<PAGE> 1
[PACIFICA LOGO]
PACIFICA EQUITY VALUE FUND
PACIFICA GROWTH FUND
PACIFICA BALANCED FUND
SEMI-ANNUAL REPORT
MARCH 31, 1996
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, FIRST INTERSTATE, WELLS FARGO OR ANY OTHER BANK, AND ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. MUTUAL FUND SHARES INVOLVE CERTAIN
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
<PAGE> 2
[PACIFICA LOGO] P A C I F I C A
- --------------------------------------------------------------------------------
May 17, 1996
Dear Shareholder:
We are pleased to present the March 31, 1996 Semi-Annual Report for the
Pacifica Funds. This report includes unaudited financial statements, as well as
a six-month look back at the economic factors which influenced the Funds'
performance and our expectations for the remainder of this fiscal year.
FIRST INTERSTATE AND WELLS FARGO
On April 1, 1996, First Interstate Bancorp merged into Wells Fargo &
Company ("Wells Fargo"). As a result of this merger, First Interstate Capital
Management, Inc. ("FICM"), the investment advisor to the Pacifica Funds, became
a wholly owned subsidiary of Wells Fargo. Subsequently, FICM was renamed Wells
Fargo Investment Management, Inc. ("WFIM").
By law, the merger of First Interstate Bancorp into Wells Fargo resulted in
the automatic termination of the then current advisory agreements with FICM. You
may have already received, or will shortly be receiving, a proxy/prospectus that
describes proposed replacement advisory agreements with WFIM. The
proxy/prospectus also describes a proposed reorganization of each Pacifica Fund
into a corresponding portfolio of Stagecoach Funds, Inc., an open-end investment
company advised by Wells Fargo Bank, N.A., which is also a wholly owned
subsidiary of Wells Fargo.
ECONOMIC AND INVESTMENT MARKET COMMENT
Despite volatility in the financial markets, uncertainty about the federal
budget debate, a harsh winter in most of the U.S. and some mixed economic
signals, the economy developed better than expected momentum at the end of 1995
and in the first quarter of 1996, growing at a surprising 2.5% according to the
Department of Commerce's Gross Domestic Product index (GDP). This momentum is
likely to continue into the second quarter, then slow during the second half of
1996. Modest overall growth should help keep inflationary pressures in check,
despite some concern about energy and grain prices and potential increases in
wages.
<PAGE> 3
This has generally been good news for the financial markets. The stock
market extended 1995's impressive gains into early 1996, despite some turbulence
and investor nervousness. Interest rate sensitive stocks, such as banks,
performed well as did telephone utilities and some insurance companies.
Technology stocks suffered a sell off in the fourth quarter of 1995 but have
begun to rebound in 1996. Traditional early cycle industries, including
retailing, have done well, but for reasons discussed below, we do not believe
consumer spending will be sufficiently robust to sustain their advance.
We had expected equities to produce 8 to 12% returns for all of 1996. The
Dow Jones Industrial Average, however, returned 9.8% during the first three
months of the year. Broader market indicies such as the S&P 500 Index produced a
return of 5.4% over the same period and the S&P 400 MidCap Index returned 6.2%.
The comparative strength of the Dow Jones can be attributed to continuing strong
flows of investment dollars into equity mutual funds and the surprising
resilience of the economy.
Results for the bond markets were strong throughout 1995, based on the
perception that the economy was heading into a recession and that the Federal
Reserve would continue its policy of lowering interest rates. Expectations
changed and the market sold off sharply, with yields rising more than 1%, after
the March 8 Labor Department statistics showed surprising jobs growth. This is
likely to translate into better than expected economic growth in the second
quarter. Although the price of gold spiked up in February and there have been
recent increases in energy and grain prices, we do not expect the Consumer Price
Index to be significantly above 3% for 1996. Higher interest rates and their
moderating effect on housing should reduce economic growth later in the year and
allow the bond market to recover somewhat, especially if the Fed recognizes the
need to resume easing at that time.
Among general economic indicators of note is the resurgence in consumer
spending during February and March after having been fairly restrained during
the Christmas season. However, this was attributable in large part to tax
refunds which will not continue to sustain spending growth. In addition, the
income needed to service the growth in credit card debt, the increase in
personal savings, and the record dollars flowing into mutual funds all represent
reductions in future consumer spending.
Spending on capital assets slowed in early 1996, after significant growth
in 1994 and 1995. The spending which did occur went largely to enhance
efficiency. Looking ahead, $120 billion is expected to be spent on information
systems during 1996. Spending on physical plant capacity is less clear because
the trend has been to acquire rather than to build
2
<PAGE> 4
capacity. Industrial production has risen modestly, but recent declines in
inventories suggest that production may be due for an upswing.
By the end of the year, we expect slower overall growth and moderate
inflation fears. The stock market will continue to provide investors with good
opportunities for a positive return, although not as high as in 1995. We expect
the bond market to recover from its recent set-back as inflation becomes less of
an issue and the economy fails to sustain its surprising growth.
We thank you for entrusting us with the management of your money. We will
continue to exert our best efforts to bring you rewarding results.
/s/ MICHAEL C. PETRYCKI
Michael C. Petrycki
President
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", and "S&P MidCap Index(R)", are
registered trademarks of McGraw-Hill, Inc. and "Dow Jones(R)" is a registered
trademark of the Dow Jones Company. The S&P 500 Index is an unmanaged index of
500 widely held common stocks representing, among others, industrial, financial,
utility and transportation companies listed or traded on national exchanges or
over-the-counter markets. The S&P MidCap Index is an unmanaged index listing
midcap common stocks. The Dow Jones Industrial Average is a price-weighted
average of thirty blue chip stocks listed on the New York Stock Exchange.
Economic statistics including the Consumer Price Index and the Gross Domestic
Product are provided by the United States Department of Labor and the Department
of Commerce. This is neither an offer to sell nor a solicitation of an offer to
buy any of these securities. The offer can be made only by the proxy/prospectus.
3
<PAGE> 5
PACIFICA EQUITY VALUE FUND
We are pleased with the solid performance of this Fund at the halfway point
in its fiscal year. Through March 31, the Equity Value Fund returned 9.29% after
expenses (9.60% for Institutional Shares) versus the 11.71% returned by the S&P
500, the 9.51% for The S&P MidCap 400/BARRA Value Index, and the 13.27% for The
S&P 500/BARRA Value Index.
The Fund took advantage of the strong market for large capitalization
stocks in January orienting more of the portfolio there, and assumed positions
in under-valued, out-of-favor industries such as Chemicals, Autos, Paper and
Retail. The Fund actually benefited from the severe sector rotation that took
place in the market. Our cash equivalents position was kept to a minimum because
of the briskly rising market. By the end of the quarter, however, we increased
cash to 4 to 5% as a buffer against the volatility we anticipate when corporate
earnings are reported early in the second quarter.
The Fund reaped the rewards of its strategy as several of its largest
holdings performed well. The top performing stock was Union Carbide (+32.3%).
Retail stocks Ethan Allen (+28.8%) and Price/Costco (+23.0%) were also top
performers.
PACIFICA GROWTH FUND
The Pacifica Growth Fund continued to perform well. For the first half of
its fiscal year, the Fund returned 9.46% after expenses (9.42% for Institutional
Shares). This compares to the 11.71% return of the S&P 500 and the 10.18% return
for The S&P 500/BARRA Growth Index.
Our general strategy was to position the Fund for what we believe will be
an improving economy in late 1996. Consequently, we made portfolio changes aimed
directly at enhancing the sensitivity of the Fund to the economy by increasing
the portion of the Fund invested in Capital Goods, Intermediate Goods and
Retail. Capital Goods was increased to 16.2% of the Fund by the addition of
Dover Corp. Purchases of DuPont and Fluor served to increase Intermediate Goods
to 8.5%. May Department Stores was added to an already well represented Retail
sector and brought the Fund's weighting up to 8.8%.
We reduced the Energy sector from 11.10% of assets to 6.0% because of our
perception that this sector is more defensive than sensitive to an improving
economy. This strategy did somewhat constrain the Fund's return. The sector
rallied as energy prices, particularly oil, spiked upward due to the harsh
weather and Iraq's failure to reach an agreement with the United Nations to
resume oil exports.
Other changes incorporated the strategy of investing in high quality
companies which have demonstrated consistent growth of earnings and
4
<PAGE> 6
dividends, have shown improved relative strength and have relatively clean
balance sheets. For example, we added Medtronic and Marsh & McLennan, while WMX
Technologies, Silicon Graphics, Wal-Mart, General Reinsurance and Mobil were
sold.
The top five performing stocks were: General Motors Class "H", +29%; Tosco,
+23%; Price/Costco, +23%; MBNA Corp., +21%; and Schlumberger, +14%.
PACIFICA BALANCED FUND
The Balanced Fund posted a solid performance at the halfway point of its
fiscal year. The Fund returned 6.57% after expenses (6.74% for Institutional
Shares) compared to the 11.71% returned by the S&P 500, the 9.51% for The S&P
MidCap 400/BARRA Value Index, the 13.27% for The S&P/500 BARRA Value Index, and
the 2.52% returned by the Salomon Brothers Broad Investment Grade Index. During
the past six months, the Fund moved its asset allocation from 50% equity and 50%
fixed income to 70% equity and 30% fixed income.
The portfolio actually benefited from the severe sector rotation that took
place in the equity market. Our strategy was to position the Fund in
under-valued, out-of-favor industries such as the Chemicals, Autos, Paper and
Retail, with emphasis on large capitalization companies. Cash equivalents were
kept to a minimum due to the rising market.
Our equity strategy proved successful as the period progressed and the Fund
was rewarded by having several of its largest holdings perform well. Union
Carbide was the best performing stock, posting a +32.3% gain. Also, Ethan Allen
(+28.8%) and Price/Costco (+23.0%) did very well.
In the face of a less-than-friendly environment, the fixed income portion
of the Balanced Fund portfolio adopted and maintained a conservative posture
during the first quarter of 1996 after a strong finish in 1995. The portfolio
invested its assets in high quality, low risk intermediate term securities. At
quarter end, US Treasury obligations totaled 82% of the Fund. For most of the
past quarter, a defensive portfolio duration was maintained at approximately 95%
of the Fund's benchmark -- the Salomon Brothers Broad Investment Grade Index.
However, as rates rose substantially towards the end of the quarter, the Fund
increased its duration to match its benchmark. This translated into an average
maturity of 7.8 years and a duration of 4.7 years.
Past performance is not a guarantee of future results. When redeemed, shares of
the Funds may be worth more or less than their original cost. Shares of the
Funds are not obligations of nor guaranteed by the U.S. Government, First
Interstate Bancorp, or Wells Fargo Bank, and are not insured by FDIC. The S&P
500/BARRA Value Index, the S&P Midcap 400/BARRA Value Index and the S&P
500/BARRA Growth Index are unmanaged indices consisting of domestic stocks
chosen for market size, liquidity, and industrial group representation. The
Salomon Brothers Broad Investment Grade Index is an unmanaged index composed of
a broad base of fixed income securities.
5
<PAGE> 7
P A C I F I C A
EQUITY VALUE FUND
Portfolio of Investments (Unaudited) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 96.41%
BASIC INDUSTRY -- 3.85%
63,300 Ball Corp. ................. $ 1,673,444 $ 1,962,300
100,000 International Paper Co. .... 3,425,542 3,937,500
197,300 Owens-Illinois Inc.* ....... 1,951,269 3,181,463
------------ ------------
7,050,255 9,081,263
------------ ------------
CHEMICALS -- 5.79%
202,000 Crompton & Knowles Corp. ... 2,856,036 2,954,250
240,000 Sterling Chemicals Inc. .... 2,767,419 3,030,000
60,000 Union Carbide Corp. ........ 1,945,500 2,977,500
200,000 Wellman Inc. ............... 5,185,333 4,700,000
------------ ------------
12,754,288 13,661,750
------------ ------------
COMPUTERS/ELECTRONICS -- 11.61%
140,000 Avnet Inc. ................. 6,345,556 6,755,000
300,000 Excel Industries Inc. ...... 3,888,033 3,412,500
40,000 International Business
Machines Corp. ........... 3,600,720 4,445,000
140,000 Micron Technology Inc. ..... 6,263,672 4,392,500
100,000 Seagate Technology Inc.* ... 2,606,935 5,475,000
100,000 Technitrol Inc. ............ 2,055,956 2,900,000
------------ ------------
24,760,872 27,380,000
------------ ------------
CONSUMER SPENDING -- 15.70%
200,000 Ethan Allen Interiors
Inc. ..................... 4,047,426 5,250,000
200,000 Ford Motor Company.......... 5,957,750 6,875,000
100,000 General Motors Corp. ....... 3,453,899 5,325,000
60,000 IBP Inc. ................... 1,595,697 1,537,500
60,000 International Multifoods
Corp...................... 1,050,705 1,147,500
300,000 Price/Costco Inc.* ......... 4,407,500 5,625,000
100,000 Quaker Oats Co. ............ 3,418,021 3,337,500
100,000 Sears Roebuck & Co. ........ 3,497,768 4,875,000
80,000 Universal Foods Corp. ...... 3,045,232 3,050,000
------------ ------------
30,473,998 37,022,500
------------ ------------
CONSUMER STAPLES -- 6.05%
500,000 Ameridata Technologies
Inc.* .................... 5,142,395 5,687,500
300,000 Banctec Inc.* .............. 5,041,857 5,175,000
38,700 Philip Morris Cos., Inc. ... 2,113,537 3,395,925
------------ ------------
12,297,789 14,258,425
------------ ------------
ENERGY -- 10.17%
60,000 Amoco Corp. ................ 4,092,052 4,335,000
160,000 Cyprus Amax Minerals Co. ... 4,228,674 4,520,000
64,600 Exxon Corp. ................ 4,356,780 5,272,975
30,000 Mobil Corp. ................ 2,118,677 3,476,250
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
P A C I F I C A
EQUITY VALUE FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY (continued)
30,000 Royal Dutch Petroleum Co.
ADR(a).................... $ 3,005,277 $ 4,237,500
24,890 Texaco, Inc. ............... 1,571,829 2,140,540
------------ ------------
19,373,289 23,982,265
------------ ------------
FINANCE -- 11.24%
40,000 Alex Brown Inc. ............ 2,100,709 2,075,000
90,300 American Bankers Insurance
Group, Inc. .............. 2,146,794 3,160,500
85,000 BankAmerica Corp. .......... 3,650,510 6,587,500
26,000 Chase Manhattan Corp. ...... 930,320 1,911,000
40,000 First Union Corp. .......... 1,969,173 2,420,000
60,000 NationsBank Corp. .......... 3,354,162 4,807,500
68,000 Providian Corp. ............ 2,058,634 3,034,500
41,900 Republic New York Corp. .... 1,744,592 2,493,050
------------ ------------
17,954,894 26,489,050
------------ ------------
HEALTH CARE -- 5.38%
30,000 American Home Products
Co. ...................... 3,040,764 3,251,250
80,000 Baxter International
Inc. ..................... 2,679,095 3,620,000
40,000 Bristol-Myers Squibb Co. ... 2,389,411 3,425,000
60,000 Pharmacia Upjohn Inc. ...... 1,588,076 2,392,500
------------ ------------
9,697,346 12,688,750
------------ ------------
INSURANCE -- 1.72%
92,550 Fremont General Corp. ...... 1,306,814 2,186,494
28,200 Travelers Group Inc. ....... 607,005 1,861,200
------------ ------------
1,913,819 4,047,694
------------ ------------
MANUFACTURING -- 17.82%
70,000 General Electric Co. ....... 2,790,021 5,451,250
413,500 Griffon Corp.* ............. 3,440,558 3,876,562
40,000 Johnson Controls Inc. ...... 2,360,389 2,985,000
150,000 Lukens Inc. ................ 4,607,541 3,731,250
200,000 Park-Ohio Industries........ 2,815,180 3,275,000
300,000 Southdown Inc. ............. 5,563,785 7,087,500
80,000 Texas Industries Inc. ...... 3,850,194 5,090,000
200,000 Varlen Corp. ............... 5,333,626 4,550,000
100,000 Willamette Industries
Inc. ..................... 5,749,500 5,975,000
------------ ------------
36,510,794 42,021,562
------------ ------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
P A C I F I C A
EQUITY VALUE FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- 7.08%
60,000 Bellsouth Corp. ............ $ 2,209,800 $ 2,220,000
100,000 Cinergy Corp. .............. 2,838,307 3,000,000
100,000 GTE Corp. .................. 3,309,623 4,387,500
80,000 Southern Co. ............... 1,762,201 1,910,000
160,000 U.S. West, Inc. ............ 4,585,122 5,180,000
------------ ------------
14,705,053 16,697,500
------------ ------------
TOTAL COMMON STOCKS......... 187,492,397 227,330,759
------------ ------------
REPURCHASE
AGREEMENT -- 3.15%
$7,440,235 Goldman Sachs & Co., dated
03/29/1996 5.375%,
04/01/1996 (Proceeds at
maturity $7,443,568)
Collateralized by
$5,812,000 U.S. Treasury
Bond
10.750%, 08/15/2005....... 7,440,235 7,440,235
------------ ------------
TOTAL INVESTMENTS AND REPUR-
CHASE AGREEMENT -- 99.56%. $194,932,632+ 234,770,994
============
OTHER ASSETS LESS
LIABILITIES -- 0.44%...... 1,028,394
------------
NET ASSETS -- 100.00%....... $235,799,388
============
</TABLE>
- ---------------
+ The cost of securities for Federal income tax purposes is substantially the
same.
(a) ADR - American Depository Receipt.
* Non - income producing security.
See accompanying notes to financial statements.
8
<PAGE> 10
P A C I F I C A
GROWTH FUND
Portfolio of Investments (Unaudited) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS -- 95.79%
BASIC INDUSTRY -- 6.08%
6,600 Air Products & Chemicals
Inc. ....................... $ 310,529 $ 360,525
4,300 Du Pont (E.I.) de
Nemours & Co. .............. 350,360 356,900
8,000 Sherwin-Williams Co. ......... 276,892 355,000
----------- -----------
937,781 1,072,425
----------- -----------
CHEMICALS -- 6.43%
8,400 Abbott Laboratories........... 290,379 342,300
6,500 Merck & Co. .................. 247,132 404,625
7,500 Smithkline Beecham............ 279,188 386,250
----------- -----------
816,699 1,133,175
----------- -----------
COMPUTERS/ELECTRONICS -- 12.95%
8,200 Automatic Data Processing
Inc. ....................... 245,480 322,875
5,000 First Data Corp. ............. 321,023 352,500
3,500 Hewlett-Packard Co............ 215,110 329,000
5,000 Intel Corp.................... 230,250 283,750
6,000 Medtronic Inc. ............... 316,741 357,750
3,600 Microsoft Corp.* ............. 279,963 370,800
6,700 3COM Corp.* .................. 271,275 266,325
----------- -----------
1,879,842 2,283,000
----------- -----------
CONSUMER SPENDING -- 19.87%
10,000 Albertson's Inc............... 321,730 371,250
5,500 Coca-Cola Co. ................ 270,215 454,438
6,000 Disney (Walt) Co. ............ 335,123 383,250
6,800 General Motors Corp. ......... 249,048 430,100
9,000 Home Depot Inc. .............. 413,042 430,875
7,000 May Department Stores Inc. ... 321,804 337,750
7,500 McDonald's Corp. ............. 225,889 360,000
20,000 Price/Costco Inc.* ........... 333,500 375,000
11,000 Walgreen Co. ................. 327,270 358,875
----------- -----------
2,797,621 3,501,538
----------- -----------
CONSUMER STAPLES -- 8.42%
6,000 CPC International Inc. ....... 410,885 416,250
4,000 Philip Morris Cos., Inc. ..... 248,788 351,000
4,000 Procter & Gamble Co. ......... 257,446 339,000
11,500 Sysco Corp. .................. 350,306 378,063
----------- -----------
1,267,425 1,484,313
----------- -----------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
P A C I F I C A
GROWTH FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
----------- -----------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY -- 3.25%
5,000 Amoco Corp. .................. $ 306,845 $ 361,250
4,500 Tosco Corp. .................. 139,638 210,938
----------- -----------
446,483 572,188
----------- -----------
FINANCE -- 6.39%
7,000 Bank of New York Co., Inc. ... 221,137 360,500
5,600 Federal National Mortgage
Association ................ 107,502 178,500
9,000 MBNA Corp. ................... 143,243 266,625
5,800 Mellon Bank Corp. ............ 201,182 319,725
----------- -----------
673,064 1,125,350
----------- -----------
HEALTH CARE -- 2.62%
8,000 Columbia HCA Healthcare
Corp. ...................... 317,946 462,000
----------- -----------
INSURANCE -- 4.23%
4,000 American International
Group....................... 279,238 374,500
4,000 March & McLennan Cos.,
Inc. ....................... 387,436 371,500
----------- -----------
666,674 746,000
----------- -----------
MANUFACTURING -- 10.86%
5,000 Boeing Co. ................... 366,250 433,125
7,700 Dover Corp. .................. 323,361 352,275
4,900 General Electric Co. ......... 255,300 381,588
5,500 Illinois Tool Works Inc. ..... 323,292 355,438
8,000 Pitney Bowes Inc. ............ 365,490 392,000
----------- -----------
1,633,693 1,914,426
----------- -----------
SERVICES -- 6.06%
5,300 Fluor Corp. .................. 375,269 361,725
5,600 Schlumberger Ltd. ............ 391,467 443,100
4,000 Tibune Co. ................... 243,338 263,500
----------- -----------
1,010,074 1,068,325
----------- -----------
UTILITIES -- 8.63%
5,000 AT&T Corp. ................... 255,500 306,250
15,000 Federal Signal Corp. ......... 357,798 384,375
11,000 Nipsco Industries Inc. ....... 333,508 409,750
8,000 SBC Communications Inc. ...... 351,307 420,997
----------- -----------
1,298,113 1,521,372
----------- -----------
TOTAL COMMON STOCKS........... 13,745,415 16,884,112
----------- -----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 12
P A C I F I C A
GROWTH FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ----------- ----------- -----------
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 4.01%
$ 705,866 Goldman Sachs & Co.,
dated 03/29/1996,
5.375%, 04/01/1996
(Proceeds at maturity
$706,182) Collateralized by
$552,000 U.S. Treasury Bond
10.75%, 08/15/2005.......... $ 705,866 $ 705,866
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE AGREEMENT --
99.80%...................... $14,451,281+ 17,589,978
===========
OTHER ASSETS LESS
LIABILITIES -- 0.20%........ 35,510
-----------
NET ASSETS -- 100.00%......... $17,625,488
===========
</TABLE>
- ---------------
+ The cost of securities for Federal income tax purposes is substantially the
same.
* Non - income producing security.
See accompanying notes to financial statements.
11
<PAGE> 13
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 65.11%
BASIC INDUSTRY -- 2.43%
26,600 Ball Corp. ................. $ 701,200 $ 824,600
25,000 International Paper Co. .... 780,185 984,375
78,500 Owens-Illinois Inc.* ....... 777,523 1,265,812
------------ ------------
2,258,908 3,074,787
------------ ------------
CHEMICALS -- 5.01%
125,000 Crompton & Knowles Corp. ... 1,722,545 1,828,125
60,000 Sterling Chemicals Inc. .... 691,855 757,500
40,000 Union Carbide Corp. ........ 1,491,000 1,985,000
75,000 Wellman Inc. ............... 1,796,372 1,762,500
------------ ------------
5,701,772 6,333,125
------------ ------------
COMPUTERS/ELECTRONICS -- 6.49%
45,000 Avner Inc. ................. 2,039,643 2,171,250
75,000 Excel Industries Inc. ...... 978,033 853,125
10,000 International Business
Machines Corp. ........... 900,180 1,111,250
40,000 Micron Technology Inc. ..... 1,765,328 1,255,000
25,000 Seagate Technology,
Inc.* .................... 651,284 1,368,750
50,000 Technitrol Inc. ............ 1,093,299 1,450,000
------------ ------------
7,427,767 8,209,375
------------ ------------
CONSUMER SPENDING -- 10.36%
50,000 Ethan Allen Interiors
Inc. ..................... 1,002,588 1,312,500
50,000 Ford Motor Company.......... 1,488,375 1,718,750
35,000 General Motors Corp. ....... 1,382,515 1,863,750
100,000 IBP Inc. ................... 2,579,048 2,562,500
23,150 International Multifoods
Corp. .................... 429,842 442,744
100,000 Price/Costco Inc.* ......... 1,493,955 1,875,000
40,000 Quaker Oats Co. ............ 1,363,038 1,335,000
25,000 Sears Roebuck & Co. ........ 839,368 1,218,750
20,000 Universal Foods Corp. ...... 761,308 762,500
------------ ------------
11,340,037 13,091,494
------------ ------------
CONSUMER STAPLES -- 3.94%
200,000 Ameridata Technologies
Inc.* .................... 2,147,776 2,275,000
100,000 Banctec Inc.* .............. 1,612,577 1,725,000
11,200 Philip Morris Cos., Inc. ... 627,548 982,800
------------ ------------
4,387,901 4,982,800
------------ ------------
ENERGY -- 6.89%
15,000 Amoco Corp. ................ 1,022,567 1,083,750
60,000 Cyprus Amax Minerals Co. ... 1,567,018 1,695,000
19,000 Exxon Corp. ................ 1,324,068 1,550,875
5,000 Mobil Corp. ................ 426,878 579,375
10,000 Royal Dutch Petroleum Co.
ADR(a).................... 1,154,982 1,412,500
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 14
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
ENERGY (continued)
20,000 Texaco, Inc. ............... $ 1,443,172 $ 1,720,000
46,000 Ziegler Coal Holdings Co.... 679,152 667,000
------------ ------------
7,617,837 8,708,500
------------ ------------
FINANCE -- 8.96%
50,000 Alex Brown Inc. ............ 2,599,459 2,593,750
35,800 American Bankers Insurance
Group, Inc. .............. 831,325 1,253,000
26,100 BankAmerica Corp. .......... 1,197,321 2,022,750
10,000 Chase Manhattan Corp. ...... 358,200 735,000
30,000 First Union Corp. .......... 1,683,890 1,815,000
20,000 NationsBank Corp. .......... 1,207,791 1,602,500
29,400 Providian Corp. ............ 896,770 1,311,975
------------ ------------
8,774,756 11,333,975
------------ ------------
HEALTH CARE -- 3.71%
15,000 American Home Products
Co. ...................... 1,499,478 1,625,625
30,000 Baxter International
Inc. ..................... 981,068 1,357,500
13,000 Bristol-Myers Squibb Co. ... 766,374 1,113,125
15,000 Pharmacia Upjohn Inc. ...... 397,019 598,125
------------ ------------
3,643,939 4,694,375
------------ ------------
INSURANCE -- 1.25%
35,925 Fremont General Corp. ...... 509,931 848,728
11,000 Travelers Group Inc. ....... 363,350 726,000
------------ ------------
873,281 1,574,728
------------ ------------
MANUFACTURING -- 11.35%
22,000 General Electric Co. ....... 918,436 1,713,250
115,700 Griffon Corp.* ............. 962,690 1,084,688
10,000 Johnson Controls Inc. ...... 579,308 746,250
50,000 Lukens Inc. ................ 1,519,420 1,243,750
100,000 Park-Ohio Industries........ 1,385,045 1,637,500
125,000 Southdown Inc. ............. 2,465,096 2,953,125
25,000 Texas Industries Inc. ...... 1,135,833 1,590,625
70,000 Varlen Corp. ............... 1,817,157 1,592,500
30,000 Willamette Industries
Inc. ..................... 1,721,750 1,792,500
------------ ------------
12,504,735 14,354,188
------------ ------------
UTILITIES -- 4.72%
15,000 Bellsouth Corp. ............ 552,450 555,000
50,000 Cinergy Corp. .............. 1,454,486 1,500,000
25,000 GTE Corp. .................. 827,406 1,096,875
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 15
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
OR SHARES COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES (continued)
50,000 Southern Co. ............... $ 1,214,384 $ 1,193,750
50,000 U.S. West, Inc. ............ 1,421,142 1,618,750
------------ ------------
5,469,868 5,964,375
------------ ------------
TOTAL COMMON STOCKS......... 70,000,801 82,321,722
------------ ------------
CORPORATE NOTES -- 3.44%
AUTOMOTIVE -- 0.39%
$ 500,000 General Motors Corp. 7.400%,
09/01/2025................ 496,044 488,835
------------ ------------
CONSUMER STAPLES -- 1.25%
300,000 Clorox Inc. 8.800%,
07/15/2001................ 302,102 328,538
1,000,000 General Mills Inc. 8.750%,
08/15/1996................ 1,000,014 1,012,181
250,000 Gillette Co. 4.750%,
08/15/1996................ 249,897 244,545
------------ ------------
1,552,013 1,585,264
------------ ------------
FINANCE -- 1.24%
300,000 BHP Finance Co. 7.000%,
12/01/1997................ 299,688 304,028
250,000 Capital One Bank 8.125%,
02/27/1998................ 249,788 257,935
100,000 Chemical Bank 7.000%,
06/01/2000................ 94,342 100,171
146,231 EQCC Home Equity Loan
5.800%, 03/15/2009........ 146,784 142,913
250,000 General Motors Acceptance
Corp. 7.875%,
03/07/2001................ 248,824 262,940
500,000 US West Capital Funding
6.310%, 11/01/2005........ 500,000 496,451
------------ ------------
1,539,426 1,564,438
------------ ------------
MANUFACTURING -- 0.19%
240,000 Rockwell International Co.
7.625%, 02/17/1998........ 239,754 246,668
------------ ------------
MISCELLANEOUS -- 0.21%
250,000 American Home Products
7.700%, 02/15/2000........ 249,756 261,107
------------ ------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 16
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
CORPORATE NOTES (CONTINUED)
UTILITIES -- 0.16%
$ 200,000 ITT Corp. 7.25%,
11/15/1996................ $ 199,854 $ 201,742
------------ ------------
TOTAL CORPORATE NOTES....... 4,276,847 4,348,054
------------ ------------
ASSET-BACKED
SECURITIES -- 2.95%
123,184 Aircraft Lease Portfolio
7.150%, 11/15/1997........ 123,708 124,411
200,000 Bank One Credit Card
7.550%, 12/15/1999........ 199,818 205,582
416,666 MBNA Master Credit
5.462%, 07/15/1998........ 416,549 417,188
981,306 Nationscredit Grantor Trust
1996-1 A 5.850%,
09/15/2011................ 979,773 965,782
220,621 Nissan Auto Receivable
Grantor 6.450%,
09/15/1999................ 220,502 222,331
Olympic Automobile
Receivables Trust 1995-D:
435,126 5.800%, 10/15/1998.......... 434,960 436,266
1,000,000 6.050%, 11/15/2000.......... 998,948 997,720
128,041 Western Finance Grantor
5.100%, 06/01/1999........ 126,506 127,185
230,578 World Omni Auto Lease
7.950%, 01/25/2001........ 231,511 234,786
------------ ------------
TOTAL ASSET-BACKED
SECURITIES................ 3,732,275 3,731,251
------------ ------------
U.S. TREASURY NOTES -- 14.72%
2,000,000 5.125%, 04/30/1998.......... 1,974,357 1,975,000
250,000 6.375%, 01/15/1999.......... 258,523 253,047
500,000 7.750%, 11/30/1999.......... 503,869 527,500
1,000,000 6.375%, 01/15/2000.......... 1,019,391 1,011,250
2,000,000 6.375%, 08/15/2002.......... 1,980,936 2,011,250
1,000,000 6.250%, 02/15/2003.......... 958,772 996,875
1,500,000 7.250%, 05/15/2004.......... 1,436,684 1,580,155
100,000 7.250%, 08/15/2004.......... 107,339 105,406
2,500,000 7.875%, 11/15/2004.......... 2,596,975 2,738,280
3,550,000 7.250%, 05/15/2016.......... 3,909,166 3,708,639
4,000,000 6.250%, 08/15/2023.......... 3,928,133 3,701,248
------------ ------------
TOTAL U.S. TREASURY NOTES... 18,674,145 18,608,650
------------ ------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 17
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 15.25%
FEDERAL HOME LOAN MORTGAGE
CORP. PASS-THROUGH
SECURITIES -- 2.57%
$ 600,000 8.125%, 09/30/1996.......... $ 602,885 $ 608,185
250,000 6.095%, 02/23/2001.......... 237,084 244,594
191,514 8.250%, 08/01/2001.......... 186,102 195,962
151,067 8.500%, 12/01/2002.......... 147,216 157,110
274,878 8.500%, 01/01/2009.......... 264,165 285,873
199,134 10.500%, 08/01/2019......... 210,115 220,852
1,500,000 8.000%, 09/15/2023.......... 1,555,947 1,539,750
------------ ------------
3,203,514 3,252,326
------------ ------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION BONDS -- 5.88%
2,000,000 8.350%, 11/10/1999.......... 2,022,196 2,137,520
2,500,000 8.625%, 11/10/2004.......... 2,670,101 2,641,113
2,500,000 8.500%, 02/01/2005.......... 2,665,514 2,650,520
------------ ------------
7,357,811 7,429,153
------------ ------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 2.87%
363,857 5.200%, 07/25/1999.......... 360,676 362,759
500,000 7.290%, 09/22/1999.......... 496,703 511,234
629,022 6.000%, 01/01/2001.......... 636,460 614,670
281,698 8.000%, 06/01/2008.......... 278,165 287,067
595,019 6.500%, 01/01/2009.......... 601,350 583,119
8,901 9.500%, 02/01/2009.......... 8,865 9,508
118,048 8.000%, 08/01/2018.......... 111,155 120,298
1,139,428 7.000%, 12/25/2019.......... 1,137,362 1,144,773
------------ ------------
3,630,736 3,633,428
------------ ------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 3.56%
1,000,000 6.500%, 03/01/2026.......... 947,894 949,060
3,360,000 9.500%, 03/01/2026.......... 3,537,174 3,546,916
------------ ------------
4,485,068 4,495,976
------------ ------------
STUDENT LOAN MARKETING
ASSOCIATION VRN
(b) -- 0.37%
469,990 5.700%, 04/01/1996.......... 469,990 469,990
------------ ------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS............... 19,147,119 19,280,873
------------ ------------
TOTAL INVESTMENTS........... 115,831,187 128,290,550
------------ ------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 18
P A C I F I C A
BALANCED FUND
Portfolio of Investments (Unaudited) (continued) -- March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ------------ ------------ ------------
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 1.54%
$ 1,941,094 Goldman Sachs & Co., dated
03/29/1996, 5.375%,
04/01/1996 (Proceeds at
maturity $1,941,964)
Collateralized by
$1,517,000 U.S. Treasury
Bond 10.750%,
08/15/2005................ $ 1,941,094 $ 1,941,094
------------ ------------
TOTAL INVESTMENTS AND
REPURCHASE AGREEMENT --
103.01% $117,772,281+ 130,231,644
=============
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (3.01%)... (3,806,010)
------------
NET ASSETS -- 100.00%....... $126,425,634
============
</TABLE>
- ---------------
+ The cost of securities for Federal income tax pruposes is substantially the
same.
* Non-income producing security.
(a) ADR -- American Depository Receipt.
(b) VRN -- Variable Rate Note -- The maturity date shown is the next reset date
and the rate shown is rate in effect at March 31, 1996.
See accompanying notes to financial statements.
17
<PAGE> 19
P A C I F I C A
Statements of Assets and Liabilities (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
EQUITY GROWTH BALANCED
VALUE FUND FUND FUND
------------ ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost $187,492,397,
$13,745,415, and $115,831,187,
respectively)..................... $227,330,759 $16,884,112 $128,290,550
Repurchase Agreements, at value
(cost $7,440,235, $705,866, and
$1,941,094, respectively)......... 7,440,235 705,866 1,941,094
Cash................................ 124,718 149 53,525
Dividends and interest receivable... 304,575 26,554 736,372
Receivable for investments sold..... 894,781 -- --
Receivable for Fund shares sold..... 42,148 13,488 35,394
Prepaid expenses.................... 24,406 2,696 16,275
Other assets........................ 50,090 40,673 174,970
------------ ----------- ------------
Total assets.................... 236,211,712 17,673,538 131,248,180
------------ ----------- ------------
LIABILITIES:
Advisory fee payable................ 151,909 1,618 148,608
Administrative services fee
payable........................... 71,218 1,979 42,260
Shareholder services fee payable.... 27,949 -- 41,210
Custodian fee payable............... 22,652 -- --
Transfer agent fee payable.......... 2,669 210 4,858
Fund accounting fee payable......... 2,500 2,500 2,500
Payable for securities purchased.... 38,953 -- 4,502,612
Payable for Fund shares redeemed.... -- -- 13,980
Other accrued expenses.............. 94,474 41,743 66,518
------------ ----------- ------------
Total liabilities............... 412,324 48,050 4,822,546
------------ ----------- ------------
NET ASSETS............................ $235,799,388 $17,625,488 $126,425,634
============ =========== ============
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 20
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
EQUITY GROWTH BALANCED
VALUE FUND FUND FUND
------------ ----------- ------------
<S> <C> <C> <C>
NET ASSETS:
Par value of shares of beneficial
interest outstanding ($.001 per
share); unlimited number of shares
authorized........................ $ 17,026 $ 880 $ 10,210
Additional paid-in capital.......... 173,206,888 14,133,678 106,960,093
Accumulated undistributed realized
gain on investments............... 22,687,487 354,983 6,969,560
Accumulated undistributed (over
distributed) net investment
income............................ 49,625 (2,750) 26,408
Unrealized appreciation of
investments....................... 39,838,362 3,138,697 12,459,363
------------ ----------- ------------
Net assets applicable to shares
outstanding....................... $235,799,388 $17,625,488 $126,425,634
============ =========== ============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING:
Institutional Shares:
Shares of Beneficial Interest
Outstanding..................... 15,554,385 850,281 7,227,900
============ =========== ============
Net Asset Value, Maximum Offering
Price, and redemption price
per share......................... $13.85 $20.03 $12.38
====== ====== ======
Investor Shares:
Shares of Beneficial Interest
Outstanding..................... 1,471,440 29,708 2,981,911
========= ====== =========
Net Asset Value and Redemption
Price Per Share................. $13.84 $20.05 $12.39
====== ====== ======
Maximum offering price per share
($13.84/.955, $20.05/.955, and
$12.39/.955, respectively)...... $14.49 $20.99 $12.97
====== ====== ======
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 21
P A C I F I C A
Statements of Operations (Unaudited)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
EQUITY GROWTH BALANCED
VALUE FUND FUND FUND
----------- ---------- -----------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Dividends......................... $ 2,717,948 $ 140,103 $ 832,455
Interest.......................... 134,538 20,241 2,007,375
----------- ---------- -----------
2,852,486 160,344 2,839,830
----------- ---------- -----------
Expenses:
Advisory.......................... 700,233 59,288 390,798
Administrative services........... 175,058 11,858 97,699
Distribution (Investor Shares
only)........................... 10,338 -- 41,210
Custodian......................... 27,023 1,485 13,458
Transfer agent.................... 49,647 9,372 37,379
Shareholder services (Investor
Shares only).................... 52,636 -- 41,210
Legal............................. 23,578 1,601 9,167
Fund accounting................... 18,551 15,164 17,567
Reports to shareholders........... 28,064 12,753 27,116
Audit............................. 25,031 2,020 14,721
Registration...................... 14,466 6,412 7,460
Insurance......................... 5,510 412 6,047
Trustees.......................... 4,465 3,528 4,465
Miscellaneous..................... 5,788 3,672 9,052
----------- ---------- -----------
Total expenses before waivers... 1,140,388 127,565 717,349
Less expenses waived by
Advisor/Administrator......... (26,795) (55,598) (20,950)
----------- ---------- -----------
Net expenses...................... 1,113,593 71,967 696,399
----------- ---------- -----------
Net investment income............... 1,738,893 88,377 2,143,431
----------- ---------- -----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment
transactions...................... 23,030,242 354,983 7,213,622
Net change in unrealized
appreciation on investments....... 13,609,259 982,529 5,029,030
----------- ---------- -----------
Net realized and unrealized gain on
investments....................... 36,639,501 1,337,512 12,242,652
----------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS..................... $38,378,394 $1,425,889 $14,386,083
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 22
P A C I F I C A
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
EQUITY VALUE FUND
-----------------------------
SIX MONTHS
ENDED MARCH YEAR ENDED
31, 1996 SEPTEMBER
(UNAUDITED) 30, 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income......................... $ 1,738,893 $ 3,267,649
Net realized gain on investment
transactions................................ 23,030,242 8,515,659
Change in unrealized appreciation on
investments................................. 13,609,259 13,330,878
------------ ------------
Net increase in net assets resulting from
operations.................................. 38,378,394 25,114,186
------------ ------------
Net equalization debits......................... -- (68,961)
------------ ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares.......................... (97,614) --
Investor Shares............................... (1,454,236) (3,385,737)
------------ ------------
(1,551,850) (3,385,737)
------------ ------------
Distributions to Shareholders From Realized
Capital Gains:
Institutional Shares.......................... (8,540,430) --
Investor Shares............................... (827,270) (9,614,397)
------------ ------------
(9,367,700) (9,614,397)
------------ ------------
Capital Share Transactions:
Net Proceeds from sale of shares:
Institutional Shares.......................... 215,336,523 --
Investor Shares............................... 30,444,375 98,056,766
------------ ------------
245,780,898 98,056,766
------------ ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares...................... 8,504,491 --
Investor Shares........................... 852,319 10,889,321
------------ ------------
9,356,810 10,889,321
------------ ------------
Cost of shares redeemed:
Institutional Shares...................... (36,366,950) --
Investor Shares........................... (180,836,548) (119,436,631)
------------ ------------
(217,203,498) (119,436,631)
------------ ------------
Net increase (decrease) in net assets derived
from capital share transactions............. 37,934,210 (10,490,544)
------------ ------------
Net Increase in Net Assets........................ 65,393,054 1,554,547
NET ASSETS:
Beginning of period........................... 170,406,334 168,851,787
------------ ------------
End of period................................. $235,799,388 $170,406,334
============ ============
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 23
P A C I F I C A
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
GROWTH FUND
---------------------------------------
SIX MONTHS PERIOD
ENDED MARCH ENDED YEAR ENDED
31, 1996 SEPTEMBER MAY 31,
(UNAUDITED) 30, 1995* 1995
----------- ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................. $ 88,377 $ 71,831 $ 154,022
Net realized gain (loss) on investment
transactions........................ 354,983 371,311 (280,050)
Change in unrealized appreciation on
investments......................... 982,529 600,347 1,600,315
----------- ----------- -----------
Net increase in net assets resulting
from operations..................... 1,425,889 1,043,489 1,474,287
----------- ----------- -----------
Net equalization debits................. -- -- --
----------- ----------- -----------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares.................. (89,158) (120,913) (123,363)
Investor Shares....................... (1,969) (1,793) (1,900)
----------- ----------- -----------
(91,127) (122,706) (125,263)
----------- ----------- -----------
Distributions to Shareholders From
Realized Capital Gains:
Institutional Shares.................. -- (66,055) (33,256)
Investor Shares....................... -- (920) (517)
----------- ----------- -----------
-- (66,975) (33,773)
----------- ----------- -----------
Capital Share Transactions:
Net Proceeds from sale of shares:
Institutional Shares.................. 3,462,195 2,089,493 9,247,021
Investor Shares....................... 381,154 6,910 113,201
----------- ----------- -----------
3,843,349 2,096,403 9,360,222
----------- ----------- -----------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares.............. 67,202 140,818 120,439
Investor Shares................... 1,922 2,638 2,278
----------- ----------- -----------
69,124 143,456 122,717
----------- ----------- -----------
Cost of shares redeemed:
Institutional Shares.............. (1,919,466) (1,581,599) (1,769,959)
Investor Shares................... (19,085) (25,341) (16,215)
----------- ----------- -----------
(1,938,551) (1,606,940) (1,786,174)
----------- ----------- -----------
Net increase in net assets derived
from capital share transactions..... 1,973,922 632,919 7,696,765
----------- ----------- -----------
Net Increase in Net Assets................ 3,308,684 1,486,727 9,012,016
NET ASSETS:
Beginning of period................... 14,316,804 12,830,077 3,818,061
----------- ----------- -----------
End of period......................... $17,625,488 $14,316,804 $12,830,077
=========== =========== ===========
</TABLE>
- ---------------
* Period June 1, 1995 - September 30, 1995. The Westcore Growth Fund had changed
its fiscal year end from May 31 to September 30.
