semi-annual report to shareholders april 30, 2015lsvasset.com/pdf/fund-docs/lsvvx_sar_2015.pdf ·...

THE ADVISORS’ INNER CIRCLE FUND

SEMI-ANNUAL REPORT TO SHAREHOLDERS

April 30, 2015

This information must be preceded oraccompanied by a current prospectus.

Investors should read the prospectus carefullybefore investing.

MANAGER’S DISCUSSION AND ANALYSIS OF FUND PERFORMANCESemi-Annual Report to Shareholders

As of April 30, 2015 (Unaudited)

The total net of fee return of the LSV Conservative Value Equity Fund and the benchmark Russell 1000 ValueIndex for trailing periods ended April 30, 2015, were as follows:

6 MonthsEnded4/30/15

1 YearEnded

4/30/15*

3 YearsEnded

4/30/15*

5 YearsEnded

4/30/15*Since

Inception*

LSV Conservative Value Equity Fund,Institutional Class 2.79% 8.72% 18.25% 13.57% 4.95%

Benchmark:Russell 1000 Value Index 2.89 9.31 17.20 13.39 5.40

* As of 4/30/15; periods longer than one year are annualized; inception date is 3/30/07; net of fees.

The performance data quoted represents past performance. Past performance does not guarantee futureresults. The investment return and principal value of an investment will fluctuate so that an investor’s shareswhen redeemed, may be worth more or less than their original cost and current performance may be lower orhigher than the performance quoted. For performance data current to the most recent month end, please call888-FUND-LSV (888-386-3578).

U.S. equity markets continued to generate decent returns in the trailing 6-month period. The S&P 500 Index posteda positive return in 1Q15 for the 9th straight quarter. Growth stocks fared better during the trailing 6-month period asthe Russell 1000 Growth Index was up 6.6% and the Russell 1000 Value Index (benchmark) was up 2.9%. For thetrailing 1-year period, the spread is significant as the Russell 1000 Growth Index is up 16.7% while the Russell 1000Value Index is up only 9.3%.

Not surprisingly, LSV’s deep value exposure relative to the benchmark detracted from results during theperiod. However, stock selection was strong which kept performance nearly in line vs. the Russell 1000 Valuebenchmark. Fund holdings performed particularly well in the Technology, Materials and ConsumerDiscretionary sectors. Overall sector allocations detracted modestly due mostly to an overweight to theTechnology sector. Our model continues to identify attractive valuations within the sector and as a result, theFund has been at a maximum overweight relative to the benchmark weight for some time now. This had anegative impact during the period as Technology was the worst performing sector.

The Fund’s valuations moved higher during the trailing 6-month period but still trade at a significant discountto the value benchmark. The portfolio is trading at 14.5x forward earnings compared to 17.1x for the valuebenchmark, 1.8x book value compared to 1.9x for the benchmark and 9.2x cash flow compared to 10.5x forthe Russell 1000 Value Index. The portfolio is also yielding 2.6%.

Sector weightings are a result of our bottom-up stock selection process subject to minimum and maximumexposures to sectors and industries. At April 30, the Fund’s biggest overweights are to the Technology,Materials and Consumer Discretionary sectors while the largest underweights are to the Financials, HealthCare and Consumer Staples sectors. At the industry level, the portfolio was overweight Insurance andTechnology Hardware while underweight REITs, Health Care Equipment Supplies and Diversified FinancialServices.

Our organization remains stable and our research team continues to pursue an active research agenda inwhich we are looking for better ways to measure value and identify signs of positive change. As always, weare focused on delivering the long-term results that our investors have come to expect from LSV and that wehave delivered for clients since 1994.

This material represents the manager’s assessment of the portfolio and market environment at a specific pointin time and should not be relied upon by the reader as research or investment advice. Investing involves risk

1

including loss of principal. The information provided herein represents the opinion of the manager and is notintended to be a forecast of future events, a guarantee of future results or investment advice.

The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equityuniverse. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecastedgrowth values.

The Russell 1000 Value Index is a widely-recognized, capitalization-weighted (companies with larger marketcapitalizations have more influence than those with smaller market capitalization) index of U.S. companieswith lower forecasted growth rates and price-to-book ratios.

The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry grouprepresentation. It is a market-value weighted index (stock price times number of shares outstanding) , witheach stock’s weight in the Index proportionate to its market value. The S&P 500 Index is one of the mostwidely used benchmarks of U.S. equity performance.

Index Returns are for illustrative purposes only and do not represent actual fund performance. Indexperformance returns do not reflect any manage fees, transaction costs or expenses. Indexes are unmanagedand one cannot invest directly in an index. Past performance does not guarantee future results.

2

April 30, 2015 (Unaudited)

Sector Weightings †:

11.9% Health Care

8.0% Consumer Discretionary

26.9% Financials

2.4% Telecommunication Services

10.5% Industrials

11.3% Energy

4.9% Materials

1.7% Repurchase Agreement

4.8% Utilities

12.1% Information Technology

5.5% Consumer Staples

† Percentages are based on total investments.

