<PAGE>
LOGO Pacific
Capital Funds
----------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JANUARY 31, 1998
----------------------------
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders
Page 1
Fund Performance Review
Page 4
Statements of Assets and Liabilities
Page 20
Statements of Operations
Page 22
Statements of Changes in Net Assets
Page 24
Schedules of Portfolio Investments
Page 27
Notes to Financial Statements
Page 46
Financial Highlights
Page 56
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
PACIFIC CAPITAL FUNDS
SEMI-ANNUAL REPORT
LETTER TO SHAREHOLDERS
Dear Shareholders:
The six-month period that ended January 31, 1998, was marked by mixed
performances in the stock and bond markets. The Dow Jones Industrial Average
peaked in August at 8259, but it declined after that and was down 3.51% for the
period. That performance was in accord with our view that U.S. stocks had
become fully valued.
The bond market benefited from falling interest rates during the six-month
period, with the yield on a 30-year Treasury bond declining from 6.30% to
5.86%. The rate decline was driven in part by continued low inflation, concerns
that financial difficulties in Asia would dampen worldwide economic growth, and
the projected 1998 U.S. budget surplus.
In that environment, the Pacific Capital Funds performed exceptionally well.
The Pacific Capital Growth and Income Fund outperformed the S&P 500 Index* and
the Lipper Growth and Income Funds Index** with a gain of 4.74%/1/. The returns
for the S&P 500 and the Lipper Growth and Income Funds Index were 3.56% and
2.37%, respectively, for the period. Our bond funds also performed well
relative to their respective peer groups, with the Diversified Fixed Income
Fund posting a total return of 5.15%/1/ compared to 3.99% for the Lipper Income
Fund Index.*** The Pacific Capital Tax-Free Short Intermediate Securities Fund
posted a positive return of 2.37%/1/ outperforming its peer group the Lipper
Short Intermediate Municipal Debt Funds.**** (All returns shown for the Pacific
Capital Funds are for Retail Class A without load.)
FINDING OPPORTUNITIES IN STOCKS AND BONDS
The performance of the Pacific Capital stock funds reflected our commitment
to investing in companies with above-average growth potential in the fastest
growing sectors of the economy. During the recent period, the Funds were
overweighted in shares of health-care and technology companies. In the health-
care sector, pharmaceutical stocks posted strong gains. In addition, in the
technology sector, price volatility provided opportunities to purchase shares
of strong companies at low prices.
Our bond funds benefited from our decision to lengthen the average maturities
of the portfolios and their durations late last summer. We increased the Funds'
durations to approximately 20% longer than those of their benchmarks, an
increase from 10% longer than the benchmarks at the start of the period. We
made that decision because our overseas contacts anticipated that Asian
economies would encounter problems, which in turn might contribute to slower
growth, lower inflation and, thus, falling interest rates in the United States.
SLOWER GROWTH AHEAD
The crisis in Asia should have a dampening effect on world economies. Slower
economic growth could allow the Federal Reserve Board to ease interest rates
sometime this year, which should continue to support bond prices. Meanwhile,
low inflation in this country could keep real yields attractive.
The fundamental background for the stock market remains positive. U.S. fiscal
policy has resulted in a lower deficit, freeing up more money for the more
efficient private sector. Demographic factors also continue to be favorable,
with the Baby Boom generation reaching their fifties--the age range in which
people tend to be
1
<PAGE>
savers and investors rather than borrowers. Already the stock market has seen
major inflows of capital from that segment of the population, and we expect
that trend to continue. In addition, corporate objectives increasingly mirror
shareholder objectives, with a focus on return on equity and profit margins
rather than just on size.
That said, stocks have posted three consecutive years of gains greater than
20%--an unprecedented run. Moreover, the external forces contributing to slower
U.S. economic growth will also put pressure on corporate earnings. Therefore,
we estimate that corporate earnings will grow by 4% to 6% in 1998, compared to
a rate of approximately 10% in 1997. Thus, this year may be an even more
important time to reconsider the basic investment principles that are the key
to long-term gains. Among these principles:
. Establish your investment objective and risk tolerance before you invest.
. Diversify among various asset classes to manage financial risk.
. Consider tax-advantaged strategies.
. Stick with your plan, riding out market fluctuations and boosting your
portfolio with a regular savings program.
NEW DEVELOPMENTS IN THE PACIFIC CAPITAL FUNDS
On March 2, 1998, the Pacific Capital Funds added B shares to the existing
family of Class A and Y shares. B shares are structured to offer investors a
contingent deferred sales charge. This additional pricing structure has been
added to enhance the Funds' appeal to prospective customers, and, thus, attract
more assets to the Funds.
In addition, as of February 2, 1998, the funds have a new transfer agent,
BISYS Fund Services. This change will enhance the funds' services. For example,
customers can take advantage of an after-hours voice response system that
provides share-price, performance and account information.
Thank you for your confidence in the Pacific Capital Family of Funds. During
the coming months, we will continue to monitor investment risk and to seek
investment opportunities that will help you meet your long-term goals. If you
have any questions or would like a Fund prospectus, please contact your
registered investment representative, or call BISYS Fund Services at (800) 258-
9232.
Sincerely,
/s/Walter J. Laskey /s/William J. Barton
Walter J. Laskey William J. Barton
Executive Vice President, Bank of Hawaii Senior Vice President, Manager
Chairman, Pacific Capital Funds Investment Management Group
Pacific Century Trust
- --------
/1/ With the maximum sales charge of 4.00%, the Pacific Capital Growth and
Income Fund had a total return of 0.55%, the Diversified Fixed Income had a
total return of 0.95%. With the maximum sales charge of 2.25%, the Pacific
Capital Tax-Free Short Intermediate Securities Fund had a total return of
0.07%.
* The Standard & Poor's 500 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.
2
<PAGE>
**The Lipper Growth and Income Funds Index is comprised of funds whose primary
objective is to combine a growth-of-earnings orientation and an income
requirement for level and/or rising dividends.
***The Lipper Income Funds Index is comprised of funds whose primary objective
is to seek a high level of current income through investing in income-
producing stocks, bonds and money market instruments.
****The Lipper Short Intermediate Municipal Debt Funds Index is comprised of
managed funds that invest in municipal debt issues with dollar-weighted
average maturities of one to five years.
AS WITH ALL MUTUAL FUNDS, SHARES IN THE PACIFIC CAPITAL FUNDS
.ARE NOT FDIC INSURED
.HAVE NO BANK GUARANTEE
.MAY LOSE VALUE
3
<PAGE>
FUND PERFORMANCE REPORT
PACIFIC CAPITAL GROWTH STOCK FUND
Pacific Capital Growth Stock Fund+
Growth of a $10,000 Investment
S&P 500 S&P/BARRA
Stock Growth Institutional (Y)
Index Index++ Retail (A)* No Load
1/31/88 10000 10000 9600 10000
1/31/89 12013 11760 10907 11435
1/31/90 13742 13848 12601 13233
1/31/91 14893 15619 14395 15161
1/31/92 18274 20021 18044 19079
1/31/93 20195 21565 18811 19936
1/31/94 22790 22641 20499 21772
1/31/95 22920 23427 20459 21762
1/31/96 31757 32783 26391 28117
1/31/97 40132 42208 31586 33760
1/31/98 50932 55232 39387 42193
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
10/14/94, Commencment of operations of Institutional Class
11/1/93, Commencement of operations of Retail Class
Average Annual Total Return
1/31/98 1 Year 5 Year 10 Year
Retail (A)* 19.71% 14.98% 14.69%
Institutional (Y) 24.98% 16.18% 15.48%
+The quoted performance of the Pacific Capital Growth Stock Fund ("Fund")
includes the performance of certain common trust fund ("Commingled") accounts
advised by Pacific Century Trust and managed the same as the Fund in all
material respects, for periods dating back to January 31, 1988, 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 Fund has changed its benchmarck from the S&P/BARRA Growth Index to the
S&P 500 Stock Index, to better reflect the Fund's investment latitude. The
Standard & Poor's 500 Stock Index is generally representative of the broad
domestic stock universe, and the S&P/BARRA Index is representative of a less
diversified index of large growth stocks; they are both unmanaged and do not
reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees.
Investment return and net asset value (NAV) will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund posted a total return of 3.01%/1/ during the six months ended
January 31, 1998 (returns are for Retail Class without the sales charge). That
compared to a 3.56% return for the S&P 500 Stock Index.
The most important event during the period was the financial crisis in Asia.
The Asian problems hurt companies with international orientations, especially
those that are sensitive to global capital spending. That group includes two
sectors overweighted by the Fund: technology and oil services companies.
However, our strategy of holding industry leaders like Compaq (4.3% of net
assets in the portfolio) and Schlumberger (2.41%) helped bolster the Fund,
since such companies held up relatively well.
Its overweighting in health-care stocks, which did well during the period,
also helped the Fund's performance relative to its benchmark. Health care, an
essential growth area for the Fund, is not affected by fluctuations in global
capital spending. We increased the Fund's weighting in that sector from 18.07%
to 20.8%.
4
<PAGE>
We also felt that fears about the Asian crisis affecting the technology
sector were overblown. Thus, we used the downturn in technology stocks to buy
industry leaders at bargain prices, positioning the Fund to do well in a market
rebound. The Fund's technology weighting rose from 19.64% to 22.57% of the
portfolio's assets.
We believe that the long-term outlook for the U.S. stock market is positive,
and we will continue to invest in high-growth stocks. In particular, we intend
to remain heavily exposed to the technology and health-care sectors, using dips
in stock prices as buying opportunities.
As of January 31, 1998, the Fund's top five holdings as a percent of total
net assets were Merck (4.5%), Philip Morris (4.4%), Compaq (4.3%), Travelers
(3.3%), and Cisco Systems (3.3%)./2/
- --------
/1/ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had
a total return of -1.11% for the six-month period.
/2/ The composition of the Fund's holdings is subject to change.
5
<PAGE>
PACIFIC CAPITAL GROWTH AND INCOME FUND
Pacific Capital Growth and Income Fund+
Growth of a $10,000 Investment
S&P 500
Stock Institutional (Y)
Index++ Retail (A)* No Load
1/31/88 10000 9600 10000
1/31/89 12013 11248 11736
1/31/90 13742 12781 13359
1/31/91 14893 13868 14547
1/31/92 18724 16150 16981
1/31/93 20195 16631 17528
1/31/94 22790 17790 18792
1/31/95 22920 18101 19145
1/31/96 31757 22839 24218
1/31/97 40132 28193 29966
1/31/98 50946 35895 38260
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
Average Annual Total Return
1/31/98 1 Year 5 Year 10 Year
Retail (A)* 22.55% 15.68% 13.63%
Institutional (Y) 27.68% 16.90% 14.36%
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 Pacific Century Trust and managed the same as the Fund in all
material respects, for periods dating back to January 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 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, 1998, the Fund delivered a total
return of 4.74%/1/ (returns are for Retail Class without sales charge). That
compared to a return of 3.56% for the Standard & Poor's 500 Stock Index and a
return of 2.37% for the Lipper Growth & Income Fund Index.
