<PAGE>
[LOGO OF PACIFIC CAPITAL FUNDS APPEARS HERE]
- -----------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1996
- -----------------------
<PAGE>
PACIFIC CAPITAL FUNDS
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1996
LETTER TO SHAREHOLDERS
Dear Shareholders:
The six-month period ended January 31, 1996, saw strong gains for both
stocks and bonds. Continued declines in interest rates, which reflected signs
of weakness in the economy and a low rate of inflation, helped fuel that
strength.
We entered the period expecting slower economic growth and falling interest
rates, and our stock and bond portfolios were positioned accordingly. During
the period it became clear that a number of factors would restrain the
economy. Many of those factors are still in play and will affect the economy
and the financial markets during the coming months. Among them:
. Consumer savings are low and debt is high. In fact, consumer installment
debt has grown almost three times as fast as disposable personal income
over the last two years.
. Monetary policy is restrictive. Despite the Federal Reserve Board's
recent moves to lower short-term interest rates, those rates remain
relatively high given the current economic environment.
. Fiscal policy is restrictive. Government spending will decrease
regardless of whether Congress passes a formal deficit reduction package.
GROWTH STOCKS COULD PROSPER
All of those factors will reduce economic growth. As a result, we expect
that the Federal Reserve will lower short-term interest rates even further.
Taking a global perspective, we also anticipate that rates will drop in
markets abroad. Please refer to the commentary on the New Asia Growth Fund for
more detailed information regarding the global arena.
Gross Domestic Product--a broad measure of the value of goods and services
in the U.S.--will likely grow at around a 1% annual rate during the first half
of 1996 and then pick up modestly in the second half in response to the
Federal Reserve's rate cuts. We expect corporate earnings to grow--albeit at a
more modest pace--and inflation to remain close to 2%.
These factors should support gains in the stock market, although returns
will likely not match those of 1995. We continue to believe that the most
attractive stocks are shares of companies that can deliver steady earnings
growth regardless of the pace of economic growth, which should attract
investors in a slower-growth environment. Stocks of many firms whose fortunes
are closely linked to the economic cycle may be laggards.
AS WITH ALL MUTUAL FUNDS, SHARES IN THE PACIFIC CAPITAL FUNDS
.ARE NOT FDIC INSURED
.HAVE NO BANK GUARANTEE
.MAY LOSE VALUE
1
<PAGE>
BONDS MAY POST MORE GAINS
The weak economy and low inflation rate will likely lead to further declines
in long-term interest rates, which should support some gains in the bond
market during the first half of 1996.
Later in the year, however, rates could begin to creep higher as overseas
economies begin to pick up steam. That could cause investors to worry about a
resurgence of inflation, but would be unlikely to generate any major increase
in prices.
CAUTIOUS OPTIMISM
Although we remain optimistic about the prospects for both stocks and bonds
during the coming period, it is worth noting that there has not been a
significant stock market correction of more than 10% since early 1991. That
alone does not guarantee that such a correction is due; in fact, we think it
is unlikely to occur in the immediate future. Still, five years of almost
uninterrupted gains is unusual--and six or seven years would be extraordinary.
For now, we will maintain a relatively aggressive posture in our portfolios,
with modest cash reserves in our stock funds and somewhat longer maturities in
our bond funds than usual. We will shorten maturities in the bond funds if the
economy shows signs of accelerating; however, even then, stocks might continue
to do well as investors look toward stronger corporate earnings in 1997.
We will continue to invest in diversified portfolios of securities that we
believe offer the potential for superior returns over time, regardless of what
occurs in the financial markets in the short term. And we will take advantage
of any market corrections to purchase undervalued securities that could
enhance the Funds' performance.
NEW AND NOTEWORTHY . . .
In the past six months, the Funds' distribution channels have continued to
expand. In addition to Bancorp Investment Group, customers may also purchase
retail class shares through Merrill Lynch and Wedbush Morgan Securities. The
addition of these broker-dealers provides new investors and current
shareholders broader information about the Funds. Life$pan Asset Advisor, a
new mutual fund asset allocation product offered by Hawaiian Trust Company,
offers investors another approach to investing in the Funds.
Thank you for investing in the Pacific Capital Funds. If you have questions
or would like a Fund prospectus, which you should read carefully before you
invest, please contact your registered representative or call the Funds'
transfer agent at 1-800-258-9232.
Sincerely,
/s/ Deborah G. Patterson /s/ William J. Barton
Deborah G. Patterson William J. Barton
Senior Vice President, Bank of Hawaii Senior Vice President, Manager
Trustee, The Pacific Capital Funds Investment Management Group
Hawaiian Trust Company, Ltd.
2
<PAGE>
FUND PERFORMANCE REPORT
PACIFIC CAPITAL GROWTH STOCK FUND
"We continue to focus on shares of firms with dominant positions in their
markets."--Christopher Sullivan, Portfolio Manager
Pacific Capital Growth Stock Fund
Return on a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Retail (A)* Inst (B) Index
---------------------------------------------------------------
<S> <C> <C> <C>
11/01/93 9,597 10,000 10,000
01/31/94 9,757 10,167 10,278
04/30/94 9,314 9,705 9,671
07/31/94 9,496 9,895 9,926
10/31/94 9,694 10,101 10,490
01/31/95 9,738 10,163 10,519
04/30/95 10,457 10,918 11,566
07/31/95 11,437 11,937 12,832
10/31/95 11,870 12,047 13,529
01/31/96 12,556 13,120 14,715
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
- ---------------------------------------------
Since Inception
01/31/96 1 Year (11/01/93)
- ---------------------------------------------
<S> <C> <C>
Retail(A)* 23.74% 10.63%
Institutional(B) 29.10% 12.82%
- ---------------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
The performance of the Pacific Capital Growth Stock Fund is measured against
the Standard & Poor's/BARRA Growth Index, which is unmanaged and is generally
representative of the performance of the growth stock universe. The index does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The Fund's performance reflects
the deduction of fees for these value-added services. Investment return and the
NAV will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
The stock market's strong performance during the six months ended January 31,
1996, contributed to the Fund's total return of 9.78% for the six months ended
January 31, 1996, and 28.92% for the 12 months ending on that date.+ (Returns
are for Retail Class shares, without the sales charge.) This compared to 14.67%
and 39.89% for the Standard & Poor's/Barra Growth Index, the Fund's benchmark,
for the two periods, respectively.
We concentrated on shares of companies with dominant positions in their
markets and the potential to support superior earnings growth. The Fund
benefited as investors turned to stocks of companies positioned to maintain
their market leadership, as they typically do during the later stages of an
economic expansion.
The Fund's investments spanned a variety of industries, including technology,
consumer goods, pharmaceuticals and financial services. In technology, we
focused on firms such as Cabletron Systems, which helps customers link remote
sites by computer, and we increased our stake in Hewlett Packard. Some
technology holdings, such as Broderbund Software, lost ground when the sector
temporarily stumbled last fall, but we used that opportunity to buy more shares
as they became more attractively valued. Other holdings with dominant market
shares include consumer goods manufacturers Johnson & Johnson and Wrigley.
We expect the high-quality companies in the Fund's portfolio to continue to
deliver relatively strong earnings growth as other companies struggle in a
slowing economy, which should draw investors' attention and support the stocks'
prices.
As of January 31, the Fund's top five equity holdings were General Electric
(3.53%), Coca-Cola (2.92%), American International Group (2.90%), Procter &
Gamble (2.69%) and Johnson & Johnson (2.68%).++
- ----------
+ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 5.37% and 23.74% for the six- and 12-month periods,
respectively.
++ The composition of the Fund's holdings is subject to change.
3
<PAGE>
PACIFIC CAPITAL GROWTH AND INCOME FUND
"The Fund held shares of companies we believed to be well-positioned for a
slow-growth, falling-rate environment."--Roger Khlopin, Portfolio Manager
Pacific Capital Growth and Income Fund
Return on a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
--------------------------------------------------
<S> <C> <C> <C>
11/01/94 9,597 10,000 10,000
01/31/95 9,754 10,157 10,036
04/30/95 10,506 10,956 11,051
07/31/95 11,177 11,652 12,149
10/31/95 11,434 11,939 12,648
01/31/96 12,281 12,817 13,914
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
- ---------------------------------------------
Since Inception
01/31/96 1 Year (10/14/94)
- ---------------------------------------------
<S> <C> <C>
Retail(A)* 20.88% 17.06%
Institutional(B) 26.19% 20.97%
- ---------------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
The performance of the Pacific Capital Growth and Income Fund is measured
against the Standard & Poor's 500 Index, which is unmanaged and is generally
representative of the stock market as a whole. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The Fund's performance reflects the deduction of fees
for these value-added services. Investment return and the NAV will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
During the six months ended January 31, 1996, the Fund delivered a total
return of 9.88%; for the 12 months ending on that date the return was 25.95%.+
(Returns are for Retail Class shares without the sales charge.) For the six-
and 12-month periods, the Fund's benchmark, the S&P 500, returned 14.53% and
38.64%, respectively.
Since it appeared likely that economic growth would slow during the second
half of 1995, the Fund increased its holdings of companies such as PepsiCo,
Hormel, Philip Morris and Pfizer, which sell consumer goods that tend to do
well regardless of the state of the economy. As our concern about the
possibility of a market correction receded along with the fall of interest
rates and relatively strong earnings reports, we reduced the Fund's cash
position to 5% by January in order to participate more fully in the market's
strength.
The Fund has recently increased positions in companies in fast-growing
sectors such as technology. In fact, the Fund took advantage of some compelling
values in that sector as technology stocks suffered precipitous declines in
value late in the year.
Nonetheless, the Fund will continue to aim for an above-average dividend
yield on its portfolio, holding a significant stake in shares of high-yielding
financial, utility and energy stocks. The Fund will also continue to attempt to
deliver gains that at least match those of the S&P 500 without taking on
excessive risk.
As of January 31, 1996, the Fund's top five equity holdings were General
Electric (2.61%), AMP (2.42%), Wachovia (2.38%), Raytheon (2.31%) and Anheuser
Busch (2.20%).++
- --------
+ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 5.46% and 20.88% for the six- and 12-month periods,
respectively.
++ The composition of the Fund's holdings is subject to change.
4
<PAGE>
PACIFIC CAPITAL NEW ASIA GROWTH FUND*
"We are keeping the Fund fully invested since we believe the region's long-
awaited recovery may have begun."--Tim Greaton, Portfolio Manager
Pacific Capital New Asia Growth Fund
Return on a $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
----------------------------------------------------------
<S> <C> <C> <C>
02/15/95 9,479 10,000 10,000
04/30/95 9,678 10,210 9,894
07/31/95 10,626 11,220 10,483
10/31/95 10,265 10,850 9,419
01/31/96 11,527 12,183 10,680
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return
- ------------------------------------
Since Inception
01/31/96 (2/15/95)
- ------------------------------------
<S> <C>
Retail(A)* 15.27%
Institutional(B) 21.83%
- ------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
The performance of the Pacific Capital New Asia Growth Fund is measured against
the Morgan Stanley Capital International Far East Index (excluding Japan) which
is unmanaged and is generally representative of the performance of stock
markets in that region. The index does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Investment return and the NAV will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
Over the six months ended January 31, 1996, Asian stock markets were marked
by volatility and dramatically different performance results. The Fund,
however, ended the six-month period with a solid 8.48% return,+ outperforming
its benchmark, the Morgan Stanley Capital International Far East Index
(excluding Japan), which rose 1.88% over the same period. (Returns are for
Retail Class shares, without the sales charge.)
Hong Kong and Singapore were the strongest markets, up 20.2% and 11.5%
respectively, for the period, while markets in Korea and Taiwan dropped 9.3%
and 8.1%, respectively. The Indonesian market gained 10.2%, but the Malay and
Thai markets fell 4.5% and 0.4%, respectively.
The Fund continued to focus on sectors that we believe offer the best long-
term sustainable earnings potential. Currently, that includes companies
involved in infrastructural development and those producing consumer goods. The
Fund's largest holding is China-HongKong Photo Products (3.84%), China's sole
distributor of Fuji film, which is opening 60 outlets a month. Another large
holding is Floren (3.67%), the publicly traded arm of China Overseas Shipping
Corp., the world's second-largest container firm, which is benefiting from the
vast growth in Asian trade, particularly in China.
5
<PAGE>
We have already been cheered by 1996's arrival. With price/earnings
multiples in the mid-teens and earnings growth forecasts of 15% to 20% for
most of the region's markets, we believe our long-awaited recovery may have
begun. Since sluggish growth is forecast for the larger developed countries,
we expect growth-oriented investors to turn increasingly toward emerging
markets, particularly in Asia.
As of January 31, the Fund's top five equity holdings were China-HongKong
Photo Products Holdings (3.84%); Amoy Properties Ltd. (3.83%), a real estate
development company; Floren Group Ltd. (3.67%), a shipping company; PT Semen
Gresik (3.03%), a construction company; and Petronas Gas (2.96%), which is the
sole producer and distributor of natural gas in Malaysia.++
- --------
* International investing is subject to certain risk factors, such as
currency exchange-rate volatility, possible political, social or economic
instability, foreign taxation and/or differences in auditing and other
financial standards.
+ With the maximum sales charge of 5.25%, the Fund's Retail Class shares had
a total return of 2.79% for the period.
++ The composition of the Fund's holdings is subject to change.
6
<PAGE>
PACIFIC CAPITAL U.S. TREASURY SECURITIES FUND
"The Fund continued to invest exclusively in Treasury securities, which
carry virtually no credit risk." --Dave Todani, Portfolio Manager
[GRAPH APPEARS HERE]
Pacific Capital U.S. Treasury Securities Fund
Return on a $10,000 Investment
Index Name: Merrill Lynch Government/U.S. Treasury Index (10-15 years)
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
- ------------------------------------------------
<S> <C> <C> <C>
11/01/93 9,597 10,000 10,000
01/31/94 9,578 9,980 10,055
04/30/94 8,829 9,200 9,276
07/31/94 8,931 9,305 9,419
10/31/94 8,620 8,982 9,207
01/31/95 8,909 9,288 9,512
04/30/95 9,318 9,721 9,994
07/31/95 9,840 10,282 10,572
10/31/95 10,380 10,853 11,055
01/31/96 10,839 11,334 11,515
</TABLE>
Average Annual Total Return
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Since Inception
01/31/96 1 Year (11/01/93)
- -----------------------------------------------------------
<S> <C> <C>
Retail(A)* 16.77% 3.66%
Institutional(B) 22.02% 5.72%
- -----------------------------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
Past performance is not predictive of future results
The performance of the Pacific Capital U.S. Treasury Securities Fund is
measured against the Merrill Lynch 10-15 Year Government/U.S. Treasury Index,
which is unmanaged and is generally representative of the performance of long-
term Treasury bonds. The index does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Investment return and the NAV will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
The Fund maintained a relatively long average maturity during the six months
ended January 31, 1996, because it seemed likely that interest rates would
continue to fall as a result of slower economic growth and low inflation.
Longer-maturity bonds typically perform better when rates decline.
That strategy contributed to the Fund's 10.19% return during the six-month
period ending on that date and a total return of 21.70% for the 12 months
ended January 31.+ (Returns are for Retail Class shares without the sales
charge.) This compared to a return of 8.92% and 21.06% for the Merrill Lynch
10-15 Year Government/ U.S. Treasury Index for the six- and 12-month periods,
respectively.
The Fund maintained its policy of investing exclusively in U.S. Treasury
securities, which carry virtually no credit risk. The Fund achieves
incremental returns over the securities' coupon rate through actively managing
the maturities of the securities in the Fund. If rates are expected to
decline, maturities would be lengthened to benefit from price appreciation. If
rates are expected to rise, maturities would be shortened to preserve capital.
It seems likely that the Federal Reserve Board will continue to lower
interest rates during the coming months to stimulate the economy. By the
second half of 1996 those rate cuts may succeed in stimulating the economy and
increasing inflationary pressures to the point where rates begin to climb. We
will watch for signs of a rebound and will shorten the Fund's average maturity
if and when that occurs. Meanwhile, the Fund will continue to maintain a
relatively long average maturity compared to its benchmark index in hopes of
capturing further gains from declining interest rates.
- ----------
+ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 5.81% and 16.77% for the six- and 12-month periods,
respectively.
