SHAREHOLDER LETTER
We are pleased to bring you the annual report of the Purisima Funds for the
one-year period ended August 31, 1998. During the reporting period, we continued
to pursue our investment objective of seeking a high level of total return for
our shareholders. Our investment strategy for the Fund helped generate a
one-year, net total return of 5.26%, beating the 3.74% total return of our
benchmark, the MSCI world index, which is a global index that tracks the stocks
of developed economies the Fund may invest in, including the stocks in the S&P
500.
ECONOMIC UPDATE
The biggest event for American investors, during the reporting period was the
August drop in the U.S. stock market. Typically the stock market experiences a
correction about once a year. The S&P 500 fell almost twenty percent in August,
while the Russell 2000 small cap index dropped over thirty percent from its high
earlier in the year. Yet America's economy appears to still be healthy. The
dollar and U.S. bond market both stayed strong, and interest rates remained low,
while economic growth continued. We currently don't expect the market to slip
into a lengthy bear market. At the time of this report, however, we're waiting
for U.S. stocks to recover before we decide whether this is a correction or bear
market. Whichever it is, we expect the market to first recover, before it goes
higher or drops again, and we plan on benefiting from that bounce up. Bear
markets historically fall an average of 2% a month. If they drop faster than
this they soon bounce back, so even if this is a bear market we believe we can
wait for that bounce, benefit from a rise in stocks and then decide our
investment strategy when newer market information is available.
PORTFOLIO UPDATE
We believe this recent drop in the stock market validates our global and super
cap investment strategies. Although there was continued turmoil in developing
markets, like Russia and several Asian nations, the Fund does not invest in
small, developing economies. Many of the large, foreign, developed markets we do
invest in performed better than the U.S. in August, helping the fund's
performance. Also, big cap U.S. stocks have shown themselves to be superior to
small caps, over the past twelve months. Not only have they risen higher, but
when the market fell, large caps held up much better than small. We've been
saying for a while that in the last two-thirds of a bull market and beginning of
a bear market you want to own the biggest of big stocks. Although at this time,
we believe the market drop was a monster correction and not the beginning of a
bear market, the fall supported our argument that large caps rise higher and
don't fall as far, as small caps, at this point in the market's cycle. Please
remember, however, the opinions expressed in this report are for the twelve
months ended August 31, 1998 and
Note: The Purisima Total Return Fund (The "Fund"), constitutes the initial
series of the Purisima Funds (the "Trust"). may change with market conditions.
In addition to this report you'll also receive quarterly newsletters with
economic and portfolio commentary, allowing you to better follow your
investments. As always, we appreciate your continued support and look forward to
serving your investment needs in the future.
Sincerely,
Kenneth L. Fisher
Chairman and Chief Executive Officer
Fisher Investments, Inc.
<PAGE>
PORTFOLIO
SUMMARY
PERIODS ENDED 8/31/98
ONE-YEAR SINCE INCEPTION
(10/28/96)
Cumulative
Total Return(1) 5.26% 24.94%
Average Annual 12.86%
Total Return(2)
(1) Cumulative total return measures the change in value of an investment over
the periods indicated and includes all fund expense fees.
(2) Average annual total return represents the average annual change in value
of an investment over the periods indicated and includes all fund expense
fees. Average annual total return and cumulative total return for the
one-year period would be identical.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
<PAGE>
PURISIMA CUMULATIVE TOTAL RETURN VERSUS MSCI WORLD INDEX
$10,000 INVESTED FROM INCEPTION ON 10/28/96 TO 8/31/98*
PURISIMA MSCI
TOTAL RETURN WORLD INDEX
OCTOBER 96 10,000 10,000
DECEMBER 96 10,100 10,425
FEBRUARY 97 10,480 10,669
APRIL 97 10,860 10,796
JUNE 97 12,200 12,029
AUGUST 97 11,870 11,738
OCTOBER 97 11,910 11,720
DECEMBER 97 12,384 12,069
FEBRUARY 98 13,576 13,241
APRIL 98 14,709 13,930
JUNE 98 14,928 14,078
AUGUST 98 12,494 12,177
*The Morgan Stanley MSCI World is a global stock index comprised of countries,
such as the U.S., where the Purisima Funds may invest. Purisima Total Return
includes all expenses. Past performance is not predictive of future results.