Market performance was volatile during the period, reflecting the Asian
financial crisis. Although the technology stocks generally lagged during the
period, certain software and networking stocks in the portfolio did well, one
being Cisco Systems (2.14% of net assets in the portfolio). The Fund also
benefited from its overweighting in health care, one of the top-performing
sectors during the period. In particular, the major pharmaceutical stocks, such
as Pfizer (1.51%), performed well. Lastly, telecommunications stocks did
surprisingly well, with Century Telephone (1.21%) earning a total return of
44%.
We increased the Fund's exposure to domestic retail stocks by adding Kohl's
Department Stores (1.24%) and Newell Co. (1.00%). Newell imports from Asia and
thus is likely to benefit from weak currencies in that region. We also took new
positions in selected money-management firms. Among them was T. Rowe Price
(1.11%), which we felt was undervalued. The technology sector's volatility
created bargains in that sector, and we added to the Fund's stake in Compaq
(2.97%) when its price declined.
6
<PAGE>
Going forward, we expect slower economic growth. We will continue to monitor
closely both topline sales and earnings momentum. We anticipate maintaining
overweightings in technology and health care, while building an overweighting
in financial stocks.
As of January 31, 1998, the Fund's top five holdings as a percent of total
net assets were Philip Morris (4.05%), Merck & Co. (3.22%), Compaq (2.97%), GTE
Corporation (2.63%) and Bank of America Corporation (2.33%)./2/
- --------
/1/ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had
a total return of 0.55% for the six-month period.
/2/ The composition of the Fund's holdings is subject to change.
7
<PAGE>
PACIFIC CAPITAL NEW ASIA GROWTH FUND+
Pacific Capital New Asia Fund
Growth of a $10,000 Investment
MSCI AC
Far East
Free ex Institutional (Y)
Japan++ Retail (A)* No Load
2/15/95 10331 9480 10000
1/31/96 10704 11527 12183
1/31/97 12150 12727 13490
1/31/98 6684 8468 8990
* Reflects 5.25% Maximum Sales Charge
Past performance is not predictive of future results.
Average Annual Total Return
Since
Inception
1/31/98 1 Year (2/15/95)
Retail (A)* -36.97% -5.45%
Institutional (Y) -33.36% -3.53%
++The performance of the Pacific Capital New Asia Growth Fund is measured
against the Morgan Stanley Capital International (MSCI) AC Far East Free Index
(excluding Japan), which is unmanaged and is generally representative of the
performance of stock markets in that region. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The Fund's performance reflects the deduction of
fees for these value-added services.
Investment return and 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, 1998, the Fund's net asset value
declined from $13.89 to $7.70 (Retail Class), and the Fund posted a total
return of -37.96%./1/ That compared to a -49.85% loss for the Fund's benchmark,
the MSCI AC Far East Free ex Japan Index.
The continued economic problems in Southeast Asia led to significant declines
in the markets of that region during the period. However, the Fund's large
investments in Hong Kong, China and Taiwan helped reduce losses, as those
markets weathered the crisis relatively well. We continued to invest heavily in
sectors that we believe can generate long-term sustainable growth.
Infrastructure is one such sector; companies in that area recently accounted
for around 20% of the portfolio. Electronics companies stood at 17% of the
portfolio./2/
We reduced the Fund's exposure to consumer-related stocks, which now account
for only about 6% of the portfolio. That decision reflects concern about
slowing economic growth in the region and its likely impact on consumer demand.
There may be continued volatility in Asia during the coming months. However,
investor concerns have in some cases been overblown. For example, some
investors worry that China might devalue its currency to make it easier for
their exports to compete with exports from other countries in the region, such
as Thailand. However, the Chinese government is very aware of the risks of
devaluing their currency and does not need to do so at this time. Economic
growth may slow in the region, and some countries may experience recessions.
8
<PAGE>
The turmoil in Asia has created a number of opportunities for the Fund. We
anticipate that by mid-February we will act to reduce the cash stake of the
portfolio from around 40% of assets to approximately 25%. We will focus on
companies that are likely to emerge from the crisis with increased market
shares and better competitive positions.
Export-related stocks may have potential to become a much higher percentage
of the portfolio going forward, with a special focus on export-oriented
businesses that have U.S. dollar revenues. That will increase our exposure to
Taiwan and electronics. However, we will be mindful of the somewhat high
valuations in Taiwan as well as of concerns for a potential slowdown in demand
for personal computers.
The recent declines in these markets may have caused some investors to
rethink their commitment to the region. Our commitment remains strong, and we
will look for ways to take advantage of the recent downturn by investing in
companies and sectors whose qualities may have been overlooked in the recent
environment.
- --------
/1/ With the maximum sales charge of 5.25%, the Fund's Retail Class shares had
a total return of -41.22% for the six-month period.
/2/ The composition of the Fund's holdings is subject to change.
+ International investing involves increased risk and volatility.
9
<PAGE>
PACIFIC CAPITAL U.S. TREASURY SECURITIES FUND
Pacific Capital U.S. Treasury Securities Fund+
Growth of a $10,000 Investment
Merrill Lynch
U.S. Treasuries
All Maturity Institutional (Y)
Index Retail (A)* No Load
1/31/88 10000 9600 10000
1/31/89 10666 9884 10296
1/31/90 12311 10894 11394
1/31/91 13042 12053 12613
1/31/92 14332 13427 14077
1/31/93 16500 14950 15697
1/31/94 18296 16523 17386
1/31/95 18260 15370 16181
1/31/96 20041 18694 19733
1/31/97 21057 18267 19349
1/31/98 23195 20103 21344
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
Average Annual Total Return
1/31/98 1 Year 5 Year 10 Year
Retail (A)* 5.70% 5.23% 7.23%
Institutional (Y) 10.31% 6.33% 7.88%
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 Pacific Century Trust and managed the same as the Fund in
all material respects, for periods dating back to January 31, 1988, 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 U.S. Treasuries All Maturity Index represents the
performance of both short-term and long-term U.S. 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.
Interest rates generally moved lower during the six-month period, with most
of the decline coming among longer term securities. For example, the yield on a
30-year Treasury bond fell from 6.30% at the start of the period to 5.86% on
January 31, 1998. Several important factors contributed to that interest rate
decline.
First, economic turmoil in Asia caused a flight of capital from those markets
into other investments--including the U.S. Treasury market. Concerns that the
Asian markets' crisis would contribute to a global slowdown in GDP (Gross
Domestic Product) growth also were favorable for the bond market. Second,
domestic fiscal and monetary policy contributed to the strong performance of
the bond market. A projected 1998 budget surplus could mean that fewer new
bonds will need to be issued in the coming year, which should support existing
bond prices. Meanwhile, the Federal Reserve refrained from changing interest
rates during the period.
Third, inflation remained very low during the period, making bonds' real
returns more attractive to investors. In that environment, we extended the
Fund's average maturity and duration to lock-in higher yields.
10
<PAGE>
We increased the Fund's average maturity from 8.66 years at the start of the
period to 9.76 years by January 31, 1998, raising the duration from 5.39 years
to 6.05 years. The Fund's duration is now 20% longer than that of its index,
the Merrill Lynch U.S. Treasuries All Maturity Index./1/
Looking ahead, we will seek to maintain the Fund's duration and average
maturity longer than those of its benchmark. We also believe the Asian economic
crisis will contribute to slower growth in the United States. In that
environment we expect long-term interest rates to continue to decline, boosting
the prices of the longer term securities that the Fund holds.
- --------
/1/ The composition of the Fund's holdings is subject to change.
11
<PAGE>
PACIFIC CAPITAL SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
Growth of a $10,000 Investment
Merrill Lynch
3-6 Year
U.S. Treasury Institutional (Y)
Index+ Retail (A)* No Load
1/31/93 10000 9775 10000
1/31/94 10111 9869 10096
1/31/95 9904 9459 9692
1/31/96 11405 10689 10992
1/31/97 11740 10832 11156
1/31/98 12831 11700 12079
* Reflects 2.25% Maximum Sales Charge
Past performance is not predictive of future results.
10/14/94, Commencement of operations
of the Institutional Class
Average Annual Total Return
Since
Inception
1/31/98 1 Year (12/13/93)
Retail (A)* 5.56% 3.87%
Institutional (Y) 8.28% 4.67%
+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.
Short-term interest rates declined during the six months ended January 31,
1998, reflecting a combination of factors that supported bond prices. Most
significant was the economic turmoil in Asia, which many investors believe will
result in slower economic growth worldwide. In the United States, inflation
remained in check during the period, and therefore, the Federal Reserve kept
the federal funds rate steady at 5.5%. Further good news for bonds came in the
form of a projected U.S. budget surplus in 1998.
The Fund began the period with its duration and average maturity slightly
shorter than those of its benchmark, the Merrill Lynch 3-5-Year Treasury Index.
When rates began falling, we extended the Fund's average maturity and duration
to lock-in higher yields. We increased the Fund's average maturity from 3.91
years at the start of the period to 4.11 years by January 31, 1998, extending
the duration from 3.21 years to 3.46 years. The Fund's duration is now
approximately 4% longer than that of its benchmark./1/
12
<PAGE>
We believe that the Asian economic crisis will contribute to slower growth in
the United States. That should allow the Federal Reserve to lower short-term
interest rates in the second quarter of 1998. Once that occurs, we will further
lengthen the Fund's average maturity and duration to keep the Fund's position
longer than that of its benchmark. However, since we are currently close to the
Fund's average maturity limit of five years, we do not expect any lengthening
to be particularly dramatic.
- --------
/1/ The composition of the Fund's holdings is subject to change.