7
<PAGE>
PACIFIC CAPITAL SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
"The Fund's portfolio benefited when slow economic growth forced the Federal
Reserve Board to cut short-term interest rates."--Dave Todani, Portfolio
Manager
[GRAPH APPEARS HERE]
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
Return on a $10,000 Investment
Index Name: Merrill Lynch Government/U.S. Treasury Index (3 - 5 years)
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
- -----------------------------------------------------------
<S> <C> <C> <C>
12/13/93 9,775 10,000 10,000
01/31/94 9,869 10,096 10,095
04/30/94 9,388 9,604 9,680
07/31/94 9,506 9,724 9,825
10/31/94 9,356 9,582 9,745
01/31/95 9,459 9,692 9,887
04/30/95 9,791 10,037 10,379
07/31/95 10,103 10,363 10,794
10/31/95 10,362 10,636 11,092
01/31/96 10,695 10,998 11,481
</TABLE>
Average Annual Total Return
<TABLE>
<CAPTION>
- --------------------------------------------------
Since Inception
01/31/96 1 Year (12/13/93)
- --------------------------------------------------
<S> <C> <C>
Retail(A)* 10.56% 3.19%
Institutional(B) 13.48% 4.55%
- --------------------------------------------------
</TABLE>
*Reflects 2.25% Sales Charge
Past performance is not predictive of future results
The performance of the Pacific Capital Short Intermediate U.S. Treasury
Securities Fund is measured against the Merrill Lynch 3-5 Year U.S. Treasury
Index, which is unmanaged and is generally representative of the performance
of short-term Treasury bonds. The index does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Investment return and the NAV will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
We invested the portfolio in U.S. Treasury securities with average
maturities of around 4.25 years, which is about 5% to 6% higher than the
average maturity of the Fund's benchmark, the Merrill Lynch 3-5 Year U.S.
Treasury Index. Since longer-term issues perform better when interest rates
decline, the Fund's portfolio benefited when slow economic growth forced the
Federal Reserve to cut short-term interest rates during the period.
As a result, the Fund posted a total return of 5.86% during the six months
and 13.07% for the 12 months ended January 31, 1996.+ (Returns are for Retail
Class shares without the sales charge.) Although the Fund compared favorably
with other short- to intermediate-maturity funds, it did not outpace the
index, which returned 6.36% and 16.12% for the two periods, respectively.
During the coming months it seems likely that the Federal Reserve will lower
short-term interest rates further. We plan to maintain a slightly higher-than-
neutral average maturity in the short run and are prepared to shift toward
shorter-term issues if interest rates move higher. We will continue to invest
only in Treasury securities, which have minimal credit risk.
- ----------
+ With the maximum sales charge of 2.25%, the Fund's Retail Class shares had a
total return of 3.49% and 10.56% for the six- and 12-month periods,
respectively.
8
<PAGE>
PACIFIC CAPITAL DIVERSIFIED FIXED INCOME FUND
"The Fund maintained a longer-than-average maturity to capitalize on
declining interest rates."--Janet Katakura, Portfolio Manager
[GRAPH APPEARS HERE]
Pacific Capital Diversified Fixed Income Fund
Return on a $10,000 Investment
Index Name: Merrill Lynch Corporate & Government Master Index
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
- ----------------------------------------------------------------
<S> <C> <C> <C>
11/01/94 9,602 10,000 10,000
01/31/95 9,876 10,338 10,241
04/30/95 10,403 10,911 10,717
07/31/95 10,948 11,485 11,217
10/31/95 11,479 12,043 11,643
01/31/96 11,959 12,552 12,076
</TABLE>
Average Annual Total Return
<TABLE>
<CAPTION>
- --------------------------------------------------
Since Inception
01/31/96 1 Year (10/14/94)
- --------------------------------------------------
<S> <C> <C>
Retail(A)* 16.22% 13.67%
Institutional(B) 21.45% 18.23%
- --------------------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
Past Performance is not predictive of future results
The performance of the Pacific Capital Diversified Fixed Income Fund is
measured against the Merrill Lynch Corporate & Government Master Index, which
is unmanaged and is generally representative of the performance of corporate
and U.S. Government bonds. The index does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The Fund's performance reflects the deduction of fees for
these value-added services. Investment return and the NAV will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
The Fund pursued an aggressive strategy during the six months ended January
31, 1996, to capitalize on falling interest rates. The average duration of the
Fund was about 35% to 40% longer than the duration of the Fund's benchmark,
the Merrill Lynch Corporate & Government Master Index. Longer duration
portfolios, which hold longer-term securities, perform better when interest
rates are falling, and we had predicted that slow economic growth and low
inflation would produce lower rates.
That is precisely what occurred. As a result, the Fund delivered a 9.24%
total return during the six-month period and 21.10% for the 12 months ended
January 31, 1996.+ (Returns are for Retail Class shares without the sales
charge.) That compared to a 7.66% and 17.92% total return for the same
periods, respectively, for the index.
The Fund also maintained a relatively high percentage of its portfolio in
corporate bonds compared to its benchmark; that helped boost returns as
corporate issues outperformed other sectors of the taxable bond market.
However, we maintained an average credit rating of AAA for the securities in
the Fund.
It is possible that interest rates may move up slightly during the second
half of 1996 if the economy starts to recover. Meanwhile, we will continue to
maintain a relatively aggressive posture to benefit from further declines in
rates that are likely in the short term as the Federal Reserve attempts to
reignite the economy.
- ----------
+ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 4.85% and 16.22% for the six- and 12-month periods,
respectively.
9
<PAGE>
PACIFIC CAPITAL TAX-FREE SECURITIES FUND*
"The Fund invested in relatively long-term municipal issues, which benefited
from falling interest rates."--Yvonne Lim, Portfolio Manager
[GRAPH APPEARS HERE]
Pacific Capital Tax-Free Securities Fund
Return on a $10,000 Investment
Index Name:
I. Lehman Brothers Municipal Bond Index (20 years)
II. Merrill Lynch Municipal Index (12-22 years)
<TABLE>
<CAPTION>
Index Index
Date Retail(A)* Inst(B) I. II.
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
11/01/94 9,599 10,000 10,000 10,000
01/31/95 9,951 10,369 10,467 10,327
04/30/95 10,344 10,784 10,968 10,756
07/31/95 10,661 11,121 11,265 11,178
10/31/95 10,983 11,464 11,755
01/31/96 11,397 11,886 12,246
</TABLE>
Average Annual Total Return
<TABLE>
<CAPTION>
- ---------------------------------------------------------
Since Inception
01/31/96 1 Year (10/14/94)
- ---------------------------------------------------------
<S> <C> <C>
Retail(A)* 9.89% 8.99%
Institutional(B) 14.63% 12.91%
- ---------------------------------------------------------
</TABLE>
*Reflects 4.0% Sales Charge
Past Performance is not predictive of future results
The performance of the Pacific Capital Tax-Free Securities Fund is measured
against the Lehman Brothers 20 Year Municipal Bond Index, an unmanaged index
generally representative of the performance of long-term municipal bonds. The
index does not reflect the deduction of fees associated with a mutual fund,
such as investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services. Investment
return and the NAV will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
The Fund's total return during the six months ended January 31, 1996, was
6.84% and, for the 12-month period, 14.47%.+ (Returns are for Retail Class
shares without the sales charge.) This compared to a return of 8.71% and 17.00%
for the Lehman Brothers 20 Year Municipal Bond Index for the six- and 12-month
periods, respectively. Although the municipal bond market benefited from
declining interest rates, it underperformed the taxable bond market due to
uncertainties caused by flat-tax proposals, which would, if enacted, reduce the
tax advantage of municipal bonds.
As a result, the yield on a AAA-rated, 30-year general obligation bond
declined much less than the yield on a 30-year Treasury bond, resulting in less
price appreciation. Fears arising from the uncertainty over the flat tax also
caused a shift in demand from longer-maturity municipal bonds to shorter-
maturity bonds. As a result, long-term municipal bond yields exceeded 90% of
the yield on Treasury issues with comparable maturities.
Since we believe that flat-tax concerns were overblown, we saw this as
further support for our strategy to maintain a relatively long average maturity
in anticipation of declining interest rates. Without a final resolution
regarding the flat tax, we felt the best approach was to enhance the liquidity
of the portfolio by enhancing quality. We acquired secondary municipal
insurance on many portfolio holdings and swapped issues with lower credit
ratings for those with higher ratings. At period's end, 76% of the Fund's
assets were invested in issues rated AAA.
We believe that this strategy will continue to serve the portfolio well as
flat-tax fears fade and interest rates continue to fall. Since the beginning of
1996, flat-tax proposals appear to have lost some political steam, and there
has been a resurgence of interest in the municipal market.
- --------
* The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
+ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 2.56% and 9.89% for the six- and 12-month periods,
respectively.
10
<PAGE>
PACIFIC CAPITAL TAX-FREE SHORT INTERMEDIATE SECURITIES FUND*
"We locked in yields on higher-rate issues because it seemed likely that
interest rates would fall."--Yvonne Lim, Portfolio Manager
[GRAPH APPEARS HERE]
Pacific Capital Tax-Free Short Intermediate Securities Fund
Return on a $10,000 Investment
Index Name: Lehman Brothers 3 year Municipal Bond Index
<TABLE>
<CAPTION>
Date Retail(A)* Inst(B) Index
- ---------------------------------------------------------------
<S> <C> <C> <C>
11/01/94 9,774 10,000 10,000
01/31/95 9,803 10,044 10,108
04/30/95 10,007 10,268 10,341
07/31/95 10,226 10,488 10,636
10/31/95 10,385 10,667 10,801
01/31/96 10,556 10,841 11,001
</TABLE>
Average Annual Total Return
<TABLE>
<CAPTION>
- --------------------------------------------------------
Since Inception
01/31/96 1 Year (10/14/94)
- --------------------------------------------------------
<S> <C> <C>
Retail(A)* 5.23% 3.71%
Institutional 7.94% 6.01%
- --------------------------------------------------------
</TABLE>
*Reflects 2.25% Sales Charge
Past Performance is not predictive of future results
The performance of the Pacific Capital Tax-Free Short Intermediate Securities
Fund is measured against the Lehman Brothers 3-Year Municipal Bond Index, which
is unmanaged and generally representative of the performance of short-term
municipal bonds. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services. Investment return and the NAV will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
The Fund posted a total return of 3.23%+ during the six months that ended
January 31, 1996, benefiting from declining interest rates as the economy
continued to lose steam. The return for the 12 months ending on that date was
7.68%.+ (Returns are for Retail Class shares without the sales charge.) This
compared to a return of 3.43% and 8.83% for the Lehman Brothers 3-Year
Municipal Bond Index for the six- and 12-month periods, respectively.
Beginning in the second quarter of 1995, we began to lock in higher interest
rates by acquiring bonds with the longest maturity allowed by the Fund's
guidelines (5 years) since we anticipated that interest rates would fall. The
Fund ended the period with an average maturity of 3.84 years.
The Fund's performance was further boosted by the shift in demand from
longer-term municipal bonds to shorter-term municipal bonds as a result of
uncertainty over flat-tax proposals. During the past six months, we also
continued our efforts to enhance the quality of the Fund by actively selecting
high-quality issues and maintained secondary insurance on all state of Hawaii
bonds and Honolulu city and county general obligation bonds. At period's end,
approximately 86% of the portfolio was invested in securities rated AA or
better; 80% of the portfolio's holdings was rated AAA.
During the coming period, we will continue our efforts to extend the average
maturity of the Fund, since we believe that the Federal Reserve will have to
ease interest rates further to prevent the economy from faltering.
- ----------
* The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
+ With the maximum sales charge of 2.25%, the Fund's Retail Class shares had a
total return of 0.93% and 5.23% for the six- and 12-month periods,
respectively.
11
<PAGE>
TABLE OF CONTENTS
Statements of Assets and Liabilities
Page 13
Statements of Operations
Page 15
Statements of Changes in Net Assets
Page 17
Schedules of Portfolio Investments
Page 20
Notes to Financial Statements
Page 37
Financial Highlights
Page 46
12
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
GROWTH U.S. TREASURY U.S. TREASURY
STOCK SECURITIES SECURITIES GROWTH AND
FUND FUND FUND INCOME FUND
------------ ------------- ------------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $146,616,868;
$24,633,332;
$20,191,003; and
$55,283,298
respectively).......... $175,399,809 $27,868,098 $20,895,430 $62,902,092
Interest and dividends
receivable............. 206,427 675,459 232,379 74,334
Receivable for capital
shares issued.......... 308,927 183,657 161,935
Receivable from brokers
for investments sold... 2,737,589
Prepaid expenses and
other assets........... 20,561 4,532 15,890 9,713
------------ ----------- ----------- -----------
Total Assets.......... 175,935,724 28,548,089 21,327,356 65,885,663
------------ ----------- ----------- -----------
LIABILITIES:
Dividends payable....... 4,331 3,041 164,300
Payable for capital
shares redeemed........ 304,203 364 102,749 2,760,570
Accrued expenses and
other payables:
Investment advisory
fees.................. 113,899 14,327 5,155 40,478
Administration fees.... 22,780 3,821 2,578 8,096
Distribution fees--Re-
tail Class............ 908 237 212 91
Fund accounting and
transfer agent fees... 10,452 5,410 4,158 5,731
Other.................. 38,053 15,348 4,797 10,498
------------ ----------- ----------- -----------
Total Liabilities..... 490,295 43,838 122,690 2,989,764
------------ ----------- ----------- -----------
NET ASSETS:
Capital................. 147,426,598 29,372,295 20,500,272 54,253,351
Undistributed net
investment income...... 11,128 11,648
Net unrealized
appreciation from
investments............ 28,782,941 3,234,766 704,427 7,618,794
Accumulated
undistributed net
realized gains (losses)
from investment
transactions........... (775,238) (4,102,810) (33) 1,012,106
------------ ----------- ----------- -----------
Net Assets............ $175,445,429 $28,504,251 $21,204,666 $62,895,899
============ =========== =========== ===========
Net Assets
Retail Class........... $ 4,424,366 $ 1,126,635 $ 1,015,679 $ 443,785
Institutional Class.... 171,021,063 27,377,616 20,188,987 62,452,114
------------ ----------- ----------- -----------
Total................. $175,445,429 $28,504,251 $21,204,666 $62,895,899
============ =========== =========== ===========
Outstanding units of
beneficial interest
(shares)
Retail Class........... 365,912 112,691 103,320 36,443
Institutional Class.... 14,139,980 2,736,831 2,049,788 5,132,094
------------ ----------- ----------- -----------
Total................. 14,505,892 2,849,522 2,153,108 5,168,537
============ =========== =========== ===========
Net Asset Value
Retail Class--redemp-
tion price per share.. $ 12.09 $ 10.00 $ 9.83 $ 12.18
============ =========== =========== ===========
Institutional Class--
offering and redemp-
tion price per share.. $ 12.09 $ 10.00 $ 9.85 $ 12.17
============ =========== =========== ===========
Maximum Sales Charge.... 4.00% 4.00% 2.25% 4.00%
------------ ----------- ----------- -----------
Maximum Offering Price
(100%/(100%--Maximum
Sales Charge) of net
asset value adjusted to
nearest cent) per
share--Retail Class.... $ 12.59 $ 10.42 $ 10.06 $ 12.69
============ =========== =========== ===========
</TABLE>
13
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
TAX-FREE
DIVERSIFIED TAX-FREE SHORT INTERMEDIATE NEW ASIA
FIXED INCOME SECURITIES SECURITIES GROWTH
FUND FUND FUND FUND
------------ ------------ ------------------ ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $132,904,034;
$268,856,180;
$39,709,891; and
$3,602,219
respectively).......... $140,715,064 $291,156,178 $40,698,329 $4,121,529
Interest and dividends
receivable............. 2,434,361 3,493,135 423,146 1,651
Receivable for forward
foreign currency con-
tracts sold............ 109,736
Receivable for capital
