Advisors Inner Circle Fund – ‘N-30D’ for 12/31/02

On:  Friday, 2/28/03, at 11:42am ET   ·   Effective:  2/28/03   ·   For:  12/31/02   ·   Accession #:  935069-3-217   ·   File #:  811-06400

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 1: N-30D       Analytic 12-02                                        51    209K 

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THE ANALYTIC FUNDS

[LOGO OMITTED]
Analytic
             INVESTORS

 ANNUAL REPORT
 December 31, 2002

 THE ADVISORS' INNER CIRCLE FUND

   DEFENSIVE EQUITY FUND
    SHORT-TERM INCOME FUND
INTERNATIONAL FUND

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                                                               DECEMBER 31, 2002
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 TABLE OF CONTENTS
--------------------------------------------------------------------------------

Shareholders Letter .......................................................   1 

Statements of Net Assets                                                        
  Defensive Equity Fund ..................................................   7
  Short-Term Income Fund .................................................  15
  International Fund .....................................................  17
Statements of Operations ..................................................  23 
Statements of Changes in Net Assets .......................................  24 

Financial Highlights                                                            
  Defensive Equity Fund ..................................................  26
  Short-Term Income Fund .................................................  27
  International Fund .....................................................  28
Notes to Financial Statements .............................................  29 
Report of Independent Accountants .........................................  37 
Trustees and Officers of The Advisors' Inner Circle Fund ..................  38 
Shareholder Voting Results ................................................  46 
Notice to Shareholders ....................................................  47 
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December 31, 2002                                                               

Dear Fellow Shareholders:                                                       

We are pleased to send you the Analytic Funds Annual Report for the period      
ending December 31, 2002.                                                       

It was another rough period for equity investors as global equity markets were  
down for the third consecutive year. The S&P 500 Composite Index was down       
-22.10%, its worst annual performance since 1974, as the economic recovery      
proved weaker than generally expected and revelations of accounting abuses      
raised questions about the quality of corporate earnings. The consumer helped to
keep the economy moving forward, even though many economists predicted weaker   
consumer spending. The low interest rate environment encouraged home refinancing
which equipped consumers with greater disposable income. For the year, the U.S. 
economy grew by almost 3%.                                                      

Economic growth was not as strong in most of Europe and Japan. Continuing       
weakness in consumer spending combined with the lack of an upturn in capital    
spending left the German economy with just 0.2% growth for the year, and output 
growth in Japan at less than 2%. This caused international markets to post their
3rd straight year of double digit negative returns. An additional negative      
factor for equity markets was the rising possibility of war in the Middle East  
and rising tensions on the Korean peninsula, causing risk premiums to rise in   
all the major markets.                                                          

Given the combination of rising risk premiums and negative economic news,       
government bonds were again the favored asset, with both international and      
domestic bonds posting strong positive returns in 2002. After cutting short-term
interest rates from 6.5% to 1.75% in 2001, the Federal Reserve Board continued  
its expansionary fiscal policy in 2002 and lowered rates another half a percent 
in November. The European Central Bank also lowered interest rates during the   
year as economies in the region slowed and inflationary worries stemming from   
the changeover to the euro diminished. International fixed income markets       
outperformed the U.S. market as the U.S. dollar fell 15.2% versus the euro, and 
9.8% against the yen. The weak U.S. dollar was largely a result of the poor     
outlook for U.S. corporations, as well as an increasing current account deficit.

Technology stock declines, accounting fraud, and disappointing corporate        
earnings were some of the major themes that impacted U.S. equities in 2002.     
Although U.S. stocks produced negative returns, the Analytic Defensive Equity's 
conservative, hedged investment process enabled the fund to outperform the S&P  
500 Composite Index return of -22.10% and return -12.22%.                       

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International equities outperformed U.S. equities, with the Morgan Stanley MSCI 
EAFE Index returning -15.66%. We are pleased to report that the International   
Fund returned -6.73% for the period, far outpacing the index return.            

Bonds continued as the place to be with both international and domestic bonds   
posting positive returns. The Federal Reserve Board continued to lower interest 
rates, reducing rates from 1.75% to 1.25% late in the year. In addition, bond   
investors were the beneficiary of a flight to quality as investors sold equities
and invested in safer vehicles. The Merrill Lynch 1-3 Year Corporate Government 
Index returned 6.09% in 2002. The Analytic Short-Term Income Fund outperformed  
the index and returned 6.39%.                                                   

We appreciate your loyalty and continuing support.                              

Sincerely,                                                                      

Harindra de Silva, Ph.D, CFA               Greg McMurran      
     President/Co-Portfolio Manager             Chief Investment Officer
/s/ Harinda de Silva                       /s/ Greg McMurran  

Dennis Bein, CFA         Steven Sapra, CFA            Scott Barker, CFA   
Portfolio Manager        Portfolio Manager            Portfolio Manager   
/s/ Dennis Bein          /s/ Steven Sapra             /s/ Scott Barker    

  Robert Murdock, Ph.D., CFA                    Doug Savarese, CFA
 Portfolio Manager                             Portfolio Manager
 /s/ Rober Murdock                             /s/ Doug Savarese

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 DEFINITION OF THE COMPARATIVE INDICES
 -------------------------------------

LIPPER MUTUAL FUND AVERAGES are  equally-weighted  benchmarks composed of mutual
funds with similar objectives.                                                  

MERRILL  LYNCH  1-3  YEAR  U.S.  CORPORATE/GOVERNMENT  INDEX  is a  market-value
weighted index that tracks the performance of publicly placed,  non-convertible,
fixed-rate,  coupon-bearing,  investment grade U.S. domestic debt. Maturities of
the securities range from one to three years.                                   

MERRILL LYNCH 1-3 YEAR U.S.  TREASURY  INDEX is an unmanaged  index  composed of
U.S. treasury  securities with an outstanding par value of at least $25 million,
and a maturity ranging between one to three years.                              

MORGAN STANLEY  CAPITAL  INTERNATIONAL  EAFE INDEX is an unmanaged,  arithmetic,
market  value-weighted  average of the performance of over 900 securities listed
on the stock exchanges of countries in Europe, Australia and the Far East.      

S&P 500 COMPOSITE INDEX is an unmanaged index composed of 400 industrial stocks,
40 financial stocks, 40 utility stocks and 20 transportation stocks.            

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THE ADVISORS' INNER CIRCLE FUND                            ANALYTIC FUNDS       
                                                           DEFENSIVE EQUITY FUND

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 [GRAPH OMITTED]
Plot Points for Edgar Purposes are as follows:

Growth of a $10,000 Investment                                                  

--------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
FOR PERIOD ENDED DECEMBER 31, 2002
--------------------------------------

1 Year       5 Years          10 Years
--------------------------------------
-12.22%       4.71%             8.71% 
--------------------------------------

       ANALYTIC                S&P 500                LIPPER
         DEFENSIVE              COMPOSITE              LARGE CAP
        EQUITY FUND               INDEX                CORE FUND
12/31/92          $10,000                $10,000                $10,000         
1993              $10,672                $11,004                $11,156         
1994              $10,936                $11,148                $11,077         
1995              $13,292                $15,333                $14,635         
1996              $15,380                $18,851                $17,712         
1997              $18,315                $25,137                $22,668         
1998              $23,606                $32,327                $28,143         
1999              $28,646                $39,128                $34,143         
2000              $26,796                $35,563                $31,602         
2001              $26,265                $31,339                $27,067         
2002              $23,055                $24,413                $20,709         

Periods ended on December 31st

*If the adviser and/or Fund service  providers had not limited certain expenses,
the Fund's total return would have been lower.                                  

THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN 
 AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN THEIR ORIGINAL COST. THE FUND'S PERFORMANCE ASSUMES THE
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT
 OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES.
 IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE
WOULD HAVE BEEN LOWER.

RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 

PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX.

THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE
FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE BECAUSE IT IS ACTIVELY
MANAGED AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL
 SECURITIES.

SEE DEFINITION OF COMPARATIVE INDICIES ON PAGE 3. 

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THE ADVISORS' INNER CIRCLE FUND                           ANALYTIC FUNDS        
                                                          SHORT-TERM INCOME FUND
--------------------------------------------------------------------------------

 [GRAPH OMITTED]
Plot Points for Edgar Purposes are as follows:

Growth of a $10,000 Investment                                                  

--------------------------------------
 AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED DECEMBER 31, 2002
--------------------------------------
                               Since
1 Year          5 Years        7/1/93*
--------------------------------------
6.39%           6.11%          5.68%
--------------------------------------

                         MERRILL LYNCH         LIPPER          MERRILL LYNCH
          ANALYTIC       1-3 YEAR U.S.       SHORT-TERM        1-3 YEAR U.S.
       SHORT-TERM        TREASURY        U.S. GOVERNMENT      CORPORATE/
          INCOME FUND         INDEX            UNIVERSE       GOVERNMENT INDEX
7/31/93      $10,000          $10,000            $10,000            $10,000     
1993         $10,211          $10,205            $10,165            $10,211     
1994         $10,220          $10,263            $10,162            $10,272     
1995         $11,300          $11,390            $11,196            $11,409     
1996         $11,899          $11,957            $11,678            $11,989     
1997         $12,559          $12,753            $12,401            $12,791     
1998         $13,451          $13,646            $13,151            $13,687     
1999         $13,792          $14,063            $13,466            $14,132     
2000         $14,841          $15,188            $14,443            $15,272     
2001         $15,883          $16,449            $15,431            $16,603     
2002         $16,897          $17,396            $16,238            $17,614     

Periods ended on December 31st

*Beginning of operations. Index comparisons begin on 6/30/93.               
**If the adviser and/or Fund service providers had not limited certain        
expenses, the Fund's total return would have been lower.                  
***Beginning with this report, the Fund is changing its primary benchmark from  
  the Merrill Lynch 1-3 Year U.S. Treasury Index to the Merrill Lynch 1-3 Year
U.S. Corporate/Government Index because the Merrill Lynch 1-3 Year U.S.   
 Corporate/Government Index is a more appropriate benchmark for this type of
fund.                                                                     

 THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
 AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN THEIR ORIGINAL COST. THE FUND'S PERFORMANCE ASSUMES
THE REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. INDEX RETURNS ASSUME 
REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES 
OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE
PERFORMANCE WOULD HAVE BEEN LOWER.

RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. 

PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX.

THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED
 OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE
SUBJECT TO CHANGE BECAUSE IT IS ACTIVELY MANAGED AND
SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.

 SEE DEFINITION OF COMPARATIVE INDICIES ON PAGE 3.

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THE ADVISORS' INNER CIRCLE FUND                               ANALYTIC FUNDS    
                                                              INTERNATIONAL FUND

--------------------------------------------------------------------------------

 [GRAPH OMITTED]
Plot Points for Edgar Purposes are as follows:

Growth of a $10,000 Investment                                                  

--------------------------------------
 AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED DECEMBER 31, 2002
--------------------------------------
                               Since
 1 Year                       9/30/99*
--------------------------------------
-6.73%                        -9.90%
--------------------------------------

    MORGAN STANLEY
   ANALYTIC             CAPITAL             LIPPER
     INTERNATIONAL       INTERNATIONAL       INTERNATIONAL
         FUND             EAFE INDEX         FUNDS AVERAGE
9/30/99            $10,000             $10,000             $10,000              
DEC 99             $11,267             $11,699             $12,588              
JUN 00             $11,267             $11,224             $12,087              
DEC 00             $ 9,978             $10,042             $10,687              
JUN 01             $ 8,529             $ 8,575             $ 9,201              
DEC 01             $ 7,642             $ 7,889             $ 8,396              
JUN 02             $ 7,909             $ 7,761             $ 8,272              
DEC 02             $ 7,128             $ 6,632             $ 6,998              

*Beginning of operations. Index comparisons begin on 9/29/99.                 
**If the adviser and/or Fund service providers had not limited certain expenses,
the Fund's total return would have been lower.                              

THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST
 PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND
 WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN THEIR
 ORIGINAL COST. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
 DIVIDENDS AND CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR
 EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS,
THE PERFORMANCE WOULD HAVE BEEN LOWER.

 RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF
 TAXES THAT A SHAREHOLDER WOULD PAY ON
 FUND DISTRIBUTIONS OR THE REDEMPTION OF
FUND SHARES.

PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX.

THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED
 OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE
SUBJECT TO CHANGE BECAUSE IT IS ACTIVELY MANAGED AND
SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.

 SEE DEFINITION OF COMPARATIVE INDICIES ON PAGE 3.