13
<PAGE>
PACIFIC CAPITAL DIVERSIFIED FIXED INCOME FUND
Pacific Capital Diversified Fixed Income Fund+
Growth of a $10,000 Investment
Merrill Lynch
Corporate &
Government Institutional (Y)
Master Index++ Retail (A)* No Load
1/31/88 10000 9600 10000
1/31/89 10546 9923 10358
1/31/90 11726 10846 11352
1/31/91 13033 12000 12573
1/31/92 14722 13600 14300
1/31/93 16432 15108 15928
1/31/94 18131 17108 18079
1/31/95 17608 15634 16668
1/31/96 20709 18922 20231
1/31/97 21208 18702 20031
1/31/98 23590 20637 22145
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
10/14/94, Commencement of operations of the
Retail and Institutional Classes
Average Annual Total Return
1/31/98 1 Year 5 Year 10 Year
Retail (A)* 5.90% 5.57% 7.51%
Institutional (Y) 10.56% 6.81% 8.27%
+The quoted performance of the Pacific Capital Diversified Fixed Income Fund
("Fund") includes the performance of certain common trust fund ("Commingled")
accounts advised by Pacific Century Trust and managed the same as the Fund in
all material respects, for periods dating back to January 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 Merrill Lynch Corporate & 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 economy continued to show evidence of strong growth during the six-month
period that ended January 31, 1998. After rising early in the period due to
investor fears that a tight labor market would rekindle inflation, interest
rates ended the period lower. The yield on a 30-year U.S. Treasury bond fell
from 6.30% to 5.86%. In that environment, the Fund posted a total return of
5.15%/1/ for the period (returns are for Retail Class without the sales
charge).
Rates fell because the flight to quality from the Asian economic crisis
resulted in strong buying of U.S. Treasury bonds and other U.S. dollar-
denominated securities. Investors also anticipated that the Asian economic
problems would slow U.S. domestic economic growth. Those factors combined with
continued low inflation to bring interest rates back down to the lowest levels
we have seen in several years.
In that environment, we extended the Fund's duration from 5.2 years to 6.3
years--20% longer than that of its benchmark, the Merrill Lynch Corporate &
Government Master Index. The Fund's average maturity rose from 8 years to 11.5
years.
14
<PAGE>
We invested 35% of the Fund's assets in U.S. Treasury bonds and 12% in agency
securities. The remaining 53% of the portfolio was invested in AA and AAA-rated
corporate bonds. Such high-quality securities outperformed lower rated issues
during the period. The average credit quality of the Fund's holdings remained
AAA./2/
Looking ahead, we expect the Asian financial crisis to have a global
deflationary effect and to contribute to slower domestic economic growth in
1998. With inflation still low, we believe the Federal Reserve will act to
lower interest rates during the second quarter of 1998. We will seek to
continue to position the Fund longer than its benchmark to capture higher
yields and greater potential price appreciation if interest rates decline.
- --------
/1/ With the maximum sales charge of 4.00%, the Fund's Retail Class shares had
a total return of 0.95% for the period.
/2/ The composition of the Fund's holdings is subject to change.
15
<PAGE>
PACIFIC CAPITAL TAX-FREE SECURITIES FUND+
Pacific Capital Tax-Free Securities Fund+
Growth of a $10,000 Investment
Lehman
Brothers
Municipal Institutional (Y)
Bond Index++ Retail (A)* No Load
1/31/88 10000 9600 10000
1/31/89 10857 10384 10844
1/31/90 11729 11165 11688
1/31/91 12814 11903 12500
1/31/92 14211 13097 13781
1/31/93 15608 14218 15000
1/31/94 17522 15870 16781
1/31/95 16898 15014 15958
1/31/96 19442 17179 18284
1/31/97 20189 17624 18806
1/31/98 22230 19262 20639
* Reflects 4.0% Maximum Sales Charge
Past performance is not predictive of future results.
10/14/94, Commencement of operations of the
Retail and Institutional Classes
Average Annual Total Return
1/31/98 1 Year 5 Year 10 Year
Retail (A)* 4.91% 5.40% 6.78%
Institutional (Y) 9.75% 6.59% 7.51%
+The quoted performance of the Pacific Capital Tax-Free Securities Fund
("Fund") includes the performance of certain common trust fund ("Commingled")
accounts advised by Pacific Century Trust and managed the same as the Fund in
all material respects, for periods dating back to January 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 Municipal Bond Index is unmanaged and is generally
representative of a broad range of maturities. 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-month period ended January 31, 1998, the financial markets
continued to be volatile. This situation was further amplified by the financial
crisis in Asia, which spread its way through the global financial markets. The
30-year Treasury yield began the period at 6.30%, moved to a high of 6.69% in
mid-September, and fell to a low of 5.69% in mid-January before rising to 5.80%
on January 31, 1998. The municipal bond market took its direction from the
Treasury market, but the volatility was less pronounced. The 30-year AAA G.O.
yield started the period at 5.06%, moved to 5.30% on September 1, 1997, fell to
a low of 4.80% on January 15, 1998, and ended the period at 4.92%.
During the period, cash flow into municipal bond funds remained very flat, as
investors' attention continued to be drawn to the equity markets. Unexpected
refunding issues boosted new issue supply in the market, as interest rates
declined to levels not seen since 1993. Credit spreads also continued to narrow
as the overall credit quality of many states and municipalities continued to
improve, a reflection of the strength of the national economy. Hawaii,
unfortunately, did not participate in this prosperity as it slid into the
seventh year of economic doldrums. Fortunately for the Fund, we have been
proactive in the purchase of secondary insurance to attach to most of the
Hawaii bonds to immunize the portfolio against credit-quality deterioration. We
also
16
<PAGE>
have focused our efforts in bolstering the portfolio with insured and high-
grade bonds from economically strong states to fulfill the balanced objectives
of diversification, performance and principal preservation.
For the period ended January 31, 1998, the Fund had a six-month total return
of 3.76%/1/, and a one year total return of 9.30% (returns are for Retail
Class without the sales charge). The one-year return would translate to a
higher double-digit taxable equivalent return depending on one's marginal tax
rate. Because of our emphasis on credit quality, the Fund continues to have an
average rating of AAA. The non-Hawaii portion of the Fund continues to be
invested in "specialty states" (states with a high state income tax and
concentration of wealth to enhance liquidity and performance) that show a
sound diverse economic base with potential for improvement, such as
California./2/
It is our opinion that the Asian financial crisis will continue to unravel,
giving support to the notion that it will slow down exports while imports from
the region will compete with domestic goods to keep prices down. The threat of
recession or global financial meltdown may prevent the Federal Reserve from
tightening interest rates. All this, together with the absence of inflationary
pressures, as evidenced by both the PPI (Producer Price Index) and the CPI
(Consumer Price Index) data to date and the anticipated slowdown in the
domestic economy, combines to create a very positive scenario for the bond
market. We have positioned the portfolio with a longer average maturity and
duration to take advantage of the potential rally.
- --------
/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, and 4.91% for the one-
year period.
/2/ The composition of the Fund's holdings is subject to change.
+ The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
17
<PAGE>
PACIFIC CAPITAL TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
Pacific Capital Tax-Free Short Intermediate Securities Fund+
Growth of a $10,000 Investment
Lehman
Brothers
5-Year
Municipal Institutional (Y)
Bond Index++ Retail (A)* No Load
1/31/88 10000 9776 10000
1/31/89 10450 9974 10234
1/31/90 11236 10540 10837
1/31/91 12274 11171 11505
1/31/92 13526 12053 12450
1/31/93 14688 12658 13107
1/31/94 15423 13368 13871
1/31/95 15772 13105 13674
1/31/96 17567 14107 14754
1/31/97 18191 14477 15184
1/31/98 19461 15205 16017
* Reflects 2.25% Maximum Sales Charge
Past performance is not predictive of future results.
10/14/94, Commencement of operations of the
Retail and Institutional Classes
Average Annual Total Return
Since
Inception
1/31/98 1 Year 5 Year (3/31/88)
Retail (A)* 2.68% 3.27% 4.35%
Institutional (Y) 5.49% 4.09% 4.90%
+The quoted performance of the Pacific Capital Tax-Free Short Intermediate
Securities Fund ("Fund") includes the performance of certain common trust fund
("Commingled") accounts advised by Pacific Century Trust 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 that
tracks bonds with a maturity range of four to six years. It is important to
note that the Fund may invest only in bonds with a maturity range of five
years or less. 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 six-month period through January 31, 1998, was marked by financial
turmoil in Southeast Asia and volatility throughout the global equity markets.
The Federal Reserve opted to leave interest rates unchanged in light of those
conditions as well as an absence of inflationary pressures and the presence of
signs of a slowdown in the U.S. domestic economy. Against this backdrop, the
bond market pushed through to new highs, supported by a flight to quality and
safety.
Municipal bonds gained less than Treasury bonds as the overall bond market
rallied. Yields on short-term municipal securities declined five basis points
during the six-month period, compared to a larger decline of approximately half
a percentage point on comparable Treasuries. Because of the lagging
performance, short-term municipal bond yields as a ratio of Treasury yields
cheapened from below 70% to approximately 75% of Treasury yields.
18
<PAGE>
With the threat of a Federal Reserve tightening substantially reduced, we
were aggressive in extending the Fund's average maturity from three years at
the beginning of the period to five years (the maximum allowable maturity for
the Fund) on January 31, 1998. The Fund also continued to emphasize credit
quality, with an average rating of AAA, in part because lower quality issues
offered only a very small yield advantage. Meanwhile, the Fund's holdings
(approximately 60% of assets) in Hawaiian municipal issues offered state
residents double tax-exempt yields, while its investments outside of the state
offered the benefits of diversification./1/
The Asian financial crisis, which continues to unfold, likely will reduce
U.S. exports and economic growth. Furthermore, the devaluation of Asian
currencies will cause imports to be more competitive, and thus keep a lid on
domestic prices. In light of our bullish outlook, we will seek to continue to
maintain a longer average maturity for the Fund while remaining focused on
credit quality.
- --------
/1/ The composition of the Fund's holdings is subject to change.