shares issued.......... 521,782 549,000 118,822 156,128
Unamortized organization
costs.................. 24,376
Prepaid expenses and
other assets........... 18,653 62,635 9,070 27,711
------------ ------------ ----------- ----------
Total Assets.......... 143,689,860 295,260,948 41,249,367 4,441,131
------------ ------------ ----------- ----------
LIABILITIES:
Dividends payable....... 20,303 38,465 4,273
Payable for capital
shares redeemed........ 572,275 864,746 1,000 3,409
Payable to brokers for
investments purchased.. 504,075 219,532
Cash overdraft.......... 470,526
Accrued expenses and
other payables:
Investment advisory
fees.................. 70,306 148,644 17,135
Administration fees.... 18,748 39,638 5,141 472
Distribution fees--Re-
tail Class............ 133 238 69 156
Fund accounting and
transfer agent fees... 8,289 21,042 6,571 1,384
Other.................. 18,052 57,549 9,141 9,056
------------ ------------ ----------- ----------
Total Liabilities..... 708,106 1,640,848 547,405 234,009
------------ ------------ ----------- ----------
NET ASSETS:
Capital................. 133,696,518 270,397,821 39,751,188 3,729,052
Undistributed net in-
vestment income........ 1,312
Net unrealized apprecia-
tion from investments.. 7,811,030 22,299,998 988,438 558,731
Net unrealized
appreciation from
translation of assets
and liabilities in
foreign currencies..... (39,498)
Accumulated
undistributed net
realized gains (losses)
from investment
transactions........... 1,474,206 922,281 (37,664) (16,955)
Accumulated
undistributed net
realized losses from
foreign currency
transactions........... (25,520)
------------ ------------ ----------- ----------
Net Assets............ $142,981,754 $293,620,100 $40,701,962 $4,207,122
============ ============ =========== ==========
Net Assets
Retail Class........... $ 687,773 $ 1,165,932 $ 322,769 $ 852,286
Institutional Class.... 142,293,981 292,454,168 40,379,193 3,354,836
------------ ------------ ----------- ----------
Total................. $142,981,754 $293,620,100 $40,701,962 $4,207,122
============ ============ =========== ==========
Outstanding units of
beneficial interest
(shares)
Retail Class........... 60,854 107,851 31,599 71,893
Institutional Class.... 12,498,130 26,994,481 3,941,932 282,890
------------ ------------ ----------- ----------
Total................. 12,558,984 27,102,332 3,973,531 354,783
============ ============ =========== ==========
Net Asset Value
Retail Class--redemp-
tion price per share.. $ 11.30 $ 10.81 $ 10.21 $ 11.85
============ ============ =========== ==========
Institutional Class--
offering and redemp-
tion price per share.. $ 11.39 $ 10.83 $ 10.24 $ 11.86
============ ============ =========== ==========
Maximum Sales Charge.... 4.00% 4.00% 2.25% 5.25%
------------ ------------ ----------- ----------
Maximum Offering Price
(100%/(100%--Maximum
Sales Charge) of net
asset value adjusted to
nearest cent) per
share--Retail Class.... $ 11.77 $ 11.26 $ 10.45 $ 12.51
============ ============ =========== ==========
</TABLE>
14
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
U.S. TREASURY U.S. TREASURY GROWTH AND
GROWTH STOCK SECURITIES SECURITIES INCOME
FUND FUND FUND FUND
------------ ------------- ------------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 549,285 $1,059,452 $ 536,074 $ 146,145
Dividend income......... 1,138,807 605,797
----------- ---------- ---------- ----------
Total Income.......... 1,688,092 1,059,452 536,074 751,942
----------- ---------- ---------- ----------
EXPENSES:
Investment advisory
fees................... 636,147 95,331 44,035 215,510
Administration fees..... 158,873 31,574 17,614 53,873
Distribution fees--Re-
tail Class............. 15,528 4,072 2,325 1,414
Custodian fees.......... 3,520 576 384 1,216
Accounting fees......... 25,144 5,318 3,485 9,370
Legal and audit fees.... 24,711 5,541 3,286 7,914
Organization costs...... 13,090 14,490 1,314
Trustees' fees and ex-
penses................. 7,044 1,260 762 2,366
Transfer agent fees..... 8,596 6,571 6,256 6,861
Registration and filing
fees................... 12,665 184 2,392 2,974
Printing costs.......... 8,653 1,418 920 3,865
Other................... 2,944 708 369 894
Expenses voluntarily
reduced by adviser,
administrator and/or
distributor............ (43,179) (9,303) (23,539) (12,074)
----------- ---------- ---------- ----------
Total Expenses........ 873,736 157,740 59,603 294,183
----------- ---------- ---------- ----------
Net Investment Income... 814,356 901,712 476,471 457,759
----------- ---------- ---------- ----------
REALIZED/UNREALIZED
GAINS FROM INVESTMENTS:
Net realized gains from
investment transac-
tions.................. 6,411,370 417,554 32,607 2,176,068
Net change in unrealized
appreciation from in-
vestments.............. 8,523,279 1,652,605 540,059 2,933,863
----------- ---------- ---------- ----------
Net realized/unrealized
gains from investments. 14,934,649 2,070,159 572,666 5,109,931
----------- ---------- ---------- ----------
Change in net assets re-
sulting from opera-
tions.................. $15,749,005 $2,971,871 $1,049,137 $5,567,690
=========== ========== ========== ==========
</TABLE>
15
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
TAX-FREE
DIVERSIFIED TAX-FREE SHORT INTERMEDIATE NEW ASIA
FIXED INCOME SECURITIES SECURITIES GROWTH
FUND FUND FUND FUND
------------ ----------- ------------------ --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 3,774,812 $ 8,348,991 $ 963,818
Dividend income......... $ 32,822
Foreign tax withholding. (1,174)
----------- ----------- ---------- --------
Total Income.......... 3,774,812 8,348,991 963,818 31,648
----------- ----------- ---------- --------
EXPENSES:
Investment advisory
fees................... 352,861 867,144 101,578 14,407
Administration fees..... 114,495 288,462 40,542 3,201
Distribution fees--
Retail Class........... 758 2,706 1,191 1,998
Custodian fees.......... 2,752 6,400 896 2,208
Accounting fees......... 19,851 55,474 10,296 480
Legal and audit fees.... 15,520 46,423 6,440 1,919
Organization costs...... 11,776
Trustees' fees and
expenses............... 4,735 12,693 1,787 184
Transfer agent fees..... 7,756 10,620 6,703 7,912
Registration and filing
fees................... 4,158 17,247 2,712 447
Printing costs.......... 5,998 14,771 2,129 8,254
Other................... 1,815 5,390 735 184
Expenses voluntarily
reduced by adviser,
administrator and/or
distributor............ (21,401) (61,399) (10,860) (16,540)
----------- ----------- ---------- --------
Total Expenses before
reimbursement by
adviser............... 509,298 1,265,931 164,149 36,430
Reimbursement of
expenses by adviser... (4,146)
----------- ----------- ---------- --------
Total Expenses........ 509,298 1,265,931 164,149 32,284
----------- ----------- ---------- --------
Net Investment Income... 3,265,514 7,083,060 799,669 (636)
----------- ----------- ---------- --------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment
transactions........... 1,926,435 1,915,258 227,096 (16,981)
Net realized losses from
foreign currency
transactions........... (13,903)
Net change in unrealized
appreciation from
investments............ 5,194,204 10,178,579 315,061 393,535
Net change in unrealized
depreciation from
translation of assets
and liabilities in
foreign currencies..... (36,348)
----------- ----------- ---------- --------
Net realized/unrealized
gains from investments
and foreign currencies. 7,120,639 12,093,837 542,157 326,303
----------- ----------- ---------- --------
Change in net assets
resulting from
operations............. $10,386,153 $19,176,897 $1,341,826 $325,667
=========== =========== ========== ========
</TABLE>
16
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
U.S. TREASURY U.S. TREASURY
GROWTH STOCK FUND SECURITIES FUND SECURITIES FUND
-------------------------- -------------------------- --------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 1996 1995 1996 1995
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 814,356 $ 1,414,887 $ 901,712 $ 3,360,178 $ 476,471 $ 739,009
Net realized gains
(losses) from
investment
transactions.......... 6,411,370 2,291,705 417,554 (4,219,260) 32,607 5,148
Net change in
unrealized
appreciation from
investments........... 8,523,279 20,099,233 1,652,605 6,833,930 540,059 344,160
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets
resulting from
operations............. 15,749,005 23,805,825 2,971,871 5,974,848 1,049,137 1,088,317
------------ ------------ ------------ ------------ ----------- -----------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income (a)............ (135,164)(b) (786,481)(b) (40,812)(b)
From net investment
income (a)............ (29,334)(c) (40,655)(c) (19,044)(c)
From net investment
income................ (15,987) (39,790) (18,924)
From net realized gains
from investment
transactions.......... (242,871) (2,008)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income (a)............ (1,224,225)(c) (2,520,822)(c) (613,328)(c)
From net investment
income................ (820,752) (1,134,303) (535,765)
From net realized gains
from investment
transactions.......... (9,131,280) (35,759)
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets
from shareholder
distributions.......... (10,210,890) (1,388,724) (1,174,093) (3,347,958) (592,456) (673,214)
------------ ------------ ------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 95,314,607 82,513,604 985,611 2,718,467 9,012,249 16,852,197
Dividends reinvested... 6,378,240 713,011 1,154,078 3,339,073 88,520 190,790
Cost of shares
redeemed.............. (72,527,713) (21,022,651) (27,732,527) (16,510,086) (5,056,369) (4,173,175)
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets
from share
transactions........... 29,165,134 62,203,964 (25,592,838) (10,452,546) 4,044,400 12,869,812
------------ ------------ ------------ ------------ ----------- -----------
Change in net assets.... 34,703,249 84,621,066 (23,795,060) (7,825,656) 4,501,081 13,284,915
NET ASSETS:
Beginning of period.... 140,742,180 56,121,115 52,299,311 60,124,967 16,703,585 3,418,670
------------ ------------ ------------ ------------ ----------- -----------
End of period.......... $175,445,429 $140,742,180 $ 28,504,251 $ 52,299,311 $21,204,666 $16,703,585
============ ============ ============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued................. 7,961,059 8,237,688 101,869 307,618 929,012 1,803,713
Reinvested............. 536,516 68,923 119,809 375,250 9,133 20,407
Redeemed............... (6,010,072) (1,998,212) (2,920,427) (1,785,560) (523,597) (444,724)
------------ ------------ ------------ ------------ ----------- -----------
Change in shares........ 2,487,503 6,308,399 (2,698,749) (1,102,692) 414,548 1,379,396
============ ============ ============ ============ =========== ===========
</TABLE>
- ------
(a) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of the Retail class and transferred these shareholders into
the Institutional class effective October 14, 1994.
(b) For the period August 1, 1994 through October 13, 1994.
(c) For the period October 14, 1994 through July 31, 1995.
17
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
DIVERSIFIED FIXED
GROWTH AND INCOME FUND INCOME FUND TAX-FREE SECURITIES FUND
------------------------- ------------------------- --------------------------
FOR THE SIX OCTOBER 14, FOR THE SIX OCTOBER 14, FOR THE SIX OCTOBER 14,
MONTHS ENDED 1994 TO MONTHS ENDED 1994 TO MONTHS ENDED 1994 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995 (A) 1996 1995 (A) 1996 1995 (A)
------------ ----------- ------------ ----------- ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 457,759 $ 676,590 $ 3,265,514 $ 2,357,474 $ 7,083,060 $ 10,774,359
Net realized gains from
investment
transactions.......... 2,176,068 276,982 1,926,435 741,453 1,915,258 2,569,877
Net change in
unrealized
appreciation from
investments........... 2,933,863 4,684,931 5,194,204 2,616,826 10,178,579 12,121,419
------------ ----------- ------------ ----------- ------------ ------------
Change in net assets
resulting from
operations............. 5,567,690 5,638,503 10,386,153 5,715,753 19,176,897 25,465,655
------------ ----------- ------------ ----------- ------------ ------------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (2,936) (2,751) (5,234) (454) (18,293) (18,362)
From net realized gains
from investment
transactions.......... (10,087) (5,216) (7,584)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................ (492,129) (624,885) (3,532,207) (2,085,093) (8,234,234) (9,586,530)
From net realized gains
from investment
transactions.......... (1,430,857) (1,188,466) (3,555,270)
------------ ----------- ------------ ----------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (1,936,009) (627,636) (4,731,123) (2,085,547) (11,815,381) (9,604,892)
------------ ----------- ------------ ----------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 28,450,021 40,974,709 152,039,075 56,868,583 12,218,502 293,909,646
Dividends reinvested... 1,242,397 3,296 792,791 2,354 3,558,806 16,515
Cost of shares
redeemed.............. (12,527,499) (3,889,573) (70,359,262) (5,647,023) (11,727,450) (27,578,198)
------------ ----------- ------------ ----------- ------------ ------------
Change in net assets
from share
transactions........... 17,164,919 37,088,432 82,472,604 51,223,914 4,049,858 266,347,963
------------ ----------- ------------ ----------- ------------ ------------
Change in net assets.... 20,796,600 42,098,826 88,127,634 54,854,120 11,411,374 282,208,726
NET ASSETS:
Beginning of period.... 42,099,299 54,854,120 282,208,726
------------ ----------- ------------ ----------- ------------ ------------
End of period.......... $ 62,895,899 $42,099,299 $142,981,754 $54,854,120 $293,620,100 $282,208,726
============ =========== ============ =========== ============ ============
SHARE TRANSACTIONS:
Issued................. 2,448,493 4,055,447 13,754,038 5,603,737 1,142,824 29,476,881
Reinvested............. 105,172 312 70,726 219 332,291 1,626
Redeemed............... (1,068,211) (372,676) (6,327,722) (542,014) (1,097,597) (2,753,693)
------------ ----------- ------------ ----------- ------------ ------------
Change in shares........ 1,485,454 3,683,083 7,497,042 5,061,942 377,518 26,724,814
============ =========== ============ =========== ============ ============
</TABLE>
- ------
(a) Period from commencement of operations.
18
<PAGE>
See notes to financial statements.
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TAX-FREE SHORT
INTERMEDIATE SECURITIES
FUND NEW ASIA GROWTH FUND
------------------------- -------------------------
FOR THE SIX OCTOBER 14, FOR THE SIX FEBRUARY 15,
MONTHS ENDED 1994 TO MONTHS ENDED 1995 TO
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1996 1995(A) 1996 1995(A)
------------ ----------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income..... $ 799,669 $ 1,220,408 $ (636) $ 10,915
Net realized gains
(losses) from investment
transactions............. 227,096 (264,760) (16,981) 78,817
Net realized losses from
foreign currency
transactions............. (13,903) (11,617)
Net change in unrealized
appreciation from
investments.............. 315,061 673,377 393,535 165,196
Net change in unrealized
depreciation from
translation of assets and
liabilities in foreign
currencies............... (36,348) (3,150)
----------- ----------- ---------- ----------
Change in net assets
resulting from operations. 1,341,826 1,629,025 325,667 240,161
----------- ----------- ---------- ----------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................... (6,757) (2,044) (1,121)
From net realized gains
from investment
transactions............. (15,201)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................... (927,331) (1,083,945) (7,846)
From net realized gains
from investment
transactions............. (63,590)
----------- ----------- ---------- ----------
Change in net assets from
shareholder distributions. (934,088) (1,085,989) (87,758)
----------- ----------- ---------- ----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 3,192,786 46,135,652 2,489,484 2,962,039
Dividends reinvested...... 4,384 755 59,730
Cost of shares redeemed... (3,203,022) (6,379,367) (1,770,765) (11,436)
----------- ----------- ---------- ----------
Change in net assets from
share transactions........ (5,852) 39,757,040 778,449 2,950,603
----------- ----------- ---------- ----------
Change in net assets....... 401,886 40,300,076 1,016,358 3,190,764
NET ASSETS:
Beginning of period....... 40,300,076 3,190,764
----------- ----------- ---------- ----------
End of period............. $40,701,962 $40,300,076 $4,207,122 $3,190,764
=========== =========== ========== ==========
SHARE TRANSACTIONS:
Issued.................... 313,107 4,615,684 225,459 285,421
Reinvested................ 431 76 5,614
Redeemed.................. (314,383) (641,384) (160,630) (1,081)
=========== =========== ========== ==========
Change in shares........... (845) 3,974,376 70,443 284,340
=========== =========== ========== ==========
</TABLE>
- ------
(a) Period from commencement of operations.