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
--------------------------------------------------------------------------------

STATEMENT OF NET ASSETS                                                       
COMMON STOCK - 118.0%                                                         

                                                    SHARES           VALUE
                                                    ----------       ---------

AEROSPACE & DEFENSE -- 2.3%                                                     
 General Dynamics (E) .............................     4,796    $   380,659
 United Technologies (D) ..........................     6,658        412,397
                                                                 -----------
                                                                     793,056
                                                                 -----------
APPAREL/TEXTILES -- 0.7%                                                        
 VF ...............................................     7,426        267,707
                                                                 -----------
AUTOMOTIVE -- 2.1%                                                              
 Genuine Parts (E) ................................    12,979        399,753
 Johnson Controls (D) .............................     4,340        347,938
                                                                 -----------
                                                                     747,691
                                                                 -----------
BANKS -- 11.4%                                                                  
 Bank of America (E) ..............................    12,041        837,692
 Capital One Financial (E) ........................     5,459        162,241
 Charter One Financial (E) ........................     9,727        279,457
 Citigroup (E) ....................................    11,904        418,902
 JP Morgan Chase (D) ..............................    19,651        471,624
 National City (D) ................................    15,318        418,488
 Wachovia .........................................    17,527        638,684
 Washington Mutual (D) ............................    14,082        486,251
 Zions Bancorporation .............................     7,053        277,529
                                                                 -----------
                                                                   3,990,868
                                                                 -----------
BUILDING & CONSTRUCTION -- 2.2%                                                 
 American Standard* (E) ...........................     3,743        266,277
 Centex (E) .......................................     4,894        245,679
 Pulte Homes ......................................     5,190        248,445
                                                                 -----------
                                                                     760,401
                                                                 -----------
BUSINESS SERVICES -- 0.9%                                                       
 Cendant* (E) .....................................    20,194        211,633
 Omnicom Group (D) ................................     1,788        115,505
                                                                 -----------
                                                                     327,138
                                                                 -----------
CHEMICALS -- 2.7%                                                               
 Cooper Industries Ltd, Cl A (E) ..................     7,764        282,998
 E.I. du Pont de Nemours (E) ......................     7,505        318,212

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
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COMMON STOCK - CONTINUED                                                      

                                                    SHARES           VALUE
                                                    ----------       ---------

CHEMICALS -- (CONTINUED)                                                        
 Engelhard (E) ....................................    10,402    $   232,485
 International Flavors & Fragrances (D) ...........     3,134        110,003
                                                                 -----------
                                                                     943,698
                                                                 -----------
COMMUNICATIONS EQUIPMENT -- 0.9%                                                
 Andrew* (E) ......................................    12,429        127,770
 Rockwell Collins (E) .............................     7,968        185,336
                                                                 -----------
                                                                     313,106
                                                                 -----------
COMPUTERS & SERVICES -- 13.7%                                                   
 Automatic Data Processing (E) ....................    10,238        401,841
 Cisco Systems* (E) ...............................    14,645        191,849
 Dell Computer* (E) ...............................     3,332         89,098
 First Data (E) ...................................    12,141        429,913
 Hewlett-Packard (D) ..............................    25,484        442,402
 International Business Machines (D) ..............    10,515        814,912
 Lexmark International* (D) .......................     2,841        171,881
 Microsoft* (D) ...................................    28,949      1,496,663
 Novell* (D) ......................................    17,172         57,354
 Oracle* (D) ......................................    30,952        334,282
 Parametric Technology* (D) .......................    16,351         41,205
Seagate Escrow Account+ ..........................       979           -- 
 Sungard Data Systems* ............................    11,419        269,032
 Yahoo* ...........................................     3,693         60,381
                                                                 -----------
                                                                   4,800,813
                                                                 -----------
DEPARTMENT STORES -- 3.7%                                                       
 Federated Department Stores* (E) .................     7,952        228,699
 Target (D) .......................................    12,866        385,980
 Wal-Mart Stores (D) ..............................    13,754        694,715
                                                                 -----------
                                                                   1,309,394
                                                                 -----------
DIVERSIFIED OPERATIONS -- 0.9%                                                  
 Tyco International ...............................    18,292        312,427
                                                                 -----------
ELECTRICAL EQUIPMENT & SERVICES -- 7.8%                                         
 Allegheny Energy (E) .............................    15,121        114,315
 Ameren (E) .......................................    11,139        463,048
 Exelon (E) .......................................     8,197        432,556
 General Electric (E) .............................    53,843      1,311,077

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                       DECEMBER 31, 2002
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COMMON STOCK - CONTINUED                                                      

                                                    SHARES           VALUE
                                                    ----------       ---------

ELECTRICAL EQUIPMENT & SERVICES -- (CONTINUED)                                  
 NiSource (D) .....................................    12,863    $   257,260
 Sempra Energy ....................................     6,790        160,583
                                                                 -----------
                                                                   2,738,839
                                                                 -----------
FINANCIAL SERVICES -- 8.0%                                                      
 Bear Stearns (E) .................................     7,021        417,047
 Countrywide Credit Industry (E) ..................     4,134        213,521
 Deluxe (E) .......................................     8,357        351,830
 Equifax (E) ......................................     1,755         40,611
 Fannie Mae (E) ...................................     9,773        628,697
 Freddie Mac (E) ..................................     8,880        524,364
 H&R Block (D) ....................................     7,793        313,279
 MBNA (D) .........................................    17,594        334,638
                                                                 -----------
                                                                   2,823,987
                                                                 -----------
FOOD, BEVERAGE & TOBACCO -- 5.4%                                                
 Campbell Soup (E) ................................    14,155        332,218
 Coca-Cola (D) ....................................     4,107        179,969
 PepsiCo (D) ......................................     4,943        208,693
 Philip Morris (D) ................................    18,023        730,472
 Sara Lee (D) .....................................    18,955        426,677
                                                                 -----------
                                                                   1,878,029
                                                                 -----------
HOME PRODUCTS -- 2.7%                                                           
 Maytag (D) .......................................     3,173         90,430
 Procter & Gamble (D) .............................     9,821        844,017
                                                                 -----------
                                                                     934,447
                                                                 -----------
INSURANCE -- 6.8%                                                               
 AMBAC Financial Group (E) ........................     4,128        232,159
 American International Group (E) .................     5,662        327,547
 Hartford Financial Services Group (D) ............     6,251        283,983
 John Hancock Financial Services (D) ..............    11,985        334,381
 MBIA (D) .........................................     5,617        246,362
 Metlife (D) ......................................    14,921        403,464
 MGIC Investment (D) ..............................     5,206        215,008
 Prudential Financial .............................     2,645         83,952
 Travelers Property Casualty, Cl B* (D) ...........    16,936        248,112
                                                                 -----------
                                                                   2,374,968
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
--------------------------------------------------------------------------------

COMMON STOCK - CONTINUED                                                      

                                                    SHARES           VALUE
                                                    ----------       ---------

MACHINERY -- 0.7%                                                               
 Black & Decker (E) ...............................     5,709    $   244,859
                                                                 -----------
MEDIA -- 2.8%                                                                   
 AOL Time Warner* (E) .............................     4,632         60,679
 Comcast, Cl A* (E) ...............................    17,489        412,216
 Meredith (D) .....................................     5,871        241,357
 Walt Disney (E) ..................................    17,011        277,449
                                                                 -----------
                                                                     991,701
                                                                 -----------
MEDICAL PRODUCTS & SERVICES -- 6.1%                                             
 Anthem* (E) ......................................     4,880        306,952
 Biogen* (E) ......................................     6,437        257,866
 Guidant* (E) .....................................     8,698        268,333
 Healthsouth* (D) .................................    11,056         46,435
 Johnson & Johnson (D) ............................    18,645      1,001,423
 McKesson (D) .....................................     9,436        255,055
                                                                 -----------
                                                                   2,136,064
                                                                 -----------
METALS & MINING -- 0.6%                                                         
 Freeport-McMoRan Copper & Gold, Cl B* (E) ........    12,053        202,249
                                                                 -----------
NATURAL GAS -- 1.9%                                                             
 Nicor (E) ........................................     4,042        137,549
 Peoples Energy ...................................     4,259        164,610
 Schlumberger (D) .................................     8,774        369,298
                                                                 -----------
                                                                     671,457
                                                                 -----------
OFFICE FURNITURE, EQUIPMENT & FIXTURES -- 1.9%                                  
 3M (D) ...........................................     1,080        133,164
 Pitney Bowes (D) .................................    10,792        352,467
 Xerox* ...........................................    21,938        176,601
                                                                 -----------
                                                                     662,232
                                                                 -----------
PETROLEUM REFINING -- 5.5%                                                      
 Apache (E) .......................................     5,592        318,688
 Ashland (E) ......................................       604         17,232
 Burlington Resources (E) .........................     9,364        399,375
 Exxon Mobil (D) ..................................    16,251        567,810
 Marathon Oil (D) .................................    11,994        255,352
 Unocal ...........................................    12,838        392,586
                                                                 -----------
                                                                   1,951,043
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
--------------------------------------------------------------------------------

COMMON STOCK - CONTINUED                                                      

                                                    SHARES           VALUE
                                                    ----------       ---------

PHARMACEUTICALS -- 9.1%                                                         
 Abbott Laboratories (E) ..........................    12,020    $   480,800
 Amgen* (E) .......................................     9,531        460,728
 Merck (D) ........................................    15,721        889,966
 Pfizer (D) .......................................    26,174        800,139
 Pharmacia (D) ....................................     5,455        228,019
 Schering-Plough (D) ..............................    15,418        342,280
                                                                 -----------
                                                                   3,201,932
                                                                 -----------
RETAIL -- 4.2%                                                                  
 Family Dollar Stores (E) .........................    10,432        325,583
 Home Depot (D) ...................................    18,372        440,193
 Lowe's (D) .......................................     9,860        369,750
 McDonald's (D) ...................................     9,485        152,519
 Office Depot* (D) ................................     1,322         19,513
 Safeway* .........................................     7,815        182,558
                                                                 -----------
                                                                   1,490,116
                                                                 -----------
RUBBER & PLASTIC -- 1.0%                                                        
 Bemis (E) ........................................     6,925        343,688
                                                                 -----------
SEMI CONDUCTORS -- 3.5%                                                         
 Advanced Micro Devices* (E) ......................    17,986        116,190
 American Power Conversion* (E) ...................     9,214        139,592
 Intel (D) ........................................    42,196        656,992
 LSI Logic* (D) ...................................    10,196         58,831
 National Semiconductor* (D) ......................     9,941        149,214
 Nvidia* (D) ......................................     9,047        104,131
                                                                 -----------
                                                                   1,224,950
                                                                 -----------
TELEPHONES & TELECOMMUNICATIONS -- 6.4%                                         
 AT&T (D) .........................................    14,015        365,932
 CenturyTel (E) ...................................     7,884        231,632
 Clear Channel Communications* (E) ................     8,482        316,294
 Motorola (D) .....................................    24,622        212,980
 Nextel Communications, Cl A* (D) .................     3,919         45,264
 SBC Communications (D) ...........................    24,464        663,219
 Sprint-FON Group (E) .............................    16,023        232,013
 Verizon Communications ...........................     4,524        175,305
                                                                 -----------
                                                                   2,242,639
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                         DECEMBER 31, 2002
--------------------------------------------------------------------------------

COMMON STOCK - CONTINUED                                                      

                                     SHARES/
                                                  FACE AMOUNT        VALUE
                                                    -----------      ---------

TESTING LABORATORIES -- 0.7%                                                    
 Monsanto (D) .....................................    13,636    $   262,493
                                                                 -----------
TRANSPORTATION SERVICES -- 1.4%                                                 
 Carnival (E) .....................................     2,256         56,287
 Ryder System .....................................     2,062         46,271
 Union Pacific (D) ................................     6,594        394,783
                                                                 -----------
                                                                     497,341
                                                                 -----------
TOTAL COMMON STOCK                                                        
    (Cost $42,854,242) ............................               41,439,333
                                                                 -----------
U.S. TREASURY OBLIGATION -- 1.5%                                              

U.S. TREASURY BILL -- 1.5%                                                      
 1.573%, 03/13/03 (Cost $528,326) (A) (C) .........$  530,000        528,804
                                                                 -----------

SHORT-TERM INVESTMENT -- 3.5%                                                 

REPURCHASE AGREEMENT -- 3.5%                                                    
Morgan Stanley 1.05%, dated 12/31/02, matures                             
01/02/03, repurchase price $1,242,550                               
(collateralized by a U.S. Treasury Bill:                            
total market value $1,267,350)                                      
    (Cost $1,242,478) (B) ......................... 1,242,478      1,242,478
                                                                 -----------
TOTAL INVESTMENTS -- 123.0%                                               
    (Cost $44,625,046) ............................               43,210,615
                                                                 -----------

WRITTEN INDEX OPTIONS -- (4.2)%                                               

                                   CONTRACTS
                                   ---------
  S&P 500 Index February 2003, 850 Call ............       (35)      (182,000)
  S&P 500 Index February 2003, 875 Call ............       (45)      (195,750)
  S&P 500 Index February 2003, 900 Call ............       (25)       (64,250)
  S&P 500 Index January 2003, 825 Call .............       (85)      (521,900)
  S&P 500 Index January 2003, 850 Call .............       (90)      (360,000)
  S&P 500 Index January 2003, 875 Call .............       (50)      (112,500)
  S&P 500 Index January 2003, 900 Call .............       (35)       (35,000)
                                                                 -----------
TOTAL WRITTEN INDEX OPTIONS                                               
     (Premiums received $(2,152,705)) ..............               (1,471,400)
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
--------------------------------------------------------------------------------

SECURITIES SOLD SHORT -- (19.9)%                                              

                                                    SHARES           VALUE
                                                    ----------       ---------

  Aflac ............................................    (6,788)   $  (204,455)
  AON ..............................................    (1,947)       (36,779)
  Baker Hughes .....................................    (7,457)      (240,041)
  Bank of New York .................................    (5,619)      (134,631)
  Baxter International .............................    (4,312)      (120,736)
  Biomet ...........................................    (7,109)      (203,744)
  Charles Schwab ...................................   (11,856)      (128,638)
  Chubb ............................................    (4,113)      (214,699)
  Concord EFS* .....................................    (9,659)      (152,033)
  Costco Wholesale* ................................    (4,997)      (140,216)
  Cummins ..........................................    (5,642)      (158,709)
  Dana .............................................    (8,636)      (101,559)
  Dillard's, Cl A ..................................    (8,381)      (132,923)
  Dow Chemical .....................................    (6,910)      (205,227)
  Dow Jones ........................................    (7,735)      (334,384)
  DTE Energy .......................................    (3,151)      (146,206)
  eBay* ............................................    (2,285)      (154,969)
  El Paso ..........................................   (11,772)       (81,933)
  FirstEnergy ......................................    (8,975)      (295,906)
  Ford Motor .......................................    (2,131)       (19,818)
  Forest Laboratories* .............................    (2,555)      (250,952)
  Goodyear Tire & Rubber ...........................   (15,177)      (103,355)
  Manor Care* ......................................    (3,795)       (70,625)
  May Department Stores ............................    (3,383)       (77,741)
  Mellon Financial .................................    (8,266)      (215,825)
  Molex ............................................    (6,282)      (144,737)
  Navistar International* ..........................    (6,771)      (164,603)
  NCR* .............................................    (8,983)      (213,256)
  Network Appliance* ...............................    (6,976)       (69,760)
  Northern Trust ...................................    (6,414)      (224,811)
  Pall .............................................    (8,537)      (142,397)
  PG&E* ............................................   (12,906)      (179,393)
  Phelps Dodge* ....................................    (7,255)      (229,621)
  Raytheon .........................................    (7,599)      (233,669)
  Reebok International* ............................    (7,007)      (206,006)
  Robert Half International* .......................    (9,845)      (158,603)
  Safeco ...........................................    (7,556)      (261,967)
  SLM ..............................................    (3,291)      (341,803)
  Starbucks* .......................................    (9,843)      (200,600)
  State Street .....................................    (5,044)      (196,716)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                           DEFENSIVE EQUITY FUND
                                                       DECEMBER 31, 2002
--------------------------------------------------------------------------------

SECURITIES SOLD SHORT -- CONTINUED                                            

                                                    SHARES           VALUE
                                                    ----------       ---------

  Symbol Technologies ..............................    (8,271)   $   (67,988)
  Weyerhaeuser .....................................      (795)       (39,122)
                                                                 -----------
TOTAL SECURITIES SOLD SHORT                                               
     (Proceeds $(7,186,701)) .......................               (7,001,156)
                                                                 -----------

OTHER ASSETS AND LIABILITIES, NET -- 1.1%                                     
 Investment Advisory Fees Receivable...............                   11,186
  Administrative Fees Payable.......................                  (26,285)
 Other Assets and Liabilities......................                  408,504
                                                                 -----------
 TOTAL OTHER ASSETS AND LIABILITIES, NET ..........                  393,405
                                                                 -----------

NET ASSETS CONSIST OF:                                                        
 Paid in Capital...................................               41,042,844
  Accumulated Net Realized Loss.....................               (5,360,283)
Net Unrealized Depreciation on Investment                                 
     Transactions, Option and Futures Contracts ....                 (551,097)
                                                                 -----------
 TOTAL NET ASSETS -- 100.0% .......................              $35,131,464
                                                                 ===========
INSTITUTIONAL CLASS SHARES:                                               
Outstanding Shares of beneficial interest                                 
    (unlimited authorization --  no par value) ....                3,862,981
                                                                 -----------
NET ASSET VALUE, Offering and Redemption                                  
    Price Per Share ...............................                    $9.09
                                                                 ===========
*    NON-INCOME PRODUCING SECURITY                                              
+    THIS SECURITY REPRESENTS A POTENTIAL DISTRIBUTION SETTLEMENT IN A LEGAL    
CLAIM.                                                                
CL   CLASS                                                                      
(A)  THE RATE SHOWN IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.                 
(B)  TRI-PARTY REPURCHASE AGREEMENT                                             
(C)  ALL OR A PORTION OF THIS SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN  
FUTURES CONTRACTS.                                                    
(D)  SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN WRITTEN OPTION CONTRACTS. 
(E)  SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR SECURITIES SOLD SHORT.         