See accompanying notes to financial statements.
22
<PAGE> 24
P A C I F I C A
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
BALANCED FUND
----------------------------
SIX MONTHS
ENDED MARCH YEAR ENDED
31, 1996 SEPTEMBER
(UNAUDITED) 30, 1995
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.......................... $ 2,143,431 $ 3,914,845
Net realized gain on investment transactions... 7,213,622 38,123
Change in unrealized appreciation on
investments.................................. 5,029,030 5,217,447
------------ -----------
Net increase in net assets resulting from
operations................................... 14,386,083 9,170,415
------------ -----------
Net equalization debits.......................... -- (110,805)
------------ -----------
Distributions to Shareholders from Net Investment
Income:
Institutional Shares........................... (1,491,923) --
Investor Shares................................ (521,830) (3,890,856)
------------ -----------
(2,013,753) (3,890,856)
------------ -----------
Distributions to Shareholders From Realized
Capital Gains:
Institutional Shares........................... (397,446) --
Investor Shares................................ (161,979) (4,373,450)
------------ -----------
(559,425) (4,373,450)
------------ -----------
Capital Share Transactions:
Net Proceeds from sale of shares:
Institutional Shares........................... 110,325,734 --
Investor Shares................................ 15,002,400 12,865,491
------------ -----------
125,328,134 12,865,491
------------ -----------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares....................... 1,734,456 --
Investor Shares............................ 656,191 7,817,760
------------ -----------
2,390,647 7,817,760
------------ -----------
Cost of shares redeemed:
Institutional Shares....................... (31,612,153) --
Investor Shares............................ (70,527,576) (40,734,756)
------------ -----------
(102,139,729) (40,734,756)
------------ -----------
Net increase (decrease) in net assets derived
from capital share transactions.............. 25,579,052 (20,051,505)
------------ -----------
Net Increase (Decrease) in Net Assets.............. 37,391,957 (19,256,201)
NET ASSETS:
Beginning of period............................ 89,033,677 108,289,878
------------ -----------
End of period.................................. $126,425,634 $89,033,677
============ ===========
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 25
P A C I F I C A
Notes to Financial Statements (Unaudited)
March 31, 1996
1. DESCRIPTION AND ORGANIZATION -- The Equity Value Fund, Growth Fund and
Balanced Fund, (together, the "Funds") are separately managed portfolios which
comprise part of Pacifica Funds Trust (the "Trust"), an open-end management
investment company registered under the Investment Company Act of 1940
consisting of eighteen portfolios at March 31, 1996. The Trust was organized as
a Massachusetts business trust on July 17, 1984.
Effective October 1, 1995, the Pacifica Equity Value Fund, and the Pacifica
Balanced Fund acquired all of the assets and assumed all of the liabilities of
the Westcore Basic Value Fund, and the Westcore Balanced Investment Fund,
respectively. The Pacific Growth Fund was established to acquire all of the
assets and liabilities of the Westcore Growth Fund. These acquisitions were
accomplished in separate tax-free exchanges for shares of the respective Fund
shares.
On August 7, 1995, the Board of Trustees approved the issuance of a second
class of shares for Pacifica Funds Trust. The two classes are known as
Institutional Shares and Investor Shares. Each share of a Fund represents an
equal proportionate interest in that Fund with other shares of the same class
and is entitled to the same voting rights, and to such dividends and
distributions earned on such shares as are declared in the discretion of the
Board of Trustees. Investor Shares of the Funds are purchased at net asset value
plus a maximum 4.50% sales charge. In addition, Investor Shares bear a
Distribution expense (not borne by the Institutional Shares) not to exceed the
annual rate of 0.50% of the average daily net assets.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements:
A. SECURITY VALUATION -- The Funds value investments at the last
sales price on the securities exchange on which such securities are
primarily traded. Over-the-counter securities, or exchange traded
securities for which there are no transactions, are valued at the current
bid price. Bonds and other fixed-income securities may be valued on the
basis of prices provided by a pricing service approved by the Board of
Trustees. In the absence of market quotations, investments are valued at
fair value as determined in good faith by, or at the direction of, the
Trustees. Short-term securities which mature in 60 days or less are valued
at amortized cost, if their term to maturity at purchase was 60 days or
less, or by amortizing their value on the 61st day prior to
24
<PAGE> 26
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
maturity, if their original term to maturity at purchase exceeded 60 days.
B. FEDERAL INCOME TAXES -- It is the Funds' policy to comply with the
requirements of Subchapter M of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of their
"investment company taxable income" as defined in the Code, and net capital
gains, if any, to their shareholders. Therefore, no Federal income tax
provision is required. In addition, by distributing during each calendar
year substantially all of their net investment income, capital gains and
certain other amounts, if any, the Funds intend not to be subject to a
Federal excise tax.
C. DIVIDENDS TO SHAREHOLDERS -- Dividends are recorded on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with Federal income tax regulations which may differ from net
investment income and net realized capital gains as determined by generally
accepted accounting principles. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts based on their Federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions
which exceed net investment income and net realized capital gains for
financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of
net realized capital gains. To the extent dividends and distributions
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in capital.
D. INVESTMENT TRANSACTIONS -- Investment transactions are recorded on
the trade date. Identified cost of investments sold is used to calculate
realized gains and losses for both financial statement and Federal income
tax purposes. Interest income, including the amortization of discount or
premium, is recorded as earned.
E. DETERMINATION OF NET ASSET VALUE AND ALLOCATION OF
EXPENSES -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses are allocated proportionately among each Fund within
the Trust in relation to the net assets of each Fund or on another
reasonable basis. In calculating net asset value per share of each class,
investment income and expenses, other than class-specific
25
<PAGE> 27
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
expenses, are allocated daily to each class of shares based upon the
proportion of net assets of each class at the beginning of each day.
Class-specific expenses are currently limited to expenses incurred under
the Non-12b-1 Shareholder Services Plan for each class and expenses
incurred by the Investor Shares under the Amended and Restated Master
Distribution Plan for Investor Shares.
3. INVESTMENT ADVISOR, ADMINISTRATOR AND TRANSACTIONS WITH
AFFILIATES -- For the six-month period ended March 31, 1996, First Interstate
Capital Management ("FICM") served as the investment advisor to the Funds. FICM
managed the investment and reinvestment of the assets of the Funds and
continually reviewed, supervised and administered the Funds' investments. FICM
was responsible for placing orders for the purchase and sale of the Funds'
investments directly with brokers or dealers selected by it in its discretion
and for furnishing to the Board of Trustees, which has overall responsibility
for the business affairs of the Trust, periodic reports on the performance of
the Funds. As compensation for their advisory services, Equity Value Fund and
Balanced Fund each pay FICM an annual fee payable monthly equal to 0.60% of each
Fund's average daily net assets. The Growth Fund pays a monthly fee equal to
0.75% of its average daily net assets.
In addition, First Interstate Bank of California ("FICAL"), an affiliate of
FICM, served as Custodian for the Funds, for which FICAL received a fee based
upon net assets and certain transaction charges. For the six months ended March
31, 1996, the Funds incurred the following amounts due to FICM and FICAL:
<TABLE>
<CAPTION>
EQUITY GROWTH BALANCED
VALUE FUND FUND FUND
---------- ---------- ------------
<S> <C> <C> <C>
Advisory fees............ $700,233 $ 59,288 $390,798
Custodial fees........... 27,023 1,485 13,458
---------- ---------- ------------
$727,256 $ 60,773 $404,256
========== ========== ============
</TABLE>
For the six months ended March 31, 1996, FICM voluntarily waived advisory
fees of $53,742 for the Growth Fund and $4,608 for the Balanced Fund.
Furman Selz LLC ("Furman Selz"), formerly Furman Selz, Inc., provides
administrative services for the operation of the Funds, furnishes office space
and facilities required for conducting the business of the Funds and pays the
compensation of the Trust's officers and trustees affiliated with Furman Selz.
As compensation for their administrative services, each Fund
26
<PAGE> 28
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
pays Furman Selz an annual fee payable monthly equal to 0.15% of the average
daily net assets of each Fund.
The Funds have adopted a non-compensatory Distribution Plan and Agreement
(the "Plan") for the Investor Shares pursuant to Rule 12b-1 of the Investment
Company Act of 1940, as amended. The Plan provides for payment by each Fund for
actual expenses incurred. Such payments shall not exceed .50% of average
Investor Shares net assets. Pacifica Funds Distributor Inc., an affiliate of
Furman Selz, acts as Distributor for the Trust.
The Funds also retain Furman Selz to provide personnel and facilities to
perform shareholder servicing, transfer agency related services and fund
accounting. For the six months ended March 31, 1996, Furman Selz was entitled to
the following fees from the Funds:
<TABLE>
<CAPTION>
EQUITY GROWTH BALANCED
VALUE FUND FUND FUND
---------- ---------- ------------
<S> <C> <C> <C>
Administrative fee....... $175,058 $ 11,858 $ 97,699
Shareholder servicing and
fund accounting fees... 31,209 16,063 44,808
---------- ---------- ------------
$206,267 $ 27,921 $142,507
========== ========== ============
</TABLE>
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of the Funds. If, in any fiscal year,
the total expenses of a Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses, but including the advisory and
administrative services fees) exceed the expense limitations applicable to that
Fund imposed by the securities regulations of any state, FICM and Furman Selz
will pay or reimburse the Fund to the extent of advisory and administrative
fees. For the six months ended March 31, 1996, the Funds did not exceed such
limitation.
For the six months ended March 31, 1996, Furman Selz voluntarily waived
administrative fees of $26,795, $1,856, and $16,342 for the Equity Value Fund,
Growth Fund, and Balanced Fund, respectively.
Various banks, trust companies, broker-dealers (other than Furman Selz) or
other financial organizations (collectively, "Service Organizations") also
provide administrative services for the Funds, such as maintaining shareholder
accounts and records. The Funds pay fees (which vary depending upon the services
provided) to Service Organizations in amounts
27
<PAGE> 29
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
up to an annual rate of 0.25% of the average daily net assets of the Fund's
shares owned by shareholders with whom the Service Organization has a servicing
relationship. For the six months ended March 31, 1996, First Interstate Bancorp
was the only service organization to receive payments. First Interstate Bancorp
earned $52,636 and $41,210 in such fees from the Equity Value Fund and Balanced
Fund, respectively.
4. REPURCHASE AGREEMENTS -- The Funds may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve Board, with
member banks of the Federal Reserve System or with other brokers or dealers that
meet the credit guidelines established by the Trustees. It is the policy of the
Funds to receive and maintain securities as collateral whose market value,
including accrued interest, will be at least 100% of the dollar amount invested
by that Fund in each agreement, and that Fund will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults,
and the value of the collateral declines, or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
5. SECURITY TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the six months ended
March 31, 1996 were as follows:
<TABLE>
<CAPTION>
COMMON STOCKS, U.S. GOVERNMENT
CORPORATE NOTES AND BONDS OBLIGATIONS
---------------------------- --------------------------
PROCEEDS PROCEEDS
COST OF FROM COST OF FROM
SECURITIES SECURITIES SECURITIES SECURITIES
PURCHASED SOLD PURCHASED SOLD
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Equity Value $117,566,702 $ 94,522,687 $ -- $ --
Fund...........
Growth Fund..... 6,247,674 4,039,444 -- --
Balanced Fund... 61,223,768 31,836,483 28,508,524 28,674,457
</TABLE>
Unrealized appreciation (depreciation) at March 31, 1996, based on the cost
of securities for Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C> <C> <C>
Equity Value Fund............. $ 44,494,744 $ 4,656,382 $ 39,838,362
Growth Fund................... 3,173,127 34,430 3,138,697
Balanced Fund................. 14,290,241 1,830,878 12,459,363
</TABLE>
28
<PAGE> 30
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
6. CAPITAL SHARE TRANSACTIONS -- Transactions in shares of beneficial
interest for the six months ended March 31, 1996 and the period ended September
30, 1995 were as follows:
<TABLE>
<CAPTION>
EQUITY VALUE FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995
--------------------------- --------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES* SHARES SHARES* SHARES
------------- ----------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold.............. 17,634,333 2,324,349 -- 8,141,771
Shares issued in
reinvestment of
distributions.......... 647,962 64,956 -- 969,487
---------- ----------- ------------ ----------
18,282,295 2,389,305 -- 9,111,258
Shares redeemed.......... (2,727,910) (13,760,948) -- (9,924,924)
---------- ----------- ------------ ----------
Net increase (decrease)
in shares.............. 15,554,385 (11,371,643) -- (813,666)
Beginning of period...... -- 12,843,083 -- 13,656,749
---------- ----------- ------------ ----------
End of period............ 15,554,385 1,471,440 -- 12,843,083
========== =========== ============ ==========
</TABLE>
-------------------
* Institutional shares commenced operations on October 1, 1995.
<TABLE>
<CAPTION>
GROWTH FUND WESTCORE GROWTH FUND
----------------------- ---------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995* MAY 31, 1995
----------------------- ------------------------ -------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL
SHARES SHARES SHARES SHARES SHARES SHARES
------------- -------- ------------- --------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold..... 178,677 19,877 116,576 391 592,781 7,204
Shares issued in
reinvestment
of
distributions... 3,423 97 7,727 145 7,795 148
--------- ------- ---------- --------- ----------- --------
182,100 19,974 124,303 536 600,576 7,352
Shares redeemed.. (99,064) (974) (88,173) (1,392) (111,889) (996)
--------- ------- ---------- -------- ----------- --------
Net increase
(decrease) in
shares........ 83,036 19,000 36,130 (856) 488,687 6,356
Beginning of
period........ 767,245 10,708 731,115 11,564 242,428 5,208
--------- ------- ---------- -------- ----------- --------
End of period... 850,281 29,708 767,245 10,708 731,115 11,564
========= ======= ========== ======== =========== ========
</TABLE>
-------------------
* For the period June 1, 1995 to September 30, 1995. The Westcore Fund
changed its fiscal year from May 31 to September 30.
29
<PAGE> 31
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
BALANCED FUND
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995
-------------------------- --------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES* SHARES SHARES* SHARES
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold............... 9,724,547 1,371,752 -- 1,142,667
Shares issued in
reinvestment of
distributions........... 142,730 54,045 -- 717,293
------------ ---------- ------------ ----------
9,867,277 1,425,797 -- 1,859,960
Shares redeemed........... (2,639,377) (5,963,645) -- (3,620,385)
------------ ---------- ------------ ----------
Net increase (decrease) in
shares.................. 7,227,900 (4,537,848) -- (1,760,425)
Beginning of period....... -- 7,519,759 -- 9,280,184
------------ ---------- ------------ ----------
End of period............. 7,227,900 2,981,911 -- 7,519,759
============ ========== ============ ==========
</TABLE>
-------------------
* Institutional shares commenced operations on October 1, 1995.
7. SUBSEQUENT EVENTS -- On April 1, 1996, First Interstate Bancorp was
merged with and into Wells Fargo & Company ("Wells Fargo") and FICM and FICAL
became indirect wholly-owned subsidiaries of Wells Fargo. In connection with
this merger, FICM has changed its name to Wells Fargo Investment Management,
Inc. On May 17, 1996, the Trust's Board of Trustees unanimously approved a
proposed agreement and plan of reorganization between the Trust and Stagecoach
Funds, Inc. ("Stagecoach"), a family of mutual funds advised by affiliates of
Wells Fargo. The agreement will involve the conveyance of the assets and
liabilities of the Funds to corresponding portfolios of Stagecoach. Consummation
of the reorganization is subject to (i) approval by the shareholders of the
Funds at a meeting expected to be held on or about July 16, 1996, and (ii) the
satisfaction of normal closing conditions.
30
<PAGE> 32
P A C I F I C A
Equity Value Fund**
Financial Highlights
For a share outstanding throughout each year
<TABLE>
<CAPTION>
PERIOD ENDED
MARCH 31, 1996
(UNAUDITED)
------------------------- YEAR ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR --------------------------------------------------------
SHARES*** SHARES 1995 1994 1993 1992 1991
------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period....... $ 13.27 $ 13.27 $ 12.36 $ 13.17 $ 10.73 $ 10.45 $ 8.48
-------- ------- -------- -------- -------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*................... 0.10 0.11 0.24 0.20 0.21 0.20 0.28
Net gain on securities (both realized and
unrealized)*........................... 1.12 1.08 1.63 0.74 2.75 0.49 1.98
-------- ------- -------- -------- -------- ------- --------
Total from Investment Operations....... 1.22 1.19 1.87 0.94 2.96 0.69 2.26
-------- ------- -------- -------- -------- ------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.09) (0.07) (0.25) (0.21) (0.23) (0.22) (0.29)
Distributions from capital gains......... (0.55) (0.55) (0.71) (1.54) (0.29) (0.19) --
-------- ------- -------- -------- -------- ------- --------
Total Distributions.................... (0.64) (0.62) (0.96) (1.75) (0.52) (0.41) (0.29)
-------- ------- -------- -------- -------- ------- --------
Net Asset Value, End of Period........... $ 13.85 $ 13.84 $ 13.27 $ 12.36 $ 13.17 $ 10.73 $ 10.45
======== ======= ======== ======== ======== ======= ========
Total Return (not reflecting sales
load)................................ 9.60% 9.29% 16.58% 7.49% 28.22% 6.81% 27.05%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands)............................. $ 215,434 $ 20,365 $170,406 $168,852 $140,551 $ 92,915 $ 68,412
Ratios of Expenses to Average Net
Assets................................. 0.90%+ 1.35%+ 0.96% 0.99% 0.98% 1.02% 0.98%
Effect of Waivers on above Ratio......... 0.02%+ 0.02%+ 0.02% 0.02% 0.01% -- 0.13%
Ratios of Net Investment Income to
Average Net Assets..................... 1.46%+ 1.72%+ 1.97% 1.60% 1.73% 1.86% 2.69%
Portfolio Turnover Rate.................. 43% 43% 75% 41% 82% 78% 36%
Average Commission Rate(a)............... $ 0.059 $ 0.059 -- -- -- -- --
</TABLE>
- ---------------
* Per share data based upon average monthly shares outstanding.
** Name changed from The Growth Fund, effective February 1, 1992.
*** Institutional Shares commenced operations on October 1, 1995.
+ Annualized.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
31
<PAGE> 33
P A C I F I C A
Growth Fund(1)
Financial Highlights (continued)
For a share outstanding throughout each year
<TABLE>
<CAPTION>
PERIOD ENDED
MARCH 31, 1996 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995** MAY 31, 1995
------------------------- ------------------------ -------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR INSTITUTIONAL
SHARES SHARES SHARES SHARES SHARES
------------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................ $ 18.40 $18.40 $ 17.28 $17.27 $ 15.42
---------- ------- ---------- ------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(2).......................... 0.11 0.11 0.10 0.10 0.25
Net gain (loss) on securities (both realized and
unrealized)(2).................................. 1.63 1.64 1.27 1.28 1.91
---------- ------- ---------- ------- ----------
Total from Investment Operations................ 1.74 1.75 1.37 1.38 2.16
---------- ------- ---------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income.............. (0.11) (0.10) (0.16) (0.16) (0.24)
Distributions from net realized gain on
investments..................................... -- -- (0.09) (0.09) (0.06)
---------- ------- ---------- ------- ----------
Total Distributions............................. (0.11) (0.10) (0.25) (0.25) (0.30)
---------- ------- ---------- ------- ----------
Net Asset Value, End of Period.................... $ 20.03 $20.05 $ 18.40 $18.40 $ 17.28
========== ======= ========== ======= ==========
Total Return (not reflecting sales load)........ 9.42% 9.46% 25.68% 25.69% 14.27%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period(in thousands)........... $17,029 $ 596 $14,120 $ 197 $12,630
Ratios of Expenses to Average Net Assets.......... 0.91%+ 0.91%+ 0.90%+ 0.90% 0.90%
Effect of Waivers on above Ratio.................. 0.70%+ 0.70%+ 0.89%+ 1.09%+ 1.25%
Ratios of Net Investment Income to Average
Net Assets...................................... 1.12%+ 1.13%+ 1.54%+ 1.53%+ 1.82%
Portfolio Turnover Rate........................... 31% 31% 51% 51% 50%
Average Commission Rate(a)........................ $ 0.076 $0.076 -- -- --
<CAPTION>
YEAR ENDED PERIOD ENDED
MAY 31, 1995 MAY 31, 1994*
------------- ------------------------
INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES
-------- ------------- --------
<S> <C<C> <C> <C>
Net Asset Value, Beginning of Period................ $15.42 $ 15.00 $15.39
------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(2).......................... 0.25 0.17 0.17
Net gain (loss) on securities (both realized and
unrealized)(2).................................. 1.90 0.38 (0.04)
------- ------ -------
Total from Investment Operations................ 2.15 0.55 0.13
------- ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income.............. (0.24) (0.13) (0.10)
Distributions from net realized gain on
investments..................................... (0.06) -- --
-------- ------ -------
Total Distributions............................. (0.30) (0.13) (0.10)
-------- ------ -------
Net Asset Value, End of Period.................... $17.27 $ 15.42 $15.42
======= ======= =======
Total Return (not reflecting sales load)........ 14.18% 4.43% 1.27%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period(in thousands)........... $ 200 $ 3,738 $ 80
Ratios of Expenses to Average Net Assets.......... 0.90% 0.87% 0.92%+
Effect of Waivers on above Ratio.................. 1.09% 4.69% 4.77%+
Ratios of Net Investment Income to Average
Net Assets...................................... 1.53% 1.20% 0.95%+
Portfolio Turnover Rate........................... 60% 51% 51%
Average Commission Rate(a)........................ -- -- --
</TABLE>
- ---------------
(1) The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
(2) Per Share data based upon average monthy shares outstanding.
* Fund commenced operations on August 2, 1993, and Investor Shares commenced
operations on October 11, 1993.
** For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Westcore Growth Fund changed its fiscal year end from May 31 to September
30.
+ Annualized.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
32
<PAGE> 34
P A C I F I C A
Balanced Fund
Financial Highlights (continued)
For a share outstanding throughout each year
<TABLE>
<CAPTION>
PERIOD ENDED
MARCH 31, 1996
(UNAUDITED)
------------------------- YEAR ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR --------------------------------------------------------
SHARES** SHARES 1995 1994 1993 1992 1991
------------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period....... $ 11.84 $ 11.84 $ 11.67 $ 12.71 $ 11.18 $ 10.80 $ 9.50
------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*................... 0.21 0.19 0.46 0.43 0.44 0.42 0.52
Net gain (loss) on securities (both
realized and unrealized)*.............. 0.58 0.58 0.68 (0.13) 1.72 0.53 1.40
------- -------- -------- -------- -------- -------- --------
Total from Investment Operations....... 0.79 0.77 1.14 0.30 2.16 0.95 1.92
------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income..... (0.20) (0.17) (0.47) (0.46) (0.43) (0.43) (0.62)
Distributions from capital gains......... (0.05) (0.05) (0.50) (0.88) (0.20) (0.14) --
------- -------- -------- -------- -------- -------- --------
Total Distributions.................... (0.25) (0.22) (0.97) (1.34) (0.63) (0.57) (0.62)
------- -------- -------- -------- -------- -------- --------
Net Asset Value, End of Period............. $ 12.38 $ 12.39 $ 11.84 $ 11.67 $ 12.71 $ 11.18 $ 10.80
======= ======== ======== ======== ======== ======== =======
Total Return (not reflecting sales
load)................................ 6.74% 6.57% 10.62% 2.30% 19.83% 9.03% 20.78%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands)............................. $89,485 $ 36,941 $ 89,034 $108,290 $104,434 $ 65,226 $ 50,038
Ratios of Expenses to Average Net
Assets................................. 0.94%+ 1.35%+ 1.03% 1.09% 1.01% 1.02% 0.96%
Effect of Waivers on above Ratio......... 0.03%+ 0.03%+ 0.02% 0.02% 0.05% 0.08% 0.22%
Ratios of Net Investment Income to
Average Net Assets..................... 3.36%+ 3.13%+ 4.05% 3.55% 3.62% 3.76% 5.88%
Portfolio Turnover Rate.................. 50% 50% 90% 35% 60% 49% 30%
Average Commission Rate(a)............... $ 0.076 $ 0.076 -- -- -- -- --
</TABLE>
- ---------------
* Per share data based upon average monthly shares outstanding.
** Institutional Shares commenced operations on October 1, 1995.
+ Annualized.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
33
<PAGE> 35
P A C I F I C A
BOARD OF TRUSTEES
<TABLE>
<S> <C>
JOSEPH N. HANKIN*+ President, Westchester
Community College
RICHARD A. WEDEMEYER* Vice President, Performance
Advantage, Inc.
JOHN E. HEILMANN* Former Chairman, Distillers
Somerset, Inc.
DENNIS W. DRAPER Associate Professor of
Finance, University of
Southern California
JACK D. HENDERSON, ESQ. Attorney-at-Law
* Member of Audit Committee
+ Member of Nominating
Committee
- ----------------------------------------------------------------
OFFICERS
MICHAEL C. PETRYCKI President
STEVEN D. BLECHER Executive Vice President
JOAN V. FIORE Vice President & Secretary
JOHN J. PILEGGI Vice President & Treasurer
DONALD E. BROSTROM Assistant Treasurer
</TABLE>
<PAGE> 36
INVESTMENT ADVISOR
Wells Fargo Investment Management, Inc.
P.O. Box 7066
San Francisco, California 94120-7066
ADMINISTRATOR
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
Pacifica Funds Distributor Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
Wells Fargo Bank, N.A.
P.O. Box 7066
San Francisco, California 94120-7066
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE PACIFICA FAMILY
OF MUTUAL FUNDS. ITS USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES
IS AUTHORIZED ONLY IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE TRUST'S
CURRENT PROSPECTUS.
[PACIFICA LOGO]
<PAGE> 37
[PACIFICA LOGO]
PACIFICA GOVERNMENT
MONEY MARKET FUND
PACIFICA MONEY MARKET FUND
PACIFICA MONEY MARKET TRUST
SEMI-ANNUAL REPORT
MARCH 31, 1996
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, FIRST INTERSTATE, WELLS FARGO OR ANY OTHER BANK, AND ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. MUTUAL FUND SHARES INVOLVE CERTAIN
INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
AN INVESTMENT IN THE GOVERNMENT MONEY MARKET FUND IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE FUNDS
WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
<PAGE> 38
[PACIFICA LOGO] P A C I F I C A
- ------------------------------------------------------------------------------
May 17, 1996
Dear Shareholder:
We are pleased to present the March 31, 1996 Semi-Annual Report for the
Pacifica Funds. This report includes unaudited financial statements, as well as
a six-month look back at the economic factors which influenced the Funds'
performance and our expectations for the remainder of this fiscal year.
FIRST INTERSTATE AND WELLS FARGO
On April 1, 1996, First Interstate Bancorp merged into Wells Fargo &
Company ("Wells Fargo"). As a result of this merger, First Interstate Capital
Management, Inc. ("FICM"), the investment advisor to the Pacifica Funds, became
a wholly-owned subsidiary of Wells Fargo. Subsequently, FICM was renamed Wells
Fargo Investment Management, Inc. ("WFIM").
By law, the merger of First Interstate Bancorp into Wells Fargo resulted in
the automatic termination of the then current advisory agreements with FICM. You
may have already received, or will shortly be receiving, a proxy/prospectus that
describes proposed replacement advisory agreements with WFIM. The
proxy/prospectus also describes a proposed reorganization of each Pacifica Fund
into a corresponding portfolio of Stagecoach Funds, Inc., an open-end investment
company advised by Wells Fargo Bank, N.A., which is also a wholly-owned
subsidiary of Wells Fargo.
ECONOMIC AND INVESTMENT MARKET COMMENT
Despite volatility in the financial markets, uncertainty about the federal
budget debate, a harsh winter in most of the U.S. and some mixed economic
signals, the economy developed better than expected momentum at the end of 1995
and in the first quarter of 1996, growing at a surprising 2.5% according to the
Department of Commerce's Gross Domestic Product index (GDP). This momentum is
expected to continue into the second quarter, then slow during the second half
of 1996. Modest overall growth should help keep inflationary pressures in check,
despite some concern about energy and grain prices and potential increases in
wages.
<PAGE> 39
This has generally been good news for the financial markets. The stock
market extended 1995's impressive gains into early 1996, despite some turbulence
and investor nervousness. Interest rate sensitive stocks, such as banks,
performed well as did telephone utilities and some insurance companies.
Technology stocks suffered a sell off in the fourth quarter of 1995 but have
begun to rebound in 1996. Traditional early cycle industries, including
retailing, have done well, but for reasons discussed below, we do not believe
consumer spending will be sufficiently robust to sustain their advance.
We had expected equities to produce 8 to 12% returns for all of 1996. The
Dow Jones Industrial Average, however, returned 9.8% during the first three
months of the year. Broader markets such as the S&P 500 Index produced a return
of 5.4% over the same period and the S&P 400 Midcap Index returned 6.2%. The
comparative strength of the Dow Jones can be attributed to continuing strong
flows of investment dollars into equity mutual funds and the surprising
resilience of the economy.
Results for the bond markets were strong throughout 1995, based on the
perception that the economy was heading into a recession and that the Federal
Reserve would continue its policy of lowering interest rates. Expectations
changed and the market sold off sharply, with yields rising more than 1%, after
the March 8 Labor Department statistics showed surprising jobs growth. This is
likely to translate into better than expected economic growth in the second
quarter. Although the price of gold spiked up in February and there have been
recent increases in energy and grain prices, we do not expect the Consumer Price
Index to be significantly above 3% for 1996. Higher interest rates and their
moderating effect on housing should reduce economic growth later in the year and
allow the bond market to recover somewhat, especially if the Fed recognizes the
need to resume easing at that time.
Among general economic indicators of note is the resurgence in consumer
spending during February and March after having been fairly restrained during
the Christmas season. However, this was attributable in large part to tax
refunds which will not continue to sustain spending growth. In addition, the
income needed to service the growth in credit card debt, the increase in
personal savings, and the record dollars flowing into mutual funds all represent
reductions in future consumer spending.
Spending on capital assets slowed in early 1996, after significant growth
in 1994 and 1995. The spending which did occur went largely to enhance
efficiency. Looking ahead, $120 billion is expected to be spent on information
systems during 1996. Spending on physical plant capacity is less clear because
the trend has been to acquire rather than to build capacity.
2
<PAGE> 40
Industrial production has risen modestly, but recent declines in inventories
suggest that production may be due for an upswing.
By the end of the year, we expect slower overall growth and moderate
inflation fears. The stock market is expected to continue to provide investors
with good opportunities for a positive return, although not as high as in 1995.
We expect the bond market to recover from its recent set-back as inflation
becomes less of an issue and the economy fails to sustain its surprising growth.
We thank you for entrusting us with the management of your money. We will
continue to exert our best efforts to bring you rewarding results.
/s/ MICHAEL C. PETRYCKI
Michael C. Petrycki
President
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", and "S&P MidCap Index(R)", are
registered trademarks of McGraw-Hill, Inc. and "Dow Jones(R)" is a registered
trademark of the Dow Jones Company. The S&P 500 Index is an unmanaged index of
500 widely held common stocks representing, among others, industrial, financial,
utility and transportation companies listed or traded on national exchanges or
over-the-counter markets. The S&P MidCap Index is an unmanaged index listing
midcap common stocks. The Dow Jones Industrial Average is a price-weighted
average of thirty blue chip stocks listed on the New York Stock Exchange.
Economic statistics including the Consumer Price Index and the Gross Domestic
Product are provided by the United States Department of Labor and the Department
of Commerce. This is neither an offer to sell nor a solicitation of an offer to
buy any of these securities. The offer can be made only by the proxy/prospectus.
3
<PAGE> 41
MARKET OVERVIEW
The first quarter of 1996 saw the Federal Reserve lower the key Fed Funds
rate to 5.25% from 5.50% amid concerns of a slowing economy and moderate
inflation. While the Fed easing event was widely anticipated, the magnitude did
not meet the markets' expectations for more aggressive easing.
Since June of 1995, the strategy for the Funds has been based on the fact
that short-term rates reflected more Fed easing than would actually occur. This
was reflected by various spreads that were flat to inverted to the Fed Funds
rate. While we did not disagree that the Fed could continue to ease rates, we
felt that market rates didn't represent value, thus our strategy had been to
maintain shorter than average maturities. This strategy allowed the Funds to
achieve higher current yields with greater liquidity.
In early March, the employment figures reported for February showed a sharp
increase of 704,000 jobs, which caused a dramatic jump in interest rates. The
market interpreted this data as a sign of economic strength, which caused money
market spreads to widen relative to the Fed Funds rate. This rise in rates
provided an opportunity for the Funds to extend maturities at more favorable
levels. Also, due to their relatively short maturity structure, the Funds were
able to increase yields at a faster pace.
PACIFICA GOVERNMENT MONEY MARKET FUND
The Fund provided a six month total return of 2.41% after expenses with an
average weighted maturity of 52 days.
PACIFICA MONEY MARKET FUND
The Fund provided a six month total return of 2.60% with an average
weighted maturity of 23 days.
PACIFICA MONEY MARKET TRUST
The Fund provided a six month total return of 2.77% after expenses with an
average weighted maturity of 60 days.
Past performance is not a guarantee of future results. The Pacifica Money Market
Funds seek to maintain a one dollar per share Net Asset Value. There is no
guarantee, however, that the Funds will succeed in this objective. When
redeemed, shares of the Funds may be worth more or less than their original
cost. Shares of the Funds are not obligations of nor guaranteed by the U.S.
Government, First Interstate Bancorp, or Wells Fargo Bank, and are not insured
by FDIC.
4
<PAGE> 42
P A C I F I C A
GOVERNMENT MONEY MARKET FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL ON DATE OF VALUE
AMOUNT PURCHASE (NOTE 2A)
- ------------ ---------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 77.68%
FEDERAL FARM CREDIT
BANK -- 16.86%
$15,000,000 5.45%, 04/01/1996** ............. 5.41% $15,007,526
-----------
FEDERAL HOME LOAN BANK -- 32.38%
5,000,000 5.14%, 04/01/1996................ 5.23 5,000,000
10,000,000 5.26%, 04/22/1996................ 5.36 9,969,316
10,000,000 5.30%, 07/08/1996................ 5.35 10,000,000
4,000,000 5.10%, 12/09/1996................ 5.38 3,857,200
-----------
28,826,516
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 14.96%
1,480,000 5.16%, 04/10/1996................ 5.25 1,478,091
7,000,000 5.20%, 06/24/1996................ 5.35 6,915,067
5,000,000 4.98%, 07/24/1996................ 5.18 4,921,150
-----------
13,314,308
-----------
STUDENT LOAN MARKETING
ASSOCIATION -- 13.48%
5,000,000 5.34%, 04/02/1996**.............. 5.30 5,000,058
7,000,000 5.37%, 04/02/1996**.............. 5.37 7,000,000
-----------
12,000,058
-----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................... 69,148,408
-----------
U.S. TREASURY BILLS -- 12.02%
6,000,000 05/30/1996 ...................... 5.82 5,946,015
5,000,000 03/06/1997 ...................... 5.48 4,758,698
-----------
TOTAL U.S. TREASURY BILLS........ 10,704,713
-----------
TOTAL INVESTMENTS
(COST $79,853,121)............. 79,853,121
-----------
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
5
<PAGE> 43
P A C I F I C A
GOVERNMENT MONEY MARKET FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL ON DATE OF VALUE
AMOUNT PURCHASE (NOTE 2A)
- ------------ ---------- -----------
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 10.48%
$9,329,557 Goldman Sachs & Co.
dated 03/29/1996
5.375%, 04/01/1996 (Proceeds at
maturity $9,333,736);
Collateralized by $9,764,000
U.S. Treasury Bills
09/26/1996..................... 5.45% $ 9,329,557
-----------
TOTAL INVESTMENTS & REPURCHASE
AGREEMENT -- 100.18%
(COST $89,182,678)+............ 89,182,678
-----------
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.18%).............. (156,227)
-----------
NET ASSETS -- 100.00%............ $89,026,451
===========
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
6
<PAGE> 44
P A C I F I C A
MONEY MARKET FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL CREDIT ON DATE OF VALUE
AMOUNT RATINGS* PURCHASE (NOTE 2A)
- ----------- ---------- ----------- -----------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 50.73%
$ 8,000,000 Asset Securitization
Corp. 5.35%,
04/04/1996.......... A1+/P1 5.48% $ 7,996,433
8,000,000 Elger Capital Corp.
5.23%, 04/12/1996... A1+/P1 5.33 7,987,216
9,000,000 Ford Motor Credit
Corp. 5.25%,
04/12/1996.......... A1/P1 5.35 8,985,563
9,000,000 General Electric
Capital Services,
Inc. 5.35%,
04/19/1996.......... A1+/P1 5.45 8,975,925
9,000,000 Metlife Funding Inc.
5.25%, 04/15/1996... A1+/P1 5.35 8,981,624
8,000,000 Morgan Stanley Group
Inc. 5.21%,
04/19/1996.......... A1+/P1 5.32 7,979,160
7,000,000 Panasonic Finance Inc.
5.33%, 04/09/1996... A1+/P1 5.47 6,991,709
9,000,000 PHH Corp. 5.34%,
04/26/1996.......... A1/P1 5.44 8,966,624
9,000,000 Reed Elsevier Inc.
5.33%, 04/18/1996... A1+/P1 5.43 8,977,348
9,000,000 Sony Capital Corp.
5.41%, 04/25/1996... A1/P1 5.51 8,967,540
9,000,000 Walt Disney Co. 5.25%,
04/12/1996.......... A1/P1 5.35 8,985,563
7,000,000 Xerox Credit Corp.