19
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION MARKET VALUE
--------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS (86.0%):
Automotive Parts (0.9%):
63,000 Stewart & Stevenson Services, Inc. .................. $ 1,559,250
------------
Beverages (5.0%):
68,000 Coca Cola Co. ....................................... 5,125,500
61,900 Pepsico, Inc. ....................................... 3,690,788
------------
8,816,288
------------
Chemicals (2.8%):
28,000 Avery Dennison Corp. ................................ 1,494,500
110,000 Crompton & Knowles................................... 1,512,500
24,500 Great Lakes Chemical................................. 1,828,313
------------
4,835,313
------------
Computers & Peripherals (1.6%):
34,000 Hewlett Packard Co. ................................. 2,881,500
------------
Electrical Equipment (4.6%):
66,000 DSC Communications Corp. (b)......................... 1,922,250
80,800 General Electric Co. ................................ 6,201,400
------------
8,123,650
------------
Electronic & Electrical (1.7%):
76,700 AMP, Inc. ........................................... 2,991,300
------------
Electronic Computing Equipment (2.4%):
53,500 Cabletron Systems (b)................................ 4,126,188
------------
Entertainment (1.3%):
35,000 Walt Disney Co. ..................................... 2,248,750
------------
Financial Services (1.9%):
58,000 Automatic Data Processing, Inc. ..................... 2,312,750
27,125 United Asset Management Corp. ....................... 1,037,531
------------
3,350,281
------------
Food Distributors (3.7%):
95,000 Albertsons, Inc. .................................... 3,241,875
100,000 Sysco Corp. ......................................... 3,200,000
------------
6,441,875
------------
Food Processing & Packaging (5.8%):
81,500 Pioneer Hi-Bred International, Inc. ................. 4,156,500
132,050 Sara Lee Corp. ...................................... 4,456,688
26,000 Wm. Wrigley Jr. Co. ................................. 1,547,000
------------
10,160,188
------------
COMMON STOCKS, CONTINUED:
Funeral Services (1.9%):
77,600 Service Corp. International.......................... $ 3,365,900
------------
Health Care (2.1%):
65,250 Columbia HCA Healthcare.............................. 3,629,531
------------
Insurance (2.9%):
52,500 American International Group, Inc. .................. 5,085,938
------------
Manufacturing--Capital Goods (1.0%):
27,000 Illinois Tool Works, Inc. ........................... 1,657,125
------------
Medical--Biotechnology (0.1%):
3,600 Stryker Corp. ....................................... 201,150
------------
Medical Supplies (1.9%):
59,000 Medtronic, Inc. ..................................... 3,370,375
------------
Oil & Gas Exploration (1.9%):
29,543 Mobil Corp. ......................................... 3,271,887
------------
Oil--Integrated Companies (1.8%):
43,800 Amoco Corp. ......................................... 3,082,425
------------
Paint, Varnishes, Enamels (1.8%):
75,400 Sherwin Williams Co. ................................ 3,176,225
------------
Pharmaceuticals (12.1%):
101,625 Abbott Laboratories.................................. 4,293,656
48,300 Forest Labs, Inc. (b)................................ 2,608,200
49,009 Johnson & Johnson, Inc. ............................. 4,704,864
57,100 Merck & Co., Inc. ................................... 4,011,275
112,125 Mylan Labs, Inc. .................................... 2,130,375
50,000 Pfizer, Inc. ........................................ 3,437,500
------------
21,185,870
------------
Pollution Control Services & Equipment (0.7%):
41,900 Browning-Ferris Industries, Inc. .................... 1,236,050
------------
Primary Metal & Mineral Production (1.4%):
86,000 Barrick Gold Corp. .................................. 2,526,250
------------
Publishing (1.8%):
66,000 Readers Digest....................................... 3,176,250
------------
Restaurants (1.3%):
45,900 McDonald's Corp. .................................... 2,306,475
------------
</TABLE>
20
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION MARKET VALUE
--------- ---------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail (3.4%):
39,000 Dollar General Corp. ............................... $ 970,125
54,000 Kohl Corp. (b)...................................... 3,044,250
95,000 Wal Mart Stores, Inc. .............................. 1,935,625
------------
5,950,000
------------
Semiconductors (1.7%):
52,900 Intel Corp. ........................................ 2,921,898
------------
Soaps & Cleaning Agents (2.7%):
56,300 Procter & Gamble Co. ............................... 4,722,163
------------
Software & Computer Services (3.5%):
55,200 Broderbund Software, Inc. (b)....................... 2,677,200
38,250 Microsoft (b)....................................... 3,538,125
------------
6,215,325
------------
Telecommunications (2.1%):
116,875 Alltel Corp. ....................................... 3,666,953
------------
Tobacco & Tobacco Products (2.4%):
45,800 Philip Morris Cos., Inc. ........................... 4,259,400
------------
Transportation--Air (1.4%):
96,000 Southwest Airlines Co. ............................. 2,496,000
------------
<CAPTION>
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION MARKET VALUE
--------- ---------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telecommunications (4.4%):
20,000 Bellsouth Corp. .................................... $ 857,500
53,425 Century Telephone Enterprises, Inc. ................ 1,809,772
86,000 MCI Telecommunications Corp. ....................... 2,461,750
46,000 SBC Communications, Inc. ........................... 2,604,750
------------
7,733,772
------------
Total Common Stocks 150,771,543
------------
U.S. TREASURY BILLS (6.2%):
4,000,000 2/8/96.............................................. 3,995,689
7,000,000 3/7/96.............................................. 6,966,156
------------
Total U.S. Treasury Bills 10,961,844
------------
UNIT INVESTMENT TRUSTS (4.2%):
116,400 S & P 500 Depositary Receipt........................ 7,411,406
------------
Total Unit Investment Trusts 7,411,406
------------
INVESTMENT COMPANIES (3.6%):
6,255,015 Parkstone Prime Obligations Fund (Institutional
Class)............................................. 6,255,015
------------
Total Investment Companies 6,255,015
------------
Total (Cost--$146,616,868) (a) $175,399,809
============
</TABLE>
- ------
Percentages are based on net assets of $175,445,429.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................ $32,389,138
Unrealized deprecia-
tion................ (3,606,198)
-----------
Net unrealized appre-
ciation............. $28,782,941
===========
</TABLE>
(b) Represents non-income producing securities.
21
<PAGE>
PACIFIC CAPITAL FUNDS
U.S. TREASURY SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY BONDS (67.3%):
2,150,000 7.63%, 2/15/07.......................................... $ 2,369,257
7,800,000 7.25%, 5/15/16.......................................... 8,844,732
520,000 8.00%, 11/15/21......................................... 645,908
3,200,000 7.13%, 2/15/23.......................................... 3,626,976
3,630,000 6.25%, 8/15/23.......................................... 3,697,191
-----------
Total U.S. Treasury Bonds 19,184,064
-----------
U.S. TREASURY NOTES (29.9%):
3,000,000 7.13%, 2/29/00.......................................... 3,210,660
4,160,000 7.75%, 2/15/01.......................................... 4,615,062
650,000 6.50%, 8/15/05.......................................... 692,263
-----------
Total U.S Treasury Notes 8,517,985
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (0.6%):
166,049 Parkstone Treasury Fund
(Institutional Class).................................. $ 166,049
-----------
Total Investment Companies 166,049
-----------
Total (Cost--$24,633,332)(a) $27,868,098
===========
</TABLE>
- ------
Percentages are based on net assets of $28,504,251.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax reporting
of $55,551. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $3,179,215
Unrealized deprecia-
tion................. 0
----------
Net unrealized appre-
ciation.............. $3,179,215
==========
</TABLE>
22
<PAGE>
PACIFIC CAPITAL FUNDS
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY NOTES (97.5%):
850,000 5.13%, 2/28/98......................................... $ 853,018
1,000,000 5.13%, 11/30/98........................................ 1,002,390
1,875,000 5.13%, 12/31/98........................................ 1,879,688
400,000 5.88%, 3/31/99......................................... 409,508
1,050,000 6.50%, 4/30/99......................................... 1,093,995
600,000 6.75%, 6/30/99......................................... 630,426
651,000 7.13%, 9/30/99......................................... 693,582
1,000,000 7.88%, 11/15/99........................................ 1,092,240
5,275,000 6.25%, 5/31/00......................................... 5,484,840
1,950,000 6.13%, 7/31/00......................................... 2,019,167
1,700,000 5.63%, 11/30/00........................................ 1,726,741
1,900,000 5.50%, 12/31/00........................................ 1,920,235
1,800,000 6.25%, 2/15/03......................................... 1,883,178
-----------
Total U.S. Treasury Notes 20,689,006
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (1.0%):
206,424 Parkstone Treasury
Fund (Institutional Class)............................ $ 206,424
-----------
Total Investment Companies 206,424
-----------
Total (Cost--$20,191,003)(a) $20,895,430
===========
</TABLE>
- ------
Percentages are based on net assets of $21,204,666.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $705,555
Unrealized depreciation. (1,127)
--------
Net unrealized apprecia-
tion................... $704,427
========
</TABLE>
23
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
COMMERCIAL PAPER (2.4%):
Financial Services (2.4%):
1,500,000 Ford Motor Credit, 5.60%, 2/12/96...................... $1,500,000
----------
Total Commercial Paper 1,500,000
----------
COMMON STOCKS (94.4%):
Aerospace/Defense (0.9%):
7,481 Boeing Co.............................................. 580,713
----------
Automotive Parts (1.7%):
29,000 Echlin, Inc. .......................................... 1,069,375
----------
Banking (6.2%):
16,000 BankAmerica Corp. ..................................... 1,078,000
13,325 BayBanks, Inc. ........................................ 1,299,187
33,504 Wachovia Corp. ........................................ 1,499,304
----------
3,876,491
----------
Beverages (4.5%):
19,900 Anheuser Busch Co., Inc. .............................. 1,383,050
24,229 Pepsico, Inc. ......................................... 1,444,654
----------
2,827,704
----------
Chemicals (3.7%):
87,250 Crompton & Knowles..................................... 1,199,687
15,019 E.I. Du Pont De Nemours................................ 1,154,586
----------
2,354,273
----------
Computers & Peripherals (1.8%):
13,444 Hewlett Packard Co..................................... 1,139,379
----------
Containers--Metal, Glass, Paper, Plastic (1.6%):
36,225 Bemis, Inc............................................. 1,023,356
----------
Electrical Equipment (3.6%):
20,825 DSC Communications Corp. (b)........................... 606,528
21,383 General Electric Co.................................... 1,641,145
----------
2,247,673
----------
Electronic & Electrical (5.2%):
39,009 AMP, Inc............................................... 1,521,351
29,523 Raytheon Co............................................ 1,450,317
5,975 Texas Instruments Inc. ................................ 277,838
----------
3,249,506
----------
COMMON STOCKS, CONTINUED:
Entertainment (1.2%):
11,449 Walt Disney Co......................................... $ 735,598
----------
Financial Services (1.6%):
13,306 Student Loan Marketing Assoc........................... 979,654
----------
Food Distributors (0.7%):
13,761 Albertsons, Inc........................................ 469,594
----------
Food Processing & Packaging (2.8%):
53,025 Hormel Foods Corp...................................... 1,292,484
7,875 Wm. Wrigley Jr. Co..................................... 468,563
----------
1,761,047
----------
Funeral Services (1.0%):
14,800 Service Corp. International............................ 641,950
----------
Health Care (1.1%):
13,000 Columbia HCA Healthcare................................ 723,125
----------
Heavy Machinery--Industrial, Farm, Construction (2.0%):
19,050 Harnischfeger Industries, Inc. ........................ 645,319
15,450 Ingersoll Rand Co. .................................... 619,931
----------
1,265,250
----------
Insurance (3.9%):
11,650 Chubb Corp. ........................................... 1,208,687
18,600 Travelers, Inc. ....................................... 1,222,950
----------
2,431,637
----------
Medical Supplies (1.4%):
14,825 Medtronic, Inc. ....................................... 846,878
----------
Oil & Gas Exploration, Production & Services (4.6%):
17,925 Amoco Corp. ........................................... 1,261,472
37,000 Phillips Petroleum Co. ................................ 1,207,125
8,925 Williams Co. Inc. ..................................... 420,591
----------
2,889,188
----------
Oil--Integrated Companies (4.1%):
11,884 Mobil Corp. ........................................... 1,316,153
15,500 Exxon Corp............................................. 1,243,875
----------
2,560,028
----------
Oilfield Equipment & Services (1.0%):
8,704 Schlumberger Limited................................... 610,368
----------
</TABLE>
24
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Paint, Varnishes, Enamels (0.8%):
12,500 Sherwin Williams Co.................................. $ 526,563
-----------
Pharmaceuticals (8.1%):
26,458 Abbott Laboratories.................................. 1,117,851
8,924 American Home Products Corp.......................... 910,248
12,655 Johnson & Johnson, Inc............................... 1,214,880
29,350 Mylan Labs, Inc...................................... 557,650
19,000 Pfizer, Inc.......................................... 1,306,250
-----------
5,106,879
-----------
Pollution Control Services & Equipment (0.9%):
19,850 Browning-Ferris Industries, Inc. .................... 585,575
-----------
Primary Metal & Mineral Production (1.7%):
17,250 Barrick Gold Corp.................................... 506,719
9,650 Nucor Corp........................................... 560,906
-----------
1,067,625
-----------
Publishing, Except Newspaper (2.0%):
13,850 McGraw Hill, Inc. ................................... 1,232,650
-----------
Restaurants (0.8%):
24,000 Wendy's International................................ 495,000
-----------
Retail (4.5%):
29,000 Dollar General Corp.................................. 721,375
28,859 May Department Stores................................ 1,284,226
24,450 Walgreen Co.......................................... 852,694
-----------
2,858,294
-----------
Semiconductors (1.7%):
19,000 Intel Corp........................................... 1,049,453
-----------
Shoes, Leather Goods, Clothing Accessories (0.6%):
5,302 Nike, Inc............................................ 369,815
-----------
Soaps & Cleaning Agents (1.9%):
14,375 Procter & Gamble Co.................................. 1,205,703
-----------
COMMON STOCKS, CONTINUED:
Software & Computer Services (3.0%):
18,000 Broderbund Software, Inc. (b)........................ $ 873,000
14,632 Computer Associates International, Inc............... 1,000,463
-----------
1,873,463
-----------
Tobacco & Tobacco Products (1.7%):
11,762 Philip Morris Cos., Inc.............................. 1,093,866
-----------
Transportation (1.0%):
16,950 Illinois Central Corp................................ 639,863
-----------
Transportation, Leasing & Trucking (0.6%):
16,225 Comair Holdings, Inc................................. 399,541
-----------
Utilities--Electric (3.8%):
47,525 Southern Co.......................................... 1,205,947
38,439 Wisconsin Energy Corp. .............................. 1,210,828
-----------
2,416,775
-----------
Utilities--Telecommunications (6.7%):
17,900 Century Telephone Enterprises, Inc................... 606,363
40,375 Frontier Corp........................................ 1,201,156
26,336 GTE Corp. ........................................... 1,211,456
20,875 SBC Communications................................... 1,182,046
-----------
4,201,021
-----------
Total Common Stocks 59,404,873
-----------
INVESTMENT COMPANIES (3.2%):
1,997,219 Parkstone Prime Obligations Fund (Institutional
Class).............................................. 1,997,219
-----------
Total Investment Companies 1,997,219
-----------
Total (Cost--$55,283,298) (a) $62,902,092
===========
</TABLE>
- ------
Percentages are based on net assets of $62,895,899.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $8,556,393
Unrealized deprecia-
tion................. (937,599)
----------
Net unrealized appre-
ciation.............. $7,618,794
==========
</TABLE>
25
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ----------
<C> <S> <C>
COMMERCIAL PAPER (2.1%):
Gas Utility (2.1%):
3,000,000 Consolidated Natural Gas,
5.45%, 2/13/96....................................... $2,994,550
----------
Total Commercial Paper 2,994,550
----------
CORPORATE BONDS (41.0%):
Aircraft (0.6%):
700,000 Boeing Co., 7.95%, 8/15/24............................ 825,125
----------
Banking (8.1%):
5,000,000 Dresdner Bank-NY,
6.63%, 9/15/05....................................... 5,187,500
700,000 Interamerica Development Bank, 8.50%, 3/15/11......... 847,875
975,000 NBD Banks N.A., 6.25%, 8/15/03........................ 982,313