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                           ANALYTIC FUNDS        
                                                          SHORT-TERM INCOME FUND
                                                     DECEMBER 31, 2002
--------------------------------------------------------------------------------

STATEMENT OF NET ASSETS                                                       
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 22.5%                                   

                                    FACE
                                                   AMOUNT          VALUE
                                                   ----------      ---------

FEDERAL HOME LOAN BANK -- 14.5%                                                 
Federal Home Loan Bank                                                    
    3.375%, 11/15/04 ..............................   $350,000    $  359,954
    3.250%, 08/15/05 ..............................    200,000       206,040
                                                                  ----------
                                                                     565,994
                                                                  ----------
OTHER GOVERNMENT AGENCY OBLIGATION -- 8.0%                                      
Tenn Valley Authority                                                     
    4.750%, 07/15/04 ..............................    300,000       313,539
                                                                  ----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION                                   
    (Cost $855,242) ...............................                  879,533
                                                                  ----------

U.S. TREASURY OBLIGATIONS -- 71.3%                                            
U.S. TREASURY BILLS (A)                                                   
       1.592%, 03/13/03 (C) .......................     20,000        19,955
       1.192%, 06/26/03 (D) .......................    990,000       984,265
U.S. TREASURY NOTES                                                 
    7.500%, 02/15/05 ..............................    500,000       560,660
    6.500%, 05/15/05 ..............................    300,000       333,009
    6.500%, 08/15/05 ..............................    600,000       671,106
    5.750%, 11/15/05 ..............................    200,000       221,000
                                                                  ----------
TOTAL U.S. TREASURY OBLIGATIONS                                           
    (Cost $2,732,357) .............................                2,789,995
                                                                  ----------

SHORT-TERM INVESTMENT -- 5.7%                                                 

REPURCHASE AGREEMENT -- 5.7%                                                    
Morgan Stanley 1.05%, dated 12/31/02, matures                             
01/02/03, repurchase price $225,200                                 
(collateralized by a U.S. Treasury Bill:                            
total market value $229,695)                                        
    (Cost $225,187) (B)............................    225,187       225,187
                                                                  ----------
TOTAL INVESTMENTS -- 99.5%                                                
    (Cost $3,812,786) .............................                3,894,715
                                                                  ----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                          SHORT-TERM INCOME FUND
                                                     DECEMBER 31, 2002
--------------------------------------------------------------------------------

WRITTEN INDEX OPTIONS -- (0.2)%                                               

                                                 CONTRACTS       VALUE
                                                 -----------     -------
  CBOE Oil Index January 2003, 240 Puts.............         (4)   $     (420)
  Dow Jones Utility Index January 2003, 200 Puts....         (6)       (1,110)
  Euro Top 100 Index January 2003, 175 Puts.........         (8)       (1,600)
Morgan Stanley Commodity Index                                            
     January 2003, 220 Puts.........................         (5)         (550)
  S&P 100 Index January 2003, 425 Puts..............         (8)       (3,760)
  S&P MidCap 400 Index January 2003, 410 Puts.......         (3)       (1,290)
                                                                  ----------
TOTAL WRITTEN INDEX OPTIONS                                               
     (Premiums received $(7,574)) ..................                   (8,730)
                                                                  ----------

OTHER ASSETS AND LIABILITIES, NET -- 0.7%                                     
  Investment Advisory Fees Payable..................                     (961)
  Administrative Fees Payable.......................                   (2,654)
 Other Assets and Liabilities......................                   30,681
                                                                  ----------
 TOTAL OTHER ASSETS AND LIABILITIES, NET ..........                   27,066
                                                                  ----------

NET ASSETS CONSIST OF:                                                        
 Paid in Capital...................................                4,669,379
  Distributions in Excess of Net Investment Income..                 (130,764)
  Accumulated Net Realized Loss.....................                 (700,332)
Net Unrealized Appreciation on Investment                                 
    Transactions, Option and Futures Contracts ....                   74,768
                                                                  ----------
 TOTAL NET ASSETS -- 100.0% .......................               $3,913,051
                                                                  ==========
INSTITUTIONAL CLASS SHARES:                                               
Outstanding Shares of beneficial interest                                 
    (unlimited authorization --  no par value) ....                  383,931
                                                                  ----------
NET ASSET VALUE, Offering and Redemption                                
    Price Per Share ...............................                   $10.19
                                                                  ==========

(A)  THE RATE SHOWN IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.                 
(B)  TRI-PARTY REPURCHASE AGREEMENT                                             
(C)  ALL OR A PORTION OF THIS SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN  
FUTURES CONTRACTS.                                                    
(D)  SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN WRITTEN OPTION CONTRACTS. 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

STATEMENT OF NET ASSETS                                                       
FOREIGN COMMONSTOCK - 86.7%                                                   

                                                     SHARES          VALUE
                                                     ----------      ---------

AUSTRALIA -- 4.4%                                                               
 General Property Trust ...........................     15,248   $    25,501
 Stockland ........................................      5,541        15,039
 Westfield Trust ..................................     12,683        24,782
                                                                 -----------
                                                                      65,322
                                                                 -----------
AUSTRIA -- 0.8%                                                                 
 Telekom Austria* .................................      1,153        11,676
                                                                 -----------
DENMARK -- 1.3%                                                                 
 Group 4 Falck ....................................        870        18,375
                                                                 -----------
FINLAND -- 1.9%                                                                 
 Kone OYJ .........................................        663        19,906
 Nokia OYJ ........................................        488         7,758
                                                                 -----------
                                                                      27,664
                                                                 -----------
FRANCE -- 6.2%                                                                  
 Air Liquide ......................................         40         5,276
 BNP Paribas ......................................        521        21,230
 Cie de Saint-Gobain ..............................        611        17,928
 Cie Generale D'Optique Essilor International .....         25         1,030
 Total Fina Elf ...................................        209        29,850
 Union du Credit-Bail Immobilier ..................        231        16,435
                                                                 -----------
                                                                      91,749
                                                                 -----------
GERMANY -- 3.0%                                                                 
 BASF .............................................        707        26,769
 Volkswagen .......................................        468        17,061
                                                                 -----------
                                                                      43,830
                                                                 -----------
HONG KONG -- 2.3%                                                               
 CLP Holdings .....................................      6,180        24,883
 Swire Pacific, Cl A ..............................      2,228         8,514
                                                                 -----------
                                                                      33,397
                                                                 -----------
IRELAND -- 0.3%                                                                 
 DCC ..............................................        357         3,671
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

FOREIGN COMMON STOCK - CONTINUED                                              

                                                     SHARES          VALUE
                                                     ----------      ---------

ITALY -- 4.4%                                                                   
 Autostrade Concessioni e Costruzioni Autostrade ..      2,457   $    24,443
 ENI-Ente Nazionale Idrocarburi ...................      2,092        33,259
 Telecom Italia ...................................      1,353         6,829
                                                                 -----------
                                                                      64,531
                                                                 -----------
JAPAN -- 18.1%                                                                  
 Canon ............................................      1,000        37,667
 Dai Nippon Printing ..............................      2,000        22,128
 Daiwa Securities Group ...........................      3,000        13,323
 Fuji Photo Film ..................................      1,000        32,611
 JSR ..............................................      1,000        10,045
 Kao ..............................................      1,000        21,952
 Matsushita Electric Industrial ...................      3,000        29,578
 Mitsubishi Heavy Industries ......................      4,000         9,775
 Nippon Telegraph & Telephone .....................          5        18,160
 Nomura Holdings ..................................      2,000        22,483
 Omron ............................................      1,000        14,747
 Tokyo Broadcasting System ........................      1,000        12,573
 Yamada Denki .....................................      1,000        21,109
                                                                 -----------
                                                                     266,151
                                                                 -----------
NETHERLANDS -- 4.8%                                                             
 DSM ..............................................        530        24,127
 European Aeronautic Defense and Space ............      1,311        13,551
 Heineken .........................................        185         7,222
 ING Groep ........................................      1,283        21,731
 OCE ..............................................        301         3,317
 Royal Dutch Petroleum ............................         17           748
                                                                 -----------
                                                                      70,696
                                                                 -----------
NEW ZEALAND -- 0.8%                                                             
 Telecom Corp of New Zealand ......................      5,052        11,971
                                                                 -----------
NORWAY -- 1.3%                                                                  
 Norsk Hydro ......................................        438        19,631
                                                                 -----------
PORTUGAL -- 1.2%                                                                
 Banco Espirito Santo .............................      1,390        18,233
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

FOREIGN COMMON STOCK - CONTINUED                                              

                                                     SHARES          VALUE
                                                     ----------      ---------

SPAIN -- 2.0%                                                                   
 ACESA Infraestructuras ...........................        792   $     8,976
 ACESA Infraestructuras Rights Expiring 01/11/03* .        792           457
 Iberdrola ........................................      1,454        20,370
                                                                 -----------
                                                                      29,803
                                                                 -----------
SWEDEN -- 2.6%                                                                  
 SKF, Cl A ........................................        537        13,898
 Svenska Handelsbanken, Cl B ......................      1,865        23,759
                                                                 -----------
                                                                      37,657
                                                                 -----------
SWITZERLAND -- 7.9%                                                             
 Holcim, Cl B .....................................        112        20,331
 Novartis .........................................      1,293        47,177
 Roche Holding ....................................        200        25,313
 Swisscom .........................................         82        23,751
                                                                 -----------
                                                                     116,572
                                                                 -----------
UNITED KINGDOM -- 23.4%                                                         
 AstraZeneca ......................................        990        35,382
 BAE Systems ......................................         12            20
 Barclays .........................................      4,867        30,166
 BOC Group ........................................        499         7,134
 Boots ............................................      2,856        26,944
 BP ...............................................      2,266        15,577
 BT Group .........................................      6,205        19,479
 Diageo ...........................................      2,234        24,277
 GlaxoSmithKline ..................................        445         8,540
 HSBC Holdings ....................................      2,563        28,326
 Land Securities Group ............................      2,000        25,275
 Land Securities Group, Cl B* .....................      2,073         3,387
 Rank Group .......................................      4,046        17,359
 Reckitt Benckiser ................................      1,218        23,628
 Rentokil Initial .................................      5,716        20,245
 Shell Transport & Trading ........................      6,279        41,344
 Vodafone Group ...................................      9,121        16,630
                                                                 -----------
                                                                     343,713
                                                                 -----------
TOTAL FOREIGN COMMON STOCK                                                
    (Cost $1,310,855) .............................                1,274,642
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

FOREIGN PREFERRED STOCK -- 1.2%                                               

                                     SHARES/FACE
                                                    AMOUNT           VALUE
                                                    -----------       --------
GERMANY -- 1.2%                                                                 
 Volkswagen .......................................        681   $    17,866
                                                                 -----------
(Cost $21,494)                                                      

U.S. TREASURY OBLIGATION -- 8.8%                                              

U.S. Treasury Bill (A) (B) -- 8.8%                                              
 1.628%, 03/13/03 (Cost $129,586) .................   $130,000       129,707
                                                                 -----------

SHORT-TERM INVESTMENT -- 13.8%                                                

CASH EQUIVALENT -- 13.8%                                                        
Union Bank of California Money Market                                     
    (Cost $203,492) ...............................    203,492       203,492
                                                                 -----------
TOTAL INVESTMENTS -- 110.5%                                               
    (Cost $1,665,427) .............................                1,625,707
                                                                 -----------

OTHER ASSETS AND LIABILITIES, NET -- (10.5)%                                  
  Investment Advisory Fees Payable..................                   (7,237)
  Administrative Fees Payable.......................                     (816)
  Payable for Capital Shares Redeemed...............                 (135,388)
  Other Assets and Liabilities......................                  (11,158)
                                                                 -----------
  TOTAL OTHER ASSETS AND LIABILITIES, NET ..........                 (154,599)
                                                                 -----------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

NET ASSETS CONSIST OF:                                                        

