<PAGE>
[LOGO OF PACIFIC CAPITAL FUNDS]
------------------
Semi-Annual Report
To Shareholders
January 31, 1997
------------------
<PAGE>
PACIFIC CAPITAL FUNDS
JANUARY 31, 1997
LETTER TO SHAREHOLDERS
Dear Shareholders:
The Pacific Capital Funds' assets continued to grow during the recent six-
month period, with nearly 20% growth in our Retail Share class. On par with
industry trends, the majority of new money invested went into our equity funds,
due largely to the strong performance of the stock market during the period.
Many investors expressed concern during the past six months regarding the
direction of long-term interest rates, the possibility of rising inflation and,
in particular, the prospects for continued gains in the stock market. We
encourage our shareholders to keep in mind that financial market fluctuations
are inherent in the investment process. Rather than react to those
fluctuations, investors would do well to act according to three important
investment principles during any point in a market cycle.
First, investors should differentiate their long-term investment requirements
from their liquid-asset requirements. Long-term investors' needs probably will
be met best by taking advantage of stocks and other growth-oriented assets.
Short-term volatility and risk are by-products of investing in such assets. But
investors in the long run have been well compensated for taking on that risk.
Second, investors should diversify their investments by allocating their
savings among various types of asset classes, such as stocks, bonds and cash
investments. Within those asset categories, it may also be wise to consider
tax-advantaged investments and international securities. Such diversification
among broad categories can help to moderate investment volatility and further
reduce risk.
Third, investors should remember that successful investing requires an
element of discipline. Regular contributions to a portfolio of professionally
managed mutual funds can provide that discipline and help investors participate
in the financial markets consistently. Such an approach can help reduce risk of
suffering sub-par returns due to poor investment timing.
Americans continued to pour money into mutual funds. In 1996, investors
contributed almost one half trillion dollars in new money to mutual funds, with
most of that money allocated to stock funds.
As mutual fund assets continue to grow, we want to assure shareholders of the
quality of the investments selected for our Funds by the Hawaiian Trust
Company. Our careful selection process reflects our mission to deliver
consistent and competitive returns to our shareholders. For example, the New
Asia Growth Fund returned 17.77%/1/ and the Growth and Income Fund returned
21.45% for the six months ending January 31, 1997 (Returns are for Retail Class
without sales charge).
Hawaiian Trust Company also adds value as a locally based firm providing
regional perspective and accessibility to investment expertise. Hawaiian Trust
Company has been a premier provider of asset management to individuals,
businesses, nonprofit organizations, foundations and government agencies for
nearly 100 years.
1
<PAGE>
We appreciate your confidence in the Pacific Capital Funds. During the coming
months, we will continue to strengthen our commitment to monitor investment
risk and uncover investment opportunities that will help you meet your long-
term financial goals. If you have any questions or would like a Fund
prospectus, please contact your registered investment consultant or call the
Funds' transfer agent at 1-800-258-9232.
Sincerely,
/s/ Deborah G. Patterson
Deborah G. Patterson
Senior Vice President, Bank of Hawaii
Chairperson, the Pacific Capital Funds
- --------
AS WITH ALL MUTUAL FUNDS, SHARES IN THE PACIFIC CAPITAL FUNDS
.ARE NOT FDIC INSURED
.HAVE NO BANK GUARANTEE
.MAY LOSE VALUE
2
<PAGE>
LETTER FROM THE INVESTMENT ADVISER
The six-month period ended January 31, 1997 was an eventful one for
investors. Uncertainty about the strength of the economy and the likely
direction of interest rates caused considerable volatility in the bond market.
Stocks performed well after struggling very early in the period. However, most
of the stock market's gains came from shares of large-company stocks. Small-
and mid-sized company stocks trailed large-company shares by wide margins.
SLOW ECONOMIC GROWTH
Bond prices rose as a result of slow economic growth during the third quarter
of 1996. But concerns that accelerating economic growth would rekindle
inflation hurt bonds' performance later in the period. During the fourth
quarter, the economy grew at a revised annualized rate of 3.9%.
Going forward, we believe that economic growth will slow during 1997 to
around 2%. There are several reasons for this outlook:
. Global economic growth will slow. Many countries will continue to focus
on fiscal restraint.
. Consumer spending is likely to decrease. Consumer installment debt is
high relative to consumers' income, and we will continue to see more
credit-card and mortgage delinquencies as well as bankruptcies. These
factors should lead to a drag on GDP growth numbers.
DEMOGRAPHIC TRENDS
Demographic and population trends will play a large role in the spending
habits of Americans, as well as impact U.S. economic growth and the success of
various industries during the next few years. The number of 25-30 year-olds
will begin to decline this year and continue to fall well into the next
century. Since that young group traditionally is a strong buyer of first homes,
cars and appliances, we may see a drop in retail, lower-priced auto and housing
sales during the next few years. This age group also has less disposable income
and higher debt than other age groups, and in general is in poorer financial
shape than older generations.
Meanwhile, however, baby boomers' wealth will increase as they invest toward
retirement. That will stimulate sales for financial-asset companies, brokerage
firms and the travel and luxury-car industries going forward.
In this type of modest growth environment, inflation will remain low.
Moreover, the strength of the dollar relative to most other currencies will
create deflationary pressure. Finally, U.S. companies probably won't be able to
pass along price increases to consumers because of increasing international
competition. Therefore, we do not foresee the Federal Reserve raising interest
rates during the next few quarters. It is more likely that the Fed will lower
rates later in the year.
OPPORTUNITIES IN FINANCIAL MARKETS
We believe the stock market may see yet another year of positive returns
between 8% to 12%. However, many shares of the biggest companies already have
posted large gains and may be somewhat overvalued; thus, we will look for
opportunities among shares of smaller firms. We also will favor stocks that
have demonstrated the ability to consistently deliver above-average growth over
more cyclical stocks whose fortunes are closely tied to the rate of economic
growth.
Bonds also are attractive at recent yields since the economy should continue
to slow. We believe that yields on long-term Treasuries could fall as low as
6.2% this autumn, from around 6.79% at the end of the recent period. Therefore,
we think now is a good time to lock in current yields on relatively long-term
issues.
3
<PAGE>
Regardless of what happens in the months ahead, investors should continue to
focus on their long-term goals. We will continue to help investors achieve
their long-term goals at acceptable levels of risk by devising and implementing
clear investment strategies for each of the Funds.
Sincerely,
/s/ William J. Barton
William J. Barton
Executive Vice President, Manager
Investment Management Group
Hawaiian Trust Company, Ltd.
4
<PAGE>
FUND PERFORMANCE REPORT
PACIFIC CAPITAL GROWTH STOCK FUND
"The Pacific Capital Growth Stock Fund continues to purchase faster growing
companies of two types: larger, leading companies with exposure to global
markets and mid- to small-sized companies with more explosive growth and
exposure to smaller, more dynamic markets."-- Christopher Sullivan, Portfolio
Manager
Pacific Capital Growth Stock Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
S&P/BARRA Institutional (B)
Growth Index++ Retail (A)* No Load
-------------- ----------- -----------------
<S> <C> <C> <C>
1/31/87 10,000 9,591 10,000
1/31/88 9,563 8,831 9,229
1/31/89 11,246 10,037 10,553
1/31/90 13,243 11,596 12,213
1/31/91 14,937 13,247 13,992
1/31/92 19,147 16,605 17,609
1/31/93 20,623 17,310 18,399
1/31/94 21,653 18,863 20,093
1/31/95 22,405 18,826 20,084
1/31/96 31,351 24,285 25,949
1/31/97 40,366 29,066 31,157
</TABLE>
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
01/31/97 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* 14.94% 10.95% 11.26%
Institutional (B) 20.07% 12.10% 12.04%
<CAPTION>
12/31/96 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* 10.19% 9.04% 12.05%
Institutional (B) 15.03% 10.18% 12.80%
</TABLE>
10/14/94, Commencement of operations of Institutional Class
11/1/93, Commencement of operations of Retail Class
+The quoted performance of the Pacific Capital Growth Stock Fund ("Fund")
includes the performance of certain common trust fund ("Commingled") accounts
advised by Hawaiian Trust Company and managed the same as the Fund in all
material respects, for periods dating back to January 31, 1987, and prior to
the Fund's commencement of operations on November 1, 1993, for the Retail
Class, and on October 14, 1994, for the Institutional Class as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were
not registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Standard & Poor's BARRA Growth Index 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 NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
The Fund returned 21.45%/1/ during the six months ended January 31, 1997
(returns are for Retail Class without the sales charge). That performance
lagged the 25.52% return of the Fund's benchmark, the S&P/BARRA Growth Index,
since much of the index's performance was fueled by the very largest companies
(on a cap-weighted basis) in the index.
The Fund invests in higher quality mid-to-large-cap stocks, which potentially
have faster growth of earnings and revenues than the market in general.
Although for much of the six-month period under discussion the Fund owned more
large stocks than mid-sized stocks, the Fund is currently shifting some assets
into more mid-cap issues because of their attractive valuations. Though the
market has been driven in the more recent 6 to 18 months by larger companies,
and the Fund has benefited by holding these firms, relative valuation dictates
increasing the Fund's weighting in mid-cap issues.
5
<PAGE>
In its pursuit of companies that offer faster growth in earnings and
revenues, the Fund maintained strong weightings in the technology and consumer
staples sectors, since these economic sectors typically have faster growth than
the market in general. The Fund continues to hold both larger, more established
firms like Intel (4.4%) and Sara Lee (2.7%) as well as faster growing, smaller
firms like C-Cube Microsystems (1.0%) and Pioneer Hi-Bred (1.8%).
In 1996, small- and mid-cap growth companies substantially underperformed
large-cap growth companies, on average. Our expectation is that while small-,
mid- and large-capitalization growth companies will frequently exhibit
unsynchronized performance over a full economic cycle, investors should benefit
from holding growth companies across the size spectrum.
As of January 31, 1997, the Fund's top five holdings as a percentage of total
net assets were General Electric (4.4%), Intel Corp. (4.3%), Coca-Cola Co.
(3.6%), Procter & Gamble (3.4%) and Microsoft (3.3%)/2/.
- --------
/1/With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 16.54% for the six-month period.
/2/The composition of the Fund's holdings is subject to change.
6
<PAGE>
PACIFIC CAPITAL GROWTH AND INCOME FUND
"We will look for companies with strong earnings and dividend growth
prospects, emphasizing shares of firms that can provide the most growth at the
best value."-- Roger Khlopin, Portfolio Manager
Pacific Capital Growth and Income Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
S&P 500 Institutional (B)
Stock Index++ Retail (A)* No Load
-------------- ----------- -----------------
<S> <C> <C> <C>
1/31/87 10,000 9,593 10,000
1/31/88 9,673 9,136 9,550
1/31/89 11,620 10,695 11,207
1/31/90 13,293 12,153 12,757
1/31/91 14,407 13,187 13,892
1/31/92 17,677 15,356 16,216
1/31/93 19,535 15,814 16,739
1/31/94 22,045 16,915 17,946
1/31/95 22,172 17,211 18,283
1/31/96 30,720 21,717 23,127
1/31/97 38,821 26,807 28,616
</TABLE>
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------
01/31/97 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* 18.48% 10.87% 10.36%
Institutional (B) 23.73% 12.03% 11.09%
<CAPTION>
12/31/96 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* 13.69% 8.70% 10.86%
Institutional (B) 18.67% 9.84% 11.58%
</TABLE>
10/14/94, Commencement of operations of the
Retail and Institutional Classes
+The quoted performance of the Pacific Capital Growth and Income Fund ("Fund")
includes the performance of certain common trust fund ("Commingled") accounts
advised by Hawaiian Trust Company and managed the same as the Fund in all
material respects, for periods dating back to January 31, 1987, and prior to
the Fund's commencement of operations on October 14, 1994, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were
not registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Standard & Poor's 500 Stock Index is unmanaged and is generally
representative of the performance of the domestic 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 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, 1997, the Fund delivered a total
return of 21.41%/1/ (returns are for Retail Class without sales charge). That
compared to a 24.15% return for the Standard & Poor's 500 Stock Index.
The Fund's performance was in part the result of our significant investment
in shares of rapidly growing mid-sized companies, which traded at attractive
levels. During the period, such shares lagged the performance of large-company
stocks; however, we felt that they provided some of the market's best long-term
opportunities.
The Fund's portfolio is tilted towards sectors that will benefit from
continued economic growth: technology, capital goods and energy. The Fund's
exposure to technology climbed from 13.5% to 14.5% during the period. We
maintained our strong position in technology even when the sector experienced a
sell-off in July. We believe these securities offer excellent long-term growth
opportunities, and we are willing to ride out the sector's inevitable
fluctuations.
7
<PAGE>
The Fund's allocation to financial services was increased from 11.6% to 14.5%
during the period. This sector has been performing especially well reflecting a
combination of strong earnings, reasonable valuation and takeover activity. In
January, the Fund benefited nicely when one of its holdings in this sector,
First USA, agreed to be acquired by Banc One.
Looking ahead, we feel the economy will continue to grow at a modest rate. We
will look for companies with strong earnings and dividend growth prospects,
emphasizing shares of firms that can provide the most growth at the best value.
We expect the technology sector to remain the most dynamic and strongest area
of growth in the U.S. market.
As of January 31, 1997, the Fund's top five holdings as a percentage of total
net assets were Intel (3.3%), General Electric (3.1%), Microsoft (2.3%),
BankAmerica (2.3%) and GTE Corp. (2.1%)/2/.
- --------
/1/With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of 16.59% for the six-month period.
/2/The composition of the Fund's holdings is subject to change.
8
<PAGE>
PACIFIC CAPITAL NEW ASIA GROWTH FUND
"Asset allocation has proved important in pursuing continued outperformance
for the Fund." --Tim Greaton, Portfolio Manager
Pacific Capital New Asia Growth Fund
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
MSC/AC Far East Institutional (B)
Free ex Japan Retail (A)* No Load
-------------- ----------- -----------------
<S> <C> <C> <C>
2/15/95 9,479 10,000 10,000
1/31/96 11,527 12,183 12,354
1/31/97 12,727 13,490 12,957
</TABLE>
* Reflects 5.25% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------
Since Inception
01/31/97 1 Year (2/15/95)
-------- ------ ---------
<S> <C> <C>
Retail (A)* 4.59% 13.06%
Institutional (B) 10.73% 16.46%
<CAPTION>
Since Inception
12/31/96 1 Year (2/15/95)
-------- ------ ---------
<S> <C> <C>
Retail (A)* 9.90% 11.09%
Institutional (B) 16.14% 14.55%
</TABLE>
The performance of the Pacific Capital New Asia Growth Fund is measured against
the Morgan Stanley Capital International MSCI AC Far East Free ex 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 NAV will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
The past six months were both challenging and rewarding but have seen no
tremendous changes in market performances. Markets which had fallen early in
1996 continued to do so, while those markets which had seen solid appreciation
in the first half remained outperformers.
In this type of environment asset allocation has proved important in pursuing
continued outperformance for the Fund. We avoided making substantial
investments in either Korea or Thailand. We believe the current economic
slowdowns in both of these countries will continue to inhibit stock market
performance, and we thus have reduced the Fund's weighting to a mere 6% of
total net assets.
At the same time, other markets in the region, particularly Hong Kong and
Indonesia, have continued to see solid returns. The Fund currently has a 45.1%
(as a percent of total assets) weighting in these two markets alone. Hong Kong
continues to benefit from the recovery of the Chinese economy and increasing
integration between the territory and the People's Republic of China. Moreover,
Hong Kong's market has been supported by the steady interest-rate environment
in the United States, as its currency remains pegged to the U.S. dollar and
will remain so even after the transfer to China.
Indonesia also has seen a gradual improvement in its economy. Inflation there
is well under control, having fallen from over 10% early last year all the way
to a 5.4% annual rate this year. Consequently, the government now has room to
ease interest rates, which have remained high particularly on the short end--
with three-month rates at 15% for more than two years. This easing of liquidity
should continue to bolster stock market performance.
9
<PAGE>
The Fund continues to use Hong Kong as its primary means to gain exposure to
China. For example, the Fund has invested in China Resources Enterprises Ltd.
(2.1%), one of the leading People's Republic of China backed conglomerates in
the territory. The group has a wide array of businesses, from property to
breweries to port operations, and continues to grow its investment portfolio
via acquisition. We look for the group to be a major player in Hong Kong after
1997.
As of January 31, 1997, the Fund's top five holdings as a percent of net
assets were Hutchison Whampoa, Ltd. (3.4%), Cheung Kong Holdings, Ltd. (3.3%),
Daya Guna Samudera (2.9%), Fairyoung Holdings (2.5%) and Swire Pacific LTD
(2.4%)/1/.
- --------
*International investing is subject to certain risk factors, such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and differences in accounting and other financial standards.
/1/The composition of the Fund's holdings is subject to change.
10
<PAGE>
PACIFIC CAPITAL U.S. TREASURY SECURITIES FUND
"We purchased longer-term Treasuries and continued to gradually extend the
portfolio's average maturity."-- Dave Todani, Portfolio Manager
Pacific Capital U.S. Treasury Securities Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Merrill Lynch 10-15 Yr.
Govt./U.S.
