (i.e., public companies) or other investment companies under the 1940 act. |
20
Trustees and Officers of The Advisors Inner Circle Fund (Unaudited)
Name,
Address,
Age 1 |
Position(s) Held
and Length of
|
Principal Occupation(s) During the Past 5 Years |
Other Directorships Held by Officer |
|||
OFFICERS | ||||||
MICHAEL BEATTIE 47 yrs. old |
President (Since 2011) |
Director of Client Service at SEI from 2004 to 2011. Vice President at SEI from 2009 to November 2011. | None. | |||
MICHAEL LAWSON 52 yrs. old |
Treasurer, Controller and Chief Financial Officer (Since 2005) |
Director, SEI Investments, Fund Accounting since July 2005. Manager, SEI Investments, Fund Accounting at SEI Investments AVP from April 1995 to February 1998 and November 1998 to July 2005. | None. | |||
RUSSELL EMERY 49 yrs. old |
Chief Compliance Officer (Since 2006) |
Chief Compliance Officer of SEI Structured Credit Fund, LP and SEI Alpha Strategy Portfolios, LP since June 2007. Chief Compliance Officer of SEI Opportunity Fund, L.P., SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Daily Income Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust since March 2006. | None. | |||
DIANNE M. SULZBACH 35 yrs. old |
Vice President and Secretary (Since 2011) |
Counsel at SEI Investments since 2010. Associate at Morgan, Lewis & Bockius LLP from 2006 to 2010. Associate at Morrison & Foerster LLP from 2003 to 2006. Associate at Stradley Ronon Stevens & Young LLP from 2002 to 2003. | None | |||
TIMOTHY D. BARTO 44 yrs. old |
Vice President and Assistant Secretary (Since 1999) |
General Counsel and Secretary of SIMC and the Administrator since 2004. Vice President of SIMC and the Administrator since 1999. Vice President and Assistant Secretary of SEI Investments since 2001. Assistant Secretary of SIMC, the Administrator and the Distributor, and Vice President of the Distributor from 1999 to 2003. | None. | |||
KERI ROHN 32 yrs. old |
Privacy Officer (Since 2009) AML Officer (Since 2011) |
Compliance Officer at SEI Investments since 2003. | None. | |||
JOHN MUNCH 41 yrs. old |
Vice President and Assistant Secretary (Since 2012) |
Attorney SEI Investments Company since 2001. | None. |
1 | Unless otherwise noted, the business address of each trustee is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456. |
21
NOTICE TO SHAREHOLDERS
OF
FMC STRATEGIC VALUE FUND
(Unaudited)
For shareholders that do not have an October 31, 2012 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2012 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended October 31, 2012, the Fund is designating the following items with regard to distributions paid during the year.
Return
|
Long-Term
|
Ordinary
|
Total
|
Dividends
|
Qualifying
|
U.S.
|
Interest
|
Short-Term
|
||||||||
3.26% | 40.93% | 55.81% | 100.00% | 100.00% | 100.00% | 0.00% | 4.35% | 100.00% |
(1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). |
(2) | The percentage in this column represents the amount of Qualifying Dividend Income as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reflected as a percentage of ordinary income distributions (the total of short-term capital gain and net investment income distributions). It is the intention of the Fund to designate the maximum amount permitted by the law. |
(3) | U.S. Government Interest represents the amount of interest that was derived from direct U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of ordinary income distributions (the total of short-term capital gain and net investment income distributions). However, for shareholders of the Fund who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemptions of these amounts in state income. |
(4) | The percentage in this column represents the amount of Interest Related Dividends as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of net investment income distributions that is exempt from U.S. withholding tax when paid to foreign investors. |
(5) | The percentage in this column represents the amount of Short-Term Capital Gain Dividends as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of short-term capital gain distributions that is exempt from U.S. withholding tax when paid to foreign investors. |
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2012. Complete information will be computed and reported in conjunction with your 2012 Form 1099-DIV.
22
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrants principal executive officer, principal financial officer, controller or principal accounting officer, and any person who performs a similar function.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrants board of trustees has determined that the Registrant has at least one audit committee financial expert serving on the audit committee.
(a)(2) The audit committee financial experts are John Darr and George Sullivan, and they are independent as defined in Form N-CSR Item 3(a)(2).
Item 4. Principal Accountant Fees and Services.