700,000 NBD Bank Corp, 8.25%, 11/1/24......................... 844,375
2,000,000 Swiss Bank Corp., 6.75%, 7/15/05...................... 2,097,500
1,600,000 Wachovia Corp., 6.38%, 2/1/09......................... 1,626,000
----------
11,585,563
----------
Banking--Foreign (1.4%):
2,000,000 IBRD Global Bond,
6.38%, 7/21/05....................................... 2,080,000
----------
Electric Service (2.4%):
3,500,000 National Rural Utility,
5.95%, 1/15/03....................................... 3,504,375
----------
Financial Services (13.0%):
3,000,000 Abbey, 6.69%, 10/17/05................................ 3,108,750
5,000,000 Associates Corp. 6.38%, 11/15/05...................... 5,075,000
500,000 General Electric Capital Corp., 8.10%, 1/26/99........ 534,375
1,000,000 General Electric Capital Corp., 8.24%, 11/1/04........ 1,146,250
500,000 General Electric Capital Corp., 8.75%, 5/21/07........ 607,500
350,000 MBIA Inc., 8.20%, 10/1/22............................. 388,063
1,500,000 MBIA, 7.00%, 12/15/25................................. 1,530,000
700,000 Merrill Lynch & Co. Inc.,
7.00%, 4/27/08....................................... 731,500
4,000,000 Norwest Financial Inc.,
7.50%, 4/15/05....................................... 4,390,000
1,000,000 St. Paul Cos., 7.29%, 8/28/07......................... 1,067,500
----------
18,578,938
----------
CORPORATE BONDS, CONTINUED:
Gas & Electric Utility (1.1%):
1,500,000 Duke Power Co., 8.00%, 11/1/99........................ $1,625,625
----------
Industrial Goods & Services (6.5%):
1,050,000 Amoco Canada, 7.95%, 10/1/22.......................... 1,183,875
5,000,000 Emerson Electric, 6.30%, 11/1/05...................... 5,106,250
800,000 Johnson & Johnson,
8.72%, 11/1/24....................................... 961,000
350,000 Societe Nationale Elf Aquitaine, 8.00%, 10/15/01...... 388,063
1,400,000 Wal-Mart Stores, 8.00%, 9/15/06....................... 1,606,500
----------
9,245,688
----------
Oil & Gas Exploration & Production Services (1.5%):
2,000,000 Shell Oil Co., 6.70%, 8/15/02......................... 2,100,000
----------
Restaurants (3.6%):
5,000,000 McDonald's Corp., 6.63%, 9/1/05....................... 5,187,500
----------
Telecommunications (2.8%):
795,000 Bellsouth Telecommunications, 7.00%, 2/1/05........... 850,650
3,000,000 Bellsouth Telecommunications, 6.50%, 6/15/05.......... 3,116,250
----------
3,966,900
----------
Total Corporate Bonds 58,699,713
----------
U.S. TREASURY NOTES (27.8%):
1,000,000 6.00%, 11/30/97....................................... 1,018,420
20,000,000 6.25%, 2/15/03........................................ 20,924,200
6,385,000 7.25%, 5/15/04........................................ 7,088,563
1,000,000 7.88%, 11/15/04....................................... 1,156,830
8,000,000 6.50%, 5/15/05........................................ 8,509,120
1,000,000 5.88%, 11/15/05....................................... 1,021,910
----------
Total U.S. Treasury Notes 39,719,043
----------
U.S. TREASURY BONDS (21.8%):
27,450,000 7.25%, 5/15/16........................................ 31,126,653
----------
Total U.S. Treasury Bonds 31,126,653
----------
U.S. GOVERNMENT AGENCIES (5.6%):
Federal Home Loan Mortgage Corp.:
1,000,000 7.23%, 5/17/05........................................ 1,045,640
</TABLE>
26
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION MARKET VALUE
--------- ----------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED
Federal National Mortgage Association:
3,000,000 6.05%, 8/15/00....................................... $ 3,052,500
1,400,000 7.40%, 7/1/04........................................ 1,547,392
Tennessee Valley Authority:
1,500,000 6.38%, 6/15/05....................................... 1,558,125
750,000 8.63%, 11/15/29...................................... 835,313
------------
Total U.S. Government Agencies 8,038,970
------------
INVESTMENT COMPANIES (0.1%):
136,136 Parkstone Prime Obligations Fund
(Institutional Class)............................... $ 136,136
------------
Total Investment Companies 136,136
------------
Total (Cost--$132,904,034) (a) $140,715,064
============
</TABLE>
- ------
Percentages are based on net assets of $142,981,754.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $7,857,161
Unrealized deprecia-
tion................. (46,131)
----------
Net unrealized appre-
ciation.............. $7,811,030
==========
</TABLE>
27
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS (99.2%):
California (2.7%):
3,000,000 Metropolitan Water District, Southern California,
5.75%, 7/1/21..................................... $ 3,086,250
2,565,000 Northern California Transmission, Oregon
Transmission Project, Series A, 7.00%, 5/1/13..... 3,084,413
1,735,000 San Francisco, Bay Area Rapid Transit, District
Sales Tax Revenue, 5.50%, 7/1/15.................. 1,754,519
------------
7,925,181
------------
Colorado (0.3%):
1,000,000 Adams & Arapahoe County,
5.35%, 12/1/15.................................... 1,001,250
------------
Connecticut (0.4%):
1,000,000 Connecticut State, Special Tax Obligation Revenue,
6.25%, 10/1/14.................................... 1,083,750
------------
Florida (9.9%):
1,000,000 Dade County, Water & Sewer,
5.50%, 10/1/15.................................... 1,012,500
3,000,000 Dade County, Water & Sewer,
5.50%, 10/1/25.................................... 3,007,500
3,000,000 Florida State Board of Education,
5.50%, 6/1/17..................................... 3,015,000
6,205,000 Florida State Board of Education,
Series E, 5.75%, 6/1/19........................... 6,321,344
2,000,000 Florida State Department, General Services
Division,
5.70%, 9/1/20..................................... 2,050,000
2,000,000 Florida State Division, Bond Finance Department,
General Services Environmental Revenue Department,
5.75%, 7/1/13..................................... 2,070,000
3,500,000 Florida State Turnpike Authority Revenue,
Department of Transportation, 5.50%, 7/1/17....... 3,539,375
2,000,000 Florida State Turnpike Authority Revenue, 5.50%,
7/1/21............................................ 2,015,000
2,875,000 Orange County, Public Tax Service,
6.00%, 10/1/24.................................... 3,036,719
MUNICIPAL BONDS, CONTINUED:
Florida, continued:
2,565,000 Orlando, Utilities Community Water & Electric
Revenue Refunding, Series D, 6.75%, 10/1/17....... $ 3,074,794
------------
29,142,231
------------
Georgia (2.9%):
1,285,000 Georgia State Municipal Electric Authority Revenue
Series B, 6.13%, 1/1/14........................... 1,362,100
1,605,000 Metropolitan Atlanta Rapid Transportation
Authority, Georgia Sales Tax Revenue, 6.25%,
7/1/11............................................ 1,793,588
4,690,000 Municipal Electric Authority, Georgia, Third
Crossover, 6.60%, 1/1/18.......................... 5,457,988
------------
8,613,675
------------
Hawaii (55.0%):
2,890,000 Hawaii Airport Systems, 7.50%, 7/1/04.............. 3,003,548
1,890,000 Hawaii Airport Systems Revenue,
7.00%, 7/1/18..................................... 2,109,713
1,305,000 Hawaii County, Series A, 7.30%, 6/1/10............. 1,486,069
415,000 Hawaii County, Refunding & Improvement,
Series A, 5.60%, 5/1/13........................... 439,900
320,000 Hawaii Municipal Bond, 7.50%, 7/1/09............... 362,000
4,490,000 Hawaii Municipal Bond, Series B, 6.13%, 2/1/10..... 4,922,163
740,000 Hawaii Municipal Bond, 7.00%, 7/1/10............... 831,575
510,000 Hawaii Municipal Bond, 7.38%, 7/1/11............... 573,113
10,585,000 Hawaii Municipal Bond, 6.90%, 7/1/12, MBIA......... 12,357,988
640,000 Hawaii Municipal Bond, 7.30%, 7/1/20............... 714,400
2,320,000 Hawaii Municipal Bond, 7.50%, 7/1/20............... 2,607,100
</TABLE>
28
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
1,500,000 Hawaii Municipal Bond, Second Series, 6.75%, 7/1/21... $ 1,635,000
1,385,000 Hawaii Department Budget & Finance, 6.90%, 7/1/04..... 1,492,338
1,170,000 Hawaii Department Budget & Finance, 6.30%, 7/1/08..... 1,234,350
3,680,000 Hawaii Department Budget & Finance, 7.00%, 7/1/08..... 3,965,200
320,000 Hawaii Department Budget & Finance, 6.13%, 7/1/11..... 341,200
2,535,000 Hawaii Department Budget & Finance, 6.88%, 4/1/12..... 2,649,075
965,000 Hawaii Department Budget & Finance, Maui, 6.88%,
4/1/12............................................... 1,008,425
1,605,000 Hawaii Department Budget & Finance, 6.50%, 7/1/12..... 1,667,194
2,535,000 Hawaii Department Budget & Finance, 6.40%, 7/1/13..... 2,642,738
2,820,000 Hawaii Department Budget & Finance, 7.20%, 12/1/14.... 3,154,875
425,000 Hawaii Department Budget & Finance, 7.38%, 9/1/18..... 437,045
1,285,000 Hawaii Department Budget & Finance, 6.25%, 3/1/21..... 1,347,644
3,205,000 Hawaii Department Budget & Finance, 6.60%, 7/1/22..... 3,401,306
1,475,000 Hawaii Department Budget & Finance, 6.55%, 12/1/22.... 1,609,594
3,205,000 Hawaii Department Budget & Finance, 5.45%, 11/1/23.... 3,160,931
7,000,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Hawaiian Electric Co., 6.60%,
1/1/25............................................... 7,708,750
965,000 Hawaii Department of Transportation, Special
Facilities Revenue, 5.75%, 3/1/13.................... 983,094
5,000,000 Hawaii GO, 6.05%, 1/1/08.............................. 5,400,000
640,000 Hawaii GO, 5.50%, 6/1/08.............................. 666,400
1,345,000 Hawaii GOs, Series B, 6.38%, 2/1/09................... 1,489,588
640,000 Hawaii GO, 5.50%, 6/1/09.............................. 664,800
1,035,000 Hawaii GO, 5.00%, 7/1/09.............................. 1,037,588
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
2,000,000 Hawaii GO, 6.00%, 10/1/09............................. $ 2,220,000
640,000 Hawaii GO, 5.50%, 6/1/10.............................. 663,200
4,000,000 Hawaii GO, Series CK, 5.25%, 9/1/10................... 4,050,000
3,145,000 Hawaii GO, 5.25%, 6/1/13.............................. 3,176,450
1,825,000 Hawaii Harbor Capital Improvement Revenue, 6.10%,
7/1/07............................................... 1,991,531
965,000 Hawaii Harbor Capital Improvement Revenue, 6.20%,
7/1/08............................................... 1,047,025
1,605,000 Hawaii Harbor Capital Improvement Revenue, 7.25%,
7/1/10............................................... 1,791,581
320,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/12............................................... 348,800
2,245,000 Hawaii Harbor Capital Improvement Revenue, 7.00%,
7/1/17............................................... 2,469,500
320,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/19............................................... 347,200
3,205,000 Hawaii Harbor Capital Improvement Revenue, 6.38%,
7/1/24............................................... 3,465,406
1,925,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, 5.70%, 7/1/13...... 1,941,844
1,580,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, 6.90%, 7/1/16...... 1,660,975
4,525,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, 5.85%, 7/1/17...... 4,592,875
2,340,000 Hawaii Housing Finance & Development Corp., 5.70%,
10/1/25.............................................. 2,398,500
3,205,000 Hawaii Housing Finance & Development Corp., 6.00%,
7/1/26............................................... 3,225,031
4,185,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, 7.00%, 7/1/31...... 4,394,250
3,000,000 Honolulu City & County, Series A, 6.00%, 1/1/11....... 3,277,500
</TABLE>
29
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
1,605,000 Honolulu City & County, Series A, 5.75%, 4/1/12..... $ 1,729,388
2,890,000 Honolulu City & County, Series A, 5.75%, 4/1/13..... 3,106,750
1,445,000 Honolulu City & County, Series B, 7.25%, 2/1/08
FGIC............................................... 1,587,694
1,480,000 Honolulu City & County, Series C, 7.15%, 6/1/10..... 1,676,100
1,380,000 Honolulu City & County GO,
5.00%, 11/1/12...................................... 1,357,575
3,000,000 Honolulu City & County GO, Series A, 5.75%, 4/1/11.. 3,191,250
2,565,000 Honolulu City & County Refunding, Series A, 7.35%,
7/1/06............................................. 3,113,269
1,280,000 Honolulu City & County Refunding & Improvement,
Series B, 5.50%, 10/1/11........................... 1,334,400
640,000 Honolulu City & County Refunding & Improvement,
Series B, 5.25%, 10/1/12........................... 655,200
1,055,000 Honolulu City & County Water, 6.00%, 12/1/10........ 1,167,094
1,595,000 Honolulu City & County Water, 6.00%, 12/1/11........ 1,762,475
640,000 Honolulu City & County Water, 6.00%, 12/1/14........ 702,400
410,000 Kauai County, 6.80%, 8/1/98, AMBAC.................. 438,700
565,000 Kauai County, 5.15%, 8/1/00, AMBAC.................. 592,544
320,000 Kauai County, 6.30%, 2/1/01, MBIA................... 327,094
630,000 Kauai County, 5.35%, 8/1/02......................... 673,313
535,000 Kauai County, 7.20%, 8/1/02, AMBAC.................. 609,231
390,000 Kauai County, 6.60%, 2/1/04, MBIA................... 398,970
545,000 Kauai County, 6.60%, 2/1/04, MBIA................... 562,080
695,000 Kauai County, 5.55%, 8/1/04......................... 754,075
220,000 Kauai County Refunding, Series B, 5.55%, 8/1/04,
AMBAC.............................................. 236,500
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
235,000 Kauai County Refunding, Series B, 5.65%, 8/1/05,
AMBAC.............................................. $ 254,975
740,000 Kauai County, 5.65%, 8/1/05......................... 808,450
620,000 Kauai County, 6.70%, 2/1/06, MBIA................... 640,032
780,000 Kauai County, 5.75%, 8/1/06......................... 855,075
250,000 Kauai County, 5.75%, 8/1/06, AMBAC.................. 273,125
710,000 Kauai County, 7.40%, 8/1/06, AMBAC.................. 813,838
690,000 Kauai County, 7.50%, 8/1/08, AMBAC.................. 794,363
925,000 Kauai County, 5.90%, 8/1/09, AMBAC.................. 1,003,625
465,000 Kauai County, 7.00%, 8/1/20, AMBAC.................. 521,963
355,000 Maui County Broad Water, Series A, 6.10%, 12/1/02... 394,050
375,000 Maui County Broad Water, Series A, 6.20%, 12/1/03... 418,125
400,000 Maui County Broad Water, Series A, 6.30%, 12/1/04... 448,500
425,000 Maui County Broad Water, Series A, 6.40%, 12/1/05... 478,656
390,000 Maui County Broad Water, Series A, 6.50%, 12/1/06... 441,188
520,000 Maui County Broad Water, Series A, 6.65%, 12/1/08... 592,150
455,000 Maui County Broad Water, Series A, 6.65%, 12/1/09... 518,131
595,000 Maui County Broad Water, Series A, 6.70%, 12/1/10... 679,044
535,000 Maui County Broad Water, Series A, 6.70%, 12/1/11... 610,569
1,985,000 Maui County, Series A, 6.80%, 12/1/07............... 2,245,425
645,000 Maui County Refunding, 5.25%, 9/1/06................ 668,381
1,025,000 Maui County Refunding, 7.10%, 11/1/08............... 1,068,522
890,000 Maui County Refunding, 5.13%, 12/15/10.............. 891,113
------------
161,561,766
------------
</TABLE>
30
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kansas (1.7%):
2,565,000 Burlington Pollution Control Refunding, Kansas Gas &
Electric Company Project,
7.00%, 6/1/31...................................... $ 2,898,450
2,000,000 Kansas City, Utilities System Revenue Refunding &
Improvement, 6.38%, 9/1/23......................... 2,200,000
------------
5,098,450
------------
Maine (0.7%):
1,925,000 Maine State Turnpike Authority, Turnpike Revenue,
6.00%, 7/1/14...................................... 2,021,250
------------
Massachusetts (2.8%):
3,790,000 Commonwealth of Massachusetts--Series B, 5.50%,
7/1/15............................................. 3,861,063
2,375,000 Massachusetts Health & Educational Finance
Authority,
5.60%, 11/1/16..................................... 2,458,125
805,000 Massachusetts Health & Educational Finance
Authority, Smith College, Series D, 5.75%, 7/1/16.. 833,175
1,000,000 Massachusetts Water Pollution Abatement Trust,
5.70%, 2/1/13...................................... 1,046,250
------------
8,198,613
------------
Michigan (2.4%):
4,000,000 Michigan Environmental Protection Program,
Government Obligation, 5.40%, 11/1/19.............. 3,995,000
1,545,000 Michigan Strategic Obligations Revenue, 6.95%,
5/1/11............................................. 1,830,825
1,250,000 Saline Area Schools, GO,
5.50%, 5/1/15...................................... 1,250,000
------------
7,075,825
------------
Minnesota (0.8%):
2,000,000 North St. Paul, Maplewood, Independent School
District
No. 622 Series A, 6.88%, 2/1/15.................... 2,260,000
------------
New Jersey (1.3%):
2,000,000 New Jersey Wastewater Treatment Trust, Series B,
6.38%, 4/1/14...................................... 2,190,000
1,500,000 South Brunswick Township Board of Education, 6.40%,
8/1/14............................................. 1,629,375
------------
3,819,375
------------
MUNICIPAL BONDS, CONTINUED:
New Mexico (1.5%):
2,000,000 Rio Rancho Water & Waste Water System Revenue,
Series A, 5.90%, 5/15/15........................... $ 2,075,000
2,085,000 Santa Fe Revenue, 6.25%, 6/1/15..................... 2,343,019
------------
4,418,019
------------
North Carolina (1.3%):
3,085,000 North Carolina Easton Municipal Power, 6.50%,
1/1/18............................................. 3,721,281
------------
Ohio (0.8%):
1,120,000 Cleveland Waterworks Revenue, 6.25%, 1/1/16......... 1,191,400
1,000,000 Ohio Water Development Authority, 5.50%, 12/1/15.... 1,006,250
------------
2,197,650
------------
Oregon (2.3%):
3,500,000 Oregon Health Sciences University, 5.25%, 7/1/25.... 3,430,000
1,500,000 Portland Airport Revenue,
5.88%, 7/1/15...................................... 1,573,125
1,605,000 Umatilla County, School District Number 016R,
Pendleton,
6.00%, 7/1/14...................................... 1,703,306
------------
6,706,431
------------
Pennsylvania (1.1%):