Treas. Index++ Retail (A)* Institutional (B) No Load
--------------- ----------- -------------------------
<S> <C> <C> <C>
1/31/87 10,000 9,600 10,000
1/31/88 10,234 9,280 9,696
1/31/89 10,772 9,552 9,983
1/31/90 12,079 10,528 11,047
1/31/91 13,500 11,648 12,230
1/31/92 15,317 12,976 13,649
1/31/93 17,589 14,448 15,220
1/31/94 19,912 15,968 16,858
1/31/95 18,838 14,853 15,690
1/31/96 22,207 18,066 19,133
1/31/97 23,089 17,659 18,767
</TABLE>
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
01/31/97 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -6.19% 5.49% 5.85%
Institutional (B) -1.91% 6.58% 6.49%
<CAPTIO>
12/31/96 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -5.86% 5.04% 5.98%
Institutional (B) -1.68% 6.12% 6.61%
</TABLE>
10/14/94, Commencement of operations of Institutional Class
11/1/93, Commencement of operations of Retail Class
+The quoted performance of the Pacific Capital U.S. Treasury Securities Fund
("Fund") includes the performance of certain common trust fund ("Commingled")
accounts advised by Hawaiian Trust Company and managed the same as the Fund in
all material respects, for periods dating back to January 31, 1987, and prior
to the Fund's commencement of operations on November 1, 1993, for the Retail
Class, and on October 14, 1994, for the Institutional Class, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were
not registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Merrill Lynch 10-15 Year Government/U.S. Treasury Index 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 NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
The average maturity of the Fund's portfolio stood at 11.7 years at the start
of the six-month period that ended January 31, 1997. This was five years
shorter than the average maturity at the beginning of 1996, which made the Fund
less susceptible to losses as interest rates rose between February and July.
During the second half of the year, interest rates began to fall and the bond
market rallied. We purchased longer-term Treasuries--which increase in value
more than shorter-term issues when interest rates decline--and continued to
gradually extend the portfolio's average maturity even when rates rose and bond
prices fell during December. At the end of the recent period, the average
maturity of the Fund's securities was 11.7 years. The Fund's total return for
the six months ended January 31, 1997, was 4.07%/1/ (returns are for Retail
Class without the sales charge).
Going forward, we will maintain this aggressive strategy, with an average
maturity that is longer than the Fund's benchmark. We believe economic growth
will be considerably slower than it has been in the past few months. Our GDP
forecast for the first quarter of 1997 is 1.8%, which compares to a GDP growth
rate of 4.7%
11
<PAGE>
for the fourth quarter of 1996. Inflation should remain low, and interest rates
may decline in such a slow-growth environment.
We estimate that yields on 30-year Treasury bonds will fluctuate between
6.25% and 7.25% this year. When the yield moves closer to the lower end of that
range, we will become more defensive and shorten the Fund's duration, thereby
reducing its price sensitivity to changes in interest rates. When the long bond
approaches the high end of the range, we will purchase longer-term securities
that can benefit more from a decline in rates.
Finally, investors should remember that this Fund takes an active duration
management strategy to help enhance returns and boost income. Thus, the Fund
often is more aggressive than the more conservative Short Intermediate U.S.
Treasury Securities Fund.
- --------
/1/With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of -0.08% for the six-month period.
12
<PAGE>
PACIFIC CAPITAL SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
"We believe that economic growth during the first quarter of 1997 will slow
considerably from the fourth quarter of last year, and inflation should remain
tame."-- Dave Todani, Portfolio Manager
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Merrill Lynch
-5 Year U.S.
Treasury Index 3 Retail (A)* Institutional (B) No Load
---------------- ----------- -------------------------
<S> <C> <C> <C>
12/13/93 10,000 9,775 10,000
1/31/94 10,111 9,869 10,096
1/31/95 9,904 9,459 9,692
1/31/96 11,405 10,689 10,992
1/31/97 11,740 10,832 11,156
</TABLE>
* Reflects 2.25% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
Since Inception
01/31/97 1 Year (12/13/93)
-------- ------ ---------------
<S> <C> <C>
Retail (A)* -0.98% 2.58%
Institutional (B) 1.49% 3.54%
<CAPTION>
Since Inception
12/31/96 1 Year (12/13/93)
-------- ------ ---------------
<S> <C> <C>
Retail (A)* -0.43% 2.57%
Institutional (B) 2.28% 3.59%
</TABLE>
10/14/94, Commencement of operations of Institutional Class
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 NAV will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than the
original cost.
Early in 1996, investors' concerns about the economy's growing strength and
the potential for higher inflation caused interest rates to rise between
February and July. As a result, the Fund took a defensive posture by
positioning its duration and average maturity shorter than those of its
benchmark. The Fund began 1996 with an average maturity of 4.24 years and
reduced that to 3.28 years by July, thereby reducing the adverse price impact
on the portfolio from rising rates.
As fears that the economy was growing too fast dissipated, interest rates in
September began to decline and bond prices rose. Since longer-term securities
perform especially well when interest rates fall, we began to extend the
average maturity of the securities in the portfolio during this time.
We maintained this more-aggressive stance through the end of January, when
the average maturity of the portfolio was 4.3 years. It worked well during most
of the period. In December, however, economists' revisions about the strength
of the economy caused a temporary rise in interest rates. The yield on the 5-
year Treasury note increased from 5.83% in November to 6.21% by the end of
1996.
Our bond market outlook remains positive. We believe that economic growth
during the first quarter of 1997 will slow considerably from the fourth quarter
of last year, and inflation should remain tame.
We do not foresee the Federal Reserve raising short-term interest rates in
this type of slow-growth, low-inflation environment. In fact, there is a strong
possibility that the Fed will reduce rates this summer. Thus, we will maintain
the Fund's current position by leaning toward longer-term securities that will
benefit as the economy slows and interest rates fall.
13
<PAGE>
PACIFIC CAPITAL DIVERSIFIED FIXED INCOME FUND
"I believe the Fund is well positioned for attractive returns during 1997."--
Janet Katakura, Portfolio Manager
Pacific Capital Diversified Fixed Income Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Merrill Lynch
Corporate &
Government Institutional (B)
Master Index++ Retail (A)* No Load
-------------- ----------- -----------------
<S> <C> <C> <C>
1/31/87 10,000 9,599 10,000
1/31/88 10,437 9,630 10,066
1/31/89 11,006 9,954 10,426
1/31/90 12,238 10,880 11,426
1/31/91 13,602 12,037 12,656
1/31/92 15,364 13,642 14,393
1/31/93 17,150 15,154 16,033
1/31/94 18,922 17,161 18,197
1/31/95 18,377 15,682 16,777
1/31/96 21,613 18,981 20,364
1/31/97 22,134 18,760 20,163
</TABLE>
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
01/31/97 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -5.11% 5.71% 6.49%
Institutional (B) -0.99% 6.97% 7.26%
<CAPTION>
12/31/96 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -4.71% 5.25% 6.65%
Institutional (B) -1.67% 6.50% 7.40%
</TABLE>
10/14/94, Commencement of operations of the Retail and
Institutional Classes
+The quoted performance of the Pacific Capital Diversified Fixed Income Fund
("Fund") includes the performance of certain common trust fund ("Commingled")
accounts advised by Hawaiian Trust Company and managed the same as the Fund in
all material respects, for periods dating back to January 31, 1987, and prior
to the Fund's commencement of operations on October 14, 1994, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were
not registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Merrill Lynch Corporate and Government Master Index 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 NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
The bond markets were volatile during the six months ended January 31, 1997,
mainly due to conflicting data about the strength of the economy and the
outlook for inflation. Interest rates on 30-Year Treasury Bonds ranged from as
low as 6.35% to as high as 7.15% during the period.
Investors' concerns about the dollar's strength relative to the Japanese yen
also created uncertainty in the bond market. Some bondholders feared that the
strong dollar would make it more expensive for Japanese institutional investors
to buy U.S. bonds. Finally, the stock market's strong performance through
January drew money away from bonds, putting pressure on the fixed-income
market.
We expected that the economy's growth rate would slow down, inflation would
remain under control and interest rates would decline. Thus, we maintained the
Fund's duration throughout the period at around 20% to 30% longer than the
duration of its index, the Merrill Lynch Corporate & Government Master Index.
(Longer-duration portfolios generally outperform short-duration portfolios
during periods of falling interest rates.) That strategy generally helped the
Fund's performance, as interest rates ended the period at around 6.79%-- about
one half of one percentage point lower than they had started.
14
<PAGE>
We continued to favor high-quality issues because of the uncertain economic
outlook and the bond market's volatility. New funds received were invested for
the most part in Treasuries because there was a shortage of high-quality
corporate new issues, making them very expensive. We also favored non-callable
bonds, which generally perform better in a declining interest-rate environment.
That high-quality approach dampened the performance of the Fund, which posted
a total return for the six month period of 4.06%/1/ (returns are for Retail
Class without the sales charge), compared to 4.75% for its benchmark. Investors
favored lower-quality "junk" bonds that offered more yield than other issues,
and junk bonds outperformed higher-quality issues as a result. We continue to
believe that investors are not being compensated enough for taking on the extra
risk in these lower-quality bonds, and we will continue to favor quality and
liquidity in our issue selection.
We believe that economic growth will be moderate and inflation will remain in
check during the coming period. Already in 1997, we've seen interest rates
continue to decline, easing investors' inflation fears. We will maintain the
Fund's duration strategy as long as we expect interest rates to keep declining.
We also will continue to focus on high-quality issues--especially since the
financial soundness of some companies involved in recent acquisitions has
become questionable.
- --------
/1/With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of -0.14% for the six-month period.
15
<PAGE>
PACIFIC CAPITAL TAX-FREE SECURITIES FUND
"We have continued to improve the credit quality of the portfolio to help
offset the risk of maintaining a longer duration."--Yvonne Lim, Portfolio
Manager
Pacific Capital Tax-Free Securities Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Brothers
20-Year Municipal Institutional (B) Lehman Brothers
Bond Index ++ Retail (A)* No Load Municipal Bond Index++
----------------- ----------- ----------------- ----------------------
<S> <C> <C> <C> <C>
1/31/87 10,000 9,593 10,000 10,000
1/31/88 10,150 9,804 10,240 10,205
1/31/89 11,311 10,602 11,104 11,080
1/31/90 12,220 11,401 11,968 11,970
1/31/91 13,359 12,154 12,800 13,076
1/31/92 14,864 13,374 14,112 14,503
1/31/93 16,519 14,518 15,360 15,930
1/31/94 18,931 16,205 17,184 17,884
1/31/95 18,000 15,331 16,341 17,247
1/31/96 21,063 17,540 18,723 19,844
1/31/97 21,868 17,995 19,257 20,605
</TABLE>
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
---------------------------
01/31/97 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -1.51% 5.25% 6.05%
Institutional (B) 2.85% 6.40% 6.78%
<CAPTION>
12/31/96 1 Year 5 Year 10 Year
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* -1.09% 5.23% 6.23%
Institutional (B) 3.20% 6.38% 6.94%
</TABLE>
10/14/94, Commencement of operations of the Retail and
Institutional Classes
+The quoted performance of the Pacific Capital Tax-Free Securities Fund
("Fund") includes the performance of certain common trust fund ("Commingled")
accounts advised by Hawaiian Trust Company and managed the same as the Fund in
all material respects, for periods dating back to January 31, 1987, and prior
to the Fund's commencement of operations on October 14, 1994, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were
not registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Fund has chosen to change the current benchmark of the Lehman Brothers
20-Year Municipal Bond Index to the Lehman Brothers Municipal Bond Index since
the Lehman Brothers Municipal Bond Index better reflects the Fund's focus of a
broader range of maturities. The indices do not reflect the deduction of
expenses 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 NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
Cash flows continued to help the stock market dominate the financial
spotlight during the six months ended January 31, 1997. The bond markets
teetered between fears of excessive growth and exhilaration over low inflation.
Despite the resulting volatility, the bond markets performed well, with the 30-
year Treasury bond yield declining 17 basis points, in contrast to an increase
of 101 basis points during the previous six months. The municipal market
tracked the performance of the Treasury market, with the 30-year AAA general
obligation bond yield declining 16 basis points compared to an increase of 39
basis points during the previous six-month period.
Fears of a flat tax, which plagued the municipal market early in the last
Presidential campaign, have completely dissipated. This, coupled with a
relatively low supply of munis, had caused municipal yields to fall relative to
Treasury yields. The ratio of muni yields to Treasury yields had reached a high
in excess of 90% at the height of the flat-tax debate and has dropped to a low
of 80% since the election.
We continued to maintain a relatively long average maturity of approximately
9.2 years for the Fund in light of the income objective and our belief that
economic growth will slow due to high consumer
16
<PAGE>
debt levels. Bearing in mind the Fund's additional objective of principal
preservation, we have continued to improve the credit quality of the portfolio
to help offset the risk of maintaining a longer duration. We also continued to
avoid the electric-utility and health-care sectors due to continuing reform in
those industries. In addition, we have continued to purchase secondary
insurance to attach to some Hawaii municipal bonds that we deem to be under
downgrade pressure as the state's economy continues to be soft. As a
consequence of our focus on credit quality, approximately 78% of the portfolio
is rated AAA and 22% is rated AA, the two highest ratings for municipal
securities.
The Fund had a total return for the six-month period of 3.81%/1/ (returns are
for Retail Class without the sales charge) versus 4.50% and 4.15% for its
benchmarks, the Lehman Brothers 20-Year Municipal Bond Index and the Lehman
Brothers Municipal Bond Index. The underperformance of the Fund is due to the
lagging relative performance of the Hawaii municipal sector, which comprises
between 50% to 60% of the Fund's portfolio. In addition, the Fund's high
quality relative to its index also dampened performance during a period when
credit quality spreads narrowed as a result of low supply. Consistent with the
objective of the Fund, our strategy is to emphasize credit quality over yield
for long-term performance.
- --------
*The Fund's income may be subject to the federal alternative minimum tax and to
certain state and local taxes.
/1/With the maximum sales charge of 4.00%, the Fund's Retail Class shares had a
total return of -0.39% for the six-month period.
17
<PAGE>
PACIFIC CAPITAL TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
"We intend to maintain the high quality of the portfolio and extend the
portfolio maturity opportunistically."--Yvonne Lim, Portfolio Manager
Pacific Capital Tax-Free Short Intermediate Securities Fund+
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Brothers
5-Year Municipal Institutional (B)
Bond Index++ Retail (A)* No Load
-------------- ----------- -----------------
<S> <C> <C> <C>
3/31/88 10,000 9,776 10,000
1/31/89 10,450 9,974 10,229
1/31/90 11,236 10,540 10,837
1/31/91 12,274 11,171 11,505
1/31/92 13,526 12,053 12,448
1/31/93 14,688 12,658 13,110
1/31/94 15,423 13,368 13,871
1/31/95 15,772 13,105 13,674
1/31/96 17,567 14,107 14,754
1/31/97 18,191 14,477 15,184
</TABLE>
* Reflects 2.25% Maximum Sales Charge
Past performance is not predictive of future results.
<TABLE>
<CAPTION>
Average Annual Total Return
-------------------------------
Since
Inception
07/31/96 1 Year 5 Year (3/31/88)
-------- ------ ------ ---------
<S> <C> <C> <C>
Retail (A)* 0.27% 3.26% 4.27%
Institutional (B) 2.91% 4.05% 4.83%
<CAPTION>
Since
Inception
12/31/96 1 Year 5 Year (3/31/88)
-------- ------ ------ -------
<S> <C> <C> <C>
Retail (A)* 0.63% 3.33% 4.28%
Institutional (B) 3.19% 4.13% 4.84%
</TABLE>
10/14/94, Commencement of operations of the
Retail and Institutional Classes
+The quoted performance of the Pacific Capital Tax-Free Short Term Intermediate
Securities Fund ("Fund") includes the performance of certain common trust fund
("Commingled") accounts advised by Hawaiian Trust Company and managed the same
as the Fund in all material respects for periods dating back to March 31,
1988, and prior to the Fund's commencement of operations on October 14, 1994,
as adjusted to reflect the expenses associated with the Fund. The Commingled
accounts were not registered with the Securities and Exchange Commission under
the Investment Company Act of 1940 and therefore were not subject to the
investment restrictions imposed by law on registered mutual funds. If the
Commingled accounts had been registered, the Commingled accounts' performance
may have been adversely affected.
++The Lehman Brothers 5-Year Municipal Bond Index is an unmanaged index which
tracks bonds with a maturity range of four to six years. It is important to
note that the Fund only may invest in bonds with a maturity range of five
years or less. Neither index reflects 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 NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Past performance
is not indicative of future results.
The continued uncertainty over the strength of the economy caused bond market
sentiment to shift between expectations that the Federal Reserve would tighten
or ease credit. Citing low inflation and sustainable growth, the Federal
Reserve has maintained a neutral stance since it moved to reduce short-term
rates in January 1996. However, Fed Chairman Alan Greenspan has voiced the need
to remain vigilant toward potential inflationary pressures arising from a tight
labor market and the wealth created by the stock market's advance.
During the six months ended January 31, 1997, short-term municipal securities
saw very little improvement, after experiencing a sharp decline in the previous
six months. Treasuries with comparable maturities fared better, as their yields
dropped more significantly. Despite municipals' recent underperformance
relative to Treasuries, municipal yields relative to Treasury yields have
remained persistently low, running between 63% to 70%. This is largely due to
the lack of supply in the muni market accompanied by increased demand as more
investors choose the lower volatility and safety of short-term bonds rather
than the potentially
18
<PAGE>
higher returns of longer-term maturities. Unlike longer-term municipal
securities, short-term municipal securities did not experience a decline when
flat-tax proposals posed a concern for investors. On the contrary, they may
even have benefited, as some investors chose to sacrifice yield for safety.
The Fund had a total return for the six-month period of 2.41%/1/ (returns are
for Retail Class without the sales charge), compared to 3.26% for its
benchmark, the Lehman Brothers 5-Year Municipal Bond Index. This lagging
performance is due to the fact that the Fund was structured with principal
preservation in mind. Although we believe that interest rates will decline, we
have not been aggressive in extending the average maturity as we would have
been if municipal yields relative to Treasury yields were more attractive.