5.33%, 04/11/1996... A1/P1 5.47 6,989,636
-----------
TOTAL COMMERCIAL PAPER 100,784,341
===========
CORPORATE NOTES -- 19.13%
8,000,000 Bank of Hawaii,
Honolulu Bank Note
5.29%,
05/23/1996**........ A1/P1 5.34 8,000,000
6,000,000 Bear Stearns Companies
MTN 5.475%,
04/15/1996**........ A1/P1 5.55 6,000,000
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
7
<PAGE> 45
P A C I F I C A
MONEY MARKET FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL CREDIT ON DATE OF VALUE
AMOUNT RATINGS* PURCHASE (NOTE 2A)
- ----------- ---------- ----------- -----------
<C> <S> <C> <C>
CORPORATE NOTES (CONTINUED)
$ 8,000,000 Goldman Sachs & Co.
Master Note 5.375%,
04/10/1996**........ A1+/P1 5.45% $ 8,000,000
8,000,000 J.P. Morgan & Co.,
Inc. Master Note
5.31%,
04/01/1996**........ A1+/P1 5.39 8,000,000
8,000,000 Merrill Lynch & Co.
MTN 6.06%,
10/25/1996.......... A1+/P1 6.15 8,000,000
----------
TOTAL CORPORATE NOTES 38,000,000
==========
CERTIFICATES OF DEPOSIT -- 7.55%
8,000,000 Societe Generale
New York 5.25%,
04/05/1996.......... A1+/P1 5.32 8,000,000
7,000,000 Union Bank
San Francisco 5.36%,
05/17/1996.......... A1/P1 5.43 7,000,000
----------
TOTAL CERTIFICATES OF DEPOSIT 15,000,000
==========
TOTAL INVESTMENTS -----------
(COST $153,784,341) 153,784,341
===========
REPURCHASE AGREEMENTS -- 22.64%
22,000,000 J.P. Morgan Securities Inc. dated
03/29/1996, 5.40%, 04/01/1996
(Proceeds at maturity
$22,009,900); Collateralized by
$22,735,000 U.S. Treasury Bills
06/27/1996...................... 5.48 22,000,000
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
8
<PAGE> 46
P A C I F I C A
MONEY MARKET FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL ON DATE OF VALUE
AMOUNT PURCHASE (NOTE 2A)
- ----------- ----------- -----------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS (CONTINUED)
$22,991,230 Goldman Sachs & Co., dated
03/29/1996, 5.375%, 04/01/1996
(Proceeds at maturity
$23,001,528); Collateralized by
$24,060,000 U.S. Treasury Bills
09/26/1996..................... 5.45% $ 22,991,230
------------
TOTAL REPURCHASE AGREEMENTS
(COST $44,991,230)............. 44,991,230
------------
TOTAL INVESTMENTS & REPURCHASE
AGREEMENTS -- 100.05%
(COST $198,775,571)+........... 198,775,571
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.05%).............. (93,847)
------------
NET ASSETS -- 100.00%............ $198,681,724
============
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
9
<PAGE> 47
P A C I F I C A
MONEY MARKET TRUST
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL CREDIT ON DATE OF VALUE
AMOUNT RATINGS* PURCHASE (NOTE 2A)
- ----------- ------- ---------- ------------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 63.39%
$30,000,000 American Express
Credit Corp. 5.01%,
08/29/96............ A1/P1 5.21% $ 29,373,750
25,000,000 Asset Securitization
Corp.
5.35%, 04/04/96..... A1+/P1 5.48 24,988,854
35,000,000 Bancal Tri-State Corp.
5.35%, 06/17/96..... A1/P1 5.50 34,599,493
15,000,000 BETA Finance, Inc.
5.17%, 07/12/96..... A1+/P1 5.38 14,780,275
22,800,000 Budget Funding Corp.
5.22%, 04/15/96..... A1/P1 5.33 22,753,716
20,666,000 Canadian Wheat Board
5.27%, 06/28/96..... A1+/P1 5.42 20,399,776
25,000,000 Ciesco Limited
Partnership
5.23%, 09/24/96..... A1+/P1 5.45 24,360,778
25,460,000 Eiger Capital Corp.
5.19%, 05/08/96..... A1+/P1 5.31 25,324,192
40,000,000 Ford Motor Credit
Corp.
5.23%, 08/02/96..... A1/P1 5.40 39,285,233
15,000,000 General Electric
Capital Corp. 5.22%,
06/28/96............ A1+/P1 5.43 14,808,600
30,000,000 General Electric
Capital Services,
Inc., 5.20%,
09/17/96............ A1+/P1 5.41 29,267,667
25,000,000 Hershey Foods Corp.
5.10%, 07/19/96..... A1+/P1 5.31 24,613,958
30,000,000 Metlife Funding Inc.
5.22%, 06/14/96..... A1+/P1 5.36 29,678,100
20,000,000 Morgan Stanley Group,
Inc. 5.38%,
04/08/96............ A1+/P1 5.53 19,979,078
10,000,000 Morgan Stanley Group,
Inc. 5.21%,
04/19/96............ A1+/P1 5.32 9,973,950
13,000,000 Panasonic Finance,
Inc.
5.33%, 04/11/96..... A1/P1 5.47 12,984,602
40,000,000 Philip Morris
Companies, Inc.
5.31%, 05/23/96..... A1/P1 5.43 39,693,200
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
10
<PAGE> 48
P A C I F I C A
MONEY MARKET TRUST
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL CREDIT ON DATE OF VALUE
AMOUNT RATINGS* PURCHASE (NOTE 2A)
- ----------- -------- ---------- ---------
<C> <S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$22,400,000 Potomac Electric Power
Co. 5.28%,
04/09/96............ A1/P1 5.37% $ 22,373,717
27,000,000 Reed Elsevier, Inc.
5.33%, 04/26/96..... A1+/P1 5.43 26,900,063
25,000,000 Republic New York
Corp. 5.17%,
07/08/96............ A1+/P1 5.39 24,648,153
23,875,000 Transamerica Finance
Corp. 5.24%,
04/12/96............ A1/P1 5.35 23,836,774
30,000,000 Walt Disney Co.
5.20%, 09/16/96..... A1/P1 5.42 29,272,000
23,000,000 Xerox Credit Corp.
5.33%, 04/11/96..... A1/P1 5.47 22,965,947
------------
TOTAL COMMERCIAL PAPER 566,861,876
------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 7.16%
25,000,000 Federal Farm Credit Bank
5.24%, 04/01/96**..... NR/NR 5.36 24,989,557
40,000,000 Federal National Mortgage
Association Discount
Note 09/12/96....... NR/NR 5.38 39,056,089
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS 64,045,646
------------
CORPORATE NOTES -- 15.21%
12,000,000 Bear Stearns Companies MTN,
5.41%, 04/01/96**..... A1/P1 5.49 12,000,000
18,000,000 Bear Stearns Companies MTN,
5.41%, 04/22/96**..... A1/P1 5.49 18,000,000
12,000,000 Comerica Bank Detroit Bank
Notes 5.30%,
04/02/96**.......... A1/P1 5.55 11,998,997
25,000,000 Goldman Sachs & Co. MTN
5.375%, 04/10/96**.... A1+/P1 5.45 25,000,000
14,000,000 General Electric Capital Corp.
MTN 5.50%,
04/01/96**.......... A1+/P1 5.46 14,000,179
25,000,000 J.P. Morgan & Co. Inc.
Master Note 5.31%,
04/01/96**.......... A1+/P1 5.39 25,000,000
20,000,000 Merrill Lynch & Co. MTN
5.38%, 04/01/96**..... A1+/P1 5.45 20,000,000
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
11
<PAGE> 49
P A C I F I C A
MONEY MARKET TRUST
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
YIELD TO
MATURITY
PRINCIPAL CREDIT ON DATE OF VALUE
AMOUNT RATINGS* PURCHASE (NOTE 2A)
- ----------- ------- ---------- ------------
<C> <S> <C> <C>
CORPORATE NOTES (CONTINUED)
$10,000,000 Merrill Lynch & Co. MTN
5.43%, 04/01/96**..... A1+/P1 5.51% $ 10,000,000
------------
TOTAL CORPORATE
NOTES............... 135,999,176
------------
CERTIFICATES OF DEPOSIT -- 3.02%
15,000,000 Union Bank San Francisco
5.35%, 07/08/96....... A1/P1 5.42 15,000,000
12,000,000 Union Bank San Francisco
5.77%, 07/25/96....... A1/P1 5.85 12,000,000
------------
TOTAL CERTIFICATES OF
DEPOSIT............. 27,000,000
------------
TOTAL INVESTMENTS (COST $793,906,698) 793,906,698
------------
REPURCHASE AGREEMENT -- 11.45%
Goldman Sachs & Co., dated
03/29/1996, 5.375%, 04/01/1996
102,364,548 (Proceeds at maturity $102,410,399)
Collateralized by:
$69,288,094 U.S. Treasury Bond
10.625%, 08/15/2015
$35,124,545 U.S. Treasury
Bill,
08/22/1996....................
5.45 102,364,548
------------
TOTAL INVESTMENTS & REPURCHASE
AGREEMENT -- 100.23%
(COST $896,271,246)+.......... 896,271,246
------------
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.23%)............. (2,027,487)
------------
NET ASSETS -- 100.00%........... $894,243,759
============
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
12
<PAGE> 50
P A C I F I C A
Footnotes to Portfolios of Investments (Unaudited)
March 31, 1996
*CREDIT RATINGS GIVEN BY RATING AGENCIES ARE EXPLAINED BELOW; CREDIT RATINGS ARE
UNAUDITED.
<TABLE>
<CAPTION>
STANDARD &
POOR'S MOODY'S
RATINGS INVESTORS
GROUP SERVICE, INC.
---------- -------------
<C> <C> <S>
A1 P1 Short-term instruments of the
highest quality.
NR NR Not Rated. In the opinion of
the Investment Advisor,
instrument judged to be of
comparable investment quality
to rated securities which may
be purchased by the Funds.
</TABLE>
Items which posses the strongest investment attributes of their category
are given that letter rating followed by a number. Standard & Poor's may modify
the ratings by the addition of a plus or minus sign to show relative standing
within the major rating categories.
** VARIABLE RATE NOTES -- The maturity date shown is the next interest reset
date; rate shown is rate in effect at March 31, 1996. Yield to maturity on date
of purchase shown is yield in effect at March 31, 1996.
+ The cost of securities for Federal income tax purposes is substantially the
same.
INVESTMENT PERCENTAGES SHOWN ARE CALCULATED AS A PERCENTAGE OF NET ASSETS.
ABBREVIATIONS USED IN THE PORTFOLIOS OF INVESTMENTS
MTN Medium Term Notes.
See accompanying notes to financial statements.
13
<PAGE> 51
P A C I F I C A
Statements of Assets and Liabilities (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND TRUST
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at
value (identified cost
$79,853,121, $153,784,341 and
$793,906,698, respectively).... $79,853,121 $153,784,341 $793,906,698
Repurchase Agreements, at value
(cost $9,329,557, $44,991,230
and $102,364,548,
respectively).................. 9,329,557 44,991,230 102,364,548
Cash............................. -- 15,148 --
Interest receivable.............. 804,459 538,157 1,889,969
Receivable for Fund shares
sold........................... -- 98,819 --
Prepaid expenses................. 2,191 6,339 5,645
Receivable from Advisor.......... -- -- 103,008
Other assets..................... 28,965 16,306 51,601
------------ ------------ ------------
Total assets................. 90,018,293 199,450,340 898,321,469
------------ ------------ ------------
LIABILITIES:
Payable to Custodian............. 530,578 -- 347,373
Income dividend payable.......... 227,042 480,066 3,450,505
Advisory fee payable............. 22,087 44,609 --
Administrative services fee
payable........................ 10,579 23,620 86,291
Payable for Fund shares
redeemed....................... 3,800 184,406 5,027
Fund accounting fee payable...... 2,500 2,500 2,500
Custodian fee payable............ 1,431 3,399 --
Transfer agent fee payable....... 268 1,739 4
Other accrued expenses........... 193,557 28,277 186,010
------------ ------------ ------------
Total liabilities............ 991,842 768,616 4,077,710
------------ ------------ ------------
NET ASSETS......................... $89,026,451 $198,681,724 $894,243,759
============ ============ ============
NET ASSETS:
Par value of shares of beneficial
interest outstanding ($.001 per
share); unlimited number of
shares authorized.............. 89,026 198,288 894,320
Additional paid-in capital....... 88,937,425 198,089,906 893,426,173
Accumulated distribution in
excess
of net investment income....... -- -- (76,734)
Accumulated undistributed net
realized gain on investments... -- 393,530 --
------------ ------------ ------------
Net assets applicable to
outstanding shares............. $89,026,451 $198,681,724 $894,243,759
============ ============ ============
Shares of Beneficial Interest
Outstanding.................... 89,026,451 198,288,194 894,320,493
============ ============ ============
Net Asset Value, Maximum
Offering Price, and Redemption
Price Per Share................ $1.00 $1.00 $1.00
===== ===== =====
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 52
P A C I F I C A
Statements of Operations (Unaudited)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND TRUST
------------ ------------ ------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Interest income:........ $2,745,015 $5,120,157 $15,401,595
----------- ------------ ------------
EXPENSES:
Advisory................ 146,024 265,883 820,280
Administrative
services.............. 73,012 132,942 410,140
Distribution............ 72,559 23,335 --
Transfer agent.......... 22,597 24,984 40,100
Shareholder services.... 19,923 23,335 --
Fund accounting......... 16,670 16,855 24,192
Reports to
shareholders.......... 12,843 12,443 35,644
Registration............ 12,546 18,372 50,045
Legal................... 12,179 14,221 50,780
Audit................... 11,164 20,188 42,500
Custodian............... 10,809 18,133 --
Insurance............... 2,704 1,607 5,257
Trustees................ 2,678 3,405 3,528
Miscellaneous........... 3,478 2,777 15,660
----------- ----------- -----------
Total expenses
before waivers/
reimburement....... 419,186 578,480 1,498,126
Less expenses waived/
reimbursed by
Advisor/
Administrator...... (23,937) (18,972) (984,071)
----------- ----------- -----------
Net expenses............ 395,249 559,508 514,055
----------- ----------- -----------
Net investment income..... 2,349,766 4,560,649 14,887,540
----------- ----------- -----------
REALIZED GAIN ON
INVESTMENTS:
Net realized gain on
investment
transactions.......... -- 393,333 --
----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $2,349,766 $4,953,982 $14,887,540
=========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 53
P A C I F I C A
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1996 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995
---------------- ------------------
<S> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income........ $ 2,349,766 $ 6,495,283
Net realized gain on
investment transactions.... -- 454,418
--------------- -----------------
Net increase in net assets
resulting from operations.... 2,349,766 6,949,701
--------------- -----------------
Distributions to shareholders
from:
Net investment income........ (2,349,766) (6,495,283)
Realized capital gains....... -- (454,418)
--------------- -----------------
(2,349,766) (6,949,701)
--------------- -----------------
Capital Share Transactions
(at $1.00 per share):
Net proceeds from sales of
shares..................... 1,420,510,933 4,140,356,138
Net asset value of shares
issued to shareholders in
reinvestment of
distributions.............. 585,263 1,587,592
--------------- -----------------
1,421,096,196 4,141,943,730
Cost of shares redeemed...... (1,441,438,181) (4,226,851,391)
--------------- -----------------
Net decrease in net assets
derived from capital share
transactions............... (20,341,985) (84,907,661)
--------------- -----------------
Net Decrease in Net Assets..... (20,341,985) (84,907,661)
NET ASSETS:
Beginning of period.......... 109,368,436 194,276,097
--------------- -----------------
End of period................ $ 89,026,451 $ 109,368,436
=============== =================
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 54
P A C I F I C A
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
MONEY MARKET FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1996 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995
---------------- ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income........ $ 4,560,649 $ 8,224,027
Net realized gain on
investment transactions.... 393,333 --
--------------- -----------------
Net increase in net assets
resulting from operations.... 4,953,982 8,224,027
--------------- -----------------
Distributions to shareholders
from:
Net investment income........ (4,560,453) (8,224,027)
--------------- -----------------
Capital Share Transactions
(at $1.00 per share):
Net proceeds from sales of
shares..................... 1,218,146,284 5,790,579,654
Net asset value of shares
issued to shareholders in
reinvestment of
distributions.............. 1,690,663 2,554,636
--------------- -----------------
1,219,836,947 5,793,134,290
Cost of shares redeemed...... (1,184,206,875) (5,789,187,631)
--------------- -----------------
Net increase in net assets
derived from capital share
transactions............... 35,630,072 3,946,659
--------------- -----------------
Net Increase in Net Assets..... 36,023,601 3,946,659
NET ASSETS:
Beginning of period.......... 162,658,123 158,711,464
--------------- -----------------
End of period................ $ 198,681,724 $ 162,658,123
=============== =================
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 55
P A C I F I C A
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
MONEY MARKET
TRUST WESTCORE PRIME
---------------- MONEY MARKET FUND
SIX MONTHS ENDED ----------------------------------
MARCH 31, 1996 PERIOD ENDED YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995* MAY 31, 1995
---------------- ------------------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
Operations:
Net investment income... $ 14,887,540 $ 5,414,501 $ 13,979,887
--------------- ---------------- -------------
Net increase in net
assets resulting from
operations............ 14,887,540 5,414,501 13,979,887
--------------- ---------------- -------------
Distributions to
shareholders from:
Net investment income... (14,887,540) (5,491,235) (13,979,887)
--------------- ---------------- -------------
Capital Share Transactions
(at $1.00 per share):
Net proceeds from sales
of shares............. 840,565,528 206,738,848 481,846,431
Net asset value of
shares issued to
shareholders in
reinvestment of
distributions......... 21,130 1,253 1,954
--------------- ---------------- -------------
840,586,658 206,740,101 481,848,385
Cost of shares
redeemed.............. (233,206,389) (210,282,383) (492,259,778)
--------------- ---------------- -------------
Net increase (decrease)
in net assets derived
from capital share
transactions.......... 607,380,269 (3,542,282) (10,411,393)
--------------- ---------------- -------------
Net Increase (Decrease) in
Net Assets.............. 607,380,269 (3,619,016) (10,411,393)
NET ASSETS:
Beginning of period... 286,863,490 290,482,506 300,893,899
--------------- ---------------- -------------
End of period......... $ 894,243,759 $ 286,863,490 $ 290,482,506
=============== ================ =============
</TABLE>
* For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
See accompanying notes to financial statements.
18
<PAGE> 56
P A C I F I C A
Notes to Financial Statements (Unaudited)
March 31, 1996
1. DESCRIPTION AND ORGANIZATION -- Government Money Market Fund, Money
Market Fund and Money Market Trust, (together, the "Funds") are separately
managed portfolios which comprise part of Pacifica Funds Trust (the "Trust"), an
open-end management investment company registered under the Investment Company
Act of 1940, consisting of eighteen portfolios at March 31, 1996. The Trust was
organized as a Massachusetts business trust on July 17, 1984.
Effective October 1, 1995, Money Market Trust was established as a
portfolio to acquire all of the assets and liabilities of the Westcore Prime
Money Market Fund. This was accomplished in a tax free exchange of shares.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements:
A. SECURITY VALUATION -- The Funds value investments at amortized
cost, which approximates market value.
B. FEDERAL INCOME TAXES -- It is the Funds' policy to comply with the
requirements of Subchapter M of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of their
"investment company taxable income," as defined in the Code, and net
capital gains, if any, to their shareholders. Therefore, no Federal income
tax provision is required.
C. DIVIDENDS TO SHAREHOLDERS -- The Funds declare and record
dividends from taxable net investment income on each business day and pay
such dividends within five business days after the end of each month. In
addition, by distributing during each calendar year substantially all of
their net investment income, capital gains and certain other amounts, if
any, the Funds intend not to be subject to a Federal excise tax.
D. INVESTMENT TRANSACTIONS -- Investment transactions are recorded on
the trade date. Identified cost of investments sold is used to calculate
realized gains and losses for both financial statement and Federal income
tax purposes. Interest income, including the amortization of discount or
premium, is recorded as earned.
19
<PAGE> 57
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
E. ALLOCATION OF EXPENSES -- Expenses directly attributable to a Fund
are charged to that Fund; other expenses are allocated proportionately
among each Fund within the Trust in relation to the net assets of each Fund
or on another reasonable basis.
3. INVESTMENT ADVISOR, ADMINISTRATOR AND TRANSACTIONS WITH AFFILIATES --
First Interstate Capital Management ("FICM") served as the investment advisor to
the Funds. FICM managed the investment and reinvestment of the assets of the
Funds and continually reviewed, supervised and administered the Funds'
investments. FICM was responsible for placing orders for the purchase and sale
of the Funds' investments directly with brokers or dealers selected by it in its
discretion and for furnishing to the Board of Trustees, which has overall
responsibility for the business affairs of the Trust, periodic reports on the
performance of the Funds. As compensation for their advisory services, the Funds
each pay FICM an annual fee payable monthly equal to 0.30% of the first $500
million, 0.25% of the next $500 million and 0.20% in excess of $1 billion of
each Fund's average daily net assets.
For the six months ended March 31, 1996, FICM was entitled to and waived
advisory fees as indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- --------
<S> <C> <C>
Government Money Market Fund....... $146,024 --
Money Market Fund.................. 265,883 --
Money Market Trust................. 820,280 $820,280
</TABLE>
In addition, First Interstate Bank of California ("FICAL"), an affiliate of
FICM, serves as Custodian for the Funds, for which FICAL receives a fee based
upon net assets and certain transaction charges.
Furman Selz, LLC ("Furman Selz"), formerly Furman Selz Inc., provides
administrative services for the operation of the Funds, furnishes office space
and facilities required for conducting the business of the Funds and pays the
compensation of the Trust's officers and trustees affiliated with Furman Selz.
As compensation for their administrative services, each Fund pays Furman Selz an
annual fee payable monthly equal to 0.15% of the average daily net assets of
each Fund.
20
<PAGE> 58
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
For the six months ended March 31, 1996, Furman Selz was entitled to and
waived administrative services fees as indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Government Money Market Fund........ $ 73,012 $23,937
Money Market Fund................... 132,942 18,972
Money Market Trust.................. 410,140 60,783
</TABLE>
The Funds have adopted a non-compensatory Distribution Plan and Agreement
(the "Plan") pursuant to Rule 12b-1 of the Investment Company Act of 1940, as
amended. The Plan provides for payment by each Fund for actual expenses
incurred. Such payments shall not exceed 0.25% of average net assets. Pacifica
Funds Distributor, Inc., an affiliate of Furman Selz, acts as Distributor for
the Trust.
The Funds also retain Furman Selz to provide personnel and facilities to
perform shareholder servicing, transfer agency related services and fund
accounting. For the six months ended March 31, 1996, Furman Selz earned the fees
of $16,485, $22,908, and $15,023, respectively, from Government Money Market
Fund, Money Market Fund, and Money Market Trust, respectively.
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of the Funds. If, in any fiscal year,
the total expenses of a Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses, but including the advisory and
administrative services fees) exceed the expense limitations applicable to that
Fund imposed by the securities regulations of any state, FICM and Furman Selz
will pay or reimburse the Fund to the extent of advisory and administrative
fees. For the six months ended March 31, 1996, the Funds did not exceed such
limitation. However, the investment advisor has voluntarily reimbursed expenses
of $103,008 to Money Market Trust.
Various banks, trust companies, broker-dealers (other than Furman Selz) or
other financial organizations (collectively, "Service Organizations") also
provide administrative services for the Funds, such as maintaining shareholder
accounts and records. The Funds pay fees (which
21
<PAGE> 59
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
vary depending upon the services provided) to Service Organizations in amounts
up to an annual rate of 0.25% of the daily net assets of the Fund's shares owned
by shareholders with whom the Service Organization has a servicing relationship.
For the six months ended March 31, 1996, First Interstate Bancorp was the only
service organization to receive payments. First Interstate Bancorp earned
$19,923 and $23,335 in such fees from the Government Money Market Fund and Money
Market Fund, respectively.
4. REPURCHASE AGREEMENTS -- The Funds may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve Board, with
member banks of the Federal Reserve System or with other brokers or dealers that
meet the credit guidelines established by the Trustees. The Funds will always
receive and maintain securities as collateral whose market value, including
accrued interest, will be at least 100% of the dollar amount invested by that
Fund in each agreement, and that Fund will make payment for such securities only
upon physical delivery or upon evidence of book entry transfer to the account of
the custodian. To the extent that any repurchase transaction exceeds one
business day, the value of the collateral is marked-to-market on a daily basis
to ensure the adequacy of the collateral. If the seller defaults, and the value
of the collateral declines, or if bankruptcy proceedings are commenced with
respect to the seller of the security, realization of the collateral by the Fund
may be delayed or limited.
5. CONCENTRATION OF CREDIT RISK -- In the pursuit of its minimum credit
risk policy, The Funds maintain diversified portfolios of money market
instruments, each of which matures in 397 days or less and is rated high quality
by at least two nationally recognized statistical rating organizations, or, if
not rated, is judged by the Board of Trustees to be of comparable quality. The
ability of the issuer of the instruments to meet its obligations may be affected
by economic developments in a specific industry, region or country.
At March 31, 1996, industry concentration of Money Market Fund's portfolio
for industries in excess of 5% of net assets were: Banking -- 11.5%,
Brokerage -- 19.0% and Financial Services -- 11.5%.
At March 31, 1996, industry concentration of Money Market Trust's portfolio
for industries in excess of 5% of net assets were: Asset-Backed
22
<PAGE> 60
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
Securities -- 12.6%, Banking -- 11.0%, Brokerage -- 15.5%, Financial
Services -- 13.7%, Food Processing -- 7.2% and Insurance -- 5.9%.
6. SHARE TRANSACTIONS -- Transactions in shares of beneficial interest for
the six months ended March 31, 1996 and the year ended September 30, 1995, were
as follows:
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
------------------------------- -----------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
MARCH 31, 1996 1995 MARCH 31, 1996 1995
-------------- -------------- -------------- ------------------
<S> <C> <C> <C> <C>
Shares sold......... 1,420,510,933 4,140,356,138 1,218,146,284 5,790,579,654
Shares issued in
reinvestment of
distributions..... 585,263 1,587,592 1,690,663 2,554,636
-------------- -------------- -------------- ----------------
1,421,096,196 4,141,943,730 1,219,836,947 5,793,134,290
Shares redeemed..... (1,441,438,181) (4,226,851,391) (1,184,206,876) (5,789,187,631)
-------------- -------------- -------------- ----------------
Net increase
(decrease)
in shares......... (20,341,985) (84,907,661) 35,630,071 3,946,659
Beginning of
period............ 109,368,436 194,276,097 162,658,123 158,711,464
-------------- -------------- -------------- ----------------
End of Period....... 89,026,451 109,368,436 198,288,194 162,658,123
============= ============= ============= ===============
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET WESTCORE PRIME
TRUST MONEY MARKET FUND
----------- ----------------------------
SIX MONTHS PERIOD ENDED YEAR ENDED
ENDED SEPTEMBER 30, MAY 31,
MARCH 31, 1996 1995* 1995
-------------- ------------- ------------
<S> <C> <C> <C>
Shares sold............................. 840,565,528 206,738,848 481,846,431
Shares issued in reinvestment
of distributions...................... 21,130 1,253 1,954
-------------- ------------- ------------
840,586,658 206,740,101 481,848,385
Shares redeemed......................... (233,206,389) (210,282,383) (492,259,778)
-------------- ------------- ------------
Net increase (decrease) in shares....... 607,380,269 (3,542,282) (10,411,393)
Beginning of period..................... 286,940,224 290,482,506 300,893,899
-------------- ------------- ------------
End of period........................... 894,320,493 286,940,224 290,482,506
============ ============= ===========
</TABLE>
* For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year-end from May 31 to September 30.
23
<PAGE> 61
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
7. SUBSEQUENT EVENTS -- On April 1, 1996, First Interstate Bancorp was
merged with and into Wells Fargo & Company ("Wells Fargo") and FICM and FICAL
became indirect wholly-owned subsidiaries of Wells Fargo. In connection with
this merger, FICM has changed its name to Wells Fargo Investment Management,
Inc. On May 17, 1996, the Trust's Board of Trustees unanimously approved a
proposed agreement and plan of reorganization between the Trust and Stagecoach
Funds, Inc. ("Stagecoach"), a family of mutual funds advised by affiliates of
Wells Fargo. The agreement will involve the conveyance of the assets and
liabilities of the Funds to corresponding portfolios of Stagecoach. Consummation
of the reorganization is subject to (i) approval by the shareholders of the
Funds at a meeting expected to be held on or about July 16, 1996, and (ii) the
satisfaction of normal closing conditions.
24
<PAGE> 62
P A C I F I C A
Financial Highlights
GOVERNMENT MONEY MARKET FUND
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1996 ------------------------------------
(UNAUDITED) 1995 1994
---------------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period....................... $ 1.000 $ 1.000 $ 1.000
------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................... 0.024 0.047 0.031
Net realized gain on investments......................... -- 0.004 --
------- -------- --------
Total from Investment Operations......................... 0.024 0.051 0.031
------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income..................... (0.024) (0.047) (0.031)
Dividends from net realized gain on investments.......... -- (0.004) --
------- -------- --------
Total Distributions...................................... (0.024) (0.051) (0.031)
------- -------- --------
Net Asset Value, End of Period............................. $ 1.000 $ 1.000 $ 1.000
======= ======== ========
Total Return............................................... 2.41% 5.22% 3.16%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)................. $ 89,026 $ 109,368 $ 194,276
Ratios of Expenses to Average Net Assets................. 0.81%* 0.79% 0.77%
Effect of Waivers on above Ratio......................... 0.05%* 0.02% 0.02%
Ratios of Net Investment Income to Average
Net Assets............................................. 4.83%* 5.08% 3.07%
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------------------
1993 1992 1991
-------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period....................... $ 1.000 $ 1.000 $ 1.000
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................................... 0.027 0.039 0.061
Net realized gain on investments......................... -- -- --
-------- -------- --------
Total from Investment Operations......................... 0.027 0.039 0.061
-------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income..................... (0.027) (0.039) (0.061)
Dividends from net realized gain on investments.......... -- -- --
-------- -------- --------
Total Distributions...................................... (0.027) (0.039) (0.061)
-------- -------- --------
Net Asset Value, End of Period............................. $ 1.000 $ 1.000 $ 1.000
======== ======== ========
Total Return............................................... 2.77% 3.99% 6.30%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)................. $ 188,934 $ 184,705 $ 171,375
Ratios of Expenses to Average Net Assets................. 0.83% 0.82% 0.85%
Effect of Waivers on above Ratio......................... 0.01% 0.00% 0.03%
Ratios of Net Investment Income to Average
Net Assets............................................. 2.73% 3.85% 6.13%
</TABLE>
* Annualized.
25
<PAGE> 63
P A C I F I C A
Financial Highlights (Continued)
MONEY MARKET FUND
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1996 ------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income........................ 0.026 0.053 0.033 0.030 0.040 0.063
Net realized gain on investments............. 0.002 -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment Operations............. 0.028 0.053 0.033 0.030 0.040 0.063
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income......... (0.026) (0.053) (0.033) (0.030) (0.040) (0.063)
Dividends from net realized gain on
investments................................ -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions.......................... (0.026) (0.053) (0.033) (0.030) (0.040) (0.063)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period................. $ 1.002 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return................................... 2.60% 5.47% 3.37% 3.04% 4.07% 6.47%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)..... $198,682 $162,658 $158,711 $160,475 $126,727 $136,552
Ratios of Expenses to Average Net Assets..... 0.68%* 0.64% 0.63% 0.64% 0.68% 0.73%
Effect of Waivers on above Ratio............. 0.05%* 0.10% 0.10% 0.10% 0.08% 0.01%
Ratios of Net Investment Income to Average
Net Assets................................. 5.20%* 5.35% 3.31% 2.99% 3.95% 6.33%
</TABLE>
* Annualized.
26
<PAGE> 64
P A C I F I C A
Financial Highlights (Continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
MONEY MARKET
TRUST(1) WESTCORE PRIME MONEY MARKET FUND
---------------- ----------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED MAY 31,
MARCH 31, 1996 SEPTEMBER 30, ---------------------------------------------------------
(UNAUDITED) 1995* 1995 1994 1993 1992 1991(A)
---------------- -------------- -------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- ------ ------ -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income......... 0.03 0.02 0.05 0.03 0.03 0.05 0.05
-------- ------- ------- ------- ------ ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment
income...................... (0.03) (0.02) (0.05) (0.03) (0.03) (0.05) (0.05)
-------- ------- ------- ------- ------ ------ -------
Net Asset Value, End of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ====== ====== =======
Total Return.................... 2.77% 5.70%+ 5.05% 3.21% 2.94% 4.56% 6.48%+
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands).................. $894,244 $286,863 $290,483 $300,894 $74,375 $87,039 $113,141
Ratios of Expenses to Average
Net Assets.................. 0.19%+ 0.19%+ 0.17% 0.18% 0.46% 0.48% 0.69%+
Effect of Waivers on above
Ratios...................... 0.36%+ 0.92%+ 0.90% 0.84% 0.62% 0.56% 0.39%+
Ratios of Net Investment
Income to
Average Net Assets.......... 5.45%+ 5.70%+ 5.06% 3.21% 2.94% 4.56% 6.48%+
</TABLE>
(1) The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust
on October 1, 1995.
* For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
(a) The Westcore Prime Money Market Fund commenced operations on September 17,
1990.
+ Annualized
27
<PAGE> 65
P A C I F I C A
BOARD OF TRUSTEES
<TABLE>
<S> <C>
JOSEPH N. HANKIN*+ President, Westchester
Community College
RICHARD A. WEDEMEYER* Vice President, Performance
Advantage, Inc.
JOHN E. HEILMANN* Former Chairman, Distillers
Somerset, Inc.
DENNIS W. DRAPER Associate Professor of
Finance, University of
Southern California
JACK D. HENDERSON, ESQ. Attorney-at-Law
* Member of Audit Committee
+ Member of Nominating
Committee
- ----------------------------------------------------------------
OFFICERS
MICHAEL C. PETRYCKI President
STEVEN D. BLECHER Executive Vice President
JOAN V. FIORE Vice President & Secretary
JOHN J. PILEGGI Vice President & Treasurer
DONALD E. BROSTROM Assistant Treasurer
</TABLE>
<PAGE> 66
INVESTMENT ADVISOR
Wells Fargo Investment Management, Inc.
P.O. Box 7066
San Francisco, California 94120-7066
ADMINISTRATOR
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
Pacifica Funds Distributor Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
Wells Fargo Bank, N.A.
P.O. Box 7066
San Francisco, California 94120-7066
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE PACIFICA FAMILY
OF MUTUAL FUNDS. ITS USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES
IS AUTHORIZED ONLY IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE TRUST'S
CURRENT PROSPECTUS.
[PACIFICA LOGO]
<PAGE> 67
[PACIFICA LOGO]
PACIFICA OREGON
TAX-EXEMPT FUND
PACIFICA ARIZONA
TAX-EXEMPT FUND
PACIFICA CALIFORNIA
TAX-EXEMPT FUND
PACIFICA CALIFORNIA
SHORT-TERM TAX-EXEMPT FUND
PACIFICA NATIONAL
TAX-EXEMPT FUND
SEMI-ANNUAL REPORT
MARCH 31, 1996
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, FIRST INTERSTATE, WELLS FARGO OR ANY OTHER BANK, AND ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. MUTUAL FUND SHARES INVOLVE CERTAIN
INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
<PAGE> 68
[PACIFICA LOGO]
- ------------------------------------------------------------------------------
May 17, 1996
Dear Shareholder:
We are pleased to present the March 31, 1996 Semi-Annual Report for the
Pacifica Funds. This report includes unaudited financial statements, as well as
a six-month look back at the economic factors which influenced the Funds'
performance and our expectations for the remainder of this fiscal year.
FIRST INTERSTATE AND WELLS FARGO
On April 1, 1996, First Interstate Bancorp merged into Wells Fargo &
Company ("Wells Fargo"). As a result of this merger, First Interstate Capital
Management, Inc. ("FICM"), the investment advisor to the Pacifica Funds, became
a wholly-owned subsidiary of Wells Fargo. Subsequently, FICM was renamed Wells
Fargo Investment Management, Inc. ("WFIM").
By law, the merger of First Interstate Bancorp into Wells Fargo resulted in
the automatic termination of the then current advisory agreements with FICM. You
may have already received, or will shortly be receiving, a proxy/prospectus that
describes proposed replacement advisory agreements with WFIM. The
proxy/prospectus also describes a proposed reorganization of each Pacifica Fund
into a corresponding portfolio of Stagecoach Funds, Inc., an open-end investment
company advised by Wells Fargo Bank, N.A., which is also a wholly-owned
subsidiary of Wells Fargo.
ECONOMIC AND INVESTMENT MARKET COMMENT
Despite volatility in the financial markets, uncertainty about the federal
budget debate, a harsh winter in most of the U.S. and some mixed economic
signals, the economy developed better than expected momentum at the end of 1995
and in the first quarter of 1996, growing at a surprising 2.5% according to the
Department of Commerce's Gross Domestic Product index (GDP). This momentum is
expected to continue into the second quarter, then slow during the second half
of 1996. Modest overall growth should help keep inflationary pressures in check,
despite some concern about energy and grain prices and potential increases in
wages.
This has generally been good news for the financial markets. The stock
market extended 1995's impressive gains into early 1996, despite some
<PAGE> 69
turbulence and investor nervousness. Interest rate sensitive stocks, such as
banks, performed well as did telephone utilities and some insurance companies.
Technology stocks suffered a sell off in the fourth quarter of 1995 but have
begun to rebound in 1996. Traditional early cycle industries, including
retailing, have done well, but for reasons discussed below, we do not believe
consumer spending will be sufficiently robust to sustain their advance.
We had expected equities to produce 8 to 12% returns for all of 1996. The
Dow Jones Industrial Average, however, returned 9.8% during the first three
months of the year. Broader market indices such as the S&P 500 Index produced a
return of 5.4% over the same period and the S&P Midcap Index returned 6.2%. The
comparative strength of the Dow Jones Industrial Average can be attributed to
continuing strong flows of investment dollars into equity mutual funds and the
surprising resilience of the economy.
Results for the bond markets were strong throughout 1995, based on the
perception that the economy was heading into a recession and that the Federal
Reserve would continue its policy of lowering interest rates. Expectations
changed and the market sold off sharply, with yields rising more than 1% after
the March 8 Labor Department statistics showed surprising jobs growth. This is
likely to translate into better than expected economic growth in the second
quarter. Although the price of gold spiked up in February and there have been
recent increases in energy and grain prices, we do not expect the Consumer Price
Index to be significantly above 3% for 1996. Higher interest rates and their
moderating effect on housing should reduce economic growth later in the year and
allow the bond market to recover somewhat, especially if the Federal Reserve
recognizes the need to resume easing at that time.
Among general economic indicators of note is the resurgence in consumer
spending during February and March after having been fairly restrained during
the Christmas season. However, this was attributable in large part to tax
refunds which will not continue to sustain spending growth. In addition, the
income needed to service the growth in credit card debt, the increase in
personal savings, and the record dollars flowing into mutual funds all represent
reductions in future consumer spending.
Spending on capital assets slowed in early 1996, after significant growth
in 1994 and 1995. The spending which did occur went largely to enhance
efficiency. Looking ahead, $120 billion is expected to be spent on information
systems during 1996. Spending on physical plant capacity is less clear since the
trend has been to acquire rather than to build capacity. Industrial production
has risen modestly, but recent declines in inventories suggest that production
may be due for an upswing.
By the end of the year, we expect slower overall growth and moderate
inflation fears. The stock market is expected to continue to provide investors
with good opportunities for a positive return, although not as high
2
<PAGE> 70
as in 1995. We expect the bond market to recover from its recent setback as
inflation becomes less of an issue and the economy fails to sustain its
surprising growth.
We thank you for entrusting us with the management of your money. We will
continue to exert our best efforts to bring you rewarding results.
/s/ MICHAEL C. PETRYCKI
------------------------
Michael C. Petrycki
President
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", and "S&P MidCap Index(R)", are
registered trademarks of McGraw-Hill, Inc. and "Dow Jones(R)" is a registered
trademark of the Dow Jones Company. The S&P 500 Index is an unmanaged index of
500 widely held common stocks representing, among others, industrial, financial,
utility and transportation companies listed or traded on national exchanges or
over-the-counter markets. The S&P MidCap Index is an unmanaged index listing
midcap common stocks. The Dow Jones Industrial Average is a price-weighted
average of thirty blue chip stocks listed on the New York Stock Exchange.
Economic statistics including the Consumer Price Index and the Gross Domestic
Product are provided by the United States Department of Labor and the Department
of Commerce. This is neither an offer to sell nor a solicitation of an offer to
buy any of these securities. The offer can be made only by the proxy/prospectus.
3
<PAGE> 71
TAX-EXEMPT MARKET OVERVIEW
Participants in the bond markets had a roller-coaster ride during the first
quarter of 1996 as price volatility reached record highs. Since yields hit their
lows in mid-February, rates have increased by 12% to 15%, more than erasing any
price appreciation for the year. The Lehman Brothers Municipal Bond Index ended
the six month period with a 2.87% total return.