3,150,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/15............................ 3,307,500
------------
South Carolina (0.9%):
2,285,000 Piedmont Municipal Power Agency, South Carolina
Electric Refunding, Series A,
6.50%, 1/1/14...................................... 2,622,038
------------
Tennessee (3.3%):
1,000,000 Johnson County, School Sales Tax, 6.70%, 5/1/21..... 1,107,500
1,965,000 Shelby County, School, Series B, 6.00%, 3/1/19...... 2,046,056
6,300,000 Shelby County Refunding,
Series A, 5.63%, 4/1/15............................ 6,496,875
------------
9,650,431
------------
</TABLE>
31
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas (2.2%):
1,520,000 Harris County Certificates of Obligation, 6.00%,
10/1/15............................................ $ 1,615,000
1,280,000 Texas Public Financial Authority, Series A, 6.00%,
10/1/12............................................ 1,340,800
1,400,000 Texas State Series Correction, 5.75%, 8/1/18........ 1,426,250
2,000,000 Texas State, Refunding, Public Finance Authority,
Series A, 5.95%, 10/1/15........................... 2,085,000
------------
6,467,050
------------
MUNICIPAL BONDS, CONTINUED:
Virginia (4.9%):
1,925,000 Fairfax County Refunding, Series C, 5.40%, 5/1/11... $ 1,977,938
2,995,000 Fairfax County 5.50%, 6/1/14........................ 3,047,413
1,000,000 Fairfax County, Water Authority, 6.00%, 4/1/22...... 1,055,000
2,750,000 Norfolk Water Revenue, 5.75%, 11/1/13............... 2,853,125
1,750,000 Richmond Revenue, 5.20%, 1/15/14.................... 1,752,188
3,500,000 Commonwealth of Virginia Public School Authority,
5.63%, 6/1/15...................................... 3,578,750
------------
14,264,413
------------
Total Municipal Bonds 291,156,178
------------
Total (Cost--$268,856,180)(a) $291,156,178
============
</TABLE>
- ------
Percentages are based on net assets of $293,620,100.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation........ $22,391,970
Unrealized
depreciation........ (91,972)
-----------
Net unrealized
appreciation........ $22,299,998
===========
</TABLE>
AMBACInsured by AMBAC Indemnity Corporation
FGICInsured by Financial Guaranty Insurance Corporation
GOGeneral Obligation
MBIAInsured by Municipal Bond Insurance Association
32
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (14.9%):
Florida (2.6%):
1,000,000 Dade County, Aviation Revenue, 5.75%, 10/1/99......... $ 1,056,250
Hawaii (7.1%):
1,050,000 Hawaii State Airports System, 5.30%, 7/1/99........... 1,088,063
1,000,000 Hawaii State Airports Systems, Revenue Refunding,
5.15%, 7/1/98........................................ 1,027,500
230,000 Hawaii State Harbor Capital Improvements, 5.50%,
7/1/97............................................... 235,175
550,000 Hawaii State Housing Finance & Development, Series A,
4.40%, 7/1/98........................................ 552,063
-----------
2,902,800
-----------
Texas (5.2%):
550,000 Brazos, Texas Higher Education Authority, Series A-2,
5.60%, 6/1/99........................................ 561,000
1,500,000 Texas State College Student Loan, 5.10%, 8/1/99....... 1,533,750
-----------
2,094,750
-----------
Total Alternative Minimum Tax Paper 6,053,800
-----------
MUNICIPAL BONDS (84.7%):
Alaska (2.5%):
1,000,000 Alaska State Housing Finance Corp., 4.60%, 6/1/00..... 1,011,250
-----------
Arizona (8.3%):
750,000 Arizona State Transportation Board, 5.50%, 1/1/00..... 792,188
1,000,000 Phoenix, 5.70%, 7/1/99................................ 1,057,500
1,500,000 Salt River Project, Arizona Agricultural, 4.45%,
1/1/00............................................... 1,520,625
-----------
3,370,313
-----------
Hawaii (49.2%):
550,000 Hawaii County, Series A, 4.35%, 5/1/98................ 555,500
650,000 Hawaii County Refunding & Improvement, Series A,
4.80%, 5/1/00........................................ 669,500
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
1,500,000 Hawaii State Airports System Revenue Refunding, 5.40%,
7/1/99................................................ $ 1,565,625
2,500,000 Hawaii State Airports System Revenue Refunding, 5.55%,
7/1/00, MBIA.......................................... 2,640,625
115,000 Hawaii State Community Development Authority, Special
Tax Assessment, 3.95%, 7/1/96......................... 115,022
150,000 Hawaii State Community Development Authority, Special
Tax Assessment, 3.95%, 7/1/96......................... 150,029
115,000 Hawaii State Community Development Authority, Special
Tax Assessment, 4.20%, 7/1/97......................... 115,863
155,000 Hawaii State Community Development Authority, Special
Tax Assessment, 4.20%, 7/1/97......................... 156,163
120,000 Hawaii State Community Development Authority, 4.45%,
7/1/98................................................ 121,800
165,000 Hawaii State Community Development Authority, 4.45%,
7/1/98................................................ 167,475
330,000 Hawaii State Department Budget, 5.25%, 7/1/97.......... 337,013
3,000,000 Hawaii State General Obligation, 5.50%, 1/1/00......... 3,142,500
2,500,000 Hawaii State General Obligation, Series Cd, 4.60%,
2/1/00................................................ 2,540,625
1,500,000 Hawaii State General Obligation, Series Ck, 5.00%,
9/1/00, FGIC, TCRS.................................... 1,569,375
700,000 Honolulu, City & County, 5.10%, 1/1/00................. 723,625
1,000,000 Honolulu, City & County, 4.40%, 11/1/00................ 1,012,500
550,000 Honolulu, City & County, Series B, 5.00%, 6/1/99, FDIC,
TCRS.................................................. 567,188
1,235,000 Honolulu, City & County General Obligation, 5.50%,
3/1/99................................................ 1,289,031
750,000 Honolulu, City & County General Obligation, 5.10%,
6/1/00................................................ 775,313
375,000 Honolulu, City & County Improvement District, 5.85%,
10/15/97.............................................. 389,063
370,000 Honolulu, City & County Improvement District, 6.05%,
10/15/98.............................................. 392,200
</TABLE>
33
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- ----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
370,000 Honolulu, City & County Improvement District, 6.20%,
10/15/99.............................................. $ 398,675
620,000 Maui County, Hawaii General Obligation, 5.35%, 6/1/00.. 648,675
----------
20,043,382
----------
Massachusetts (4.6%):
1,765,000 Commonwealth of Massachusetts, Series D, 5.13%,
11/1/00............................................... 1,844,425
----------
Minnesota (1.8%):
700,000 Minnesota State, 5.00%, 8/1/00......................... 729,750
----------
New Jersey (2.5%):
1,000,000 New Jersey State Transit Authority, 4.50%, 6/15/00..... 1,013,750
----------
Ohio (5.0%):
2,000,000 Ohio State Water Development Pollution Facilities,
4.70%, 6/1/00......................................... 2,040,000
----------
Oregon (3.9%):
560,000 Oregon Health Science University Revenue, Series A,
4.25%, 7/1/00......................................... 562,100
1,000,000 Oregon State General Obligation, Higher Education,
Series C, 4.60%, 3/1/00............................... 1,026,250
----------
1,588,350
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Puerto Rico (2.5%):
1,000,000 University Of Puerto Rico, University Revenue
Refunding, Series N, 4.63%, 6/1/00................... $ 1,016,250
-----------
Rhode Island (3.2%):
1,250,000 Rhode Island Housing & Mortgage Financial Corp.,
5.00%, 7/1/00........................................ 1,292,188
-----------
Texas (1.2%):
500,000 Tarrant County, Texas Health Facilities Development,
4.75%, 9/1/00........................................ 508,125
-----------
Total Municipal Bonds 34,457,782
-----------
INVESTMENT COMPANIES (0.4%):
186,748 Parkstone Tax Free Fund
(Institutional Class)................................ 186,748
-----------
Total Investment Companies 186,748
-----------
Total (Cost--$39,709,891)(a) $40,698,329
===========
</TABLE>
- --------
Percentages are based on net assets of $40,701,962.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $988,438
Unrealized depreciation.
--------
Net unrealized apprecia-
tion................... $988,438
========
</TABLE>
34
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ----------------------------------- ----------
<C> <S> <C>
COMMON STOCKS (86.6%):
Hong Kong (32.2%):
Consumer Goods (2.6%):
500,000 Tingyi Holdings Corp. ............. $ 108,635
----------
Diversified--Congolomerates, Holding
Companies (4.3%):
80,000 First Pacific Co., Limited......... 101,393
12,000 Hutchison Whampoa, Limited......... 77,984
----------
179,377
----------
Electrical Equipment (1.3%):
250,000 Kingboard Chemical Holdings,
Limited........................... 52,701
----------
Financial Services (1.9%):
4,800 HSBC Holdings, PLC(b)................ 79,459
----------
Food Distributors & Wholesalers (5.3%):
513,600 China Apollo Holdings, Limited..... 120,225
200,000 NG Fung Hong, Limited.............. 102,169
----------
222,394
----------
Hotels & Motels (2.4%):
76,000 Shrangri-La, Asia Limited.......... 103,695
----------
Packaging & Containers (5.5%):
200,000 Floren Group, Limited(b)............. 162,953
175,000 MC Packaging....................... 66,765
----------
229,718
----------
Photography (4.0%):
300,000 China-Hong Kong Photo Products
Holdings.......................... 170,713
----------
Real Estate (4.0%):
140,000 Amoy Properties, Limited(b).......... 170,195
----------
Shoes, Leather Goods, Clothing Accessories
(0.9%):
150,000 Yue Yuen Industrial, Limited....... 38,022
----------
Total Hong Kong 1,354,909
----------
Indonesia (7.6%):
Construction (3.2%):
35,000 Semen Gresik (Persero)(b)............ 134,468
----------
Technology (1.3%):
40,000 Bukaka Teknik Utama................ 56,756
----------
Telecommunications (1.0%):
10,000 Indonesian Satellite............... 40,166
----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Tobacco & Tobacco Products (2.1%):
7,500 Gudang Garam................ $ 89,391
----------
Total Indonesia 320,781
----------
Malaysia (17.0%):
Building Materials (2.8%):
30,000 Sungei Way Holdings......... 116,038
----------
Chemicals (2.1%):
30,000 Metacorp.................... 86,736
----------
Engineering, Industrial Construction
(1.5%):
20,000 O'Connor Engineering........ 61,731
----------
Financial Services (2.2%):
40,000 Kwong Yik Bank.............. 93,768
----------
Holding Companies (2.6%):
30,000 Road Builder (M) Holdings... 111,350
----------
Packaging & Containers (2.7%):
25,000 Kian Joo Can Factory........ 113,303
----------
Oil & Gas Production (3.1%):
35,000 Petrogas.................... 131,276
----------
Total Malaysia 714,202
----------
Philippines (0.9%):
Real Estate (0.9%):
50,000 C & P Homes, Inc............ 39,157
----------
Total Philippines 39,157
----------
Singapore (4.5%):
Food Processing & Packaging (1.2%):
40,000 QAF Limited(b)................ 52,124
----------
Machine Tools (2.5%):
150,000 Uraco Holdings, Limited..... 106,713
----------
Maritime--Shipping & Shipbuilding
(0.8%):
10,000 Sembawang Maritime, Limited. 32,119
----------
Total Singapore 190,956
----------
Thailand (18.5%):
Construction (1.6%):
6,000 Italian--Thai Development
PLC........................ 68,201
----------
Financial Services (10.8%):
13,000 Finance One................. 110,826
15,000 Krung Thai Bank Public Co.(b). 81,107
</TABLE>
35
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ------------------------------ ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
10,000 National Finance & Securities. $ 71,042
8,000 Phatra Thanakit Pub Co........ 89,671
18,000 Thai Military Bank Public Co.. 100,880
----------
453,526
----------
Oil & Gas Exploration, Production &
Services (2.9%):
10,500 PTT Exploration & Production.. 121,009
----------
Real Estate (2.2%):
5,000 Land & House.................. 92,750
----------
Shipping (1.0%):
15,000 Thoresen Thai(b)................ 40,849
----------
Total Thailand 776,335
----------
United States (5.9%):
Automobiles (1.4%):
4,000 Hyundai ADR................... 58,000
----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
------ ---------------------------------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical Equipment (4.5%):
1,854 Samsung Electronics ADR................................... $ 107,068
6,000 Silicone Precision ADR.................................... 80,640
----------
187,708
----------
Total United States 245,708
----------
Total Common Stocks 3,642,048
----------
INVESTMENT COMPANIES (8.7%):
366,429 Bank of California Money Market Fund 366,429
----------
Total Investment Companies 366,429
----------
RIGHTS/WARRANTS (2.7%):
Singapore (2.7%):
15,000 Fraser & Neave LTD-1998 113,052
----------
Total Rights/Warrants 113,052
----------
Total (Cost--$3,602,219)(a) $4,121,529
==========
</TABLE>
FORWARD CURRENCY CONTRACTS:
<TABLE>
<CAPTION>
CONTRACT
DELIVERY CONTRACT VALUE (U.S.
DATE PRICE DOLLARS) DEPRECIATION
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
CURRENCY SOLD:
Hong Kong Dollar..................... 02/01/96 7.728 $109,736 $(61)
-------- ----
$109,736 $(61)
======== ====
</TABLE>
- ------
Percentages are based on net assets of $4,207,122.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $550,051
Unrealized depreciation. (30,742)
--------
Net unrealized apprecia-
tion................... $519,310
========
</TABLE>
(b) Represents non-income producing security.
ADRAmerican Depository Receipt
36
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1996
(UNAUDITED)
Continued
1.ORGANIZATION
Pacific Capital Funds (the "Trust") was organized on October 30, 1992, and
is registered under the Investment Company Act of 1940, as amended, ("the
1940 Act"), as a diversified, open-end management investment company
established as a Massachusetts business trust. The Trust currently consists
of the following investment portfolios (referred to individually as a "Fund"
and collectively as the "Funds"): Growth Stock Fund, U.S. Treasury
Securities Fund, Short Intermediate U.S. Treasury Securities Fund, Growth
and Income Fund, Diversified Fixed Income Fund, Tax-Free Securities Fund,
Tax-Free Short Intermediate Securities Fund, and New Asia Growth Fund. The
Trust is authorized to issue for each Fund an unlimited number of shares
without par value in two classes of shares: the Retail Class and the
Institutional Class. The Institutional Class commenced operations on October
14, 1994 when the Trust identified those Institutional Shareholders that
were part of the Retail Class (as of October 13, 1994) and transferred these
Shareholders into the Institutional Class. Retail Class shares of the Funds
are subject to initial sales charges, imposed at the time of purchase, in
accordance with the Funds' prospectuses. Each class of shares for each Fund
has identical rights and privileges except with respect to distribution
(12b-1) fees paid by Retail Class shares, voting rights on matters affecting
a single class of shares and the exchange privileges of each class of
shares.
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The preparation
of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
SECURITIES VALUATION
Investments of the Funds for which the primary market is a national
securities exchange or the National Association of Securities Dealers
Automated Quotation National Market System are valued at last reported sale
price on the day of valuation. In the absence of any sale of such
securities on the valuation date, the valuations are based on latest quoted
bid prices. Securities, including thinly traded, unlisted, and restricted
securities, for which market quotations are not readily available, are
valued at fair market value by the investment adviser under the supervision
of the Fund's Board of Trustees. Money market instruments and other debt
securities maturing in 60 days or less are valued at amortized cost, which
approximates market value. The differences between the cost and market
values of securities are reflected as either unrealized appreciation or
depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or accretion of discount. Dividend income is recorded on the ex-
dividend date. Gains or losses realized from sales of securities are
determined by comparing the identified cost of the security lot sold with
the net sales proceeds.
FOREIGN CURRENCY TRANSLATION
The market value of investment securities, other assets, and liabilities of
the New Asia Growth Fund denominated in a foreign currency are translated
into U.S. dollars at the current exchange rate. Purchases and sales of
securities, income receipts and expense payments are translated into U.S.
dollars at the exchange rate on the dates of the transactions.
37
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
The New Asia Growth Fund isolates that portion of the results of operations
resulting from changes in currency exchange rates from the fluctuation
arising from changes in market prices of securities held.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of portfolio securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and
liabilities recorded and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the value of assets and liabilities, including investments
in securities, resulting from changes in currency exchange rates.
RISKS ASSOCIATED WITH FOREIGN SECURITIES AND CURRENCIES
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers.
Such risks include future political and economic developments, and the
possible imposition of exchange controls or other foreign governmental laws
and restrictions. In addition, with respect to certain countries, there is
the possibility of expropriation of assets, confiscatory taxation,
political or social instability or diplomatic developments which could
adversely affect investments in those countries.