Instead, we have sought to extend only when we can pick up attractive spreads
through swaps. The higher credit quality of the Fund also has dampened
performance in an environment where quality spreads have narrowed, favoring the
performance of lower-quality portfolios.
Looking ahead, we expect inflation to remain low and economic growth to slow
down due to high consumer-debt levels. This combination should create an
environment for interest rates to decline. We intend to maintain the high
quality of the portfolio and extend the portfolio maturity opportunistically.
- --------
*The Fund's income may be subject to the federal alternative minimum tax and to
certain state and local taxes.
/1/With a maximum sales charge of 2.25%, the Fund's Retail Class shares had a
total return of 0.11% for the six-month period.
19
<PAGE>
TABLE OF CONTENTS
Statements of Assets and Liabilities
Page 21
Statements of Operations
Page 23
Statements of Changes in Net Assets
Page 25
Schedules of Portfolio Investments
Page 28
Notes to Financial Statements
Page 46
Financial Highlights
Page 55
20
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(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 $127,599,957;
$22,653,441;
$21,598,711; and
$81,006,171
respectively).......... $182,822,868 $23,588,455 $21,543,539 $ 99,658,926
Interest and dividends
receivable............. 199,249 607,672 301,616 134,439
Receivable from
investment advisor..... -- 3,152 13,168 --
Receivable for capital
shares issued.......... 41,678 -- -- 28,010
Receivable from brokers
for investments sold... 995,646 1,801,617 -- 1,910,181
Prepaid expenses and
other assets........... 5,503 60 562 4,868
------------ ----------- ----------- ------------
Total Assets.......... 184,064,944 26,000,956 21,858,885 101,736,424
------------ ----------- ----------- ------------
LIABILITIES:
Dividends payable....... -- 7,748 6,593 --
Payable to brokers for
investments purchased.. -- 1,951,063 -- 4,509,462
Accrued expenses and
other payables:
Investment advisory
fees.................. 125,708 12,133 5,627 61,668
Administration fees.... 25,142 3,236 2,814 12,334
Distribution fees--Re-
tail Class............ 1,192 225 140 383
Legal and audit fees... 27,547 4,072 3,855 11,018
Printing costs......... 21,507 5,034 3,298 9,420
Fund accounting and
transfer agent fees... 9,372 3,869 3,915 6,369
Other liabilities...... 12,260 3,840 5,469 7,536
------------ ----------- ----------- ------------
Total Liabilities..... 222,728 1,991,220 31,711 4,618,190
------------ ----------- ----------- ------------
NET ASSETS:
Capital................. 122,522,104 27,073,352 21,990,496 75,907,742
Undistributed
(distributions in
excess of) net
investment income...... (41,142) (40,001) -- 47,594
Accumulated
undistributed net
realized gains (losses)
from investment
transactions........... 6,138,343 (3,958,629) (108,150) 2,510,143
Unrealized appreciation
(depreciation) from
investments............ 55,222,911 935,014 (55,172) 18,652,755
------------ ----------- ----------- ------------
Net Assets............ $183,842,216 $24,009,736 $21,827,174 $ 97,118,234
============ =========== =========== ============
Net Assets
Retail Class........... $ 5,867,619 $ 1,073,036 $ 655,556 $ 1,974,374
Institutional Class.... 177,974,597 22,936,700 21,171,618 95,143,860
------------ ----------- ----------- ------------
Total................. $183,842,216 $24,009,736 $21,827,174 $ 97,118,234
============ =========== =========== ============
Outstanding units of
beneficial interest
(shares)
Retail Class........... 407,069 116,357 69,317 138,771
Institutional Class.... 12,341,733 2,485,363 2,234,660 6,685,050
------------ ----------- ----------- ------------
Total................. 12,748,802 2,601,720 2,303,977 6,823,821
============ =========== =========== ============
Net Asset Value
Retail Class--redemp-
tion price per share.. $ 14.41 $ 9.22 $ 9.46 $ 14.23
============ =========== =========== ============
Retail Class--maximum
sales charge.......... 4.00% 4.00% 2.25% 4.00%
------------ ----------- ----------- ------------
Retail Class--maximum
offering price per
share
(100%/(100%--maximum
sales charge) of net
asset value adjusted
to nearest cent)...... $ 15.01 $ 9.60 $ 9.68 $ 14.82
============ =========== =========== ============
Institutional Class--
offering and redemp-
tion price per share.. $ 14.42 $ 9.23 $ 9.47 $ 14.23
============ =========== =========== ============
</TABLE>
See notes to financial statements.
21
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TAX-FREE
DIVERSIFIED TAX-FREE SHORT INTERMEDIATE
FIXED INCOME SECURITIES SECURITIES NEW ASIA
FUND FUND FUND GROWTH FUND
------------ ------------ ------------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $134,479,908;
$275,511,124;
$38,006,520; and
$15,225,512
respectively).......... $134,201,233 $290,728,432 $38,450,367 $17,177,529
Foreign currency (Cost
$276,500).............. -- -- -- 277,198
Interest and dividends
receivable............. 2,513,013 3,635,370 405,660 16,963
Receivable for capital
shares issued.......... 5,802 -- 52,794 23,983
Unamortized organization
costs.................. -- -- -- 815
Prepaid expenses and
other assets........... 17,436 2,297 154 1,113
------------ ------------ ----------- -----------
Total Assets.......... 136,737,484 294,366,099 38,908,975 17,497,601
------------ ------------ ----------- -----------
LIABILITIES:
Cash overdraft.......... -- 167,130 37,611 --
Dividends payable....... 43,986 79,102 8,307 1,931
Payable for capital
shares redeemed........ 3,303 -- -- --
Accrued expenses and
other payables:
Investment advisory
fees.................. 74,977 149,154 16,508 12,912
Administration fees.... 19,994 39,774 4,952 2,152
Legal and audit fees... 22,436 43,235 6,032 2,676
Printing costs......... 17,706 32,440 4,596 8,864
Distribution fees--Re-
tail Class............ 263 144 164 571
Fund accounting and
transfer agent fees... 8,371 12,300 5,961 5,768
Other liabilities...... 8,396 12,749 8,767 10,094
------------ ------------ ----------- -----------
Total Liabilities..... 199,432 536,028 92,898 44,968
------------ ------------ ----------- -----------
NET ASSETS:
Capital................. 138,017,894 278,291,649 38,336,488 15,530,883
Undistributed (distribu-
tion in excess of) net
investment income...... -- -- -- (29,150)
Accumulated
undistributed net
realized gains (losses)
from investment
transactions........... (1,201,167) 321,114 35,742 53,526
Accumulated net realized
losses from foreign
currency transactions.. -- -- -- (55,341)
Unrealized appreciation
(depreciation) from
investments............ (278,675) 15,217,308 443,847 1,951,017
Unrealized appreciation
from translation of
assets and liabilities
in foreign currency.... -- -- -- 1,698
------------ ------------ ----------- -----------
Net Assets............ $136,538,052 $293,830,071 $38,816,077 $17,452,633
============ ============ =========== ===========
Net Assets
Retail Class........... $ 1,282,844 $ 683,191 $ 831,310 $ 2,796,807
Institutional Class.... 135,255,208 293,146,880 37,984,767 14,655,826
------------ ------------ ----------- -----------
Total................. $136,538,052 $293,830,071 $38,816,077 $17,452,633
============ ============ =========== ===========
Outstanding units of
beneficial interest
(shares)
Retail Class........... 122,256 64,903 82,391 215,894
Institutional Class.... 12,799,732 27,794,429 3,748,860 1,128,287
------------ ------------ ----------- -----------
Total................. 12,921,988 27,859,332 3,831,251 1,344,181
============ ============ =========== ===========
Net Asset Value
Retail Class--redemp-
tion price per share.. $ 10.49 $ 10.53 $ 10.09 $ 12.95
============ ============ =========== ===========
Retail Class--maximum
sales charge.......... 4.00% 4.00% 2.25% 5.25%
------------ ------------ ----------- -----------
Retail Class--maximum
offering price per
share
(100%/(100%--maximum
sales charge) of net
asset value
adjusted to nearest
cent)................. $ 10.93 $ 10.97 $ 10.32 $ 13.67
============ ============ =========== ===========
Institutional Class--
offering and redemp-
tion price per share.. $ 10.57 $ 10.55 $ 10.13 $ 12.99
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
22
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
U.S. TREASURY U.S. TREASURY
GROWTH STOCK SECURITIES SECURITIES GROWTH AND
FUND FUND FUND INCOME FUND
------------ ------------- ------------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 54,129 $ 826,338 $ 720,221 $ --
Dividend income......... 1,514,239 8,254 6,779 856,378
Foreign tax withholding. (711) -- -- --
----------- ---------- --------- -----------
Total Income.......... 1,567,657 834,592 727,000 856,378
----------- ---------- --------- -----------
EXPENSES:
Investment advisory
fees................... 762,065 73,469 60,045 333,135
Administration fees..... 191,959 24,677 24,018 84,002
Distribution fees--Re-
tail Class............. 20,853 3,955 3,286 5,599
Custodian fees.......... 9,731 822 2,329 4,157
Accounting fees......... 29,681 4,226 4,497 13,781
Legal and audit fees.... 25,901 3,312 3,406 11,733
Trustees' fees and ex-
penses................. 8,903 740 1,198 3,735
Transfer agent fees..... 10,351 6,855 6,624 7,634
Registration and filing
fees................... 6,133 480 1,624 4,510
Printing costs.......... 13,229 1,110 1,523 5,716
Other expenses.......... 3,798 595 549 1,600
----------- ---------- --------- -----------
Total expenses before
voluntary fee reduc-
tions................ 1,082,604 120,241 109,099 475,602
Expenses voluntarily
reduced.............. (53,504) (7,732) (32,615) (21,125)
----------- ---------- --------- -----------
Net Expenses.......... 1,029,100 112,509 76,484 454,477
----------- ---------- --------- -----------
Net Investment Income... 538,557 722,083 650,516 401,901
----------- ---------- --------- -----------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains
(losses) from invest-
ment transactions...... 10,472,339 (49,162) (9,331) 3,121,770
Net change in unrealized
appreciation/
depreciation from
investments............ 25,949,534 333,646 150,973 12,827,147
----------- ---------- --------- -----------
Net realized/unrealized
gains from investments. 36,421,873 284,484 141,642 15,948,917
----------- ---------- --------- -----------
Change in net assets re-
sulting from opera-
tions.................. $36,960,430 $1,006,567 $ 792,158 $16,350,818
=========== ========== ========= ===========
</TABLE>
See notes to financial statements.
23
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1997
(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.......... $ 5,305,487 $ 8,467,387 $ 921,082 $ --
Dividend income.......... 52,208 29,796 11,306 162,977
Foreign tax withholding.. -- -- -- (12,013)
----------- ----------- ---------- ----------
Total Income........... 5,357,695 8,497,183 932,388 150,964
----------- ----------- ---------- ----------
EXPENSES:
Investment advisory fees. 493,638 888,363 99,918 64,268
Administration fees...... 165,677 298,406 40,271 14,409
Distribution fees--Retail
Class................... 4,379 2,359 2,926 9,072
Custodian fees........... 5,226 14,371 4,917 29,262
Accounting fees.......... 27,305 52,775 9,299 7,450
Legal and audit fees..... 21,586 39,932 5,430 2,255
Organization costs....... -- -- -- 11,913
Trustees' fees and
expenses................ 7,376 14,247 1,938 415
Transfer agent fees...... 9,705 12,833 7,086 6,209
Registration and filing
fees.................... 17,754 2,799 5,966 1,562
Printing costs........... 10,050 18,851 2,811 8,742
Other Expenses........... 3,202 5,855 870 140
----------- ----------- ---------- ----------
Total expenses before
voluntary fee
reductions and
reimbursements......... 765,898 1,350,791 181,432 155,697
Expenses voluntarily
reduced................ (36,971) (63,088) (12,255) (17,551)
----------- ----------- ---------- ----------
Net Expenses........... 728,927 1,287,703 169,177 138,146
----------- ----------- ---------- ----------
Net Investment Income.... 4,628,768 7,209,480 763,211 12,818
----------- ----------- ---------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from investment
transactions............ (1,190,083) 371,773 102,931 20,738
Net realized losses from
foreign currency
transactions............ -- -- -- (10,962)
Net change in unrealized
appreciation/depreciation
from investments........ 3,454,789 3,601,394 152,335 2,390,246
Net change in unrealized
appreciation/depreciation
from translation of
assets and liabilities
in foreign currencies... -- -- -- 588
----------- ----------- ---------- ----------
Net realized/unrealized
gains from investments
and
foreign currencies...... 2,264,706 3,973,167 255,266 2,400,610
----------- ----------- ---------- ----------
Change in net assets
resulting from
operations.............. $ 6,893,474 $11,182,647 $1,018,477 $2,413,428
=========== =========== ========== ==========
</TABLE>
See notes to financial statements.
24
<PAGE>
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,
1997 1996 1997 1996 1997 1996
------------ ------------- ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income.. $ 538,557 $ 1,444,330 $ 722,083 $ 1,665,167 $ 650,516 $ 1,106,083
Net realized gains
(losses) from
investment
transactions.......... 10,472,339 2,853,413 (49,162) 610,897 (9,331) (66,180)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 25,949,534 9,013,715 333,646 (980,793) 150,973 (370,513)
------------ ------------- ----------- ------------ ----------- -----------
Change in net assets
resulting from
operations............. 36,960,430 13,311,458 1,006,567 1,295,271 792,158 669,390
------------ ------------- ----------- ------------ ----------- -----------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (11,456) (26,967) (31,385) (58,924) (22,645) (44,406)
In excess of net
investment income..... -- -- -- (9,639) -- (3,140)
From net realized gains
from investment
transactions.......... (24) (73,928) -- -- -- (2,008)
In excess of net
realized gains........ -- (168,943) -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................ (617,937) (1,401,180) (730,699) (1,606,243) (627,871) (1,061,677)
In excess of net
investment income..... -- -- -- (262,742) -- (75,078)
From net realized gains
from investment
transactions.......... (777) (2,779,485) -- -- -- --
In excess of net
realized gains........ -- (6,351,795) -- -- -- (35,758)
------------ ------------- ----------- ------------ ----------- -----------
Change in net assets
from shareholder
distributions.......... (630,194) (10,802,298) (762,084) (1,937,548) (650,516) (1,222,067)
------------ ------------- ----------- ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 14,306,782 133,828,085 196,221 1,647,781 2,801,490 18,121,546
Dividends reinvested... 64,567 6,438,745 740,848 1,902,174 50,212 158,516
Cost of shares
redeemed.............. (44,684,765) (105,692,774) (1,399,264) (30,979,541) (5,867,578) (9,729,562)
------------ ------------- ----------- ------------ ----------- -----------
Change in net assets
from share
transactions........... (30,313,416) 34,574,056 (462,195) (27,429,586) (3,015,876) 8,550,500
------------ ------------- ----------- ------------ ----------- -----------
Change in net assets.... 6,016,820 37,083,216 (217,712) (28,071,863) (2,874,234) 7,997,823
NET ASSETS:
Beginning of period.... 177,825,396 140,742,180 24,227,448 52,299,311 24,701,408 16,703,585
------------ ------------- ----------- ------------ ----------- -----------
End of period.......... $183,842,216 $ 177,825,396 $24,009,736 $ 24,227,448 $21,827,174 $24,701,408
============ ============= =========== ============ =========== ===========
SHARE TRANSACTIONS:
Issued................. 1,094,422 11,098,985 21,084 173,866 295,130 1,882,513
Reinvested............. 4,911 541,450 79,925 200,813 5,292 16,520
Redeemed............... (3,301,653) (8,707,702) (150,219) (3,272,020) (618,027) (1,016,011)
------------ ------------- ----------- ------------ ----------- -----------
Change in shares........ (2,202,320) 2,932,733 (49,210) (2,897,341) (317,605) 883,022
============ ============= =========== ============ =========== ===========
</TABLE>
See notes to financial statements.