19
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
GROWTH U.S. TREASURY U.S. TREASURY GROWTH AND
STOCK SECURITIES SECURITIES INCOME
FUND FUND FUND FUND
------------ ------------- ------------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $236,950,403;
$20,425,105;
$32,742,603; and
$104,516,338,
respectively).......... $339,926,141 $22,286,358 $33,624,777 $136,366,033
------------ ----------- ----------- ------------
Interest and dividends
receivable............. 172,392 524,628 549,223 146,472
Receivable for capital
shares issued.......... 1,950 -- 10,000 11,759
Receivable from brokers
for investments sold... 3,936,169 -- -- 774,977
Prepaid expenses and
other assets........... 5,976 2,257 2,498 4,395
------------ ----------- ----------- ------------
Total Assets.......... 344,042,628 22,813,243 34,186,498 137,303,636
------------ ----------- ----------- ------------
LIABILITIES:
Dividends payable....... -- 10,596 14,988 --
Payable for capital
shares redeemed........ -- -- -- 455
Payable to brokers for
investments purchased.. 4,064,973 -- -- 1,363,226
Accrued expenses and
other payables:
Investment advisory
fees.................. 232,823 7,026 8,954 92,291
Administration fees.... 8,827 591 840 3,523
Distribution fees--
Retail Class.......... 2,240 234 137 965
Fund accounting fees... 1,355 -- -- 402
Trustees' fees......... 4,210 650 572 2,053
Custodian fees......... 3,646 664 1,094 3,194
Legal fees............. 10,353 1,554 2,265 5,199
Audit fees............. 13,177 1,576 1,675 5,047
Printing costs......... 12,181 1,306 1,192 4,597
Other.................. 1,886 197 455 486
------------ ----------- ----------- ------------
Total Liabilities..... 4,355,671 24,394 32,172 1,481,438
------------ ----------- ----------- ------------
NET ASSETS:
Capital................. 219,278,644 24,921,556 33,420,994 97,341,825
Undistributed
(distributions in excess
of) net investment
income................. (190,655) (35,526) 48 10,201
Accumulated
undistributed net
realized gains (losses)
from investment
transactions........... 17,623,230 (3,958,434) (148,890) 6,620,477
Unrealized appreciation
(depreciation) from
investments............ 102,975,738 1,861,253 882,174 31,849,695
------------ ----------- ----------- ------------
Net Assets............ $339,686,957 $22,788,849 $34,154,326 $135,822,198
============ =========== =========== ============
Net Assets
Retail Class........... $ 10,443,889 $ 1,049,870 $ 635,534 $ 4,570,644
Institutional Class.... 329,243,068 21,738,979 33,518,792 131,251,554
------------ ----------- ----------- ------------
Total................. $339,686,957 $22,788,849 $34,154,326 $135,822,198
============ =========== =========== ============
Outstanding units of
beneficial interest
(shares)
Retail Class........... 682,901 109,237 65,540 277,287
Institutional Class.... 21,492,529 2,260,074 3,450,461 7,953,417
------------ ----------- ----------- ------------
Total................. 22,175,430 2,369,311 3,516,001 8,230,704
============ =========== =========== ============
Net Asset Value
Retail Class--
redemption price per
share................. $ 15.29 $ 9.61 $ 9.70 $ 16.48
============ =========== =========== ============
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)...... $ 15.93 $ 10.01 $ 9.92 $ 17.17
============ =========== =========== ============
Institutional Class--
offering and redemption
price per share........ $ 15.32 $ 9.62 $ 9.71 $ 16.50
============ =========== =========== ============
</TABLE>
See notes to financial statements.
20
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TAX-FREE
DIVERSIFIED TAX-FREE SHORT INTERMEDIATE NEW ASIA
FIXED INCOME SECURITIES SECURITIES GROWTH
FUND FUND FUND FUND
------------ ------------ ------------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $141,308,263;
$377,220,781;
$55,804,654; and
$19,631,134,
respectively).......... $148,186,922 $414,355,512 $56,802,677 $16,412,102
------------ ------------ ----------- -----------
Foreign currency (Cost
$715,653)............... -- -- -- 692,089
Interest and dividends
receivable.............. 3,010,755 4,837,917 588,439 26,524
Receivable from brokers
for investments sold.... -- 985,640 -- 187,352
Prepaid expenses and
other assets............ 3,541 8,971 527 15,939
------------ ------------ ----------- -----------
Total Assets.......... 151,201,218 420,188,040 57,391,643 17,334,006
------------ ------------ ----------- -----------
LIABILITIES:
Dividends payable....... 69,374 164,539 17,347 --
Payable for capital
shares redeemed......... -- -- -- 2,908
Payable to brokers for
investments purchased... -- 1,898,325 2,130,200 319,181
Accrued expenses and
other payables:
Investment advisory
fees.................. 60,434 166,074 18,873 9,177
Administration fees.... 3,951 10,961 1,355 412
Distribution fees--
Retail Class.......... 316 517 127 463
Fund accounting fees... 459 -- 623 --
Transfer agent fees.... -- -- 804 --
Trustees' fees......... 3,364 6,636 868 346
Custodian fees......... 3,310 9,476 3,522 24,950
Legal fees............. 6,759 14,448 4,844 --
Audit fees............. 8,396 18,580 2,562 1,682
Printing costs......... 7,494 14,738 1,797 --
Other.................. 1,182 11,195 9,508 16,381
------------ ------------ ----------- -----------
Total Liabilities..... 165,039 2,315,489 2,192,430 375,500
------------ ------------ ----------- -----------
NET ASSETS:
Capital................. 145,818,698 380,599,322 54,137,276 24,247,221
Undistributed
(distributions in excess
of) net investment
income.................. (2) 18 7 (8,281)
Accumulated
undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... (1,661,176) 138,480 63,907 (4,029,674)
Unrealized appreciation
(depreciation) from
investments............. 6,878,659 37,134,731 998,023 (3,219,032)
Unrealized depreciation
from translation of
assets and liabilities
in foreign currency.... -- -- -- (31,728)
------------ ------------ ----------- -----------
Net Assets............ $151,036,179 $417,872,551 $55,199,213 $16,958,506
============ ============ =========== ===========
Net Assets
Retail Class........... $ 1,445,669 $ 2,356,428 $ 582,089 $ 2,091,158
Institutional Class.... 149,590,510 415,516,123 54,617,124 14,867,348
------------ ------------ ----------- -----------
Total................. $151,036,179 $417,872,551 $55,199,213 $16,958,506
============ ============ =========== ===========
Outstanding units of
beneficial interest
(shares)
Retail Class........... 131,928 215,406 57,222 271,511
Institutional Class.... 13,552,843 37,847,910 5,340,709 1,924,893
------------ ------------ ----------- -----------
Total................. 13,684,771 38,063,316 5,397,931 2,196,404
============ ============ =========== ===========
Net Asset Value
Retail Class--
redemption price per
share................. $ 10.96 $ 10.94 $ 10.17 $ 7.70
============ ============ =========== ===========
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)...... $ 11.42 $ 11.40 $ 10.40 $ 8.13
============ ============ =========== ===========
Institutional Class--
offering and
redemption price per
share................. $ 11.04 $ 10.98 $ 10.23 $ 7.72
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
21
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
U.S. TREASURY U.S. TREASURY GROWTH AND
GROWTH STOCK SECURITIES SECURITIES INCOME
FUND FUND FUND FUND
------------ ------------- ------------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ -- $ 752,565 $ 850,177 $ 1,664
Dividend income......... 1,329,776 5,565 8,051 966,603
Foreign tax withholding. (1,524) -- -- --
------------ ---------- ---------- -----------
Total Income.......... 1,328,252 758,130 858,228 968,267
------------ ---------- ---------- -----------
EXPENSES:
Investment advisory
fees.................... 963,883 69,447 71,262 516,333
Administration fees..... 240,973 23,149 28,505 129,087
Distribution fees--
Retail Class............ 37,814 3,991 2,292 15,247
Custodian fees.......... 10,026 1,918 2,109 8,736
Accounting fees......... 37,469 4,290 4,972 20,692
Legal fees.............. 23,480 1,312 1,538 12,432
Audit fees.............. 11,602 1,422 1,294 7,920
Trustees' fees and
expenses................ 10,532 978 1,160 5,684
Transfer agent fees..... 10,786 8,130 8,304 9,834
Registration and filing
fees.................... 672 228 226 600
Printing costs.......... 16,108 848 1,653 9,116
Other................... 2,896 165 328 1,246
------------ ---------- ---------- -----------
Total expenses before
voluntary fee
reductions............ 1,366,241 115,878 123,643 736,927
Expenses voluntarily
reduced............... (73,403) (12,050) (37,159) (35,984)
------------ ---------- ---------- -----------
Net Expenses.......... 1,292,838 103,828 86,484 700,943
------------ ---------- ---------- -----------
Net Investment Income... 35,414 654,302 771,744 267,324
------------ ---------- ---------- -----------
REALIZED/UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Net realized gains on
investment transactions. 34,038,041 143,656 2,498 11,471,726
Net change in unrealized
appreciation on
investments............. (21,917,038) 386,614 469,185 (5,387,754)
------------ ---------- ---------- -----------
Net realized/unrealized
gains (losses) on
investments............. 12,121,003 530,270 471,683 6,083,972
------------ ---------- ---------- -----------
Change in net assets
resulting from
operations.............. $ 12,156,417 $1,184,572 $1,243,427 $ 6,351,296
============ ========== ========== ===========
</TABLE>
See notes to financial statements.
22
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 1998
(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......... $4,614,298 $ 9,154,306 $ 930,293 $ 125,851
Dividend income......... 49,824 32,885 15,619 155,722
Foreign tax withholding. -- -- -- (8,311)
---------- ----------- ---------- -----------
Total Income.......... 4,664,122 9,187,191 945,912 273,262
---------- ----------- ---------- -----------
EXPENSES:
Investment advisory
fees.................... 431,838 995,189 104,439 84,273
Administration fees..... 143,947 331,731 41,776 18,728
Distribution fees--
Retail Class............ 5,016 9,362 2,369 10,198
Custodian fees.......... 5,832 15,670 6,596 48,444
Accounting fees......... 23,725 64,568 8,964 6,415
Legal fees.............. 11,208 30,754 1,888 12,000
Audit fees.............. 5,166 14,378 1,546 1,294
Trustees' fees and
expenses................ 5,520 13,776 1,780 954
Transfer agent fees..... 9,912 12,734 8,106 8,546
Registration and filing
fees.................... 924 590 1,202 486
Printing costs.......... 6,170 18,036 2,854 5,905
Other................... 952 3,157 371 162
---------- ----------- ---------- -----------
Total expenses before
voluntary fee
reductions and
reimbursements....... 650,210 1,509,945 181,891 197,405
Expenses voluntarily
reduced............... (51,443) (125,687) (16,569) (11,480)
Expenses reimbursed... -- -- -- (3,671)
---------- ----------- ---------- -----------
Net Expenses.......... 598,767 1,384,258 165,322 182,254
---------- ----------- ---------- -----------
Net Investment Income... 4,065,355 7,802,933 780,590 91,008
---------- ----------- ---------- -----------
REALIZED/UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains
(losses) on investment
transactions............ 899,901 753,707 108,357 (3,930,954)
Net realized gains
(losses) on foreign
currency transactions... -- -- -- (98,718)
Net change in unrealized
appreciation on
investments............. 2,726,088 5,604,014 283,985 (4,894,547)
Net change in unrealized
appreciation
(depreciation) on
translation of assets
and liabilities in
foreign currencies..... -- -- -- (18,817)
---------- ----------- ---------- -----------
Net realized/unrealized
gains on investments and
foreign currencies...... 3,625,989 6,357,721 392,342 (8,943,036)
---------- ----------- ---------- -----------
Change in net assets
resulting from
operations.............. $7,691,344 $14,160,654 $1,172,932 $(8,852,028)
========== =========== ========== ===========
</TABLE>
See notes to financial statements.