Schedule of InvestmentsLSV Conservative ValueEquity Fund Shares

Value(000)

Common Stock (98.2%)Aerospace & Defense (3.0%)

Boeing 2,900 $ 416General Dynamics 1,800 247L-3 Communications Holdings,

Cl 3 1,600 184Northrop Grumman 4,700 724Orbital ATK 1,500 110Raytheon 3,300 343United Technologies 5,000 569

2,593

Agricultural Operations (0.7%)Archer-Daniels-Midland 11,900 582

Agricultural Products (0.8%)Bunge 4,900 423Ingredion 3,100 246

669

Air Freight & Logistics (0.6%)FedEx 3,200 543

Aircraft (1.3%)Delta Air Lines 13,600 607Lockheed Martin 1,100 205Southwest Airlines 8,000 325

1,137

Apparel Retail (0.3%)Gap 6,400 254

Asset Management & Custody Banks (0.9%)Ameriprise Financial 2,500 313State Street 6,300 486

799

Automotive (3.5%)Autoliv 1,800 214Cooper Tire & Rubber 7,900 336

SharesValue(000)

Automotive (continued)Ford Motor 56,800 $ 897General Motors 26,000 911Lear 3,000 333TRW Automotive Holdings* 3,200 336

3,027

Banks (9.9%)Bank of America 66,700 1,062CIT Group 7,500 338Fifth Third Bancorp 16,900 338Huntington Bancshares 27,400 298JPMorgan Chase 35,700 2,258Keycorp 26,500 383PNC Financial Services Group 7,100 651Regions Financial 35,300 347SunTrust Banks 11,500 477US Bancorp 7,300 313Wells Fargo 36,400 2,006

8,471

Biotechnology (0.4%)Amgen 2,200 348

Cable & Satellite (0.3%)DIRECTV* 2,400 218

Casinos & Gaming (0.0%)International Game

Technology* 1 —

Chemicals (2.3%)Celanese, Cl A 6,500 431Dow Chemical 18,200 928Huntsman 8,700 201LyondellBasell Industries, Cl A 4,000 414

1,974

Commercial Printing (0.2%)RR Donnelley & Sons 10,100 188

Computer & Electronics Retail (0.6%)Best Buy 9,400 325GameStop, Cl A 5,600 216

541

Computers & Services (5.5%)Apple 3,300 413CA 4,500 143Computer Sciences 4,900 316EMC 21,200 570Hewlett-Packard 26,800 884Microsoft 20,700 1,007Oracle 4,600 201Seagate Technology 4,700 276Symantec 18,900 471Western Digital 4,300 420

4,701

The accompanying notes are an integral part of the financial statements.

3

Schedule of Investments


LSV Conservative ValueEquity Fund Shares

Value(000)

Consumer Discretionary (1.4%)Procter & Gamble 15,000 $ 1,193

Diversified Metals & Mining (0.2%)Freeport-McMoRan 8,700 203

Diversified REIT’s (0.4%)Duke Realty 18,800 372

Drug Retail (0.5%)CVS Health 4,300 427

Electrical Services (6.8%)Ameren 7,900 324American Electric Power 9,500 540Consolidated Edison 6,700 412Edison International 9,100 555Entergy 5,200 401Exelon 12,200 415General Electric 71,200 1,928Pinnacle West Capital 5,900 361Public Service Enterprise

Group 12,800 532SCANA 5,700 302

5,770

Fertilizers & Agricultural Chemicals (0.6%)CF Industries Holdings 1,800 517

Financial Services (3.9%)Capital One Financial 8,000 647Citigroup 17,700 944Discover Financial Services 3,900 226Goldman Sachs Group 6,200 1,218Navient 17,400 340

3,375

Food, Beverage & Tobacco (0.8%)ConAgra Foods 8,500 307Tyson Foods, Cl A 8,100 320Universal 1,400 66

693

General Merchandise Stores (0.4%)Target 4,500 355

Health Care Equipment (0.8%)Baxter International 4,700 323Medtronic 4,500 335

658

Health Care Facilities (0.5%)HCA Holdings* 6,000 444

Health Care Services (0.3%)Quest Diagnostics 4,400 314

Homefurnishing Retail (0.3%)Bed Bath & Beyond* 4,000 282

Household Products, Furniture & Fixtures (0.6%)Whirlpool 2,900 509

SharesValue(000)

Independent Power Producers & EnergyTraders (0.3%)AES 18,800 $ 249

Insurance (11.0%)ACE 2,700 289Aetna 6,600 705Aflac 3,700 233Allstate 8,700 606American International Group 5,800 327Anthem 5,000 755Assurant 3,600 221Berkshire Hathaway, Cl B* 11,100 1,568Chubb 4,600 452CIGNA 2,900 362Hartford Financial Services

Group 9,100 371Lincoln National 6,800 384MetLife 15,300 785Prudential Financial 5,500 449Travelers 4,800 485UnitedHealth Group 6,600 735Unum Group 9,900 338XL Group, Cl A 10,400 386

9,451

IT Consulting & Other Services (0.5%)International Business

Machines 2,400 411

Machinery (2.3%)AGCO 4,900 252Caterpillar 7,900 686Deere 5,800 525Oshkosh 4,400 237Parker Hannifin 2,300 275

1,975

Metal & Glass Containers (0.2%)Owens-Illinois* 5,800 139

Mortgage REIT’s (0.4%)Annaly Capital Management 29,100 293

Multimedia (0.6%)Time Warner 3,100 262Viacom, Cl B 3,600 250

512

Office Electronics (0.4%)Xerox 32,200 370

Office Equipment (0.2%)Pitney Bowes 7,700 172

Office REIT’s (0.6%)Brandywine Realty Trust 17,800 259DuPont Fabros Technology 7,700 240

499


4



LSV Conservative ValueEquity Fund Shares

Value(000)

Oil & Gas Equipment & Services (0.5%)Halliburton 3,100 $ 152National Oilwell Varco 4,800 261

413

Paper & Paper Products (0.8%)Domtar 7,800 337International Paper 6,800 365

702

Paper Packaging (0.8%)Avery Dennison 5,300 295Rock-Tenn, Cl A 6,000 378

673

Petroleum & Fuel Products (10.3%)Apache 3,300 226California Resources 4,160 39Chevron 15,000 1,666ConocoPhillips 8,200 557Exxon Mobil 33,700 2,944Helmerich & Payne 2,700 211HollyFrontier 4,700 182Marathon Petroleum 5,400 532Murphy Oil 5,700 271Nabors Industries 13,900 232Occidental Petroleum 5,500 441Phillips 66 8,100 642Tesoro 3,700 318Valero Energy 9,900 563