                                                                   VALUE
                                                                   -------

 Paid in Capital ..................................              $ 3,816,800
  Distributions in Excess of Net Investment Income .                     (560)
  Accumulated Net Realized Loss ....................               (2,296,680)
Net Unrealized Depreciation on Investment                                 
     Transactions and Futures Contracts ............                  (49,489)
Net Unrealized Appreciation on Foreign Currency                           
and Translation of Other Assets and                                 
    Liabilities in Foreign Currency ...............                    1,037
                                                                 -----------
 TOTAL NET ASSETS -- 100.0% .......................              $ 1,471,108
                                                                 ===========
INSTITUTIONAL CLASS SHARES:                                               
Outstanding Shares of beneficial interest                                 
    (unlimited authorization --  no par value) ....                  217,834
                                                                 -----------
NET ASSET VALUE, Offering and Redemption                                  
    Price Per Share ...............................                    $6.75
                                                                 ===========

*   NON-INCOME PRODUCING SECURITY                                               
CL  CLASS                                                                       
(A) THE RATE SHOWN IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.                  
(B) ALL OR A PORTION OF THIS SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN   
FUTURES CONTRACTS.                                                      

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                               ANALYTIC FUNDS    
                                                              INTERNATIONAL FUND
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

At December 31, 2002, sector diversification of the Fund was as follows:        

                                      % OF
SECTOR DIVERSIFICATION (UNAUDITED)                    NET ASSETS      VALUE     
----------------------------------                    ----------      -----     
Aerospace/Defense ................................       0.9%        $   13,551 
Audio/Video ......................................       2.0             29,578 
Automotive .......................................       1.2             17,061 
Banking ..........................................       8.3            121,713 
Chemicals ........................................       4.0             58,030 
Consumer Products ................................       3.8             55,625 
Electric Utilities ...............................       3.1             45,253 
Electronics ......................................       1.0             14,747 
Engineering & Construction .......................       2.6             38,259 
Equipment ........................................       5.0             73,595 
Financial Services ...............................       2.4             35,805 
Food, Beverage & Tobacco .........................       2.1             31,499 
Insurance ........................................       1.5             21,731 
Machinery ........................................       1.4             19,906 
Manufacturing ....................................       4.0             58,950 
Medical Products .................................       8.0            117,442 
Metals & Mining ..................................       0.9             13,898 
Multimedia .......................................       0.9             12,573 
Oil & Gas ........................................       8.6            126,055 
Printing .........................................       1.5             22,128 
Real Estate ......................................       7.5            110,419 
Retail ...........................................       3.3             48,053 
Services .........................................       4.9             72,516 
Telecommunications ...............................       7.8            116,255 
                                                     ------         ----------
TOTAL FOREIGN COMMON STOCK .......................      86.7          1,274,642 
FOREIGN PREFERRED STOCK ..........................       1.2             17,866 
U.S. TREASURY OBLIGATION .........................       8.8            129,707 
CASH EQUIVALENT ..................................      13.8            203,492 
                                                     ------         ----------
TOTAL INVESTMENTS ................................     110.5          1,625,707 
OTHER ASSETS AND LIABILITIES, NET ................     (10.5)          (154,599)
                                                     ------         ----------
TOTAL NET ASSETS .................................     100.0%        $1,471,108 
                                                     ======         ==========

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                               ANALYTIC FUNDS    
                                                              FOR THE YEAR ENDED
                                                             DECEMBER 31, 2002
--------------------------------------------------------------------------------

STATEMENTS OF OPERATIONS                                                      

                                                        [Enlarge/Download Table]


                                                    DEFENSIVE     SHORT-TERM  INTERNATIONAL
                                                   EQUITY FUND   INCOME FUND     FUND      
                                                   -----------   -----------  -------------
                                                                                           
INVESTMENT INCOME                                                                          
Dividends ........................................ $   714,639    $     --      $  79,057  
Interest .........................................      25,942     101,662          5,184  
Less: Foreign Taxes Withheld .....................          (4)         --        (12,841) 
                                                   -----------    --------      ---------  
   TOTAL INVESTMENT INCOME .......................     740,577     101,662         71,400  
                                                   -----------    --------      ---------  
EXPENSES                                                                                   
Investment Advisory Fees .........................     222,327      11,388         30,379  
Administrative Fees ..............................     201,878      42,010         36,780  
Custodian Fees ...................................      12,014       8,103         46,431  
Transfer Agent Fees ..............................      53,033      24,880         23,059  
Trustees' Fees ...................................       5,987       3,058          2,532  
Shareholder Servicing Fees .......................      26,082       3,104         11,321  
Call Center Fees .................................      24,023       5,570          4,806  
Audit Fees .......................................      14,098      13,002         13,992  
Legal Fees .......................................      47,182      12,245         10,362  
Printing Fees ....................................      41,479       9,777          4,854  
Registration and Filing Fees .....................      21,210      18,995         14,342  
Dividends on Securities Sold Short ...............      35,574          --             --  
Other Expenses ...................................      13,347      11,389         11,300  
                                                   -----------    --------      ---------  
   TOTAL EXPENSES ................................     718,234     163,521        210,158  
                                                   -----------    --------      ---------  
Less:                                                                                      
Directed Brokerage ...............................    (137,524)         --             --  
Waiver of Investment Advisory Fees ...............    (178,296)    (11,388)       (30,379) 
Reimbursement of Other Expenses                                                            
    by Investment Adviser ........................          --    (129,357)      (140,286) 
                                                   -----------    --------      ---------  
   NET EXPENSES ..................................     402,414      22,776         39,493  
                                                   -----------    --------      ---------  
NET INVESTMENT INCOME ............................     338,163      78,886         31,907  
                                                   -----------    --------      ---------  
NET REALIZED GAIN (LOSS) ON:                                                               
   Investments (including securities sold short) .  (6,884,223)     28,148     (1,432,957) 
   Written Options ...............................   4,374,872      13,439             --  
   Foreign Currency Transactions .................          --          --          7,981  
   Futures .......................................    (419,072)     44,274      1,167,322  
                                                   -----------    --------      ---------  
   TOTAL NET REALIZED GAIN (LOSS) ................  (2,928,423)     85,861       (257,654) 
                                                   -----------    --------      ---------  
NET CHANGE IN UNREALIZED APPRECIATION                                                      
   (DEPRECIATION) ON:                                                                      
   Investments (including securities sold short) .  (2,698,064)     81,173        106,805  
   Written Options ...............................     558,925         827             --  
   Foreign Currency Translations .................          --          --          1,038  
   Futures .......................................      (3,516)     (7,013)        14,671  
                                                   -----------    --------      ---------  
   NET CHANGE IN UNREALIZED APPRECIATION                                                   
   (DEPRECIATION) ................................  (2,142,655)     74,987        122,514  
                                                   -----------    --------      ---------  
   NET REALIZED AND UNREALIZED GAIN (LOSS) .......  (5,071,078)    160,848       (135,140) 
                                                   -----------    --------      ---------  
INCREASE (DECREASE) IN NET ASSETS RESULTING                                                
   FROM OPERATIONS ............................... $(4,732,915)   $239,734      $(103,233) 
                                                   ===========    ========      =========  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                                ANALYTIC FUNDS   
                                                               DECEMBER 31, 2002

--------------------------------------------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS                                           

                                                        [Enlarge/Download Table]

                                                                                             SHORT-TERM           
                                                        DEFENSIVE EQUITY FUND                INCOME FUND          
                                                    ------------------------------   ---------------------------- 
                                                        YEAR              YEAR           YEAR            YEAR     
                                                        ENDED             ENDED          ENDED           ENDED    
                                                    DECEMBER 31,      DECEMBER 31,   DECEMBER 31,    DECEMBER 31, 
                                                        2002              2001           2002            2001     
                                                    ------------      ------------   ------------    ------------ 
                                                                                                                  
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:                                                                
   Net Investment Income .........................  $    338,163      $    309,402   $    78,886      $   206,455 
   Net Realized Gain (Loss) ......................    (2,928,423)       (1,105,716)       85,861           60,422 
   Net Change in Unrealized Appreciation                                                                          
     (Depreciation) ..............................    (2,142,655)         (297,758)       74,987          (11,323)
                                                    ------------      ------------   -----------      ----------- 
   NET INCREASE (DECREASE) IN NET ASSETS                                                                          
     RESULTING FROM OPERATIONS ...................    (4,732,915)       (1,094,072)      239,734          255,554 
                                                    ------------      ------------   -----------      ----------- 
DISTRIBUTIONS:                                                                                                    
   Net Investment Income .........................      (350,978)         (298,690)     (137,310)        (263,595)
   Return of Capital .............................       (12,492)             --            --               --   
   Net Realized Gain .............................          --            (190,808)         --               --   
                                                    ------------      ------------   -----------      ----------- 
   TOTAL DISTRIBUTIONS ...........................      (363,470)         (489,498)     (137,310)        (263,595)
                                                    ------------      ------------   -----------      ----------- 
CAPITAL SHARE TRANSACTIONS:                                                                                       
   Issued ........................................     5,992,056         4,037,081     6,291,796        4,947,981 
   In Lieu of Cash Distributions .................       350,552           470,660       151,310          266,034 
   Redeemed ......................................    (6,920,731)      (10,362,089)   (7,227,567)      (4,256,776)
                                                    ------------      ------------   -----------      ----------- 
   NET INCREASE (DECREASE) FROM CAPITAL SHARE                                                                     
     TRANSACTIONS ................................      (578,123)       (5,854,348)     (784,461)         957,239 
                                                    ------------      ------------   -----------      ----------- 
   TOTAL INCREASE (DECREASE) IN NET ASSETS .......    (5,674,508)       (7,437,918)     (682,037)         949,198 
                                                    ------------      ------------   -----------      ----------- 
NET ASSETS:                                                                                                       
   Beginning of Period ...........................    40,805,972        48,243,890     4,595,088        3,645,890 
                                                    ------------      ------------   -----------      ----------- 
   End of Period (a) .............................  $ 35,131,464      $ 40,805,972   $ 3,913,051      $ 4,595,088 
                                                    ============      ============   ===========      =========== 
SHARES ISSUED AND REDEEMED:                                                                                       
   Issued ........................................       640,636           378,544       628,633          495,745 
   In Lieu of Cash Distributions .................        37,018            45,918        15,089           26,731 
   Redeemed ......................................      (716,609)         (988,017)     (722,674)        (427,047)
                                                    ------------      ------------   -----------      ----------- 
   NET INCREASE (DECREASE) FROM SHARES ISSUED                                                                     
     AND REDEEMED ................................       (38,955)         (563,555)      (78,952)          95,429 
                                                    ============      ============   ===========      =========== 

(A) INCLUDING UNDISTRIBUTED/DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME OF 
$0, $10,445 FOR THE DEFENSIVE EQUITY FUND, $(130,764), $(72,340) FOR THE
   SHORT-TERM INCOME FUND AND $(560), $621 FOR THE INTERNATIONAL FUND, FOR THE
YEARS ENDED DECEMBER 31, 2002 AND 2001, RESPECTIVELY.                   

                                                                [Download Table]


                                                         INTERNATIONAL FUND      
                                                    ---------------------------- 
                                                        YEAR            YEAR     
                                                        ENDED           ENDED    
                                                    DECEMBER 31,    DECEMBER 31, 
                                                        2002            2001     
                                                    ------------    ------------ 
                                                                                 
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:                               
   Net Investment Income .........................  $    31,907      $    47,050 
   Net Realized Gain (Loss) ......................     (257,654)      (1,931,772)
   Net Change in Unrealized Appreciation                                         
     (Depreciation) ..............................      122,514          369,742 
                                                    -----------      ----------- 
   NET INCREASE (DECREASE) IN NET ASSETS                                         
     RESULTING FROM OPERATIONS ...................     (103,233)      (1,514,980)
                                                    -----------      ----------- 
DISTRIBUTIONS:                                                                   
   Net Investment Income .........................      (41,069)         (31,174)
   Return of Capital .............................         (839)            --   
   Net Realized Gain .............................         --               --   
                                                    -----------      ----------- 
   TOTAL DISTRIBUTIONS ...........................      (41,908)         (31,174)
                                                    -----------      ----------- 
CAPITAL SHARE TRANSACTIONS:                                                      
   Issued ........................................    3,092,042        7,092,602 
   In Lieu of Cash Distributions .................       41,715           31,123 
   Redeemed ......................................   (6,116,068)      (7,710,358)
                                                    -----------      ----------- 
   NET INCREASE (DECREASE) FROM CAPITAL SHARE                                    
     TRANSACTIONS ................................   (2,982,311)        (586,633)
                                                    -----------      ----------- 
   TOTAL INCREASE (DECREASE) IN NET ASSETS .......   (3,127,452)      (2,132,787)
                                                    -----------      ----------- 
NET ASSETS:                                                                      
   Beginning of Period ...........................    4,598,560        6,731,347 
                                                    -----------      ----------- 
   End of Period (a) .............................  $ 1,471,108      $ 4,598,560 
                                                    ===========      =========== 
SHARES ISSUED AND REDEEMED:                                                      
   Issued ........................................      419,924          878,480 
   In Lieu of Cash Distributions .................        6,264            4,304 
   Redeemed ......................................     (826,480)        (953,092)
                                                    -----------      ----------- 
   NET INCREASE (DECREASE) FROM SHARES ISSUED                                    
     AND REDEEMED ................................     (400,292)         (70,308)
                                                    ===========      =========== 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                            ANALYTIC FUNDS       
                                                           DEFENSIVE EQUITY FUND

--------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS                                                          

                                                        [Enlarge/Download Table]

                                                                                       SELECTED PER SHARE DATA & RATIOS 
                                                                           FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR 

                                                                                YEARS ENDED DECEMBER 31,                
                                                            ----------------------------------------------------------- 
                                                              2002        2001         2000         1999         1998   
                                                            -------      -------      -------      -------      ------- 

                                                                                                                        
Net Asset Value,                                                                                                        
   Beginning of Period .................................... $ 10.46      $ 10.80      $ 11.82      $ 11.77      $ 12.41 
                                                            -------      -------      -------      -------      ------- 
Income (Loss) from Investment Operations:                                                                               
   Net Investment Income ..................................    0.09         0.08         0.06         0.10         0.05 
   Net Realized and Unrealized Gain (Loss) ................   (1.36)       (0.30)       (0.82)        2.33         3.05 
                                                            -------      -------      -------      -------      ------- 
   Total from Investment Operations .......................   (1.27)       (0.22)       (0.76)        2.43         3.10 
                                                            -------      -------      -------      -------      ------- 
Distributions:                                                                                                          
   Net Investment Income ..................................   (0.10)(1)    (0.07)       (0.07)       (0.08)       (0.05)
   Net Realized Gain ......................................      --        (0.05)       (0.19)       (2.13)       (3.69)
   In Excess of Realized Gain .............................      --           --           --        (0.17)          -- 
                                                            -------      -------      -------      -------      ------- 
   Total Distributions ....................................   (0.10)(1)    (0.12)       (0.26)       (2.38)       (3.74)
                                                            -------      -------      -------      -------      ------- 