25
<PAGE>
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 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,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 401,901 $ 897,198 $ 4,628,768 $ 7,564,301 $ 7,209,480 $ 14,113,815
Net realized gains
(losses) from
investment
transactions.......... 3,121,770 4,517,339 (1,190,083) 1,793,439 371,773 2,578,744
Net change in
unrealized
appreciation
(depreciation) from
investments........... 12,827,147 1,140,677 3,454,789 (6,350,290) 3,601,394 (505,505)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 16,350,818 6,555,214 6,893,474 3,007,450 11,182,647 16,187,054
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (5,386) (6,661) (31,238) (29,853) (14,428) (36,401)
In excess of net
investment income..... -- (198) -- (1,073) -- (3,016)
From net realized gains
from investment
transactions.......... (74,382) (10,087) (10,239) -- (3,793) (5,488)
In excess of net
realized gains........ -- -- -- (5,216) -- (2,095)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................ (371,228) (890,537) (4,597,530) (7,534,448) (7,195,052) (14,077,414)
In excess of net
investment income..... -- (26,449) -- (270,854) -- (1,166,451)
From net realized gains
from investment
transactions.......... (3,890,622) (1,430,857) (1,342,055) -- (1,632,634) (2,573,256)
In excess of net
realized gains........ -- -- -- (1,188,466) -- (982,014)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... (4,341,618) (2,364,789) (5,981,062) (9,029,910) (8,845,907) (18,846,135)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 20,491,311 51,831,280 19,532,633 199,818,303 15,308,590 29,212,660
Dividends reinvested... 2,393,269 1,252,724 604,266 891,166 1,603,573 3,570,050
Cost of shares
redeemed.............. (13,362,619) (23,786,655) (47,345,483) (86,706,905) (14,921,496) (22,829,691)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 9,521,961 29,297,349 (27,208,584) 114,002,564 1,990,667 9,953,019
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets.... 21,531,161 33,487,774 (26,296,172) 107,980,104 4,327,407 7,293,938
NET ASSETS:
Beginning of period.... 75,587,073 42,099,299 162,834,224 54,854,120 289,502,664 282,208,726
------------ ------------ ------------ ------------ ------------ ------------
End of period.......... $ 97,118,234 $ 75,587,073 $136,538,052 $162,834,224 $293,830,071 $289,502,664
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued................. 1,496,512 4,307,112 1,834,763 18,193,814 1,453,123 2,767,223
Reinvested............. 177,498 105,986 56,457 80,018 151,010 333,366
Redeemed............... (987,829) (1,958,541) (4,437,825) (7,867,181) (1,409,466) (2,160,738)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares........ 686,181 2,454,557 (2,546,605) 10,406,651 194,667 939,851
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
26
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TAX-FREE SHORT
INTERMEDIATE SECURITIES
FUND NEW ASIA GROWTH FUND
-------------------------- --------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JANUARY 31, JULY 31, JANUARY 31, JULY 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................... $ 763,211 $ 1,577,123 $ 12,818 $ (4,037)
Net realized gains from
investment transactions.. 102,931 247,802 20,738 187,718
Net realized losses from
foreign currency
transactions............. -- -- (10,962) (55,916)
Net change in unrealized
appreciation
(depreciation) from
investments.............. 152,335 (381,865) 2,390,246 (603,577)
Net change in unrealized
appreciation
(depreciation) from
translation
of assets and liabilities
in foreign currencies.... -- -- 588 3,412
----------- ----------- ----------- -----------
Change in net assets
resulting from operations. 1,018,477 1,443,060 2,413,428 (472,400)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................... (13,864) (12,490) (1,484) --
In excess of net
investment income........ -- (1,065) -- (1,121)
From net realized gains
from investment
transactions............. (986) -- (24,563) (15,201)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................... (749,347) (1,564,633) (15,241) --
In excess of net
investment income........ -- (133,354) -- (7,846)
From net realized gains
from investment
transactions............. (49,245) -- (130,393) (63,590)
----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions. (813,442) (1,711,542) (171,681) (87,758)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 2,627,703 7,865,169 6,247,763 10,749,362
Dividends reinvested...... 56,341 9,183 103,064 59,730
Cost of shares redeemed... (3,996,143) (7,982,805) (1,598,344) (2,981,295)
----------- ----------- ----------- -----------
Change in net assets from
share transactions........ (1,312,099) (108,453) 4,752,483 7,827,797
----------- ----------- ----------- -----------
Change in net assets....... (1,107,064) (376,935) 6,994,230 7,267,639
NET ASSETS:
Beginning of period....... 39,923,141 40,300,076 10,458,403 3,190,764
----------- ----------- ----------- -----------
End of period............. $38,816,077 $39,923,141 $17,452,633 $10,458,403
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued.................... 260,345 773,603 529,147 910,887
Reinvested................ 5,557 907 8,369 5,614
Redeemed.................. (394,984) (788,553) (132,794) (261,382)
----------- ----------- ----------- -----------
Change in shares........... (129,082) (14,043) 404,722 655,119
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
27
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS (98.8%):
Aerospace/Defense (0.7%)
21,925 General Corp......................................... $ 1,337,425
------------
Banks (1.3%):
20,950 BankAmerica Corp..................................... 2,338,544
------------
Beverages (6.0%):
114,000 Coca-Cola Co......................................... 6,597,750
129,675 PepsiCo, Inc......................................... 4,522,416
------------
11,120,166
------------
Chemicals (1.8%):
51,850 Avery Dennison Corp.................................. 1,899,006
43,000 Sigma-Aldrich........................................ 1,365,250
------------
3,264,256
------------
Computers & Peripherals (7.0%):
40,150 Cabletron Systems (b)................................ 1,395,212
52,650 Cisco Systems (b).................................... 3,672,337
41,000 Compaq Computer Corp. (b)............................ 3,561,875
29,000 Hewlett Packard Co................................... 1,526,125
40,125 Informix Corp. (b)................................... 832,594
54,250 Sun Microsystems Inc. (b)............................ 1,722,438
------------
12,710,581
------------
Electrical Equipment (6.7%):
48,850 C-Cube Microsystems Inc. (b)......................... 1,758,600
78,000 General Electric Co.................................. 8,034,000
42,000 SCI Systems Inc. (b)................................. 2,446,500
------------
12,239,100
------------
Electronic & Electrical (1.0%):
18,500 Emerson Electric Co.................................. 1,826,875
------------
Entertainment (1.5%):
38,000 Walt Disney Co....................................... 2,783,500
------------
Financial Services (2.6%):
56,400 Automatic Data Processing, Inc....................... 2,333,550
22,900 Student Loan Marketing Assoc......................... 2,493,237
------------
4,826,787
------------
Food Distributors (3.5%):
91,650 Albertsons, Inc...................................... 3,207,750
95,500 Sysco Corp........................................... 3,139,562
------------
6,347,312
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Food Processing & Packaging (7.3%):
70,250 ConAgra, Inc......................................... $ 3,547,625
49,700 Pioneer Hi-Bred International, Inc................... 3,348,537
126,500 Sara Lee Corp........................................ 4,996,750
26,800 Wm. Wrigley Jr. Co................................... 1,557,750
------------
13,450,662
------------
Funeral Services (1.9%):
118,000 Service Corp. International.......................... 3,422,000
------------
Health Care (2.3%):
106,275 Columbia HCA Healthcare.............................. 4,197,862
------------
Insurance (2.6%):
39,975 American International Group, Inc.................... 4,841,972
------------
Manufacturing (2.0%):
21,000 Illinois Tool Works, Inc............................. 1,714,125
23,300 Minnesota Mining & Manufacturing Co.................. 1,986,325
------------
3,700,450
------------
Medical Supplies (2.5%):
160,000 Biomet, Inc.......................................... 2,480,000
32,175 Medtronic, Inc....................................... 2,203,987
------------
4,683,987
------------
Metal & Mineral Production (0.8%):
56,650 Barrick Gold Corp.................................... 1,522,469
------------
Oil & Gas Exploration (1.9%):
26,325 Mobil Corp........................................... 3,455,156
------------
Oilfield Equipment & Services (0.6%):
9,550 Schlumberger Ltd..................................... 1,061,244
------------
Paint, Varnishes & Enamels (1.5%):
50,250 Sherwin Williams Co.................................. 2,788,875
------------
Pharmaceuticals (13.1%):
69,700 Abbott Laboratories.................................. 3,789,938
47,775 American Home Products Corp.......................... 3,027,741
24,375 Eli Lilly & Co....................................... 2,123,672
95,500 Johnson & Johnson, Inc............................... 5,503,188
62,400 Merck & Co., Inc..................................... 5,662,800
42,400 Pfizer, Inc.......................................... 3,937,900
------------
24,045,239
------------
</TABLE>
Continued
28
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Publishing (1.3%):
63,000 Readers Digest....................................... $ 2,433,375
------------
Restaurants (1.1%):
44,850 McDonald's Corp...................................... 2,040,675
------------
Retail (3.5%):
61,800 Dollar General Corp.................................. 1,915,800
59,750 Kohl's Corp. (b)..................................... 2,322,781
91,650 Wal-Mart Stores, Inc................................. 2,176,688
------------
6,415,269
------------
Semiconductors (4.3%):
49,000 Intel Corp........................................... 7,950,250
------------
Soaps & Cleaning Agents (3.4%):
54,600 Procter & Gamble Co.................................. 6,306,300
------------
Software & Computer Services (5.5%):
44,000 Computer Associates International, Inc............... 1,996,500
59,800 Microsoft (b)........................................ 6,099,600
53,000 Oracle Systems Corp. (b)............................. 2,060,375
------------
10,156,475
------------
Steel (0.5%):
17,050 Nucor Corp........................................... 886,600
------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications (1.5%):
83,000 Alltel Corp............. $ 2,666,375
------------
Tobacco & Tobacco Products (2.2%):
33,650 Philip Morris Cos.,
Inc.................... 4,000,144
------------
Transportation--Air (1.1%):
95,000 Southwest Airlines Co... 2,090,000
------------
Utilities--Telecommunications (5.8%):
60,000 Century Telephone
Enterprises Inc........ 1,882,500
87,000 Frontier Corp........... 1,903,125
45,975 GTE Corp................ 2,160,825
34,400 Northern Telecom Ltd.... 2,532,700
41,300 SBC Communications...... 2,266,338
------------
10,745,488
------------
Total Common Stocks
(cost $126,432,502) 181,655,413
------------
INVESTMENT COMPANY (0.6%):
1,167,455 Banc One Prime Money
Market Fund (Fiduciary
Shares)................ 1,167,455
------------
Total Investment Company (cost
$1,167,455) 1,167,455
------------
Total Investments (cost--
$127,599,957)(a)--(99.4%) 182,822,868
Other assets in excess of
liabilities--(0.6%) 1,019,348
------------
NET ASSETS--(100.0%) $183,842,216
============
</TABLE>
- ------
(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................ $57,981,023
Unrealized deprecia-
tion................ (2,758,112)
-----------
Net unrealized appre-
ciation............. $55,222,911
===========
</TABLE>
(b) Non-income producing securities.
See notes to financial statements.
29
<PAGE>
PACIFIC CAPITAL FUNDS
U.S. TREASURY SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY NOTES (47.2%):
1,900,000 7.13%, 9/30/99.......................................... $ 1,950,179
2,000,000 7.13%, 2/29/00.......................................... 2,057,060
4,000,000 7.75%, 2/15/01.......................................... 4,218,080
980,000 8.00%, 5/15/01.......................................... 1,044,562
1,000,000 7.50%, 2/15/05.......................................... 1,063,700
1,000,000 6.50%, 8/15/05.......................................... 1,000,600
-----------
Total U.S. Treasury Notes (cost $11,033,767) 11,334,181
-----------
U.S. TREASURY BONDS (49.6%):
2,150,000 7.63%, 2/15/07.......................................... 2,249,524
6,800,000 7.25%, 5/15/16.......................................... 7,087,640
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY BONDS, CONTINUED:
2,500,000 7.13%, 2/15/23.......................................... $ 2,567,450
-----------
Total U.S Treasury Bonds (cost $11,270,014) 11,904,614
-----------
INVESTMENT COMPANY (1.4%):
349,660 Bank One Treasury Money
Market Fund (Fiduciary Shares)......................... 349,660
-----------
Total Investment Company (cost $349,660) 349,660
-----------
Total Investments (cost $22,653,441)(a)--(98.2%) 23,588,455
Other assets in excess of liabilities--(1.8%) 421,281
-----------
NET ASSETS--(100.0%) $24,009,736
===========
</TABLE>
- ------
(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................. $1,022,301
Unrealized deprecia-
tion................. (87,287)
----------
Net unrealized appre-
ciation.............. $ 935,014
==========
</TABLE>
See notes to financial statements.
30
<PAGE>
PACIFIC CAPITAL FUNDS
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY NOTES (98.1%):
2,400,000 6.00%, 12/31/97........................................ $ 2,409,720
1,100,000 7.25%, 2/15/98......................................... 1,116,940
500,000 6.75%, 6/30/99......................................... 508,360
1,000,000 7.88%, 11/15/99........................................ 1,046,210
5,000,000 6.25%, 5/31/00......................................... 5,017,200
2,000,000 6.13%, 7/31/00......................................... 1,999,040
2,000,000 6.50%, 5/31/01......................................... 2,019,220
3,500,000 6.25%, 2/15/03......................................... 3,485,965
3,800,000 6.50%, 5/15/05......................................... 3,804,256
-----------
Total U.S. Treasury Notes (cost $21,462,083) 21,406,911
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
INVESTMENT COMPANY (0.6%):
136,628 Bank One Treasury Money Market Fund (Fiduciary
Shares).............................................. $ 136,628
-----------
Total Investment Company (cost $136,628) 136,628
-----------
Total Investments (cost $21,598,711)(a)--(98.7%) 21,543,539
Other assets in excess of liabilities--(1.3%) 283,635
-----------
NET ASSETS--(100.0%) $21,827,174
===========
</TABLE>
- ------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized apprecia-
tion................. $ 102,901
Unrealized deprecia-
tion................. (158,073)
---------
Net unrealized depre-
ciation.............. $ (55,172)
=========
</TABLE>
See notes to financial statements.
31
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (98.5%):
Aerospace/Defense (1.1%):
10,300 Boeing Co.............................................. $ 1,103,387
-----------
Automotive Parts (1.8%):
46,375 Lear Corporation (b)................................... 1,733,266
-----------
Banking (7.2%):
26,575 Bank of Boston Corp.................................... 1,893,469
19,975 BankAmerica Corp....................................... 2,229,709
46,325 Great Western Financial Corporation.................... 1,465,028
39,475 MBNA Corporation....................................... 1,361,887
-----------
6,950,093
-----------
Beverages (2.0%):
56,500 PepsiCo, Inc........................................... 1,970,437
-----------
Chemicals (2.9%):
16,350 E.I. Du Pont De Nemours Co............................. 1,792,369
31,500 Sigma-Aldrich.......................................... 1,000,125
-----------
2,792,494
-----------
Computers & Peripherals (4.2%):
17,400 Cisco Systems (b)...................................... 1,213,650
20,075 Compaq Computer Corporation (b)........................ 1,744,015
37,225 Sun Microsystems, Inc. (b)............................. 1,181,894
-----------
4,139,559
-----------
Containers--Metal, Glass, Paper, Plastic (1.0%):
23,625 Bemis, Inc............................................. 965,672
-----------
Electrical Equipment (6.7%):
29,400 General Electric Co.................................... 3,028,200
26,025 Rockwell International Corp............................ 1,711,144
30,300 SCI Systems, Inc. (b).................................. 1,764,975
-----------
6,504,319
-----------
Financial Services (3.7%):
45,225 Paine Webber Group Inc................................. 1,577,222
18,800 Student Loan Marketing Assoc........................... 2,046,850
-----------
3,624,072
-----------
Food Distributors (0.7%):
20,550 Albertsons, Inc........................................ 719,250
-----------
Food Processing & Packaging (2.8%):
19,175 Conagra, Inc........................................... 968,337
71,675 Hormel Foods Corp...................................... 1,711,241
-----------
2,679,578
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Funeral Services (1.1%):
36,175 Service Corp. International............................ $ 1,049,075
-----------
Health Care (1.1%):
28,250 Columbia HCA Healthcare................................ 1,115,875
-----------
Heavy Machinery--Industrial, Farm,
Construction (2.2%):
25,875 Harnischfeger Industries, Inc.......................... 1,148,203
21,650 Ingersoll-Rand Co...................................... 987,781
-----------
2,135,984
-----------
Insurance (3.7%):
12,575 American International Group, Inc...................... 1,523,147
38,850 Travelers, Inc......................................... 2,034,769
-----------
3,557,916
-----------
Leisure--Recreation, Gaming (1.4%):
36,400 Carnival Corp. Cruise Lines............................ 1,337,700
-----------
Medical Supplies (2.1%):
13,175 Medtronic, Inc......................................... 902,487
14,225 Pacificare Health System (b)........................... 1,141,556
-----------
2,044,043
-----------
Primary Metal and Mineral Production (0.7%)
25,050 Barrick Gold Corporation............................... 673,219
-----------
Oil & Gas Exploration, Production, &
Services (8.0%):
16,350 Amoco Corp............................................. 1,422,450
18,475 Exxon Corp............................................. 1,914,472
10,775 Mobil Corp............................................. 1,414,219
29,900 Phillips Petroleum Co.................................. 1,319,337
11,675 Texaco Inc............................................. 1,236,090
15,775 Union Pacific Resources................................ 447,616
-----------
7,754,184
-----------
Oilfield Equipment & Services (2.2%):
11,775 Schlumberger Ltd....................................... 1,308,497
13,350 Transocean Offshore Inc................................ 874,425
-----------
2,182,922
-----------
Paint, Varnishes, Enamels (1.0%):
16,875 Sherwin Williams Co.................................... 936,562
-----------
Pharmaceuticals (6.9%):
22,600 American Home Products Corp............................ 1,432,275
</TABLE>
Continued
32
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, continued:
33,550 Johnson & Johnson, Inc................................. $ 1,933,319
19,300 Merck & Co. Inc........................................ 1,751,475
16,750 Pfizer, Inc............................................ 1,555,656
-----------
6,672,725
-----------
Publishing, Except Newspaper (1.2%):
23,525 McGraw Hill, Inc....................................... 1,170,369
-----------
Restaurants (1.9%):
82,950 Wendy's International.................................. 1,824,900
-----------
Retail (3.7%):
29,950 Dollar General Corp.................................... 928,450
17,825 May Department Stores.................................. 793,212
27,800 Walgreen Co............................................ 1,143,275
26,750 The Gap................................................ 769,063
-----------
3,634,000
-----------
Semiconductors (4.0%):
18,450 C-Cube Microsystems Inc. (b)........................... 664,200
19,925 Intel Corp............................................. 3,232,831
-----------
3,897,031
-----------
Soaps & Cleaning Agents (1.7%):
14,075 Procter & Gamble Co.................................... 1,625,663
-----------
Software & Computer Services (4.6%):
23,800 Computer Associates International, Inc................. 1,079,925
22,175 Microsoft Corp. (b).................................... 2,261,850
28,775 Oracle Systems Corp. (b)............................... 1,118,628
-----------
4,460,403
-----------
Steel (1.2%):
21,825 Nucor Corp............................................. 1,134,900
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Textile Products (1.1%)
15,775 Fila Holding Spa (b).................................. $ 1,080,588
-----------
Tobacco & Tobacco Products (1.7%):
13,500 Philip Morris Cos., Inc............................... 1,604,813
-----------
Toys & Bicycles--Manufacturing (1.4%):
49,725 Mattel, Inc........................................... 1,398,516
-----------
Transportation (1.9%):
30,900 Illinois Central Corp................................. 1,011,975
41,575 Comair Holdings, Inc.................................. 847,091
-----------
1,859,066
-----------
Utilities--Electric (3.1%):
44,800 Illinova Corp......................................... 1,181,600
84,075 Southern Co........................................... 1,839,141
-----------
3,020,741
-----------
Utilities--Telecommunications (6.5%):
28,025 Century Telephone Enterprises, Inc.................... 879,284
59,675 Frontier Corp......................................... 1,305,391
44,250 GTE Corp.............................................. 2,079,750
37,750 SBC Communications.................................... 2,071,531
-----------
6,335,956
-----------
Total Common Stocks (cost $77,036,523) 95,689,278
-----------
INVESTMENT COMPANY (4.1%):
3,969,648 Banc One Prime Money Market Fund (Fiduciary Shares)... 3,969,648
-----------
Total Investment Company (cost $3,969,648) 3,969,648
-----------
Total Investments (cost--$81,006,171)(a)--(102.6%) 99,658,926
Liabilities in excess of other assets--(-2.6%) (2,540,692)
-----------
NET ASSETS--(100.0%) $97,118,234
===========
</TABLE>
- --------
(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......... $19,765,943
Unrealized
depreciation......... (1,113,188)
-----------
Net unrealized
appreciation......... $18,652,755
===========
</TABLE>
(b) Non income producing securities.