Despite the low returns for municipal securities, their price outperformed
comparable securities in the taxable market. Yields tightened to Treasury
benchmarks across the maturity spectrum by almost 3%, as spreads came back
toward their historical averages. The municipal yield curve has continued to
steepen, due to the defensive stance of retail investors and weak demand from
mutual funds. Over the past two months, prices have fallen and the housing and
pre-refunded sectors have outperformed the overall tax-exempt market due to
their composition of higher coupon bonds, which are more resilient to market
downturns.
PACIFICA OREGON TAX-EXEMPT FUND
New issue supply in Oregon has been light, but demand is even lighter.
Retail investors have been shying away from municipal bond funds, in favor of
equities, eliminating the demand for longer bonds favored by those funds. Very
few purchases have been made by individual investors. Their interest has been
primarily in the short end, keeping this sector relatively more expensive.
Consequently, Oregon paper is trading even with national yield levels. Supply in
April and bond issues on the May ballot could keep Oregon tax-exempt prices at
relatively "cheap" levels.
The Pacifica Oregon Tax-Exempt Fund's performance was in line with that of
other Oregon funds with a 2.35% total return after expenses (2.38% for
Institutional Shares) for the six month period. Funds with longer average
maturities experienced more price depreciation than shorter funds as yields rose
over the past two months, but had better returns for the six month period. The
current strategy in the Fund is to swap out of callable issues that may be
vulnerable to large price declines with small upticks in rates.
PACIFICA ARIZONA TAX-EXEMPT FUND
The most remarkable aspect of the Arizona market during the last six months
has been the lack of issuance. The Fund has sought to extend average maturity
from the eight year area to the ten to fourteen year range over the past
quarter. This process has been slowed by the scarcity of Arizona issues
available for purchase.
The Fund's return was 1.37% after expenses (1.51% for Institutional Shares)
for the six months ended March 31, as compared to the Lehman Brothers Municipal
Bond Index at 2.87%. The Fund's average maturity and overall sensitivity to
interest rate changes have been increased throughout the past six months, but
its structure remains more conservative than the benchmark.
4
<PAGE> 72
PACIFICA CALIFORNIA TAX-EXEMPT FUND
PACIFICA CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
The California tax-exempt market has moved lower since the first of the
year, but California General Obligations (G.O.'s) were off less than the overall
market. The yield on California G.O.'s rose about 30 basis points for 30-year
maturities, to 5.85%. Comments suggesting that the major rating services were
becoming more comfortable with California debt was largely responsible for the
stronger relative performance.
Orange County announced plans to issue new debt in May or June to repay
outside vendors and note holders. Expectations were that the bonds would be
insurable, and therefore carry a 'AAA' rating. If the offering is successful,
the county would effectively emerge from bankruptcy. The county hopes to put on
a hedge to guard against the possibility of higher interest rates.
The Pacifica California Short-Term Tax-Exempt Fund had a total return of
1.80% (1.90% for Institutional Shares) for the first half of its fiscal year.
With an average maturity of less than three years, the Fund's defensive posture
provides good insulation against market volatility.
For the six month period ended March 31, 1996, the Pacifica California
Tax-Exempt Fund posted a return of 2.78% after expenses (2.85% for Institutional
Shares), while the Lehman Brothers California Tax-Exempt Index was up 3.34%. The
Fund's large concentration of higher-coupon bonds, along with its somewhat
shorter maturity structure versus its benchmark, held price return down
somewhat.
PACIFICA NATIONAL TAX-EXEMPT FUND
As interest rates bottomed in mid-February, several issuers jumped at the
possibility of refunding their outstanding debt. Even though most of the
proposed issues ultimately did not get done, the overhang of supply kept a
damper on municipal bond performance. Most new municipal issues are heavily
weighted in long maturities, giving this range more to work off. Cashflows to
mutual bond funds have been very light and investors have sustained their
defensive posture contributing to the steepening yield curve.
The Pacifica National Tax-Exempt Fund had a 2.01% return after expenses
(2.01% for the Institutional Shares, also) during the first half of its fiscal
year. The strategy of maturity extension worked well for the first four months
of the period, but performance has been dampened by the dramatic rise in rates
in March. The strategy continues to call for higher quality issues with good
call protection. The Fund will continue to lengthen its duration because its
advisor believes that the current high rates are an opportunity to increase
average yield.
Past performance is not a guarantee of future results. When redeemed, shares of
the Funds may be worth more or less than their original cost. Shares of the Fund
are not obligations of nor guaranteed by the U.S. Government, First Interstate
Bancorp, or Wells Fargo Bank, and are not insured by FDIC. The Lehman Brothers
Municipal Bond Index and the Lehman Brothers California Tax Exempt Index are
unmanaged indexes composed of a broad base of municipal and California
Tax-Exempt securities, respectively.
5
<PAGE> 73
P A C I F I C A
OREGON TAX-EXEMPT FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
OREGON MUNICIPAL
OBLIGATIONS -- 92.24%
$ 320,000 Benton County Hospital Facility,
Good Samaritan Hospital
6.25%, 10/01/2009............. NR/A $ 316,800 $ 327,085
250,000 Chemeketa Community College
District (MBIA)
6.50%, 07/01/2007............. Aaa/AAA 253,892 276,027
500,000 City of Salem
5.875%, 01/01/2007............ A1/A+ 496,250 513,960
495,000 Clackamas County Health
District HFA, GNMA, Jennings
Lodge 7.500%, 10/20/2031...... NR/AAA 495,000 533,145
300,000 Clackamas County HFA, Sisters of
Providence 6.375%,
10/01/2005.................... Aaa/NR 307,376 320,415
370,000 Clackamas CSD #1, Canby
6.50%, 07/01/2007............. A/A 362,796 392,970
370,000 Clackamas CSD #7J, Lake Oswego
5.70%, 06/15/2010............. Aa/NR 385,927 377,814
565,000 Clackamas CSD #12
4.75%, 06/01/2006............. A/A+ 562,299 544,423
1,000,000 Clackamas & Washington Counties
School District #3
5.875%, 10/01/2009............ A1/AA- 997,260 1,022,130
250,000 Clackamas & Washington Counties
School District #23J, Tigard -
Tualatin 5.50%, 06/01/2006.... A1/NR 255,315 259,348
75,000 Deschutes County Health
District, HFA, St. Charles
Hospital
7.50%, 01/01/2008............. A1/NR 75,000 79,390
1,000,000 Deschutes & Jefferson Counties
School District #2J, Redmond
5.60%, 06/01/2009
(MBIA)........................ Aaa/AAA 1,000,000 1,017,570
250,000 Eugene Electric
6.40%, 08/01/2007............. A1/AA 246,313 264,105
750,000 Lane County Community College
District 5.20%, 06/01/2005.... Aa/A+ 766,387 769,477
Lane CSD #4J:
250,000 5.375%, 07/01/2009............ Aa/NR 252,601 250,128
2,000,000 5.375%, 07/01/2013............ Aa/NR 2,024,183 1,949,360
Marion & Polk Counties School
District #24J, Salem:
100,000 5.90%, 10/01/2007............. NR/AAA 102,626 107,064
750,000 5.00%, 10/01/2012............. A1/A+ 723,315 704,625
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
6
<PAGE> 74
P A C I F I C A
OREGON TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
OREGON MUNICIPAL OBLIGATIONS
(CONTINUED)
$ 600,000 Medford HFA, Rogue Valley Health
6.80%, 12/01/2011 (MBIA)...... Aaa/AAA $ 603,188 $ 642,930
Metropolitan Service District:
500,000 Convention Center
6.25%, 01/01/2013............. Aa/AA+ 536,129 527,040
1,000,000 Waste Disposal Revenue
5.125%, 07/01/2011............ A/A 990,000 930,740
Milwaukie:
425,000 6.25%, 06/01/2010............... A1/NR 422,420 442,531
460,000 6.25%, 06/01/2011............... A1/NR 460,000 477,084
640,000 Multnomah County
Juvenile Justice Complex
6.00%, 08/01/2012............. Aa/A 629,024 653,824
500,000 Multnomah County Library
District
6.00%, 10/01/2010............. Aa1/NR 496,820 525,285
250,000 Multnomah CSD #39, Corbett
5.75%, 12/01/2008............. Aaa/AAA 248,782 260,100
1,290,000 Multnomah CSD #40
5.625%, 06/01/2012............ NR/AA- 1,311,888 1,293,844
1,000,000 North Clackamas Parks &
Recreation 5.70%,
04/01/2013.................... NR/A- 1,043,338 980,280
250,000 Oregon State Bond Bank
5.50%, 01/01/2013............. A/NR 250,000 241,615
Oregon State Department of
General Services COPS:
250,000 7.05%, 01/15/2006 (MBIA)...... Aaa/AAA 257,247 270,775
1,500,000 6.25%, 09/01/2015 (AMBAC)..... Aaa/AAA 1,480,445 1,559,550
1,000,000 Oregon State Health, Housing &
Cultural Facility Authority,
Lewis & Clark, Series A
6.125%, 10/01/2024 (MBIA)..... Aaa/AAA 987,030 1,033,640
2,000,000 Oregon State Higher Education
Building, Series A
6.30%, 08/01/2013............. Aa/AA- 2,000,000 2,127,380
Oregon State Housing & Community
Services:
625,000 6.80%, 07/01/2013............... A1/A+ 624,396 649,525
1,350,000 6.40%, 07/01/2018............... Aa1/NR 1,350,000 1,386,599
500,000 6.80%, 07/01/2027............... Aa1/NR 510,000 520,805
575,000 Oregon State Housing,
Educational & Cultural
Facility Authority Revenue
6.75%, 07/01/2021............. NR/A+ 573,676 643,143
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
7
<PAGE> 75
P A C I F I C A
OREGON TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
OREGON MUNICIPAL OBLIGATIONS
(CONTINUED)
Oregon State Housing Finance
Authority:
$ 210,000 7.05%, 07/01/2009............... Aa1/NR $ 210,000 $ 219,528
160,000 7.375%, 07/01/2010.............. Aa1/NR 163,374 166,272
1,000,000 Oregon State, Series B
6.375%, 08/01/2024............ Aa/AA- 1,014,400 1,058,630
Oregon State Veterans Welfare:
175,000 9.00%, 10/01/2005............... Aa/AA- 195,126 229,551
480,000 7.25%, 07/01/2007............... Aa/AA- 557,311 570,912
255,000 7.30%, 01/01/2008............... Aa/AA- 287,841 304,243
1,000,000 6.875%, 12/01/2013.............. Aa/AA- 1,003,125 1,073,040
250,000 Port of Portland International
Airport Revenue
6.75%, 07/01/2009 (MBIA)...... Aaa/AAA 249,726 273,055
1,000,000 Portland GO, Series B
4.625%, 04/01/2013............ Aa/NR 951,889 888,420
Portland Sewer System:
150,000 6.05%, 06/01/2009............... A1/A+ 150,000 158,706
1,500,000 5.25%, 03/01/2010............... A1/A+ 1,483,635 1,429,425
1,390,000 6.00%, 10/01/2012 (FGIC)........ Aaa/AAA 1,485,331 1,439,095
1,000,000 6.25%, 06/01/2015 (FGIC)........ Aaa/AAA 1,018,988 1,044,080
Portland Water System:
1,000,000 5.125%, 08/01/2008.............. Aa/NR 992,240 993,520
500,000 5.50%, 08/01/2015............... Aa/NR 500,000 491,490
40,000 Tri-County Metro Transportation
Revenue 5.70%, 08/01/2013..... A1/AA+ 40,966 39,975
2,000,000 Tri-County Metro Transportation
District, Oregon Light Rail
Extension 6.00%, 07/01/2012... Aa/AA+ 1,985,000 2,043,980
2,000,000 Washington County Criminal
Justice Facilities
6.00%, 12/01/2013............. Aa/AA 2,016,736 2,075,740
725,000 Washington CSD #88J, Sherwood
6.10%, 06/01/2012 (FSA)....... Aaa/AAA 739,056 758,328
1,040,000 Western Lane Hospital,
Sisters of St. Joseph
7.125%, 08/01/2017 (MBIA)..... Aaa/AAA 1,077,339 1,147,068
----------- -----------
TOTAL OREGON MUNICIPAL
OBLIGATIONS................... 40,519,806 41,280,784
----------- -----------
PUERTO RICO MUNICIPAL OBLIGATIONS -- 5.09%
40,000 Puerto Rico Aqueduct & Sewer
Authority 10.250%,
07/01/2009.................... Aaa/AAA 46,563 56,652
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
8
<PAGE> 76
P A C I F I C A
OREGON TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
PUERTO RICO MUNICIPAL
OBLIGATIONS (CONTINUED)
$1,000,000 Puerto Rico Electric Power
6.50%, 07/01/2006
(MBIA)........................ Aaa/AAA $ 1,101,906 $ 1,125,530
Puerto Rico Housing Finance
Authority:
250,000 7.50%, 10/15/2012............... Aaa/AAA 250,000 264,522
350,000 7.50%, 04/01/2022............... NR/AA 349,562 370,251
425,000 Puerto Rico Industrial Medical &
Environmental PCR, Upjohn
7.50%, 12/01/2023............. A1/AA- 440,288 463,242
----------- -----------
TOTAL PUERTO RICO MUNICIPAL
OBLIGATIONS................... 2,188,319 2,280,197
----------- -----------
FLOATING RATE MUNICIPAL DEMAND
NOTES -- 1.56%
100,000 Grapevine, Texas IDA Revenue
3.80%, 04/01/1996............. P1/NR 100,000 100,000
400,000 New York City Municipal Water
Financial Authority, Water and
Sewer System Revenue
3.800%, 04/01/1996............ VMIG1/A1+ 400,000 400,000
200,000 Umatilla County HFA, Hospital
Revenue, Franciscan Health
System 3.80%, 04/01/1996...... VMIG1/A1+ 200,000 200,000
----------- -----------
TOTAL FLOATING RATE MUNICIPAL
DEMAND NOTES.................. 700,000 700,000
----------- -----------
MONEY MARKET FUND -- 0.09%
33,694 Goldman Sachs Institutional
Liquid Assets Tax-Exempt
Diversified Portfolio......... 33,694 33,694
----------- -----------
TOTAL INVESTMENTS -- 98.98%..... $43,441,819** 44,294,675
===========
OTHER ASSETS LESS
LIABILITIES -- 1.02%.......... 457,722
-----------
NET ASSETS -- 100.00%........... $44,752,397
===========
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
9
<PAGE> 77
P A C I F I C A
ARIZONA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
ARIZONA MUNICIPAL
OBLIGATIONS -- 98.97%
$ 500,000 Arizona State - Wastewater
Treatment Financial Revenue
Series A 5.60%, 07/01/2012
(AMBAC)....................... Aaa/AAA $ 494,700 $ 500,700
Bullhead City, Special
Assessment:
130,000 6.10%, 01/01/2002............... Baa/NR 133,785 136,401
170,000 6.10%, 01/01/2003............... Baa/NR 174,704 178,605
500,000 Central Arizona Water
Conservation District Contract
Revenue 4.75%, 05/01/2008
(MBIA)........................ Aaa/AAA 497,679 472,455
405,000 Coronino County University
School District No. 001 5.70%,
07/01/2001 (AMBAC)............ Aaa/AAA 409,523 425,586
Coronino & Yavapai County Joint
University School District No.
9 - Sedona:
200,000 Series A, 6.10%, 07/01/2000..... Baa1/A- 200,000 209,726
650,000 Series B, 5.40%, 07/01/2002..... NR/A- 650,000 663,416
300,000 Glendale
5.05%, 07/01/2002 (FGIC)........ Aaa/AAA 300,000 307,983
Glendale Improvement District
No. 59:
110,000 6.00%, 01/01/2001............... A/A- 112,493 115,687
175,000 6.00%, 01/01/2002............... A/A- 178,819 184,359
700,000 Glendale High School District
No. 205, Projects of 1993 -
Series A 5.10%, 07/01/2005.... A1/AA- 700,000 705,859
235,000 Glendale Water & Sewer Authority
9.00%, 07/01/2003............... Aaa/AAA 293,917 295,994
500,000 Maricopa County Community
College District Building
Revenue
5.05%, 07/15/2004 (MBIA)........ Aaa/AAA 500,000 505,875
Maricopa County School District
No. 3 - Tempe Elementary
(FGIC):
250,000 4.90%, 07/01/2002............... Aaa/AAA 248,208 253,680
330,000 5.00%, 07/01/2003............... Aaa/AAA 327,439 335,495
1,500,000 Maricopa County School District
No. 4, Mesa
University - Series E 5.550%,
07/01/2004 (FGIC)............. Aaa/AAA 1,527,796 1,535,235
300,000 Maricopa County School District
No. 6, Washington Elementary -
Series A 8.50%, 07/01/1998
(AMBAC)....................... Aaa/AAA 319,412 328,164
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
10
<PAGE> 78
P A C I F I C A
ARIZONA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
ARIZONA MUNICIPAL OBLIGATIONS
(CONTINUED)
$ 150,000 Maricopa County School District
No. 8 - Osborn 6.10%,
07/01/2004.................... A1/A $ 153,396 $ 161,508
Maricopa County School District
No. 11 - Peoria University:
800,000 6.05%, 07/01/2003 (MBIA)........ Aaa/AAA 824,878 854,240
1,500,000 Projects of 1994 - 5.50%,
07/01/2010.................... A/A+ 1,473,305 1,472,280
415,000 Maricopa County School District
No. 17 - Tolleson Elementary
5.80%, 07/01/2007 (AMBAC)..... Aaa/AAA 415,000 431,509
495,000 Maricopa County School District
No. 40 - Glendale Projects of
1994 - Series C, 5.00%,
07/01/2010 (FGIC)............. Aaa/AAA 467,513 474,260
395,000 Maricopa County School District
No. 66 - Roosevelt Elementary
5.50%, 07/01/2001 (AMBAC)..... Aaa/AAA 394,631 408,975
1,000,000 Maricopa County School District
No. 69 - Paradise, 5.40%,
07/01/2012 (MBIA)............. Aaa/AAA 994,540 979,680
500,000 Maricopa County School District
No. 98 - Fountain Hills
5.125%, 07/01/2010 (FGIC)....... Aaa/AAA 496,205 483,705
Maricopa County School District
No. 210 - Phoenix:
500,000 Series A, 5.40%, 07/01/2009..... Aa/AA 497,555 501,335
500,000 Series A, 5.50%, 07/01/2010..... Aa/AA 489,000 500,995
150,000 Maricopa County School District
No. 214 - Tolleson University
5.45%, 07/01/2004 (FGIC)...... Aaa/AAA 150,000 154,488
500,000 Navajo County School District
No. 32 - Blue Ridge 5.80%,
07/01/2007 (FGIC)............. Aaa/AAA 495,485 524,255
100,000 Peoria Improvement District
Special Assessment No. 8801
7.30%, 07/01/1999............. NR/BBB 102,218 106,172
215,000 Phoenix - Special Assessment -
Central Avenue Improvement
District, 7.00%, 01/01/1999... A/A+ 223,554 227,332
750,000 Phoenix Street & Highway User
6.40%, 07/01/2004............. A1/AA 750,000 820,950
Pima County:
50,000 7.25%, 07/01/1998............... Aa/A+ 51,282 53,339
325,000 6.20%, 07/01/2004............... Aa/A+ 343,940 350,535
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
11
<PAGE> 79
P A C I F I C A
ARIZONA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
ARIZONA MUNICIPAL OBLIGATIONS
(CONTINUED)
$ 75,000 Pima County Flood Control
District, 5.350%,
07/01/2000.................... Aa/A+ $ 75,280 $ 77,512
150,000 Pima County IDA
6.00%, 04/01/2001 (MBIA)........ Aaa/AAA 150,000 159,260
Pima County University School
District No. 1 - Tucson:
300,000 Series D, 5.90%, 07/01/2005..... Aaa/AAA 316,070 318,324
800,000 Series D, 6.10%, 07/01/2012..... Aaa/AAA 826,851 833,312
Pima County University School
District No.
10 - Amphitheater:
75,000 Series E, 6.00%, 07/01/2004..... A/A+ 75,477 80,408
250,000 Series E, 6.50%, 07/01/2005..... A/A+ 255,187 276,808
Salt River Electric Systems
Revenue - Series A:
500,000 5.30%, 01/01/2003............... Aa/AA 504,708 516,135
250,000 5.625%, 01/01/2006.............. Aa/AA 246,413 261,238
Salt River Project Agricultural
Improvement:
500,000 Series A, 5.75%, 01/01/2013..... Aa/AA 489,225 504,225
2,000,000 Series C, 5.00%, 01/01/2016..... Aa/AA 1,953,460 1,809,840
250,000 Tucson 5.80%, 07/01/2005........ Aaa/AAA 247,758 264,600
Tucson Street & Highway User
Revenue (AMBAC):
400,000 5.70%, 07/01/2001............... A1/A+ 405,396 420,208
500,000 5.10%, 07/01/2003............... Aaa/AAA 515,633 511,370
500,000 5.500%, 07/01/2012 (MBIA)....... Aaa/AAA 506,642 494,925
500,000 University of Arizona - Series B
4.90%, 08/01/2008............... Aaa/AAA 497,680 480,400
100,000 Yavapai County Community College
District Revenue 5.20%,
07/01/2000.................... NR/A- 100,000 101,824
500,000 Yuma County High School District
No. 70, 5.70%, 07/01/2006
(FGIC)........................ Aaa/AAA 497,840 521,545
500,000 Yuma County Municipal Property
Corp. Revenue, Series A,
5.125%, 07/01/2008 (AMBAC).... Aaa/AAA 496,551 495,385
----------- -----------
TOTAL ARIZONA MUNICIPAL
OBLIGATIONS................... 23,551,148 23,788,097
----------- -----------
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
12
<PAGE> 80
P A C I F I C A
ARIZONA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
FLOATING RATE MUNICIPAL DEMAND
NOTES+ -- 1.25%
$ 300,000 Maricopa County, 3.80%,
04/01/1996.................... NR/NR $ 300,000 $ 300,000
----------- -----------
MONEY MARKET FUNDS -- 0.70%
3,021 Aim Institutional Tax-Free Money
Market Fund, 3.220%........... NR/NR 3,021 3,021
164,603 Goldman Sachs Institutional
Liquid Assets Tax-Exempt
Diversified Portfolio,
3.120%........................ NR/NR 164,603 164,603
----------- -----------
TOTAL MONEY MARKET FUNDS........ 167,624 167,624
----------- -----------
TOTAL INVESTMENTS -- 100.92%.... $24,018,772** 24,255,721
===========
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.92)%............. (220,180)
-----------
NET ASSETS -- 100.00%........... $24,035,541
===========
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
13
<PAGE> 81
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS -- 98.45%
$2,000,000 Alameda County Capital
Projects 6.25%,
06/01/2006................ A/A $ 2,031,101 $ 2,105,552
California EFAR:
2,000,000 Pooled College &
University
Financing - Series B
6.125%, 06/01/2009........ Baa/NR 1,980,000 2,006,748
University of Southern
California Project, Series
B:
1,380,000 6.75%, 10/01/2015......... Aa/AA 1,388,196 1,489,304
3,200,000 6.00%, 02/15/2017......... Aa/AA 3,136,487 3,237,747
California Health Facilities
Financing:
1,000,000 Episcopal Homes
7.30%, 07/01/2000 (CMI)... NR/A 1,017,001 1,017,909
4,000,000 San Diego Hospital
Association, Series A
6.20%, 08/01/2012......... Aaa/AAA 3,951,507 4,098,916
2,000,000 Scripps Memorial Hospital,
Series A 6.40%,
10/01/2012................ Aaa/AAA 1,988,796 2,097,442
2,000,000 Scripps Research
Institute, Series A
6.625%, 07/01/2014........ A/NR 1,994,453 2,106,240
California State Department
Water Residential, Central
Valley Project Revenue:
5,000,000 Series J, 6.00%,
12/01/2007................ Aa/AA 4,937,820 5,382,615
1,500,000 Series M, 5.00%,
12/01/2012................ Aa/AA 1,458,240 1,395,476
California State GO:
1,000,000 7.00%, 03/01/2003......... Aa/A+ 1,001,107 1,123,845
1,000,000 6.70%, 02/01/2004......... Aa/A+ 1,008,822 1,114,535
3,000,000 6.00%, 10/01/2010 (MBIA).. Aaa/AAA 3,271,919 3,167,040
3,000,000 5.75%, 03/01/2015
(AMBAC)................... Aaa/AAA 2,883,085 2,975,940
California State Public
Works Board:
2,000,000 Community Colleges, Series
A 6.625%,
09/01/2007.................. A1/A 1,975,740 2,156,954
3,000,000 Department of Corrections,
Series A 6.400%,
11/01/2010.................. Aaa/AAA 2,971,935 3,259,554
1,800,000 Chino Basin Municipal Water
District
6.00%, 08/01/2016
(AMBAC)................... Aaa/AAA 1,762,701 1,819,165
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
14
<PAGE> 82
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS (CONTINUED)
$1,000,000 Contra Costa County COPS
7.75%, 06/01/2003
(AMBAC)................... Aaa/AAA $ 1,077,616 $ 1,122,806
2,000,000 Contra Costa TRANS, Series A
6.50%, 03/01/2009......... A1/A+ 1,966,854 2,216,472
Contra Costa Water
Authority - Water
Treatment Revenue - (FCIC)
Series A:
2,505,000 5.70%, 10/01/2012......... Aaa/AAA 2,485,828 2,510,005
3,240,000 6.00%, 10/01/2013......... Aaa/AAA 3,190,720 3,311,351
1,000,000 East Bay Municipal Utilities
6.00%, 06/01/2012
(FGIC).................... Aa/AA- 954,029 1,017,981
2,025,000 East Bay Regional Park
District, Series B
6.375%, 09/01/2011........ Aa/AA- 2,014,720 2,123,447
3,000,000 Fresno Water System Revenue
6.00%, 06/01/2016
(FGIC).................... Aaa/AAA 2,961,518 3,031,551
2,000,000 Kern High School District,
Series D
5.60%, 08/01/2012......... Aaa/AAA 2,000,000 2,138,944
3,000,000 Long Beach HFA Revenue
6.00%, 11/01/2008
(AMBAC)................... Aaa/AAA 2,993,037 3,239,706
Long Beach Water Revenue
District:
2,000,000 6.00%, 05/01/2014......... Aa/AA 1,988,121 2,027,054
1,000,000 6.125%, 05/01/2019........ Aa/AA 993,954 1,019,529
1,000,000 Los Angeles Adult and
Juvenile Detention Center
7.50%, 06/01/2001......... A1/A+ 1,065,109 1,131,557
1,000,000 Los Angeles Solid Waste
Disposal System
6.50%, 11/01/1998......... A1/AA 1,021,615 1,053,058
Los Angeles County COPS -
Correctional Facilities
Project:
1,000,000 6.50%, 09/01/2013......... Aaa/AAA 1,016,271 1,046,837
1,000,000 7.00%, 03/01/2004......... A1/A 991,220 1,082,390
2,145,000 Los Angeles County Harbor
Revenue 6.40%,
08/01/2015................ A1/A 2,133,238 2,249,153
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
15
<PAGE> 83
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS (CONTINUED)
Los Angeles Department of
Water and Power Electric
Revenue, Waterworks
Revenue:
$2,000,000 4.75%, 08/15/2009
(FGIC).................... Aaa/AAA $ 1,924,220 $ 1,873,544
2,945,000 5.70%, 09/01/2011........... Aa/AA 2,821,045 2,961,901
2,250,000 Los Angeles Metropolitan
Transportation Authority
Sales Tax Revenue, Series
A, 6.250%, 07/01/2016..... A1/A+ 2,224,140 2,252,853
2,000,000 Los Angeles USD, Dr.
Francisco Bravo Medical
COPS
6.60%, 06/01/2005......... A/A- 1,995,000 2,168,538
Los Angeles Wastewater
System Revenue:
1,000,000 Series A, 6.90%,
02/01/2004................ A1/A 982,500 1,105,390
4,000,000 Series B, 6.250%,
06/01/2012
(AMBAC)................... Aaa/AAA 3,967,583 4,162,936
Metropolitan Water District
Southern California
Waterworks Revenue:
3,000,000 6.625%, 07/01/2006........ Aa/AA+ 2,972,408 3,344,943
8,000,000 Series A, 5.75%,
07/01/2013................ Aa/AA+ 7,913,205 7,990,512
2,000,000 Series A, 5.750%,
07/01/2015................ Aaa/AAA 1,960,730 1,981,426
1,000,000 Murrieta Valley USD, Series
B, 6.25%, 09/01/2011...... Aaa/AAA 1,011,508 1,039,028
Northern California CA-OR
Transmission Project
Revenue (AMBAC):
1,340,000 Series A, 6.20%,
05/01/2004................ Aaa/AAA 1,340,000 1,464,000
1,000,000 Series A, 6.30%,
05/01/2005................ Aaa/AAA 1,000,000 1,097,775
2,000,000 Ontario Redevelopment
Financing Authority
Revenue
5.50%, 08/01/2018......... Aaa/AAA 2,004,876 1,913,170
6,000,000 Orange County Local
Transportation Authority
Sales Tax Revenue
6.00%, 02/15/2008
(MBIA).................... Aa/AA 6,034,986 6,382,632
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
16
<PAGE> 84
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS (CONTINUED)
$ 700,000 Richmond Joint Powers
Financing Authority
Revenue, Series B
7.25%, 05/15/2013......... NR/A $ 698,463 $ 787,336
1,500,000 Sacramento Area Flood
Control Agency Capital
Assessment District No. 2,
5.375%, 10/01/2015........ Aaa/AAA 1,455,000 1,440,462
Sacramento MUD Electric
Revenue:
2,500,000 Series A, 6.25%,
08/15/2010
(AMBAC)................... Aaa/AAA 2,473,789 2,705,195
205,000 Sub-Refunding, 8.00%,
11/15/2010................ NR/AAA 205,000 206,068
100,000 San Diego County COPS,
Balboa Park & Mission Bay
Project 5.25%,
11/01/2007.................. Aaa/AAA 99,000 100,219
3,000,000 San Diego County Regional
Transportation Series A
5.50%, 04/01/2008 (FGIC).... Aaa/AAA 3,119,343 3,074,226
San Diego County Water
Authority Revenue COPS,
Series A:
1,500,000 6.375%, 05/01/2006........ Aa/AA- 1,570,169 1,613,177
4,400,000 6.40%, 05/01/2008......... Aa/AA- 4,360,904 4,737,845
1,000,000 San Diego Public Safety
Communication Project
6.50%, 07/15/2007........... Aaa/AA+ 987,470 1,121,725
San Francisco City and
County Airport Community
International Airport
Revenue (AMBAC):
1,000,000 6.200%, 05/01/2007........ Aaa/AAA 970,197 1,083,671
2,085,000 6.300%, 05/01/2011........ Aaa/AAA 2,069,989 2,173,264
1,000,000 San Francisco City and
County Redevelopment
Agency Lease Revenue
George R.
Moscone - Convention
Center
7.50%, 07/01/1999........... A/A- 1,005,519 1,084,808
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
17
<PAGE> 85
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS (CONTINUED)
San Francisco City and
County Public Utilities
Community Water Revenue,
Series A:
$5,500,000 6.40%, 11/01/2007......... Aa/AA $ 5,455,304 $ 5,984,193
2,000,000 6.75%, 11/01/2010......... Aa/AA 2,008,808 2,176,554
4,600,000 San Francisco City and
County Sewer Revenue
Refunding
6.00%, 10/01/2011
(AMBAC)................... Aaa/AAA 4,430,064 4,645,035
2,250,000 Santa Clara County Financing
Authority Lease Revenue,
Project A
6.875%, 11/15/2014
(AMBAC)................... Aaa/AAA 2,209,405 2,476,044
1,000,000 Southern California Public
Power Authority
6.75%, 07/01/2011......... A/A 956,060 1,087,773
University of California
Revenue:
1,000,000 Series B 6.10%,
09/01/2010................ A-/A 992,660 1,016,408
2,000,000 Series B 6.30%,
09/01/2013................ A-/A 1,984,338 2,004,094
2,000,000 Ventura County
5.75%, 12/01/2006......... A1/A+ 1,960,692 2,056,583
580,000 Yucaipa Park School
Facilities Financing
Authority
6.90%, 10/01/2017 (MBIA).. Aaa/AAA 564,885 641,312
------------ ------------
TOTAL CALIFORNIA MUNICIPAL
OBLIGATIONS............... 145,342,020 152,831,463
------------ ------------
FLOATING RATE MUNICIPAL
DEMAND NOTES+ -- 0.45%
100,000 California HFF, St. Joseph
Health Systems, Series A
3.50%, 04/01/1996......... VMIG1/A-1+ 100,000 100,000
100,000 California PCR, Southern
California Edison:
Series B 3.40%,
04/01/1996................ VMIG1/A-1+ 100,000 100,000
100,000 Series C, 3.40%,
04/01/1996................ VMIG1/A-1+ 100,000 100,000
100,000 Series D, 3.40%,
04/01/1996................ VMIG1/A-1+ 100,000 100,000
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
18
<PAGE> 86
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ------------ ------------
<C> <S> <C> <C> <C>
FLOATING RATE MUNICIPAL
DEMAND NOTES+ (CONTINUED)
$ 300,000 Los Angeles Regional
Airport
3.80%, 04/01/1996......... VMIG1/A-1+ $ 300,000 $ 300,000
------------ ------------
TOTAL FLOATING RATE
MUNICIPAL DEMAND NOTES.... 700,000 700,000
------------ ------------
TOTAL
INVESTMENTS -- 98.90%..... $146,042,020** 153,531,463
===========
OTHER ASSETS LESS
LIABILITIES -- 1.10%...... 1,711,237
------------
NET ASSETS -- 100.00%....... $155,242,700
============
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
19
<PAGE> 87
P A C I F I C A
CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ------------- ----------- -----------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS -- 94.01%
Burbank Wastewater Treatment
Revenue, Series A:
$ 250,000 4.40%, 06/01/2000............ Aaa/AAA $ 250,000 $ 250,081
250,000 4.40%, 06/01/2001............ Aaa/AAA 248,768 248,389
500,000 California EFAR, Pooled
College & University
Financing, Series B
5.10%, 06/01/1998.......... Baa/NR 496,810 504,360
500,000 California HFF, Episcopal
Homes, 7.20%, 07/01/1999
(CMI)...................... NR/A 508,125 508,816
315,000 California HFF, Mercy Senior
Housing, Series A
7.40%, 12/01/2000.......... NR/A 341,298 346,768
500,000 California HFF, St. Francis
Memorial Hospital, Series A
4.625%, 11/01/1996......... A/NR 501,599 501,278
California State Public Works
Board, Lease Revenue,
Department of Corrections:
750,000 State Prison, Series A
7.20%, 11/01/1998.......... A/A- 773,167 775,271
500,000 4.50%, 12/01/2001.......... A/A- 496,025 493,330
500,000 California State Public Works
Board, Lease Revenue, State
Prison - Corcoran, Series A
7.00%, 09/01/1998.......... NR/A- 513,187 515,866
500,000 Desert Sands USD Capital
Projects, 4.35%,
03/01/2000................. Aaa/AAA 498,020 499,628
1,500,000 Los Angeles Series A, 5.00%,
09/01/2003 (FGIC).......... Aaa/AAA 1,500,000 1,524,107
500,000 Los Angeles Community
Redevelopment Agency, Tax
Allocation, Series G
6.10%, 07/01/1996.......... NR/A- 501,371 502,633
500,000 Los Angeles COPS
7.30%, 10/01/1996.......... A/NR 505,719 508,402
750,000 Los Angeles Dept. of Water &
Power, Waterworks Revenue
7.10%, 08/01/2002.......... Aa/AA 792,754 804,588
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
20
<PAGE> 88
P A C I F I C A
CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL
OBLIGATIONS (CONTINUED)
$ 500,000 Northern California
Transmission Project,
Series A, 7.00%, 05/01/2024
(MBIA)..................... Aaa/AAA $ 560,204 $ 554,614
500,000 Oakland Revenue Refunding,
Series A, 7.00%,
08/01/1998 (FGIC).......... Aaa/AAA 528,638 532,333
1,460,000 Pleasanton Joint Powers FAR,
Series B, 5.625%,
09/02/1997................. NR/NR 1,456,058 1,483,480
500,000 Sacramento Area Flood Control
Agency - District No. 2
4.30%, 10/01/2001.......... Aaa/AAA 498,690 495,891
500,000 Sacramento MUD Electric
Revenue, Series W
7.50%, 08/15/1999.......... A/A- 536,899 544,088
575,000 San Diego COPS, Childrens
Center Project, 4.75%,
10/01/1996................. A/A 575,336 577,651
500,000 San Diego COPS, 6.60%,
12/01/2001................. A1/NR 527,515 535,391
750,000 San Francisco Redevelopment
Agency Lease Revenue,
George R. Moscone
Convention Center
7.40%, 07/01/1998.......... A/A- 792,864 798,236
500,000 Santa Monica Wastewater
Enterprise Revenue,
Hypersion Projects, 12.00%,
01/01/2001................. Aaa/AAA 653,222 657,103
1,980,000 Solano County COPS, Justice
Facility & Public Building
4.85%, 10/01/1998.......... Baa1/NR 1,967,515 1,993,444
500,000 Torrance COPS
4.25%, 04/01/1997.......... Aaa/AAA 502,336 503,032
644,845 University of California
COPS, San Diego Medical
Center
5.92%, 03/15/2000.......... NR/NR 650,740 663,947
----------- -----------
TOTAL CALIFORNIA MUNICIPAL
OBLIGATIONS................ 17,176,860 17,322,727
----------- -----------
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
21
<PAGE> 89
P A C I F I C A
CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- ---------- ------------- ----------- -----------
<C> <S> <C> <C> <C>
FLOATING RATE MUNICIPAL
DEMAND NOTES+ -- 7.05%
$ 100,000 California HFF - St. Joseph
Health Systems, Series A
3.50%, 04/01/1996.......... VMIG1/A-1+ $ 100,000 $ 100,000
California PCR
Southern California Edison:
100,000 Series B, 3.40%,
04/01/1996................. VMIG1/A-1+ 100,000 100,000
800,000 Series C, 3.40%,
04/01/1996................. VMIG1/A-1+ 800,000 800,000
200,000 Series D, 3.40%,
04/01/1996................. VMIG1/A-1+ 200,000 200,000
100,000 Los Angeles Regional
Airport
3.80%, 04/01/1996.......... VMIG1/A-1+ 100,000 100,000
----------- -----------
TOTAL FLOATING RATE MUNICIPAL
DEMAND NOTES............... 1,300,000 1,300,000
----------- -----------
TOTAL
INVESTMENTS -- 101.06%..... $18,476,860** 18,622,727
===========
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (1.06)%.... (195,719)
-----------
NET ASSETS -- 100.00%........ $18,427,008
===========
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
22
<PAGE> 90
P A C I F I C A
NATIONAL TAX-EXEMPT FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- -------- -------- ----------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS -- 97.91%
$100,000 Arizona State Transportation
Board Highway Revenue
7.80%, 07/01/1997............ Aaa/AAA $ 102,587 $ 102,988
California State GO:
20,000 6.00%, 02/01/2001.............. A1/A 20,676 21,170
100,000 8.75%, 05/01/2004.............. A1/A 118,695 124,790
345,000 California State Department of
Water Resources, Central
Valley Project Revenue 5.00%,
12/01/2012................... Aa/AA 335,395 320,959
100,000 Carson City Nevada School
District LTGO 5.00%,
04/01/2006................... Aaa/AAA 100,000 98,877
150,000 Clark County Nevada LTGO 6.00%,
06/01/2003................... Aaa/AAA 159,382 163,173
100,000 Clark County Nevada PCR, Nevada
Power Co. Project 6.60%,
06/01/2019................... Aaa/AAA 109,372 107,248
375,000 Clark County Washington 5.90%,
12/01/2015................... Aa/NR 372,810 382,253
250,000 Commerce City Colorado Sales &
Use Tax Revenue 5.25%,
08/01/2006 (MBIA)............ Aaa/AAA 250,000 254,135
250,000 Cook County Illinois School
District #54 - A 5.70%,
01/01/2006................... Aaa/AAA 248,980 258,387
250,000 Dallas Texas School GO 5.70%,
08/15/2012................... Aaa/AAA 250,000 251,263
250,000 Des Moines Iowa Water Revenue
5.625%, 12/01/2007........... Aa/AA+ 258,845 256,190
250,000 Detroit Michigan City School
District 5.125%,
05/01/2007................... Aa/NR 250,522 245,430
135,000 Douglas County Colorado School
District RE-1 5.95%,
12/15/2006................... Aaa/AAA 135,000 144,492
475,000 Douglas County Nebraska
Hospital Improvement GO
5.10%, 07/01/2004............ Aa/AA+ 475,000 478,781
100,000 East Bay California Municipal
Utility District, Special
District No. 001 5.00%,
04/01/2015................... Aa/AA 96,543 89,325
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
23
<PAGE> 91
P A C I F I C A
NATIONAL TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- -------- -------- ------------ -----------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
$270,000 El Paso County Colorado School
District No. 20 6.15%,
12/15/2008................... Aaa/AAA $ 289,685 $ 294,008
100,000 Florida State Board of
Education Capital Outlay
5.75%, 01/01/2012............ Aa/AA 104,537 100,914
500,000 Garfield Pitkin and Eagle
Counties Colorado School
District No. RE-1 Roaring
Fork 5.125%, 12/15/2010...... Aaa/AAA 499,200 484,840
100,000 Garland Texas ISD 5.50%,
02/15/2009................... Aaa/AAA 98,992 100,278
250,000 Grant City Washington Public
Utilities District #2 Revenue
5.375%, 01/01/2009 (MBIA).... Aaa/AAA 247,149 247,252
Hawaii State GO:
175,000 5.125%, 02/01/2007........... Aa/AA 158,518 173,968
150,000 5.125%, 02/01/2008........... Aa/AA 148,312 148,131
250,000 6.00%, 03/01/2009............ Aa/AA 263,795 266,572
375,000 Illinois HFAR, Evangelical
Hospital 6.25%, 04/15/2022... Aaa/AAA 389,739 380,543
100,000 Island County Washington School
District #206 (South Whidbey)
6.75%, 12/01/2007............ Aaa/AAA 106,761 113,661
150,000 Kentucky Housing Corp. Housing
Revenue 6.50%, 07/01/2017.... Aaa/AAA 158,533 154,789
250,000 King County Washington School
District #411 5.80%,
12/01/2010................... A1/AA- 242,460 254,873
100,000 Knox County Tennessee 5.15%,
03/01/2000................... Aa/AA 100,663 101,282
250,000 Las Vegas Nevada LTGO 4.90%,
07/01/2005................... Aaa/AAA 246,868 247,837
250,000 Leon County Florida School
District 6.30%, 07/01/2005... A1/A+ 268,289 266,478
250,000 Lynwood Washington Local
Improvement Revenue District
5.15%, 04/01/1997............ NR/NR 250,000 250,772
500,000 Maricopa County Arizona School
District #11 - Peoria 5.50%,
07/01/2010................... A/A+ 476,254 490,760
250,000 Maryland Department of
Transportation Revenue
6.625%, 08/15/2003........... Aaa/AAA 271,265 271,573
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
24
<PAGE> 92
P A C I F I C A
NATIONAL TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- -------- -------- ------------ -----------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
$250,000 Massachusetts State GO 5.125%,
11/01/2008................... Aaa/AAA $ 246,767 $ 246,750
200,000 Matanuska - Susitna Borough
Alaska School GO Construction
Bonds, Series 1994-A 5.60%,
05/01/2007 (MBIA)............ Aaa/AAA 197,260 205,182
100,000 Missouri State Regional
Convention & Sports Complex
Revenue 5.00%, 08/15/2005.... A1/A+ 98,698 98,161
100,000 Nevada State LTGO, Series A
6.00%, 05/01/2007............ Aa/AA 104,747 104,415
150,000 New Mexico State University
State Board of Regents
Revenue 5.50%, 04/01/2007.... A1/AA 148,625 151,158
100,000 North Dakota State Building
Authority Lease Revenue
5.35%, 06/01/2002 (AMBAC).... Aaa/AAA 100,000 103,009
125,000 Port Arthur Texas 8.50%,
02/15/2003 (MBIA)............ Aaa/AAA 148,077 151,402
100,000 Portland Oregon Sewer System
Revenue 6.05%, 06/01/2009.... A1/A+ 100,000 105,804
250,000 Puerto Rico Electric Power
Revenue 6.50%, 07/01/2006.... Aaa/AAA 275,477 281,383
250,000 Richmond Virginia State GO
5.40%, 01/15/2010............ A1/AA 246,330 247,750
250,000 Salt Lake City Utah
Redevelopment Agency Tax
Allocation 6.50%,
10/01/2001................... A/A 265,573 270,222
115,000 San Antonio Texas LTGO 5.125%,
08/01/2001................... Aa/AA 115,664 118,179
200,000 San Francisco California City
and County Public Utilities
Community Water Revenue
6.00%, 11/01/2015............ Aa/AA 202,159 200,958
150,000 Snohomiah County Washington
Road Improvement District
#24A 4.95%, 12/31/1996....... NR/NR 150,000 150,098
100,000 South Columbia Washington Basin
Irrigation District Revenue
6.00%, 12/01/2002............ Aa/AA 106,287 107,335
200,000 Southern Utah University
Revenue 6.25%, 05/01/2009
(AMBAC)...................... Aaa/AAA 199,042 213,330
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
25
<PAGE> 93
P A C I F I C A
NATIONAL TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- -------- -------- ---------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
$250,000 Tulsa Oklahoma 6.25%,
06/01/2012................... Aa/AA $ 256,683 $ 261,110
250,000 Utah State Building Ownership
Master Lease Revenue 6.00%,
05/15/2009................... Aa/AA 249,062 255,120
200,000 Utah State University State
Board of Regents Revenue
5.75%, 12/01/2007 (MBIA)..... Aaa/AAA 198,124 207,796
Washington County Utah School
District:
225,000 Revenue 6.00%, 03/01/2003.... Aaa/NR 236,826 241,486
250,000 St. George 5.00%, 09/01/2006
(FGIC)....................... Aaa/AAA 250,000 248,287
100,000 Washington HFAR, Highline
Community Hospital 5.00%,
08/15/2003................... NR/AAA 98,863 99,689
500,000 Washington State Fuel Revenue
6.40%, 09/01/2003............ Aa/AA 542,304 541,615
Washington State Public Power
Supply System Revenue:
250,000 Project #2 5.25%, 07/01/2008... Aa/AA 248,735 241,647
350,000 Project #3 5.00%, 07/01/2005... Aa/AA 350,532 342,118
250,000 West Lafayette Indiana School
Revenue 5.85%, 01/15/2018.... Aaa/AAA 250,000 245,000
100,000 Wisconsin State Tax Inc. 5.10%,
11/01/2001................... Aa/AA 100,476 102,807
100,000 Wisconsin State Housing EDAR
5.20%, 11/01/2004............ A1/A 101,374 99,353
100,000 Wyoming State Farm Loan Board
Capital Facility Revenue
5.60%, 10/01/2003............ NR/AA- 99,284 104,097
------------ ------------
TOTAL MUNICIPAL OBLIGATIONS.... 13,291,796 13,393,253
------------ ------------
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
26
<PAGE> 94
P A C I F I C A
NATIONAL TAX-EXEMPT FUND
Portfolio of Investments (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATINGS* COST (NOTE 2A)
- -------- -------- ----------- -----------
<C> <S> <C> <C> <C>
FLOATING RATE MUNICIPAL DEMAND
NOTES+ -- 3.66%
$100,000 Grapevine Texas IDA 3.80%,
04/01/1996................... P1/NR $ 100,000 $ 100,000
200,000 Lincoln County Wyoming PCR,
Exxon Project 3.80%,
04/01/1996................... P1/A1+ 200,000 200,000
200,000 North Central Texas HFF
Revenue, Presbyterian Medical
Center 3.80%, 04/01/1996..... VMIG1/A1 200,000 200,000
------------ -----------
TOTAL FLOATING RATE MUNICIPAL
DEMAND NOTES................. 500,000 500,000
------------ -----------
MONEY MARKET FUND -- 1.03%
141,137 Goldman Sachs Institutional
Liquid Assets Tax-Exempt
Diversified Portfolio 3.12%,
04/01/1996................... NR/NR 141,137 141,137
------------ -----------
TOTAL INVESTMENTS -- 102.60%... $13,932,933** 14,034,390
============
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (2.60)%............ (355,340)
-----------
NET ASSETS -- 100.00%.......... $13,679,050
===========
</TABLE>
See footnotes to portfolios and accompanying notes to financial statements.