8,824

Petroleum Refining (0.5%)Hess 6,000 461

Pharmaceuticals (6.9%)AbbVie 4,200 271Johnson & Johnson 22,700 2,252Merck 16,100 959Pfizer 71,500 2,426

5,908

Printing & Publishing (0.6%)Gannett 8,600 295Lexmark International, Cl A 4,400 195

490

Railroads (0.6%)Norfolk Southern 5,000 504

Reinsurance (1.4%)Everest Re Group 1,700 304Montpelier Re Holdings 6,000 229PartnerRe 2,400 307Reinsurance Group of America,

Cl A 1,700 156Validus Holdings 5,200 217

1,213

Shares/Face

AmountValue(000)

Retail (2.3%)Kohl’s 6,400 $ 458Kroger 4,000 276Macy’s 6,000 388Wal-Mart Stores 11,000 858

1,980

Semi-Conductors/Instruments (2.2%)Intel 51,500 1,676TE Connectivity 3,000 200

1,876

Specialized REIT’s (1.4%)GEO Group 6,100 238Hospitality Properties Trust 8,900 268LaSalle Hotel Properties 5,500 202Omega Healthcare Investors 12,500 451

1,159

Telephones & Telecommunications (5.6%)AT&T 50,900 1,763Cisco Systems 57,100 1,646Corning 26,000 544Harris 3,400 273Juniper Networks 13,300 352Verizon Communications 4,900 247

4,825

Total Common Stock(Cost $66,191) 84,256

Repurchase Agreement (1.7%)Morgan Stanley

0.090%, dated 04/30/15, tobe repurchased on05/01/15, repurchase price$1,478 (collateralized by USTreasury Note, par value$1,465, 2.125%, 08/15/21;with a total market value of$1,508) $ 1,478 1,478

Total Repurchase Agreement(Cost $1,478) 1,478

Total Investments — 99.9%(Cost $67,669) $85,734

Percentages are based on Net Assets of $85,817 (000).* Non-income producing security.Cl ClassREIT Real Estate Investment TrustAmounts designated as “—” are $0 or have been rounded to$0.


5



The following is a summary of the inputs used as ofApril 30, 2015, in valuing the Fund’s investmentscarried at value ($ Thousands):

Investments inSecurities Level 1 Level 2 Level 3 Total

Common Stock $84,256 $ — $ — $84,256Repurchase

Agreement — 1,478 — 1,478

Total Investmentsin Securities $84,256 $1,478 $ — $85,734

For the six months ended April 30, 2015, there were notransfers between Level 1 and Level 2 assets andliabilities.

For the six months ended April 30, 2015, there were noLevel 3 securities.

For more information on valuation inputs, see Note 2 —Significant Accounting Policies in the Notes toFinancial Statements.


6

Statement of Assets and Liabilities (000)


LSV ConservativeValue Equity Fund

Assets:Investments at Value (Cost $67,669) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,734Dividend and Interest Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Reclaim Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,843

Liabilities:Payable due to Investment Adviser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Payable due to Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Payable due to Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Payable due to Distributor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —Payable due to Chief Compliance Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —Other Accrued Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,817

Net Assets Consist of:Paid-in Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,932Undistributed Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531Accumulated Net Realized Loss on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,711)Net Unrealized Appreciation on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,065

Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,817

Net Asset Value, Offering and Redemption Price Per Share — Institutional Shares($85,785 ÷ 7,745,425 shares)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11.08

Net Asset Value, Offering and Redemption Price Per Share — Investor Shares($32 ÷ 2,927 shares)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11.05*

(1) Shares have not been rounded.

* Net Assets divided by shares do not calculate to the stated NAV because Net Asset amounts are shown rounded.

Amounts designated as “—” are $0 or have been rounded to $0.


7

Statement of Operations (000)

For the six months ended April 30, 2015 (Unaudited)


Investment Income:Dividend Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,003

Total Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,003

Expenses:Investment Advisory Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156Administration Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Trustees’ Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Chief Compliance Officer Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —Distribution Fees - Investor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —Transfer Agent Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Registration and Filing Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Professional Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Printing Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Custodian Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Insurance and Other Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240Less: Waiver of Investment Advisory Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (96)Less: Fees Paid Indirectly — (see Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —

Net Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 859

Net Realized Gain on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,172Net Change in Unrealized Appreciation (Depreciation) on Investments . . . . . . . . . . . . . . . . . 196

Net Realized and Unrealized Gain on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,368

Net Increase in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,227



8

Statement of Changes in Net Assets (000)


And for the year ended October 31, 2014


11/1/2014 to4/30/2015

11/1/2013 to10/31/2014

Operations:Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 859 $ 1,953Net Realized Gain on Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,172 26,644Net Change in Unrealized Appreciation (Depreciation) on Investments . . . . . 196 (14,607)

Net Increase in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . 2,227 13,990

Dividends and Distributions From:Net Investment Income:Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,683) (3,047)Investor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

Net Realized Gain:Institutional Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,837) —Investor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) —

Total Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,522) (3,047)

Capital Share Transactions:Institutional Class:Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,635 25,545Reinvestment of Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,337 2,940Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,065) (114,052)

Net Increase (Decrease) from Institutional Class Capital ShareTransactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,907 (85,567)

Investor Class:Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 6Reinvestment of Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 —Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) —

Net Increase from Investor Class Capital Share Transactions . . . . . . . . . . . 29 6

Net Increase (Decrease) in Net Assets Derived from Capital ShareTransactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,936 (85,561)

Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,641 (74,618)