<PAGE>
PURISIMA TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
AUGUST 31, 1998
% OF MARKET
SHARES NET ASSETS VALUE
- -------- COMMON STOCK ---------- -----------
AUTOMOBILE 5.3%
3,300 Daimler - Benz AG - ADR $280,500
19,040 Fiat SPA - ADR 290,360
8,100 Ford Motor Co. 356,400
1,000 General Motors Corp. 57,750
5,700 Volvo AB - ADR 153,187
-----------
1,138,197
-----------
BANKING 11.5%
18,200 Banco Bilbao Vizcaya - ADR 228,638
49,650 Bank of Tokyo - Mitsubishi - ADR 335,138
2,400 Bankamerica Corp. 153,750
6,800 Chase Manhattan Corp. 360,400
3,900 Citicorp 421,688
14,600 Espirito Santo Finl - ADR 240,900
5,500 Istitu Mobiliare Ital - ADR 246,125
3,900 Nationsbank Corp. 222,300
2,800 Nat'l Australia Bank - ADR 170,275
3,800 WestPac Banking - ADR 99,038
-----------
2,478,252
-----------
CHEMICALS 4.1%
7,100 Dupont De Nemours & Co. 409,581
6,200 Hoechst Ag Sponsored ADR 245,287
6,800 Norsk Hydro A/S - ADR 233,750
-----------
888,618
-----------
COMMUNICATION EQUIPMENT 4.5%
5,600 Alcatel Alsthom - ADR 169,050
5,200 Ericsson (LM) Tel. - ADR 111,475
5,700 Lucent Technologies, Inc. 403,988
4,200 Nokia Corp. - ADR A 280,613
-----------
965,126
-----------
COMPUTER COMPONENTS & SOFTWARE 5.0%
4,875 Cisco Systems, Inc.* 399,141
4,700 Microsoft Corp.* 450,906
6,500 NEC Corp. - ADR 232,375
-----------
1,082,422
-----------
COMPUTERS 3.1%
4,100 Hewlett-Packard Co. 199,106
4,100 IBM Corp. 461,762
-----------
660,868
-----------
CONSUMER PRODUCTS 3.0%
5,900 Coca-Cola Co. $384,238
9,050 Pepsico, Inc. 250,572
-----------
634,810
-----------
COSMETICS AND TOILETRIES 0.4%
2,300 Gillette Co. 94,587
-----------
ELECTRIC UTILITIES 0.7%
8,300 Endesa S.A. - ADR 149,400
-----------
<PAGE>
PURISIMA TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
AUGUST 31, 1998
% OF MARKET
SHARES NET ASSETS VALUE
- --------- COMMON STOCK ---------- -----------
ELECTRICAL EQUIPMENT 6.2%
1,700 ABB AB - ADR 180,200
6,300 General Electric Co. 504,000
8,050 Hitachi Ltd - ADR 397,469
4,250 Philips Electronics 254,734
-----------
1,336,403
-----------
ENTERTAINMENT 1.7%
13,100 The Walt Disney Co. 359,431
-----------
FINANCIAL SERVICES 1.5%
2,800 Federal National Mortgage Association 159,075
2,800 ING Group N. V. 152,600
-----------
311,675
-----------
FOOD 1.1%
3,600 Unilever N.V. 228,150
-----------
GOLD & SILVER 1.8%
16,500 Agnico-Eagle Mines, Ltd 45,375
7,800 Ashanti Goldfields - GDR 48,750
15,700 Battle Mountain Gold Co. 48,081
9,200 Coeur D'Alene Mines* 37,375
37,000 Echo Bay Mines, Ltd 57,812
8,200 Homestake Mining Co. 72,775
28,814 Kinross Gold Corp.* 52,225
75,000 Royal Oak Mines, Ltd* 32,813
-----------
395,206
-----------
HOUSEHOLD PRODUCTS 2.3%
6,500 Procter & Gamble Co. 497,250
-----------
HOUSEHOLD AUDIO & VIDEO EQUIPMENT 1.4%
4,100 Sony Corp. - ADR 289,819
-----------
INSURANCE 2.0%
200 Aegon N.V. - ADR 17,100
4,537 American Int'l Group 350,767
1,200 Axa SA - ADR 65,175
-----------
433,042
-----------
OIL & GAS 6.1%
3,300 Elf Aquitaine - ADR 161,288
7,900 Exxon Corp. 516,956
1,000 Mobil Corp. 69,125
4,200 Repsol SA - ADR 184,538
3,800 Royal Dutch Petroleum 151,050
4,950 Total SA - ADR 237,909
-----------
1,320,866
-----------
<PAGE>
PURISIMA TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
AUGUST 31, 1998
% OF MARKET
SHARES NET ASSETS VALUE
- --------- COMMON STOCK ---------- -----------
PHARMACEUTICALS 15.9%
5,100 Abbott Laboratories 196,350
6,600 American Home Products 330,825
18,900 Astra AB - ADR - A 304,762
4,100 Bristol-Myers Squibb Co. 401,287
6,300 Johnson & Johnson 434,700
4,600 Lilly (Eli) & Co. 301,300
4,550 Merck & Co., Inc. 527,516
200 Novartis AG - ADR 15,550
3,200 Novo-Nordisk A/S- ADR 214,200
5,000 Pfizer, Inc. 465,000
4,800 Rhone - Poulenc SA - ADR 220,800
-----------
3,412,290
-----------
PHOTOGRAPHY 1.3%
8,700 Fuji Photo Film - ADR 282,750
-----------
PUBLISHING AND PRINTING 1.4%
155 Berkshire Hathaway Inc-B* 311,240
-----------
RADIO & TV BROADCASTING EQUIPMENT 1.0%
1,500 Matsushita Electric Industrial Co., Ltd 205,969
-----------
RETAIL 2.5%
9,200 Wal-Mart Stores, Inc. 540,500
-----------
SEMI-CONDUCTORS 2.3%
6,500 Intel Corp. 462,719
600 ST Microelectronics NV* 31,312
-----------
494,031
-----------
TELECOMMUNICATIONS 12.2%