Certain countries may also impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on
investments in issuers of industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available
to the New Asia Growth Fund and result in a lack of liquidity and a high
price volatility with respect to securities of issuers from developing
countries.
Withholding taxes on foreign dividends have been provided for in accordance
with the New Asia Growth Fund's understanding of applicable countries' tax
rules and rates.
FORWARD CURRENCY EXCHANGE CONTRACTS
The New Asia Growth Fund may from time to time enter into foreign currency
exchange transactions to convert to and from different foreign currencies
and to convert foreign currencies to and from the U.S. dollar. The Fund may
enter into currency exchange transactions on a spot (i.e., cash) basis at
the spot rate prevailing in the foreign currency exchange market, or use
forward currency contracts to purchase or to sell foreign currencies. A
forward foreign currency contract is an obligation by the Fund to purchase
or to sell a specific currency at a future date at a price set at the time
of the contract. The Fund may use forward foreign currency exchange
contracts in order to protect against uncertainty in fluctuations of future
foreign exchange rates. The use of such forward contracts is limited to
hedging against movements in the value of foreign currencies relative to
the U.S. dollar in connection with specific portfolio transactions or with
respect to portfolio positions. The forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying
currency and any appreciation or depreciation is recorded for financial
statement purposes as unrealized until the contract settlement date, at
which time the fund records realized gains or losses equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The Fund could be exposed to risk if a
counterparty is unable to meet the terms of a forward foreign exchange
currency contract or if the value of the foreign currency changes
unfavorably.
WHEN-ISSUED AND FORWARD COMMITMENTS
The Funds may purchase securities on a "when-issued" basis and may also
purchase or sell securities on a forward commitment. The Funds record when-
issued securities on the trade date and maintain security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased.
38
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
The value of securities underlying when-issued or forward commitments to
purchase securities, and any subsequent fluctuation in their value, is
taken into account when determining the net asset value of the Funds
commencing with the date the funds agree to purchase the securities. The
Funds do not accrue interest or dividends on when-issued securities until
the underlying securities are received.
REPURCHASE AGREEMENTS
The Funds may acquire securities from member banks of the Federal Deposit
Insurance Corporation and from registered broker-dealers which Hawaiian
Trust Company, Limited ("Hawaiian Trust") deems creditworthy under
guidelines approved by the Board of Trustees, subject to the seller's
agreement to repurchase such securities at a mutually agreed-upon date and
price ("repurchase agreement"). The repurchase price generally equals the
price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities. The seller, under a repurchase agreement, is required
to maintain the value of collateral held pursuant to the agreement at not
less than 102% of the repurchase price (including accrued interest).
Securities subject to repurchase agreements will be held by the Trust's
custodian or another qualified custodian or in the Federal Reserve/Treasury
book-entry system. Repurchase agreements are considered to be loans by a
Fund under the 1940 Act.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly
for the U.S. Treasury Securities Fund, Short Intermediate U.S. Treasury
Securities Fund, Diversified Fixed Income Fund, Tax-Free Securities Fund
and Tax-Free Short Intermediate Securities Fund. Dividends from net
investment income are declared and paid monthly for the Growth Stock Fund
and Growth and Income Fund. Dividends from net investment income are
declared and paid quarterly for the New Asia Growth Fund. Distributable net
realized capital gains, if any, are declared and distributed annually.
Dividends from net investment income and net realized capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments of foreign currency transactions and deferrals
of certain losses. Permanent book and tax basis differences are reflected
in the components of net assets.
FEDERAL INCOME TAXES
Each Fund intends to continue to qualify as a regulated investment company
by complying with the provisions available to certain investment companies
as defined in applicable sections of the Internal Revenue Code, and to make
distributions of net investment income and net realized capital gains
sufficient to relieve it from all, or substantially all, federal income
taxes.
ORGANIZATION COSTS
Costs incurred by the Trust in connection with organization, registration
and the initial public offering of shares have been deferred and are
amortized using the straight-line method over a period of two years from
the commencement of the public offering of shares of each Fund. In the
event that any of the initial shares of a Fund are redeemed during such
period by any holder thereof, the Trust will reduce the redemption proceeds
otherwise payable to such holder to cover any unamortized organizational
expenses of the Trust in the same proportion as the number of initial
shares of the Fund being redeemed bears to the number of initial shares of
the Trust outstanding at the time of redemption.
39
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
OTHER
Expenses that are directly related to one Fund are charged directly to that
Fund. Other operating expenses for the Funds or the Trust are prorated to
the Funds on the basis of relative net assets or other appropriate basis.
3.PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the
six months ended January 31, 1996 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Growth Stock Fund.................................... $ 82,561,847 $62,186,112
U.S. Treasury Securities Fund........................ $ 1,848,859 $28,467,184
Short Intermediate U.S. Treasury Securities Fund..... $ 6,831,887 $ 2,792,063
Growth and Income Fund............................... $ 47,776,602 $26,636,853
Diversified Fixed Income Fund........................ $129,811,004 $24,512,358
Tax-Free Securities Fund............................. $ 45,301,236 $41,204,900
Tax-Free Short Intermediate Securities Fund.......... $ 13,828,127 $12,499,517
New Asia Growth Fund................................. $ 1,933,453 $ 725,268
</TABLE>
4. RELATED PARTY TRANSACTIONS
Investment advisory services are provided to the Trust by Hawaiian Trust
(the "Adviser"). Under the terms of the investment advisory agreement with
the Trust, the Adviser is entitled to receive fees based on a percentage of
the average net assets of the Fund. Hawaiian Trust also serves the Trust as
custodian. Under the terms of the custodian agreement, the custodian is
entitled to receive fees based on a percentage of the average net assets of
each Fund and is entitled to be reimbursed for its reasonable out-of-pocket
expenses incurred in the performance of its duties under the agreement.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio limited partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of The BISYS Group, Inc.
BISYS, with whom certain officers and a trustee of the Trust are affiliated,
serves the Trust as principal underwriter and administrator. Such officers
and trustee are not paid any fees directly by the Funds for serving as
officers and trustee of the Trust. Under the terms of the management and
administration agreement, BISYS's fees are computed daily as 0.20% of the
average daily net assets of each Fund.
BISYS also serves as the Trust's distributor and receives fees for providing
distribution services pursuant to the Distribution Agreement (the
"Agreement") pursuant to Rule 12b-1 under the 1940 Act. Under the Agreement,
the Retail Class shares of each Fund pays BISYS a fee not to exceed, on an
annual basis, 0.75% of the average daily net assets attributable to the
Retail Class of shares of each Fund for payments BISYS makes to banks,
including the Adviser, other institutions and broker/dealers, and for
expenses BISYS and any of its affiliates or subsidiaries incur for providing
distribution or shareholder service assistance. For the six months ended
January 31, 1996, BISYS, as the Trust's principal underwriter, received
approximately $53,000 from commissions on sales of Retail Class shares of
which $44,000 was reallowed to affiliated dealers of the Trust's shares and
$8,000 was reallowed to other dealers of the Trust's shares.
40
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
(UNAUDITED)
Continued
BISYS Ohio serves the Trust as fund accountant. Under the terms of the fund
accounting agreement, BISYS Ohio is entitled to receive fees based on a
percentage of the average net assets of each Fund and is reimbursed for
certain out-of-pocket expenses incurred in providing fund accounting
services.
Fees may be voluntarily reduced or expenses reimbursed to assist the Funds
in maintaining competitive expense ratios.
Information regarding these transactions for the period ended January
31,1996 is as follows:
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
---------------------------
ANNUAL FEE AS A ADMINISTRATION 12B-1 FEES
PERCENTAGE OF FEES FEES VOLUNTARILY
AVERAGE DAILY VOLUNTARILY VOLUNTARILY REDUCED EXPENSE ACCOUNTING
NET ASSETS REDUCED REDUCED (RETAIL CLASS) REIMBURSEMENTS FEES
--------------- ----------- -------------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Growth Stock Fund....... 0.80% $32,835 $10,344 $25,144
U.S. Treasury Securities
Fund................... 0.60% 6,591 2,712 5,318
Short Intermediate U.S.
Treasury Securities
Fund................... 0.50% $17,594 4,393 1,552 3,485
Growth and Income Fund.. 0.80% 11,131 943 9,370
Diversified Fixed Income
Fund................... 0.60% 20,892 509 19,851
Tax-Free Securities
Fund................... 0.60% 59,593 1,806 55,474
Tax-Free Short
Intermediate Securities
Fund................... 0.50% 10,067 793 10,296
New Asia Growth Fund.... 0.90% 14,407 799 1,334 $4,146 480
</TABLE>
41
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
Continued
5.CAPITAL SHARE TRANSACTIONS:
Transactions in capital shares for the Trust were as follows:
<TABLE>
<CAPTION>
U.S. TREASURY
GROWTH STOCK FUND SECURITIES FUND
------------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES
------------- ---------- ------------ ----------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, 1996 JANUARY 31, 1996
------------------------- ------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 337,801 28,294 $ 41,736 4,277
Dividends reinvested.... 258,802 21,776 35,566 3,680
Shares redeemed......... (211,152) (17,784) (49,857) (5,112)
------------- ---------- ------------ ----------
Net increase............ $ 385,451 32,286 $ 27,445 2,845
============= ========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 94,976,806 7,932,764 $ 943,875 97,592
Dividends reinvested.... 6,119,438 514,741 1,118,512 116,129
Shares redeemed......... (72,316,561) (5,992,288) (27,682,670) (2,915,315)
------------- ---------- ------------ ----------
Net increase............ $ 28,779,683 2,455,217 $(25,620,283) (2,701,594)
============= ========== ============ ==========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1995(A) JULY 31, 1995(A)
------------------------- ------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Exchange out to Institu-
tional Class........... $ (53,141,072) (5,373,213) $(57,119,258) (6,595,757)
Shares issued........... 2,302,509 232,372 713,608 79,829
Dividends reinvested.... 164,056 16,321 822,476 92,953
Shares redeemed......... (2,510,546) (251,844) (1,047,673) (118,142)
------------- ---------- ------------ ----------
Net increase............ $ (53,185,053) (5,376,364) $(56,630,847) (6,541,117)
============= ========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Exchange in from Retail
Class.................. $ 53,141,072 5,373,213 $ 57,119,258 6,595,757
Shares issued........... 80,211,095 8,005,315 2,004,859 227,789
Dividends reinvested.... 548,955 52,603 2,516,597 282,297
Shares redeemed......... (18,512,105) (1,746,368) (15,462,413) (1,667,418)
------------- ---------- ------------ ----------
Net increase............ $ 115,389,017 11,684,763 $ 46,178,301 5,438,425
============= ========== ============ ==========
</TABLE>
- ------
(a) On October 13, 1994, the Trust identified those institutional shareholders
that were part of the Retail class and transferred these shareholders into
the Institutional class effective October 14, 1994.
42
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
Continued
<TABLE>
<CAPTION>
SHORT INTERMEDIATE U.S.
TREASURY SECURITIES FUND GROWTH AND INCOME FUND
--------------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES
------------- ------------ ------------ ----------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, 1996 JANUARY 31, 1996
--------------------------- ------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 544,552 55,850 $ 112,128 9,516
Dividends reinvested.... 19,083 1,967 12,997 1,102
Shares redeemed......... (53,034) (5,483) (33,800) (2,870)
------------- ----------- ------------ ----------
Net increase............ $ 510,601 52,334 $ 91,325 7,748
============= =========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 8,467,697 873,162 $ 28,337,893 2,438,977
Dividends reinvested.... 69,437 7,166 1,229,400 104,070
Shares redeemed......... (5,003,335) (518,114) (12,493,699) (1,065,341)
------------- ----------- ------------ ----------
Net increase............ $ 3,533,799 362,214 $ 17,073,594 1,477,706
============= =========== ============ ==========
<CAPTION>
OCTOBER 14, 1994
FOR THE YEAR ENDED THROUGH
JULY 31, 1995(A) JULY 31, 1995(B)
--------------------------- ------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Exchange out to Institu-
tional Class........... $ (2,996,089) (322,160)
Shares issued........... 122,119 12,825 $ 295,585 28,572
Dividends reinvested.... 57,771 6,162 2,751 260
Shares redeemed......... (47,185) (5,005) (1,461) (137)
------------- ----------- ------------ ----------
Net increase............ $ (2,863,384) (308,178) $ 296,875 28,695
============= =========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Exchange in from Retail
Class.................. $ 2,996,089 322,160
Shares issued........... 16,730,078 1,790,888 $ 40,679,124 4,026,875
Dividends reinvested.... 133,019 14,245 545 52
Shares redeemed......... (4,125,990) (439,719) (3,888,112) (372,539)
------------- ----------- ------------ ----------
Net increase............ $ 15,733,196 1,687,574 $ 36,791,557 3,654,388
============= =========== ============ ==========
</TABLE>
- ------
(a) On October 13, 1994, the Trust identified those institutional shareholders
that were part of the Retail class and transferred these shareholders into
the Institutional class effective October 14, 1994.
(b) Period from commencement of operations.
43
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1996
Continued
<TABLE>
<CAPTION>
DIVERSIFIED FIXED TAX-FREE
INCOME FUND SECURITIES FUND
------------------------ ------------------------
AMOUNT SHARES AMOUNT SHARES
------------ ---------- ------------ ----------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, 1996 JANUARY 31, 1996
------------------------ ------------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 666,837 59,088 $ 590,993 55,598
Dividends reinvested.... 9,970 890 12,362 1,158
Shares redeemed......... (18,636) (1,663) (25,412) (2,370)
------------ ---------- ------------ ----------
Net increase............ $ 658,171 58,315 $ 577,943 54,386
============ ========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $151,372,238 13,694,950 $ 11,627,509 1,087,226
Dividends reinvested.... 782,820 69,836 3,546,444 331,133
Shares redeemed......... (70,340,627) (6,326,059) (11,702,038) (1,095,227)
------------ ---------- ------------ ----------
Net increase............ $ 81,814,433 7,438,727 $ 3,471,915 323,132
============ ========== ============ ==========
<CAPTION>
OCTOBER 14, 1994 OCTOBER 14, 1994
THROUGH THROUGH
JULY 31, 1995(A) JULY 31, 1995(A)
------------------------ ------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 25,920 2,495 $ 528,482 54,846
Dividends reinvested.... 454 44 10,172 1,019
Shares redeemed......... (25,416) (2,400)
------------ ---------- ------------ ----------
Net increase............ $ 26,374 2,539 $ 513,238 53,465
============ ========== ============ ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 56,842,663 5,601,242 $293,381,164 29,422,035
Dividends reinvested.... 1,900 175 6,343 607
Shares redeemed......... (5,647,023) (542,014) (27,552,782) (2,751,293)
------------ ---------- ------------ ----------
Net increase............ $ 51,197,540 5,059,403 $265,834,725 26,671,349
============ ========== ============ ==========
</TABLE>
- ------
(a) Period from commencement of operations.
44
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONCLUDED
JANUARY 31, 1996
Continued
<TABLE>
<CAPTION>
TAX-FREE
SHORT INTERMEDIATE NEW ASIA
SECURITIES FUND GROWTH FUND
---------------------- ---------------------
AMOUNT SHARES AMOUNT SHARES
----------- --------- ----------- --------
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JANUARY 31, 1996 JANUARY 31, 1996
---------------------- ---------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued.................... $ 62,491 6,148 $ 476,456 43,104
Dividends reinvested............. 691 68 13,647 1,284
Shares redeemed.................. (51,300) (5,051) (21,539) (1,956)
----------- --------- ----------- --------
Net increase..................... $ 11,882 1,165 $ 468,564 42,432
=========== ========= =========== ========
INSTITUTIONAL CLASS SHARES:
Shares issued.................... $ 3,130,295 306,959 $ 2,013,028 182,355
Dividends reinvested............. 3,693 363 46,083 4,330
Shares redeemed.................. (3,151,722) (309,332) (1,749,226) (158,674)
----------- --------- ----------- --------
Net increase..................... $ (17,734) (2,010) $ 309,885 28,011
=========== ========= =========== ========
<CAPTION>
OCTOBER 14, 1994 FEBRUARY 15, 1995
THROUGH THROUGH
JULY 31, 1995(A) JULY 31, 1995(A)
---------------------- ---------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued.................... $ 304,476 30,574 $ 309,769 29,601
Dividends reinvested............. 83 9
Shares redeemed.................. (1,469) (149) (1,510) (140)
----------- --------- ----------- --------
Net increase..................... $ 303,090 30,434 $ 308,259 29,461
=========== ========= =========== ========
INSTITUTIONAL CLASS SHARES:
Shares issued.................... $45,831,176 4,585,110 $ 2,652,270 255,820
Dividends reinvested............. 672 67
Shares redeemed.................. (6,377,898) (641,235) (9,926) (941)
----------- --------- ----------- --------
Net increase..................... $39,453,950 3,943,942 $ 2,642,344 254,879
=========== ========= =========== ========
</TABLE>
- ------
(a) Period from commencement of operations.