Net Assets:Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,176 153,794

End of Year/Period (including undistributed net investment income of $531and $1,355, respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,817 $ 79,176



9

Statement of Changes in Net Assets (000)


And for the year ended October 31, 2014


11/1/2014 to4/30/2015

11/1/2013 to10/31/2014

Shares Transactions:Institutional Class:Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756 2,168Reinvestment of Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . 823 263Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (274) (10,316)

Total Institutional Class Share Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . 1,305 (7,885)

Shares Transactions:Investor Class:Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1Reinvestment of Dividends and Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . — —Redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

Total Investor Class Share Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1

Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . 1,307 (7,884)



10

Financial Highlights

For a share outstanding throughout each period

For the six months ended April 30, 2015 (Unaudited) and for the years/period ended October 31,

NetAssetValue

Beginningof Period

NetInvestmentIncome(1)

Realizedand

UnrealizedGains on

Investments

Totalfrom

Operations

DividendsfromNet

InvestmentIncome

Distributionsfrom

RealizedGain

TotalDividends

andDistributions

NetAssetValueEnd ofPeriod

TotalReturn†

NetAssetsEnd ofPeriod(000)

Ratio ofExpensesto AverageNet Assets

Ratio ofExpensesto AverageNet Assets(ExcludingWaivers)

Ratioof Net

InvestmentIncome

to AverageNet Assets

PortfolioTurnover

Rate‡

LSV Conservative Value Equity Fund

Institutional Class2015* $12.29 $0.12 $0.23 $0.35 $(0.23) $(1.33) $(1.56) $11.08 2.79% $ 85,785 0.35% 0.58% 2.09% 6%2014 10.74 0.23 1.53 1.76 (0.21) — (0.21) 12.29 16.61 79,170 0.35 0.56 2.02 262013 8.26 0.21 2.49 2.70 (0.22) — (0.22) 10.74 33.60 153,794 0.35 0.52 2.25 152012 7.30 0.18 0.95 1.13 (0.17) — (0.17) 8.26 15.80 124,774 0.35 0.53 2.34 122011 7.20 0.10 0.15 0.25 (0.15) — (0.15) 7.30 3.44 166,944 0.35 0.50 2.00 162010 6.47 0.14 0.74 0.88 (0.15) — (0.15) 7.20 13.76 198,616 0.35 0.49 2.05 31Investor Class2015* $12.28 $0.10 $0.22 $0.32 $(0.22) $(1.33) $(1.55) $11.05 2.56% $ 32 0.60% 0.84% 1.74% 6%2014** 12.01 0.07 0.20 0.27 — — — 12.28 2.25 6 0.60 0.86 1.46 26

* For the first six months ended April 30, 2015. All ratios for the period have been annualized.

** Commenced operations on June 10, 2014. All ratios for the period have been annualized.

† Total return is for the period indicated and has not been annualized. Total return would have been lower had the adviser notwaived a portion of its fee. Total returns shown do not reflect the deduction of taxes that a shareholder would pay on Funddistributions or the redemption of Fund shares.

‡ Portfolio turnover rate is for the period indicated and has not been annualized.

(1) Per share calculations were performed using average shares for the period.



11

Notes to Financial Statements


1. Organization:

The Advisors’ Inner Circle Fund (the “Trust”) isorganized as a Massachusetts business trust under anAmended and Restated Agreement and Declaration ofTrust dated February 18, 1997. The Trust is registeredunder the Investment Company Act of 1940, asamended, as an open-end management investmentcompany with 54 funds. The financial statementsherein are those of the LSV Conservative Value EquityFund, a diversified Fund (the “Fund”). The Fund seekslong-term growth of capital by investing in undervaluedstocks of medium to large U.S. companies which areout of favor in the market. The financial statements ofthe remaining funds of the Trust are not presentedherein, but are presented separately. The assets ofeach fund are segregated, and a shareholder’s interestis limited to the fund in which shares are held.

The LSV Conservative Value Equity Fund InvestorClass commenced operations on June 10, 2014.

2. Significant Accounting Policies:

The following is a summary of the significantaccounting policies followed by the Fund.

Use of Estimates — The Fund is an investmentcompany in conformity with U.S. generally acceptedaccounting principles (“U.S. GAAP”). Therefore, theFund follows the accounting and reportingguidelines for investment companies. Thepreparation of financial statements, in conformitywith U.S. GAAP requires management to makeestimates and assumptions that affect the fair valueof assets and liabilities and disclosure of contingentassets and liabilities at the date of the financialstatements and the reported amounts of increasesand decreases in net assets from operations duringthe reporting period. Actual results could differ fromthose estimates and such differences could bematerial.

Security Valuation — Securities listed on a securitiesexchange, market or automated quotation system forwhich quotations are readily available (except forsecurities traded on NASDAQ), including securitiestraded over the counter, are valued at the lastquoted sale price on the primary exchange ormarket (foreign or domestic) on which they aretraded, or, if there is no such reported sale, at themost recent quoted bid price. For securities tradedon NASDAQ, the NASDAQ Official Closing Price willbe used. Values of debt securities are generallyreported at the last reported sales price if thesecurity is actively traded. If a debt security is notactively traded it is valued at an evaluated bid priceby employing methodologies that utilize actual

market transactions, broker-supplied valuations, orother methodologies designed to identify the marketvalue for such securities. Debt obligations withremaining maturities of sixty days or less may bevalued at their amortized cost, which approximatesmarket value. The prices for foreign securities arereported in local currency and converted to U.S.dollars using currency exchange rates.