See notes to financial statements.
33
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (44.7%):
Automotive (0.7%):
1,000,000 Ford Motor Co., 7.25%, 10/1/08...................... $ 1,005,000
------------
Banking (4.1%):
700,000 Interamerica Development Bank, 8.50%, 3/15/11....... 805,000
5,000,000 JPM Capital Corp., 7.54%, 1/15/27, Callable 1/15/07
@103.77............................................ 4,825,000
------------
5,630,000
------------
Banking--Foreign (8.6%):
5,000,000 Abbey National PLC, 6.69%, 10/17/05................. 4,887,500
5,000,000 Dresdner Bank-NY, 6.63%, 9/15/05.................... 4,868,750
2,000,000 Swiss Bank Corp.-NY, 6.75%, 7/15/05................. 1,967,500
------------
11,723,750
------------
Electric Utility (9.8%):
5,000,000 Con Edison, 6.63%, 7/1/05, (Insured by AMBAC)....... 4,918,750
1,500,000 Duke Power Co., 8.00%, 11/1/99...................... 1,563,750
1,500,000 National Rural Utility, 6.45%, 4/1/01............... 1,494,375
5,500,000 Union Electric Co., 6.75%,
05/1/08............................................ 5,417,500
------------
13,394,375
------------
Financial Services (12.6%):
5,000,000 Associates Corp. of North America, 6.38%, 11/15/05.. 4,787,500
5,000,000 General Electric Capital Corp., 7.88%, 12/1/06...... 5,350,000
4,000,000 Norwest Financial Inc., 7.50%, 4/15/05.............. 4,140,000
2,850,000 Pitney Bowes, Inc., 6.80%, 10/1/01.................. 2,878,500
------------
17,156,000
------------
Health Care (2.6%):
3,300,000 Johnson & Johnson, 8.72%, 11/1/24................... 3,613,500
------------
Insurance (0.7%):
1,000,000 St. Paul Cos., Inc., 7.29%, 8/28/07................. 1,007,500
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- -------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Oil & Gas--Exploration & Production
Services (2.6%):
1,050,000 Amoco Canada Petroleum Co., 7.95%, 10/1/22.. $ 1,095,938
2,000,000 Shell Oil Co., 6.70%, 8/15/02............... 2,025,000
350,000 Societe Nationale Elf Aquitaine, 8.00%,
10/15/01................................... 370,562
------------
3,491,500
------------
Retail Stores (1.1%):
1,400,000 Wal-Mart Stores, Inc., 8.00%, 9/15/06....... 1,505,000
------------
Telecommunications (1.9%):
2,480,000 Bellsouth Telecommunications, Inc., 7.00%,
2/1/05..................................... 2,504,800
------------
Total Corporate Bonds (cost $61,088,396) 61,031,425
------------
U.S. GOVERNMENT AGENCIES (4.2%):
Federal National Mortgage Association
1,400,000 7.40%, 7/1/04............................... 1,466,346
4,100,000 7.69%, 9/13/06.............................. 4,202,828
------------
Total U.S. Government Agencies
(cost $5,464,897) 5,669,174
------------
U.S. TREASURY NOTES (28.9%):
900,000 5.88%, 8/15/98.............................. 900,810
8,000,000 6.75%, 4/30/00.............................. 8,142,720
5,000,000 6.63%, 7/31/01.............................. 5,072,400
3,500,000 6.25%, 2/15/03.............................. 3,485,965
7,500,000 7.25%, 8/15/04.............................. 7,857,825
14,000,000 6.50%, 5/15/05.............................. 14,015,680
------------
Total U.S. Treasury Notes (cost $39,661,332) 39,475,400
------------
U.S. TREASURY BONDS (18.1%):
14,000,000 7.25%, 5/15/16.............................. 14,592,200
11,000,000 6.25%, 8/15/23.............................. 10,147,060
------------
Total U.S. Treasury Bonds (cost $24,969,968) 24,739,260
------------
PRIVATE PLACEMENT (0.7%):
1,000,000 MIC Financing Trust I,
8.38%, 2/1/27.............................. 1,002,500
------------
Total Private Placement (cost $996,841) 1,002,500
------------
</TABLE>
Continued
34
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
TAXABLE MUNICIPAL BONDS (0.9%):
500,000 Washington State Taxable, 6.58%, 1/1/06.............. $ 494,375
750,000 Washington State Taxable, 6.64%, 1/1/07.............. 740,625
------------
Total Taxable Municipal Bonds
(cost $1,250,000) 1,235,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
INVESTMENT COMPANY (0.8%):
1,048,474 Banc One Prime Money Market
Fund (Fiduciary Shares).............................. $ 1,048,474
------------
Total Investment Company (cost $1,048,474) 1,048,474
------------
Total Investments (cost--$134,479,908)(a)--(98.3%) 134,201,233
Other assets in excess of liabilities--(1.7%) 2,336,819
------------
NET ASSETS--(100.0%) $136,538,052
============
</TABLE>
- ------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 1,143,427
Unrealized depreciation... (1,422,102)
-----------
Net unrealized
depreciation.............. $ (278,675)
===========
</TABLE>
AMBAC AMBAC Indemnity Corp.
See notes to financial statements.
35
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS (80.3%):
California (5.4%):
1,500,000 Metropolitan Water District, 5.00%, 7/1/15, MBIA.... $ 1,406,250
3,000,000 Metropolitan Water District, Southern California,
5.75%, 7/1/21, MBIA................................ 3,007,500
2,565,000 Northern California Transmission, Oregon
Transmission Project,
Series A , 7.00%, 5/1/13, MBIA..................... 3,023,493
1,735,000 San Francisco, Bay Area Rapid Transit, District
Sales Tax Revenue, 5.50%, 7/1/15, FGIC............. 1,717,650
1,745,000 San Francisco California C&C Airport Community,
International Airport Revenues, 5.63%, 5/1/21,
Callable 5/1/06 @ 101 and 5/1/07 @ 100, FGIC....... 1,718,825
5,000,000 State Department Water, Series P, 6.00%, 12/1/20,
Callable 6/1/06
@ 101 and 6/1/07 @ 100............................. 5,137,500
------------
16,011,218
------------
Colorado (0.3%):
1,000,000 Adams & Arapaho County, 5.35%, 12/1/15, FGIC........ 978,750
------------
Connecticut (0.4%):
1,000,000 Connecticut State, Special Tax Obligation Revenue,
6.25%, 10/1/14, FGIC............................... 1,053,750
------------
Florida (7.0%):
2,000,000 Dade County, Water & Sewer, 5.50%, 10/1/15, FGIC.... 1,982,500
3,000,000 Florida State, Board of Education, Series A, 5.50%,
6/1/17............................................. 2,947,500
2,205,000 Florida State, Board of Education, Series E, 5.75%,
6/1/19............................................. 2,213,269
2,000,000 Florida State, Bond Finance Department, General
Services Environmental Revenue, 5.75%, 7/1/13,
AMBAC.............................................. 2,042,500
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Florida, continued:
3,500,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, 5.50%, 7/1/17, FGIC.. $ 3,443,125
2,000,000 Florida State, Turnpike Revenue, Department of
Transportation, Series A, 5.50%, 7/1/21, FGIC...... 1,947,500
2,875,000 Orange County, Public Tax Service, 6.00%, 10/1/24,
FGIC............................................... 2,964,844
2,565,000 Orlando, Utilities Community Water & Electric
Revenue Refunding, Series D, 6.75%, 10/1/17........ 2,965,781
------------
20,507,019
------------
Georgia (2.9%):
1,285,000 Georgia State, Municipal Electric Authority Revenue,
Series B, 6.13%, 1/1/14, FGIC...................... 1,333,188
1,605,000 Metropolitan Atlanta, Rapid Transportation
Authority, Sales Tax Revenue, Series P, 6.25%,
7/1/11, AMBAC...................................... 1,783,556
4,690,000 Municipal Electric Authority, Special Obligation
Third Crossover, 6.60%, 1/1/18, MBIA............... 5,311,425
------------
8,428,169
------------
Hawaii (37.3%):
5,000,000 Hawaii, GO, 6.05%, 1/1/08, FGIC..................... 5,300,000
640,000 Hawaii, GO, 5.50%, 6/1/08, FGIC..................... 656,000
1,345,000 Hawaii, GO, Series BT, 6.38%, 2/1/09, Pre-refunded
2/1/01
@ 101 (b).......................................... 1,449,238
640,000 Hawaii, GO, 5.50%, 6/1/09, FGIC..................... 652,000
1,035,000 Hawaii, GO, 5.00%, 7/1/09, FGIC..................... 1,014,300
2,000,000 Hawaii, GO, 6.00%, 10/1/09, FGIC.................... 2,172,500
4,490,000 Hawaii, GO, Series BT 6.13%, 2/1/10, Pre-refunded
2/1/01
@ 101 (b).......................................... 4,798,688
640,000 Hawaii, GO, Series CE, 5.50%, 6/1/10, FGIC.......... 648,000
</TABLE>
Continued
36
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
4,000,000 Hawaii, GO, Series CK, 5.25%, 9/1/10, FGIC............ $ 3,975,000
3,145,000 Hawaii, GO, 5.25%, 6/1/13, FGIC....................... 3,097,825
1,000,000 Hawaii, GO, Series CL, 5.25%, 3/1/16, FGIC............ 971,250
1,315,000 Hawaii County, GO, 4.50%, 2/1/03...................... 1,306,781
1,375,000 Hawaii County, GO, Series A, 4.50%, 2/1/04, FGIC...... 1,357,813
2,000,000 Hawaii County Series A, 5.50%, 5/1/08, FGIC........... 2,082,500
1,810,000 Hawaii County, GO, Series A, 5.00%, 2/1/10, FGIC...... 1,748,913
1,305,000 Hawaii County, GO, Series A, 7.30%, 6/1/10, Pre-
refunded 6/1/00 @ 101, FGIC (b)...................... 1,435,500
2,095,000 Hawaii County, GO, Series A, 5.10%, 2/1/13, FGIC...... 2,029,531
415,000 Hawaii County, GO, Series A, 5.60%, 5/1/13, FGIC...... 429,006
2,320,000 Hawaii County, GO, 5.20%, 2/1/15...................... 2,256,200
2,000,000 Hawaii State Series CM--6.50%, 12/1/13, FGIC.......... 2,260,000
1,455,000 Hawaii Department Budget & Finance, Queens Health
System, 5.88%, 7/1/11................................ 1,487,737
1,745,000 Hawaii Department Budget & Finance, Queens Health
System, 6.05% , 7/01/16.............................. 1,795,169
1,170,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage, Kapiolani Health Care System, 6.30%,
7/1/08, Callable 7/1/03 @ 102, MBIA.................. 1,262,137
2,535,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage, Kapiolani Health Care System, 6.40%,
7/1/13, Callable 7/1/03 @ 102, MBIA.................. 2,718,787
2,535,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Hawaii Electric Co., 6.88%, 4/1/12,
MBIA................................................. 2,594,699
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
965,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Maui Electric Co. Project, 6.88%,
4/1/12, MBIA....................................... $ 987,726
2,820,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Hawaii Electric Light Co.