27
<PAGE> 95
P A C I F I C A
Footnotes to Portfolios (Unaudited)
March 31, 1996
* CREDIT RATINGS GIVEN BY RATING AGENCIES ARE EXPLAINED BELOW.
CREDIT RATINGS ARE UNAUDITED.
<TABLE>
<CAPTION>
STANDARD
MOODY'S &
INVESTORS POOR'S
SERVICE, RATINGS
INC. GROUP
- --------------------
<C> <C> <S>
P-1 A-1 Short-term instruments of the highest quality.
VMIG1 SP1 Instrument judged to be of the best quality
with thorough protection.
Aaa AAA Instrument judged to be of the highest quality
and carrying the smallest amount of investment
risk.
Aa AA Instrument judged to be of high quality by all
standards.
A A Instrument judged to have adequate Security of
interest and principal but certain protective
elements may be lacking.
Baa BBB Instrument judged to be of moderate quality by
all standards.
NR NR Not Rated. In the opinion of the Investment
Advisor, instrument judged to be of comparable
investment quality to rated securities which
may be purchased by the Funds.
</TABLE>
Items which possess the strongest investment attributes of their category are
given that letter rating followed by a number. The Standard & Poor's ratings may
be modified by the addition of a plus or minus sign to show relative standing
within the major rating categories. Moody's applies numerical modifiers to
designate relative standing within the generic rating categories.
See accompanying notes to financial statements.
28
<PAGE> 96
P A C I F I C A
Footnotes to Portfolios (Unaudited) (continued)
March 31, 1996
** Cost for Federal income tax purposes is substantially the same.
+ Floating Rate Municipal Demand Notes -- Interest rate shown in effect on
3/31/96 -- maturity date next interest read date.
Investment percentages shown are calculated as a percentage of net assets.
Institutions shown in parentheses have entered into credit support agreements
with the issuers.
ABBREVIATIONS USED IN THE PORTFOLIOS
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
CMI -- California Mortgage Insurance
COPS -- Certificates of Participation
CSD -- County School District
EDAR -- Economic Development Authority Revenue
EFAR -- Educational Facilities Authority Revenue
FAR -- Financing Authority Revenue
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
IDA -- Industrial Development Authority
GNMA -- Government National Mortgage Association
GO -- General Obligation
HFA -- Hospital Facility Authority
LTGO -- Limited Tax General Obligations
MBIA -- Municipal Bond Insurance Association
HFAR -- Health Facility Authority Revenue
HFF -- Health Facilities Financing
ISD -- Independent School District
PCR -- Pollution Control Revenues
USD -- Unified School District
</TABLE>
See accompanying notes to financial statements.
29
<PAGE> 97
P A C I F I C A
Statements of Assets and Liabilities (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
OREGON ARIZONA CALIFORNIA
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost $43,441,819,
$24,018,772, and $146,042,020,
respectively).................... $44,294,675 $24,255,721 $153,531,463
Cash............................... -- -- 48,076
Receivable from Advisor............ -- 7,415 --
Interest receivable................ 762,342 345,628 2,637,330
Receivable for Fund shares sold.... 14,399 9,548 --
Prepaid expenses................... 3,136 2,691 20,928
Other assets....................... 1,825 6,256 10,311
----------- ----------- -----------
Total Assets................... 45,076,377 24,627,259 156,248,108
----------- ----------- -----------
LIABILITIES:
Payable to Custodian............... -- 3,469 --
Income dividend payable............ 68,883 73,404 535,566
Payable for Fund shares redeemed... 184,701 2,000 40,000
Advisory fee payable............... 13,503 -- 66,435
Administrative services fee
payable.......................... 5,317 2,298 38,633
Fund accounting fee payable........ 2,500 2,500 2,500
Transfer agent fee payable......... 1,184 401 1,075
Custodian fee payable.............. 1,086 460 2,467
Payable for securities purchased... -- 495,402 --
Other accrued expenses............. 46,806 11,784 318,732
----------- ----------- -----------
Total Liabilities.............. 323,980 591,718 1,005,408
----------- ----------- -----------
NET ASSETS........................... $44,752,397 $24,035,541 $155,242,700
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
30
<PAGE> 98
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
OREGON ARIZONA CALIFORNIA
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
COMPOSITION OF NET ASSETS:
Par value of shares of beneficial
interest outstanding ($.001 per
share); unlimited number of
shares
authorized....................... $ 2,734 $ 2,269 $ 14,384
Additional paid-in capital......... 43,840,634 23,579,899 149,264,478
Accumulated undistributed net
realized gain (loss) on
investments...................... 56,173 216,424 (1,524,923)
Overdistribution of net investment
income........................... -- -- (682)
Net unrealized appreciation on
investments...................... 852,856 236,949 7,489,443
---------- ---------- -----------
Net assets applicable to shares
outstanding...................... $44,752,397 $24,035,541 $155,242,700
========== ========== ===========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING:
Institutional Shares:
Shares of Beneficial Interest
Outstanding.................... 489,899 1,511,990 10,777,291
======= ========= ==========
Net Asset Value, Maximum Offering
Price, and Redemption Price Per
Share.......................... $16.37 $10.59 $10.79
====== ====== ======
Investor Shares:
Shares of Beneficial Interest
Outstanding.................... 2,244,598 757,122 3,606,585
========= ======= =========
Net Asset Value and Redemption
Price Per Share................ $16.37 $10.59 $10.79
====== ====== ======
Maximum Offering Price Per Share
($16.37/.955, $10.59/.955 and
$10.79/.955, respectively)....... $17.14 $11.09 $11.30
======= ====== ======
</TABLE>
See accompanying notes to financial statements.
31
<PAGE> 99
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
CALIFORNIA
SHORT-TERM NATIONAL
TAX-EXEMPT TAX-EXEMPT
FUND FUND
----------- -----------
<S> <C> <C>
ASSETS:
Investments in securities at value (identified
cost $18,476,860 and $13,932,933,
respectively)................................. $18,622,727 $14,034,390
Cash............................................ 53,156 --
Receivable from Advisor......................... -- 10,447
Interest receivable............................. 281,925 226,502
Receivable for investments sold................. -- 250,838
Receivable for Fund shares sold................. -- 10,833
Prepaid expenses................................ -- 3,581
Other assets.................................... 57,752 20,422
----------- -----------
Total Assets................................ 19,015,560 14,557,013
----------- -----------
LIABILITIES:
Payable to Custodian............................ -- 250,922
Income dividend payable......................... 38,037 27,406
Payable for Fund shares redeemed................ 473,681 --
Fund accounting fee payable..................... 2,500 2,500
Advisory fee payable............................ 1,936 --
Administrative services fee payable............. 1,743 1,572
Custodian fee payable........................... 437 --
Transfer agent fee payable...................... 203 223
Payable for securities purchased................ -- 580,993
Other accrued expenses.......................... 70,015 14,347
----------- -----------
Total Liabilities........................... 588,552 877,963
----------- -----------
NET ASSETS........................................ $18,427,008 $13,679,050
=========== ===========
</TABLE>
See accompanying notes to financial statements.
32
<PAGE> 100
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
CALIFORNIA
SHORT-TERM NATIONAL
TAX-EXEMPT TAX-EXEMPT
FUND FUND
----------- -----------
<S> <C> <C>
COMPOSITION OF NET ASSETS:
Par value of shares of beneficial interest
outstanding ($.001 per share); unlimited
number of shares authorized................... $ 1,821 $ 895
Additional paid-in capital...................... 18,380,292 13,560,544
Accumulated undistributed net realized gain
(loss) on investments......................... (100,972) 16,154
Net unrealized appreciation on investments...... 145,867 101,457
------------ ------------
Net assets applicable to shares outstanding..... $18,427,008 $13,679,050
============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING:
Institutional Shares:
Shares of Beneficial Interest Outstanding..... 1,171,478 507,071
============ ============
Net Asset Value, Maximum Offering Price, and
Redemption Price Per Share.................. $10.12 $15.29
====== ======
Investor Shares:
Shares of Beneficial Interest Outstanding..... 649,732 387,502
=========== ===========
Net Asset Value and Redemption Price Per
Share....................................... $10.12 $15.29
====== ======
Maximum Offering Price Per Share ($10.12/0.97
and $15.29/0.955, respectively)............... $10.43 $16.01
====== ======
</TABLE>
See accompanying notes to financial statements.
33
<PAGE> 101
P A C I F I C A
Statements of Operations (Unaudited)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
OREGON ARIZONA CALIFORNIA
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
---------- ---------- --------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest........................ $1,362,898 $ 637,282 $4,651,028
---------- --------- ------------
Expenses:
Advisory........................ 121,856 61,642 405,996
Administrative services......... 36,557 18,493 121,799
Transfer agent.................. 19,640 5,412 29,010
Shareholder services
(Investor Shares only)........ 19,146 4,555 12,102
Fund accounting................. 18,835 15,836 23,170
Reports to shareholders......... 12,834 2,384 25,427
Custodian....................... 5,505 2,476 16,950
Audit........................... 5,350 2,024 20,070
Registration.................... 4,754 1,485 14,268
Legal........................... 4,123 868 18,694
Trustees........................ 3,528 3,528 3,668
Insurance....................... 1,547 514 3,792
Distribution (Investor Shares
only)......................... -- 4,089 10,901
Miscellaneous................... 2,825 7,351 24,756
---------- ---------- --------------
Total expenses before
waivers/reimbursement....... 256,500 130,657 730,603
Less expenses
waived/reimbursed by
Advisor/Administrator....... (63,095) (72,397) (2,120)
---------- ---------- --------------
Net expenses.................... 193,405 58,260 728,483
---------- ---------- --------------
Net investment income............. 1,169,493 579,022 3,922,545
---------- ---------- --------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment
transactions.................... 56,173 270,712 1,427,480
Net change in unrealized
appreciation on investments..... (42,752) (484,153) (624,149)
---------- ---------- --------------
Net realized and unrealized gain
(loss) on investments........... 13,421 (213,441) 803,331
---------- ---------- --------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................... $1,182,914 $ 365,581 $4,725,876
========== =========== =============
</TABLE>
See accompanying notes to financial statements.
34
<PAGE> 102
P A C I F I C A
Statements of Operations (Unaudited) (continued)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
CALIFORNIA
SHORT-TERM NATIONAL
TAX-EXEMPT TAX-EXEMPT
FUND FUND
-------------- ----------
<S> <C> <C>
NET INVESTMENT INCOME:
Income:
Interest................................... $450,945 $360,782
-------------- ----------
Expenses:
Advisory................................... 33,380 35,773
Fund accounting............................ 16,773 12,920
Administrative services.................... 14,306 10,732
Transfer agent............................. 7,346 3,812
Reports to shareholders.................... 5,470 1,846
Trustees................................... 4,465 1,424
Amortization of organization expenses...... 4,318 4,719
Distribution (Investor Shares only)........ 3,408 --
Legal...................................... 2,278 735
Audit...................................... 2,089 1,074
Registration............................... 1,930 2,204
Shareholder services (Investor Shares
only).................................... 1,704 759
Custodian.................................. 873 --
Insurance.................................. 183 113
Miscellaneous.............................. 604 83
-------------- ----------
Total expenses before
waivers/reimbursement.................. 99,127 76,194
Less expenses waived/reimbursed by
Advisor/ Administrator................. (35,959) (47,904)
-------------- ----------
Net expenses............................... 63,168 28,290
-------------- ----------
Net investment income........................ 387,777 332,492
-------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment
transactions............................... 6,949 16,154
Net change in unrealized appreciation on
investments................................ (39,307) (48,102)
-------------- ----------
Net realized and unrealized loss on
investments................................ (32,358) (31,948)
-------------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.............................. $355,419 $300,544
============== ===========
</TABLE>
See accompanying notes to financial statements.
35
<PAGE> 103
P A C I F I C A
Statements of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
OREGON WESTCORE OREGON
TAX-EXEMPT FUND TAX- EXEMPT
------------------------- FUND
PERIOD ---------------
SIX MONTHS ENDED FISCAL YEAR
ENDED MARCH SEPTEMBER ENDED
31, 30, MAY 30,
1996 1995* 1995
----------- ----------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.............. $ 1,169,493 $ 852,996 $ 2,663,326
Net realized gain (loss) on
investment transactions.......... 56,173 13,635 (239,143)
Change in net unrealized
appreciation (depreciation) on
investments...................... (42,752) (278,482) 1,451,939
------------ ------------ ------------
Net increase in net assets
resulting from operations........ 1,182,914 588,149 3,876,122
------------ ------------ ------------
Distributions to Shareholders from
Net Investment Income:
Institutional Shares............... (163,351) -- --
Investor Shares.................... (1,006,142) (885,288) (2,823,513)
------------ ------------ ------------
(1,169,493) (885,288) (2,823,513)
------------ ------------ ------------
Distributions to Shareholders from
Realized Gain on Investments:
Institutional Shares............... -- -- --
Investor Shares.................... -- -- (128,294)
------------ ------------ ------------
-- -- (128,294)
------------ ------------ ------------
Capital Share Transactions:
Net Proceeds from sales of shares:
Institutional Shares............. 8,926,029 -- --
Investor Shares.................. 914,666 1,376,768 5,706,279
------------ ------------ ------------
9,840,695 1,376,768 5,706,279
------------ ------------ ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares............. 35,853 -- --
Investor Shares.................. 658,627 531,664 1,830,242
------------ ------------ ------------
694,480 531,664 1,830,242
------------ ------------ ------------
Cost of shares redeemed:
Institutional Shares............. (815,887) -- --
Investor Shares.................. (15,057,351) (3,779,707) (10,061,225)
------------ ------------ ------------
(15,873,238) (3,779,707) (10,061,225)
------------ ------------ ------------
Net decrease in net assets derived
from capital share transactions.... (5,338,063) (1,871,275) (2,524,704)
------------ ------------ ------------
Net (Decrease) in Net Assets........... (5,324,642) (2,168,414) (1,600,389)
NET ASSETS:
Beginning of period.................. 50,077,039 52,245,453 53,845,842
------------ ------------ ------------
End of period........................ $44,752,397 $50,077,039 $52,245,453
============ ============ ============
</TABLE>
* For the period June 1, 1995 through September 30, 1995. On October 1, 1995,
the Fund changed its fiscal year end from May 31 to September 30.
See accompanying notes to financial statements.
36
<PAGE> 104
P A C I F I C A
Statements of Changes in Net Assets (Unaudited) (continued)
<TABLE>
<CAPTION>
ARIZONA WESTCORE ARIZONA
TAX-EXEMPT FUND INTERMEDIATE
------------------------ TAX-FREE FUND
PERIOD ----------------
SIX MONTHS ENDED FISCAL YEAR
ENDED MARCH SEPTEMBER ENDED
31, 30, MAY 30,
1996 1995* 1995
----------- ----------- ----------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.............. $ 579,022 $ 390,606 $1,221,865
Net realized gain (loss) on
investment transactions.......... 270,712 68,297 6,272
Change in net unrealized
appreciation (depreciation) on
investments...................... (484,153) 80,894 440,550
------------ ----------- -----------
Net increase in net assets
resulting from operations........ 365,581 539,797 1,668,687
------------ ----------- -----------
Distributions to Shareholders from
Net Investment Income:
Institutional Shares............... (383,428) -- --
Investor Shares.................... (195,594) (451,893) (1,273,944)
------------ ------------ -----------
(579,022) (451,893) (1,273,944)
------------ ------------ -----------
Distributions to Shareholders from
Realized Capital Gains:
Institutional Shares............... (37,026) -- --
Investor Shares.................... (17,262) -- (26,600)
------------ ------------ -----------
(54,288) -- (26,600)
------------ ------------ -----------
Capital Share Transactions:
Net Proceeds from sales of shares:
Institutional Shares............. 17,741,641 -- --
Investor Shares.................. 772,539 1,568,324 6,231,470
------------ ------------ -----------
18,514,180 1,568,324 6,231,470
------------ ------------ -----------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares............. 2,525 -- --
Investor Shares.................. 128,273 103,193 282,090
------------ ------------ -----------
130,798 103,193 282,090
------------ ------------ -----------
Cost of shares redeemed:
Institutional Shares............. (1,488,230) -- --
Investor Shares.................. (17,475,196) (1,719,071) (7,453,357)
------------ ------------ -----------
(18,963,426) (1,719,071) (7,453,357)
------------ ------------ -----------
Net decrease in net assets derived
from capital share transactions.... (318,448) (47,554) (939,797)
------------ ------------ -----------
Net Increase (Decrease) in Net
Assets............................... (586,177) 40,350 (571,654)
NET ASSETS:
Beginning of period.................. 24,621,718 24,581,368 25,153,022
------------ ------------ -----------
End of period (including
overdistribution of net investment
income of $682 at March 31,
1996).............................. $24,035,541 $24,621,718 $24,581,368
============ ============ ============
</TABLE>
* For the period June 1, 1995 through September 30, 1995. On October 1, 1995,
the Fund changed its fiscal year end from May 31 to September 30.
See accompanying notes to financial statements.
37
<PAGE> 105
P A C I F I C A
Statements of Changes in Net Assets (Unaudited) (continued)
<TABLE>
<CAPTION>
CALIFORNIA
TAX-EXEMPT FUND
----------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH SEPTEMBER
31, 30,
1996 1995
------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income.......................... $ 3,922,545 $ 8,661,159
Net realized gain (loss) on investment
transactions................................. 1,427,480 (3,123,518)
Change in net unrealized appreciation
(depreciation) on investments................ (624,149) 9,097,550
------------ ------------
Net increase in net assets resulting from
operations................................... 4,725,876 14,635,191
------------ ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares........................... (2,822,349) --
Investor Shares................................ (1,100,878) (8,661,159)
------------ ------------
(3,923,227) (8,661,159)
------------ ------------
Distributions to Shareholders from Net Realized
Capital Gains:
Institutional Shares........................... -- --
Investor Shares................................ -- (1,721,936)
------------ ------------
-- (1,721,936)
------------ ------------
Capital Share Transactions:
Net Proceeds from sales of shares:
Institutional Shares......................... 125,849,425 --
Investor Shares.............................. 2,627,831 33,353,018
------------ ------------
128,477,256 33,353,018
------------ ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares......................... 164,455 --
Investor Shares.............................. 516,264 3,152,456
------------ ------------
680,719 3,152,456
------------ ------------
Cost of shares redeemed:
Institutional Shares......................... (9,577,633) --
Investor Shares.............................. (126,483,239) (73,833,598)
------------ ------------
(136,060,872) (73,833,598)
------------ ------------
Net decrease in net assets derived from capital
share transactions............................. (6,902,897) (37,328,124)
------------ ------------
Net Decrease in Net Assets......................... (6,100,248) (33,076,028)
NET ASSETS:
Beginning of period............................ 161,342,948 194,418,976
------------ ------------
End of period.................................. $ 155,242,700 $161,342,948
============ ============
</TABLE>
See accompanying notes to financial statements.
38
<PAGE> 106
P A C I F I C A
Statements of Changes in Net Assets (Unaudited) (continued)
<TABLE>
<CAPTION>
CALIFORNIA SHORT-TERM
TAX-EXEMPT FUND
---------------------------
SIX MONTHS YEAR ENDED
ENDED MARCH SEPTEMBER
31, 30,
1996 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income........................... $ 387,777 $ 1,052,928
Net realized gain on investment transactions.... 6,949 165,399
Change in net unrealized appreciation on
investments................................... (39,307) 339,697
------------ ------------
Net increase in net assets resulting from
operations.................................... 355,419 1,558,024
------------ ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares............................ (253,006) --
Investor Shares................................. (134,771) (1,052,928)
------------ ------------
(387,777) (1,052,928)
------------ ------------
Distributions to Shareholders from Net Realized
Capital Gains:
Institutional Shares............................ (14,627) --
Investor Shares................................. (6,879) --
------------ ------------
(21,506) --
------------ ------------
Capital Share Transactions:
Net Proceeds from sales of shares:
Institutional Shares.......................... 13,765,904 --
Investor Shares............................... 2,021,559 27,872,575
------------ ------------
15,787,463 27,872,575
------------ ------------
Net asset value of shares issued to shareholders
in reinvestment of distributions:
Institutional Shares.......................... 52,443 --
Investor Shares............................... 115,030 376,437
------------ ------------
167,473 376,437
------------ ------------
Cost of shares redeemed:
Institutional Shares.......................... (1,914,180) --
Investor Shares............................... (14,654,675) (34,974,097)
------------ ------------
(16,568,855) (34,974,097)
------------ ------------
Net decrease in net assets derived from capital
share transactions................................ (613,919) (6,725,085)
------------ ------------
Net Decrease in Net Assets.......................... (667,783) (6,219,989)
NET ASSETS:
Beginning of period............................... 19,094,791 25,314,780
------------ ------------
End of period..................................... $ 18,427,008 $ 19,094,791
============ ============
</TABLE>
See accompanying notes to financial statements.
39
<PAGE> 107
P A C I F I C A
Statements of Changes in Net Assets (Unaudited) (continued)
<TABLE>
<CAPTION>
NATIONAL WESTCORE
TAX-EXEMPT FUND QUALITY
------------------------- TAX-EXEMPT
PERIOD FUND
SIX MONTHS ENDED -----------
ENDED MARCH SEPTEMBER YEAR ENDED
31, 30, MAY 31,
1996 1995* 1995
----------- ----------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................. $ 332,492 $ 225,575 622,957
Net realized gain (loss) on investment
transactions........................ 16,154 (1,042) (75,743)
Change in net unrealized appreciation
(depreciation) on investments....... (48,102) 82,929 376,362
------------ ------------ ------------
Net increase in net assets resulting
from operations..................... 300,544 307,462 923,576
------------ ------------ ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares.................. (162,591) -- --
Investor Shares....................... (169,901) (247,098) (641,019)
------------ ------------ ------------
(332,492) (247,098) (641,019)
------------ ------------ ------------
Capital Share Transactions:
Net Proceeds from sales of shares:
Institutional Shares................ 8,919,864 -- --
Investor Shares..................... 197,425 624,616 5,682,988
------------ ------------ ------------
9,117,289 624,616 5,682,988
------------ ------------ ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares.............. 48,881 -- --
Investor Shares................... 106,558 113,062 287,582
------------ ------------ ------------
155,439 113,062 287,582
------------ ------------ ------------
Cost of shares redeemed:
Institutional Shares................ (1,132,878) -- --
Investor Shares..................... (8,733,992) (951,240) (5,394,689)
------------ ------------ ------------
(9,866,870) (951,240) (5,394,689)
------------ ------------ ------------
Net increase (decrease) in net assets
derived from capital share
transactions.......................... (594,142) (213,562) 575,881
------------ ------------ ------------
Net Increase (Decrease) in Net Assets..... (626,090) (153,198) 858,438
NET ASSETS:
Beginning of period..................... 14,305,140 14,458,338 13,599,900
------------ ------------ ------------
End of period........................... $13,679,050 $14,305,140 $14,458,338
============ ============ ============
</TABLE>
* For the period June 1, 1995 through September 30, 1995. On October 1, 1995,
the Fund changed its fiscal year end from May 31 to September 30.
See accompanying notes to financial statements.
40
<PAGE> 108
P A C I F I C A
Notes to Financial Statements (Unaudited)
March 31, 1996
1. DESCRIPTION AND ORGANIZATION -- The Oregon Tax-Exempt Fund, Arizona
Tax-Exempt Fund, California Tax-Exempt Fund, California Short-Term Tax-Exempt
Fund, and National Tax-Exempt Fund (together, the "Funds") are separately
managed portfolios which comprise part of Pacifica Funds Trust (the "Trust"), an
open-end management investment company registered under the Investment Company
Act of 1940, consisting of eighteen portfolios at March 31, 1996. The Trust was
organized as a Massachusetts business trust on July 17, 1984.
Effective October 1, 1995, the Pacifica Oregon Tax-Exempt Fund was
established to acquire all of the assets and assume all of the liabilities of
the Westcore Oregon Tax-Exempt Fund, the Arizona Tax-Exempt Fund was established
to acquire all of the assets and assume all of the liabilities of the Westcore
Arizona Intermediate Tax-Free Fund, the existing Pacifica California Tax-Exempt
Fund acquired all of the assets and assumed all of the liabilities of the
Westcore California Intermediate Tax-Free Fund, and the Pacifica National
Tax-Exempt Fund was established to acquire all of the assets and assume all of
the liabilities of the Westcore Quality Tax-Exempt Income Fund. These
acquisitions were accomplished in separate tax-free exchanges for shares of the
respective Fund.
On August 7, 1995, the Board of Trustees approved the issuance of a second
class of shares for Pacifica Funds Trust. The two classes are known as
Institutional Shares and Investor Shares. Each share of a Fund represents an
equal proportionate interest in that Fund with other shares of the same class
and is entitled to the same voting rights, and to such dividends and
distributions earned on such shares as are declared in the discretion of the
Board of Trustees. Investor Shares of the Funds are purchased at net asset value
plus a maximum 4.50% sales charge.
In addition, the Investor Shares bear a distribution expense (not borne by
the Institutional Shares) not to exceed the annual rate of 0.50% of the average
daily net assets.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of significant
accounting policies consistently followed by the Funds in the preparation of
their financial statements:
41
<PAGE> 109
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
A. SECURITY VALUATION -- Bonds and other fixed-income securities may
be valued on the basis of prices provided by a pricing service approved by
the Board of Trustees. In the absence of market quotations, investments are
valued at fair value as determined in good faith by, or at the direction of
the Trustees. Short-term securities which mature in 60 days or less are
valued at amortized cost, if their term to maturity at purchase was 60 days
or less, or by amortizing their value on the 61st day prior to maturity, if
their original term to maturity at purchase exceeded 60 days.
B. FEDERAL INCOME TAXES -- It is the Funds' policy to comply with the
requirements of Subchapter M of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of their
"investment company taxable income," as defined in the Code, and net
capital gains, if any, to their shareholders. Therefore, no Federal income
tax provision is required. In addition, by distributing during each
calendar year substantially all of their net investment income, capital
gains and certain other amounts, if any, the Funds intend not to be subject
to a Federal excise tax.
C. DIVIDENDS TO SHAREHOLDERS -- The Funds declare dividends from net
investment income on each business day and pay such dividends within five
business days after the end of each month. The amount of dividends and
distributions from net investment income and net realized capital gains are
determined in accordance with Federal income tax regulations which may
differ from net investment income and net realized capital gains as
determined by generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts based on their Federal tax-basis
treatment; temporary differences do not require reclassification. Dividends
and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes but not for tax purposes are
reported as dividends in excess of net investment income or distributions
in excess of net realized capital gains. To the extent dividends and
distributions exceed net investment income and net realized capital gains
for tax purposes, they are reported as distributions of paid-in-capital.
D. ORGANIZATION EXPENSES -- Costs incurred in connection with the
original organization and initial registration of each Fund have been
deferred and are amortized on a straight-line basis over the five year
period beginning with each Fund's commencement of operations.
42
<PAGE> 110
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
E. INVESTMENT TRANSACTIONS -- Investment transactions are recorded on
the trade date. Identified cost of investments sold is used to calculate
realized gains and losses for both financial statement and Federal income
tax purposes. Interest income, including the amortization of discount or
premium, is recorded as earned.
F. DETERMINATION OF NET ASSET VALUE AND ALLOCATION OF
EXPENSES -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses are allocated proportionately among each Fund within
the Trust in relation to the net assets of each Fund or on another
reasonable basis. In calculating net asset value per share of each class,
investment income and expenses, other than class-specific expenses, are
allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day. Class-specific expenses
are currently limited to expenses incurred under the Non-12b-1 Shareholder
Services Plan for each class and expenses incurred by the Investor Shares
under the Amended and Restated Master Distribution Plan for Investor
Shares.
3. INVESTMENT ADVISOR, ADMINISTRATOR AND TRANSACTIONS WITH
AFFILIATES -- For the six month period ended March 31, 1996, First Interstate
Capital Management ("FICM") served as the investment advisor to the Funds. FICM
managed the investment and reinvestment of the assets of the Funds and
continually reviewed, supervised and administered the Funds' investments. FICM
is responsible for placing orders for the purchase and sale of the Funds'
investments directly with brokers or dealers selected by it in its discretion
and for furnishing to the Board of Trustees, which has overall responsibility
for the business affairs of the Trust, periodic reports on the performance of
the Funds. As compensation for investment advisory services, FICM is entitled to
receive from the respective Funds a fee at the annual percentage rate of average
daily net assets as indicated below:
<TABLE>
<S> <C>
Oregon Tax-Exempt Fund................................ 0.50%
Arizona Tax-Exempt Fund............................... 0.50%
California Tax-Exempt Fund............................ 0.50%
California Short-Term Tax-Exempt Fund................. 0.35%
National Tax-Exempt Fund.............................. 0.50%
</TABLE>
43
<PAGE> 111
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
For the six months ended March 31, 1996, FICM was entitled to and waived
advisory fees as indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Oregon Tax-Exempt Fund..................... $121,856 $57,377
Arizona Tax-Exempt Fund.................... 61,642 61,642
California Tax-Exempt Fund................. 405,996 --
California Short-Term Tax-Exempt Fund...... 33,380 33,380
National Tax-Exempt Fund................... 35,773 35,773
</TABLE>
In addition, First Interstate Bank of California ("FICAL"), an affiliate of
FICM, serves as Custodian for the Funds. FICAL received a custodian fee based
upon net assets and certain transaction charges. For the six months ended March
31, 1996, FICAL earned custodian fees from the Funds as indicated below:
<TABLE>
<S> <C>
Oregon Tax-Exempt Fund............................... $ 5,505
Arizona Tax-Exempt Fund.............................. 2,476
California Tax-Exempt Fund........................... 16,950
California Short-Term Tax-Exempt Fund................ 873
</TABLE>
The National Tax-Exempt Fund earned credits on its balances held by FICAL
in an amount sufficient to reduce FICAL's custodian fee to zero for the six
months ended March 31, 1996.
Furman Selz LLC ("Furman Selz"), formerly Furman Selz Inc., provides
administrative services for the operation of the Funds, furnishes office space
and facilities required for conducting the business of the Funds and pays the
compensation of the Trust's officers and trustees affiliated with Furman Selz.
As compensation for their administrative services, each Fund pays Furman Selz an
annual fee payable monthly equal to 0.15% of the average daily net assets of
each Fund. For the period October 1, 1995 through November 15, 1995 ALPS Mutual
Fund Services, Inc. ("ALPS") served as the administrator for the Oregon
Tax-Exempt Fund. ALPS was entitled to and received administrative services fees
from the Oregon Tax-Exempt Fund at an annual rate of 0.05% of the average net
assets which amounted to $752 for the period. For the six months ended March 31,
1996, Furman Selz was entitled to and waived administrative services fees as
indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- ------
<S> <C> <C>
Oregon Tax-Exempt Fund...................... $ 36,557 $5,718
Arizona Tax-Exempt Fund..................... 18,493 3,340
California Tax-Exempt Fund.................. 121,799 2,120
California Short-Term Tax-Exempt Fund....... 14,306 2,579
National Tax-Exempt Fund.................... 10,732 1,684
</TABLE>
44
<PAGE> 112
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
The Funds have adopted a non-compensatory Distribution Plan and Agreement
(the "Plan") for the Investor Shares pursuant to Rule 12b-1 of the Investment
Company Act of 1940, as amended. The Plan provides for payment by each Fund for
actual expenses incurred. Such payments shall not exceed .50% of the average net
assets of the Investor Shares. Pacifica Funds Distributor Inc., an affiliate of
Furman Selz, acts as Distributor for the Trust.
The Funds also retain Furman Selz to provide personnel and facilities to
perform shareholders servicing, transfer agency related services and fund
accounting. For the six months ended March 31, 1996, Furman Selz earned the
following transfer agent and fund accounting fees from the Funds:
<TABLE>
<S> <C>
Oregon Tax-Exempt Fund............................... $22,350
Arizona Tax-Exempt Fund.............................. 17,446
California Tax-Exempt Fund........................... 21,681
California Short-Term Tax-Exempt Fund................ 16,264
National Tax-Exempt Fund............................. 16,318
</TABLE>
Various banks, trust companies, broker-dealers (other than Furman Selz) or
other financial organizations (collectively, "Service Organizations") also
provide administrative services for the Funds, such as maintaining shareholder
accounts and records. The Funds pay fees (which vary depending upon the services
provided) to Service Organizations in amounts up to an annual rate of 0.25% of
the daily net assets of the Fund's shares owned by shareholders with whom the
service Organization has a servicing relationship.
For the six months ended March 31, 1996, First Interstate Bancorp was the
only service organization to receive payments. First Interstate Bancorp earned
fees as listed below:
<TABLE>
<S> <C>
Oregon Tax-Exempt Fund............................... $19,146
Arizona Tax-Exempt Fund.............................. 4,555
California Tax-Exempt Fund........................... 12,102
California Short-Term Tax-Exempt Fund................ 1,704
National Tax-Exempt Fund............................. 759
</TABLE>
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of the Funds. If, in any fiscal year,
the total expenses of a Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses, but including the advisory and
administrative services fees) exceed the expense limitations applicable to that
Fund imposed by the securities regulations of any state, FICM and Furman Selz
will pay or reimburse the Fund to the extent of advisory and administrative
fees. For the six months ended March 31, 1996, the Funds did not exceed such
limitation.