Securities for which market prices are not “readilyavailable” are valued in accordance with Fair ValueProcedures established by the Fund’s Board ofTrustees (the “Board”). The Fund’s Fair ValueProcedures are implemented through a Fair ValueCommittee (the “Committee”) designated by theBoard. Some of the more common reasons that maynecessitate that a security be valued using Fair ValueProcedures include: the security’s trading has beenhalted or suspended; the security has been de-listedfrom a national exchange; the security’s primarytrading market is temporarily closed at a time whenunder normal conditions it would be open; the securityhas not been traded for an extended period of time;the security’s primary pricing source is not able orwilling to provide a price; or trading of the security issubject to local government-imposed restrictions.When a security is valued in accordance with the FairValue Procedures, the Committee will determine thevalue after taking into consideration relevantinformation reasonably available to the Committee. AtApril 30, 2015, there were no securities valued inaccordance with the Fair Value procedures.

In accordance with the authoritative guidance on fairvalue measurements and disclosure under U.S.GAAP, the Fund discloses fair value of itsinvestments in a hierarchy that prioritizes the inputsto valuation techniques used to measure the fairvalue. The objective of a fair value measurement is todetermine the price that would be received to sell anasset or paid to transfer a liability in an orderlytransaction between market participants at themeasurement date (an exit price). Accordingly, thefair value hierarchy gives the highest priority toquoted prices (unadjusted) in active markets foridentical assets or liabilities (Level 1) and the lowestpriority to unobservable inputs (Level 3). The threelevels of the fair value hierarchy are described below:

Level 1 — Unadjusted quoted prices in activemarkets for identical, unrestricted assets or liabilitiesthat the Fund has the ability to access at themeasurement date;

Level 2 — Other significant observable inputs(includes quoted prices for similar securities, interestrates, prepayment speeds, credit risk, referenced

12



indices, quoted prices in inactive markets, adjustedquoted prices in active markets, etc.); and

Level 3 — Prices, inputs or proprietary modelingtechniques which are both significant to the fairvalue measurement and unobservable (supportedby little or no market activity).

Investments are classified within the level of thelowest significant input considered in determiningfair value. Investments classified within Level 3whose fair value measurement considers severalinputs may include Level 1 or Level 2 inputs ascomponents of the overall fair value measurement.

For the six months ended April 30, 2015, there havebeen no significant changes to the Fund’s fairvaluation methodologies.

Federal Income Taxes — It is the Fund’s intention tocontinue to qualify as a regulated investmentcompany for Federal income tax purposes bycomplying with the appropriate provisions ofSubchapter M of the Internal Revenue Code of 1986as amended and to distribute substantially all of itsincome to its shareholders. Accordingly, noprovision for Federal income taxes has been madein the financial statements.

The Fund evaluates tax positions taken or expectedto be taken in the course of preparing the Fund’s taxreturns to determine whether it is “more-likely-than-not” (i.e., greater than 50-percent) that each taxposition will be sustained upon examination by ataxing authority based on the technical merits of theposition. Tax positions not deemed to meet themore-likely-than-not threshold are recorded as a taxbenefit or expense in the current year. The Fund didnot record any tax provision in the current period.However, management’s conclusions regarding taxpositions taken may be subject to review andadjustment at a later date based on factorsincluding, but not limited to, examination by taxauthorities on open tax years (i.e. the last three opentax year ends, as applicable), on-going analysis ofand changes to tax laws, regulations andinterpretations thereof.

As of and during the six months ended April 30,2015, the Fund did not have any unrecognized taxbenefits. The Fund recognizes interest and penalties,if any, related to unrecognized tax benefits as incometax expense in the Statement of Operations. Duringthe six months ended April 30, 2015, the Fund didnot incur any interest or penalties.

Security Transactions and Investment Income —Security transactions are accounted for on tradedate for financial reporting purposes. Costs used in

determining realized gains or losses on the sale ofinvestment securities are based on the specificidentification method. Dividend income is recordedon the ex-dividend date. Interest income isrecognized on the accrual basis from settlementdate.

Investments in REITs — With respect to the Fund,dividend income is recorded based on the incomeincluded in distributions received from the REITinvestments using published REIT reclassificationsincluding some management estimates when actualamounts are not available. Distributions received inexcess of this estimated amount are recorded as areduction of the cost of investments or reclassified tocapital gains. The actual amounts of income, returnof capital, and capital gains are only determined byeach REIT after its fiscal year-end, and may differfrom the estimated amounts.

Repurchase Agreements — In connection withtransactions involving repurchase agreements, athird party custodian bank takes possession of theunderlying securities (“collateral”), the value of whichexceeds the principal amount of the repurchasetransaction, including accrued interest. Suchcollateral will be cash, debt securities issued orguaranteed by the U.S. Government, securities thatat the time the repurchase agreement is entered intoare rated in the highest category by a nationallyrecognized statistical rating organization (“NRSRO”)or unrated category by an NRSRO, as determinedby the Adviser. In the event of default on theobligation to repurchase, the Fund has the right toliquidate the collateral and apply the proceeds insatisfaction of the obligation. In the event of defaultor bankruptcy by the counterparty to the agreement,realization and/or retention of the collateral orproceeds may be subject to legal proceedings.

Expenses — Expenses that are directly related tothe Fund are charged to the Fund. Other operatingexpenses of the Trust are prorated to the Fundbased on the number of funds and/or relative dailynet assets.

Classes — Class specific expenses are borne bythat class of shares. Income, realized and unrealizedgains and losses and non-class specific expensesare allocated to the respective class on the basis ofrelative daily net assets.

Dividends and Distributions to Shareholders —Dividends from net investment income, if any, aredeclared and paid to shareholders annually. Any netrealized capital gains are distributed to shareholdersat least annually.

13



3. Transactions with Affiliates:

Certain officers of the Trust are also officers of SEIInvestments Global Funds Services (the“Administrator”), a wholly owned subsidiary of SEIInvestments Company and/or SEI InvestmentsDistribution Co. (the “Distributor”). Such officers arepaid no fees by the Trust for serving as officers of theTrust other than the Chief Compliance Officer (“CCO”)as described below.

