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PACIFIC CAPITAL FUNDS
Supplement dated January 16, 1997
to Statement of Additional Information dated November 29,1996
The following text is added to the Statement of Additional Information,
immediately preceding "Redemption of Shares:"
PURCHASE OF SHARES
Reference is made to "How to Purchase Retail Class Shares" and "How to
Purchase Institutional Class Shares" in the Prospectuses for certain information
as to the purchase of Fund shares.
Institutional Class shareholders of any Fund who terminate their
qualified trust account, employee benefit account or other qualifying
relationship with an Institution are no longer eligible to make additional
investments in a Fund's Institutional Class shares. The Board of Trustees has
approved an automatic conversion feature whereby Institutional Class Shares held
by shareholders who have terminated their qualifying relationship on or after
February 15, 1997 will be converted to Retail Class Shares of the same Fund on
the basis of the relative net asset values of the shares of the two classes on
the conversion date, without incurring any fee, sales load or other charge. As
Retail Class shareholders in a Fund, such former Institutional Class
shareholders will be able to reinvest dividends and distributions relating to
their share holdings, but will be subject to the higher expenses associated with
Retail Class shares. A conversion of Institutional Class shares for Retail Class
shares will be a tax-free transaction for any Institutional Class shareholder
involved in such conversion. Institutional Class shareholders who plan to
terminate their qualified trust account, employee benefit account or other
qualifying relationship on or after February 15, 1997 and who do not wish to
have their holdings converted to Retail Class shares may choose to redeem their
shares.
Institutional Class shareholders who terminate or have terminated their
qualified trust account, employee benefit account or other qualifying
relationship prior to February 15, 1997 will not have their share holdings
converted to Retail Class shares and will be permitted to remain as
Institutional Class shareholders; however, such shareholders may not make
additional purchases of Institutional Class shares, nor may such shareholders
reinvest dividends and distributions in respect of their Institutional Class
share holdings.