45
<PAGE> 113
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
4. SECURITY TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the six months ended
March 31, 1996 were as follows:
<TABLE>
<CAPTION>
PROCEEDS
COST OF FROM
SECURITIES SECURITIES
PURCHASED SOLD
----------- -----------
<S> <C> <C>
Oregon Tax-Exempt Fund........................ $ 1,170,713 $ 5,724,473
Arizona Tax-Exempt Fund....................... 6,931,640 6,463,958
California Tax-Exempt Fund.................... 16,943,390 23,238,083
California Short-Term Tax-Exempt Fund......... 3,162,803 4,169,335
National Tax-Exempt Fund...................... 5,422,679 5,891,825
</TABLE>
Unrealized appreciation (depreciation) at March 31, 1996, based on cost of
securities for Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------- ------------ ------------
<S> <C> <C> <C>
Oregon Tax-Exempt Fund.............. $1,306,083 $453,227 $ 852,856
Arizona Tax-Exempt Fund............. 468,604 231,655 236,949
California Tax-Exempt Fund.......... 7,859,123 369,680 7,489,443
California Short-Term Tax-Exempt
Fund.............................. 157,651 11,784 145,867
National Tax-Exempt Fund............ 195,335 93,878 101,457
</TABLE>
5. CAPITAL SHARE TRANSACTIONS -- Transactions in shares of beneficial
interest for the six months ended March 31, 1996 and the periods ended September
30, 1995 were as follows:
<TABLE>
<CAPTION>
OREGON TAX-EXEMPT FUND
------------------------- WESTCORE OREGON
SIX MONTHS ENDED TAX-EXEMPT FUND(A)
MARCH 31, 1996 --------------------------
------------------------- PERIOD ENDED YEAR ENDED
INSTITUTIONAL INVESTOR SEPTEMBER 30, MAY 31,
SHARES SHARES 1995* 1995
------------- --------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold............... 536,874 54,875 84,114 360,914
Shares issued in
reinvestment of
distributions........... 2,149 39,539 32,705 116,237
------- --------- --------- ---------
539,023 94,414 116,819 477,151
Shares redeemed........... (49,124) (907,270) (231,037) (636,342)
------- --------- --------- ---------
Net increase (decrease) in
shares.................. 489,899 (812,856) (114,218) (159,191)
Beginning of period....... -- 3,057,454 3,171,672 3,330,863
------- --------- --------- ---------
End of period............. 489,899 2,244,598 3,057,454 3,171,672
======= ========= ========= =========
</TABLE>
* For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
(a) Previously Westcore Oregon Tax-Exempt Fund Institutional Shares, which
became Pacifica Investor Shares.
46
<PAGE> 114
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
ARIZONA TAX-EXEMPT FUND WESTCORE ARIZONA TAX-FREE
-------------------------- FUND(A)
SIX MONTHS ENDED -------------------------
MARCH 31, 1996 YEAR
-------------------------- PERIOD ENDED ENDED
INSTITUTIONAL INVESTOR SEPTEMBER 30, MAY 31,
SHARES SHARES 1995* 1995
------------- ---------- ------------- ---------
<S> <C> <C> <C> <C>
Shares sold............... 1,649,275 71,570 146,719 597,182
Shares issued in
reinvestment of
distributions........... 235 11,883 9,677 27,333
--------- ---------- --------- ---------
1,649,510 83,453 156,396 624,515
Shares redeemed........... (137,520) (1,624,723) (160,074) (722,419)
--------- ---------- --------- ---------
Net increase (decrease) in
shares.................. 1,511,990 (1,541,270) (3,678) (97,904)
Beginning of period....... -- 2,298,392 2,302,070 2,399,974
--------- ---------- --------- ---------
End of period............. 1,511,990 757,122 2,298,392 2,302,070
========= ========== ========= =========
</TABLE>
* For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
(a) Previously Westcore Arizona Intermediate Tax Free Fund Institutional Shares,
which become Pacifica Investor Shares.
<TABLE>
<CAPTION>
CALIFORNIA TAX-EXEMPT FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995
--------------------------- --------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES* SHARES SHARES SHARES
------------- ----------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold.............. 11,641,430 244,006 -- 3,248,836
Shares issued in
reinvestment of
distributions.......... 15,020 47,168 -- 309,986
---------- ----------- ------- ----------
11,656,450 291,174 -- 3,558,822
Shares redeemed.......... (879,159) (11,697,647) -- (7,211,337)
---------- ----------- ------- ----------
Net increase in shares... 10,777,291 (11,406,473) -- (3,652,515)
Beginning of period...... -- 15,013,058 -- 18,665,573
---------- ----------- ------- ----------
End of period............ 10,777,291 3,606,585 -- 15,013,058
========== =========== ======= ==========
</TABLE>
* Institutional Shares commenced operations on October 1, 1995.
47
<PAGE> 115
P A C I F I C A
Notes to Financial Statements (Unaudited) (continued)
March 31, 1996
<TABLE>
<CAPTION>
CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
-------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995
-------------------------- --------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES* SHARES SHARES SHARES
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold............... 1,354,163 199,206 -- 2,817,460
Shares issued in
reinvestment of
distributions........... 5,157 11,310 -- 37,620
--------- ---------- ------- ----------
1,359,320 210,516 -- 2,855,080
Shares redeemed........... (187,842) (1,441,873) -- (3,515,111)
--------- ---------- ------- ----------
Net increase in shares.... 1,171,478 (1,231,357) -- (660,031)
Beginning of period....... -- 1,881,089 -- 2,541,120
--------- ---------- ------- ----------
End of period............. 1,171,478 649,732 -- 1,881,089
========= ========== ======= ==========
</TABLE>
* Institutional Shares commenced operations on October 1, 1995.
<TABLE>
<CAPTION>
NATIONAL TAX-EXEMPT FUND
------------------------ WESTCORE QUALITY TAX-
SIX MONTHS ENDED EXEMPT INCOME FUND(a)
MARCH 31, 1996 --------------------------
------------------------ PERIOD ENDED YEAR ENDED
INSTITUTIONAL INVESTOR SEPTEMBER 30, MAY 31,
SHARES SHARES 1995* 1995
------------- -------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold............... 576,934 12,739 40,810 385,307
Shares issued in
reinvestment of
distributions........... 3,143 6,852 7,417 19,534
------- -------- ------- -------
580,077 19,591 48,227 404,841
Shares redeemed........... (73,006) (564,817) (61,901) (366,565)
------- -------- ------- -------
Net increase in shares.... 507,071 (545,226) (13,674) 38,276
Beginning of period....... -- 932,728 946,402 908,126
------- -------- ------- -------
End of period............. 507,071 387,502 932,728 946,402
======= ======== ======= =======
</TABLE>
* For the period June 1, 1995 to September 30, 1995. Westcore Fund changed its
fiscal year end from May 31 to September 30.
(a) Previously Westcore Quality Tax-Exempt Income Fund Institutional Shares,
which became Pacifica Investor Shares.
6. SUBSEQUENT EVENTS
On April 1, 1996, First Interstate Bancorp was merged with and into Wells
Fargo & Company ("Wells Fargo") and FICM and FICAL became indirect wholly-owned
subsidiaries of Wells Fargo. In connection with this merger, FICM has changed
its name to Wells Fargo Investment Management, Inc. On May 17, 1996, the Trust's
Board of Trustees unanimously approved a proposed agreement and plan of
reorganization between the Trust and Stagecoach Funds, Inc. ("Stagecoach"), a
family of mutual funds advised by affiliates of Wells Fargo. The agreement will
involve the conveyance of the assets and liabilities of the Funds to
corresponding portfolios of Stagecoach. Consummation of the reorganization is
subject to (i) approval by the shareholders of the Funds at a meeting expected
to be held on or about July 16, 1996, and (ii) the satisfaction of normal
closing conditions.
48
<PAGE> 116
P A C I F I C A
OREGON TAX-EXEMPT FUND(1)
Financial Highlights (Unaudited)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
PERIOD ENDED
MARCH 31, 1996 PERIOD ENDED YEARS ENDED
-------------------------- SEPTEMBER 30, SEPTEMBER 30,
INSTITUTIONAL INVESTOR --------------- -------------------
SHARES** SHARES 1995(a) 1995 1994
------------- -------- ------------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $ 16.38 $ 16.38 $ 16.47 $ 16.17 $ 16.79
------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*.............................. 0.32 0.40 0.28 0.82 0.84
Net gain (loss) on securities (both realized and
unrealized)*...................................... (0.01) (0.01) (0.08) 0.39 (0.43)
------- -------- ------- ------- -------
Total from Investment Operations.................. 0.31 0.39 0.20 1.21 0.41
------- -------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.32) (0.40) (0.29) (0.87) (0.82)
Distributions from net realized gain on
investments....................................... -- -- -- (0.04) (0.21)
------- -------- ------- ------- -------
Total Distributions............................... (0.32) (0.40) (0.29) (0.91) (1.03)
----- -------- ------- ------- -------
Net Asset Value, End of Period...................... $ 16.37 $ 16.37 $ 16.38 $ 16.47 $ 16.17
========= ======== ======== ======== ========
Total Return (not reflecting sales load).......... 2.38% 2.35% 3.67% 7.92% 2.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)................... $ 8,018 $36,735 $50,077 $52,245 $53,846
Ratio of Expenses to Average Net Assets............. 0.71%(b) 0.81%(b) 0.70%(b) 0.70% 0.62%
Effect of Waivers on above Ratios................... 0.26%(b) 0.26%(b) 0.31%(b) 0.20% 0.22%
Ratio of Net Investment Income to Average Net
Assets............................................ 4.89%(b) 4.79%(b) 5.01%(b) 5.19% 4.90%
Portfolio turnover rate............................. 3% 3% 57% 15% 22%
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------------
1993 1992 1991
------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period................. $ 16.07 $ 15.74 $ 15.27
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*.............................. 0.86 0.91 0.94
Net gain (loss) on securities (both realized and
unrealized)*...................................... 0.76 0.38 0.47
------- ------- -------
Total from Investment Operations.................. 1.62 1.29 1.41
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income................ (0.86) (0.92) (0.94)
Distributions from net realized gain on
investments....................................... (0.04) (0.04) --
------- ------- -------
Total Distributions............................... (0.90) (0.96) (0.94)
------- ------- -------
Net Asset Value, End of Period...................... $ 16.79 $ 16.07 $ 15.74
======== ======== ========
Total Return (not reflecting sales load).......... 10.36% 8.45% 9.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)................... $45,435 $25,002 $14,607
Ratio of Expenses to Average Net Assets............. 0.60% 0.60% 0.55%
Effect of Waivers on above Ratios................... 0.31% 0.38% 0.48%
Ratio of Net Investment Income to Average Net
Assets............................................ 5.34% 5.81% 6.27%
Portfolio turnover rate............................. 6% 17% 23%
</TABLE>
1. The Fund operated as a series of Westcore Trust from its
commencement of operations until it was reorganized as a series of
Pacifica Funds Trust on October 1, 1995.
* Per share data based upon average monthly shares outstanding.
** Institutional Shares commenced operations on October 1, 1995.
(a) From June 1, 1995 through September 30, 1995. On October 1, 1995,
the Fund changed its fiscal year end from May 31 to September 30.
(b) Annualized.
49
<PAGE> 117
P A C I F I C A
ARIZONA TAX-EXEMPT FUND(1)
Financial Highlights (Unaudited) (continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1996
-------------------------- PERIOD ENDED YEARS ENDED MAY 31,
INSTITUTIONAL INVESTOR SEPTEMBER 30, ------------------------------------------
SHARES(A) SHARES 1995(c) 1995 1994 1993 1992(a)
------------- ---------- ------------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period............................. $ 10.71 $10.71 $ 10.68 $ 10.48 $ 10.64 $ 10.09 $10.00
------ -------- ------ ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*............. 0.25 0.24 0.17 0.51 0.50 0.49 0.09
Net gain (loss) on securities (both
realized and unrealized)*........ (0.10) (0.10) 0.06 0.23 (0.15) 0.55 0.08
------ -------- ------ ------- ------- ------- ------
Total from Investment
Operations..................... 0.15 0.14 0.23 0.74 0.35 1.04 0.17
------ -------- ------ ------- ------- ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment
income........................... (0.25) (0.24) (0.20) (0.53) (0.50) (0.49) (0.08)
Distributions from net realized
gain on investments.............. (0.02) (0.02) -- (0.01) (0.01) -- --
------ -------- ------ ------- ------- ------- ------
Total Distributions.............. (0.27) (0.26) (0.20) (0.54) (0.51) (0.49) (0.08)
------ -------- ------ ------- ------- ------- ------
Net Asset Value, End of Period..... $ 10.59 $10.59 $ 10.71 $ 10.68 $ 10.48 $ 10.64 $10.09
============ ======== ============== ======== ======== ======== =======
Total Return (not reflecting
sales load).................... 1.51% 1.37% 6.55% 7.35% 3.28% 10.50% 7.02%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000's).......................... $16,015 $8,020 $24,622 $24,581 $25,153 $22,430 $4,690
Ratio of Expenses to Average Net
Assets........................... 0.40%(b) 0.60%(b) 0.45%(b) 0.40% 0.31% 0.20% 0.68%(b)
Effect of Waivers on above
Ratios........................... 0.59%(b) 0.59%(b) 0.93%(b) 0.73% 0.69% 0.98% 1.40%(b)
Ratio of Net Investment Income to
Average Net Assets............... 4.70%(b) 4.50%(b) 4.73%(b) 4.89% 4.72% 4.98% 4.32%(b)
Portfolio turnover rate............ 27% 27% 62% 14% 28% 4% 0%
</TABLE>
1. The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
* Per share data based upon average monthly shares outstanding.
(a) Fund commenced operations on March 2, 1992 and Institutional Shares
commenced operations on October 1, 1995.
(b) Annualized.
(c) From June 1, 1995 through September 30, 1995. On October 1, 1995, the Fund
changed its fiscal year end from May 31 to September 30.
50
<PAGE> 118
P A C I F I C A
CALIFORNIA TAX-EXEMPT FUND
Financial Highlights (Unaudited) (continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1996
-------------------------- YEARS ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR ----------------------------------
SHARES** SHARES 1995 1994 1993
------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............................ $ 10.75 $ 10.75 $ 10.42 $ 11.49 $ 10.82
------------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*......................................... 0.27 0.26 0.54 0.54 0.57
Net gain (loss) on securities (both realized and
unrealized)*................................................. 0.04 0.04 0.44 (0.87) 0.73
------------- -------- -------- -------- --------
Total from Investment Operations............................. 0.31 0.30 0.98 (0.33) 1.30
------------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income........................... (0.27) (0.26 ) (0.54) (0.54) (0.57)
Distributions from net realized gain on investments............ -- -- (0.11) (0.20) (0.06)
------------- -------- -------- -------- --------
Total Distributions.......................................... (0.27) (0.26 ) (0.65) (0.74) (0.63)
------------- -------- -------- -------- --------
Net Asset Value, End of Period................................. $ 10.79 $ 10.79 $ 10.75 $ 10.42 $ 11.49
============ ======== ========= ========= =========
Total Return (not reflecting sales load)..................... 2.85% 2.78% 9.82% (2.99)% 12.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).............................. $ 116,317 $38,926 $161,343 $194,419 $226,303
Ratios of Expenses to Average Net Assets....................... 0.87%(a) 0.97%(a) 0.91% 0.94% 0.87%
Effect of Waivers on above Ratios.............................. 0.00%(a) 0.00%(a) 0.02% 0.02% 0.07%
Ratios of Net Investment Income to Average Net Assets.......... 4.84%(a) 4.74%(a) 5.13% 4.96% 5.11%
Portfolio turnover rate........................................ 11% 11% 42% 36% 40%
<CAPTION>
YEARS ENDED
SEPTEMBER 30,
--------------------
1992 1991
-------- --------
<S> <C> <C>
Net Asset Value, Beginning of Period............................ $ 10.52 $ 9.88
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*......................................... 0.59 0.62
Net gain (loss) on securities (both realized and
unrealized)*................................................. 0.30 0.64
-------- --------
Total from Investment Operations............................. 0.89 1.26
-------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income........................... (0.59) (0.62)
Distributions from net realized gain on investments............ -- --
-------- --------
Total Distributions.......................................... (0.59) (0.62)
-------- --------
Net Asset Value, End of Period................................. $ 10.82 $ 10.52
========= =========
Total Return (not reflecting sales load)..................... 8.71% 13.13%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's).............................. $198,347 $140,127
Ratios of Expenses to Average Net Assets....................... 0.80% 0.57%
Effect of Waivers on above Ratios.............................. 0.11% 0.43%
Ratios of Net Investment Income to Average Net Assets.......... 5.51% 6.06%
Portfolio turnover rate........................................ 14% 5%
</TABLE>
- ---------------
* Per share data based upon average monthly shares outstanding.
** Institutional Shares commenced operations on October 1, 1995.
(a) Annualized.
51
<PAGE> 119
P A C I F I C A
CALIFORNIA SHORT-TERM TAX-EXEMPT FUND
Financial Highlights (Unaudited) (continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1996
------------------------- YEARS ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR --------------------------------
SHARES(a) SHARES 1995 1994 1993(a)
------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 10.15 $10.15 $ 9.96 $ 10.16 $ 10.00
------ -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*........................................... 0.20 0.20 0.41 0.39 0.24
Net gain (loss) on securities (both realized and unrealized)*.... (0.02) (0.02) 0.19 (0.20) 0.16
------ -------- -------- -------- --------
Total from Investment Operations............................... 0.18 0.18 0.60 0.19 0.40
------ -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income............................. (0.20) (0.20) (0.41) (0.39) (0.24)
Distributions from net realized gain on investments.............. (0.01) (0.01) -- -- --
------ -------- -------- -------- --------
Total Distributions............................................ (0.21) (0.21) (0.41) (0.39) (0.24)
------ -------- -------- -------- --------
Net Asset Value, End of Period................................... $ 10.12 $10.12 $ 10.15 $ 9.96 $ 10.16
============ ======== ======== ======== ========
Total Return (not reflecting sales load)....................... 1.90% 1.80% 6.13% 1.93% 4.09%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)................................ $11,854 $6,573 $ 19,095 $ 25,315 $ 40,637
Ratios of Expenses to Average Net Assets......................... 0.60%(b) 0.76%(b) 0.64% 0.56% 0.28%(b)
Effect of Waivers on above Ratios................................ 0.38%(b) 0.38%(b) 0.53% 0.53% 0.78%(b)
Ratios of Net Investment Income to Average Net Assets............ 4.07%(b) 3.91%(b) 4.12% 3.88% 3.53%(b)
Portfolio turnover rate.......................................... 18% 18% 96% 31% 23%
</TABLE>
- ---------------
* Per share data based upon average monthly shares outstanding.
(a) Fund commenced operations on January 20, 1993 and Institutional Shares
commenced operations on October 1, 1995.
(b) Annualized.
52
<PAGE> 120
P A C I F I C A
NATIONAL TAX-EXEMPT FUND(1)
Financial Highlights (Unaudited) (continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1996 PERIOD ENDED
------------------------- SEPTEMBER 30,
INSTITUTIONAL INVESTOR -------------
SHARES(a) SHARES 1995(c)
------------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period....................................... $ 15.42 $15.34 $ 15.28
------ ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*.................................................... 0.34 0.36 0.24
Net gain (loss) on securities (both realized and unrealized)*............. (0.13) (0.05) 0.08
------ ------ -------
Total from Investment Operations........................................ 0.21 0.31 0.32
------ ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income...................................... (0.34) (0.36) (0.26)
Distributions from net realized gain on investments....................... -- -- --
------ ------ -------
Total Distributions..................................................... (0.34) (0.36) (0.26)
------ ------ -------
Net Asset Value, End of Period............................................ $ 15.29 $15.29 $ 15.34
====== ====== =======
Total Return (not reflecting sales load)................................ 2.01% 2.01% 6.53%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)......................................... $ 7,753 $5,926 $14,305
Ratios of Expenses to Average Net Assets.................................. 0.40%(b) 0.40%(b) 0.35%(b)
Effect of Waivers on above Ratios......................................... 0.67%(b) 0.67%(b) 1.50%(b)
Ratios of Net Investment Income to Average Net Assets..................... 4.65%(b) 4.65%(b) 4.65%(b)
Portfolio turnover rate................................................... 40% 40% 86%
<CAPTION>
YEARS ENDED MAY 31,
-----------------------------------------------
1995 1994 1993(a)
------------- ------------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period....................................... $ 14.98 $ 15.17 $ 15.00
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*.................................................... 0.68 0.64 0.17
Net gain (loss) on securities (both realized and unrealized)*............. 0.32 (0.17) 0.15
------- ------- ------
Total from Investment Operations........................................ 1.00 0.47 0.32
------- ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income...................................... (0.70) (0.64) (0.15)
Distributions from net realized gain on investments....................... -- (0.02) --
------- ------- ------
Total Distributions..................................................... (0.70) (0.66) (0.15)
------- ------- ------
Net Asset Value, End of Period............................................ $ 15.28 $ 14.98 $ 15.17
======= ======= ======
Total Return (not reflecting sales load)................................ 6.97% 3.07% 5.65%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000's)......................................... $ 14,458 $ 13,600 $ 7,457
Ratios of Expenses to Average Net Assets.................................. 0.35% 0.27% 0.25%(b)
Effect of Waivers on above Ratios......................................... 1.16% 1.31% 1.74%(b)
Ratios of Net Investment Income to Average Net Assets..................... 4.59% 4.29% 3.88%(b)
Portfolio turnover rate................................................... 23% 19% 18%
</TABLE>
1. The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
* Per share data based upon average monthly shares outstanding.
(a) Fund commenced operations on January 15, 1993 and Institutional Shares
commenced operations on October 1, 1995.
(b) Annualized.
(c) From June 1, 1995 through September 30, 1995. On October 1, 1995, the Fund
changed its fiscal year end from May 31 to September 30.
53
<PAGE> 121
P A C I F I C A
BOARD OF TRUSTEES
<TABLE>
<S> <C>
JOSEPH N. HANKIN*+ President, Westchester
Community College
RICHARD A. WEDEMEYER* Vice President, Performance
Advantage, Inc.
JOHN E. HEILMANN* Former Chairman, Distillers
Somerset, Inc.
DENNIS W. DRAPER Associate Professor of
Finance, University of
Southern California
JACK D. HENDERSON, ESQ. Attorney-at-Law
* Member of Audit Committee
+ Member of Nominating
Committee
- ----------------------------------------------------------------
OFFICERS
MICHAEL C. PETRYCKI President
STEVEN D. BLECHER Executive Vice President
JOAN V. FIORE Vice President & Secretary
JOHN J. PILEGGI Vice President & Treasurer
DONALD E. BROSTROM Assistant Treasurer
</TABLE>
<PAGE> 122
INVESTMENT ADVISOR
Wells Fargo Investment Management, Inc.
P.O. Box 7066
San Francisco, California 94120-7066
ADMINISTRATOR
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
Pacifica Funds Distributor Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
Wells Fargo Bank, N.A.
P.O. Box 7066
San Francisco, California 94120-7066
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE PACIFICA FAMILY
OF MUTUAL FUNDS. ITS USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES
IS AUTHORIZED ONLY IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE TRUST'S
CURRENT PROSPECTUS.
[PACIFICA LOGO]
<PAGE> 123
[PACIFICA LOGO]
PACIFICA SHORT-TERM GOVERNMENT
BOND FUND
PACIFICA INTERMEDIATE GOVERNMENT
BOND FUND
PACIFICA INTERMEDIATE BOND FUND
PACIFICA ASSET PRESERVATION FUND
PACIFICA GOVERNMENT INCOME FUND
SEMI-ANNUAL REPORT
MARCH 31, 1996
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, FIRST INTERSTATE, WELLS FARGO OR ANY OTHER BANK, AND ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. MUTUAL FUND SHARES INVOLVE CERTAIN
INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
<PAGE> 124
[LOGO] P A C I F I C A
- ------------------------------------------------------------------------------
May 17, 1996
Dear Shareholder:
We are pleased to present the March 31, 1996 Semi-Annual Report for the
Pacifica Funds. This report includes unaudited financial statements, as well as
a six-month look back at the economic factors which influenced the Funds'
performance and our expectations for the remainder of this fiscal year.
FIRST INTERSTATE AND WELLS FARGO
On April 1, 1996, First Interstate Bancorp merged into Wells Fargo &
Company ("Wells Fargo"). As a result of this merger, First Interstate Capital
Management, Inc. ("FICM"), the investment advisor to the Pacifica Funds, became
a wholly-owned subsidiary of Wells Fargo. Subsequently, FICM was renamed Wells
Fargo Investment Management, Inc. ("WFIM").
By law, the merger of First Interstate Bancorp into Wells Fargo resulted in
the automatic termination of the then current advisory agreements with FICM. You
may have already received, or will shortly be receiving, a proxy/prospectus that
describes proposed replacement advisory agreements with WFIM. The
proxy/prospectus also describes a proposed reorganization of each Pacifica Fund
into a corresponding portfolio of Stagecoach Funds, Inc., an open-end investment
company advised by Wells Fargo Bank, N.A., which is also a wholly-owned
subsidiary of Wells Fargo.
ECONOMIC AND INVESTMENT MARKET COMMENT
Despite volatility in the financial markets, uncertainty about the federal
budget debate, a harsh winter in most of the U.S. and some mixed economic
signals, the economy developed better than expected momentum at the end of 1995
and in the first quarter of 1996, growing at a surprising 2.5% according to the
Department of Commerce's Gross Domestic Product index (GDP). This momentum is
expected to continue into the second quarter, then slow during the second half
of 1996. Modest overall growth should help keep inflationary pressures in check,
despite some concern about energy and grain prices and potential increases in
wages.
This has generally been good news for the financial markets. The stock
market extended 1995's impressive gains into early 1996, despite some
<PAGE> 125
turbulence and investor nervousness. Interest rate sensitive stocks, such as
banks, performed well as did telephone utilities and some insurance companies.
Technology stocks suffered a sell off in the fourth quarter of 1995 but have
begun to rebound in 1996. Traditional early cycle industries, including
retailing, have done well, but for reasons discussed below, we do not believe
consumer spending will be sufficiently robust to sustain their advance.
We had expected equities to produce 8 to 12% returns for all of 1996. The
Dow Jones Industrial Average, however, returned 9.8% during the first three
months of the year. Broader market indices such as the S&P 500 Index produced a
return of 5.4% over the same period and the S&P 400 Midcap Index returned 6.2%.
The comparative strength of the Dow Jones can be attributed to continuing strong
flows of investment dollars into equity mutual funds and the surprising
resilience of the economy.
Results for the bond markets were strong throughout 1995, based on the
perception that the economy was heading into a recession and that the Federal
Reserve would continue its policy of lowering interest rates. Expectations
changed and the market sold off sharply, with yields rising more than 1%, after
the March 8 Labor Department statistics showed surprising jobs growth. This is
likely to translate into better than expected economic growth in the second
quarter. Although the price of gold spiked up in February and there have been
recent increases in energy and grain prices, we do not expect the Consumer Price
Index to be significantly above 3% for 1996. Higher interest rates and their
moderating effect on housing should reduce economic growth later in the year and
allow the bond market to recover somewhat, especially if the Fed recognizes the
need to resume easing at that time.
Among general economic indicators of note is the resurgence in consumer
spending during February and March after having been fairly restrained during
the Christmas season. However, this was attributable in large part to tax
refunds which will not continue to sustain spending growth. In addition, the
income needed to service the growth in credit card debt, the increase in
personal savings, and the record dollars flowing into mutual funds all represent
reductions in future consumer spending.
Spending on capital assets slowed in early 1996, after significant growth
in 1994 and 1995. The spending which did occur went largely to enhance
efficiency. Looking ahead, $120 billion is expected to be spent on information
systems during 1996. Spending on physical plant capacity is less clear since the
trend has been to acquire rather than to build capacity. Industrial production
has risen modestly, but recent declines in inventories suggest that production
may be due for an upswing.
By the end of the year, we expect slower overall growth and moderate
inflation fears. The stock market is expected to continue to provide investors
with good opportunities for a positive return, although not as high
2
<PAGE> 126
as in 1995. We expect the bond market to recover from its recent set-back as
inflation becomes less of an issue and the economy fails to sustain its
surprising growth.
We thank you for entrusting us with the management of your money. We will
continue to exert our best efforts to bring you rewarding results.
/s/ Michael C. Petrycki
------------------------
Michael C. Petrycki
President
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", and "S&P MidCap Index(R)", are
registered trademarks of McGraw-Hill, Inc. and "Dow Jones(R)" is a registered
trademark of the Dow Jones Company. The S&P 500 Index is an unmanaged index of
500 widely held common stocks representing, among others, industrial, financial,
utility and transportation companies listed or traded on national exchanges or
over-the-counter markets. The S&P MidCap Index is an unmanaged index listing
midcap common stocks. The Dow Jones Industrial Average is a price-weighted
average of thirty blue chip stocks listed on the New York Stock Exchange.
Economic statistics including the Consumer Price Index and the Gross Domestic
Product are provided by the United States Department of Labor and the Department
of Commerce. This is neither an offer to sell nor a solicitation of an offer to
buy any of these securities. The offer can be made only by the proxy/prospectus.
3
<PAGE> 127
PACIFICA SHORT-TERM GOVERNMENT BOND FUND
The Short-Term Government Bond Fund returned 1.98% after expenses (2.03%
for Institutional shares) during the first half of its fiscal year. During the
most recently completed quarter, the Fund increased its exposure to high
quality, high yielding mortgage-backed securities and agency debentures, while
decreasing its exposure to lower yielding U.S. Treasury obligations. The Fund
closed the quarter with an average maturity of 2.0 years and a duration of 1.7
years. At quarter end, the Fund was 100% invested in U.S. Government securities
and repurchase agreements collateralized by U.S. government securities, well
above the prospectus mandated 65% weighting in these securities. The Fund's
average maturity and duration are in line with its market benchmark, the Lehman
1-3 Year Government Index, which has an average maturity of 1.9 years and a
duration of 1.7 years.
PACIFICA INTERMEDIATE GOVERNMENT BOND FUND
The Intermediate Government Bond Fund returned 1.60% after expenses (1.63%
for Institutional Shares) during the first half of the Fund's fiscal year.
During the most recent quarter, the Fund sold some Ginnie Mae holdings and
purchased long-term U.S. Treasury securities and cash equivalent investments.
The net effect of these trades was to increase the duration of the Fund from 4.3
years to 4.8 years. Further, the Fund's average maturity increased from 7.4
years to 8.4 years and is now consistent with its market benchmark -- the
Salomon Brothers Broad Investment Grade Index -- which has an average maturity
of 8.9 years and a duration of 4.8 years.
PACIFICA INTERMEDIATE BOND FUND
The Intermediate Bond Fund returned 2.17% after expenses (2.20% for
Institutional Shares) during the first half of the Fund's fiscal year. The
Fund's strategy continues to be low risk in nature, with purchases being added
mainly in the short-intermediate sector of the curve. In keeping with our
strategy to keep the Fund well diversified, new positions were added in the U.S.
Treasury, finance, entertainment and asset-backed securities sectors. As of
March 31, the Fund's average maturity was 4.6 years and its duration was 3.3
years, in line with its benchmark, the Lehman Intermediate Government/Corporate
Index. The Fund is conservatively structured with 69% of its assets invested in
U.S. Government and Agency backed mortgage-backed securities, and the remainder
invested in high quality corporate notes, asset-backed securities, and cash
equivalents.
PACIFICA ASSET PRESERVATION FUND
The Asset Preservation Fund returned 2.88% after expenses (3.02% for
Institutional Shares) during the first half of its fiscal year. During the most
recent quarter, the Fund increased its holdings of very short-term,
4
<PAGE> 128
high quality and high yielding mortgage-backed securities and cash.
Corresponding decreases were made in U.S. Government, corporate and asset-backed
securities. As a result of this activity, the average maturity of the Fund
decreased by one month, to eleven months, but the duration of the Fund increased
by two months, to eight months. The Fund invests in a broad mix of government,
corporate, mortgage, asset-backed and money market instruments. This diversity
helps preserve the relative stability of the Fund's share price.
PACIFICA GOVERNMENT INCOME FUND
The Government Income Fund returned 1.30% after expenses (1.46% for
Institutional Shares) during the first half of its fiscal year. During the most
recent quarter, the Fund extended its average maturity from 7.7 years to 8.7
years and its duration from 4.1 years to 4.7 years. These duration extension
trades were executed in order to bring the characteristics of the Fund's
portfolio more closely in line with the Fund's 1996 market benchmark -- the
Salomon Brothers Broad Investment Grade Index. The Salomon Brothers Broad
Investment Grade Index has an average maturity of 8.9 years and a duration of
4.8 years. The Fund continues to be principally invested in high quality
securities, and closed the quarter with a 73% allocation to U.S. Government
securities. The Fund will continue to have an intermediate maturity and will
have at least 65% of its assets invested in U.S. government securities.
Past performance is not a guarantee of future results. When redeemed, shares of
the Funds may be worth more or less than their original cost. Shares of the Fund
are not obligations of nor guaranteed by the U.S. Government, First Interstate
Bancorp, or Wells Fargo Bank, and are not insured by FDIC. The Lehman 1-3 Year
Government Index is an unmanaged index composed of a broad base of short-term
government securities. The Salomon Brothers Broad Investment Grade Index is an
unmanaged index composed of a broad base of fixed income securities. The Lehman
Intermediate Government/Corporate Index is an unmanaged index composed of a
broad base of government and corporate securities that mature in 1 to 10 years.
5
<PAGE> 129
P A C I F I C A
SHORT-TERM GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. TREASURY NOTES -- 62.81%
$1,000,000 6.75%, 02/28/1997.............. $ 996,135 $ 1,011,562
2,000,000 6.50%, 05/15/1997.............. 1,997,372 2,020,624
2,500,000 8.50%, 05/15/1997.............. 2,559,349 2,580,468
1,500,000 6.125%, 05/31/1997............. 1,502,265 1,509,375
1,000,000 5.75%, 10/31/1997.............. 974,307 998,750
1,000,000 7.375%, 11/15/1997............. 997,734 1,024,687
2,850,000 7.875%, 01/15/1998............. 2,853,237 2,950,639
3,300,000 8.25%, 07/15/1998.............. 3,376,471 3,468,092
1,000,000 7.125%, 10/15/1998............. 1,028,577 1,029,375
1,000,000 6.375%, 07/15/1999............. 1,036,876 1,011,250
3,700,000 8.00%, 08/15/1999.............. 4,010,896 3,923,156
----------- -----------
TOTAL U.S. TREASURY NOTES...... 21,333,219 21,527,978
----------- -----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 24.00%
FEDERAL HOME LOAN
BANK -- 11.83%
2,765,000 8.60%, 06/25/1999.............. 3,031,581 2,955,052
1,030,000 8.45%, 07/26/1999.............. 1,133,656 1,099,334
----------- -----------
4,165,237 4,054,386
----------- -----------
FEDERAL HOME LOAN MORTGAGE
CORP. -- 4.51%
1,500,000 7.125%, 07/21/1999............. 1,580,986 1,545,042
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 3.55%
700,858 1991-26E 8.00%, 01/25/2005..... 704,707 706,521
500,000 1989-59H 7.75%, 10/25/2018..... 510,755 508,125
----------- -----------
1,215,462 1,214,646
----------- -----------
STUDENT LOAN MARKETING
ASSOCIATION VARIABLE RATE
NOTE -- 4.11%
1,409,970 5.955%, 04/25/2004*............ 1,409,970 1,409,970
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................. 8,371,655 8,224,044
----------- -----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 130
P A C I F I C A
SHORT-TERM GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 7.52%
FEDERAL HOME LOAN MORTGAGE
CORP.