23
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SHORT INTERMEDIATE
GROWTH STOCK FUND U.S. TREASURY SECURITIES FUND U.S. TREASURY SECURITIES FUND
------------------------------ ------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, 1998 JULY 31, 1997 JANUARY 31, 1998 JULY 31, 1997 JANUARY 31, 1998 JULY 31, 1997
---------------- ------------- ---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 35,414 $ 820,755 $ 654,302 $ 1,418,321 $ 771,744 $ 1,307,440
Net realized gains
(losses) on investment
transactions.......... 34,038,041 18,904,660 143,656 (192,623) 2,498 (52,500)
Net change in
unrealized
appreciation
(depreciation) on
investments........... (21,917,038) 54,151,452 386,614 873,271 469,185 504,853
------------ ------------ ----------- ----------- ----------- ------------
Change in net assets
resulting from
operations............. 12,156,417 73,876,867 1,184,572 2,098,969 1,243,427 1,759,793
------------ ------------ ----------- ----------- ----------- ------------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (3,666) (13,022) (28,821) (52,996) (15,791) (38,945)
In excess of net
investment income..... -- (3,861) -- (7,810) -- --
From net realized
gains................. (1,563,676) (24) -- -- -- --
In excess of net
realized gains........ -- -- -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income.................. (207,716) (857,427) (625,483) (1,365,325) (755,945) (1,268,495)
In excess of net
investment income...... -- (17,466) -- (32,190) -- --
From net realized gains. (29,415,345) (777) -- -- -- --
In excess of net
realized gains.......... -- -- -- -- -- --
------------ ------------ ----------- ----------- ----------- ------------
Change in net assets
from shareholder
distributions.......... (31,190,403) (892,577) (654,304) (1,458,321) (771,736) (1,307,440)
------------ ------------ ----------- ----------- ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 27,520,671 39,726,376 412,366 1,643,143 2,897,159 12,120,256
Proceeds from shares
issued in connection
with common trust fund
acquistion............ 120,286,123 -- -- -- 9,573,342 --
Dividends reinvested... 30,004,614 92,112 628,503 1,415,273 38,682 92,421
Cost of shares
redeemed.............. (27,239,671) (82,478,968) (3,701,476) (3,007,324) (6,166,995) (10,025,991)
------------ ------------ ----------- ----------- ----------- ------------
Change in net assets
from share
transactions........... 150,571,737 (42,660,480) (2,660,607) 51,092 6,342,188 2,186,686
------------ ------------ ----------- ----------- ----------- ------------
Change in net assets.... 131,537,751 30,323,810 (2,130,339) 691,740 6,813,879 2,639,039
NET ASSETS:
Beginning of period.... 208,149,206 177,825,396 24,919,188 24,227,448 27,340,447 24,701,408
------------ ------------ ----------- ----------- ----------- ------------
End of period.......... $339,686,957 $208,149,206 $22,788,849 $24,919,188 $34,154,326 $ 27,340,447
============ ============ =========== =========== =========== ============
SHARE TRANSACTIONS:
Issued................. 1,676,865 2,786,983 43,248 178,092 302,823 1,287,668
Issued in connection
with common trust fund
acquisition........... 8,205,056 -- -- -- 995,150 --
Reinvested............. 1,991,083 6,775 66,758 153,769 4,048 9,773
Redeemed............... (1,632,304) (5,810,150) (397,860) (325,626) (644,730) (1,060,313)
------------ ------------ ----------- ----------- ----------- ------------
Change in shares........ 10,240,700 (3,016,392) (287,854) 6,235 657,291 237,128
============ ============ =========== =========== =========== ============
</TABLE>
See notes to financial statements.
24
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND DIVERSIFIED FIXED INCOME FUND TAX-FREE SECURITIES FUND
------------------------------ ------------------------------ -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 31, 1998 JULY 31, 1997 JANUARY 31, 1998 JULY 31, 1997 JANUARY 31, 1998 JULY 31, 1997
---------------- ------------- ---------------- ------------- ----------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 267,324 $ 754,342 $ 4,065,355 $ 8,212,087 $ 7,802,933 $ 14,235,541
Net realized gains
(losses) on investment
transactions.......... 11,471,726 7,101,576 899,901 (2,549,993) 753,707 1,060,114
Net change in
unrealized
appreciation
(depreciation) on
investments........... (5,387,754) 31,411,841 2,726,088 7,498,463 5,604,014 11,477,661
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 6,351,296 39,267,759 7,691,344 13,160,557 14,160,654 26,773,316
------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (5,582) (9,645) (36,085) (61,085) (55,497) (58,439)
In excess of net
investment income..... -- (2,559) -- -- -- --
From net realized
gains................. (376,436) (74,382) -- -- (12,546) (3,793)
In excess of net
realized gains........ -- -- -- (10,239) -- --
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................ (296,149) (719,837) (4,029,272) (8,151,002) (7,747,418) (14,177,102)
In excess of net
investment income..... -- -- -- -- -- --
From net realized
gains................. (10,964,762) (3,890,622) -- -- (1,612,136) (1,632,634)
In excess of net
realized gains........ -- -- -- (1,342,055) -- --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... (11,642,929) (4,697,045) (4,065,357) (9,564,381) (9,427,597) (15,871,968)
------------ ------------ ------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 20,071,849 45,972,983 25,040,323 45,518,283 20,921,819 33,235,182
Proceeds from shares
issued in connection
with common trust fund
acquisition........... -- -- 8,914,400 -- 104,600,137 --
Dividends reinvested... 11,197,352 2,407,024 58,070 669,521 1,639,497 1,633,767
Cost of shares
redeemed.............. (17,702,727) (30,990,437) (20,288,680) (78,932,125) (13,331,255) (35,963,665)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 13,566,474 17,389,570 13,724,113 (32,744,321) 113,830,198 (1,094,716)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets.... 8,274,841 51,960,284 17,350,100 (29,148,145) 118,563,255 9,806,632
NET ASSETS:
Beginning of period.... 127,547,357 75,587,073 133,686,079 162,834,224 299,309,296 289,502,664
------------ ------------ ------------ ------------ ------------ ------------
End of period.......... $135,822,198 $127,547,357 $151,036,179 $133,686,079 $417,872,551 $299,309,296
============ ============ ============ ============ ============ ============
SHARE TRANSACTIONS:
Issued................. 1,195,482 3,234,048 2,325,069 4,316,676 1,930,849 3,152,571
Issued in connection
with common trust fund
acquisition........... -- -- 817,085 -- 9,658,369 --
Reinvested............. 691,921 178,441 5,390 62,706 152,081 153,874
Redeemed............... (1,043,932) (2,162,896) (1,862,043) (7,448,705) (1,236,233) (3,412,859)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares........ 843,471 1,249,593 1,285,501 (3,069,323) 10,505,066 (106,414)
============ ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
25
<PAGE>
PACIFIC CAPITAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TAX-FREE SHORT INTERMEDIATE
SECURITIES FUND NEW ASIA GROWTH FUND
------------------------------ ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, 1998 JULY 31, 1997 JANUARY 31, 1998 JULY 31, 1997
---------------- ------------- ---------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 780,590 $ 1,491,501 $ 91,008 $ 69,565
Net realized gains on
investment
transactions.......... 108,357 240,632 (3,930,954) 1,836,689
Net realized gains
(losses) on foreign
currency transactions. -- -- (98,718) (80,544)
Net change in
unrealized
appreciation
(depreciation) on
investments........... 283,985 306,192 (4,894,547) 2,113,745
Net change in
unrealized
depreciation on
translation of assets
and liabilities in
foreign currencies.... -- -- (18,817) (13,022)
----------- ----------- ----------- -----------
Change in net assets
resulting from
operations.............. 1,172,932 2,038,325 (8,852,028) 3,926,433
----------- ----------- ----------- -----------
DISTRIBUTIONS TO RETAIL
CLASS SHAREHOLDERS:
From net investment
income................ (10,994) (28,544) -- (770)
In excess of net
investment income..... -- -- -- (714)
From net realized
gains................. (3,439) (986) (256,222) (24,563)
DISTRIBUTIONS TO
INSTITUTIONAL CLASS
SHAREHOLDERS:
From net investment
income................ (769,589) (1,462,957) (34,753) (15,241)
In excess of net
investment income..... -- -- -- --
From net realized
gains................. (214,455) (49,244) (1,580,467) (130,393)
----------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions........... (998,477) (1,541,731) (1,871,442) (171,681)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 7,441,693 6,196,477 6,181,032 11,076,770
Proceeds from shares
issued in connection
with common trust fund
acquisition........... 12,804,860 -- -- --
Dividends reinvested... 224,262 67,282 1,781,941 103,064
Cost of shares
redeemed.............. (3,580,419) (8,549,132) (2,115,596) (3,558,390)
----------- ----------- ----------- -----------
Change in net assets
from share transactions. 16,890,396 (2,285,373) 5,847,377 7,621,444
----------- ----------- ----------- -----------
Change in net assets.... 17,064,851 (1,788,779) (4,876,093) 11,376,196
NET ASSETS:
Beginning of period.... 38,134,362 39,923,141 21,834,599 10,458,403
----------- ----------- ----------- -----------
End of period.......... $55,199,213 $38,134,362 $16,958,506 $21,834,599
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................. 732,666 613,972 641,130 902,626
Issued in connection
with common trust fund
acquisition........... 1,259,082 -- -- --
Reinvested............. 22,117 6,643 202,979 8,369
Redeemed............... (351,727) (845,154) (214,873) (283,285)
----------- ----------- ----------- -----------
Change in shares........ 1,662,138 (224,539) 629,236 627,710
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
26
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS (97.09%)
Aerospace/Defense (1.36%)