A portion of the services provided by the CCO and hisstaff, whom are employees of the Administrator, arepaid for by the Trust as incurred. The services includeregulatory oversight of the Trust’s Advisors and serviceproviders as required by SEC regulations. The CCO’sservices have been approved by and reviewed by theBoard.

4. Administration, Distribution, Transfer Agencyand Custodian Agreements:

The Fund, along with other series of the Trust advised byLSV Asset Management (the “Adviser”) and theAdministrator are parties to an Administration Agreement,under which the Administrator provides administrativeservices to the Fund. For these services, the Administratoris paid an asset based fee, which will vary depending onthe number of share classes and the average daily netassets of the Fund. For the six months ended April 30,2015, the Fund paid $28,961 for these services.

The Trust and Distributor are parties to a DistributionAgreement dated November 14, 1991, as Amended andRestated November 14, 2005. The Distributor receivesno fees for its distribution services under this agreement.

The Fund has adopted a distribution plan under theRule 12b-1 under the 1940 Act for Investor ClassShares that allows the Fund to pay distribution andservice fees for the sale and distribution of its shares,and for services provided to shareholders. Themaximum annual distribution fee for Investor ClassShares of the Fund is 0.25% annually of the averagedaily net assets. For the six months ended April 30,2015, the Fund incurred $28 of distribution fees.

DST Systems, Inc. serves as the transfer agent anddividend disbursing agent for the Fund under atransfer agency agreement with the Trust. During thesix months ended April 30, 2015, the Fund earned $2in cash management credits which were used to offsettransfer agent expenses. This amount is labeled as“Fees Paid Indirectly” on the Statement of Operations.

U.S. Bank, N.A. acts as custodian (the “Custodian”) forthe Fund. The Custodian plays no role in determiningthe investment policies of the Fund or which securitiesare to be purchased and sold by the Fund.

5. Investment Advisory Agreement:

The Trust and the Adviser are parties to an InvestmentAdvisory Agreement under which the Adviser receivesan annual fee equal to 0.38% of the Fund’s averagedaily net assets. The Adviser has contractually agreedto waive its fee (excluding interest, taxes, brokeragecommissions, acquired fund fees and expenses, andextraordinary expenses) in order to limit the Fund’stotal operating expenses after fee waivers and/orexpense reimbursements to a maximum of 0.35% and0.60% of the Fund’s Institutional Class and InvestorClass Shares’ average daily net assets, respectively,through February 29, 2016.

6. Investment Transactions:

The cost of security purchases and the proceeds fromsecurity sales, other than short-term investments, for thesix months ended April 30, 2015, were as follows (000):

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,262Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,567

7. Federal Tax Information:

The amount and character of income and capital gaindistributions to be paid, if any, are determined inaccordance with Federal income tax regulations, whichmay differ from U.S. generally accepted accountingprinciples. As a result, net investment income (loss)and net realized gain (loss) on investment transactionsfor a reporting period may differ significantly fromdistributions during such period. These book/taxdifferences may be temporary or permanent. To theextent these differences are permanent in nature, theyare charged or credited to undistributed netinvestment income (loss), accumulated net realizedgain (loss) or to paid-in-capital, as appropriate, in theperiod that the differences arise.

The tax character of dividends and distributionsdeclared during the years ended October 31, 2014and 2013 was as follows:

OrdinaryIncome

2014 $3,0472013 3,395

As of October 31, 2014, the components of distributableearnings on a tax basis were as follows (000):

Undistributed Ordinary Income $ 1,355Undistributed Long-Term Capital Gain 8,838Capital Loss Carryforward (18,838)Unrealized Appreciation 17,825

Total Distributable Earnings $ 9,180

14



For Federal income tax purposes, capital lossesincurred in taxable years beginning beforeDecember 22, 2010, the date of enactment of theRegulated Investment Company Modernization Act of2010 (“pre-RIC Mod losses”), may be carried forwardfor a maximum of eight years and applied againstfuture capital gains. The Fund has the following pre-RIC Mod losses which expire on the following datesexcept that the carryforwards may be subject to annuallimitations (000):

Expires10/31/17

Expires10/31/18

Expires10/31/19 Total

$14,590 $2,028 $2,220 $18,838

Under the Regulated Investment CompanyModernization Act of 2010, the Fund is permitted tocarry forward capital losses incurred in taxable yearsbeginning after December 22, 2010 for an unlimitedperiod. However, any losses incurred during thosefuture taxable years will be required to be utilized priorto the losses incurred in pre-enactment taxable years.As a result of this ordering rule, pre-enactment capitalloss carryforwards may be more likely to expireunused. Additionally, post-enactment capital lossesthat are carried forward will retain their character aseither short-term or long-term capital losses rather thanbeing considered all short-term as under previous law.The Fund has no capital loss carryforwards under thenew provision.

During the year ended October 31, 2014, $17,838(000) of capital loss carryforwards were utilized.

The total cost of securities for Federal income taxpurposes and the aggregate gross unrealizedappreciation and depreciation on investments held bythe Fund at April 30, 2015, were as follows (000):

FederalTax Cost

AggregatedGross

UnrealizedAppreciation

AggregatedGross

UnrealizedDepreciation

NetUnrealized

Appreciation

$67,669 $19,812 $(1,747) $18,065

8. Other:

At April 30, 2015, 76% of total shares outstanding forthe Institutional Class were held by one recordshareholder owning 10% or greater of the aggregatetotal shares outstanding. At April 30, 2015, 100% oftotal shares outstanding for the Investor Class wereheld by three record shareholders each owning 10% orgreater of the aggregate total shares outstanding.These were comprised of individual shareholders.