8,650 AT&T Corp. 433,581
10,200 Bell Atlantic Corp. 450,075
6,100 Bellsouth Corp. 418,231
10,900 Deutsche Telekom - ADR 261,600
6,400 Portugal Telecom SA 266,000
12,800 SBC Communications Inc. 486,400
2,500 Tele Danmark A/S - ADR 128,750
200 Telecom Italia Spa - ADR 14,450
1,400 Telefonica De Espana - ADR 152,775
-----------
2,611,862
-----------
TOBACCO PRODUCTS 1.8%
9,150 Philip Morris Cos., Inc. 380,297
-----------
TOTAL COMMON STOCKS
(cost $23,244,664) 21,503,061
-----------
SHORT-TERM INVESTMENTS 1.7%
UMB Bank, n.a.
Money Market Fiduciary 372,909
-----------
TOTAL INVESTMENTS 101.8% 21,875,970
-----------
(COST $23,617,573 )
LIABILITIES, LESS
OTHER ASSETS -1.8% -397,001
-----------
NET ASSETS 100.0% $21,478,969
============
ADR - American Depository Receipt
GDR - Global Depository Receipt
* Non-income producing security
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
PURISIMA TOTAL RETURN FUND
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1998
ASSETS:
Investments at market value $21,875,970
(cost of $23,617,573)
Deferred organizational costs, net 84,414
Receivable for sale of Fund's shares 22,177
Dividends and interest receivable 22,575
Prepaid expenses 25,608
- -------------------------------------------------------------------------------
Total Assets 22,030,744
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased 319,524
Payable for redemptions of Fund's shares 132,140
Payable to adviser 65,757
Other accrued expenses 34,354
- -------------------------------------------------------------------------------
Total Liabilities 551,775
- -------------------------------------------------------------------------------
NET ASSETS $21,478,969
===============================================================================
COMPOSITION OF NET ASSETS
Capital stock $23,291,582
Undistributed net investment income 25,113
Accumulated net realized loss on investments (96,123)
Net unrealized depreciation on investments (1,741,603)
- -------------------------------------------------------------------------------
Net Assets $21,478,969
===============================================================================
Number of shares issued and outstanding
($.01 par value, unlimited shares authorized) 1,722,463
Net Asset Value Per Share $12.47
===============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
PURISIMA TOTAL RETURN FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1998
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $32,241) $213,329
Interest 15,862
- ------------------------------------------------------------------------------
229,191
EXPENSES:
Investment advisory 128,907
Administration 40,000
Federal and state registration 26,851
Amortization of organizational costs 26,663
Fund accounting 18,495
Distribution 32,227
Transfer agent 18,681
Legal 16,500
Auditing and tax 15,900
Trustees 5,508
Custody 8,233
Other 12,700
- ------------------------------------------------------------------------------
Total expenses before reimbursement 350,665
Less: reimbursement of expenses by adviser (157,282)
- ------------------------------------------------------------------------------
Net Expenses 193,383
NET INVESTMENT INCOME 35,808
- ------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investments (95,395)
Change in unrealized depreciation on investments (1,747,710)
- ------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS (1,843,105)
- ------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ($1,807,297)
==============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
PURISIMA TOTAL RETURN FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Year October 28,
Ended 1996* to
August 31, August, 31
1998 1997
------------ -----------
OPERATIONS
Net investment income $35,808 $5,305
Net realized loss on investments (95,395) (728)
Change in unrealized appreciation (depreciation)
on investments (1,747,710) 6,107
- --------------------------------------------------------------------------------
Increase (decrease) in net assets resulting
from operations (1,807,297) 10,684
- --------------------------------------------------------------------------------
DISTRIBUTION TO SHAREHOLDERS
From net investment income (16,000) -
