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SEC 30-day yield as of 3/31/96: 3.49%
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THE AVERAGE ANNUAL COMPOUND TOTAL RETURN:
One Year (as of 3/31/96) 25.05%
Five Year (as of 3/31/96) 16.73%
Since Inception (9/25/87 to
12/31/95) 14.43%
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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 Capital
Income Fund, c/o Pacific Horizon Funds, Inc., P.O. Box 80221, Los
Angeles, California 90080-9909, or by requesting a wire. The minimum for
a wire redemption is $1,000.
10. HOW OFTEN ARE DISTRIBUTIONS MADE?
Dividends are declared and paid quarterly. 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, and retirement 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.
COPCAPNPROF
CAPITAL INCOME 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 total investment return comprised of capital appreciation and
current income consistent with prudent investment risk.
2. IN WHAT DOES THE FUND INVEST?
The Fund invests in a diversified portfolio of convertible bonds and preferred
stock ("Convertible Stock"). This Fund maintains at least a 65% position in
convertible securities. To further maximize performance the Fund also invests in
common stocks and cash equivalents. Securities are selected primarily for
capital appreciation with yield as a secondary objective.
3. WHAT ARE THE RISKS?
While any investment carries some risk, the risk of loss through default is
greater with lower-rated convertible securities than with investment grade
securities because these lower rated securities are often unsecured and
subordinate to an issuers other obligations. Consequently, the market price of
these securities and the net asset value of the Fund's shares may be quite
volatile.
4. IS THE FUND APPROPRIATE FOR ME?
This Fund is appropriate for investors who seek to capture higher growth than
offered by bonds alone, have the capacity to absorb minor fluctuations in their
investment, and want a balance of growth and income with moderate returns. This
Fund will provide investors with returns comprised of current income and capital
appreciation with prudent investment risk.
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 Fees & Exchange None
ESTIMATED ANNUAL OPERATING EXPENSES
(as a % of Average Net Assets)
Management Fees 0.65%
All other Expenses
Shareholder Servicing Payments 0.25%
Other Expenses 0.39%
Total Other Expenses 0.64%
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Total Fund Operating Expenses 1.29%
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The above expenses represent full fees charged to the Fund without waivers. The
investment adviser and administrator may voluntarily waive a portion of their
respective fees from time to time.
EXAMPLE
You would pay the following expenses on a $1,000 investment, assuming (1) a 5%
annual return and (2) redemption at the end of each time period:
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1 YR 3 YR 5 YR 10 YR
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$ 58 $ 84 $113 $ 194
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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 FOR THE
PAST SEVEN CALENDAR YEARS:
89 90 91 92 93 94 95
27.9% (4.3)% 38.2% 21.4% 22.7% (5.9)% 24.1%
Past performance is no guarantee of future results. The total return figures
presented above do not reflect the maximum 4.5% sales load.