85,843 General Motors Class H............................... $ 2,972,314
32,067 Raytheon Co--Class A................................. 1,639,421
------------
4,611,735
------------
Banks (1.86%)
88,885 BankAmerica Corp..................................... 6,316,390
------------
Beverages (4.92%)
129,958 Coca-Cola Co......................................... 8,414,781
230,424 PepsiCo, Inc......................................... 8,309,666
------------
16,724,447
------------
Capital Goods--Machinery & Equipment (1.01%)
61,333 Illinois Tool Works, Inc............................. 3,415,481
------------
Chemicals (2.04%)
75,610 Avery Dennison Corp.................................. 3,392,999
90,939 Sigma-Aldrich........................................ 3,523,886
------------
6,916,885
------------
Computers & Peripherals (9.46%)
175,126 Cisco Systems (b).................................... 11,043,915
483,540 Compaq Computer Corp. (b)............................ 14,536,421
136,923 Sun Microsystems, Inc. (b)........................... 6,563,746
------------
32,144,082
------------
Consumer Goods & Services (0.76%)
95,009 Callaway Golf Co..................................... 2,565,243
------------
Electrical Equipment (5.56%)
129,691 General Electric Co.................................. 10,051,053
43,275 Jabil Circuit Incorporated........................... 1,630,927
165,894 SCI Systems, Inc. (b)................................ 7,216,389
------------
18,898,369
------------
Electronic & Electrical (1.46%)
81,985 Emerson Electric Co.................................. 4,960,093
------------
Financial Services (2.65%)
146,150 MBNA Corporation..................................... 4,539,784
69,475 Washington Mutual.................................... 4,463,769
------------
9,003,553
------------
Food Processing & Packaging (3.27%)
163,821 Sara Lee Corp........................................ 8,938,483
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Food Processing & Packaging, continued
29,285 Wm. Wrigley Jr. Co................................... $ 2,165,260
------------
11,103,743
------------
Footwear (0.48%)
40,848 Nike, Inc............................................ 1,636,473
------------
Funeral Services (2.33%)
202,883 Service Corp. International.......................... 7,912,437
------------
Health Care (0.91%)
129,331 Health Management Assoc. (b)......................... 3,095,861
------------
Household Products (1.83%)
151,538 Newell Co............................................ 6,222,529
------------
Insurance (4.36%)
31,462 American International Group,
Inc................................................. 3,470,652
229,131 Travelers, Inc....................................... 11,341,985
------------
14,812,637
------------
Medical Supplies (2.08%)
69,450 Guidant Corp......................................... 4,462,163
50,883 Medtronic, Inc....................................... 2,598,213
------------
7,060,376
------------
Oilfield Equipment & Services (4.08%)
116,594 Nabors Industries, Inc............................... 2,790,969
111,248 Schlumberger Ltd..................................... 8,197,587
72,289 Transocean Offshore Inc.............................. 2,873,488
------------
13,862,044
------------
Paint, Varnishes, Enamels (1.22%)
145,728 Sherwin Williams Co.................................. 4,153,248
------------
Pharmaceuticals (17.85%)
102,918 Abbott Laboratories.................................. 7,287,881
35,370 American Home Products Corp.......................... 3,375,624
77,135 Bristol Myers Squibb Co.............................. 7,689,395
154,382 Eli Lilly & Co....................................... 10,420,785
106,546 Johnson & Johnson, Inc............................... 7,131,923
130,251 Merck & Co. Inc...................................... 15,271,930
81,633 Pfizer, Inc.......................................... 6,688,804
70,961 Pharmacia & Upjohn................................... 2,727,563
------------
60,593,905
------------
</TABLE>
Continued
27
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Raw Materials (0.82%)
67,183 Praxair, Inc......................................... $ 2,783,896
------------
Restaurants (1.03%)
156,281 Wendy's International................................ 3,487,020
------------
Retail (4.86%)
168,289 Dollar General Corp.................................. 6,121,512
71,688 Kohl's Corp. (b)..................................... 4,973,355
135,980 Wal-Mart Stores, Inc................................. 5,422,203
------------
16,517,070
------------
Software & Computer Services (9.81%)
50,072 America Online, Inc.................................. 4,791,265
61,285 BMC Software Inc. (b)................................ 4,152,059
176,171 Computer Associates International, Inc............... 9,370,095
118,961 Compuware Corp....................................... 4,639,479
69,589 Microsoft Corp. (b).................................. 10,381,809
------------
33,334,707
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Telecommunications--Services and Equipment (3.86%)
39,725 Ciena Corporation................................... $ 2,187,358
67,380 Lucent Technologies, Inc............................ 5,963,130
110,080 Northern Telecom Ltd................................ 4,967,360
------------
13,117,848
------------
Tobacco & Tobacco Products (4.31%)
352,919 Philip Morris Cos., Inc............................. 14,646,139
------------
Transportation--Air (1.55%)
202,138 Southwest Airlines Co............................... 5,268,222
------------
Utilities--Telecommunications (1.36%)
87,773 Century Telephone Enterprises, Inc.................. 4,630,022
------------
Total Common Stocks (Cost--$226,818,717) 329,794,455
------------
INVESTMENT COMPANY (2.98%)
Investment Company (2.98%)
10,131,686 The One Group Prime Money Market Fund, (Fiduciary
Shares)............................................ 10,131,686
------------
Total Investment Company (Cost--$10,131,686) 10,131,686
------------
Total (Cost--$236,950,403) (a)--100.07% $339,926,141
============
</TABLE>
- --------
Percentages indicated are based on net assets of $339,686,957.
(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........... $107,412,847
Unrealized
depreciation........... $ (4,437,109)
------------
Net unrealized
appreciation........... $102,975,738
============
</TABLE>
(b) Non income producing securities.
See notes to financial statements.
28
<PAGE>
PACIFIC CAPITAL FUNDS
U.S. TREASURY SECURITIES FUNDS
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------- ----------
<C> <S> <C>
U.S. TREASURY NOTES (46.99%)
1,700,000 7.13%, 9/30/99......................................... $1,747,430
2,000,000 7.13%, 2/29/00......................................... 2,069,100
4,000,000 7.75%, 2/15/01......................................... 4,265,600
980,000 8.00%, 5/15/01......................................... 1,055,646
450,000 5.75%, 8/15/03......................................... 456,575
1,000,000 7.50%, 2/15/05......................................... 1,114,110
----------
Total U.S. Treasury Notes (Cost $10,291,183) 10,708,461
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY BONDS (49.65%)
2,150,000 7.63%, 2/15/07....................................... 2,304,435
6,700,000 7.25%, 5/15/16....................................... 7,752,101
1,200,000 6.25%, 8/15/23....................................... 1,256,627
-----------
Total U.S. Treasury Bonds (Cost--$9,869,188) 11,313,163
-----------
INVESTMENT COMPANY (1.16%)
264,734 The One Group U.S. Treasury Securities Money Market
Fund (Fiduciary Shares) 264,734
-----------
Total Investment Company (Cost--$264,734) 264,734
-----------
Total (Cost--$20,425,105) (a)--97.80% $22,286,358
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $22,788,849.
(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.. $1,861,253
Unrealized depreciation.. $ (0)
----------
Net unrealized
appreciation............. $1,861,253
==========
</TABLE>
See notes to financial statements.
29
<PAGE>
PACIFIC CAPITAL FUNDS
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. TREASURY NOTES (98.44%)
600,000 7.25%, 2/15/98........................................ $ 600,361
1,300,000 6.50%, 4/30/99........................................ 1,317,927
200,000 6.75%, 6/30/99........................................ 203,796
1,000,000 7.88%, 11/15/99....................................... 1,042,500
5,000,000 6.25%, 5/31/00........................................ 5,097,950
2,200,000 6.13%, 7/31/00........................................ 2,239,336
300,000 6.25%, 4/30/01........................................ 307,731
3,000,000 6.50%, 5/31/01........................................ 3,099,960
5,000,000 5.875%, 11/30/01...................................... 5,078,900
1,700,000 6.125% 12/31/01....................................... 1,742,245
850,000 6.00%, 7/31/02........................................ 869,780
1,000,000 6.25%, 8/31/02........................................ 1,033,210
4,000,000 6.25%, 2/15/03........................................ 4,144,480
600,000 5.75%, 8/15/03........................................ 608,766
5,700,000 6.50%, 5/15/05........................................ 6,034,248
200,000 5.625%, 2/15/06....................................... 201,082
-----------
Total U.S. Treasury Notes (Cost--$32,740,098) 33,622,272
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANY (0.01%)
2,505 The One Group U.S. Treasury Securities Money Market
Fund (Fiduciary Shares)............................. $ 2,505
-----------
Total Investment Company (Cost--$2,505) 2,505
-----------
Total (Cost--$32,742,603) (a)--98.45% $33,624,777
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $34,154,326.
(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.... $882,174
Unrealized depreciation.... $ (0)
--------
Net unrealized
appreciation............... $882,174
========
</TABLE>
See notes to financial statements.