$ 300,000 160 5.00%, 04/15/2003.......... $ 295,626 $ 297,342
766,933 1657A 4.75%, 02/15/2004........ 761,777 762,769
243,725 1185A 6.75%, 07/15/2006........ 245,141 245,095
980,158 1370C 5.00%, 08/15/2011........ 979,066 977,590
292,320 1078F 7.15%, 10/15/2019........ 295,053 294,732
----------- -----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS.................. 2,576,663 2,577,528
----------- -----------
ASSET-BACKED
SECURITIES -- 2.93%
1,000,000 Vendee Mortgage Trust 1992-2 B
6.75%, 07/15/2011............ 1,010,093 1,004,570
----------- -----------
TOTAL INVESTMENTS.............. 33,291,630 33,334,120
----------- -----------
REPURCHASE AGREEMENT -- 1.59%
545,209 Goldman Sachs & Co., dated
03/29/1996 5.375%, due
04/01/1996 (Proceeds at
maturity $545,454)
Collateralized by: $426,000
U.S. Treasury Bonds 10.75%,
08/15/2005................... 545,209 545,209
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE
AGREEMENT -- 98.85%.......... $33,836,839+ 33,879,329
===========
OTHER ASSETS LESS
LIABILITIES -- 1.15%......... 393,591
-----------
NET ASSETS -- 100.00%.......... $34,272,920
===========
</TABLE>
* Rate shown is rate in effect at March 31, 1996.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
7
<PAGE> 131
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. TREASURY BONDS -- 14.72%
$ 500,000 6.25%, 02/15/2003.............. $ 520,894 $ 498,437
500,000 7.25%, 05/15/2004.............. 551,552 526,719
600,000 7.50%, 02/15/2005.............. 674,271 643,500
500,000 7.25%, 05/15/2016.............. 548,839 522,343
1,500,000 6.25%, 08/15/2023.............. 1,490,378 1,387,968
----------- -----------
TOTAL U.S. TREASURY BONDS...... 3,785,934 3,578,967
----------- -----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 56.58%
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 56.58%
4,943 12.00%, 01/20/1999 -
Pool #000070................. 4,866 5,269
16,568 12.00%, 04/20/1999 -
Pool #000116................. 16,093 17,680
6,028 12.50%, 12/15/1999 -
Pool #116702................. 6,121 6,546
428,540 9.00%, 02/15/2005 -
Pool #005120................. 419,750 451,572
398,996 6.50%, 02/20/2008 -
Pool #000864................. 398,511 392,014
318,681 9.50%, 05/20/2016 -
Pool #157247................. 340,789 336,207
325,059 9.00%, 07/15/2016 -
Pool #158370................. 320,829 342,530
205,813 9.00%, 09/20/2016 -
Pool #158583................. 219,068 214,044
649,031 9.00%, 09/20/2016 -
Pool #170298................. 689,225 674,989
308,715 9.00%, 10/15/2016 -
Pool #176529................. 293,306 323,200
157,036 9.50%, 11/15/2016 -
Pool #161673................. 167,595 168,421
323,897 9.00%, 07/20/2017 -
Pool #227132................. 345,175 336,851
230,369 9.00%, 04/20/2019 -
Pool #001168................. 245,309 239,583
209,353 8.50%, 09/15/2019 -
Pool #278822................. 216,174 218,576
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 132
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES (CONTINUED)
$ 246,209 9.00%, 11/15/2019 -
Pool #282857................. $ 250,797 $ 259,441
195,426 9.00%, 12/15/2019 -
Pool #281510................. 195,426 205,929
208,984 9.50%, 03/15/2020 -
Pool #288111................. 225,990 224,135
147,248 9.50%, 11/15/2020 -
Pool #175902................. 145,966 157,922
126,255 8.50%, 04/15/2021 -
Pool #294227................. 123,273 131,818
200,275 9.00%, 04/20/2021 -
Pool #001596................. 210,232 208,285
630,468 9.00%, 12/20/2021 -
Pool #001740................. 672,081 655,683
830,872 9.00%, 07/20/2022 -
Pool #000058................. 884,081 864,102
239,577 8.50%, 11/15/2022 -
Pool #389023................. 240,917 250,132
1,292,365 7.50%, 03/15/2023 -
Pool #336930................. 1,350,293 1,292,107
361,477 7.50%, 04/15/2023 -
Pool #338486................. 375,288 361,405
748,374 7.50%, 04/15/2023 -
Pool #352441................. 776,967 748,224
889,817 7.50%, 05/15/2023 -
Pool #356898................. 915,249 889,639
812,681 7.50%, 06/15/2023 -
Pool #358804................. 840,200 812,519
860,640 7.50%, 06/15/2023 -
Pool #349785................. 889,783 860,468
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 133
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES (CONTINUED)
$ 727,513 7.50%, 01/15/2024 -
Pool #381430................. $ 759,161 $ 727,964
1,386,058 7.50%, 06/15/2025 -
Pool #291124................. 1,419,041 1,379,821
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................. 13,957,556 13,757,076
----------- -----------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 21.16%
FEDERAL HOME LOAN MORTGAGE
CORP. -- 9.06%
2,298,000 1993-1466PJ 7.00%,
09/15/2021................... 2,295,704 2,201,898
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 12.10%
550,000 1990-133J 9.25%, 11/25/2003.... 552,049 575,426
720,916 1991-G-8D 8.50%, 03/25/2019.... 732,882 734,346
146,668 1992-87D 8.00%, 03/25/2017..... 147,803 146,294
1,500,000 1993-133J 7.00%, 12/25/2022.... 1,525,614 1,485,630
----------- -----------
2,958,348 2,941,696
----------- -----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS.................. 5,254,052 5,143,594
----------- -----------
TOTAL INVESTMENTS.............. 22,997,542 22,479,637
----------- -----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 134
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 6.86%
$1,668,323 Goldman Sachs & Co., dated
03/29/1996 5.375%, due
04/01/1996 (Proceeds at
maturity $1,669,070)
Collateralized by: $1,702,727
U.S. Treasury Bond 10.75%,
08/15/2005................... $ 1,668,323 $ 1,668,323
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE
AGREEMENT -- 99.32%.......... $24,665,865+ 24,147,960
===========
OTHER ASSETS LESS
LIABILITIES -- 0.68%......... 166,519
-----------
NET ASSETS -- 100.00%.......... $24,314,479
===========
</TABLE>
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
11
<PAGE> 135
P A C I F I C A
INTERMEDIATE BOND FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. TREASURY
OBLIGATIONS -- 39.39%
NOTES -- 33.52%
$ 700,000 6.75%, 02/28/1997.............. $ 704,816 $ 708,093
3,500,000 6.125%, 05/31/1997............. 3,510,618 3,521,875
1,000,000 8.75%, 10/15/1997.............. 1,026,713 1,044,062
1,250,000 7.875%, 04/15/1998............. 1,284,600 1,299,609
3,000,000 8.25%, 07/15/1998.............. 3,106,461 3,152,811
1,500,000 5.125%, 11/30/1998............. 1,459,525 1,471,875
1,000,000 5.875%, 03/31/1999............. 1,001,085 998,125
3,250,000 6.75%, 06/30/1999.............. 3,302,103 3,323,125
1,000,000 6.75%, 04/30/2000.............. 1,040,407 1,023,437
1,000,000 7.50%, 05/15/2002.............. 1,070,358 1,064,687
500,000 7.25%, 08/15/2004.............. 553,339 527,031
----------- -----------
18,060,025 18,134,730
----------- -----------
BOND -- 5.87%
2,550,000 10.75%, 02/15/2003............. 3,090,813 3,173,952
----------- -----------
TOTAL U.S. TREASURY
OBLIGATIONS.................. 21,150,838 21,308,682
----------- -----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 15.89%
FEDERAL HOME LOAN MORTGAGE
CORP. BONDS -- 2.11%
750,000 6.375%, 12/23/2003............. 749,334 724,096
400,000 8.19%, 10/06/2004.............. 399,113 417,881
----------- -----------
1,148,447 1,141,977
----------- -----------
FEDERAL HOME LOAN MORTGAGE
CORP. PASS-THROUGH
SECURITIES -- 0.28%
140,745 9.00%, 07/01/2016 -
Pool #274688................. 135,784 148,310
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION BONDS -- 3.43%
750,000 8.90%, 06/12/2000.............. 870,942 822,315
325,000 7.73%, 08/26/2004.............. 315,691 333,224
250,000 8.18%, 09/22/2004.............. 250,000 258,937
450,000 6.35%, 06/10/2005.............. 461,631 442,800
----------- -----------
1,898,264 1,857,276
----------- -----------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 136
P A C I F I C A
INTERMEDIATE BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 1.37%
$ 415,835 6.00%, 12/01/2008 -
Pool #264440................. $ 411,620 $ 399,332
357,128 6.50%, 01/01/2024 -
Pool #0050965................ 355,551 339,716
----------- -----------
767,171 739,048
----------- -----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 8.70%
39,372 11.50%, 04/15/2015 -
Pool #122382................. 41,705 44,847
324,185 9.50%, 05/20/2016 -
Pool #157247................. 345,971 342,013
12,660 9.00%, 09/15/2016 -
Pool #163047................. 12,881 13,341
205,813 9.00%, 09/20/2016 -
Pool #158583................. 218,483 214,044
163,585 9.00%, 02/15/2017 -
Pool #188769................. 166,444 172,376
24,335 9.00%, 02/15/2017 -
Pool #201783................. 24,760 25,643
140,915 10.00%, 08/15/2018 -
Pool #258377................. 144,524 155,359
151,061 10.00%, 08/15/2018 -
Pool #262027................. 154,929 166,545
10,272 9.00%, 11/15/2018 -
Pool #264106................. 10,454 10,825
142,034 9.00%, 03/15/2021 -
Pool #302683................. 144,568 149,667
269,412 9.00%, 04/15/2021 -
Pool #305078................. 274,222 283,892
51,140 9.00%, 08/15/2021 -
Pool #197650................. 52,054 53,888
207,876 9.00%, 10/20/2021 -
Pool #001704................. 219,341 216,190
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 137
P A C I F I C A
INTERMEDIATE BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES (CONTINUED)
$ 170,751 9.00%, 12/20/2021 -
Pool #001740................. $ 181,935 $ 177,581
239,577 8.50%, 11/15/2022 -
Pool #389023................. 240,903 250,132
1,453,910 7.50%, 03/15/2023 -
Pool #336930................. 1,516,027 1,453,620
562,298 7.50%, 04/15/2023 -
Pool #339486................. 583,236 562,185
410,324 7.50%, 11/20/2024 -
Pool #008552................. 413,609 415,293
----------- -----------
4,746,046 4,707,441
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................. 8,695,712 8,594,052
----------- -----------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 12.60%
FEDERAL HOME LOAN MORTGAGE
CORP. -- 2.66%
1,500,000 1993-1466PJ 7.00%,
09/15/2021................... 1,493,234 1,437,270
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 9.94%
341,065 1990-104E 9.00%, 09/25/2000.... 340,710 340,901
2,000,000 1990-133J 9.25%, 11/25/2003.... 2,004,816 2,092,460
1,441,831 1991-G-8D 8.50%, 03/25/2019.... 1,464,832 1,468,692
500,000 1992-17G 6.50%, 03/25/2020..... 490,127 484,325
1,000,000 1993-133J 7.00%, 12/25/2022.... 1,021,461 990,420
----------- -----------
5,321,946 5,376,798
----------- -----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS.................. 6,815,180 6,814,068
----------- -----------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 138
P A C I F I C A
INTERMEDIATE BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
ASSET-BACKED SECURITIES -- 5.86%
$1,500,000 Banc One Auto, 6.10%,
10/15/2002................... $ 1,499,299 $ 1,505,205
104,028 Rochester Community Savings
Bank Grantor Trust, 5.70%,
12/15/1997................... 104,063 103,958
500,000 Sears Credit Account Master
Trust II, 7.00%,
01/15/2004................... 499,320 512,980
1,000,000 Standard Credit Card Master
Trust, 8.35%, 01/07/2000..... 1,049,911 1,045,760
----------- -----------
TOTAL ASSET-BACKED
SECURITIES................... 3,152,593 3,167,903
----------- -----------
CORPORATE BONDS -- 20.50%
ENTERTAINMENT -- 2.12%
1,150,000 Walt Disney Co. ............... 1,148,334 1,145,285
----------- -----------
FINANCE -- 15.71%
500,000 ABN-AMRO Bank NV, 8.25%,
08/01/2009................... 508,013 528,750
500,000 First Chicago NBD Bancorp,
8.10%, 03/01/2002............ 499,702 533,432
1,000,000 Ford Capital BV, 9.125%,
05/01/1998................... 1,062,574 1,057,337
500,000 General Motors Acceptance
Corp., 7.75%, 04/15/1997..... 504,678 509,527
500,000 ITT Hartford Group, 8.20%,
10/15/1998................... 499,939 520,394
400,000 Kemper Corp., 6.875%,
09/15/2003................... 394,381 397,287
1,000,000 Lehman Brothers Holdings, Inc.,
5.75%, 02/15/1998............ 993,825 990,639
1,000,000 Morgan Stanley Group, 6.50%,
03/30/2001................... 1,001,194 994,892
1,000,000 Nationsbank Corp., 6.875%,
02/15/2005................... 1,005,007 992,314
1,000,000 Smith Barney Holdings, Inc.,
6.50%, 10/15/2002............ 993,172 979,565
1,000,000 U.S. West Capital Funding,
Inc., 6.31%, 11/01/2005...... 1,000,000 992,902
----------- -----------
8,462,485 8,497,039
----------- -----------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 139
P A C I F I C A
INTERMEDIATE BOND FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
CORPORATE BONDS (CONTINUED)
MANUFACTURING -- 0.96%
$ 500,000 Willamette Industries, Inc.,
7.75%, 07/15/2002............ $ 499,355 $ 521,258
----------- -----------
TECHNOLOGY -- 0.75%
400,000 IBM Corp., 7.50%, 06/15/2013... 410,650 405,622
----------- -----------
UTILITIES -- 0.96%
500,000 National Rural Utilities,
9.50%, 05/15/1997............ 512,743 518,790
----------- -----------
TOTAL CORPORATE BONDS.......... 11,033,567 11,087,994
----------- -----------
TOTAL INVESTMENTS.............. 50,847,890 50,972,699
----------- -----------
REPURCHASE AGREEMENT -- 4.48%
2,422,885 Goldman Sachs & Co., dated
03/29/1996, 5.375%, due
04/01/1996 (Proceeds at
maturity $2,423,970)
Collateralized by: $2,471,827
U.S. Treasury Bond 10.75%,
08/15/2005................... 2,422,885 2,422,885
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE
AGREEMENT -- 98.72%.......... $53,270,775+ 53,395,584
===========
OTHER ASSETS LESS
LIABILITIES -- 1.28%......... 691,826
-----------
NET ASSETS -- 100.00%.......... $54,087,410
===========
</TABLE>
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
16
<PAGE> 140
P A C I F I C A
ASSET PRESERVATION FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 15.76%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 0.36%
$ 150,025 6.50%, 11/01/1998 Pool
#68853....................... $ 148,383 $ 149,851
----------- -----------
SMALL BUSINESS ADMINISTRATION
VARIABLE RATE NOTES -- 12.23%
1,199,180 6.875%, 05/25/2016
Pool #501516*................ 1,199,781 1,232,914
3,786,482 6.50%, 03/25/2018
Pool #502139*................ 3,778,227 3,845,665
----------- -----------
4,978,008 5,078,579
----------- -----------
STUDENT LOAN MARKETING
ASSOCIATION VARIABLE RATE
NOTES -- 3.17%
1,315,972 5.695%, 04/25/2004*............ 1,315,972 1,315,972
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................. 6,442,363 6,544,402
----------- -----------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 24.10%
FEDERAL HOME LOAN MORTGAGE
CORP. -- 8.93%
1,500,000 160, 5.00%, 04/15/2003......... 1,470,689 1,486,710
669,049 1344-E, 7.00%, 12/15/2003...... 669,050 670,796
243,725 1185-A, 6.75%, 07/15/2006...... 245,524 245,095
876,960 1078-F, 7.15%, 10/15/2019...... 885,125 884,195
423,224 112-G, 8.80%, 01/15/2020....... 436,797 423,343
----------- -----------
3,707,185 3,710,139
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 15.17%
1,000,000 1992-150, 6.50%, 05/25/2017.... 995,483 998,800
1,885,706 1992-49E, 7.00%, 07/25/2017.... 1,885,706 1,888,403
1,000,000 1992-150G, 6.75%, 09/25/2018... 998,791 1,001,710
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 141
P A C I F I C A
ASSET PRESERVATION FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
-----------
<C> <S> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (CONTINUED)
$1,599,105 1991-14G, 7.00%, 12/25/2019.... $ 1,610,093 $ 1,606,125
798,774 1991-21, 7.00%, 12/25/2019..... 798,775 802,521
----------- -----------
6,288,848 6,297,559
----------- -----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS.................. 9,996,033 10,007,698
----------- -----------
ASSET-BACKED
SECURITIES -- 18.52%
117,600 Bank of the West 1989-1 9.10%,
09/15/2004................... 117,700 118,758
874,940 CFC Grantor Trust Series 7-1
8.65%, 10/15/1996............ 880,472 877,600
716,187 Eagle Credit Trust 19(a) 5.40%,
03/15/2000................... 715,307 711,962
250,670 Fleetwood Credit Co. Grantor
Trust 1989-A, 8.75%,
10/15/2004................... 248,760 253,172
555,673 Fleetwood Credit Co. Grantor
Trust 1992-A, 7.10%,
02/15/2007................... 553,840 560,363
1,962,612 Nationscredit Grantor Trust
1996-1 A, 5.85%,
09/15/2011................... 1,959,547 1,931,563
1,740,504 Olympic Automobile Receivables
Trust 1995-D, 5.80%,
10/15/1998................... 1,739,842 1,745,065
1,507,893 Western Financial Grantor Trust
1993-3 A1, 4.25%,
12/01/1998................... 1,483,693 1,493,433
----------- -----------
TOTAL ASSET-BACKED
SECURITIES................... 7,699,161 7,691,916
----------- -----------
CORPORATE BONDS -- 31.62%
AUTOMOTIVE LENDING -- 7.36%
3,000,000 General Motors Acceptance Corp.
7.75%, 04/15/1997............ 3,045,669 3,057,159
----------- -----------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 142
P A C I F I C A
ASSET PRESERVATION FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
CORPORATE BONDS (CONTINUED)
MISCELLANEOUS -- 17.03%
$2,000,000 Coors (Adolph) Inc. 8.95%,
06/16/1997................... $ 2,062,026 $ 2,069,444
3,000,000 Salomon Inc. 5.50%,
05/28/1996................... 3,003,106 2,997,543
2,000,000 Smith Barney Inc. 6.00%,
03/15/1997................... 1,997,202 2,004,289
----------- -----------
7,062,334 7,071,276
----------- -----------
UTILITIES -- 7.23%
3,000,000 Detroit Edison Co. 6.00%,
12/01/1996................... 3,000,000 3,000,354
----------- -----------
TOTAL CORPORATE BONDS.......... 13,108,003 13,128,789
----------- -----------
TOTAL INVESTMENTS.............. 37,245,560 37,372,805
----------- -----------
REPURCHASE AGREEMENT -- 8.72%
3,623,290 Goldman Sachs & Co.
dated 03/29/1996
5.375%, due 04/01/1996
(Proceeds at maturity
$3,624,913) Collateralized
by: $2,831,000 U.S. Treasury
Bond 10.75%, 08/15/2005...... 3,623,290 3,623,290
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE
AGREEMENT -- 98.72%.......... $40,868,850+ 40,996,095
===========
OTHER ASSETS LESS
LIABILITIES -- 1.28%......... 530,458
-----------
NET ASSETS -- 100.00%.......... $41,526,553
===========
</TABLE>
* Rate shown is rate in effect at March 31, 1996.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
19
<PAGE> 143
P A C I F I C A
GOVERNMENT INCOME FUND
Portfolio of Investments (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. TREASURY
OBLIGATIONS -- 23.74%
NOTES -- 10.37%
$1,000,000 6.375%, 08/15/2002............. $ 1,025,416 $ 1,005,625
1,000,000 6.25%, 02/15/2003.............. 1,041,638 996,875
1,000,000 7.25%, 05/15/2004.............. 1,102,731 1,053,437
3,000,000 7.50%, 02/15/2005.............. 3,175,934 3,217,500
1,250,000 8.125%, 08/15/2019............. 1,455,707 1,430,078
----------- -----------
7,801,426 7,703,515
----------- -----------
BONDS -- 13.37%
1,000,000 10.75%, 05/15/2003............. 1,066,575 1,249,062
3,000,000 7.25%, 05/15/2016.............. 3,324,463 3,134,061
6,000,000 6.25%, 05/15/2023.............. 5,914,740 5,551,872
----------- -----------
10,305,778 9,934,995
----------- -----------
TOTAL U.S. TREASURY
OBLIGATIONS.................. 18,107,204 17,638,510
----------- -----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 42.51%
FEDERAL HOME LOAN MORTGAGE
CORP. BONDS -- 4.13%
1,000,000 8.125%, 09/30/1996............. 1,004,809 1,013,642
2,000,000 8.00%, 09/15/2023.............. 2,074,429 2,053,000
----------- -----------
3,079,238 3,066,642
----------- -----------
FEDERAL HOME LOAN MORTGAGE
CORP. PASS-THROUGH
SECURITIES -- 3.66%
160,880 8.25%, 08/01/2001 -
Pool #220009................. 156,333 164,616
55,651 8.75%, 08/01/2008 -
Pool #189194................. 54,323 58,260
274,962 8.00%, 11/01/2008 -
Pool #544269................. 265,931 280,375
305,421 8.50%, 01/01/2009 -
Pool #291786................. 298,449 317,636
1,577,172 9.00%, 07/01/2017 -
Pool #536534................. 1,657,930 1,675,399
199,134 10.50%, 08/01/2019 -
Pool #546103................. 210,115 220,852
----------- -----------
2,643,081 2,717,138
----------- -----------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 144
P A C I F I C A
GOVERNMENT INCOME FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
FEDERAL NATIONAL MORTGAGE
ASSOCIATION BONDS -- 18.56%
$3,000,000 8.35%, 11/10/1999.............. $ 3,033,295 $ 3,206,280
5,000,000 8.625%, 11/10/2004............. 5,340,202 5,282,225
5,000,000 8.50%, 02/01/2005.............. 5,331,028 5,301,040
----------- -----------
13,704,525 13,789,545
----------- -----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION PASS-THROUGH
SECURITIES -- 6.22%
150,782 6.50%, 11/01/1998 -
Pool #68853.................. 149,132 150,607
364,756 8.75%, 03/01/2007 -
Pool #02783.................. 360,630 380,313
4,001,394 6.00%, 07/01/2008 -
Pool #50761.................. 3,988,118 3,842,591
27,851 9.50%, 02/01/2009 -
Pool #75336.................. 27,873 29,748
212,486 8.00%, 08/01/2018 -
Pool #83785.................. 201,801 216,536
----------- -----------
4,727,554 4,619,795
----------- -----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION -- 8.68%
2,054,406 9.00%, 08/15/2024*............. 2,162,727 2,168,693
2,184,094 9.00%, 09/15/2024*............. 2,299,254 2,305,595
2,029,000 6.50%, 05/15/2026*............. 1,977,386 1,979,941
----------- -----------
6,439,367 6,454,229
----------- -----------
STUDENT LOAN MARKETING
ASSOCIATION VARIABLE RATE
NOTE -- 1.26%
939,980 5.695%, 04/25/2004**........... 939,980 939,980
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................. 31,533,745 31,587,329
----------- -----------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 145
P A C I F I C A
GOVERNMENT INCOME FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 4.72%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION -- 3.82%
$ 729,509 1993-129A, 5.20%, 07/25/1999... $ 723,131 $ 727,307
677,321 1991-141 SP, 9.474%,
04/25/2010................... 681,372 679,015
628,568 1992-49E, 7.00%, 07/25/2017.... 627,693 629,468
799,552 1912-14G, 7.00%, 12/25/2019.... 805,046 803,063
----------- -----------
2,837,242 2,838,853
----------- -----------
FEDERAL HOME LOAN MORTGAGE
CORP. -- 0.90%
669,049 1334-E, 7.00%, 12/15/2003...... 669,050 670,796
----------- -----------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS.................. 3,506,292 3,509,649
----------- -----------
ASSET-BACKED
SECURITIES -- 9.87%
117,600 Bank of the West 1989-1, 9.10%,
09/15/2004................... 117,700 118,758
487,771 CFC Grantor Trust 7-1, 8.65%,
10/15/1996................... 490,855 489,254
2,000,000 Chrysler Auto Receivable Co.,
7.875%, 03/15/1998........... 1,979,057 2,013,020
Fleetwood Credit Company
Grantor Trust:
250,670 1989-A, 8.75%, 10/15/2004.... 248,760 253,172
555,673 1992-A, 7.10%, 02/15/2007.... 553,840 560,363
2,943,918 Nationscredit Grantor Trust
1996-1 A, 5.85%,
09/15/2011................... 2,939,320 2,897,345
1,000,000 Olympic Automobile Receivables
Trust Series 1995-D, 6.05%,
11/15/2000................... 998,948 997,720
----------- -----------
TOTAL ASSET-BACKED
SECURITIES................... 7,328,480 7,329,632
----------- -----------
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 146
P A C I F I C A
GOVERNMENT INCOME FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
CORPORATE BONDS -- 16.97%
AUTOMOTIVE CREDIT
LENDING -- 2.74%
$2,000,000 General Motors Acceptance Corp.
7.75%, 04/15/1997............ $ 2,030,446 $ 2,038,106
----------- -----------
BANKS -- 2.59%
2,000,000 Midland Bank PLC 6.95%,
03/15/2011................... 1,994,460 1,921,050
----------- -----------
CONSUMER SPENDING -- 1.32%
1,000,000 General Motors Corp. 7.40%,
09/01/2025................... 992,089 977,670
----------- -----------
CONSUMER STAPLES -- 2.15%
1,750,000 Rite Aid Corp. 6.875%,
08/15/2013................... 1,660,400 1,598,152
----------- -----------
FINANCIAL SERVICES -- 5.39%
2,000,000 Charles Schwab & Co. 6.25%,
01/23/2003................... 2,000,000 1,909,342
1,100,000 Smith Barney & Co. 6.00%,
03/15/1997................... 1,098,462 1,102,360
1,000,000 US West Capital Funding 6.31%,
11/01/2005................... 1,000,000 992,902
----------- -----------
4,098,462 4,004,604
----------- -----------
MISCELLANEOUS -- 2.78%
2,000,000 Coors (Adolph) Inc. 8.95%,
06/16/1997................... 2,062,023 2,069,444
----------- -----------
TOTAL CORPORATE BONDS.......... 12,837,880 12,609,026
----------- -----------
TOTAL INVESTMENTS.............. 73,313,601 72,674,146
----------- -----------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 147
P A C I F I C A
GOVERNMENT INCOME FUND
Portfolio of Investments (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ----------- -----------
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 9.90%
$7,357,248 Goldman Sachs & Co. dated
03/29/1996, 5.375%, due
04/01/1996 (Proceeds at
maturity $7,360,543)
Collateralized by: $5,748,000
U.S. Treasury Bond 10.75%,
08/15/2005................... $ 7,357,248 $ 7,357,248
----------- -----------
TOTAL INVESTMENTS AND
REPURCHASE
AGREEMENT -- 107.71%......... $80,670,849+ 80,031,394
===========
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (7.71%)............ (5,725,762)
-----------
NET ASSETS -- 100.00%.......... $74,305,632
===========
</TABLE>
* When-issued security.
** Rate shown is rate in effect at March 31, 1996.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
24
<PAGE> 148
P A C I F I C A
Statements of Assets and Liabilities (Unaudited)
March 31, 1996
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE
GOVERNMENT GOVERNMENT INTERMEDIATE
BOND FUND BOND FUND BOND FUND
----------- ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost $33,291,630,
$22,997,542 and $50,847,890,
respectively)..................... $33,334,120 $22,479,637 $50,972,699
Repurchase Agreements, at value
(cost $545,209, $1,668,323 and
$2,422,885, respectively)......... 545,209 1,668,323 2,422,885
Cash................................ -- -- 80
Interest receivable................. 549,389 231,990 813,020
Prepaid expenses.................... 12,576 11,030 2,209
Receivable for Fund shares sold..... 12,228 47,598 51,846
Receivable for securities sold...... -- -- 1,068,693
Other assets........................ 1,824 1,823 2,451
----------- ----------- -----------
Total assets.................... 34,455,346 24,440,401 55,333,883
----------- ----------- -----------
LIABILITIES:
Payable to Custodian................ 51,990 8,056 --
Income dividend payable............. 82,227 59,585 78,049
Payable for Fund shares redeemed.... 10,889 38,878 30,500
Advisory fee payable................ 5,146 5,062 18,015
Administrative services fee
payable........................... 3,923 2,774 5,980
Fund accounting fee payable......... 2,500 2,500 2,500
Custodian fee payable............... 1,892 1,596 3,949
Transfer agent fee payable.......... 1,670 2,644 251
Payable for securities purchased.... -- -- 1,083,439
Other accrued expenses.............. 22,189 4,827 23,790
----------- ----------- -----------
Total liabilities............... 182,426 125,922 1,246,473
----------- ----------- -----------
NET ASSETS............................ $34,272,920 $24,314,479 $54,087,410
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
25
<PAGE> 149
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE
GOVERNMENT GOVERNMENT INTERMEDIATE
BOND FUND BOND FUND BOND FUND
----------- ------------ ------------
<S> <C> <C> <C>
NET ASSETS:
Par value of shares of beneficial
interest outstanding ($.001 per
share); unlimited number of shares
authorized........................ $ 2,234 $ 1,574 $ 3,694
Additional paid-in capital.......... 34,063,454 24,895,732 53,542,436
Accumulated net realized gain (loss)
on investments.................... 164,742 (64,922) 416,471
Net unrealized appreciation
(depreciation) of investments..... 42,490 (517,905) 124,809
----------- ----------- -----------
Net assets applicable to shares
outstanding....................... $34,272,920 $24,314,479 $54,087,410
=========== =========== ===========
NET ASSETS:
Institutional Shares:
Shares of Beneficial Interest 1,406,959 409,395 3,500,718
Outstanding..................... =========== =========== ===========
Net Asset Value, Maximum Offering
Price, and Redemption Price Per $15.35 $15.46 $14.64
Share........................... =========== =========== ===========
Investor Shares:
Shares of Beneficial Interest 826,872 1,164,717 193,017
Outstanding..................... =========== =========== ===========
Net Asset Value and Redemption $15.34 $15.44 $14.64
Price Per Share................. =========== =========== ===========
Maximum offering price per share
($15.34/0.97, $15.44/0.955, and $15.81 $16.17 $15.33
$14.64/0.955, respectively).... =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
26
<PAGE> 150
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
ASSET
PRESERVATION GOVERNMENT
FUND INCOME FUND
------------ -----------
<S> <C> <C>
ASSETS:
Investments in securities, at value (identified
cost $37,245,560 and $73,313,601,
respectively)................................ $37,372,805 $72,674,146
Repurchase Agreements, at value (cost
$3,623,290 and $7,357,248, respectively)..... 3,623,290 7,357,248
Cash........................................... 1,623,595 860,276
Interest receivable............................ 688,221 1,083,431
Prepaid expenses............................... 5,424 5,409
Receivable for Fund shares sold................ 6,573 67,418
Other assets................................... 21,319 6,882
----------- -----------
Total assets............................... 43,341,227 82,054,810
----------- -----------
LIABILITIES:
Income dividend payable........................ 28,263 230,029
Payable for securities purchased............... 1,618,805 7,273,453
Advisory fee payable........................... 11,190 32,015
Administrative services fee payable............ 5,051 9,119
Fund accounting fee payable.................... 2,500 2,500
Custodian fee payable.......................... 1,965 4,016
Payable for Fund shares redeemed............... 1,000 --
Transfer agent fee payable..................... 683 559
Other accrued expenses......................... 145,217 197,487
----------- -----------
Total liabilities.......................... 1,814,674 7,749,178
----------- -----------
NET ASSETS....................................... $41,526,553 $74,305,632
=========== ===========
</TABLE>
See accompanying notes to financial statements.
27
<PAGE> 151
P A C I F I C A
Statements of Assets and Liabilities (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
ASSET
PRESERVATION GOVERNMENT
FUND INCOME FUND
------------ -----------
<S> <C> <C>
NET ASSETS:
Par value of shares of beneficial interest
outstanding ($.001 per share); unlimited number
of shares authorized............................. $ 4,105 $ 7,671
Additional paid-in capital......................... 42,772,588 85,721,436
Accumulated net realized gain (loss) on
investments...................................... (1,377,385) (10,512,035)
Distributions in excess of net investment income... -- (271,985)
Net unrealized appreciation (depreciation) on
investments...................................... 127,245 (639,455)
----------- -----------
Net assets applicable to shares outstanding........ $41,526,553 $74,305,632
=========== ===========
NET ASSETS:
Institutional Shares:
Shares of Beneficial Interest Outstanding........ 2,797,814 6,539,762
=========== ===========
Net Asset Value, Maximum Offering Price, and
Redemption Price Per Share..................... $10.12 $ 9.69
====== ======
Investor Shares:
Shares of Beneficial Interest Outstanding........ 1,307,638 1,130,792
========= =========
Net Asset Value and Redemption Price Per Share... $10.11 $ 9.68
====== ======
Maximum Offering Price Per Share ($10.11 and
$9.68/0.955, respectively)..................... $10.11 $10.14
====== ======
</TABLE>
See accompanying notes to financial statements.
28
<PAGE> 152
P A C I F I C A
Statements of Operations (Unaudited)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
SHORT-TERM INTERMEDIATE
GOVERNMENT GOVERNMENT INTERMEDIATE
BOND FUND BOND FUND BOND FUND
---------- ------------ ----------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
Interest Income:..................... $1,115,764 $ 928,675 $1,809,323
---------- ----------- ----------
Expenses:
Advisory........................... 89,132 65,406 136,871
Administrative services............ 26,801 19,622 41,061
Transfer agent..................... 24,379 36,446 10,176
Reports to shareholders............ 8,614 11,197 15,541
Registration....................... 5,984 1,489 5,573
Shareholder services (Investor
Shares only)..................... 3,180 -- --
Custodian.......................... 3,839 3,505 5,533
Audit.............................. 3,887 5,325 12,338
Trustees........................... 3,528 3,528 3,528
Distribution (Investor Shares
only)............................ 2,778 4,877 2,998
Fund accounting.................... 16,129 16,919 17,958
Legal.............................. 2,655 2,202 4,619
Insurance.......................... 1,235 959 1,164
Miscellaneous...................... 2,111 3,150 4,669
---------- ----------- ----------
Total expenses before waivers.... 194,252 174,625 262,029
Less expenses waived by Advisor/
Administrator.................. (67,930) (51,725) (46,211)
---------- ----------- ----------
Net expenses....................... 126,322 122,900 215,818
---------- ----------- ----------
Net investment income................ 989,442 805,775 1,593,505
---------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on
investment transactions............ 164,742 (64,922) 459,187
Net change in unrealized depreciation
on investments..................... (434,285) (257,474) (781,447)
---------- ----------- ----------
Net realized and unrealized loss on
investments........................ (269,543) (322,396) (322,260)
---------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $ 719,899 $ 483,379 $1,271,245
========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
29
<PAGE> 153
P A C I F I C A
Statements of Operations (Unaudited) (Continued)
For the Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
ASSET
PRESERVATION GOVERNMENT
FUND INCOME FUND
------------ -----------
<S> <C> <C>
NET INVESTMENT INCOME:
Interest Income:................................ $1,331,406 $2,703,493
----------- ----------
Expenses:
Advisory...................................... 78,801 204,433
Administrative services....................... 33,772 61,330
Fund accounting............................... 16,586 19,838
Distribution (Investor Shares only)........... 3,239 3,078
Transfer agent................................ 15,162 16,583
Audit......................................... 10,123 10,095
Legal......................................... 5,627 18,431
Reports to shareholders....................... 7,710 15,960
Registration.................................. 6,587 7,814
Trustees...................................... 4,465 4,465
Custodian..................................... 3,929 8,052
Shareholder services (Investor Shares only)... 861 879
Insurance..................................... 1,621 822
Miscellaneous................................. 1,632 4,705
----------- ----------
Total expenses before waivers............... 190,115 376,485
Less expenses waived by
Advisor/Administrator..................... (13,480) (9,309)
----------- ----------
Net expenses.................................. 176,635 367,176
----------- ----------
Net investment income........................... 1,154,771 2,336,317
----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions.... 56,536 737,987
Net change in unrealized appreciation
(depreciation) on investments................. 119,394 (1,821,878)
----------- ----------
Net realized and unrealized gain (loss) on
investments................................... 175,930 (1,083,891)
----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $1,330,701 $1,252,426
=========== ==========
</TABLE>
See accompanying notes to financial statements.
30
<PAGE> 154
P A C I F I C A
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SHORT-TERM GOVERNMENT BOND FUND
-----------------------------------------
SIX MONTHS PERIOD YEAR
ENDED MARCH ENDED ENDED
31, 1996 SEPTEMBER MAY 31,
(UNAUDITED) 30, 1995* 1995
------------ ----------- ------------
<S> <C> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income............... $ 989,442 $ 732,304 $ 2,468,672
Net realized gain (loss) on
investment transactions........... 164,742 (2,125) (895,915)
Change in unrealized appreciation
(depreciation) on investments..... (434,285) (11,958) 1,452,669
------------ ------------ ------------
Net increase in net assets resulting
from operations................... 719,899 718,221 3,025,426
------------ ------------ ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares.............. (589,872) (690,271) (2,113,599)
Investor Shares................... (399,570) (71,073) (461,760)
------------ ------------ ------------
(989,442) (761,344) (2,575,359)
------------ ------------ ------------
Capital Share Transactions:
Net Proceeds from sale of shares:
Institutional Shares.............. 3,253,703 1,235,539 6,725,880
Investor Shares................... 12,571,920 151,249 4,259,534
------------ ------------ ------------
15,825,623 1,386,788 10,985,414
------------ ------------ ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares............ 159,404 301,246 934,422
Investor Shares................. 313,941 65,393 431,662
------------ ------------ ------------
473,345 366,639 1,366,084
------------ ------------ ------------
Cost of shares redeemed:
Institutional Shares................ (15,614,934) (4,484,047) (17,306,036)
Investor Shares..................... (3,808,814) (1,110,281) (8,302,105)
------------ ------------ ------------
(19,423,748) (5,594,328) (25,608,141)
------------ ------------ ------------
Net decrease in net assets derived
from capital share transactions..... (3,124,780) (3,840,901) (13,256,643)
------------ ------------ ------------
Net Decrease in Net Assets.............. (3,394,323) (3,884,024) (12,806,576)
NET ASSETS:
Beginning of period................... 37,667,243 41,551,267 54,357,843
------------ ------------ ------------
End of period......................... $ 34,272,920 $37,667,243 $ 41,551,267
============ ============ ============
</TABLE>
* From June 1, 1995 through September 30, 1995. The Fund has changed its fiscal
year end from May 31 to September 30.
See accompanying notes to financial statements.
31
<PAGE> 155
P A C I F I C A
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT BOND FUND
-----------------------------------------
SIX MONTHS PERIOD YEAR
ENDED MARCH ENDED ENDED
31, 1996 SEPTEMBER MAY 31,
(UNAUDITED) 30, 1995* 1995
------------ ----------- ------------
<S> <C> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income............... $ 805,775 $ 662,963 $ 2,425,480
Net realized gain (loss) on
investment transactions........... (64,922) 48,599 (817,774)
Change in unrealized appreciation
(depreciation) on investments..... (257,474) (20,258) 1,704,888
------------ ----------- ------------
Net increase in net assets resulting
from operations................... 483,379 691,304 3,312,594
------------ ----------- ------------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares.............. (205,121) (507,946) (1,954,145)
Investor Shares................... (600,654) (170,299) (616,227)
------------ ----------- ------------
(805,775) (678,245) (2,570,372)
------------ ----------- ------------
Capital Share Transactions:
Net proceeds from sale of shares:
Institutional Shares.............. 823,940 254,940 1,211,378
Investor Shares................... 15,621,697 190,907 2,377,619
------------ ----------- ------------
16,445,637 445,847 3,588,997
------------ ----------- ------------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares............ 88,008 275,448 1,122,846
Investor Shares................. 345,545 89,394 318,211
------------ ----------- ------------
433,553 364,842 1,441,057
------------ ----------- ------------
Cost of shares redeemed:
Institutional Shares................ (16,625,048) (2,567,158) (13,038,700)
Investor Shares..................... (4,828,106) (2,279,613) (2,311,529)
------------ ----------- ------------
(21,453,154) (4,846,771) (15,350,229)
------------ ----------- ------------
Net decrease in net assets derived
from capital share transactions..... (4,573,964) (4,036,082) (10,320,175)
------------ ----------- ------------
Net Decrease in Net Assets.............. (4,896,360) (4,023,023) (9,577,953)
NET ASSETS:
Beginning of period................... 29,210,839 33,233,862 42,811,815
------------ ----------- ------------
End of period......................... $ 24,314,479 $29,210,839 $ 33,233,862
============ =========== ============
</TABLE>
* From June 1, 1995 through September 30, 1995. The Fund has changed its fiscal
year end from May 31 to September 30.
See accompanying notes to financial statements.
32
<PAGE> 156
P A C I F I C A
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
---------------------------------------
SIX MONTHS PERIOD YEAR
ENDED MARCH ENDED ENDED
31, 1996 SEPTEMBER MAY 31,
(UNAUDITED) 30, 1995* 1995
----------- ----------- -----------
<S> <C> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income................. $ 1,593,505 $ 1,127,598 $ 3,508,106
Net realized gain (loss) on investment
transactions........................ 459,187 364,287 (1,412,557)
Change in unrealized appreciation
(depreciation) on investments....... (781,447) (382,517) 3,149,425
------------ ----------- -----------
Net increase in net assets resulting
from operations..................... 1,271,245 1,109,368 5,244,974
------------ ----------- -----------
Distributions to Shareholders from Net
Investment Income:
Institutional Shares................ (1,275,915) (1,155,210) (3,758,946)
Investor Shares..................... (317,590) -- --
------------ ----------- -----------
(1,593,505) (1,155,210) (3,758,946)
------------ ----------- -----------
Distributions to Shareholders from
Realized Capital Gains:
Institutional Shares................ (40,503) -- --
Investor Shares..................... (2,213) -- --
------------ ----------- -----------
(42,716) -- --
------------ ----------- -----------
Capital Share Transactions:
Net proceeds from sale of shares:
Institutional Shares................ 4,318,174 6,805,043 14,208,619
Investor Shares..................... 55,232,430 -- --
------------ ----------- -----------
59,550,604 6,805,043 14,208,619
------------ ----------- -----------
Net asset value of shares issued to
shareholders in reinvestment of
distributions:
Institutional Shares.............. 895,501 795,638 2,638,770
Investor Shares................... 202,045 -- --
------------ ----------- -----------
1,097,546 795,638 2,638,770
------------ ----------- -----------
Cost of shares redeemed:
Institutional Shares.................. (7,986,131) (8,013,618) (20,445,306)
Investor Shares....................... (53,838,104) -- --
------------ ----------- -----------
(61,824,235) (8,013,618) (20,445,306)
------------ ----------- -----------
Net decrease in net assets derived from
capital share transactions............ (1,176,085) (412,937) (3,597,917)
------------ ----------- -----------
Net Decrease in Net Assets................ (1,541,061) (458,779) (2,111,889)
NET ASSETS:
Beginning of period..................... 55,628,471 56,087,250 58,199,139
------------ ----------- -----------
End of period........................... $54,087,410 $55,628,471 $56,087,250
============ =========== ===========
</TABLE>
* From June 1, 1995 through September 30, 1995. The Fund has changed its fiscal
year end from May 31 to September 30.
See accompanying notes to financial statements.
33
<PAGE> 157
P A C I F I C A
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
ASSET PRESERVATION FUND
---------------------------
SIX MONTHS YEAR
ENDED MARCH ENDED
31, 1996 SEPTEMBER
(UNAUDITED) 30, 1995
------------ ------------
<S> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income........................... $ 1,154,771 $ 3,604,165
Net realized gain (loss) on investment
transactions.................................. 56,536 (838,752)
Change in unrealized appreciation on
investments................................... 119,394 917,169
------------ ------------
Net increase in net assets resulting from
operations.................................... 1,330,701 3,682,582
------------ ------------
Distributions to Shareholders from Net Investment
Income:
Institutional Shares.......................... (775,656) --
Investor Shares............................... (379,115) (3,553,023)
------------ ------------
(1,154,771) (3,553,023)
------------ ------------
Distributions to Shareholders from
Paid-in-Capital:
Institutional Shares............................ -- --
Investor Shares................................. -- (51,142)
------------ ------------
-- (51,142)
------------ ------------
Capital Share Transactions:
Net proceeds from sale of shares:
Institutional Shares.......................... 40,392,377 --
Investor Shares............................... 3,384,163 14,552,138
------------ ------------
43,776,540 14,552,138
------------ ------------
Net asset value of shares issued to shareholders
in reinvestment of distributions:
Institutional Shares........................ 685,280 --
Investor Shares............................. 340,770 2,996,842
------------ ------------
1,026,050 2,996,842
------------ ------------
Cost of shares redeemed:
Institutional Shares............................ (12,880,395) --
Investor Shares................................. (42,178,790) (69,198,805)
------------ ------------
(55,059,185) (69,198,805)
------------ ------------
Net decrease in net assets derived from capital
share transactions.............................. (10,256,595) (51,649,825)
------------ ------------
Net Decrease in Net Assets.......................... (10,080,665) (51,571,408)
NET ASSETS:
Beginning of period............................... 51,607,218 103,178,626
------------ ------------
End of period..................................... $ 41,526,553 $ 51,607,218
============ ============
</TABLE>
See accompanying notes to financial statements.
