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SEC 30-day yield as of 3/31/96: 4.78%
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THE AVERAGE ANNUAL COMPOUND TOTAL RETURN:
One Year (as of 3/31/96) 6.82%
Five Year (as of 3/31/96) 7.38%
Ten Year (as of 3/31/96) 6.88%
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7. WHO IS THE INVESTMENT ADVISER?
Bank of America NT&SA, the investment adviser, and its affiliates have
over $50 billion in assets under management, including over $10 billion
in mutual funds.
8. HOW CAN I PURCHASE SHARES?
Complete the application in the Prospectus enclosed and attach a check
for as little as $500 ($200 for BankAmericard holders with an
appropriate award certificate from BankAmeriChoice Program), or $50 per
month with automatic investment.
9. HOW CAN I REDEEM SHARES?
Redemptions can be made by sending a written request to the California
Tax-Exempt Bond Fund, c/o Pacific Horizon Funds, Inc., P.O. Box 80221,
Los Angeles, California 90080-9909, by writing a check on the account,
or by requesting a wire. The minimum for a wire redemption is $1,000.
10. HOW OFTEN ARE DISTRIBUTIONS MADE?
Dividends are declared daily and paid monthly. You can have your
distributions sent to you directly, or you can have the dividends
reinvested in the Fund to increase your holdings.
11. WHAT OTHER SERVICES ARE AVAILABLE?
Pacific Horizon Funds, Inc. provides a whole host of services to better
serve shareholders including fund performance reporting, automated
investment and withdrawal plans. Please call for information on the
entire family of Pacific Horizon Funds by dialing 1-800-332-3863.
THIS FUND PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS
APPEAR IN THE FUND'S ACCOMPANYING PROSPECTUS.
COPCATEPROF
CALIFORNIA TAX-EXEMPT
BOND FUND
FUND PROFILE
APRIL 1, 1996
NOT FDIC INSURED
BANK OF AMERICA, NT&SA
INVESTMENT ADVISER
CONCORD FINANCIAL GROUP, INC.,
DISTRIBUTOR, MEMBER NASD
PACIFIC HORIZON MUTUAL FUNDS
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INFORMATION SUMMARY
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks to provide as high a level of current interest income free from
Federal and California state personal income tax as is consistent with prudent
investment management and preservation of capital.
2. IN WHAT DOES THE FUND INVEST?
The Fund invests in a diversified portfolio of mainly investment grade
tax-exempt obligations and notes issued by California and other states or
territories of the U.S. By maintaining high credit quality standards, the Fund
seeks to minimize risk while maximizing yields.
3. WHAT ARE THE RISKS?
The Fund's concentration in obligations of California governmental issuers
presents greater risks than investing in a less geographically concentrated
investment portfolio. Economic factors such as reduction in defense spending, a
decline in tourism and high levels of unemployment have had an adverse effect on
the California economy. These factors affect the ability of governmental
entities to repay debt.
4. IS THE FUND APPROPRIATE FOR ME?
This Fund is appropriate for investors who seek moderate returns, have the
capacity to absorb minor fluctuations in their investment, and who seek
after-tax income that may be higher than many taxable bond funds.
5. WHAT ARE THE FEES OR EXPENSES?
A maximum Front-End Sales Load of 4.5% is a shareholder transaction expense
charged on the initial investment into the Fund unless an exemption is otherwise
provided. No fees will be charged for reinvested dividends, exchanges between
other Pacific Horizon funds or redemptions from the Fund. Additionally there are
no 12b-1 fees. The operating expenses, as a percentage of average net assets,
charged directly by the Fund are described in the fee table below.
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SHAREHOLDER TRANSACTION EXPENSE
Maximum Sales Load on Purchases 4.50%
Sales Load on Reinvested Dividends None
Deferred Sales Load None
Redemption and Exchange Fees None
ESTIMATED ANNUAL OPERATING EXPENSES
(as a percentage of Average Net Assets)
Management Fees 0.50%
All other Expenses
Shareholder Servicing Payments 0.25%
Other Expenses 0.20%
Total Other Expenses 0.45%
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Total Fund Operating Expenses 0.95%
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Management fees include fee waivers. Without fee waivers management fees would
be 0.70%. Total Operating expenses without waivers would equal 1.15%.
EXAMPLE
You would pay the following expenses on a $1,000 investment, assuming (1) a 5%
annual return and (2) redemption at the end of each time period:
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1 YR 3 YR 5 YR 10 YR
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<S> <C> <C> <C>
$ 54 $ 74 $ 95 $ 156
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Note: The preceding example should not be considered a representation of past or
future investment returns and operating expenses. Actual investment returns and
operating expenses may be more or less than those shown.
6. THE FOLLOWING IS A BAR GRAPH THAT SHOWS THE PERFORMANCE OF THE FUND OVER THE
PAST TEN (10) CALENDAR YEARS:
86 87 88 89 90 91 92 93 94 95
18.5% (1.4)% 8.7% 9.3% 6.2% 11.1% 8.6% 12.5% (6.1)% 16.5%
Past performance is no guarantee of future results. The total return figures
presented above do not reflect the maximum 4.5% sales load.