30
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS (95.25%)
Automotive (1.08%)
28,800 Ford Motor Co......................................... $ 1,468,800
------------
Automotive Parts (1.31%)
35,825 Lear Corp. (b)........................................ 1,780,055
------------
Banks (5.00%)
44,550 BankAmerica Corp...................................... 3,165,834
29,675 BankBoston............................................ 2,655,913
8,875 U.S. Bancorp.......................................... 971,813
------------
6,793,560
------------
Beverages (1.67%)
63,000 PepsiCo, Inc.......................................... 2,271,938
------------
Business Equipment & Services (0.68%)
19,225 Paychex, Inc.......................................... 919,195
------------
Capital Goods (1.82%)
22,125 Sundstrand Corp....................................... 1,204,430
32,450 Thermo Electron Corp.................................. 1,265,550
------------
2,469,980
------------
Chemicals (2.42%)
29,775 Avery Dennison Corp................................... 1,336,153
50,225 Sigma-Aldrich......................................... 1,946,219
------------
3,282,372
------------
Computers & Peripherals (7.37%)
46,350 Cisco Systems (b)..................................... 2,922,947
134,600 Compaq Computer Corp. (b)............................. 4,046,413
63,750 Sun Microsystems, Inc. (b)............................ 3,056,016
------------
10,025,376
------------
Containers--Metal, Glass, Paper, Plastic (0.84%)
26,325 Bemis, Inc............................................ 1,135,266
------------
Cosmetics/Personal Care (1.20%)
31,125 Kimberly Clark Corp................................... 1,624,336
------------
Electrical Equipment (3.97%)
42,750 General Electric Co................................... 3,313,125
47,775 SCI Systems, Inc. (b)................................. 2,078,213
------------
5,391,338
------------
Electronic & Electrical (0.93%)
20,875 Emerson Electric Co................................... 1,262,938
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Environmental Services (0.92%)
38,650 United States Filter Corp............................. $ 1,256,125
------------
Financial Services (7.53%)
30,850 First Union Corp...................................... 1,482,728
7,500 Household International, Inc.......................... 933,750
25,500 Marsh & McLennan Co., Inc............................. 1,883,813
46,212 MBNA Corporation...................................... 1,435,460
23,425 T. Rowe Price Associates, Inc......................... 1,516,769
46,462 Washington Mutual..................................... 2,985,184
------------
10,237,704
------------
Food Processing & Packaging (1.09%)
44,325 Hormel Foods Corp..................................... 1,473,806
------------
Funeral Services (1.25%)
43,475 Service Corp. International........................... 1,695,525
------------
Heavy Machinery--Industrial, Farm, Construction (1.27%)
43,400 Ingersoll-Rand Co..................................... 1,725,150
------------
Household Products (1.01%)
33,275 Newell Co............................................. 1,366,355
------------
Insurance (2.13%)
58,475 Travelers, Inc........................................ 2,894,513
------------
Leisure--Recreation, Gaming (1.67%)
40,600 Carnival Corp. Cruise Lines........................... 2,265,988
------------
Medical Supplies (1.46%)
30,925 Guidant Corp.......................................... 1,986,931
------------
Oil & Gas Exploration, Production, & Services (4.09%)
18,250 Amoco Corp............................................ 1,485,094
41,150 Exxon Corp............................................ 2,440,709
23,950 Mobil Corp............................................ 1,631,594
------------
5,557,397
------------
Oilfield Equipment & Services (2.51%)
30,375 Schlumberger Ltd...................................... 2,238,258
29,400 Transocean Offshore Inc............................... 1,168,650
------------
3,406,908
------------
Paint, Varnishes, Enamels (0.79%)
37,550 Sherwin Williams Co................................... 1,070,175
------------
</TABLE>
Continued
31
<PAGE>
PACIFIC CAPITAL FUNDS
GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Pharmaceuticals (8.05%)
13,725 American Home Products Corp........................... $ 1,309,880
27,750 Johnson & Johnson, Inc................................ 1,857,516
37,350 Merck & Co. Inc....................................... 4,379,288
25,100 Pfizer, Inc........................................... 2,056,631
34,950 Pharmacia & Upjohn.................................... 1,343,391
------------
10,946,706
------------
Publishing (1.73%)
33,675 McGraw Hill, Inc...................................... 2,350,936
------------
Raw Materials (0.93%)
15,700 Air Products & Chemical, Inc.......................... 1,256,981
------------
Restaurants (1.49%)
90,625 Wendy's International................................. 2,022,070
------------
Retail (5.18%)
52,171 Dollar General Corp................................... 1,897,720
24,350 Kohl's Corp. (b)...................................... 1,689,281
34,900 Wal-Mart Stores, Inc.................................. 1,391,638
62,000 Walgreen Co........................................... 2,053,750
------------
7,032,389
------------
Semiconductors (3.32%)
20,000 Adaptec Inc........................................... 446,250
36,400 Cadence Design Systems, Inc........................... 1,019,200
16,575 Intel Corp............................................ 1,342,575
39,450 Solectron Corp........................................ 1,706,213
------------
4,514,238
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Software & Computer Services (6.13%)
55,762 Computer Associates International, Inc............... $ 2,965,841
30,450 Compuware Corp....................................... 1,187,550
26,575 HBO & Co............................................. 1,390,205
18,650 Microsoft Corp. (b).................................. 2,782,347
------------
8,325,943
------------
Telecommunications--Services and Equipment (1.37%)
20,950 Lucent Technologies, Inc............................. 1,854,075
------------
Tobacco & Tobacco Products (4.05%)
132,400 Philip Morris Cos., Inc.............................. 5,494,600
------------
Toys & Bicycles--Manufacturing (1.65%)
55,425 Mattel, Inc.......................................... 2,244,713
------------
Utilities--Electric (1.68%)
93,775 Southern Co.......................................... 2,279,905
------------
Utilities--Telecommunications (5.66%)
31,225 Century Telephone Enterprises, Inc................... 1,647,111
65,650 GTE Corp............................................. 3,582,028
31,575 SBC Communications................................... 2,454,956
------------
7,684,095
------------
Total Common Stocks (Cost--$97,511,199) 129,368,382
------------
INVESTMENT COMPANY (5.15%)
Investment Company (5.15%)
20,200 S & P 500 Depositary Receipt......................... 1,987,175
5,010,476 The One Group Prime Money Market Fund, (Fiduciary
Shares)............................................. 5,010,476
------------
Total Investment Company (Cost--$7,005,139) 6,997,651
------------
Total (Cost--$104,516,338) (a)--100.40% $136,366,033
============
</TABLE>
- --------
Percentages indicated are based on net assets of $135,822,198.
(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. $32,982,791
Unrealized depreciation. $(1,133,096)
-----------
Net unrealized
appreciation............ $31,849,695
===========
</TABLE>
(b) Non income producing securities.
See notes to financial statements.
32
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
FOREIGN (2.17%)
Sovereign Government Agencies (2.17%)
1,000,000 Japan Finance Corp., 9.125%, 10/11/00............... $ 1,088,750
2,000,000 Tokyo Metro Government, 9.25%, 11/08/00............. 2,187,500
------------
Total Foreign (Cost--$3,238,570) 3,276,250
------------
CORPORATE BONDS (45.57%)
Automotive (0.72%)
1,000,000 Ford Motor Co., 7.25%, 10/1/08...................... 1,080,000
------------
Banking (0.77%)
950,000 Interamerica Development Bank, 8.50%, 3/15/11....... 1,163,750
------------
Banking--Foreign (11.55%)
5,000,000 Abbey National PLC, 6.69%, 10/17/05................. 5,187,500
3,425,000 Bayerische Landesbk--NY, 6.38%, 8/31/00............. 3,489,219
5,525,000 Dresdner Bank--NY, 6.63%, 9/15/05................... 5,670,031
3,000,000 Swiss Bank Corp.--NY, 6.75%, 7/15/05................ 3,105,000
------------
17,451,750
------------
Electric Utility (3.73%)
1,500,000 Duke Power Co., 8.00%, 11/1/99...................... 1,554,375
4,000,000 National Rural Utility, 6.45%, 4/1/01............... 4,080,000
------------
5,634,375
------------
Financial Services (15.08%)
500,000 Associates First Capital Corp., 7.75%, 2/15/05...... 544,375
500,000 Cit Group Holdings, 6.375%, 10/1/02................. 506,875
500,000 General Electric Capital Corp., 8.25%, 11/1/04...... 562,500
5,000,000 General Electric Capital Corp., 7.88%, 12/1/06...... 5,643,750
5,000,000 JPM Capital Corp., 7.54%, 1/15/27, Callable 1/15/07
@ 104.............................................. 5,218,750
5,000,000 Merrill Lynch & Co. Inc., 7.00%, 4/27/08............ 5,312,500
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS, CONTINUED
400,000 Pitney Bowes, 6.80%, 10/1/01......................... $ 414,000
4,500,000 Salomon Inc., 6.70%, 7/5/00.......................... 4,590,000
------------
22,792,750
------------
Health Care (3.23%)
4,300,000 Johnson & Johnson, 8.72%, 11/1/24.................... 4,875,125
------------
Insurance (0.80%)
125,000 Mbia Inc., 8.20%, 10/1/22............................ 137,969
1,000,000 St. Paul Cos., Inc., 7.29%, 8/28/07.................. 1,071,250
------------
1,209,219
------------
Oil & Gas--Exploration & Production Services (2.10%)
1,450,000 Amoco Canada Petroleum Co., 7.95%, 10/1/22........... 1,629,437
1,000,000 Ei Dupont De Nemours, 6.50%, 9/1/02.................. 1,028,750
475,000 Societe Nationale Elf Aquitaine, 8.00%, 10/15/01..... 511,813
------------
3,170,000
------------
Restaurants (2.66%)
1,000,000 McDonald's Corp., 6.50%, 8/1/07...................... 1,038,750
3,000,000 McDonald's Corp., 5.95%, 1/15/08..................... 2,985,000
------------
4,023,750
------------
Retail (1.43%)
1,900,000 Wal-Mart Stores, Inc., 8.00%, 9/15/06................ 2,154,125
------------
Telecommunications (3.50%)
5,000,000 Bellsouth Telecommunications, Inc., 7.00%, 2/1/05.... 5,293,750
------------
Total Corporate Bonds (Cost--$65,390,597) 68,848,594
------------
U.S. GOVERNMENT AGENCIES (12.12%)
Federal Home Loan Bank (4.81%)
2,800,000 6.30%, 4/29/99....................................... 2,819,012
935,000 6.70%, 7/22/02....................................... 936,992
3,500,000 6.81%, 9/4/02, Callable 9/4/98 @ 100................. 3,514,455
------------
7,270,459
------------
Federal National Mortgage Association (7.13%)
2,500,000 6.27%, 9/20/00....................................... 2,530,600
</TABLE>
Continued
33
<PAGE>
PACIFIC CAPITAL FUNDS
DIVERSIFIED FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED
1,450,000 6.38%, 8/14/01....................................... $ 1,487,845
4,100,000 7.69%, 9/13/06....................................... 4,339,357
1,300,000 6.76%, 7/16/07....................................... 1,341,639
1,000,000 6.88%, 9/10/12....................................... 1,057,220
------------
10,756,661
------------
Tennessee Valley Authority (0.18%)
250,000 8.625%, 11/15/29..................................... 272,813
------------
Total U.S. Government Agencies
(Cost--$17,855,742) 18,299,933
------------
U.S. TREASURY NOTES (12.75%)
850,000 5.75%, 9/30/99....................................... 855,389
1,750,000 6.75%, 4/30/00....................................... 1,800,960
1,200,000 6.63%, 7/31/01....................................... 1,246,260
8,200,000 7.25%, 8/15/04....................................... 8,992,776
6,000,000 6.50%, 8/15/05,...................................... 6,354,540
------------
Total U.S. Treasury Notes (Cost--$18,470,898) 19,249,925
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
U.S. TREASURY BONDS (21.62%)
15,370,000 7.25%, 5/15/16...................................... $ 17,783,551
14,200,000 6.25%, 8/15/23...................................... 14,870,098
------------
Total U.S. Treasury Bonds
(Cost--$30,615,035) 32,653,649
------------
PRIVATE PLACEMENT (3.40%)
Health Care (3.40%)
5,000,000 Bayer Corporation, 6.50%, 10/1/02................... 5,131,250
------------
Total Private Placement (Cost--$5,010,100) 5,131,250
------------
INVESTMENT COMPANY (0.48%)
727,321 The One Group Prime Money Market Fund (Fiduciary
Shares)............................................ 727,321
------------
Total Investment Company (Cost--$727,321) 727,321
------------
Total (Cost--$141,308,263) (a)--98.11% $148,186,922
============
</TABLE>
- --------
Percentages indicated are based on net assets of $151,036,179.
(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.... $6,893,471
Unrealized depreciation.... $ (14,812)
----------
Net unrealized
appreciation............... $6,878,659
==========
</TABLE>
See notes to financial statements.
34
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (18.61%)
Hawaii (18.61%)
2,465,000 Hawaii Airports System Revenue, 7.50%, 7/1/20, Second
Series, FGIC, AMT................................... $ 2,702,256
465,000 Hawaii Airports System Revenue, 7.50%, 7/1/09, Second
Series, FGIC, AMT................................... 509,756
1,075,000 Hawaii Airports System Revenue, 7.00%, 7/1/10, FGIC,
AMT................................................. 1,191,906
745,000 Hawaii Airports System Revenue, 7.38%, 7/1/11, AMBAC,
AMT................................................. 814,844
15,375,000 Hawaii Airports System Revenue, 6.90%, 7/1/12, Second
Series, MBIA, AMT................................... 18,546,094
1,890,000 Hawaii Airports System Revenue, 7.00%, 7/1/18, Second
Series, MBIA, AMT................................... 2,081,363
935,000 Hawaii Airports System Revenue, 7.30%, 7/1/20, AMBAC,
AMT................................................. 1,020,319
1,500,000 Hawaii Airports System Revenue, 6.75%, 7/1/21, Second
Series, MBIA........................................ 1,635,000
4,660,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Citizens Utilities Co.
