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PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
Supplement dated May 8, 1997 to the
Prospectus dated November 29, 1996
The following information supplements "Management, Advisory and Other
Service Arrangements--The Sub-Adviser" in the Prospectus:
Credit Lyonnais International Asset Management (HK) Limited ("Credit
Lyonnais HK"), the current Sub-Adviser to the Fund, has entered into an
agreement under which its shares and assets will be acquired by
Nicholas-Applegate Capital Management (Hong Kong) LLC ("Nicholas-Applegate").
The Fund's current sub-advisory agreement provides that it terminates
automatically upon consummation of a transaction of this type. Approval of a
replacement sub-advisory agreement requires approval by the Fund's trustees
and shareholders.
Accordingly, at a meeting held on May 8, 1997, the Board of Trustees
considered and approved a new sub-advisory agreement (the "New Sub-Advisory
Agreement") to become effective upon the later of the closing of the
acquisition of Credit Lyonnais HK by Nicholas-Applegate or approval by
shareholders of the New Sub-Advisory Agreement. The New Sub-Advisory Agreement
appoints Nicholas-Applegate as sub-adviser to the Fund. The fee payable under
the New Sub-Advisory Agreement is at the same rate as under the existing
sub-advisory agreement.
A proxy statement containing more information regarding the New
Sub-Advisory Agreement will be mailed on or about May 9, 1997. The shareholder
meeting at which approval of the New Sub-Advisory Agreement will be considered
is scheduled to be held on May 19, 1997. The Board of Trustees has fixed the
close of business on April 25, 1997 as the record date for the determination of
shareholders of the Fund entitled to notice of and to vote at the shareholder
meeting or any adjournment thereof.
Nicholas-Applegate, a California limited liability company, is located
at Room 604-6, Three Exchange Square, 8 Connaught Place, Central, Hong Kong,
and is part of an investment management organization which together manage in
excess of $30 billion through a variety of investment products and services.
Nicholas-Applegate is registered as an investment adviser with the Securities
and Exchange Commission under the Investment Advisers Act of 1940.
Under the New Sub-Advisory Agreement, Hawaiian Trust will pay
Nicholas-Applegate a fee for its services equal to 0.50% of the Fund's average
daily net assets, computed daily and payable quarterly. The fee paid by
Hawaiian Trust to Nicholas-Applegate will represent a portion of the 0.90%
investment advisory fee paid by Hawaiian Trust.
All investment decisions of Nicholas-Applegate with respect to the
Fund will be made by a committee, and no person will be primarily responsible
for making recommendations to the committee.