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 21,195,120 4,162,372
Proceeds from shares issued in reinvestment
of net investment income dividends 15,952 -
Cost of shares redeemed (2,144,750) (37,112)
- --------------------------------------------------------------------------------
Net increase from capital share transactions 19,066,322 4,125,260
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 17,243,025 4,135,944
NET ASSETS
Beginning of period 4,235,944 100,000
- --------------------------------------------------------------------------------
End of period (including undistributed net
investment income of $25,113 and $5,305,
respectively) $21,478,969 $4,235,944)
================================================================================
CHANGES IN SHARES
Shares sold 1,514,495 350,497
Shares issued on reinvestment of distributions 1,291 -
Shares redeemed (150,179) (3,641)
- --------------------------------------------------------------------------------
NET INCREASE 1,365,607 346,856
================================================================================
*COMMENCEMENT OF OPERATIONS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
PURISIMA TOTAL RETURN FUND
FINANCIAL HIGHLIGHTS
For the Year October 28,
Ended 1996* to
August 31, August 31,
For a share outstanding throughout the period. 1998 1997
------------ -----------
NET ASSET VALUE, BEGINNING OF PERIOD $11.87 $10.00
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.02
Net Realized and Unrealized Gains
on Investments 0.60 1.85
- -------------------------------------------------------------------------------
Total from Investment Operations 0.62 1.87
- -------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from Net Investment Income (0.02) -
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.47 $11.87
===============================================================================
Total Return 5.26% 18.70% +
Net Assets at End of Period ('000) $21,479 $4,236
Ratio of Expenses to Average Net Assets
Before Expense Reimbursement 2.71% 20.97%++
After Expense Reimbursement 1.50% 1.50%++
Ratio of Net Investment Income to Average
Net Assets (Net of Expense Reimbursement) 0.28% 0.56%++
Portfolio Turnover Rate 15.89% 1.35% +
- ------------------------------------
+ NOT ANNUALIZED
++ ANNUALIZED
* COMMENCEMENT OF OPERATIONS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
<PAGE>
PURISIMA TOTAL RETURN FUND
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1998
(1) ORGANIZATION
The Purisima Funds (the "Trust"), was organized as a Delaware business
trust on June 27, 1996 and is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company issuing its shares in series, each series
representing a distinct portfolio with its own investment objectives
and policies. The Trust consists of three separate diversified series:
Purisima Total Return Fund (the "Fund"), constituting the initial
series of the Trust, organized on October 28, 1996, and Purisima Pure
American Fund and Purisima Pure Foreign Fund, which both commenced
operations on September 29, 1998, and are not covered by this report.
The investment objective of the Fund is as follows:
The Fund seeks to produce a high level of total return. The Fund
invests primarily in common stocks and other equity-type securities, or
securities acquired primarily to produce income, or a combination of
both, depending on the assessment of market conditions by the Fund's
investment adviser.
Fisher Investments, Inc. (the "Adviser") serves as the investment
adviser to the Fund.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements. These policies are in conformity with generally accepted
accounting principles ("GAAP"). The presentation of financial
statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
(a) Investment Valuation
Securities which are traded on a recognized stock exchange are
valued at the last sale price on the securities exchange on
which such securities are traded. Securities traded on
over-the-counter markets are valued on the basis of closing
over-the-counter trade prices. Securities for which there were
no transactions are valued at the closing bid prices.
Short-term investments are valued at cost.