In the normal course of business, the Fund enters intocontracts that provide general indemnifications. TheFund’s maximum exposure under these arrangements

is dependent on future claims that may be madeagainst the Fund and, therefore, cannot be estimated;however, based on experience, the risk of loss fromsuch claims is considered remote.

9. New Accounting Pronouncement:

In May 2015, the Financial Accounting StandardsBoard (FASB) issued Accounting Standards Update(ASU) No. 2015-07 regarding “Disclosures forInvestments in Certain Entities That Calculate NetAsset Value per Share”. The amendments in thisupdate are effective for fiscal years beginning afterDecember 15, 2015, and interim periods within thosefiscal years. ASU No.2015-07 will eliminate therequirement to categorize investments in the fair valuehierarchy if their fair value is measured at net assetvalue (NAV) per share (or its equivalent) using thepractical expedient in the FASB’s fair valuemeasurement guidance. At this time, management isevaluating the implications of ASU No. 2015-07 and itsimpact on the financial statement disclosures has notyet been determined.

10. Subsequent Events:

The Fund has evaluated the need for additionaldisclosures and/or adjustments resulting fromsubsequent events through the date the financialstatements were issued. Based on this evaluation, noadjustments were required to the financial statements.

15

Disclosure of Fund Expenses (Unaudited)

All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by theseongoing costs, which include (among others) costs for portfolio management, administrative services, andshareholder reports like this one. It is important for you to understand the impact of these costs on your investmentreturns.

Operating expenses such as these are deducted from the mutual fund’s gross income and directly reduce your finalinvestment return. These expenses are expressed as a percentage of the mutual fund’s average net assets; thispercentage is known as the mutual fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (indollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples arebased on an investment of $1,000 made at the beginning of the period and held for the entire period fromNovember 1, 2014 to April 30, 2015.

The table below illustrates your Fund’s costs in two ways:

• Actual fund return. This section helps you to estimate the actual expenses after fee waivers that your Fundincurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense incurred by a$1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expensefrom the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expensesyou paid over that period. Simply divide your account value by $1,000 to arrive at a ratio (for example, an $8,600account 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 Fund’s costs with those of other mutual funds. Itassumes that the Fund had an annual 5% return before expenses during the period, but that the expense ratio(Column 3) is unchanged. This example is useful in making comparisons because the Securities and ExchangeCommission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost bycomparing the hypothetical result for your Fund in the “Expense Paid During Period” column with those that appearin 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 Fund’s actual return —the account values shown do not apply to your specific investment.

BeginningAccount

Value11/01/14

EndingAccount

Value04/30/15

AnnualizedExpenseRatios

ExpensesPaid

DuringPeriod*

LSV Conservative Value Equity Fund

Actual Fund ReturnInstitutional Shares $1,000.00 $1,027.90 0.35% $1.76Investor Shares 1,000.00 1,025.60 0.60 3.01

Hypothetical 5% ReturnInstitutional Shares $1,000.00 $1,023.06 0.35% $1.76Investor Shares 1,000.00 1,021.82 0.60 3.01

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multipliedby 181/365 (to reflect the one-half year period).

16

Board Considerations in Re-Approving the Advisory Agreement (Unaudited)

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Fund’s advisory agreement (the“Agreement”) must be renewed after its initial two-year term: (i) by the vote of the Board of Trustees (the “Board” orthe “Trustees”) of The Advisors’ Inner Circle Fund (the “Trust”) or by a vote of a majority of the shareholders of theFund; and (ii) by the vote of a majority of the Trustees who are not parties to the Agreement or “interested persons”of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called forthe purpose of voting on such renewal.

A Board meeting was held on February 10, 2015 to decide whether to renew the Agreement for an additional one-year term. In preparation for the meeting, the Trustees requested that the Adviser furnish information necessary toevaluate the terms of the Agreement. Prior to the meeting, the Independent Trustees of the Fund met to review anddiscuss the information provided and submitted a request for additional information to the Adviser, and informationwas provided in response to this request. The Trustees used this information, as well as other information that theAdviser and other service providers of the Fund presented or submitted to the Board at the meeting and othermeetings held during the prior year, to help them decide whether to renew the Agreement for an additional year.

Specifically, the Board requested and received written materials from the Adviser and other service providers of theFund regarding: (i) the nature, extent and quality of the Adviser’s services; (ii) the Adviser’s investment managementpersonnel; (iii) the Adviser’s operations and financial condition; (iv) the Adviser’s brokerage practices (including anysoft dollar arrangements) and investment strategies; (v) the Fund’s advisory fee paid to the Adviser and overall feesand operating expenses compared with a peer group of mutual funds; (vi) the level of the Adviser’s profitability fromits relationship with the Fund, including both direct and indirect benefits accruing to the Adviser and its affiliates;(vii) the Adviser’s potential economies of scale; (viii) the Adviser’s compliance systems; (ix) the Adviser’s policies onand compliance procedures for personal securities transactions; and (x) the Fund’s performance compared with apeer group of mutual funds and the Fund’s benchmark index.

Representatives from the Adviser, along with other Fund service providers, presented additional information andparticipated in question and answer sessions at the Board meeting to help the Trustees evaluate the Adviser’sservices, fee and other aspects of the Agreement. The Independent Trustees received advice from independentcounsel and met in executive sessions outside the presence of Fund management and the Adviser.