Fees billed by PricewaterhouseCoopers LLP (PwC) related to the Trust
PwC billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years was as follows:
2012 | 2011 | |||||||||||||||||||||||||
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
|||||||||||||||||||||
(a) |
Audit Fees | $ | 250,692 | $ | 0 | $ | 0 | $ | 209,462 | $ | 0 | $ | 0 | |||||||||||||
(b) |
Audit-Related Fees | $ | 12,000 | $ | 0 | $ | 0 | $ | 11,286 | $ | 0 | $ | 0 | |||||||||||||
(c) |
Tax Fees | $ | 55,000 | $ | 0 | $ | 0 | $ | 56,000 | $ | 0 | $ | 0 | |||||||||||||
(d) |
All Other Fees | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Fees billed by Ernst & Young LLP (E&Y) related to the Trust
E&Y billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years was as follows:
2012 | 2011 | |||||||||||||||||
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
|||||||||||||
(a) |
Audit Fees | $ | 406,500 | N/A | N/A | $ | 341,200 | N/A | N/A | |||||||||
(b) |
Audit-Related Fees | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||
(c) |
Tax Fees | $ | 11,292 | N/A | N/A | N/A | N/A | N/A | ||||||||||
(d) |
All Other Fees | N/A | N/A | N/A | N/A | N/A | N/A |
Fees billed by Deloitte & Touche LLP (D&T) related to the Trust
D&T billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years was as follows:
2012 | 2011 | |||||||||||||||
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
All fees and
services to the Trust that were pre- approved |
All fees and
services to service affiliates that were pre- approved |
All other fees
and services to service affiliates that did not require pre- approval |
|||||||||||
(a) |
Audit Fees | $ | 120,000 | N/A | N/A | N/A | N/A | N/A | ||||||||
(b) |
Audit-Related Fees | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||
(c) |
Tax Fees | $ | 69,000 | N/A | N/A | N/A | N/A | N/A | ||||||||
(d) |
All Other Fees | N/A | N/A | N/A | N/A | N/A | N/A |
(e)(1) Not applicable.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows (PwC):
2012 | 2011 | |||||||
Audit-Related Fees |
5 | % | 4 | % | ||||
Tax Fees |
23 | % | 20 | % | ||||
All Other Fees |
0 | % | 0 | % |
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows (E&Y):
2012 | 2011 | |||||||
Audit-Related Fees |
0 | % | 0 | % | ||||
Tax Fees |
3 | % | 0 | % | ||||
All Other Fees |
0 | % | 0 | % |
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows (D&T):
2012 | 2011 | |||||||
Audit-Related Fees |
0 | % | N/A | |||||
Tax Fees |
58 | % | N/A | |||||
All Other Fees |
0 | % | N/A |
(f) Not applicable.
(g) The aggregate non-audit fees and services billed by PwC for the last two fiscal years were $29,771,000 and $34,500,000 for 2012 and 2011, respectively.
(g) The aggregate non-audit fees and services billed by E&Y for the last two fiscal years were $0 and $0 for 2012 and 2011, respectively.
(g) The aggregate non-audit fees and services billed by D&T for the last two fiscal years were $0 and $0 for 2012 and 2011, respectively.
(h) During the past fiscal year, all non-audit services provided by Registrants principal accountant to either Registrants investment adviser or to any entity controlling, controlled by, or under common control with Registrants investment adviser that provides ongoing services to Registrant were pre-approved by the audit committee of Registrants Board of Trustees. Included in the audit committees pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountants independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end management investment companies.
Item 6. Schedule of Investments
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.
Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrants Board of Trustees during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There has been no change in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Code of Ethics attached hereto.
(a)(2) A separate certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | The Advisors Inner Circle Fund | |||||
By (Signature and Title)* |
/s/ M ICHAEL B EATTIE |
|||||
Michael Beattie, President | ||||||
Date: January 4, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, 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/ M ICHAEL B EATTIE |
|||||
Michael Beattie, President | ||||||
Date: January 4, 2013 | ||||||
By (Signature and Title)* |
/s/ M ICHAEL L AWSON |
|||||
Michael Lawson, Treasurer, Controller & CFO |
||||||
Date: January 4, 2013 |
* | Print the name and title of each signing officer under his or her signature. |
1 Year Acadian Emerging Markets Debt Fund Insti (MM) Chart |
1 Month Acadian Emerging Markets Debt Fund Insti (MM) Chart |
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