Net Asset Value,                                                                                                        
   End of Period .......................................... $  9.09      $ 10.46      $ 10.80      $  11.8      $ 11.77 
                                                            =======      =======      =======      =======      ======= 
   TOTAL RETURN+ ..........................................  (12.22)%      (1.98)%      (6.46)%      21.35%       28.89%
                                                            =======      =======      =======      =======      ======= 
RATIOS AND SUPPLEMENTAL DATA                                                                                            
Net Assets, End of Period (Thousands) ..................... $35,131      $40,806      $48,244      $70,842      $56,021 
Ratio of Expenses to Average Net Assets(2)                                                                              
   (including Dividend Expense) ...........................    1.09%        0.99%        0.99%        1.04%        1.38%
Ratio of Expenses to Average Net Assets(2)                                                                              
   (excluding Dividend Expense) ...........................    0.99%        0.99%        0.99%        1.04%        1.38%
Ratio of Net Investment Income to Average                                                                               
   Net Assets .............................................    0.91%        0.71%        0.51%        0.74%        0.40%
Portfolio Turnover Rate ...................................     224%         216%         264%         360%         299%

  THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIOD PRIOR TO AUGUST 31,
1998 IS THE FINANCIAL DATA OF THE DEFENSIVE EQUITY PORTFOLIO OF ANALYTIC
OPTIONED EQUITY FUND, INC. ANALYTIC DEFENSIVE EQUITY FUND ACQUIRED THE  
ASSETS AND ASSUMED THE LIABILITIES OF THE DEFENSIVE EQUITY PORTFOLIO OF 
    ANALYTIC OPTIONED EQUITY FUND, INC. ON AUGUST 31, 1998. THE NET ASSET VALUES
AT THE BEGINNING OF EACH PERIOD AND THE CHANGES IN NET ASSET VALUES     
    INCLUDING THE NET ASSET VALUES AT THE END OF EACH PERIOD THROUGH THE DATE OF
    REORGANIZATION HAVE BEEN RESTATED TO REFLECT THE CONVERSION RATIO OF 0.95328
USED ON THE DATE OF REORGANIZATION.                                     

 + TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED AND
  ASSUMED BY THE ADVISER DURING THE PERIOD. RETURNS SHOWN DO NOT REFLECT THE
    DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE
REDEMPTION OF FUND SHARES.                                              
(1) INCLUDES A RETURN OF CAPITAL OF $(0.003).                                   
(2) THE EXPENSE RATIOS FOR THESE PERIODS REFLECT FEE WAIVERS AND/OR             
    REIMBURSEMENTS. HAD THESE FEES NOT BEEN WAIVED AND/OR REIMBURSED, THE RATIOS
WOULD HAVE BEEN 1.94%, 1.69%, 1.17%, 1.18% AND 1.60% FOR THE YEARS ENDED
2002, 2001, 2000, 1999, AND 1998, RESPECTIVELY.                         

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                           ANALYTIC FUNDS        
                                                          SHORT-TERM INCOME FUND

--------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS                                                          

                                                        [Enlarge/Download Table]

                                                                                       SELECTED PER SHARE DATA & RATIOS 
                                                                           FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR 

                                                                                YEARS ENDED DECEMBER 31,                
                                                            ----------------------------------------------------------- 
                                                              2002        2001         2000         1999         1998   
                                                            -------      -------      -------      -------      ------- 

                                                                                                                        
Net Asset Value,                                                                                                        
   Beginning of Period .................................... $  9.93      $  9.92      $  9.79      $ 10.10      $  9.97 
                                                            -------      -------      -------      -------      ------- 
Income (Loss) from Investment Operations:                                                                               
   Net Investment Income ..................................    0.21         0.67         0.59         0.56         0.56 
   Net Realized and Unrealized Gain (Loss) ................    0.41         0.01++       0.13        (0.31)        0.14 
                                                            -------      -------      -------      -------      ------- 
   Total from Investment Operations .......................    0.62         0.68         0.72         0.25         0.70 
                                                            -------      -------      -------      -------      ------- 
Distributions:                                                                                                          
   Net Investment Income ..................................   (0.36)       (0.67)       (0.59)       (0.56)       (0.57)
                                                            -------      -------      -------      -------      ------- 

Net Asset Value,                                                                                                        
   End of Period .......................................... $ 10.19      $  9.93      $  9.92      $  9.79      $ 10.10 
                                                            =======      =======      =======      =======      ======= 
   TOTAL RETURN+ ..........................................    6.39%        7.02%        7.60%        2.54%        7.10%
                                                            =======      =======      =======      =======      ======= 

RATIOS AND SUPPLEMENTAL DATA                                                                                            
Net Assets, End of Period (Thousands) ..................... $ 3,913      $ 4,595      $ 3,646      $ 3,729      $ 5,259 
Ratio of Expenses to Average Net Assets(1) ................    0.60%        0.60%        0.60%        0.69%        0.84%
Ratio of Net Investment Income to Average Net Assets ......    2.08%        5.20%        6.02%        5.68%        5.43%
Portfolio Turnover Rate ...................................     113%         167%          34%          62%          25%

THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIOD PRIOR TO JULY 27, 1998 IS
THE FINANCIAL DATA OF THE SHORT-TERM GOVERNMENT FUND, SERIES OF A PREDECESSOR   
COMPANY, THE ANALYTIC SERIES FUND, INC. ANALYTIC SHORT-TERM GOVERNMENT FUND     
ACQUIRED THE ASSETS AND ASSUMED THE LIABILITIES OF THE SHORT-TERM INCOME FUND OF
THE ANALYTIC SERIES FUND, INC. ON JULY 27, 1998. THE NET ASSET VALUES AT THE    
BEGINNING OF EACH PERIOD AND THE CHANGES IN NET ASSET VALUES INCLUDING THE NET  
ASSET VALUES AT THE END OF EACH PERIOD THROUGH THE DATE OF REORGANIZATION HAVE  
BEEN RESTATED TO REFLECT THE CONVERSION RATIO OF 1.0162 USED ON THE DATE OF     
REORGANIZATION.                                                                 

 + TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED AND
  ASSUMED BY THE ADVISER DURING THE PERIOD. RETURNS SHOWN DO NOT REFLECT THE
    DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE
REDEMPTION OF FUND SHARES.                                              
++ THE AMOUNT SHOWN FOR THE YEAR ENDED DECEMBER 31, 2001 FOR A SHARE          
OUTSTANDING THROUGHOUT THE PERIOD DOES NOT ACCORD WITH THE AGGREGATE NET
  LOSSES ON INVESTMENTS FOR THAT PERIOD BECAUSE OF THE SALES AND REPURCHASES
    OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUE OF THE INVESTMENTS OF
THE FUND.                                                               
(1) THE EXPENSE RATIOS FOR THESE PERIODS REFLECT FEE WAIVERS AND/OR             
    REIMBURSEMENTS. HAD THESE FEES NOT BEEN WAIVED AND/OR REIMBURSED, THE RATIOS
WOULD HAVE BEEN 4.31%, 3.39%, 3.86%, 3.05% AND 3.73% FOR THE YEARS ENDED
2002, 2001, 2000, 1999 AND 1998, RESPECTIVELY.                          

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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THE ADVISORS' INNER CIRCLE FUND                               ANALYTIC FUNDS    
                                                              INTERNATIONAL FUND

--------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS                                                          

                                                        [Enlarge/Download Table]

                                                                                       SELECTED PER SHARE DATA & RATIOS
                                                                         FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

                                                                                                          SEPTEMBER 30,
                                                             YEAR ENDED     YEAR ENDED     YEAR ENDED      1999*** TO  
                                                            DECEMBER 31,   DECEMBER 31,   DECEMBER 31,    DECEMBER 31, 
                                                                2002           2001           2000            1999     
                                                            ------------   ------------   ------------    -------------
                                                                                                                       
Net Asset Value,                                                                                                       
   Beginning of Period ....................................    $ 7.44         $ 9.78         $11.25          $10.00    
                                                               ------         ------         ------          ------    
Income (Loss) from Investment Operations:                                                                              
   Net Investment Income ..................................      0.12           0.03           0.11            0.01    
   Net Realized and Unrealized Gain (Loss) ................     (0.62)         (2.32)         (1.40)           1.25    
                                                               ------         ------         ------          ------    
   Total from Investment Operations .......................     (0.50)         (2.29)         (1.29)           1.26    
                                                               ------         ------         ------          ------    
Distributions:                                                                                                         
   Net Investment Income ..................................     (0.19)(1)      (0.05)         (0.10)             --    
   Net Realized Gain ......................................        --             --          (0.04)          (0.01)   
   In Excess of Net Realized Gain .........................        --             --          (0.04)             --    
                                                               ------         ------         ------          ------    
   Total Distributions ....................................     (0.19)(1)      (0.05)         (0.18)          (0.01)   
                                                               ------         ------         ------          ------    
Net Asset Value,                                                                                                       
   End of Period ..........................................    $ 6.75         $ 7.44         $ 9.78          $11.25    
                                                               ======         ======         ======          ======    
TOTAL RETURN+ .............................................     (6.73)%       (23.41)%       (11.44)%         12.67%** 
                                                               ======         ======         ======          ======    

RATIOS AND SUPPLEMENTAL DATA                                                                                           
Net Assets, End of Period (Thousands) .....................    $1,471         $4,599         $6,731          $1,658    
Ratio of Expenses to Average Net Assets(2) ................      1.30%          1.30%          1.30%           1.30%*  
Ratio of Net Investment Income to Average Net Assets ......      1.05%          0.84%          1.11%           0.66%*  
Portfolio Turnover Rate ...................................       198%           176%            38%              5%   

* ANNUALIZED                                                                
** NOT ANNUALIZED                                                             
*** COMMENCEMENT OF OPERATIONS.                                                 
 + TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED AND
  ASSUMED BY THE ADVISER DURING THE PERIOD. RETURNS SHOWN DO NOT REFLECT THE
    DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE
REDEMPTION OF FUND SHARES.                                              
(1) INCLUDES A RETURN OF CAPITAL OF $(0.002).                                   
(2) THE EXPENSE RATIOS FOR THESE PERIODS REFLECT FEE WAIVERS AND/OR             
    REIMBURSEMENTS. HAD THESE FEES NOT BEEN WAIVED AND/OR REIMBURSED, THE RATIOS
 WOULD HAVE BEEN 6.92%, 4.78%, 3.80% AND 1.69% FOR THE PERIODS ENDED 2002,
2001, 2000 AND 1999, RESPECTIVELY.                                      

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.        

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NOTES TO FINANCIAL STATEMENTS                                                 

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 42 funds. The financial statements herein are those of the Analytic
Defensive   Equity   Fund,   Analytic   Short-Term   Income  Fund  and  Analytic
International  Fund (the  "Funds").  The  financial  statements of the remaining
funds are presented  separately.  The assets of each fund are segregated,  and a
shareholder's  interest  is  limited to the fund in which  shares are held.  The
Funds' prospectus  provides a description of each Funds' investment  objectives,
policies and strategies.                                                        

On June 7,  2002,  the  shareholders  of UAM  Analytic  Defensive  Equity  Fund,
Analytic  Short-Term  Income  Fund and  Analytic  International  Fund  (the "UAM
Portfolios") each a series of the UAM Funds,  Inc. II, (the "UAM Funds"),  voted
to approve a tax-free reorganization of the UAM Portfolios through a transfer of
all assets  and  liabilities  to The  Advisors'  Inner  Circle  Fund's  Analytic
Defensive   Equity   Fund,   Analytic   Short-Term   Income  Fund  and  Analytic
International Fund (the "Reorganization"). The Reorganization took place on June
24, 2002.                                                                       

     A. SIGNIFICANT  ACCOUNTING POLICIES:  The following significant  accounting
policies are in conformity with accounting  principles generally accepted in the
United States of America.  Such policies are consistently  followed by the Funds
in  the  preparation  of  their  financial  statements.   Accounting  principles
generally  accepted in the United States of America  require  management to make
estimates and  assumptions  that affect the reported  amounts and disclosures in
the financial statements. Actual results may differ from those estimates.       

              1. SECURITY VALUATION: Securities listed on a securities exchange,
         market or automated  quotation  system for which quotations are readily
         available,  including securities traded over the counter, are valued at
         the last quoted sale price on the principal exchange or market (foreign
         or  domestic)  on  which  they  are  traded  on  valuation  date (or at
         approximately  4:00  p.m.  ETif  a  security's  principal  exchange  is
         normally  open at that time),  or, if there is no such reported sale on
         the valuation date, at the most recent quoted bid price. If such prices
         are not  available,  the  security  will be  valued  at fair  value  as
determined in good faith by the Trust's Board of Trustees.    

              Money Market  Securities and other debt  securities with remaining
         maturities  of 60 days or less may be valued at their  amortized  cost,
which approximates market value.                              

              2.  REPURCHASE   AGREEMENTS:   In  connection  with   transactions
         involving  repurchase  agreements,  a third party  custodian bank takes
         possession of the underlying  securities  ("collateral"),  the value of
         which  exceeds  the  principal  amount of the  repurchase  transaction,
         including accrued  interest.  In the event of default on the obligation
         to  repurchase,  the Fund has the right to liquidate the collateral and
         apply the proceeds in satisfaction  of the obligation.  In the event of
         default or bankruptcy by the counterparty to the agreement, realization
         and/or  retention of the collateral or proceeds may be subject to legal
proceedings.                                                  

              3.   DISTRIBUTIONS   TO  SHAREHOLDERS:   Distributions   from  net
         investment  income for the Defensive  Equity Fund are declared and paid
         quarterly,  if available.  Distributions from net investment income for
         the  Short-Term  Income  Fund are  declared  daily  and  paid  monthly.
         Distributions from net investment income for the International Fund are
         declared  and paid  annually.  Distributions  of net  realized  capital
gains, for all funds, will be distributed annually.           