Project, 7.20%, 12/1/14, MBIA...................... 3,087,900
1,285,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Kaiser Permanente, Series A,
6.25%, 3/1/21...................................... 1,328,369
965,000 Hawaii Department Transportation, Special Facility
Revenue, 5.75%, 3/1/13............................. 961,381
965,000 Hawaii Harbor Capital Improvement Revenue, 6.20%,
7/1/08, MBIA....................................... 1,030,137
4,525,000 Hawaii Housing Finance & Development Corp., 5.85%,
7/1/17............................................. 4,519,344
1,925,000 Hawaii Housing Finance & Development Corp., Federal
National Mortgage Assoc., 5.70%, 7/1/13............ 1,934,625
4,185,000 Hawaii Housing Finance & Development Corp., Federal
National Mortgage Assoc., 7.00%, 7/1/31............ 4,378,556
1,580,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, Series B, 6.90%,
7/1/16............................................. 1,653,075
2,340,000 Hawaii Housing Finance & Development Corp.,
University of Hawaii Housing, 5.70%, 10/1/25,
AMBAC.............................................. 2,357,550
</TABLE>
Continued
37
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
2,565,000 Honolulu City & County, Series A, 7.35%, 7/1/06,
FGIC................................................ $ 3,039,525
3,000,000 Honolulu City & County, Series A, 6.00%, 1/1/11,
FGIC................................................ 3,228,750
3,000,000 Honolulu City & County, Series A, 5.75%, 4/1/11,
FGIC................................................ 3,142,500
1,605,000 Honolulu City & County, Series A, 5.75%, 4/1/12,
FGIC................................................ 1,689,262
1,380,000 Honolulu City & County, GO, Series A, 5.00%, 11/1/12,
MBIA................................................ 1,323,075
2,890,000 Honolulu City & County, Series A, 5.75%, 4/1/13,
FGIC................................................ 3,034,500
1,480,000 Honolulu City & County, Series C, 7.15%, 6/1/10, Pre-
refunded 6/1/00 @ 101, (b).......................... 1,622,450
1,055,000 Honolulu City & County Water, 6.00%, 12/1/10, FGIC... 1,140,719
1,595,000 Honolulu City & County Water, 6.00%, 12/1/11, FGIC... 1,722,600
640,000 Honolulu City & County Water, 6.00%, 12/1/14, FGIC... 689,600
1,280,000 Honolulu City & County Refunding & Improvement,
Series B, 5.50%, 10/1/11, FGIC...................... 1,316,800
640,000 Honolulu City & County Refunding & Improvement,
Series B, 5.25%, 10/1/12, FGIC...................... 640,800
2,000,000 Honolulu City & County Series A, Callable 9/1/06 @
102 and 9/1/08 @ 100, 5.63%, 9/1/13................. 2,040,000
630,000 Kauai County, 5.35%, 8/1/02.......................... 655,200
695,000 Kauai County, 5.55%, 8/1/04.......................... 730,619
740,000 Kauai County, 5.65%, 8/1/05.......................... 782,550
780,000 Kauai County, 5.75%, 8/1/06.......................... 828,750
925,000 Kauai County, Series C, 5.90%, 8/1/09, AMBAC......... 990,906
1,020,000 Maui County, GO, 5.90%, 6/1/14....................... 1,062,075
1,605,000 Maui County, Series A, 6.80%, 12/1/07, Pre-refunded
12/1/00
@ 101............................................... 1,759,481
645,000 Maui County Refunding, 5.25%, 9/1/06................. 657,094
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
890,000 Maui County Refunding, 5.13%, 12/15/10................ $ 873,312
355,000 Maui County Water, Series A, 6.10%, 12/1/02, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 383,844
375,000 Maui County Water, Series A, 6.20%, 12/1/03, FGIC..... 406,875
400,000 Maui County Water, Series A, 6.30%, 12/1/04, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 436,000
425,000 Maui County Water, Series A, 6.40%, 12/1/05, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 464,844
390,000 Maui County Water, Series A, 6.50%, 12/1/06, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 428,512
380,000 Maui County Water, Series A, 6.60%, 12/1/07, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 418,950
520,000 Maui County Water, Series A, 6.65%, 12/1/08, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 574,600
455,000 Maui County Water, Series A, 6.65%, 12/1/09, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 502,775
595,000 Maui County Water, Series A, 6.70%, 12/1/10, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 658,963
535,000 Maui County Water, Series A, 6.70%, 12/1/11, Pre-
refunded 12/1/01 @ 101, FGIC (b)..................... 592,513
------------
109,576,681
------------
Kansas (1.7%):
2,565,000 Burlington Pollution Control Refunding, Kansas Gas &
Electric Co. Project, 7.00%, 6/1/31.................. 2,818,294
2,000,000 Kansas City, Utilities System, Revenue Refunding &
Improvement, 6.38%, 9/1/23........................... 2,147,500
------------
4,965,794
------------
</TABLE>
Continued
38
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Maine (0.7%):
1,925,000 Maine State Turnpike Authority, Turnpike Revenue,
6.00%, 7/1/14....................................... $ 1,999,594
------------
Massachusetts (2.4%):
3,790,000 Commonwealth of Massachusetts, Series B, 5.50%,
7/1/15.............................................. 3,771,050
2,375,000 Massachusetts State Health & Educational Authority,
Harvard University, Series P, 5.60%, 11/1/16........ 2,380,937
1,000,000 Massachusetts State Water Pollution Abatement Trust,
5.70%, 2/1/13....................................... 1,010,000
------------
7,161,987
------------
Michigan (2.4%):
4,000,000 Michigan Environmental Protection Program, GO, 5.40%,
11/1/19............................................. 3,890,000
1,545,000 Michigan Strategic Obligations Revenue, 6.95%,
5/1/11.............................................. 1,796,062
1,250,000 Saline Area Schools, GO, 5.50%, 5/1/15, FGIC......... 1,245,313
------------
6,931,375
------------
Minnesota (0.8%):
2,000,000 North St. Paul, Maplewood, Independent School
District, No. 622, Series A, 6.88%, 2/1/15, Pre-
refunded 2/1/05 @ 100............................... 2,280,000
------------
New Jersey (1.3%):
2,000,000 New Jersey Wastewater Treatment Trust, Series B,
6.38%, 4/1/14....................................... 2,150,000
1,500,000 South Brunswick Township Board of Education, 6.40%,
8/1/14, FGIC........................................ 1,618,125
------------
3,768,125
------------
New Mexico (2.0%):
2,000,000 Rio Rancho Water & Waste Water Systems Revenue,
Series A, 5.90%, 5/15/15, FSA....................... 2,030,000
1,625,000 Sante Fe, New Mexico, Gross Receipts Tax Revenue,
5.63%, 6/1/16....................................... 1,614,844
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico, continued:
2,085,000 Santa Fe Revenue, 6.25%, 6/1/15, Pre-refunded 6/1/04
@ 100............................................... $ 2,275,256
------------
5,920,100
------------
New York (1.1%):
3,500,000 Triborough Bridge & Tunnel Authority, New York
Revenues, General Purpose, 5.30%, 1/01/17........... 3,368,750
------------
North Carolina (1.2%):
3,085,000 Easton Municipal Power Agency, 6.50%, 1/1/18 (b)..... 3,493,763
------------
Ohio (1.5%):
2,320,000 Cleveland Package Facilities Revenue, 5.50%, 9/15/16. 2,285,200
1,120,000 Cleveland Waterworks Revenue, 6.25%, 1/1/16, MBIA.... 1,170,400
1,000,000 Ohio Water Development Authority, Pollution Control,
5.50%, 12/1/15, MBIA................................ 992,500
------------
4,448,100
------------
Oregon (0.6%):
1,605,000 Umatilla County, School District Number 016R,
Pendleton, 6.00%, 7/1/14, AMBAC..................... 1,675,219
------------
Pennsylvania (1.1%):
3,150,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%*, 3/1/15, FGIC...................... 3,260,250
------------
South Carolina (0.7%):
1,960,000 Piedmont Municipal Power Agency, South Carolina
Electric Refunding, Series A, 6.50%, 1/1/14, FGIC... 2,187,850
------------
Tennessee (3.2%):
6,300,000 Shelby County Refunding, Series A, 5.63%, 4/1/15..... 6,347,250
1,965,000 Shelby County School, Series B, 6.00%, 3/1/19........ 2,016,581
</TABLE>
Continued
39
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Tennessee, continued:
1,000,000 Johnson City, School Sales Tax, 6.70%, 5/1/21......... $ 1,096,250
------------
9,460,081
------------
Texas (2.2%):
1,520,000 Harris County, Certificates of Obligation, 6.00%,
10/1/15.............................................. 1,590,300
1,280,000 Texas State, Public Financial Authority, Series A,
6.00%, 10/1/12....................................... 1,336,000
1,400,000 Texas State, Series Correction, 5.75%, 8/1/18......... 1,419,250
2,000,000 Texas State Refunding, Public Finance Authority,
Series A, 5.95%, 10/1/15............................. 2,072,500
------------
6,418,050
------------
Virginia (4.1%):
3,500,000 Commonwealth of Virginia Public School Authority,
Special Obligation, Chesapeake School, 5.63%, 6/1/15. 3,521,875
2,995,000 Fairfax County Public Improvement, Series A, 5.50%,
6/1/14............................................... 3,009,975
1,000,000 Fairfax County Refunding, Series C, 5.40%, 5/1/11..... 1,008,750
2,750,000 Norfolk Water Revenue, 5.75%, 11/1/13, MBIA........... 2,784,375
1,750,000 Richmond Refunding, 5.20%, 1/15/14.................... 1,695,312
------------
12,020,287
------------
Total Municipal Bonds (cost $224,177,263) 235,914,912
------------
ALTERNATIVE MINIMUM TAX PAPER (18.6%):
Hawaii (18.1%):
740,000 Hawaii Airports System Revenue, 7.00%,7/1/10, FGIC,
AMT.................................................. 814,925
510,000 Hawaii Airports System Revenue, 7.38%, 7/1/11, AMBAC,
AMT.................................................. 559,088
640,000 Hawaii Airports System Revenue, 7.30%, 7/1/20, AMBAC,
AMT.................................................. 699,200
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
Hawaii, continued:
320,000 Hawaii Airports System Revenue, Second Series,
7.50%, 7/1/09, FGIC, AMT........................... $ 352,400
10,585,000 Hawaii Airports System Revenue, Second Series,
6.90%, 7/1/12, MBIA, AMT........................... 12,080,131
1,890,000 Hawaii Airports System Revenue, Second Series,
7.00%, 7/1/18, MBIA, AMT........................... 2,060,100
2,320,000 Hawaii Airports System Revenue, Second Series,
7.50%, 7/1/20, FGIC, AMT........................... 2,549,100
1,500,000 Hawaii Airports System Revenue, Second Series,
6.75%, 7/1/21, MBIA................................ 1,599,375
3,205,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Citizens Utilities Co.
Project, 6.60%, 7/1/22, AMT........................ 3,345,219
1,475,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaiian Electric Co. &
Subsidiaries, 6.55%, 12/1/22, MBIA, AMT............ 1,572,719
7,000,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaii Electric Co.,
Series A, 6.60%, 1/1/25, MBIA, AMT................. 7,463,750
3,000,000 Hawaii Department of Budget & Finance, Special
Purpose Revenue, Series A, Hawaii Electric Co.,
6.20%, 5/1/26, MBIA, AMT........................... 3,101,250
1,500,000 Hawaii State Department Budget & Finance, 5.88%,
12/1/26............................................ 1,481,250
1,825,000 Hawaii Harbor Capital Improvement Revenue, 6.10%,
7/1/07, FGIC, AMT.................................. 1,934,500
</TABLE>
Continued
40
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
Hawaii, continued:
1,605,000 Hawaii Harbor Capital Improvement Revenue, 7.25%,
7/1/10, MBIA, AMT................................... $ 1,753,463
2,245,000 Hawaii Harbor Capital Improvement Revenue, 7.00%,
7/1/17, MBIA, AMT................................... 2,424,600
1,350,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/19, FGIC, AMT................................... 1,431,000
3,205,000 Hawaii Harbor Capital Improvement Revenue, 6.38%,
7/1/24, FGIC, AMT................................... 3,333,200
3,205,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Revenue, Series A, 6.00%, 7/1/26,
AMT................................................. 3,176,956
1,445,000 Honolulu City & County, Series B, 7.25%, 2/1/08,
Callable 2/1/00 @ 102 and 2/1/02 @ 100, FGIC, AMT... 1,558,793
------------
53,291,019
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED:
Oregon (0.5%):
1,500,000 Portland Airports Revenue, International Airport,
Series 10, 5.88%, 7/1/15, AMT....................... $ 1,522,500
------------
Total Alternative Minimum Tax Paper
(cost $51,333,860) 54,813,519
------------
INVESTMENT COMPANY (0.0%):
1 Nuveen Tax Free Money Market Fund.................... 1
------------
Total Investment Company (cost $1) 1
------------
Total Investments (cost--$275,511,124)(a)--(98.9%) 290,728,432
Other assets in excess of other liabilities--(1.1%) 3,101,639
------------
NET ASSETS--(100.0%) $293,830,071
============
</TABLE>
- ------
*Variable rate security. Rate presented represents rate in effect at January
31, 1997. Maturity date reflects final maturity date.
(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........ $15,788,368
Unrealized
depreciation........ (571,060)
-----------
Net unrealized
appreciation........ $15,217,308
===========
</TABLE>
(b) Collateralized by various U.S. Government Securities
AMBAC AMBAC Indemnity Corporation
AMT Alternative Minimum Tax Paper
FGIC Insured by Financial Guaranty Insurance Corp.
FSA Insured by Financial Security Assurance
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
See notes to financial statements.
41
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (16.2%):
Florida (2.7%):
1,000,000 Dade County, Aviation Revenue, 5.75%, 10/1/99......... $ 1,035,000
-----------
Hawaii (8.1%):
1,050,000 Hawaii State Airports System, Revenue, 5.30%, 7/1/99.. 1,072,313
2,000,000 Hawaii State Airports System, Revenue, Second Series,
5.45%, 7/1/00, MBIA.................................. 2,055,000
-----------
3,127,313
-----------
Illinois (1.3%):
500,000 Chicago Illinois O'Hare International Airport 4.90%,
1/1/01............................................... 503,750
-----------
Texas (4.1%):
550,000 Brazos, Higher Education Authority, Series A-2, 5.60%,
6/1/99............................................... 561,000
1,000,000 El Paso Texas Apartment Revenue 5.00%, 8/15/01........ 1,013,750
-----------
1,574,750
-----------
Total Alternative Minimum Tax Paper
(cost $6,150,195) 6,240,813
-----------
MUNICIPAL BONDS (82.9%):
Alaska (2.6%):
1,000,000 Alaska State Housing Finance Corp., 4.60%, 6/1/00..... 1,003,750
-----------
Arizona (3.5%):
750,000 Arizona State Transportation Board, 5.50%, 1/1/00..... 776,250
600,000 Salt River Project, Arizona Agricultural, Series B,
4.45%, 1/1/00........................................ 601,500
-----------
1,377,750
-----------
Hawaii (46.8%):
2,500,000 Hawaii State Airport System Revenue, 5.55%, 7/1/00,
MBIA................................................. 2,590,625
1,500,000 Hawaii State Airport System Revenue Refunding, 5.40%,
7/1/99............................................... 1,537,500
115,000 Hawaii State Community Development Authority, Special
Tax Assessment, 4.20%, 7/1/97........................ 115,061
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Hawaii, continued:
155,000 Hawaii State Community Development Authority, Special
Tax Assessment, 4.20%, 7/1/97........................ $ 155,082
120,000 Hawaii State Community Development Authority, District
#1, Special Tax Assessment, 4.45%, 7/1/98............ 120,900
165,000 Hawaii State Community Development Authority, District
#2, Special Tax Assessment, 4.45%, 7/1/98............ 166,238
3,000,000 Hawaii State, GO, 5.50%, 1/1/00....................... 3,101,250
2,500,000 Hawaii State, GO, Series Cd, 4.60%, 2/1/00............ 2,521,875
1,500,000 Hawaii State, GO, Series Ck, 5.00%, 9/1/00............ 1,535,625
1,200,000 Hawaii State, GO, Series Cl, 4.50%, 3/1/01............ 1,203,000
700,000 Honolulu, City & County GO, Series A, 5.10%, 1/1/00,
FGIC................................................. 715,750
1,000,000 Honolulu, City & County GO, Series A, 4.40%, 11/1/00,
MBIA................................................. 1,002,500
750,000 Honolulu, City & County GO, Series B, 5.10%, 6/1/00... 768,750
850,000 Honolulu, City & County, Series A 4.70%, 09/01/01..... 859,563
375,000 Honolulu, City & County Improvement District, 5.85%,
10/15/97............................................. 380,066
370,000 Honolulu, City & County Improvement District, 6.05%,
10/15/98............................................. 379,250
370,000 Honolulu, City & County Improvement District, 6.20%,
10/15/99............................................. 384,800
620,000 Maui County GO, 5.35%, 6/1/00......................... 640,150
-----------
18,177,985
-----------
Illinois (3.9%):
1,500,000 Metropolitan Pier & Exposition, 4.60%, 12/15/00....... 1,515,000
-----------
Massachusetts (3.4%):
1,265,000 Massachusetts State Construction, Series D, 5.13%,
11/1/00.............................................. 1,307,694
-----------
</TABLE>
Continued
42
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY MARKET
OR SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan (2.6%):
1,000,000 Ypsilanti Michigan School District Ref., GO, 4.60%,
5/1/01, FGIC......................................... $ 1,003,750
-----------
Minnesota (5.8%):
700,000 Minnesota State, GO, 5.00%, 8/1/00.................... 719,250
1,500,000 Minnesota State Revenue, Series A, 5.00%, 6/30/01..... 1,531,875
-----------
2,251,125
-----------
New Jersey (2.6%):
1,000,000 New Jersey State Transit Authority, Series B, 4.50%,
6/15/00, MBIA........................................ 1,005,000
-----------
Oregon (2.6%):
1,000,000 Oregon State, GO, Higher Education, Series C, 4.60%,
3/1/00............................................... 1,011,250
-----------
Rhode Island (3.3%):
1,250,000 Rhode Island Housing & Mortgage Financial Corporation,
5.00%, 7/1/00........................................ 1,276,563
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT SECURITY MARKET
OR SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Texas (1.3%):
500,000 Tarrant County Texas Health Facilities Development,
4.75%, 9/1/00, AMBAC................................. $ 506,250
-----------
Virginia (1.9%):
750,000 Virginia State Public School Authority 4.50%, 1/1/01.. 750,938
-----------
Wisconsin (2.6%):
1,000,000 Milwaukee, GO, 5.00%, 2/1/01.......................... 1,022,500
-----------
Total Municipal Bonds (cost $31,856,324) 32,209,555
-----------
INVESTMENT COMPANY (0.0%):
1 Nuveen Tax Free Money Market Fund..................... 1
-----------
Total Investment Company (cost $1) 1
-----------
Total Investments (cost--$38,006,520)(a)--(99.1%) 38,450,369
Other assets in excess of liabilities--(0.9%) 365,708
-----------
NET ASSETS--(100.0%) $38,816,077
===========
</TABLE>
- --------
(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. $454,946
Unrealized depreciation. (11,099)
--------
Net unrealized
appreciation............ $443,847
========
</TABLE>
AMBAC Insured by AMBAC Indemnity Corporation
FGIC Insured by Financial Guaranty Insurance Corporation
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
See notes to financial statements.