At the Board meeting, the Trustees, including all of the Independent Trustees, based on their evaluation of theinformation provided by the Adviser and other service providers of the Fund, renewed the Agreement. Inconsidering the renewal of the Agreement, the Board considered various factors that they determined were relevant,including: (i) the nature, extent and quality of the services provided by the Adviser; (ii) the investment performanceof the Fund and the Adviser; (iii) the costs of the services provided and profits realized by the Adviser from itsrelationship with the Fund, including both direct and indirect benefits accruing to the Adviser and its affiliates;(iv) the extent to which economies of scale are being realized by the Adviser; and (v) whether fee levels reflect anyeconomies of scale being realized by the Adviser for the benefit of Fund investors, as discussed in further detailbelow.

Nature, Extent and Quality of Services Provided by the Adviser

In considering the nature, extent and quality of the services provided by the Adviser, the Board reviewed theportfolio management services provided by the Adviser to the Fund, including the quality and continuity of theAdviser’s portfolio management personnel and the resources of the Adviser. The Trustees reviewed the terms of theAgreement. The Trustees also reviewed the Adviser’s investment approach for the Fund. The most recentinvestment adviser registration form (“Form ADV”) for the Adviser was provided to the Board, as was the response ofthe Adviser to a detailed series of questions which included, among other things, information about the backgroundand experience of the portfolio managers primarily responsible for the day-to-day management of the Fund.

The Trustees also considered other services provided to the Fund by the Adviser such as selecting broker-dealersfor executing portfolio transactions, monitoring adherence to the Fund’s investment restrictions, and monitoringcompliance with various Fund policies and procedures and with applicable securities laws and regulations. Basedon the factors above, as well as those discussed below, the Board concluded, within the context of its fulldeliberations, that the nature, extent and quality of the services provided to the Fund by the Adviser were sufficientto support renewal of the Agreement.

17

Board Considerations in Re-Approving the Advisory Agreement (Unaudited)

Investment Performance of the Fund and the Adviser

The Board was provided with information regarding the Fund’s performance since the Agreement was last renewed,as well as information regarding the Fund’s performance over other time periods including since its inception. TheTrustees also reviewed reports prepared by the Fund’s administrator comparing the Fund’s performance to itsbenchmark index and a peer group of mutual funds as classified by Lipper, an independent provider of investmentcompany data, over various periods of time. Representatives from the Adviser provided information regarding andled discussions of factors impacting the performance of the Fund, outlining current market conditions and explainingtheir expectations and strategies for the future. Based on this information, the Board concluded, within the context ofits full deliberations, that the investment results that the Adviser had been able to achieve for the Fund weresufficient to support renewal of the Agreement.

Costs of Advisory Services, Profitability and Economies of Scale

In considering the advisory fee payable by the Fund to the Adviser, the Trustees reviewed, among other things, areport of the advisory fee paid to the Adviser. The Trustees also reviewed reports prepared by the Fund’sadministrator comparing the Fund’s net and gross expense ratios and advisory fees to those paid by a peer groupof mutual funds as classified by Lipper. The Trustees reviewed the management fees charged by the Adviser toinstitutional and other clients with comparable mandates. The Trustees considered any differences in managementfees and took into account the respective demands, resources and complexity associated with the Fund and otherclient accounts as well as the extensive regulatory and tax regimes to which the Fund is subject. The Boardconcluded, within the context of its full deliberations, that the advisory fee was reasonable in light of the nature andquality of the services rendered by the Adviser.

The Trustees reviewed the costs of services provided by and the profits realized by the Adviser from its relationshipwith the Fund, including both direct and indirect benefits accruing to the Adviser and its affiliates. The Trusteesnoted that the profitability of any adviser was affected by numerous factors, including its organizational structureand method for allocating expenses. The Trustees concluded that the profit margins of the Adviser with respect tothe management of the Fund were not unreasonable. The Board also considered the Adviser’s commitment tomanaging the Fund and its willingness to continue its expense limitation and fee waiver arrangement with the Fund.

The Trustees considered the Adviser’s views relating to economies of scale in connection with the Fund as Fundassets grow and the extent to which any such economies of scale are shared with the Fund and Fund shareholders.The Board considered the existence of any economies of scale and whether those were passed along to the Fund’sshareholders through a graduated advisory fee schedule or other means, including fee waivers. The Trusteesrecognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fundbasis. Based on this evaluation, the Board was unable to conclude that economies of scale, if any, were notappropriately shared with the Fund.

Based on the Board’s deliberations and its evaluation of the information described above and other factors andinformation it believed relevant in the exercise of its reasonable business judgment, the Board, including all of theIndependent Trustees, unanimously concluded that the terms of the Agreement, including the fees payablethereunder, were fair and reasonable and agreed to renew the Agreement for another year. In its deliberations, theBoard did not identify any particular factor (or conclusion with respect thereto) or single piece of information thatwas all-important, controlling or determinative of its decision and each Trustee may have attributed different weightsto the various factors (and conclusions with respect thereto) and information.

18

Trust:The Advisors’ Inner Circle Fund

Fund:LSV Conservative Value Equity Fund

Adviser:LSV Asset Management

Distributor:SEI Investments Distribution Co.

Administrator:SEI Investments Global Funds Services

Legal Counsel:Morgan, Lewis & Bockius LLP

Independent Registered Public Accounting Firm:Ernst & Young LLP

The Fund files its complete schedule of Portfolio holdings with the Securities and Exchange Commission (“SEC”) forthe first and third quarters of each fiscal year on form N-Q within sixty days after the end of the period. The Fund’sForms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at theCommission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Roommay be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that The Advisors’ Inner Circle Fund uses to determine how to vote prox-ies (if any) relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfo-lio securities during the most recent 12-month period ended June 30, is available without charge (i) upon request, bycalling 888-FUND-LSV and (ii) on the Commission’s website at http://www.sec.gov.

LSV-SA-004-0900

semi-annual report to shareholders april 30, 2015lsvasset.com/pdf/fund-docs/lsvvx_sar_2015.pdf ·...

Documents