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              4. OTHER:  Security  transactions are accounted for on trade date.
         Costs  used in  determining  realized  gains or  losses  on the sale of
         investment securities are based on the specific  identification method.
         Dividend income is recorded on the ex-dividend date. Interest income is
         recognized on the accrual  basis.  Discounts and premiums on securities
         purchased are amortized  using the scientific  interest  method,  which
         approximates the effective interest method.  Most expenses of the Trust
         can be directly  attributed  to a particular  portfolio.  Expenses that
         cannot be directly  attributed to a fund or share class are apportioned
         among  the  funds of the  Trust  based on the  number  of funds  and/or
         relative  net  assets.  Income,  expenses  (other  than class  specific
         expenses) and realized and unrealized  gains or losses are allocated to
each class of shares based upon their relative net assets.    

              5.  FOREIGN  CURRENCY  TRANSLATION:  The books and  records of the
         Analytic International 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
         Analytic  International  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.  These gains and losses are  included in net
         realized  and  unrealized  gains  and  losses  on  investments  on  the
         statement of operations.  Net realized and unrealized  gains and losses
         on foreign currency  transactions  represent net foreign exchange gains
         or losses from forward foreign currency exchange contracts, disposition
         of foreign currencies,  currency gains or losses realized between trade
         and  settlement  dates on securities  transactions  and the  difference
         between the amount of the  investment  income and  foreign  withholding
         taxes recorded on the Analytic  International Fund's books and the U.S.
dollar equivalent amounts actually received or paid.          

              6. DERIVATIVE FINANCIAL INSTRUMENTS: Each Fund may utilize various
         call options,  put options and financial futures  strategies in pursuit
         of its  objective.  These  techniques  will be used  primarily to hedge
         against changes in security prices, interest rates, or foreign currency
         exchange  rates on  securities  held or  intended to be acquired by the
         Funds.  These  techniques are intended to act as an efficient  means of
         adjusting  exposure  to  stock  and  bond  markets  and to  reduce  the
         volatility of the currency exposure associated with foreign securities.
         The Funds will only write  covered call and put options on common stock
or stock indices.                                             

              7.  FORWARD  FOREIGN  CURRENCY  EXCHANGE  CONTRACTS:  The Analytic
         International  Fund may enter into forward  foreign  currency  exchange
         contracts  to  protect  the  value  of  securities   held  and  related
         receivables  and payables  against  changes in future foreign  exchange
         rates. A forward currency  contract is an agreement between two parties
         to buy and sell  currency at a set price on a future  date.  The market
         value of the contract will fluctuate with changes in currency  exchange
         rates. The contract is marked-to-market daily using the current forward
         rate and the  change  in  market  value  is  recorded  by the  Analytic
         International   Fund  as   unrealized   gain  or  loss.   The  Analytic
         International  Fund  recognizes  realized  gains  or  losses  when  the
         contract is closed,  equal to the  difference  between the value of the
         contract  at the time it was  opened  and the  value at the time it was
         closed.  Risks may arise from the unanticipated  movements in the value
         of a foreign currency relative to the U.S. dollar. Risks may also arise
         upon entering  into these  contracts  from the  potential  inability of
         counterparties  to meet the terms of their  contracts and are generally
         limited to the amount of unrealized  gain on the contracts,  if any, at
         the date of default. The Analytic International Fund had no outstanding
   forward foreign currency exchange contracts at December 31, 2002.

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              8. WRITTEN  OPTIONS:  When a covered put or call option is written
         in a Fund,  an  amount  equal to the  premium  received  by the Fund is
         recorded  as  a  liability.   The  amount  of  the  liability  will  be
         subsequently  marked-to-market  to reflect the current  market value of
         the option  written.  When a Fund writes a covered  option,  securities
         equal in value to the exercise price are placed in a segregated account
to collateralize the outstanding option.                      

              When a covered  written call expires on its stipulated  expiration
         date, or if the Fund enters into a closing  purchase  transaction,  the
         Fund will  realize a gain (or loss if the cost of the closing  purchase
         transaction  exceeds  the  premium  received  when the call  option was
         written)  without  regard  to  any  unrealized  gain  or  loss  on  the
         underlying  security,  and the liability related to such option will be
         extinguished. When a covered written call option is exercised, the Fund
         will  realize a gain or loss from the sale of the  underlying  security
         and the proceeds of the sale are  increased  by the premium  originally
received.                                                     

              When a covered  written put expires,  or if the Fund enters into a
         closing purchase  transaction,  the Fund will realize a gain or loss on
         the option  transaction  and the  liability  related to such  option is
         extinguished.  When a put option is exercised,  the Fund  purchases the
         security, the cost of the security is reduced by the premium originally
received, and no gain or loss is recognized.                  

              The Funds write option  contracts with  off-balance  sheet risk in
         the normal  course of their  investment  activities  in order to manage
         exposure  to market  risks  such as  interest  rates.  The  contractual
         amounts of these instruments represent the investment the Funds have in
         particular  classes of  financial  instruments  and do not  necessarily
         represent the amounts  potentially  subject to risk. The measurement of
         the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.           

              9.  FUTURES  CONTRACTS:  Each of the Funds may enter into  futures
         contracts  to the  extent  permitted  by its  investment  policies  and
         objectives.  Upon entering into a futures contract, a Fund will deposit
         securities  for the initial  margin with its  custodian in a segregated
         account.   Subsequent  payments,  which  are  dependent  on  the  daily
         fluctuations  in the value of the  underlying  instrument,  are made or
         received by a Fund each day (daily  variation  margin) and are recorded
         as unrealized gains or losses until the contracts are closed.  When the
         contract is closed, a Fund records a realized gain or loss equal to the
         difference   between  the  proceeds  from  (or  cost  of)  the  closing
         transactions and a Fund's basis in the contract. Risks of entering into
         futures contracts include the possibility that a change in the value of
         the  contract  may not  correlate  with the changes in the value of the
         underlying instruments. Second, it is possible that a lack of liquidity
         for futures contracts could exist in the secondary market, resulting in
         an inability to close a futures  position  prior to its maturity  date.
         Third, the purchase of a futures contract involves the risk that a Fund
         could lose more than the original margin deposit required to initiate a
futures transaction.                                          

              10.  SHORT  SALES:  As  consistent  with  the  Funds'   investment
         objectives,  the Funds may engage in short sales that are  "uncovered."
         Uncovered  short  sales are  transactions  under which the Funds sell a
         security  they do not own. To complete  such a  transaction,  the Funds
         must borrow the security to make delivery to the buyer.  The Funds then
         are  obligated  to replace  the  security  borrowed by  purchasing  the
         security at the market price at the time of the replacement.  The price
         at such time may be more or less  than the price at which the  security
         was sold by the Funds.  Until the security is  replaced,  the Funds are
         required to pay the lender  amounts  equal to any dividends or interest
         that accrue during the period of the loan. To borrow the security,  the
Funds also may be required to pay a                           

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         premium,  which  would  increase  the cost of the  security  sold.  The
         proceeds  of the short  sale will be  retained  by the  broker,  to the
         extent necessary to meet margin requirements,  until the short position
         is closed out. A gain, limited to the price at which the Funds sold the
         security short,  or a loss,  unlimited in size, will be recognized upon
the close of a short sale.                                    

              Until the Funds close their short position or replace the borrowed
         security,  the Funds will: (a) maintain a segregated account containing
         cash or liquid securities at such a level that (i) the amount deposited
         in the account plus the amount  deposited with the broker as collateral
         will equal the current value of the security  sold short;  and (ii) the
         amount  deposited in the segregated  account plus the amount  deposited
         with the broker as collateral will not be less than the market value of
         the security at the time the security was sold short,  or (b) otherwise
cover the Funds' short positions.                             

     B. INVESTMENT ADVISORY SERVICES:  Under the terms of an investment advisory
agreement,  Analytic Investors, Inc. (the "Adviser"), an affiliate of Old Mutual
(US) Holdings Inc.,  provides investment advisory services to the Funds at a fee
calculated at an annual rate of 0.60% of the average net assets of the Defensive
Equity Fund; 0.30% of the average net assets of the Short-Term  IncomeFund;  and
1.00% of the average net assets of the International Fund.                      

     The Adviser has agreed to waive or limit its advisory  fees or assume other
expenses in an amount that  operates  to limit the total  annual fund  operating
expenses of each Analytic Fund as follows:  0.99% of the Defensive  Equity Fund;
0.60% of the Short-Term Income Fund and 1.30% of the International Fund. The fee
waiver/expense  reimbursement arrangement for each Fund is expected to remain in
effect for the fiscal year ending December 31, 2003 and can be terminated at any
time at the option of the Adviser.                                              

     C.   ADMINISTRATION  AND  DISTRIBUTION   AGREEMENTS:   The  Trust  and  SEI
Investments  Global  Funds  Services  (formerly  SEI  Investments  Mutual  Funds
Services,  the  "Administrator"  or "SEI"),  a wholly  owned  subsidiary  of SEI
Investment Company,  are parties to an Administration  Agreement under which the
Administrator provides management and administrative  services for an annual fee
equal to the higher of $125,000 for one fund,  $250,000 for two funds,  $350,000
for three funds,  plus $75,000 per additional  fund, plus $20,000 per additional
class or 0.12% of the first $250 million,  0.10% of the next $250 million, 0.08%
of the next $250  million  and 0.04% of any  amount  above  $750  million of the
Funds' average daily net assets.                                                

     Prior to June 24,  2002 the UAM  Funds  and SEI  Investments  Global  Funds
Services were parties to an Administration  Agreement dated April 1, 2001, under
which the Administrator  provided the UAM Funds with certain legal,  accounting,
and  shareholder  services  for an annual fee of 0.093% per annum of the average
daily net assets of the Defensive Equity and the International Funds; and 0.073%
per annum of the average daily net assets of the  Short-Term  Income Fund.  Each
Fund also paid an annual base fee of no more than $54,500 per Fund.             

     D. DIRECTED BROKERAGE: The Defensive Equity Fund directed certain portfolio
trades to brokers who pay a portion of their expenses.  Under this  arrangement,
the Fund had  expenses  reduced by  $137,524.  The effect on the Fund's  expense
ratio,  as a percentage of the average net assets of the Fund for the year ended
December 31, 2002, is 0.37%.                                                    

     E. DISTRIBUTION  SERVICES:  The Trust and SEI Investments  Distribution Co.
(the  "Distributor")  are parties to a Distribution  Agreement.  The Distributor
receives no fees under the agreement. Prior to June 24, 2002 the UAM Funds      

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and Funds Distributor, Inc. were parties to a Distribution Agreement dated April
1, 2001. Funds Distributor,  Inc. received no fees for its distribution services
under this agreement.  Effective June 24, 2002, due to the Reorganization,  this
agreement was terminated.                                                       

     F. SHAREHOLDER  SERVICING FEES:  Certain  brokers,  dealers,  banks,  trust
companies and other financial representatives receive compensation from theFunds
for providing a variety of services,  including  record keeping and  transaction
processing.  Such fees are based on the assets of the Funds that are serviced by
the   financial   representative.   Effective   June  24,   2002,   due  to  the
Reorganization,  these  agreements were terminated and new agreements  under the
same terms were executed with the Funds.                                        

     G.  TRANSFER  AGENT:  DST Systems,  Inc.  serves as the transfer  agent and
dividend disbursing agent for the Funds under a transfer agency agreement.      

     H. PURCHASES AND SALES:  The cost of securities  purchased and the proceeds
from  securities  sold,  other than  short-term  investments and options for the
Funds for the year ended December 31, 2002 were as follows:                     

                                                U.S. GOVT.      U.S. GOVT.
               PURCHASES        SALES        PURCHASES         SALES
                  -------------  -------------  --------------  --------------
Defensive Equity    $85,296,458    $81,353,914     $       --      $       --   
Short-Term Income            --             --      2,908,708       3,230,463   
International         5,344,624      8,176,580             --              --   

Transactions in option  contracts  written in the Defensive  Equity Fund were as
follows:                                                                        

                   NUMBER OF
                                         CONTRACTS              PREMIUMS
                                         -------------          ------------
Outstanding at December 31, 2001                 200               $   567,880  
Options written                                4,480                25,182,081  
Options terminated in closing                                                   
  purchase transactions                      (4,095)              (22,336,722)
Options expired                                 (220)               (1,260,534) 
                                          -----------            -----------
Outstanding at December 31, 2002                 365               $ 2,152,705  
                                          ===========            ===========

Transactions in option contracts  written in the Short-Term  Income Fund were as
follows:                                                                        

                   NUMBER OF
                                         CONTRACTS              PREMIUMS
                                         -------------          ------------
Outstanding at December 31, 2001                  56                $  8,921    
Options written                                  553                 127,310    
Options terminated in closing                                                   
purchase transactions                        (164)                (41,256)
Options expired                                 (411)                (87,401)   
                                        -----------             --------
Outstanding at December 31, 2002                  34                $  7,574    
                                        ===========             ========

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     I. OPEN FUTURES  CONTRACTS:  The following Funds had futures contracts open
as of December 31, 2002:                                                        
                         NUMBER                               UNREALIZED
CONTRACT                    OF              SETTLEMENT        APPRECIATION
 DESCRIPTION              CONTRACTS             MONTH         (DEPRECIATION)
 ------------             ---------         ------------      --------------
DEFENSIVE EQUITY                                                          
S&P 500                     23             March 2003            $(3,516) 
                                                                ========
SHORT-TERM INCOME                                                         
Australian Dollar            4             March 2003            $(1,560) 
British Pound                2             March 2003               4,630 
Canadian Dollar              2             March 2003             (1,380) 
Japanese Yen                (2)            March 2003             (7,695) 
                                                                --------
                                                                $(6,005)
                                                                ========
INTERNATIONAL                                                             
Australian Dollar            3             March 2003            $(1,140) 
British Pound                2             March 2003               4,650 
CAC 40 Index                 2           January 2003               (267) 
Canadian Dollar              1             March 2003               (680) 
DAX Index                    1             March 2003             (6,208) 
FTSE 100 Index              (2)            March 2003                   5 
Hang Seng Index              1           January 2003             (1,802) 
Ibex Plus Index             (1)          January 2003               2,934 
Japanese Yen                (1)            March 2003             (3,837) 
OMX Index                  (10)          January 2003               2,412 
S&P 500 EMINI                2             March 2003                 128 
S&P/TSE 60 Index             2             March 2003             (1,139) 
Swiss Franc                 (1)            March 2003             (4,825) 
                                                                --------
                                                                $(9,769)
                                                                ========

     J.  FEDERAL  TAX  INFORMATION:  It is the Funds'  intention  to continue to
qualify as regulated  investment  companies  under  Subchapter M of the Internal
Revenue Code and to distribute  all of their  taxable  income.  Accordingly,  no
provision for Federal income taxes is required in the financial statements.     