43
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (80.4%):
Hong Kong (34.2%):
Chemicals (0.3%):
200,000 Ngai Hing Hong Co. Ltd................................. $ 54,200
-----------
Diversified--Conglomerates, Holding Companies (8.3%):
914,000 Fairyoung Holdings Ltd.(b)............................. 433,468
78,000 Hutchinson Whampoa Ltd................................. 588,850
45,000 Swire Pacific Ltd., Class A............................ 413,762
-----------
1,436,080
-----------
Electric & Electronic (2.0%):
590,000 Elec & Eltek (Bermuda) International Holdings Ltd...... 133,242
120,000 VTech Holdings Ltd..................................... 212,930
-----------
346,172
-----------
Financial Services (3.6%):
13,200 Dah Sing Financial Group............................... 59,620
41,000 Guoco Group Ltd........................................ 231,746
14,800 HSBC Holdings PLC...................................... 342,831
-----------
634,197
-----------
Forest Products (0.8%):
514,000 Ta Fu International Ltd................................ 144,270
-----------
Real Estate (16.3%):
61,000 Cheung Kong Holdings Ltd............................... 568,750
240,000 China Overseas Land & Investment....................... 130,081
116,000 China Resources Beijing Land(b)........................ 68,112
169,000 China Resources Enterprise Ltd......................... 360,943
42,000 Henderson Land Development Co. Ltd..................... 388,888
200,000 HKR International Ltd.................................. 311,007
65,000 Lai Sun Development Co. Ltd............................ 100,658
60,000 New World Development Co. Ltd.......................... 370,111
19,000 Sun Hung Kai Properties Ltd............................ 214,543
120,000 Wheelock & Co. Ltd..................................... 333,720
-----------
2,846,813
-----------
Textile/Apparel (1.2%):
865,000 Chaifa Holdings Ltd.................................... 209,859
-----------
Utilities--Electric (1.7%):
85,500 Hong Kong Electric Holdings Ltd........................ 303,977
-----------
Total Hong Kong 5,975,568
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Indonesia (10.9%):
Automotive (2.3%):
115,000 PT Astra International................................. $ 406,480
-----------
Financial Services (1.8%):
450,000 PT Bank Negara Indonesia(b)............................ 307,700
-----------
Fisheries (2.9%):
343,000 PT Daya Guna Samudera(b)............................... 497,938
-----------
Food Products (2.0%):
300,000 PT Fiskar Agung Perkasa(b)............................. 353,461
-----------
Transportation (1.9%):
254,000 PT Steady Safe......................................... 328,656
-----------
Total Indonesia 1,894,235
-----------
Malaysia (16.9%):
Construction (0.7%):
35,000 Ekran Berhad........................................... 121,112
-----------
Diversified--Conglomerates, Holding Companies (3.4%):
40,000 Arab Malaysian Corp. Berhad............................ 215,668
200,000 Renong Berhad.......................................... 366,958
-----------
582,626
-----------
Engineering (1.7%):
120,000 IJM Corp Berhad........................................ 301,774
-----------
Financial Services (3.0%):
165,000 Berjaya Capital Berhad................................. 223,072
170,000 Public Finance Berhad.................................. 306,442
-----------
529,514
-----------
Leisure & Recreation/Gaming (2.1%):
55,000 Genting Berhad......................................... 373,999
-----------
Real Estate (1.2%):
132,000 LARUT Consolidated Berhad.............................. 216,698
-----------
Telecommunication (1.7%):
135,000 Time Engineering Berhad................................ 298,756
-----------
Transportation (3.1%):
160,000 Johor Port Berhad(b)................................... 243,351
26,000 Lingkaran Trans Kota Holdings Berhad(b)................ 53,877
85,000 Metacorp Berhad........................................ 242,828
-----------
540,056
-----------
Total Malaysia 2,964,535
-----------
</TABLE>
Continued
44
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Philippines (2.3%):
Real Estate (2.3%):
325,000 Fil-Estate Land, Inc................................... $ 292,931
607,000 Robinson's Land Corp., Series B(b)..................... 111,725
-----------
404,656
-----------
Total Philippines 404,656
-----------
Singapore (0.8%):
Real Estate (0.8%):
55,000 Orchard Parade Holdings Ltd............................ 136,748
-----------
Total Singapore 136,748
-----------
Thailand (5.7%):
Financial Services (1.8%):
15,500 Bangkok Bank PLC....................................... 133,976
30,000 Thai Farmers Bank PLC.................................. 173,644
-----------
307,620
-----------
Oil & Gas Exploration, Production & Services (1.4)%:
17,500 PTT Exploration & Production PLC....................... 251,206
-----------
Textile/Apparel (1.0%):
183,000 Big C Supercenter PLC.................................. 181,835
-----------
Utilities (1.5%):
74,000 Cogeneration PLC(b).................................... 268,416
-----------
Total Thailand 1,009,077
-----------
New Taiwan (2.9%):
Automotive (1.2%):
113,000 China Motor Co. Ltd.................................... 212,158
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
New Taiwan, continued:
Electrical & Electronic (1.7%):
25,000 Chroma Ate, Inc.(b).................................... $ 80,204
30,000 Inventec Co. Ltd.(b)................................... 218,737
-----------
298,941
-----------
Total New Taiwan 511,099
-----------
United States (6.7%):
Computers & Peripherals (1.5%):
12,500 Lite-On Technology Corp. GDR(b)........................ 272,625
-----------
Construction & Housing (1.9%):
23,538 Dong-Ah Construction Industrial Co. EDR(b)............. 329,532
-----------
Electrical & Electronic (1.7%):
60,000 Elec & Eltek International Co. Ltd..................... 290,400
-----------
Food Products (1.1%):
60,000 Want Want Holdings(b).................................. 188,400
-----------
Transportation--Marine (0.5%):
7,500 Yang Ming Marine Transport GDR(b)...................... 93,825
-----------
Total United States 1,174,782
-----------
Total Common Stocks (cost $12,118,683) 14,070,700
-----------
INVESTMENT COMPANY (17.8%):
3,106,829 Bank of California Money Market Fund................... 3,106,829
-----------
Total Investment Company (cost $3,106,829) 3,106,829
-----------
Total Investments (cost--$15,225,512)(a)--(98.2%) 17,177,529
Other assets in excess of liabilities--(1.8%) 275,104
-----------
NET ASSETS--(100.0%) $17,452,633
===========
</TABLE>
- ------
(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................. $2,407,021
Unrealized deprecia-
tion................. (455,004)
----------
Net unrealized appre-
ciation.............. $1,952,017
==========
</TABLE>
(b) Represents non-income producing security.
ADR American Depository Receipt
EDR European Depository Receipt
GDR Global Depository Receipt
PLC Public Limited Company
See notes to financial statements.
45
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(UNAUDITED)
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 (individually, a "Fund" and
collectively, 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 an unlimited number of shares without par value in two
classes of shares for each Fund: Retail Class and Institutional Class. The
Institutional Class commenced operations October 14, 1994 when the Trust
identified those Institutional Shareholders that were part of the Retail
Class (as of October 13, 1994) and transferred the Shareholders into the
Institutional Class. Retail Class Shares 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.
The Funds' investment objectives are as follows. Growth Stock Fund seeks
long-term capital appreciation; U.S. Treasury Securities Fund and Short
Intermediate U.S. Treasury Securities Fund seek a high level of current
income consistent with prudent risk of capital. Growth and Income Fund seeks
primarily current income and secondarily capital appreciation. Diversified
Fixed Income Fund seeks a high level of current income. Tax-Free Securities
Fund and Tax-Free Short Intermediate Securities Fund seek a high level of
current income exempt from federal and Hawaii income taxes. New Asia Growth
Fund seeks long-term growth of capital.
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 ("NASDAQ") 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 the mean
of the latest quoted bid and asked 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.
Investments in investment companies are valued at their respective net
asset values as reported by such companies. Money market instruments and
other debt securities maturing in 60 days or less are valued at amortized
cost, which approximates market value. Investments in foreign securities,
currency holdings and other assets and liabilities of New Asia Growth Fund
are valued based on quotations from the primary market in which they are
traded and translated from the local currency into U.S. dollars using
current exchange rates. The differences between the cost and market values
of securities are reflected as either unrealized appreciation or
depreciation.
Continued
46
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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 and is reduced by applicable foreign taxes withheld. 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 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.
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. 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 currency
appreciation or depreciation arises 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
in 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.
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
Continued
47
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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. 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.
Continued
48
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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.
CONCENTRATION OF CREDIT RISK
The Tax-Free Securities Fund and the Tax-Free Short Intermediate Securities
Fund have a majority of their investments in the securities of issuers in
Hawaii. Such concentration may subject the Fund to the effects of economic
changes occurring within that State.
OTHER
Expenses that are directly related to one Fund are charged directly to that
Fund and are allocated to each class of shares based on the relative net
assets of each class, except 12b-1 fees which are allocated only to the
Retail Class Shares. 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, 1997 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Growth Stock Fund..................................... $33,461,089 $53,588,439
U.S. Treasury Securities Fund......................... 6,647,516 5,493,395
Short Intermediate U.S. Treasury Securities Fund...... 8,291,176 9,162,744
Growth and Income Fund................................ 41,089,793 35,108,493
Diversified Fixed Income Fund......................... 58,671,001 83,456,114
Tax-Free Securities Fund.............................. 17,772,313 12,915,099
Tax-Free Short Intermediate Securities Fund........... 5,605,775 6,035,704
New Asia Growth Fund.................................. 9,411,981 6,783,119
</TABLE>
Continued
49
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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.
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 at an annual rate of 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 in accordance with a Distribution Agreement (the
"Agreement") pursuant to Rule 12b-1 under the 1940 Act. Under the Agreement,
Retail Class Shares pay 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, 1997, BISYS, as the
Trust's principal underwriter, received approximately $93,542 from
commissions on sales of Retail Class shares of which $81,963 was reallowed
to affiliated dealers of the Trust's shares and $11,572 was reallowed to
other dealers of the Trust's shares.
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 six months ended January
31, 1997 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-- EXPENSES ACCOUNTING
NET ASSETS REDUCED REDUCED RETAIL CLASS REIMBURSED FEES
--------------- ----------- -------------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Growth Stock Fund....... 0.80% $ -- $39,546 $13,958 $ -- $29,681
U.S. Treasury Securities
Fund................... 0.60% -- 5,085 2,647 -- 4,226
Short Intermediate U.S.
Treasury Securities
Fund................... 0.50% 24,282 6,136 2,197 -- 4,497
Growth and Income Fund.. 0.80% -- 17,375 3,750 -- 13,781
Diversified Fixed Income
Fund................... 0.60% -- 34,040 2,931 -- 27,305
Tax-Free Securities
Fund................... 0.60% -- 61,509 1,579 -- 52,775
Tax-Free Short
Intermediate Securities
Fund................... 0.50% -- 10,296 1,959 -- 9,299
New Asia Growth Fund.... 0.90% -- 3,697 6,073 7,778 7,450
</TABLE>
Continued
50
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
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 MONTHS ENDED FOR THE SIX MONTHS ENDED
JANUARY 31, 1997 JANUARY 31, 1997
------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 492,830 36,653 $ 145,912 15,671
Dividends reinvested.... 11,309 864 24,816 2,681
Shares redeemed......... (948,147) (72,941) (84,617) (9,192)
------------- ---------- ------------- -----------
Net Increase
(Decrease)--Retail Class
Shares.................. $ (444,008) (35,424) $ 86,111 9,160
============= ========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 13,813,952 1,057,769 $ 50,309 5,413
Dividends reinvested.... 53,258 4,047 716,032 77,244
Shares redeemed......... (43,736,618) (3,228,712) (1,314,647) (141,027)
------------- ---------- ------------- -----------
Net Decrease--
Institutional Class
Shares.................. $ (29,869,408) (2,166,896) $ (548,306) (58,370)
============= ========== ============= ===========
Total Net Decrease...... $ (30,313,416) (2,202,320) $ (462,195) (49,210)
============= ========== ============= ===========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1996 JULY 31, 1996
------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 2,212,900 181,079 $ 120,008 12,543
Dividends reinvested.... 269,722 22,667 60,138 6,342
Shares redeemed......... (1,174,009) (94,879) (205,941) (21,534)
------------- ---------- ------------- -----------
Net Increase
(Decrease)--Retail Class
Shares.................. $ 1,308,613 108,867 $ (25,795) (2,649)
============= ========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 131,615,185 10,917,906 $ 1,527,773 161,323
Dividends reinvested.... 6,169,023 518,783 1,842,036 194,471
Shares redeemed......... (104,518,765) (8,612,823) (30,773,600) (3,250,486)
------------- ---------- ------------- -----------
Net Increase
(Decrease)--
Institutional Class
Shares.................. $ 33,265,443 2,823,866 $ (27,403,791) (2,894,692)
============= ========== ============= ===========
Total Net Increase
(Decrease).............. $ 34,574,056 2,932,733 $ (27,429,586) (2,897,341)
============= ========== ============= ===========
</TABLE>
Continued
51
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE U.S.
TREASURY SECURITIES FUND GROWTH AND INCOME FUND
-------------------------- ---------------------------
AMOUNT SHARES AMOUNT SHARES
------------ ------------ ------------- ------------
FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED
JANUARY 31, 1997 JANUARY 31, 1997
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 93,700 9,890 $ 802,874 59,141
Dividends reinvested.... 21,532 2,273 75,466 5,664
Shares redeemed......... (623,793) (65,744) (271,861) (20,207)
------------ ----------- ------------- -----------
Net Increase
(Decrease)--Retail Class
Shares.................. $ (508,561) (53,581) $ 606,479 44,598
============ =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 2,707,790 285,240 $ 19,688,437 1,437,371
Dividends reinvested.... 28,680 3,019 2,317,803 171,834
Shares redeemed......... (5,243,785) (552,283) (13,090,758) (967,622)
------------ ----------- ------------- -----------
Net Increase
(Decrease)--
Institutional Class
Shares.................. $ (2,507,315) (264,024) $ 8,915,482 641,583
============ =========== ============= ===========
Total Net Increase
(Decrease).............. $ (3,015,876) (317,605) $ 9,521,961 686,181
============ =========== ============= ===========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1996 JULY 31, 1996
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 747,638 76,883 $ 924,629 74,394
Dividends reinvested.... 47,554 4,976 16,890 1,409
Shares redeemed......... (95,449) (9,947) (128,162) (10,325)
------------ ----------- ------------- -----------
Net Increase--Retail
Class Shares............ $ 699,743 71,912 $ 813,357 65,478
============ =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 17,373,908 1,805,630 $ 50,906,651 4,232,718
Dividends reinvested.... 110,962 11,544 1,235,834 104,577
Shares redeemed......... (9,634,113) (1,006,064) (23,658,493) (1,948,216)
------------ ----------- ------------- -----------
Net Increase--
Institutional Class
Shares.................. $ 7,850,757 811,110 $ 28,483,992 2,389,079
============ =========== ============= ===========
Total Net Increase...... $ 8,550,500 883,022 $ 29,297,349 2,454,557
============ =========== ============= ===========
</TABLE>
Continued
52
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DIVERSIFIED FIXED TAX-FREE
INCOME FUND SECURITIES FUND
--------------------------- ---------------------------
AMOUNT SHARES AMOUNT SHARES
------------- ------------ ------------- ------------
FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED
JANUARY 31, 1997 JANUARY 31, 1997
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 342,142 32,476 $ 102,127 9,688
Dividends reinvested.... 40,869 3,871 8,250 781
Shares redeemed......... (196,162) (18,597) (330) (31)
------------- ----------- ------------- -----------
Net Increase--Retail
Class Shares............ $ 186,849 17,750 $ 110,047 10,438
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 19,190,491 1,802,287 $ 15,206,463 1,443,435
Dividends reinvested.... 563,397 52,586 1,595,323 150,229
Shares redeemed......... (47,149,321) (4,419,228) (14,921,166) (1,409,435)
------------- ----------- ------------- -----------
Net Increase
(Decrease)--
Institutional Class
Shares.................. $ (27,395,433) (2,564,355) $ 1,880,620 184,229
============= =========== ============= ===========
Total Net Increase
(Decrease).............. $ (27,208,584) (2,546,605) $ 1,990,667 194,667
============= =========== ============= ===========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1996 JULY 31, 1996
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 1,199,728 107,934 $ 619,694 58,332
Dividends reinvested.... 35,296 3,293 17,516 1,652
Shares redeemed......... (100,216) (9,260) (608,257) (58,984)
------------- ----------- ------------- -----------
Net Increase--Retail
Class Shares............ $ 1,134,808 101,967 $ 28,953 1,000
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 198,618,575 18,085,880 $ 28,592,966 2,708,891
Dividends reinvested.... 855,870 76,725 3,552,534 331,714
Shares redeemed......... (86,606,689) (7,857,921) (22,221,434) (2,101,754)
------------- ----------- ------------- -----------
Net Increase--
Institutional Class
Shares.................. $ 112,867,756 10,304,684 $ 9,924,066 938,851
============= =========== ============= ===========
Total Net Increase...... $ 114,002,564 10,406,651 $ 9,953,019 939,851
============= =========== ============= ===========
</TABLE>
Continued
53
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TAX-FREE
SHORT INTERMEDIATE NEW ASIA
SECURITIES FUND GROWTH FUND
------------------------------------------------------
AMOUNT SHARES AMOUNT SHARES
------------- ------------------------- ------------
FOR THE SIX MONTHS ENDED FOR THE SIX MONTHS ENDED
JANUARY 31, 1997 JANUARY 31, 1997
------------------------------------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 587,043 58,403 $ 738,142 61,893
Dividends reinvested.... 7,623 756 21,601 1,764
Shares redeemed......... (218,547) (21,649) (317,948) (26,772)
------------- ---------- ------------- ----------
Net Increase--Retail
Class Shares............ $ 376,119 37,510 $ 441,795 36,885
============= ========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 2,040,660 201,942 $ 5,509,621 467,254
Dividends reinvested.... 48,718 4,801 81,463 6,605
Shares redeemed......... (3,777,596) (373,335) (1,280,396) (106,022)
------------- ---------- ------------- ----------
Net Increase
(Decrease)--
Institutional Class
Shares.................. $ (1,688,218) (166,592) $ 4,310,688 367,837
============= ========== ============= ==========
Total Net Increase
(Decrease).............. $ (1,312,099) (129,082) $ 4,752,483 404,722
============= ========== ============= ==========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1996 JULY 31, 1996
------------------------------------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 194,515 19,329 $ 1,841,034 156,856
Dividends reinvested.... 2,672 265 13,647 1,284
Shares redeemed......... (52,273) (5,147) (101,353) (8,592)
------------- ---------- ------------- ----------
Net Increase--Retail
Class Shares............ $ 144,914 14,447 $ 1,753,328 149,548
============= ========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 7,670,654 754,274 $ 8,908,328 754,031
Dividends reinvested.... 6,511 642 46,083 4,330
Shares redeemed......... (7,930,532) (783,406) (2,879,942) (252,790)
------------- ---------- ------------- ----------
Net Increase
(Decrease)--
Institutional Class
Shares.................. $ (253,367) (28,490) $ 6,074,469 505,571
============= ========== ============= ==========
Total Net Increase
(Decrease).............. $ (108,453) (14,043) $ 7,827,797 655,119
============= ========== ============= ==========
</TABLE>
54
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH STOCK FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED NOVEMBER 1,
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 1993 TO
-------------------------- ---------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
------- ------------- ------- ------------- ---------- ----------------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $11.89 $11.89 $11.71 $11.71 $ 9.83 $ 9.89 $10.00
------- -------- ------- -------- ------ -------- -------
Investment Activities
Net investment income.. 0.02 0.03 0.07 0.10 0.12 0.11 0.07
Net realized and
unrealized gain (loss)
from investments...... 2.53 2.54 0.89 0.89 1.87 1.83 (0.18)
------- -------- ------- -------- ------ -------- -------
Total from Investment
Activities........... 2.55 2.57 0.96 0.99 1.99 1.94 (0.11)
------- -------- ------- -------- ------ -------- -------
Distributions
Net investment income.. (0.03) (0.04) (0.07) (0.10) (0.11) (0.12) (0.06)
Net realized gains..... -- -- (0.22) (0.22) -- -- --
In excess of net
realized gains........ -- -- (0.49) (0.49) -- -- --
------- -------- ------- -------- ------ -------- -------
Total Distributions... (0.03) (0.04) (0.78) (0.81) (0.11) (0.12) (0.06)
------- -------- ------- -------- ------ -------- -------
NET ASSET VALUE, END OF
PERIOD................. $14.41 $14.42 $11.89 $11.89 $11.71 $11.71 $ 9.83
======= ======== ======= ======== ====== ======== =======
Total Return (excludes
sales charges)......... 21.45%(f) 21.68%(f) 8.25% 8.53% 20.43% 20.64%(d) (1.05)%(f)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)........... $5,868 $177,975 $5,261 $172,565 $3,905 $136,837 $56,121
Ratio of expenses to
average net assets..... 1.31%(e) 1.07%(e) 1.34% 1.09% 1.36% 1.13%(e) 1.41%(e)
Ratio of net investment
income to average net
assets................. 0.31%(e) 0.57%(e) 0.60% 0.86% 1.12% 1.30%(e) 0.98%(e)
Ratio of expenses to
average net assets*.... 1.86%(e) 1.11%(e) 1.88% 1.13% 1.98% 1.21%(e) 2.31%(e)
Ratio of net investment
income to average net
assets*................ (0.23%)(e) 0.53%(e) 0.06% 0.82% 0.50% 1.23%(e) 0.07%(e)
Portfolio Turnover (g).. 18.58% 18.58% 61.30% 61.30% 32.40% 32.40% 25.89%
Average Commission Rate
paid (h)............... $0.0941 $0.0941 $0.0895 $0.0895 -- -- --
</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.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and
sold for which commissions were charged. Disclosure is not required for
periods ending prior to September 1, 1995.