34
<PAGE> 158
P A C I F I C A
Statement of Changes in Net Assets (Continued)
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND
---------------------------
SIX MONTHS YEAR
ENDED MARCH ENDED
31, 1996 SEPTEMBER
(UNAUDITED) 30, 1995
------------ ------------
<S> <C> <C>
DECREASE IN NET ASSETS:
Operations:
Net investment income........................... $ 2,336,317 $ 5,922,495
Net realized gain (loss) on investment
transactions.................................. 737,987 (6,984,147)
Change in unrealized appreciation (depreciation)
on investments................................ (1,821,878) 9,796,631
------------ ------------
Net increase in net assets resulting from
operations.................................... 1,252,426 8,734,979
------------ ------------
Distributions to Shareholders from Net Investment
Income:
Institutional Shares.......................... (1,884,242) --
Investor Shares............................... (452,075) (5,360,219)
------------ ------------
(2,336,317) (5,360,219)
------------ ------------
Distributions to Shareholders from
Paid-in-Capital:
Institutional Shares............................ -- --
Investor Shares................................. -- (562,276)
------------ ------------
-- (562,276)
------------ ------------
Capital Share Transactions:
Net Proceeds from sale of shares:
Institutional Shares.......................... 75,656,535 --
Investor Shares............................... 394,394 14,725,909
------------ ------------
76,050,929 14,725,909
------------ ------------
Net asset value of shares issued to shareholders
in reinvestment of distributions:
Institutional Shares........................ 622,583 --
Investor Shares............................. 263,804 2,401,402
------------ ------------
886,387 2,401,402
------------ ------------
Cost of shares redeemed:
Institutional Shares............................ (11,753,168) --
Investor Shares................................. (74,775,700) (59,330,735)
------------ ------------
(86,528,868) (59,330,735)
------------ ------------
Net decrease in net assets derived from capital
share transactions.............................. (9,591,552) (42,203,424)
------------ ------------
Net Decrease in Net Assets.......................... (10,675,443) (39,390,940)
NET ASSETS:
Beginning of period............................... 84,981,075 124,372,015
------------ ------------
End of period..................................... $ 74,305,632 $ 84,981,075
============ ============
</TABLE>
See accompanying notes to financial statements.
35
<PAGE> 159
P A C I F I C A
Notes to Financial Statements (Unaudited)
March 31, 1996
1. DESCRIPTION AND ORGANIZATION -- The Short-Term Government Bond Fund,
Intermediate Government Bond Fund, Intermediate Bond Fund, Asset Preservation
Fund and Government Income Fund, (together, the "Funds") are separately managed
portfolios which comprise part of Pacifica Funds Trust (the "Trust"), an
open-end management investment company registered under the Investment Company
Act of 1940, consisting of eighteen portfolios at March 31, 1996. The Trust was
organized as a Massachusetts business trust on July 17, 1984. Effective October
1, 1995, the Pacifica Short-Term Government Bond acquired all of the assets and
liabilities of the Westcore Short-Term Government Bond Fund; Pacifica
Intermediate Government Bond Fund acquired all of the assets and liabilities of
the Westcore GNMA Fund; and the Pacifica Intermediate Bond Fund acquired all of
the assets and liabilities of the Westcore Bonds Plus Fund. These acquisitions
were accomplished in separate tax-free exchanges for shares of the respective
Fund.
On August 7, 1995, the Board of Trustees approved the issuance of a second
class of shares for Pacifica Funds Trust. The two classes are known as
Institutional Shares and Investor Shares. Each share of a Fund represents an
equal proportionate interest in that Fund with other shares of the same class
and is entitled to the same voting rights, and to such dividends and
distributions earn on such shares as are declared in the discretion of the Board
of Trustees. Investor Shares of the Intermediate Government Bond Fund,
Intermediate Bond Fund and Government Income Fund are purchased at net asset
value plus a maximum 4.50% sales charge. Investor Shares of the Short-Term
Government Bond Fund are purchased at net asset value plus a maximum 3.00% sales
charge. There is no sales charge on the purchase of Investor Shares of the Asset
Preservation Fund.
In addition, Investor Shares bear a Distribution expense (not borne by
Institutional Shares) not to exceed the annual rate of 0.50% of the average
daily net assets.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements:
A. SECURITY VALUATION -- The Funds value investments at the last
sales price on the securities exchange on which such securities are
36
<PAGE> 160
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
primarily traded. Over-the-counter securities or exchange traded securities
for which there are no transactions, are valued at the current bid price.
Bonds and other fixed-income securities may be valued on the basis of
prices provided by a pricing service approved by the Board of Trustees. In
the absence of market quotations, investments are valued at fair value as
determined in good faith by, or at the direction of, the Trustees.
Short-term securities which mature in 60 days or less are valued at
amortized cost, if their term to maturity at purchase was 60 days or less,
or by amortizing their value on the 61st day prior to maturity, if their
original term to maturity at purchase exceeded 60 days.
B. FEDERAL INCOME TAXES -- It is the Funds' policy to comply with the
requirements of Subchapter M of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of their
"investment company taxable income," as defined in the Code, and net
capital gains, if any, to their shareholders. Therefore, no Federal income
tax provision is required. In addition, by distributing during each
calendar year substantially all of their net investment income, capital
gains and certain other amounts, if any, each Fund intends not to be
subject to a Federal excise tax.
C. DIVIDENDS TO SHAREHOLDERS -- The Funds declare dividends from
taxable net investment income on each business day and pay such dividends
within five business days after the end of each month. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with Federal income tax
regulations which may differ from net investment income and net realized
capital gains as determined by generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their Federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gain for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
dividends and distributions exceed net investment income and net realized
capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
37
<PAGE> 161
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
D. INVESTMENT TRANSACTIONS -- Investment transactions are recorded on
the trade date. Identified cost of investments sold is used to calculate
realized gains and losses for both financial statement and Federal income
tax purposes. Interest income, including the amortization of discount or
premium, is recorded as earned.
E. DETERMINATION OF NET ASSET VALUE AND ALLOCATION OF
EXPENSES -- Expenses directly attributable to a Fund are charged to that
Fund; other expenses are allocated proportionately among each Fund within
the Trust in relation to the net assets of each Fund or on another
reasonable basis. In calculating net asset value per share of each class,
investment income and expenses, other than class-specific expenses, are
allocated daily to each class of shares based upon the proportion of net
assets of each class at the beginning of each day. Class specific expenses
are currently limited to expenses incurred under the Non-12b-1 Shareholder
Services Plan for each class and expenses incurred by the Investor Shares
under the Amended and Restated Master Distribution Plan for Investor
Shares.
3. INVESTMENT ADVISOR, ADMINISTRATOR AND TRANSACTIONS WITH
AFFILIATES -- For the six-month period ended March 31, 1996, First Interstate
Capital Management ("FICM") served as investment advisor to the Funds. FICM
managed the investment and reinvestment of the assets of the Funds and
continually reviewed, supervised and administered the Funds' investments. FICM
was responsible for placing orders for the purchase and sale of the Funds'
investments directly with brokers or dealers selected by it in its discretion
and for furnishing to the Board of Trustees, which has overall responsibility
for the business affairs of the Trust, periodic reports on the performance of
the Funds.
As compensation for investment advisory services, FICM is entitled to
receive from the respective Funds a fee at the annual percentage rate of average
daily net assets as indicated below:
<TABLE>
<S> <C>
Short-Term Government Bond Fund......................... 0.50%
Intermediate Government Bond Fund....................... 0.50%
Intermediate Bond Fund.................................. 0.50%
Asset Preservation Fund................................. 0.35%
Government Income Fund.................................. 0.50%
</TABLE>
38
<PAGE> 162
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
For the six months ended March 31, 1996, FICM was entitled to and waived
advisory fees as indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Short-Term Government Bond Fund............ $ 89,132 $63,672
Intermediate Government Bond Fund.......... 65,406 48,643
Intermediate Bond Fund..................... 136,871 39,513
Asset Preservation Fund.................... 78,801 8,516
Government Income Fund..................... 204,433 --
</TABLE>
In addition, First Interstate Bank of California ("FICAL"), an affiliate of
FICM, serves as Custodian for the Funds. FICAL received a custodian fee based
upon net assets and certain transaction charges. For the six months ended March
31, 1996, FICAL earned custodian fees from the Funds as indicated below:
<TABLE>
<S> <C>
Short-Term Government Bond Fund....................... $3,839
Intermediate Government Bond Fund..................... 3,505
Intermediate Bond Fund................................ 5,533
Asset Preservation Fund............................... 3,929
Government Income Fund................................ 8,052
</TABLE>
Furman Selz LLC, formerly known as Furman Selz, Inc. ("Furman Selz")
provides administrative services for the operation of the Funds, furnishes
office space and facilities required for conducting the business of the Funds
and pays the compensation of the Trust's officers and trustees affiliated with
Furman Selz. As compensation for their administrative services, each Fund pays
Furman Selz an annual fee payable monthly equal to 0.15% of the Fund's average
daily net assets.
For the period October 1, 1995 through November 15, 1995 ALPS Mutual Fund
Services, Inc. ("ALPS") served as the administrator for the Intermediate
Government Bond Fund. ALPS was entitled to and received administrative services
fee from the Fund at an annual rate of 0.05% of the average net assets which
amount to $1,765 for the period.
For the six months ended March 31, 1996, Furman Selz was entitled to and
waived administrative services fees as indicated below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- ------
<S> <C> <C>
Short-Term Government Bond Fund............. $ 26,801 $4,258
Intermediate Government Bond Fund........... 19,622 3,082
Intermediate Bond Fund...................... 39,296 6,698
Asset Preservation Fund..................... 33,772 4,964
Government Income Fund...................... 61,330 9,309
</TABLE>
39
<PAGE> 163
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
The Funds have adopted a non-compensatory Distribution Plan and Agreement
(the "Plan") for the Investor Shares pursuant to Rule 12b-1 of the Investment
Company Act of 1940, as amended. The Plan provides for payment by each Fund for
actual expenses incurred. Such payments shall not exceed 0.50% of average
Investor Shares net assets. Currently, only the Investor Shares are accruing a
distribution expense. Pacifica Funds Distributor Inc., an affiliate of Furman
Selz, acts as Distributor for the Trust.
The Funds also retain Furman Selz to provide personnel and facilities to
perform shareholders servicing, transfer agency related services and fund
accounting. For the six months ended March 31, 1996, Furman Selz earned the
following transfer agent and fund accounting fees from the Funds:
<TABLE>
<S> <C>
Short-Term Government Bond Fund...................... $25,394
Intermediate Government Bond Fund.................... 31,366
Intermediate Bond Fund............................... 16,600
Asset Preservation Fund.............................. 19,415
Government Income Fund............................... 18,521
</TABLE>
The Trust may contract with banks, trust companies, brokers-dealers, or
other financial organizations ("Service Organizations") to provide certain
administrative services for the Funds. For these services, the Funds may pay
fees to Service Organizations at an annual rate of up to 0.25% of the average
daily net assets of the Investor Shares owned by shareholders with whom the
Service Organization has a servicing relationship.
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of the Funds. If, in any fiscal year,
the total expenses of a Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses, but including the advisory and
administrative services fees) exceed the expense limitations applicable to that
Fund imposed by the securities regulations of any state, FICM and Furman Selz
will pay or reimburse the Fund to the extent of advisory and administrative
fees. For the six months ended March 31, 1996, the Funds did not exceed such
limitation.
40
<PAGE> 164
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
4. REPURCHASE AGREEMENTS -- The Funds may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve Board, with
member banks of the Federal Reserve System or with other brokers or dealers that
meet the credit guidelines established by the Trustees. It is the policy of the
Funds to receive and maintain securities as collateral whose market value,
including accrued interest, will be at least 100% of the dollar amount invested
by that Fund in each agreement, and that Fund will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults,
and the value of the collateral declines, or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
5. SECURITY TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the six months ended
March 31, 1996, were as follows:
<TABLE>
<CAPTION>
CORPORATE NOTES
AND BONDS U.S. GOVERNMENT OBLIGATIONS
------------------------ ----------------------------
PROCEEDS PROCEEDS
COST OF FROM COST OF FROM
SECURITIES SECURITIES SECURITIES SECURITIES
PURCHASED SOLD PURCHASED SOLD
---------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Short-Term Government
Bond Fund............... $1,010,156 -- $13,947,816 $ 17,304,002
Intermediate Government
Bond fund............... -- -- 5,436,516 9,059,344
Intermediate Bond Fund... 9,724,998 $ 3,451,673 5,606,006 12,193,547
Asset Preservation
Fund.................... 1,996,856 10,000,000 2,796,930 5,143,750
Government Income Fund... 9,989,144 9,859,620 22,858,673 31,620,283
</TABLE>
Unrealized appreciation/depreciation at March 31, 1996, based on cost of
securities for Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Short-Term Government
Bond Fund....................... $ 312,647 $ 270,157 $ 42,490
Intermediate Government
Bond Fund....................... 164,264 682,169 (517,905)
Intermediate Bond Fund............ 551,706 426,897 124,809
Asset Preservation Fund........... 185,790 58,545 127,245
Government Income Fund............ 605,190 1,244,645 (639,455)
</TABLE>
41
<PAGE> 165
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
6. CAPITAL SHARE TRANSACTIONS -- Transactions in shares of beneficial
interest for the period ended September 30, 1995 and the six months ended March
31, 1996, were as follows:
<TABLE>
<CAPTION>
SHORT-TERM GOVERNMENT BOND FUND
---------------------------------------------------------
SIX MONTHS ENDED MARCH PERIOD ENDED SEPTEMBER 30,
31, 1996 1995*
------------------------- ----------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES SHARES(a)
------------- -------- ------------- -----------
<S> <C> <C> <C> <C>
Shares sold............. 204,987 818,126 79,601 9,743
Shares issued in
reinvestment of
distributions......... 10,292 20,272 19,478 4,231
------------- -------- ------------- -----------
215,279 838,398 99,079 13,974
Shares redeemed......... (1,009,038) (245,779) (288,573) (71,314)
------------- -------- ------------- -----------
Net increase (decrease)
in shares............. (793,759) 592,619 (189,494) (57,340)
Beginning of period..... 2,200,718 234,253 2,390,212 291,593
------------- -------- ------------- -----------
End of period........... 1,406,959 826,872 2,200,718 234,253
============= ======== ============= ===========
</TABLE>
* For the period June 1, 1995 through September 30, 1995.
(a) Previously the Westcore Retail Class Shares.
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT BOND FUND
----------------------------------------------------------
SIX MONTHS ENDED MARCH 31, PERIOD ENDED SEPTEMBER 30,
1996 1995*
-------------------------- ----------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES SHARES(a)
------------- --------- ------------- -----------
<S> <C> <C> <C> <C>
Shares sold............. 57,891 991,184 16,244 12,170
Shares issued in
reinvestment of
distributions......... 5,571 21,918 17,618 5,725
------------- --------- ------------- -----------
63,462 1,013,102 33,862 17,895
Shares redeemed......... (1,058,925) (305,876) (163,302) (145,038)
------------- --------- ------------- -----------
Net increase (decrease)
in shares............. (995,463) 707,226 (129,440) (127,143)
Beginning of period..... 1,404,858 457,491 1,534,298 584,634
------------- --------- ------------- -----------
End of period........... 409,395 1,164,717 1,404,858 457,491
============= ========= ============= ===========
</TABLE>
* For the period June 1, 1995 through September 30, 1995.
(a) Previously the Westcore Retail Class Shares.
42
<PAGE> 166
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
------------------------------------------------------------
SIX MONTHS ENDED MARCH 31, PERIOD ENDED SEPTEMBER 30,
1996 1995*
--------------------------- -----------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES(a) SHARES
------------- ---------- ---------------- ---------
<S> <C> <C> <C> <C>
Shares sold........... 3,979,836 34,228 459,831 --
Shares issued in
reinvestment of
distributions....... 60,175 13,606 54,095 --
------------- ---------- ---------------- ---------
4,040,011 47,834 513,926 --
Shares redeemed....... (539,293) (3,624,892) (541,307) --
------------- ---------- ---------------- ---------
Net increase
(decrease) in
shares.............. 3,500,718 (3,577,058) (27,381) --
Beginning of period... 0 3,770,075 3,797,456 --
------------- ---------- ---------------- ---------
End of period......... 3,500,718 193,017 3,770,075 --
============= ========== ================ =========
</TABLE>
<TABLE>
<CAPTION>
ASSET PRESERVATION FUND
----------------------------------------------------------
SIX MONTHS ENDED MARCH 31, YEAR ENDED SEPTEMBER 30,
1996 1995
--------------------------- ---------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES SHARES
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold........... 4,003,375 334,350 -- 1,453,118
Shares issued in
reinvestment of
distributions....... 67,718 33,689 -- 298,957
------------- ---------- ------------- ----------
4,071,093 368,039 -- 1,752,075
Shares redeemed....... (1,273,279) (4,180,205) -- (6,914,010)
------------- ---------- ------------- ----------
Net increase
(decrease) in
shares.............. 2,797,814 (3,812,166) -- (5,161,935)
Beginning of period... 0 5,119,804 -- 10,281,739
------------- ---------- ------------- ----------
End of period......... 2,797,814 1,307,638 -- 5,119,804
============= ========== ============= ==========
</TABLE>
* For the period June 1, 1995 through September 30, 1995.
(a) As of October 1, 1995, became Pacifica Investor Shares.
43
<PAGE> 167
P A C I F I C A
Notes to Financial Statements (Unaudited) (Continued)
March 31, 1996
<TABLE>
<CAPTION>
GOVERNMENT INCOME FUND
----------------------------------------------------------
SIX MONTHS ENDED MARCH 31, YEAR ENDED SEPTEMBER 30,
1996 1995
--------------------------- ---------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
SHARES SHARES SHARES SHARES
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Shares sold........... 7,666,996 39,836 -- 1,558,299
Shares issued in
reinvestment of
distributions....... 62,837 26,630 -- 251,419
------------- ---------- ------------- ----------
7,729,833 66,466 -- 1,809,718
Shares redeemed....... (1,190,071) (7,578,455) -- (6,240,968)
------------- ---------- ------------- ----------
Net increase
(decrease) in
shares.............. 6,539,762 (7,511,989) -- (4,431,250)
Beginning of period... 0 8,642,781 -- 13,074,031
------------- ---------- ------------- ----------
End of period......... 6,539,762 1,130,792 -- 8,642,781
============= ========== ============= ==========
</TABLE>
7. SUBSEQUENT EVENTS -- On April 1, 1996, First Interstate Bancorp was
merged with and into Wells Fargo & Company ("Wells Fargo") and FICM and FICAL,
became an indirect wholly-owned subsidiary of Wells Fargo. In connection with
this merger, FICM has changed its name to Wells Fargo Investment Management,
Inc. ("WFIM").
On May 17, 1996, the Trust's Board of Trustees unanimously approved a
proposed agreement and plan of reorganization between the Trust and Stagecoach
Funds, Inc. ("Stagecoach"), a family of mutual funds advised by affiliates of
Wells Fargo. The agreement will involve the conveyance of the assets and
liabilities of the Funds to corresponding portfolios of Stagecoach. Consummation
of the reorganization is subject to (i) approval by the shareholders of the
Funds at a meeting expected to be held on or about July 16, 1996, and (ii) the
satisfaction of normal closing conditions.
44
<PAGE> 168
P A C I F I C A
SHORT-TERM GOVERNMENT BOND FUND(1)
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, 1996 SEPTEMBER 30,
(UNAUDITED) 1995(a)
------------------------- -------------
INSTITUTIONAL INVESTOR INSTITUTIONAL
SHARES SHARES SHARES
------------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................................ $ 15.47 $ 15.46 $ 15.49
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*..................................................... 0.43 0.43 0.29
Net gain (loss) on securities (both realized and unrealized)*.............. (0.12) (0.12) --
------- ------- -------
Total from Investment Operations......................................... 0.31 0.31 0.29
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income....................................... (0.43) (0.43) (0.31)
Distributions from net realized gain on investments........................ -- -- --
------- ------- -------
Total Distributions...................................................... (0.43) (0.43) (0.31)
------- ------- -------
Net Asset Value, End of Period............................................. $ 15.35 $ 15.34 $ 15.47
======= ======= =======
Total Return (not reflecting sales load)................................. 2.03% 1.98% 5.66%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)................................... $21,592 $12,681 $34,046
Ratios of Expenses to Average Net Assets................................... 0.68%(b) 0.76%(b) 0.65%(b)
Effect of Waivers on above Expense Ratios.................................. 0.06%(b) 0.06%(b) 0.51%(b)
Ratios of Net Investment Income to Average
Net Assets............................................................... 5.59%(b) 5.51%(b) 5.57%(b)
Portfolio Turnover Rate.................................................... 45% 45% 20%
<CAPTION>
PERIOD ENDED
SEPTEMBER 30, YEAR ENDED
1995(a) MAY 31, 1995
------------- ------------------------
RETAIL INSTITUTIONAL RETAIL
SHARES SHARES SHARES
------------- ------------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.................................... $15.49 $ 15.32 $15.31
------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*................................................. 0.29 0.78 0.75
Net gain (loss) on securities (both realized and unrealized)*.......... (0.02) 0.20 0.22
------ ------- ------
Total from Investment Operations..................................... 0.27 0.98 0.97
------ ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income................................... (0.30) (0.81) (0.79)
Distributions from net realized gain on investments.................... -- -- --
------ ------- ------
Total Distributions.................................................. (0.30) (0.81) (0.79)
------ ------- ------
Net Asset Value, End of Period......................................... $15.46 $ 15.49 $15.49
====== ======= ======
Total Return (not reflecting sales load)............................. 5.38%(b) 6.61% 6.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)............................... $3,622 $37,036 $4,515
Ratios of Expenses to Average Net Assets............................... 0.74%(b) 0.65% 0.74%
Effect of Waivers on above Expense Ratios.............................. 0.51%(b) 0.30% 0.51%
Ratios of Net Investment Income to Average
Net Assets........................................................... 5.48%(b) 4.98% 4.84%
Portfolio Turnover Rate................................................ 20% 100% 100%
</TABLE>
(1) The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
* Per Share data based upon average monthly shares outstanding.
(a) For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30 .
(b) Annualized.
45
<PAGE> 169
P A C I F I C A
SHORT-TERM GOVERNMENT BOND FUND
Financial Highlights (Continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
YEARS ENDED
PERIOD ENDED MAY 31,
MAY 31, 1994 -------------
------------------------- 1993
INSTITUTIONAL RETAIL INSTITUTIONAL
SHARES SHARES(a) SHARES
------------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.............................................. $ 15.80 $15.90 $ 15.78
------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*........................................................... 0.58 0.37 0.82
Net gain (loss) on securities (both realized and unrealized)*.................... (0.32) (0.43) 0.07
------- ------ -------
Total from Investment Operations............................................... 0.26 (0.06) 0.89
------- ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income............................................. (0.58) (0.37) (0.74)
Distributions from net realized gain on investments.............................. (0.16) (0.16) (0.13)
------- ------ -------
Total Distributions............................................................ (0.74) (0.53) (0.87)
------- ------ -------
Net Asset Value, End of Period................................................... $ 15.32 $15.31 $ 15.80
======= ====== =======
Total Return (not reflecting sales load)....................................... 1.60% 0.66%(b) 5.79%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)......................................... $46,277 $8,081 $51,232
Ratios of Expenses to Average Net Assets......................................... 0.63% 0.72%(b) 0.62%
Effect of Waivers on above Expense Ratios........................................ 0.34% 0.38%(b) 0.23%
Ratios of Net Investment Income to Average
Net Assets..................................................................... 3.73% 3.45%(b) 4.62%
Portfolio Turnover Rate.......................................................... 127% 127% 164%
<CAPTION>
YEARS ENDED MAY 31,
------------------------------
1992 1991
INSTITUTIONAL INSTITUTIONAL
SHARES SHARES
------------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period.............................................. $ 15.49 $ 15.02
------- -------
Net investment income*........................................................... 1.01 1.10
Net gain (loss) on securities (both realized and unrealized)*.................... 0.39 0.50
------- -------
Total from Investment Operations............................................... 1.40 1.60
------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income............................................. (1.10) (1.10)
Distributions from net realized gain on investments.............................. (0.01) (0.03)
------- -------
Total Distributions............................................................ (1.11) (1.13)
------- -------
Net Asset Value, End of Period................................................... $ 15.78 $ 15.49
======= =======
Total Return (not reflecting sales load)....................................... 9.33% 11.04%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)......................................... $30,305 $18,006
Ratios of Expenses to Average Net Assets......................................... 0.62% 0.57%
Effect of Waivers on above Expense Ratios........................................ 0.30% 0.34%
Ratios of Net Investment Income to Average
Net Assets..................................................................... 6.22% 7.28%
Portfolio Turnover Rate.......................................................... 100% 96%
</TABLE>
* Per share data based upon average monthly shares outstanding.
(a) Retail Shares commenced operations on October 11, 1993.
(b) Annualized.
46
<PAGE> 170
P A C I F I C A
INTERMEDIATE BOND FUND(1)
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1996 PERIOD ENDED YEARS ENDED MAY 31,
(UNAUDITED) SEPTEMBER 30, 1995(a) ------------------------------
-------------------------- ----------------------- 1995 1994
INSTITUTIONAL INVESTOR INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
SHARES SHARES SHARES SHARES SHARES
------------- -------- ----------------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 14.76 $14.76 $ 14.77 $ 14.36 $ 15.72
------- ------ ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*................. 0.43 0.43 0.30 0.91 0.99
Net gain (loss) on securities (both
realized and unrealized)*............ (0.12) 1.11 (0.01) 0.47 (0.90)
------- ------ ------- ------- -------
Total from Investment Operations..... 0.31 1.54 0.29 1.38 0.09
------- ------ ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income... (0.43) (0.43) (0.30) (0.97) (0.85)
Distributions from net realized gain on
investments.......................... -- (1.23) -- -- (0.60)
------- ------ ------- ------- -------
Total Distributions.................. (0.43) (1.66) (0.30) (0.97) (1.45)
------- ------ ------- ------- -------
Net Asset Value, End of Period......... $ 14.64 $14.64 $ 14.76 $ 14.77 $ 14.36
======= ====== ======= ======= =======
Total Return (not reflecting sales
load)............................... 2.20% 2.17% 6.14%(b) 10.13% 0.35%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands)........................... $51,262 $2,825 $55,628 $56,087 $58,199
Ratios of Expenses to Average Net
Assets............................... 0.78%(b) 0.83%(b) 0.89%(b) 0.81% 0.79%
Effect of Waivers on above Ratios...... 0.17%(b) 0.17%(b) 0.05%(b) 0.04% 0.03%
Ratios of Net Investment Income to
Average Net Assets................... 5.82%(b) 5.79%(b) 5.94%(b) 6.35% 5.33%
Portfolio Turnover Rate................ 18% 18% 54% 76% 163%
<CAPTION>
YEARS ENDED MAY 31,
-----------------------------------------------
1993 1992 1991
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
SHARES SHARES SHARES
------------- ------------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 15.69 $ 15.52 $ 15.08
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*................. 1.17 1.14 1.25
Net gain (loss) on securities (both
realized and unrealized)*............ 0.40 0.65 0.54
------- ------- -------
Total from Investment Operations..... 1.57 1.79 1.79
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income... (1.04) (1.41) (1.25)
Distributions from net realized gain on
investments.......................... (0.50) (0.21) (0.10)
------- ------- -------
Total Distributions.................. (1.54) (1.62) (1.35)
------- ------- -------
Net Asset Value, End of Period......... $ 15.72 $ 15.69 $ 15.52
======= ======= =======
Total Return (not reflecting sales
load)............................... 10.42% 11.96% 12.36%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in
thousands)........................... $61,207 $54,203 $54,074
Ratios of Expenses to Average Net
Assets............................... 0.76% 0.68% 0.66%
Effect of Waivers on above Ratios...... 0.03% 0.05% 0.05%
Ratios of Net Investment Income to
Average Net Assets................... 6.01% 7.14% 8.00%
Portfolio Turnover Rate................ 146% 102% 78%
</TABLE>
(1) The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
* Per share data based on average monthly shares outstanding.
(a) For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
(b) Annualized.
47
<PAGE> 171
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND(1)
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, 1996 SEPTEMBER 30,
(UNAUDITED) 1995(a)
------------------------- -------------
INSTITUTIONAL INVESTOR INSTITUTIONAL
SHARES SHARES SHARES
------------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.......................................... $ 15.69 $ 15.67 $ 15.69
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*....................................................... 0.50 0.52 0.34
Net gain (loss) on securities (both realized and unrealized)*................ (0.23) (0.23) 0.01
------- ------- -------
Total from Investment Operations........................................... 0.27 0.29 0.35
------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income......................................... (0.50) (0.52) (0.35)
Distributions from net realized gain on investments.......................... -- -- --
------- ------- -------
Total Distributions........................................................ (0.50) (0.52) (0.35)
------- ------- -------
Net Asset Value, End of Period............................................... $ 15.46 $ 15.44 $ 15.69
======= ======= =======
Total Return (not reflecting sales load)................................... 1.63% 1.60% 6.88%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)..................................... $ 6,330 $17,984 $22,042
Ratios of Expenses to Average Net Assets..................................... 0.90%(b) 0.95%(b) 1.18%(b)
Effect of Waivers on above Expense Ratios.................................... 0.40%(b) 0.40%(b) 0.23%(b)
Ratios of Net Investment Income to Average
Net Assets................................................................. 6.16%(b) 6.11%(b) 6.33%(b)
Portfolio Turnover Rate...................................................... 21% 21% 0%
<CAPTION>
PERIOD ENDED
SEPTEMBER 30, YEAR ENDED
1995(a) MAY 31, 1995
------------- ----------------------
RETAIL INSTITUTIONAL RETAIL
SHARES SHARES SHARES
------------- ------------- ------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.......................................... $15.67 $ 15.29 $15.28
------ ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*....................................................... 0.31 1.04 0.99
Net gain (loss) on securities (both realized and unrealized)*................ 0.03 0.45 0.46
------ ------- ------
Total from Investment Operations........................................... 0.34 1.49 1.45
------ ------- ------
LESS DISTRIBUTIONS:
Dividends from net investment income......................................... (0.34) (1.09) (1.06)
Distributions from net realized gain on investments.......................... -- -- --
------ ------- ------
Total Distributions........................................................ (0.34) (1.09) (1.06)
------ ------- ------
Net Asset Value, End of Period............................................... $15.67 $ 15.69 $15.67
====== ======= ======
Total Return (not reflecting sales load)................................... 6.65%(b) 10.33% 10.01%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)..................................... $7,169 $24,072 $9,162
Ratios of Expenses to Average Net Assets..................................... 1.40%(b) 1.02% 1.27%
Effect of Waivers on above Expense Ratios.................................... 0.23%(b) 0.23% 0.23%
Ratios of Net Investment Income to Average
Net Assets................................................................. 6.10%(b) 6.77% 6.53%
Portfolio Turnover Rate...................................................... 0% 11% 11%
</TABLE>
(1) The Fund operated as a series of Westcore Trust from its commencement of
operations until it was reorganized as a series of Pacifica Funds Trust on
October 1, 1995.
* Per share data based upon average monthly shares outstanding.
(a) For the period June 1, 1995 to September 30, 1995. On October 1, 1995, the
Fund changed its fiscal year end from May 31 to September 30.
(b) Annualized.
48
<PAGE> 172
P A C I F I C A
INTERMEDIATE GOVERNMENT BOND FUND
Financial Highlights (Continued)
For a share outstanding throughout each period
<TABLE>
<CAPTION>
YEARS ENDED
PERIOD ENDED MAY 31,
MAY 31, 1994 -------------
------------------------- 1993
INSTITUTIONAL RETAIL INSTITUTIONAL
SHARES SHARES(a) SHARES
------------- -------- -------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............................................... $ 16.39 $16.47 $ 16.18
------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*............................................................ 0.95 0.74 1.14
Net gain (loss) on securities (both realized and unrealized)*..................... (1.05) (1.27) 0.20
------- ------ -------
Total from Investment Operations................................................ (0.10) (0.53) 1.34
------- ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income.............................................. (0.98) (0.64) (1.08)
Distributions from net realized gain on investments............................... (0.02) (0.02) (0.05)
------- ------ -------
Total Distributions............................................................. (1.00) (0.66) (1.13)
------- ------ -------
Net Asset Value, End of Period.................................................... $ 15.29 $15.28 $ 16.39
======= ====== =======
Total Return (not reflecting sales load)........................................ 1.63% 1.60% 8.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands).......................................... $34,274 $8,538 $31,385
Ratio of Expenses to Average Net Assets........................................... 0.82%(b) 1.13%(b) 0.90%
Effect of Waivers on above Expense Ratios......................................... 0.13%(b) 0.20%(b) 0.08%
Ratios of Net Investment Income to Average
Net Assets...................................................................... 6.18%(b) 5.86%(b) 6.66%
Portfolio Turnover Rate........................................................... 38% 38% 58%
<CAPTION>
YEARS ENDED MAY 31,
------------------------------
1992 1991
INSTITUTIONAL INSTITUTIONAL
SHARES SHARES
------------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period............................................... $ 15.68 $ 15.27
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*............................................................ 1.18 1.26
Net gain (loss) on securities (both realized and unrealized)*..................... 0.61 0.55
------- -------
Total from Investment Operations................................................ 1.79 1.81
------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income.............................................. (1.25) (1.26)
Distributions from net realized gain on investments............................... (0.04) (0.14)
------- -------
Total Distributions............................................................. (1.29) (1.40)
------- -------
Net Asset Value, End of Period.................................................... $ 16.18 $ 15.68
======= =======
Total Return (not reflecting sales load)........................................ 11.80% 12.42%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands).......................................... $16,329 $10,708
Ratio of Expenses to Average Net Assets........................................... 0.96% 0.87%
Effect of Waivers on above Expense Ratios......................................... 0.11% 0.07%
Ratios of Net Investment Income to Average
Net Assets...................................................................... 7.33% 8.21%
Portfolio Turnover Rate........................................................... 16% 48%
</TABLE>
* Per share data based upon average monthly shares outstanding.
(a) Retail Shares commenced operations on October 11, 1993.
(b) Annualized.
49
<PAGE> 173
P A C I F I C A
ASSET PRESERVATION FUND
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1996
(UNAUDITED)
-------------------------- YEARS ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR ---------------------------------
SHARES(a) SHARES 1995 1994 1993
------------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 10.08 $ 10.08 $ 10.04 $ 10.21 $ 10.32
------- ------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*........................................... 0.26 0.26 0.50 0.40 0.47
Net gain (loss) on securities (both realized and unrealized)*.... 0.04 0.02 0.04 (0.13) (0.10)
------- ------- ------- -------- --------
Total from Investment Operations............................... 0.30 0.28 0.54 0.27 0.37
------- ------- ------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income............................. (0.26) (0.25) (0.49) (0.40) (0.47)
Distributions from capital gains................................. -- -- -- (0.01) (0.01)
Distributions from paid-in-capital............................... -- -- (0.01) (0.03) --
------- ------- ------- -------- --------
Total Distributions............................................ (0.26) (0.25) (0.50) (0.44) (0.48)
------- ------- ------- -------- --------
Net Asset Value, End of Period................................... $ 10.12 $ 10.11 $ 10.08 $ 10.04 $ 10.21
======= ======= ======= ======== ========
Total Return (not reflecting sales load)....................... 3.02% 2.88% 5.56% 2.74% 3.68%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)......................... $28,300 $13,226 $51,607 $103,179 $163,755
Ratio of Expenses to Average Net Assets.......................... 0.77%(b) 0.82%(b) 0.94% 0.84% 0.80%
Effect of Waivers on above Ratios................................ 0.06%(b) 0.06%(b) 0.02% 0.02% 0.03%
Ratio of Net Investment Income to Average Net Assets............. 5.14%(b) 5.10%(b) 5.03% 3.92% 4.64%
Portfolio Turnover Rate.......................................... 11% 11% 52% 32% 49%
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1992 1991
-------- -------
<S> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 10.17 $ 9.99
-------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*........................................... 0.57 0.72
Net gain (loss) on securities (both realized and unrealized)*.... 0.15 0.18
-------- -------
Total from Investment Operations............................... 0.72 0.90
-------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income............................. (0.57) (0.72)
Distributions from capital gains................................. -- --
Distributions from paid-in-capital............................... -- --
-------- -------
Total Distributions............................................ (0.57) (0.72)
-------- -------
Net Asset Value, End of Period................................... $ 10.32 $ 10.17
======== =======
Total Return (not reflecting sales load)....................... 7.30% 9.29%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)......................... $160,083 $73,412
Ratio of Expenses to Average Net Assets.......................... 0.75% 0.62%
Effect of Waivers on above Ratios................................ 0.01% 0.24%
Ratio of Net Investment Income to Average Net Assets............. 5.52% 6.90%
Portfolio Turnover Rate.......................................... 21% 30%
</TABLE>
* Per share data based upon average monthly shares outstanding.
(a) Institutional Shares commenced operations on October 1, 1995.
(b) Annualized.
50
<PAGE> 174
P A C I F I C A
GOVERNMENT INCOME FUND
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
PERIOD ENDED
MARCH 31, 1996
(UNAUDITED)
-------------------------- YEARS ENDED SEPTEMBER 30,
INSTITUTIONAL INVESTOR ---------------------------------
SHARES(a) SHARES 1995 1994 1993
------------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......................... $ 9.87 $ 9.83 $ 9.51 $ 10.87 $ 10.76
------- ------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*....................................... 0.27 0.28 0.57 0.57 0.71
Net gain (loss) on securities (both realized and
unrealized)*............................................... (0.18) (0.15) 0.32 (1.11) 0.17
------- ------- ------- -------- --------
Total from Investment Operations........................... 0.09 0.13 0.89 (0.54) 0.88
------- ------- ------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income......................... (0.27) (0.28) (0.52) (0.59) (0.71)
Distributions from capital gains............................. -- -- -- (0.23) (0.06)
Distributions from paid-in-capital........................... -- -- (0.05) -- --
------- ------- ------- -------- --------
Total Distributions........................................ (0.27) (0.28) (0.57) (0.82) (0.77)
------- ------- ------- -------- --------
Net Asset Value, End of Period............................... $ 9.69 $ 9.68 $ 9.83 $ 9.51 $ 10.87
======= ======= ======= ======== ========
Total Return (not reflecting sales load)................... 1.46% 1.30% 9.63% (5.20)% 8.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)..................... $63,355 $10,950 $84,981 $124,372 $171,073
Ratio of Expenses to Average Net Assets...................... 0.89%(b) 0.94%(b) 0.99% 0.94% 0.85%
Effect of Waivers on above Ratios............................ 0.02%(b) 0.02%(b) 0.02% 0.02% 0.09%
Ratio of Net Investment Income to Average Net Assets......... 5.71%(b) 5.72%(b) 5.92% 5.88% 6.49%
Portfolio Turnover Rate...................................... 42% 42% 72% 55% 52%
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1992 1991
-------- -------
<S> <C> <C>
Net Asset Value, Beginning of Period............................ $ 10.44 $ 9.91
-------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income*......................................... 0.76 0.81
Net gain (loss) on securities (both realized and
unrealized)*................................................. 0.33 0.53
-------- -------
Total from Investment Operations............................. 1.09 1.34
-------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income........................... (0.76) (0.81)
Distributions from capital gains............................... (0.01) --
Distributions from paid-in-capital............................. -- --
-------- -------
Total Distributions.......................................... (0.77) (0.81)
-------- -------
Net Asset Value, End of Period................................. $ 10.76 $ 10.44
======== =======
Total Return (not reflecting sales load)..................... 10.77% 14.06%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (in thousands)....................... $138,150 $76,711
Ratio of Expenses to Average Net Assets........................ 0.79% 0.54%
Effect of Waivers on above Ratios.............................. 0.12% 0.44%
Ratio of Net Investment Income to Average Net Assets........... 7.11% 7.97%
Portfolio Turnover Rate........................................ 22% 7%
</TABLE>
* Per share data based upon average monthly shares outstanding.
(a) Institutional Shares commenced operations on October 1, 1995.
(b) Annualized.
51
<PAGE> 175
P A C I F I C A
BOARD OF TRUSTEES
<TABLE>
<S> <C>
JOSEPH N. HANKIN*+ President, Westchester
Community College
RICHARD A. WEDEMEYER* Vice President, Performance
Advantage, Inc.
JOHN E. HEILMANN* Former Chairman, Distillers
Somerset, Inc.
DENNIS W. DRAPER Associate Professor of
Finance, University of
Southern California
JACK D. HENDERSON, ESQ. Attorney-at-Law
* Member of Audit Committee
+ Member of Nominating
Committee
- ----------------------------------------------------------------
OFFICERS
MICHAEL C. PETRYCKI President
STEVEN D. BLECHER Executive Vice President
JOAN V. FIORE Vice President & Secretary
JOHN J. PILEGGI Vice President & Treasurer
DONALD E. BROSTROM Assistant Treasurer
</TABLE>
<PAGE> 176
INVESTMENT ADVISOR
Wells Fargo Investment Management, Inc.
P.O. Box 7066
San Francisco, California 94120-7066
ADMINISTRATOR
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
Pacifica Funds Distributor Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
Wells Fargo Bank, N.A.
P.O. Box 7066
San Francisco, California 94120-7066
COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE PACIFICA FAMILY
OF MUTUAL FUNDS. ITS USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES
IS AUTHORIZED ONLY IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE TRUST'S
CURRENT PROSPECTUS.
[PACIFICA LOGO]