     The amount and  character  of income and capital gain  distributions  to be
paid are determined in accordance with Federal income tax regulations, which may
differ from  accounting  principles  generally  accepted in the United States of
America.  These  differences  are  primarily  due  to  differing  book  and  tax
treatments in the timing of the  recognition  of gains or losses on  investments
and foreign currency transactions.                                              

     Permanent book and tax basis differences  relating to return of capital and
foreign  exchange gain (loss) may result in  reclassifications  to undistributed
net investment  income (loss),  accumulated net realized gain (loss) and paid in
capital.                                                                        

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     Permanent  book-tax  differences,  if  any,  are  not  included  in  ending
undistributed  net investment  income (loss) for the purposes of calculating net
investment income (loss) per share in the financial highlights. Accordingly, the
following  permanent  differences have been  reclassified  to/from the following
accounts as of December 31, 2002.                                               

                             UNDISTRIBUTED
                                PAID IN       NET INVESTMENT     ACCUMULATED
     ANALYTIC FUNDS              CAPITAL           INCOME        REALIZED LOSS
     ----------------         -------------    --------------    -------------
   Defensive Equity            $(12,492)         $14,862          $(2,370)
   International                   (839)           8,820           (7,981)

     These  reclassifications had no impact on the net assets or net asset value
of the Funds.                                                                   

     The tax character of dividends and  distributions  paid during the last two
years were as follows:                                                          

               ORDINARY      LONG-TERM        RETURN
  ANALYTIC FUNDS            INCOME      CAPITAL GAIN    OF CAPITAL     TOTAL
  -----------------      ------------   ------------    ----------     -----
Defensive Equity                                                        
   2002                    $350,978        $     --       $12,492     $363,470
   2001                     298,957         190,541            --      489,498
Short-Term Income                                                       
   2002                     137,310              --            --      137,310
   2001                     263,595              --            --      263,595
International                                                           
   2002                      41,069              --           839       41,908
   2001                      31,174              --            --       31,174

     As of December 31, 2002,  the  components  of  Accumulated  Losses on a tax
basis were as follows:                                                          
                                  ANALYTIC FUNDS
                                   -------------------------------------------
                    DEFENSIVE     SHORT-TERM
                                     EQUITY         INCOME     INTERNATIONAL
                                  ------------    ----------   -------------
   Capital Loss Carryforwards     $(1,666,665)    $(795,789)    $(2,252,128)
   Post October Losses             (2,162,400)           --         (50,112)
   Post October Currency Losses            --            --            (560)
Net Unrealized Appreciation                                           
      (Depreciation)               (2,082,315)       39,464         (42,892)
                                  ------------    ----------    ------------
   Total Accumulated Losses       $(5,911,380)    $(756,325)    $(2,345,692)

     For Federal  income tax purposes,  capital loss  carryforwards  (which will
expire in the years indicated) may be carried forward and applied against future
capital gains as follows:                                                       

                                                        [Enlarge/Download Table]

                                                                                                             POST   
                                                                                                           OCTOBER  
                                                                                                           DEFERRED 
ANALYTIC FUNDS      2003      2004     2005   2006    2007     2008       2009       2010       TOTAL        LOSS   
----------------    ----      ----     ----   ----    ----     ----       ----       ----     ----------  ----------
                                                                                                                    
Defensive Equity  $     --  $     --  $   --   $--  $    --  $    --  $       --  $1,666,665  $1,666,665  $2,162,400
Short-Term                                                                                                          
 Income            256,292   444,657   3,860    --   70,796   20,184          --          --     795,789          --
International           --      --        --    --       --       --   1,727,552     524,576   2,252,128      50,112

     Post-October  losses  represent  losses  realized on investment and foreign
currency  transactions  from November 1, 2002 through December 31, 2002 that, in
accordance with federal income tax regulations the Fund has elected to defer and
treat as having arisen in the following fiscal year.                            

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     For Federal income tax purposes,  the cost of securities  owned at December
31, 2002,  and the net  unrealized  gains or losses on  securities  sold for the
period were different from amounts  reported for financial  reporting  purposes,
primarily due to wash sales which cannot be used for Federal income tax purposes
in the current year and have been deferred for use in future years.  The Federal
tax cost  and  aggregate  gross  unrealized  appreciation  and  depreciation  on
investments, held by the Funds at December 31, 2002, were as follows:           

                                                                [Download Table]

                                                             NET UNREALIZED
                      FEDERAL    APPRECIATED   DEPRECIATED    APPRECIATION 
ANALYTIC FUNDS       TAX COST    SECURITIES    SECURITIES    (DEPRECIATION)
----------------   -----------  ------------  -------------  --------------
                                                                           
Defensive Equity   $45,478,479   $1,949,311   $(4,217,175)    $(2,267,864) 
Short-Term Income    3,812,786       86,977        (5,048)         81,929  
International        1,665,572       34,576       (74,441)        (39,865) 

     K. LINE OF CREDIT: The UAM Portfolios,  along with certain other portfolios
of UAM Funds,  collectively  entered  into an  agreement  which  enabled them to
participate  in a $100  million  unsecured  line of credit with  several  banks.
During the period  November 1, 2001  through  June 23, 2002 the UAM Funds had no
borrowings   under  the   agreement.   Effective  June  24,  2002,  due  to  the
Reorganization, this agreement was terminated.                                  

     L. OTHER: At December 31, 2002, the percentage of total shares  outstanding
held by record  shareholders  each owning 10% or greater of the aggregate  total
shares outstanding for each Fund was as follows:                                
   ANALYTIC FUNDS                      NO. OF SHAREHOLDERS     % OWNERSHIP
   ------------                        -------------------     -----------
Defensive Equity                             1                 14.2%
Short-Term Income                            3                 54.8 
International                                2                 91.1 

     M.  TRANSACTIONS  WITH  AFFILIATES:  Effective April 1, 2001, the UAM Funds
entered into an agreement with PBHG  Shareholder  Servicing  Center  ("PBHGSSC")
whereby PBHGSSC began providing  shareholder services to the UAMFunds.  Pursuant
to the agreement,  the UAM Funds paid PBHGSSC  $8,250 for the first  operational
class of a fund  plus  $2,750  for each  additional  class of a fund and $33 per
account annually.  For the period ended June 23, 2002, PBHGSSC was paid $24,023,
$5,570 and $4,806 by the UAM Analytic  Defensive  Equity,  Short-Term Income and
International  Funds,  respectively.   Effective  June  24,  2002,  due  to  the
Reorganization, this agreement was terminated.                                  

     Certain officers of the Trust are also officers of the Administrator and/or
the  Distributor.  Such  officers  are paid no fees by the Trust for  serving as
officers of the Trust.                                                          

     The Distributor acts as an agent in placing  repurchase  agreements for the
Funds. The Distributor  received $584 and $90 from the Analytic Defensive Equity
and  Short-Term  Income Funds,  respectively,  for the period ended December 31,
2002.                                                                           

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REPORT OF INDEPENDENT ACCOUNTANTS                                             

To the Board of Trustees of                                                     
The Advisors' Inner Circle Fund and the Shareholders of                         
Analytic Defensive Equity Fund,                                                 
Analytic Short-Term Income Fund and                                             
Analytic International Fund                                                     

In our  opinion,  the  accompanying  statements  of net assets  and the  related
statements  of  operations  and of  changes  in net  assets  and  the  financial
highlights present fairly, in all material  respects,  the financial position of
Analytic  Defensive Equity Fund,  Analytic  Short-Term  Income Fund and Analytic
International  Fund (three of the funds  constituting The Advisors' Inner Circle
Fund, hereafter referred to as the "Trust") at December 31, 2002, the results of
each of their  operations for the year then ended,  the changes in each of their
net assets for each of the two years in the period then ended and the  financial
highlights  for each of the periods  indicated,  in conformity  with  accounting
principles  generally accepted in the United States of America.  These financial
statements  and  financial  highlights  (hereafter  referred  to  as  "financial
statements")   are  the   responsibility   of  the   Trust's   management;   our
responsibility  is to express an opinion on these financial  statements based on
our audits. We conducted our audits of these financial  statements in accordance
with  auditing  standards  generally  accepted in the United  States of America,
which require that we plan and perform the audit to obtain reasonable  assurance
about whether the financial  statements  are free of material  misstatement.  An
audit includes examining,  on a test basis,  evidence supporting the amounts and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by management,  and evaluating the overall
financial  statement  presentation.  We believe that our audits,  which included
confirmation  of  securities  at December  31, 2002 by  correspondence  with the
custodian and brokers, provide a reasonable basis for our opinion.              

PricewaterhouseCoopers LLP                                                      

Philadelphia, Pennsylvania                                                      
February 11, 2003                                                               

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THE ADVISORS' INNER CIRCLE FUND                                                 

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TRUSTEES AND OFFICERS OF THE ADVISORS' INNER CIRCLE FUND (UNAUDITED)          

Set forth below are the names, age,  position with the Trust,  length of term of
office,  and the  principal  occupations  for the last five years of each of the
persons  currently  serving as 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                       

                                                        [Enlarge/Download Table]


                                                    TERM OF                                                                         
                              POSITION(S)          OFFICE AND                                                                       
    NAME, ADDRESS,             HELD WITH            LENGTH OF                       PRINCIPAL OCCUPATION(S)                         
         AGE1                  THE TRUST           TIME SERVED2                       DURING PAST 5 YEARS                           
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
INDEPENDENT                                                                                                                         
BOARD MEMBERS                                                                                                                       
-------------                                                                                                                       

JOHN T. COONEY                 Trustee            (Since 1993)                 Vice Chairman of Ameritrust Texas N.A.,              
75 yrs. old                                                                    1989-1992, and MTrust Corp., 1985-1989.              

------------------------------------------------------------------------------------------------------------------------------------
ROBERT A. PATTERSON            Trustee            (Since 1993)                 Pennsylvania State University, Senior Vice           
75 yrs. old                                                                    President, Treasurer (Emeritus); Financial           
                                                                               and Investment Consultant, Professor of              
                                                                               Transportation since 1984; Vice President-           
                                                                               Investments, Treasurer, Senior Vice President        
                                                                               (Emeritus), 1982-1984. Director,                     
                                                                               Pennsylvania Research Corp.                          
------------------------------------------------------------------------------------------------------------------------------------
EUGENE B. PETERS               Trustee            (Since 1993)                 Private investor from 1987 to present. Vice          
73 yrs. old                                                                    President and Chief Financial officer, Western       
                                                                               Company of North America (petroleum ser-             
                                                                               vice company), 1980-1986. President of Gene          
                                                                               Peters and Associates (import company),              
                                                                               1978-1980. President and Chief Executive             
                                                                               Officer of Jos. Schlitz Brewing Company              
                                                                               before 1978.                                         
------------------------------------------------------------------------------------------------------------------------------------
JAMES M. STOREY                Trustee            (Since 1994)                 Partner, Dechert Price & Rhoads, September           
71 yrs. old                                                                    1987-December 1993.                                  

------------------------------------------------------------------------------------------------------------------------------------

<FN>                                                                                                                                
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 Trust's Declaration of Trust.                          
3  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 registered under the 1940 Act.                                          
</FN>                                                                                                                               

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                                                                  ANALYTIC FUNDS

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Trustees who may be deemed to be "interested"  persons of the Trust as that term
is  defined  in the 1940 Act by virtue  of their  affiliation  with the  Trust's
Distributor.                                                                    

NUMBER OF                                     
FUNDS                                     
IN THE ADVISORS'                                      
INNER CIRCLE FUND                                     
OVERSEEN BY BOARD          OTHER DIRECTORSHIPS        
MEMBER               HELD BY BOARD MEMBER3  
--------------------------------------------------------------------------------

     42              Trustee of The Arbor Funds,
                The MDL Funds, and The
           Expedition Funds.
--------------------------------------------------------------------------------
        42              Member and Treasurer, Board of
                         Trustees of Grove City College.
                     Trustee of The Arbor Funds,
                The MDL Funds, and The
           Expedition Funds.

--------------------------------------------------------------------------------
     42              Trustee of The Arbor Funds,
                The MDL Funds, and The
           Expedition Funds.

--------------------------------------------------------------------------------
     42              Trustee of The Arbor Funds,
                       The MDL Funds, The Expedition
                            Funds, SEI Asset Allocation Trust,
                           SEI Daily Income Trust, SEI Index
                                Funds, SEI Institutional International
                              Trust, SEI Institutional Investments
                                 Trust, SEI Institutional Managed Trust,
                                  SEI Insurance Products Trust, SEI Liquid
                               Asset Trust and SEI Tax Exempt Trust.
--------------------------------------------------------------------------------

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THE ADVISORS' INNER CIRCLE FUND                                                 

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                                                        [Enlarge/Download Table]


 TRUSTEES AND OFFICERS OF THE ADVISORS' INNER CIRCLE FUND (UNAUDITED)                                                               

                                                    TERM OF                                                                         
                              POSITION(S)          OFFICE AND                                                                       
    NAME, ADDRESS,             HELD WITH            LENGTH OF                       PRINCIPAL OCCUPATION(S)                         
         AGE1                 THE TRUST           TIME SERVED2                        DURING PAST 5 YEARS                           
----------------------------------------------------------------------------------------------------------------------------------- 
INDEPENDENT                                                                                                                         
BOARD MEMBERS (CONTINUED)                                                                                                           
-------------------------                                                                                                           

                                                                                                                                    
GEORGE J. SULLIVAN, JR.        Trustee            (Since 1999)               Chief Executive Officer, Newfound                      
60 yrs. old                                                                  Consultants Inc. since April 1997. General             
                                                                             Partner, Teton Partners, L.P., June 1991-              
                                                                             December 1996; Chief Financial Officer,                
                                                                             Nobel Partners, L.P., March 1991-December              
                                                                             1996; Treasurer and Clerk, Peak Asset                  
                                                                             Management, Inc., since 1991.                          