See notes to financial statements.
55
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S TREASURY SECURITIES FUND
-------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED NOVEMBER 1,
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 1993 TO
--------------------------- --------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
-------- ------------- ------ ------------- ---------- ----------------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 9.13 $ 9.14 $ 9.42 $ 9.43 $ 9.04 $ 8.66 $10.00
------- ------- ------ ------- ------ ------- -------
Investment Activities
Net investment income... 0.27 0.27 0.53 0.59 0.50 0.44 0.31
Net realized and
unrealized gain (loss)
from investments....... 0.10 0.11 (0.20) (0.24) 0.38 0.76 (1.00)
------- ------- ------ ------- ------ ------- -------
Total from Investment
Activities............ 0.37 0.38 0.33 0.35 0.88 1.20 (0.69)
------- ------- ------ ------- ------ ------- -------
Distributions
Net investment income... (0.28) (0.29) (0.53) (0.55) (0.50) (0.43) (0.27)
In excess of net
investment income...... -- -- (0.09) (0.09) -- -- --
------- ------- ------ ------- ------ ------- -------
Total Distributions.... (0.28) (0.29) (0.62) (0.64) (0.50) (0.43) (0.27)
------- ------- ------ ------- ------ ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.22 $ 9.23 $ 9.13 $ 9.14 $ 9.42 $ 9.43 $ 9.04
======= ======= ====== ======= ====== ======= =======
Total Return (excludes
sales charges).......... 4.07%(f) 4.19%(f) 3.43% 3.71% 10.18% 10.49%(d) (6.95%)(f)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $1,073 $22,937 $979 $23,248 $1,035 $51,264 $60,125
Ratio of expenses to
average net assets...... 1.15%(e) 0.90%(e) 1.20% 0.95% 1.19% 1.02%(e) 1.15%(e)
Ratio of net investment
income to average net
assets.................. 5.62%(e) 5.86%(e) 5.55% 5.81% 5.57% 5.78%(e) 4.62%(e)
Ratio of expenses to
average net assets*..... 1.69%(e) 0.94%(e) 1.74% 0.99% 1.81% 1.09%(e) 2.09%(e)
Ratio of net investment
income to average net
assets*................. 5.07%(e) 5.82%(e) 5.01% 5.77% 4.96% 5.71%(e) 3.68%(e)
Portfolio Turnover (g)... 23.62% 23.62% 15.75% 15.75% 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.
56
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED DECEMBER 13,
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 1993 TO
--------------------------- --------------------- ---------------------------- JULY 31,
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL (C) INSTITUTIONAL (B) 1994 (A)
--------- ------------- ------ ------------- ---------- ----------------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 9.41 $ 9.42 $ 9.60 $ 9.61 $ 9.52 $ 9.30 $10.00
------- ------- ------ ------- ------ ------- ------
Investment Activities
Net investment income... 0.25 0.26 0.48 0.53 0.52 0.44 0.24
Net realized and
unrealized gain (loss)
from investments....... 0.05 0.05 (0.11) (0.13) 0.05 0.31 (0.52)
------- ------- ------ ------- ------ ------- ------
Total from Investment
Activities............ 0.30 0.31 0.37 0.40 0.57 0.75 (0.28)
------- ------- ------ ------- ------ ------- ------
Distributions
Net investment income... (0.25) (0.26) (0.50) (0.53) (0.49) (0.44) (0.20)
In excess of net
investment income...... -- -- (0.04) (0.04) -- -- --
Net realized gains...... -- -- (0.02) (0.02) -- -- --
------- ------- ------ ------- ------ ------- ------
Total Distributions.... (0.25) (0.26) (0.56) (0.59) (0.49) (0.44) (0.20)
------- ------- ------ ------- ------ ------- ------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.46 $ 9.47 $ 9.41 $ 9.42 $ 9.60 $ 9.61 $ 9.52
======= ======= ====== ======= ====== ======= ======
Total Return (excludes
sales charges).......... 3.20%(f) 3.33%(f) 3.90% 4.18% 6.28% 6.57%(d) (2.76%)(f)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $656 $21,172 $1,156 $23,545 $489 $16,214 $3,419
Ratio of expenses to
average
net assets.............. 0.88%(e) 0.63%(e) 0.92% 0.67% 0.99% 0.75%(e) 1.00%(e)
Ratio of net investment
income
to average net assets... 5.17%(e) 5.43%(e) 5.14% 5.40% 5.51% 5.84%(e) 3.96%(e)
Ratio of expenses to
average
net assets*............. 1.63%(e) 0.88%(e) 1.67% 0.92% 1.78% 0.99%(e) 5.39%(e)
Ratio of net investment
income
to average net assets*.. 4.41%(e) 5.17%(e) 4.39% 5.15% 4.72% 5.61%(e) (0.43%)(e)
Portfolio Turnover (g)... 37.92% 37.92% 47.17% 47.17% 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.
57
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
--------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
------------------------- ---------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
------- ------------- ------- ------------- ------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $12.32 $12.32 $11.44 $11.43 $10.00 $10.00
------- ------- ------- ------- ------ -------
Investment Activities
Net investment income.. 0.05 0.06 0.16 0.17 0.17 0.20
Net realized and
unrealized gain from
investments........... 2.54 2.54 1.19 1.21 1.44 1.42
------- ------- ------- ------- ------ -------
Total from Investment
Activities........... 2.59 2.60 1.35 1.38 1.61 1.62
------- ------- ------- ------- ------ -------
Distributions
Net investment income.. (0.05) (0.06) (0.15) (0.17) (0.17) (0.19)
In excess of net
investment income..... -- -- (0.01) (0.01) -- --
Net realized gains..... (0.63) (0.63) (0.31) (0.31) -- --
------- ------- ------- ------- ------ -------
Total Distributions... (0.68) (0.69) (0.47) (0.49) (0.17) (0.19)
------- ------- ------- ------- ------ -------
NET ASSET VALUE, END OF
PERIOD................. $14.23 $14.23 $12.32 $12.32 $11.44 $11.43
======= ======= ======= ======= ====== =======
Total Return (excludes
sales charges)......... 21.41%(b) 21.50%(b) 11.96% 12.29% 16.35%(b) 16.41%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)........... $1,974 $95,144 $1,160 $74,427 $328 $41,771
Ratio of expenses to
average net assets..... 1.33%(c) 1.08%(c) 1.37% 1.11% 1.40%(c) 1.14%(c)
Ratio of net investment
income to average net
assets................. 0.67%(c) 0.96%(c) 1.03% 1.43% 2.08%(c) 2.47%(c)
Ratio of expenses to
average net assets*.... 1.87%(c) 1.12%(c) 1.91% 1.15% 1.99%(c) 1.22%(c)
Ratio of net investment
income to average net
assets*................ 0.12%(c) 0.92%(c) 0.49% 1.39% 1.49%(c) 2.39%(c)
Portfolio Turnover (d).. 43.12% 43.12% 80.83% 80.83% 12.78% 12.78%
Average Commission Rate
paid (e)............... $0.0913 $0.0913 $0.0921 $0.0921
</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.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and
sold for which commissions were charged. Disclosure is not required for
periods ending prior to September 1, 1995.
See notes to financial statements.
58
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED FIXED INCOME FUND
----------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------------- --------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
------- ------------- ------ ------------- ------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $10.45 $10.53 $10.75 $10.84 $10.00 $10.00
------- -------- ------ -------- ------ -------
Investment Activities
Net investment income... 0.29 0.30 0.59 0.58 0.49 0.55
Net realized and
unrealized gain from
investments............ 0.13 0.13 (0.19) (0.16) 0.74 0.78
------- -------- ------ -------- ------ -------
Total from Investment
Activities............ 0.42 0.43 0.40 0.42 1.23 1.33
------- -------- ------ -------- ------ -------
Distributions
Net investment income... (0.29) (0.30) (0.58) (0.61) (0.48) (0.49)
In excess of net
investment income...... -- -- (0.02) (0.02) -- --
Net realized gains...... (0.09) (0.09) (0.10) (0.10) -- --
------- -------- ------ -------- ------ -------
Total Distributions.... (0.38) (0.39) (0.70) (0.73) (0.48) (0.49)
------- -------- ------ -------- ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $10.49 $10.57 $10.45 $10.53 $10.75 $10.84
======= ======== ====== ======== ====== =======
Total Return (excludes
sales charges).......... 4.06%(b) 4.16%(b) 3.69% 3.85% 12.66%(b) 13.70%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $1,283 $135,255 $1,093 $161,742 $27 $54,827
Ratio of expenses to
average net assets...... 1.13%(c) 0.88%(c) 1.15% 0.88% 1.18%(c) 0.93%(c)
Ratio of net investment
income to average net
assets.................. 5.35%(c) 5.59%(c) 5.31% 5.56% 6.25%(c) 6.71%(c)
Ratio of expenses to
average net assets*..... 1.67%(c) 0.92%(c) 1.69% 0.92% 1.77%(c) 1.01%(c)
Ratio of net investment
income to average net
assets*................. 4.81%(c) 5.55%(c) 4.77% 5.52% 5.66%(c) 6.63%(c)
Portfolio Turnover (d)... 43.14% 43.14% 58.86% 58.86% 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.
59
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SECURITIES FUND
----------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------------- --------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
-------- ------------- ------ ------------- ------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $10.44 $10.46 $10.53 $10.56 $10.00 $10.00
------- -------- ------ -------- ------ --------
Investment Activities
Net investment income... 0.25 0.26 0.50 0.52 0.39 0.42
Net realized and
unrealized
gain from investments.. 0.15 0.15 0.07 0.07 0.50 0.51
------- -------- ------ -------- ------ --------
Total from Investment
Activities............ 0.40 0.41 0.57 0.59 0.89 0.93
------- -------- ------ -------- ------ --------
Distributions
Net investment income... (0.25) (0.26) (0.49) (0.52) (0.36) (0.37)
In excess of net
investment income...... -- -- (0.04) (0.04) -- --
Net realized gains...... (0.06) (0.06) (0.09) (0.09) -- --
In excess of net
realized gains......... -- -- (0.04) (0.04) -- --
------- -------- ------ -------- ------ --------
Total Distributions.... (0.31) (0.32) (0.66) (0.69) (0.36) (0.37)
------- -------- ------ -------- ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $10.53 $10.55 $10.44 $10.46 $10.53 $10.56
======= ======== ====== ======== ====== ========
Total Return (excludes
sales charges).......... 3.81%(b) 3.92%(b) 5.54% 5.73% 9.06%(b) 9.54%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $683 $293,147 $569 $288,934 $563 $281,646
Ratio of expenses to
average net assets...... 1.11%(c) 0.86%(c) 1.14% 0.89% 1.15%(c) 0.89%(c)
Ratio of net investment
income
to average net assets... 4.59%(c) 4.83%(c) 4.66% 4.92% 4.93%(c) 5.16%(c)
Ratio of expenses to
average
net assets*............. 1.65%(c) 0.90%(c) 1.68% 0.93% 1.74%(c) 0.98%(c)
Ratio of net investment
income
to average net assets*.. 4.04%(c) 4.79%(c) 4.12% 4.88% 4.34%(c) 5.07%(c)
Portfolio Turnover (d)... 4.47% 4.47% 24.78% 24.78% 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.
60
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
---------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------------- --------------------- ------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
------- ------------- ------ ------------- ------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $10.05 $10.08 $10.11 $10.14 $10.00 $10.00
------- ------- ------ ------- ------ -------
Investment Activities
Net investment income... 0.19 0.19 0.37 0.40 0.30 0.32
Net realized and
unrealized gain from
investments............ 0.05 0.06 (0.03) (0.03) 0.08 0.11
------- ------- ------ ------- ------ -------
Total from Investment
Activities............ 0.24 0.25 0.34 0.37 0.38 0.43
------- ------- ------ ------- ------ -------
Distributions
Net investment income... (0.19) (0.19) (0.37) (0.40) (0.27) (0.29)
In excess of net
investment income...... -- -- (0.03) (0.03) -- --
Net realized gains...... (0.01) (0.01) -- -- -- --
------- ------- ------ ------- ------ -------
Total Distributions.... (0.20) (0.20) (0.40) (0.43) (0.27) (0.29)
------- ------- ------ ------- ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $10.09 $10.13 $10.05 $10.08 $10.11 $10.14
======= ======= ====== ======= ====== =======
Total Return (excludes
sales charges).......... 2.41%(b) 2.57%(b) 3.41% 3.67% 3.90%(b) 4.36%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)............ $831 $37,985 $451 $39,472 $308 $39,993
Ratio of expenses to
average net assets...... 1.09%(c) 0.84%(c) 1.08% 0.83% 1.05%(c) 0.85%(c)
Ratio of net investment
income to average net
assets.................. 3.55%(c) 3.80%(c) 3.64% 3.90% 3.82%(c) 4.03%(c)
Ratio of expenses to
average net assets*..... 1.64%(c) 0.89%(c) 1.63% 0.88% 1.64%(c) 0.94%(c)
Ratio of net investment
income to average net
assets*................. 3.00%(c) 3.74%(c) 3.09% 3.85% 3.23%(c) 3.94%(c)
Portfolio Turnover (d)... 14.37% 14.37% 54.70% 54.70% 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.
61
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW ASIA GROWTH FUND
-----------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED FEBRUARY 15, 1995 TO
JANUARY 31, 1997 JANUARY 31, 1996 JULY 31, 1995(A)
-------------------------- ----------------------- -------------------------
RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL
------- ------------- ------- ------------- ------ -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $11.11 $11.14 $11.21 $11.22 $10.00 $10.00
------- ------- ------- ------- ------ ------
Investment Activities
Net investment income
(loss)................ -- 0.02 (0.02) (0.01) 0.02 0.04
Net realized and
unrealized gain from
investments........... 1.97 1.96 0.20 0.22 1.19 1.18
------- ------- ------- ------- ------ ------
Total from Investment
Activities........... 1.97 1.98 0.18 0.21 1.21 1.22
------- ------- ------- ------- ------ ------
Distributions
Net investment income.. (0.01) (0.01) (0.02) (0.03) -- --
Net realized gains..... (0.12) (0.12) (0.26) (0.26) -- --
------- ------- ------- ------- ------ ------
Total Distributions... (0.13) (0.13) (0.28) (0.29) -- --
------- ------- ------- ------- ------ ------
NET ASSET VALUE, END OF
PERIOD................. $12.95 $12.99 $11.11 $11.14 $11.21 $11.22
======= ======= ======= ======= ====== ======
Total Return (excludes
sales charges)......... 17.77%(b) 17.88%(b) 1.71% 1.99% 12.10%(b) 12.20%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
period (000)........... $2,797 $14,656 $1,990 $8,469 $330 $2,861
Ratio of expenses to
average net assets..... 2.13%(c) 1.87%(c) 2.22% 1.98% 2.24%(c) 1.97%(c)
Ratio of net investment
income (loss) to
average net assets..... (0.04%)(c) 0.22%(c) (0.28%) (0.02%) 0.80%(c) 1.18%(c)
Ratio of expenses to
average net assets*.... 2.69%(c) 1.93%(c) 3.58% 2.84% 3.51%(c) 2.74%(c)
Ratio of net investment
income (loss) to
average net assets*.... (0.59%)(c) 0.17%(c) (1.64%) (0.88%) (0.47%)(c) 0.42%(c)
Portfolio Turnover (d).. 55.65% 55.65% 86.53% 86.53% 55.62% 55.62%
Average Commission Rate
paid (e)............... $0.0059 $0.0059 $0.0069 $0.0069 -- --
</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.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and
sold for which commissions were charged. Disclosure is not required for
periods ending prior to September 1, 1995.
See notes to financial statements.
62
<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.
3/97