<PAGE>
PURISIMA TOTAL RETURN FUND
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1998
(b) Organization Costs
Costs incurred by the Fund in connection with its
organization, registration and the initial public offering of
shares totaling $133,629, have been deferred and will be
amortized over 5 years. If any of the original shares of the
Fund are redeemed by any holder thereof prior to the end of
the amortization period, the redemption proceeds will be
reduced by the pro rata share of the unamortized expenses as
of the date of redemption. The pro rata share by which the
proceeds are reduced will be derived by dividing the number of
original shares outstanding at the time of redemption. The
Adviser advanced the organization costs discussed above. As of
August 31, 1998, the balance payable to the Adviser for
organization costs was $51,294.
(c) Federal Income and Excise Taxes
The Fund has elected and qualified and intends to continue to
qualify to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all investment company net taxable income and
net capital gains to shareholders in a manner which results in
no tax cost to the Fund. Therefore, no federal income or
excise tax provision is required.
(d) Distribution to Shareholders
Dividends from net investment income will be declared and paid
annually. Distributions of net realized gains, if any, will be
declared at least annually. Distributions to shareholders are
recorded on the ex-dividend date. The Fund periodically makes
reclassifications among certain of its capital accounts as a
result of the recognition and characterization of certain
income and capital gain distributions determined annually in
accordance with federal tax regulations which may differ from
generally accepted accounting principles. As of August 31,
1998, the Fund had available for federal income tax purposes
an unused capital loss carryover of $2,350, which will begin
to expire in 2005. In addition, the Fund had a post October
loss of $93,773, which will be deferred until September 1,
1998 for tax purposes.
(e) Other
Investment transactions are accounted for on the trade date.
The Fund determines the gain or loss realized from investment
transactions by comparing the original cost of the security
lot sold with the net sale proceeds. Dividend income is
recognized on the ex-dividend date and interest income is
recognized on an accrual basis.
(3) INVESTMENT ADVISER
The Fund has an Investment Management Agreement with the Adviser, with
which certain officers and trustees of the Fund are affiliated, to
furnish investment advisory services to the
<PAGE>
PURISIMA TOTAL RETURN FUND
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1998
Fund. Under the terms of this agreement, the Fund will pay the Adviser
a monthly fee at the annual rate of 1.00% of the Fund's average daily
net assets. The Adviser has agreed to voluntarily reduce fees for
expenses (exclusive of brokerage, interest, taxes and extraordinary
expenses) that exceed the expense limitation of 1.50% of the Fund's
average daily net assets. During the year ended August 31, 1998, the
Adviser reimbursed $157,282 of expenses during the year ended 1998 and
$183,285 in 1997. The Investment Management Agreement permits the
Adviser to seek reimbursement of any reductions made to its management
fee and payments made to limit expenses which are the responsibility of
the Fund within the three-year period following such reduction, to the
extent approved by the Trust's disinterested Trustees, subject to the
Fund's ability to effect such reimbursement and remain in compliance
with applicable expense limitations. At such time as it appears
probable that the Adviser will seek such reimbursement, the amount of
reimbursement that the Fund is able to effect will be accrued as an
expense of the Fund for that current period. As of August 31, 1998, no
fees were reclaimed in 1998.
(4) SERVICE AND DISTRIBUTION PLAN
Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a
Service and Distribution Plan (the "Plan"). Under the Plan, the Fund is
authorized to pay expenses incurred for the purpose of financing
activities, including the employment of other dealers, intended to
result in the sale of shares of the Fund at an annual rate of up to
0.25% of the Fund's average daily net assets.
(5) INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the year ended August 31, 1998 is
summarized below:
Purchases $21,253,021
Sales $ 1,998,603
At August 31, 1998, gross unrealized appreciation and depreciation of
investments, based on cost for the federal income tax purposes of
$23,617,573 were as follows:
Appreciation $ 780,600
Depreciation (2,522,203)
------------
Net depreciation on investments $(1,741,603)
============
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of the Purisima Total Return Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, 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 the Purisima Total Return Fund (the
"Fund", constituting the initial series of The Purisima Funds) at August 31,
1998, the results of its operations for the year then ended, the changes in its
net assets and the financial highlights for the year then ended and for the
period October 28, 1996 (inception) to August 31, 1997, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund'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 generally accepted
auditing standards 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 August 31, 1998 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Los Angeles, California
September 29, 1998