----------------------------------------------------------------------------------------------------------------------------------- 
INTERESTED                                                                                                                          
BOARD MEMBERS                                                                                                                       
-------------                                                                                                                       

ROBERT A. NESHER              Chairman            (Since 1991)               Currently performs various services on behalf          
56 yrs. old                 of the Board                                     of SEI Investments for which Mr. Nesher is             
                             of Trustees                                     compensated. Executive Vice President of SEI           
                                                                             Investments, 1986-1994. Director and                   
                                                                             Executive Vice President of the Administrator          
                                                                             and the Distributor, 1981-1994.                        

----------------------------------------------------------------------------------------------------------------------------------- 
WILLIAM M. DORAN               Trustee            (Since 1992)               Partner, Morgan, Lewis & Bockius LLP                   
1701 Market Street,                                                          (law firm), counsel to the Trust, SEI Investments,     
Philadelphia, PA 19103                                                       the Administrator and the Distributor. Director        
62 yrs. old                                                                  of SEI Investments since 1974; Secretary of            
                                                                             SEI Investments since 1978.                            

----------------------------------------------------------------------------------------------------------------------------------- 

<FN>                                                                                                                                
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 Trust's Declaration of Trust.                          
3  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 registered under the 1940 Act.                                          
</FN>                                                                                                                               

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NUMBER OF                                         
FUNDS                                         
IN THE ADVISORS'                                          
INNER CIRCLE FUND                                         
OVERSEEN BY BOARD          OTHER DIRECTORSHIPS            
MEMBER               HELD BY BOARD MEMBER3      
--------------------------------------------------------------------------------

           42              Trustee, Navigator Securities Lending
                       Trust, since 1995. Trustee of The
                         Fulcrum Trust. Trustee of The Arbor
                       Funds, The MDL Funds, The Expedi-
                             tion Funds, SEI Asset Allocation Trust,
                       SEI Daily Income Trust, SEI Index
                                   Funds, SEI Institutional International Trust,
                          SEI Institutional Investments Trust,
                      SEI Institutional Managed Trust,
                              SEI Insurance Products Trust, SEI Liquid
                           Asset Trust and SEI Tax Exempt Trust.
--------------------------------------------------------------------------------

        42              Trustee of The Arbor Funds, Bishop
                         Street Funds, The Expedition Funds,
                         The MDL Funds, SEI Asset Allocation
                        Trust, SEI Daily Income Trust, SEI
                    Index Funds, SEI Institutional
                            International Trust, SEI Institutional
                          Investments Trust, SEI Institutional
                           Managed Trust, SEI Insurance Products
                       Trust, SEI Liquid Asset Trust and
           SEI Tax Exempt Trust.
--------------------------------------------------------------------------------
     42              Trustee of The Arbor Funds, The
                      MDL Funds, The Expedition Funds,
                           SEI Asset Allocation Trust, SEI Daily
                        Income Trust, SEI Index Funds, SEI
                            Institutional International Trust, SEI
                          Institutional Investments Trust, SEI
                      Institutional Managed Trust, SEI
                          Insurance Products Trust, SEI Liquid
                           Asset Trust and SEI Tax Exempt Trust.
--------------------------------------------------------------------------------

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THE ADVISORS' INNER CIRCLE FUND                                                 

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                                                        [Enlarge/Download Table]

 TRUSTEES AND OFFICERS OF THE ADVISORS' INNER CIRCLE FUND (UNAUDITED)                                                               

                                                    TERM OF                                                                         
                              POSITION(S)          OFFICE AND                                                                       
    NAME, ADDRESS,             HELD WITH            LENGTH OF                       PRINCIPAL OCCUPATION(S)                         
         AGE1                 THE TRUST            TIME SERVED                        DURING PAST 5 YEARS                           
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
OFFICERS                                                                                                                            
--------                                                                                                                            

JAMES R. FOGGO                 President           (Since 2000)               Vice President and Assistant Secretary                
38 yrs. old                                                                   of SEI Investments since 1998; Vice                   
                                                                              President and Assistant Secretary of                  
                                                                              SEI Investments Global Funds Services                 
                                                                              and SEI Investments Distribution Co.                  
                                                                              since 1999; Associate, Paul, Weiss,                   
                                                                              Rifkind, Wharton & Garrison (law firm),               
                                                                              1998.                                                 
------------------------------------------------------------------------------------------------------------------------------------
JENNIFER SPRATLEY, CPA   Controller and Chief      (Since 2001)               Director, SEI Funds Accounting since                  
33 yrs. old                Financial Officer                                  November 1999; Audit Manager, Ernst                   
                                                                              & Young LLP from 1991-1999.                           
------------------------------------------------------------------------------------------------------------------------------------
SHERRY K. VETTERLEIN        Vice President         (Since 2001)               Vice President and Assistant Secretary of             
40 yrs. old                  and Secretary                                    SEI Investments Global Funds Services and             
                                                                              SEI Investments Distribution Co. since                
                                                                              January 2001; Shareholder/Partner,                    
                                                                              Buchanan Ingersoll Professional Corporation           
                                                                              from 1992-2000.                                       
------------------------------------------------------------------------------------------------------------------------------------
TODD B. CIPPERMAN         Vice President and       (Since 1995)               Senior Vice President and General Counsel             
36 yrs. old               Assistant Secretary                                 of SEI Investments; Senior Vice President,            
                                                                              General Counsel and Secretary of SEI                  
                                                                              Investments Global Funds Services and                 
                                                                              SEI Investments Distribution Co. since 2000;          
                                                                              Vice President and Assistant Secretary of SEI         
                                                                              Investments, SEI Global Funds Services and            
                                                                              SEI Investments Distribution Co. from                 
                                                                              1999-2000.                                            
------------------------------------------------------------------------------------------------------------------------------------
<FN>                                                                                                                                
1  The business address of each officer is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.               
</FN>                                                                                                                               

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NUMBER OF                                           
FUNDS                                           
IN THE ADVISORS'                                            
INNER CIRCLE FUND                                           
 OVERSEEN BY BOARD                         OTHER DIRECTORSHIPS
      MEMBER                              HELD BY BOARD MEMBER
--------------------------------------------------------------------------------

N/A                                        N/A

--------------------------------------------------------------------------------
N/A                                        N/A

--------------------------------------------------------------------------------
N/A                                        N/A

--------------------------------------------------------------------------------
N/A                                        N/A

--------------------------------------------------------------------------------

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THE ADVISORS' INNER CIRCLE FUND                                                 

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                                                        [Enlarge/Download Table]

 TRUSTEES AND OFFICERS OF THE ADVISORS' INNER CIRCLE FUND (UNAUDITED)                                                               

                                                    TERM OF                                                                         
                              POSITION(S)          OFFICE AND                                                                       
    NAME, ADDRESS,             HELD WITH            LENGTH OF                       PRINCIPAL OCCUPATION(S)                         
         AGE1                 THE TRUST            TIME SERVED                        DURING PAST 5 YEARS                           
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS (CONTINUED)                                                                                                                
--------------------                                                                                                                

                                                                                                                                    
LYDIA A. GAVALIS          Vice President and      (Since 1998)               Vice President and Assistant Secretary                 
38 yrs. old               Assistant Secretary                                of SEI Investments, SEI Investments                    
                                                                             Global Funds Services and SEI Investments              
                                                                             Distribution Co. since 1998; Assistant                 
                                                                             General Counsel and Director of Arbitration,           
                                                                             Philadelphia Stock Exchange from 1989-1998.            
------------------------------------------------------------------------------------------------------------------------------------
TIMOTHY D. BARTO       Assistant Vice President   (Since 2000)               Vice President and Assistant Secretary of SEI          
34 yrs. old             and Assistant Secretary                              Investments Global Funds Services and SEI              
                                                                             Investments Distribution Co. since 1999;               
                                                                             Associate, Dechert (law firm) from 1997-1999;          
                                                                             Associate, Richter, Miller & Finn (law firm)           
                                                                             from 1994-1997.                                        
------------------------------------------------------------------------------------------------------------------------------------
WILLIAM E. ZITELLI     Assistant Vice President   (Since 2000)               Vice President and Assistant Secretary of              
34 yrs. old                  and Secretary                                   SEI Investments Global Funds Services and              
                                                                             SEI Investments Distribution Co. since 2000;           
                                                                             Vice President, Merrill Lynch & Co. Asset              
                                                                             Management Group from 1998 - 2000; Associate           
                                                                             at Pepper Hamilton LLP from 1997-1998.                 
------------------------------------------------------------------------------------------------------------------------------------
CHRISTINE M.              Vice President and      (Since 2000)               Vice President and Assistant Secretary of SEI          
MCCULLOUGH                Assistant Secretary                                Investments Global Funds Services and SEI              
42 yrs. old                                                                  Investments Distribution Co. since 1999;               
                                                                             Associate at White and Williams LLP                    
                                                                             from 1991-1999.                                        
------------------------------------------------------------------------------------------------------------------------------------
JOHN C. MUNCH             Vice President and      (Since 2001)               Vice President and Assistant Secretary of SEI          
31 yrs. old               Assistant Secretary                                Investments Global Funds Services and SEI              
                                                                             Investments Distribution Co. since 2001;               
                                                                             Associate at Howard Rice Nemorvoski                    
                                                                             Canady Falk & Rabkin from 1998-2001;                   
                                                                             Associate at Seward & Kissel from 1996-1998.           
------------------------------------------------------------------------------------------------------------------------------------
<FN>                                                                                                                                
1 The business address of each officer is SEI Investments Company, 1 Freedom Valley Drive, Oaks, Pennsylvania 19456.                
</FN>                                                                                                                               

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NUMBER OF                                   
FUNDS                                   
IN THE ADVISORS'                                    
INNER CIRCLE FUND                                   
         OVERSEEN BY BOARD                         OTHER DIRECTORSHIPS
              MEMBER                              HELD BY BOARD MEMBER
--------------------------------------------------------------------------------

       N/A                                       N/A

--------------------------------------------------------------------------------
       N/A                                       N/A

--------------------------------------------------------------------------------
       N/A                                       N/A

--------------------------------------------------------------------------------
       N/A                                       N/A

--------------------------------------------------------------------------------
       N/A                                       N/A

--------------------------------------------------------------------------------

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THE ADVISORS' INNER CIRCLE FUND                                   ANALYTIC FUNDS

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SHAREHOLDER VOTING RESULTS (UNAUDITED)                                        
     A special  meeting of the  shareholders of UAM Analytic  Defensive  Equity,
Analytic  Short-Term Income, and Analytic  International Funds (the "UAM Funds")
was held on June 7, 2002 to vote on the following matter:                       

PROPOSAL                                                              
     To approve (i) the transfer of all of the assets and all of the liabilities
     of the UAM Funds to a  corresponding  series of The Advisors'  Inner Circle
     Fund (the "AIC Trust") in exchange for certain shares of such series of the
     AIC Trust  (each an "AIC  Fund") as set forth in an  Agreement  and Plan of
     Reorganization  and Liquidation  dated February 20, 2002 between UAM Funds,
     Inc. II and AIC Trust;  (ii) the distribution of shares of each AIC Fund so
     received  to the  shareholders  of the  corresponding  UAM Fund;  (iii) the
     transfer all of the assets and all of the liabilities of UAM Funds, Inc. II
     to the AIC Trust; and (iv) the subsequent dissolution of UAM Funds, Inc. II
under Maryland law.                                                   

ANALYTIC DEFENSIVE EQUITY FUND                                                  

              SHARES VOTED      % OF SHARES VOTED      % OF SHARES OUTSTANDING
              --------------    -------------------    -------------------------
FOR             2,037,105              91.32%                   52.90%          
AGAINST            94,229               4.22                     2.44           
ABSTAIN            99,388               4.45                     2.58           

ANALYTIC SHORT-TERM INCOME FUND                                                 

              SHARES VOTED      % OF SHARES VOTED      % OF SHARES OUTSTANDING
              --------------    -------------------    -------------------------
FOR               229,910              99.85%                   56.51%          
AGAINST               334               0.14                     0.08           
ABSTAIN                --                 --                       --           

ANALYTIC INTERNATIONAL FUND                                                     

              SHARES VOTED      % OF SHARES VOTED      % OF SHARES OUTSTANDING
              --------------    -------------------    -------------------------
FOR               335,038              96.29%                   57.95%          
AGAINST             2,750               0.79                     0.47           
ABSTAIN            10,144               2.91                     1.75           

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THE ADVISORS' INNER CIRCLE FUND                                   ANALYTIC FUNDS

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NOTICE TO SHAREHOLDERS (UNAUDITED)                                            

For the calendar year ended December 31, 2002, 100% of the dividends qualify for
dividend received deduction for corporate shareholders of the Analytic Defensive
Equity Fund.                                                                    

For the calendar year ended  December 31, 2002,  the percentage of income earned
from direct U.S.  government  obligations for Analytic Funds - Defensive Equity,
Short-Term Income and International was 1.17%, 98.57% and 4.20% respectively.   

The  International  Fund  elected to pass  through  foreign  tax  credits to its
shareholders.  The  amount of  foreign  tax credit as of  December  31,  2002 is
$12,841.                                                                        

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THE ANALYTIC FUNDS
 P.O. Box 219009
Kansas City, MO 64121-9009
 (toll free)
1-866-777-7818

 INVESTMENT ADVISER:
Analytic Investors, Inc.
 700 South Flower Street
Suite 2400
 Los Angeles, CA 90017

DISTRIBUTOR:
SEI Investments Distribution Co.
Oaks, PA 19456

ADMINISTRATOR:
 SEI Investments Global Funds Services
Oaks, PA 19456

LEGAL COUNSEL:
 Morgan, Lewis & Bockius LLP
1111 Pennsylvania Ave., N.W.
Washington, DC 20004

This information must be preceded or accompanied by a current prospectus
for the Funds described.

ANA-AR-001-0100                                                                 

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘N-30D’ Filing		Date		First		Last			Other Filings
		12/31/03		33					24F-2NT,  N-CSR,  NSAR-B
Filed on / Effective on:		2/28/03							485APOS,  485BPOS
		2/11/03		38
For Period End:		12/31/02		1		48			N-30D,  NSAR-B
		11/1/02		36					485APOS
		6/24/02		30		37
		6/23/02		37
		6/7/02		30		47
		2/20/02		47
		12/31/01		26		28
		11/1/01		37
		4/1/01		33		37
		8/31/98		27
		7/27/98		28
		2/18/97		30
									List all Filings