45
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH STOCK FUND
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED NOVEMBER 1,
JANUARY 31, 1996 JULY 31, 1995 1993 TO
--------------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
----------- ------------- ---------- ----------------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $11.71 $ 11.71 $ 9.83 $ 9.89 $ 10.00
------ -------- ------ -------- -------
Investment Activities
Net investment income.. 0.03 0.04 0.12 0.11 0.07
Net realized and
unrealized gains
(losses) from
investments........... 1.10 1.10 1.87 1.83 (0.18)
------ -------- ------ -------- -------
Total from Investment
Activities........... 1.13 1.14 1.99 1.94 (0.11)
------ -------- ------ -------- -------
Distributions
Net investment income.. (0.04) (0.05) (0.11) (0.12) (0.06)
Net realized gains..... (0.71) (0.71)
------ -------- ------ -------- -------
Total Distributions... (0.75) (0.76) (0.11) (0.12) (0.06)
------ -------- ------ -------- -------
NET ASSET VALUE, END OF
PERIOD................. $12.09 $ 12.09 $11.71 $ 11.71 $ 9.83
====== ======== ====== ======== =======
Total Return (excludes
sales charges)......... 9.78%(f) 9.91%(f) 20.43% 20.64%(d) (1.05)%(f)
RATIOS/SUPPLEMENTARY DA-
TA:
Net assets at end of pe-
riod (000)............. $4,424 $171,021 $3,905 $136,837 $56,121
Ratio of expenses to av-
erage net assets....... 1.34%(e) 1.09%(e) 1.36% 1.13%(e) 1.41%(e)
Ratio of net investment
income to average net
assets................. 0.78%(e) 1.03%(e) 1.12% 1.30%(e) 0.98%(e)
Ratio of expenses to av-
erage net assets*...... 1.88%(e) 1.13%(e) 1.98% 1.21%(e) 2.31%(e)
Ratio of net investment
income to average net
assets*................ 0.24%(e) 0.99%(e) 0.50% 1.23%(e) 0.07%(e)
Portfolio turnover (g).. 45.22% 45.22% 32.40% 32.40% 25.89%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions
and expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of the Retail Class and transferred these shareholders into
the Institutional Class at the prevailing net asset value effective
October 14, 1994. The Financial Highlights presented for the Institutional
Class reflects operations and distributions for the period from October
14, 1994 through July 31, 1995.
(c) The Financial Highlights presented for the Retail Class reflects
operations and distributions for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 combined with the operations and
distributions of the Retail Class only for the period from October 14,
1994 through July 31, 1995.
(d) Represents total return for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 plus total return for the
Institutional Class for the period from October 14, 1994 through July 31,
1995.
(e) Annualized.
(f) Not annualized.
(g) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
46
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S TREASURY SECURITIES FUND
---------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED NOVEMBER 1,
JANUARY 31, 1996 JULY 31, 1995 1993 TO
--------------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
----------- ------------- ---------- ----------------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.42 $ 9.43 $ 9.04 $ 8.66 $ 10.00
------ ------- ------ ------- -------
Investment Activities
Net investment income.. 0.32 0.33 0.50 0.44 0.31
Net realized and
unrealized gains
(losses) from invest-
ments................. 0.62 0.62 0.38 0.76 (1.00)
------ ------- ------ ------- -------
Total from Investment
Activities........... 0.94 0.95 0.88 1.20 (0.69)
------ ------- ------ ------- -------
Distributions
Net investment income.. (0.36) (0.38) (0.50) (0.43) (0.27)
------ ------- ------ ------- -------
Total Distributions... (0.36) (0.38) (0.50) (0.43) (0.27)
------ ------- ------ ------- -------
NET ASSET VALUE, END OF
PERIOD................. $10.00 $ 10.00 $ 9.42 $ 9.43 $ 9.04
====== ======= ====== ======= =======
Total Return (excludes
sales charges)......... 10.19%(f) 10.23%(f) 10.18% 10.49%(d) (6.95%)(f)
RATIOS/SUPPLEMENTARY DA-
TA:
Net assets at end of pe-
riod (000)............. $1,127 $27,378 $1,035 $51,264 $60,125
Ratio of expenses to av-
erage net assets....... 1.25%(e) 0.99%(e) 1.19% 1.02%(e) 1.15%(e)
Ratio of net investment
income to average net
assets................. 5.44%(e) 5.72%(e) 5.57% 5.78%(e) 4.62%(e)
Ratio of expenses to av-
erage net assets*...... 1.79%(e) 1.03%(e) 1.81% 1.09%(e) 2.09%(e)
Ratio of net investment
income to average net
assets*................ 4.90%(e) 5.68%(e) 4.96% 5.71%(e) 3.68%(e)
Portfolio turnover (g).. 6.07% 6.07% 80.98% 80.98% 11.36%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions
and expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of the Retail Class and transferred these shareholders into
the Institutional Class at the prevailing net asset value effective
October 14, 1994. The Financial Highlights presented for the Institutional
Class reflects operations and distributions for the period from October
14, 1994 through July 31, 1995.
(c) The Financial Highlights presented for the Retail Class reflects
operations and distributions for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 combined with the operations and
distributions of the Retail Class only for the period from October 14,
1994 through July 31, 1995.
(d) Represents total return for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 plus total return for the
Institutional Class for the period from October 14, 1994 through July 31,
1995.
(e) Annualized.
(f) Not annualized.
(g) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
47
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
--------------------------------------------------------------------- -------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED NOVEMBER 1,
JANUARY 31, 1996 JULY 31, 1995 1993 TO
--------------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
----------- ------------- ---------- ----------------- ----------- ---
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.60 $ 9.61 $ 9.52 $ 9.30 $ 10.00
------ ------- ------ ------- -------
Investment Activities
Net investment income.. 0.24 0.27 0.52 0.44 0.24
Net realized and
unrealized gains
(losses) from
investments........... 0.31 0.31 0.05 0.31 (0.52)
------ ------- ------ ------- -------
Total from Investment
Activities........... 0.55 0.58 0.57 0.75 (0.28)
------ ------- ------ ------- -------
Distributions
Net investment income.. (0.30) (0.32) (0.49) (0.44) (0.20)
Net realized gains..... (0.02) (0.02)
------ ------- ------ ------- -------
Total Distributions... (0.32) (0.34) (0.49) (0.44) (0.20)
------ ------- ------ ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.83 $ 9.85 $ 9.60 $ 9.61 $ 9.52
====== ======= ====== ======= =======
Total Return (excludes
sales charges)......... 5.86%(f) 6.13%(f) 6.28% 6.57%(d) (2.76%)(f)
RATIOS/SUPPLEMENTARY DA-
TA:
Net assets at end of pe-
riod (000)............. $1,016 $20,189 $489 $16,214 $3,419
Ratio of expenses to av-
erage net assets....... 0.91%(e) 0.67%(e) 0.99% 0.75%(e) 1.00%(e)
Ratio of net investment
income to average net
assets................. 5.15%(e) 5.42%(e) 5.51% 5.84%(e) 3.96%(e)
Ratio of expenses to av-
erage net assets*...... 1.66%(e) 0.92%(e) 1.78% 0.99%(e) 5.39%(e)
Ratio of net investment
income (loss) to
average net assets*.... 4.40%(e) 5.17%(e) 4.72% 5.61%(e) (0.43%)(e)
Portfolio turnover (g).. 16.59% 16.59% 62.73% 62.73% 0.00%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions
and expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of the Retail Class and transferred these shareholders into
the Institutional Class at the prevailing net asset value effective
October 14, 1994. The Financial Highlights presented for the Institutional
Class reflects operations and distributions for the period from October
14, 1994 through July 31, 1995.
(c) The Financial Highlights presented for the Retail Class reflects
operations and distributions for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 combined with the operations and
distributions of the Retail Class only for the period from October 14,
1994 through July 31, 1995.
(d) Represents total return for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 plus total return for the
Institutional Class for the period from October 14, 1994 through July 31,
1995.
(e) Annualized.
(f) Not annualized.
(g) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statments.
48
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
-----------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1996 JULY 31, 1995 (A)
--------------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
----------- ------------- ------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $11.44 $11.43 $10.00 $10.00
------ ------- ------ -------
Investment Activities
Net investment income... 0.07 0.08 0.17 0.20
Net realized and
unrealized gains from
investments............ 1.05 1.05 1.44 1.42
------ ------- ------ -------
Total from Investment
Activities............ 1.12 1.13 1.61 1.62
------ ------- ------ -------
Distributions
Net investment income... (0.07) (0.08) (0.17) (0.19)
Net realized gains...... (0.31) (0.31)
------ ------- ------ -------
Total Distributions.... (0.38) (0.39) (0.17) (0.19)
------ ------- ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $12.18 $12.17 $11.44 $11.43
====== ======= ====== =======
Total Return (excludes
sales charges).......... 9.88%(b) 10.00%(b) 16.35%(b) 16.41%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $444 $62,452 $328 $41,771
Ratio of expenses to
average net assets...... 1.34%(c) 1.09%(c) 1.40%(c) 1.14%(c)
Ratio of net investment
income to average net
assets.................. 1.45%(c) 1.70%(c) 2.08%(c) 2.47%(c)
Ratio of expenses to
average net assets*..... 1.88%(c) 1.13%(c) 1.99%(c) 1.22%(c)
Ratio of net investment
income to average net
assets*................. 0.91%(c) 1.66%(c) 1.49%(c) 2.39%(c)
Portfolio turnover(d).... 56.05% 56.05% 12.78% 12.78%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced.
If such voluntary fee reductions had not occurred, the ratios would have
been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
49
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED FIXED INCOME FUND
------------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1996 JULY 31, 1995 (A)
--------------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
----------- ------------- ------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD.......... $10.75 $10.84 $10.00 $10.00
------ -------- ------ -------
Investment Activities
Net investment income... 0.32 0.33 0.49 0.55
Net realized and
unrealized gains from
investments............ 0.66 0.66 0.74 0.78
------ -------- ------ -------
Total from Investment
Activities............ 0.98 0.99 1.23 1.33
------ -------- ------ -------
Distributions
Net investment income... (0.33) (0.34) (0.48) (0.49)
Net realized gains...... (0.10) (0.10)
------ -------- ------ -------
Total Distributions.... (0.43) (0.44) (0.48) (0.49)
------ -------- ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $11.30 $11.39 $10.75 $10.84
====== ======== ====== =======
Total Return (excludes
sales charges).......... 9.24%(b) 9.32%(b) 12.66%(b) 13.70%(b)
RATIOS/SUPPLEMENTARY DA-
TA:
Net assets at end of pe-
riod (000).............. $688 $142,294 $27 $54,827
Ratio of expenses to av-
erage net assets........ 1.13%(c) 0.89%(c) 1.18%(c) 0.93%(c)
Ratio of net investment
income to average net
assets.................. 5.16%(c) 5.71%(c) 6.25%(c) 6.71%(c)
Ratio of expenses to av-
erage net assets*....... 1.67%(c) 0.93%(c) 1.77%(c) 1.01%(c)
Ratio of net investment
income to average net
assets*................. 4.62%(c) 5.67%(c) 5.66%(c) 6.63%(c)
Portfolio turnover (d)... 21.38% 21.38% 60.47% 60.47%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
50
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SECURITIES FUND
------------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1996 JULY 31, 1995 (A)
--------------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
----------- ------------- ------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD.......... $10.53 $10.56 $10.00 $10.00
------ -------- ------ --------
Investment Activities
Net investment income... 0.27 0.27 0.39 0.42
Net realized and
unrealized gains from
investments............ 0.44 0.44 0.50 0.51
------ -------- ------ --------
Total from Investment
Activities............ 0.71 0.71 0.89 0.93
------ -------- ------ --------
Distributions
Net investment income... (0.30) (0.31) (0.36) (0.37)
Net realized gains...... (0.13) (0.13)
------ -------- ------ --------
Total Distributions.... (0.43) (0.44) (0.36) (0.37)
------ -------- ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $10.81 $10.83 $10.53 $10.56
====== ======== ====== ========
Total Return (excludes
sales charges).......... 6.84%(b) 6.88%(b) 9.06%(b) 9.54%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $1,166 $292,454 $563 $281,646
Ratio of expenses to
average net assets...... 1.13%(c) 0.88%(c) 1.15%(c) 0.89%(c)
Ratio of net investment
income to average net
assets.................. 4.64%(c) 4.91%(c) 4.93%(c) 5.16%(c)
Ratio of expenses to
average net assets*..... 1.67%(c) 0.92%(c) 1.74%(c) 0.98%(c)
Ratio of net investment
income to average net
assets*................. 4.10%(c) 4.87%(c) 4.34%(c) 5.07%(c)
Portfolio turnover (d)... 14.56% 14.56% 49.17% 49.17%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
51
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
-----------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1996 JULY 31, 1995 (A)
--------------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
----------- ------------- ------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $10.11 $10.14 $10.00 $10.00
------ ------- ------ -------
Investment Activities
Net investment income... 0.19 0.21 0.30 0.32
Net realized and
unrealized gains from
investments............ 0.13 0.13 0.08 0.11
------ ------- ------ -------
Total from Investment
Activities............ 0.32 0.34 0.38 0.43
------ ------- ------ -------
Distributions
Net investment income... (0.22) (0.24) (0.27) (0.29)
------ ------- ------ -------
Total Distributions.... (0.22) (0.24) (0.27) (0.29)
------ ------- ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $10.21 $10.24 $10.11 $10.14
====== ======= ====== =======
Total Return (excludes
sales charges).......... 3.23%(b) 3.37%(b) 3.90%(b) 4.36%(b)
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $323 $40,379 $308 $39,993
Ratio of expenses to
average net assets...... 1.06%(c) 0.81%(c) 1.05%(c) 0.85%(c)
Ratio of net investment
income to average net
assets.................. 3.69%(c) 3.95%(c) 3.82%(c) 4.03%(c)
Ratio of expenses to
average net assets*..... 1.61%(c) 0.86%(c) 1.64%(c) 0.94%(c)
Ratio of net investment
income to average net
assets*................. 3.14%(c) 3.90%(c) 3.23%(c) 3.94%(c)
Portfolio turnover (d)... 31.30% 31.30% 89.98% 89.98%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
52
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW ASIA GROWTH FUND
--------------------------------------------------------
FOR THE SIX MONTHS ENDED FEBRUARY 15, 1995 TO
JANUARY 31, 1996 JULY 31, 1995(A)
---------------------------- -------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
----------- ------------- ------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $11.21 $11.22 $10.00 $10.00
------ ------ ------ ------
Investment Activities
Net investment income
(loss)................ (0.01) 0.02 0.04
Net realized and
unrealized gains from
investments........... 0.93 0.93 1.19 1.18
------ ------ ------ ------
Total from Investment
Activities........... 0.92 0.93 1.21 1.22
------ ------ ------ ------
Distributions
Net investment income.. (0.02) (0.03)
Net realized gains..... (0.26) (0.26)
------ ------ ------ ------
Total Distributions... (0.28) (0.29)
------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $11.85 $11.86 $11.21 $11.22
====== ====== ====== ======
Total Return (excludes
sales charges)......... 8.48%(b) 8.59%(b) 12.10%(b) 12.20%(b)
RATIOS/SUPPLEMENTARY DA-
TA:
Net assets at end of pe-
riod (000)............. $852 $3,355 $330 $2,861
Ratio of expenses to av-
erage net assets....... 2.22%(c) 1.98%(c) 2.24%(c) 1.97%(c)
Ratio of net investment
income (loss) to aver-
age net assets......... (0.26%)(c) 0.00%(c) 0.80%(c) 1.18%(c)
Ratio of expenses to av-
erage net assets*...... 3.92%(c) 3.19%(c) 3.51%(c) 2.74%(c)
Ratio of net investment
income (loss) to aver-
age net assets*........ (1.96%)(c) (1.21%)(c) (0.47%)(c) 0.42%(c)
Portfolio turnover (d).. 27.32% 27.32% 55.62% 55.62%
</TABLE>
- --------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
53
<PAGE>
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<PAGE>
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<PAGE>
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<PAGE>
INVESTMENT ADVISER
Hawaiian Trust Company
111 S. King Street
Honolulu, Hawaii 96813
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Shereff, Friedman, Hoffman & Goodman, LLP
919 Third Avenue
New York, New York 10022
AUDITORS
Ernst & Young LLP
One Columbus Suite 2400
Columbus, Ohio 43215
TRANSFER AGENT
Administrative Data Management Corp
10 Woodbridge Center Drive
Woodbridge, New Jersey 07095
For more complete information on the Pacific Capital Funds, including fees,
expenses and sales charges, please call 1-800-258-9232 for a prospectus, which
you should read carefully before you invest or send money. The Pacific Capital
Funds are distributed by BISYS Fund Services.