Project, 6.60%, 7/1/22, AMT......................... 4,986,200
11,000,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaii Electric Co.,
6.60%, 1/1/25, Series A, MBIA, AMT.................. 12,292,500
2,145,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaiian Electric Co. &
Subsidiaries, 6.55%, 12/1/22, MBIA, AMT............. 2,359,500
5,000,000 Hawaii Department of Budget & Finance, Special
Purpose Revenue, Hawaii Electric Co., 6.20%, 5/1/26,
Series A, MBIA, AMT................................. 5,431,250
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER, CONTINUED
Hawaii, continued
2,650,000 Hawaii Harbor Capital Improvement Revenue, 6.10%,
7/1/07, FGIC, AMT.................................. $ 2,931,563
2,330,000 Hawaii Harbor Capital Improvement Revenue, 7.25%,
7/1/10, MBIA, AMT.................................. 2,539,700
3,260,000 Hawaii Harbor Capital Improvement Revenue, 7.00%,
7/1/17, MBIA, AMT.................................. 3,512,650
1,350,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/19, FGIC, AMT.................................. 1,468,125
4,660,000 Hawaii Harbor Capital Improvement Revenue, 6.38%,
7/1/24, FGIC, AMT.................................. 5,085,225
4,660,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Revenue, 6.00%, 7/1/26, Series A,
AMT................................................ 4,828,925
1,500,000 Hawaii St Dept Budget & Fin, 5.65%, 10/01/27,
Callable 10/1/12 @ 101, AMT........................ 1,582,500
2,095,000 Honolulu City & County, 7.25%, 2/1/08, Series B,
Callable 2/1/00 @ 102, FGIC, AMT................... 2,252,125
------------
77,771,801
------------
Total Alternative Minimum Tax Paper
(Cost--$69,964,503) 77,771,801
------------
MUNICIPAL BONDS (80.36%)
Arizona (0.82%)
1,000,000 Arizona Unified School District, Maricopa County,
GO, 5.40%, 7/1/12.................................. 1,047,500
2,150,000 Phoenix Arizona Civic Improvement Corp., 5.25%,
7/1/16, Callable 7/1/07 @ 100, MBIA................ 2,187,625
200,000 Tucson Arizona Street And Highway Ctf, 5.00%,
7/1/15............................................. 201,500
------------
3,436,625
------------
</TABLE>
Continued
35
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
California (8.97%)
1,700,000 California State Department of Water Resources
Central Valley Project Revenue, 5.00%, 12/1/22..... $ 1,683,000
2,190,000 East Bay California Municipal Utility District Water
Systems, 5.00%, 6/1/26............................. 2,157,150
1,850,000 Los Angeles Cnty Calif Pub Wks Fing Auth Rev, 5.00%,
10/01/19, Callable 10/01/07 @101................... 1,838,438
2,000,000 Metropolitan Water District, 5.00%,7/1/15, MBIA..... 1,995,000
4,000,000 Metropolitan Water District, Southern California,
5.75%, 7/1/21, MBIA................................ 4,255,000
3,725,000 Northern California Transmission, Oregon
Transmission Project, 7.00%, 5/1/13, Series A,
MBIA............................................... 4,660,906
5,450,000 San Diego Public Facilities, 5.38%, 5/15/17,
Callable 5/15/07 @ 101............................. 5,627,125
1,950,000 San Francisco Calif City & County Arpt Comm Intl
Rev, 4.90%, 5/01/20................................ 1,918,313
2,745,000 San Francisco California C&C Airport Community,
International Airport Revenues, 5.63%, 5/1/21,
Callable 5/1/06 @ 101 FGIC......................... 2,882,250
1,735,000 San Francisco, Bay Area Rapid Transit, District
Sales Tax Revenue, 5.50%, 7/1/15, FGIC............. 1,817,413
1,000,000 Saratoga Calif Un Sch Dist, 5.38%, 9/01/17, Callable
9/01/07
@ 102.............................................. 1,040,000
7,000,000 State Department Water, 6.00%, 12/1/20, Series P,
Callable 6/1/06 @ 101.............................. 7,621,250
------------
37,495,845
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Colorado (0.25%)
1,000,000 Adams & Arapaho County, 5.35%, 12/1/15, FGIC........ $ 1,048,750
------------
Connecticut (0.52%)
2,000,000 Connecticut State, Special Tax Obligation Revenue,
6.25%, 10/1/14, FGIC............................... 2,192,500
------------
Florida (5.61%)
2,750,000 Dade County, Water & Sewer, 5.50%, 10/1/15, FGIC.... 2,897,813
3,000,000 Florida State, Bond Finance Department, General
Services Environmental Revenue, 5.75%, 7/1/13,
AMBAC.............................................. 3,232,500
5,000,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, 5.50%, 7/1/17, FGIC.. 5,243,750
2,000,000 Florida State, Turnpike Revenue, Department of
Transportation, 5.50%, 7/1/21, Series A, FGIC...... 2,082,500
4,875,000 Orange County, Public Tax Service, 6.00%, 10/1/24,
FGIC............................................... 5,325,938
3,725,000 Orlando, Utilities Community Water & Electric
Revenue Refunding, 6.75%, 10/1/17, Series D........ 4,646,938
------------
23,429,439
------------
Georgia (3.11%)
6,810,000 Georgia Municipal Electric Authority, 6.60%,
1/1/1/8, MBIA-IBC.................................. 8,274,150
1,865,000 Georgia State, Municipal Electric Authority Revenue,
6.13%, 1/1/14, Series B, FGIC...................... 2,009,538
2,330,000 Metropolitan Atlanta, Rapid Transportation
Authority, Sales Tax Revenue, 6.25%, 7/1/11, Series
P, AMBAC........................................... 2,711,538
------------
12,995,226
------------
</TABLE>
Continued
36
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii (37.92%)
2,000,000 Hawaii County, 5.50%, 5/1/08, Series A, FGIC.......... $ 2,187,500
1,000,000 Hawaii County Hawaii, 4.60%, 2/1/06................... 1,025,000
1,000,000 Hawaii County Hawaii, 4.70%, 2/1/07................... 1,026,250
1,000,000 Hawaii County Hawaii, 4.90%, 2/1/09................... 1,032,500
1,375,000 Hawaii County, GO, 4.50%, 2/1/04, Series A, FGIC...... 1,399,063
1,305,000 Hawaii County, GO, 7.30%, 6/1/10, Series A, Pre-
refunded 6/1/00
@ 101, FGIC, (b)..................................... 1,415,925
2,095,000 Hawaii County, GO, 5.10%, 2/1/13, Series A, FGIC...... 2,147,375
605,000 Hawaii County, GO, 5.60%, 5/1/13, Series A, FGIC...... 665,500
2,320,000 Hawaii County, GO, 5.20%, 2/1/15...................... 2,383,800
1,810,000 Hawaii County, GO, 5.00%, 2/1/10, Series A, FGIC...... 1,866,563
1,455,000 Hawaii Department Budget & Finance, Queens Health
System, 5.88%, 7/1/11................................ 1,573,219
1,745,000 Hawaii Department Budget & Finance, Queens Health
System, 6.05%, 7/01/16............................... 1,891,144
2,535,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Hawaii Electric Co., 6.88%, 4/1/12,
MBIA................................................. 2,585,497
4,105,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Hawaii Electric Light Co. Project,
7.20%, 12/1/14, MBIA................................. 4,438,531
1,865,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Kaiser Permanente, 6.25%, 3/1/21,
Series A............................................. 1,972,238
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ------------------------------------------------------ ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii, continued
1,400,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage Revenue, Maui Electric Co. Project, 6.88%,
4/1/12, MBIA......................................... $ 1,427,888
1,700,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage, Kapiolani Health Care System, 6.30%,
7/1/08, Callable 7/1/03 @ 102, MBIA.................. 1,876,375
3,680,000 Hawaii Department Budget & Finance, Special Purpose
Mortgage, Kapiolani Health Care System, 6.40%,
7/1/13, Callable 7/1/03 @ 102, MBIA.................. 4,080,200
1,400,000 Hawaii Department Transportation, Special Facility
Revenue, 5.75%, 3/1/13............................... 1,464,750
1,400,000 Hawaii Harbor Capital Improvement Revenue, 6.20%,
7/1/08, MBIA......................................... 1,522,500
5,980,000 Hawaii Housing Finance & Development Corp., 5.85%,
7/1/17............................................... 6,234,150
2,795,000 Hawaii Housing Finance & Development Corp., Federal
National Mortgage Assoc., 5.70%, 7/1/13.............. 2,917,281
6,080,000 Hawaii Housing Finance & Development Corp., Federal
National Mortgage Assoc., 7.00%, 7/1/31.............. 6,475,200
2,300,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, 6.90%, 7/1/16,
Series B............................................. 2,452,375
2,340,000 Hawaii Housing Finance & Development Corp., University
of Hawaii Housing, 5.70%, 10/1/25, AMBAC............. 2,457,000
2,000,000 Hawaii State, 6.00%, 10/1/12, Series BZ, FGIC......... 2,292,500
</TABLE>
Continued
37
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii, continued
2,800,000 Hawaii State, 5.00%, 10/1/13, Series CP, FGIC........ $ 2,845,500
3,000,000 Hawaii State, 6.50%, 12/1/13, Series CM, FGIC........ 3,607,500
3,200,000 Hawaii State, 5.00%, 10/1/15, Series CP, FGIC........ 3,236,000
3,500,000 Hawaii State, 5.50%, 3/1/16, Series CN, FGIC......... 3,701,250
3,000,000 Hawaii State, 5.00%, 10/1/16, Series CP, FGIC,
Callable 10/1/07
@ 101............................................... 3,026,250
2,050,000 Hawaii State, 5.00%, 10/1/17, Series CP, FGIC........ 2,060,250
7,500,000 Hawaii, GO, 6.05%, 1/1/08, FGIC...................... 8,343,750
1,345,000 Hawaii, GO, 6.38%, 2/1/09, Series BT, Pre-refunded
2/1/01
@ 101, (b).......................................... 1,447,556
935,000 Hawaii, GO, 5.50%, 6/1/09, FGIC...................... 984,088
1,505,000 Hawaii, GO, 5.00%, 7/1/09, FGIC...................... 1,548,269
4,490,000 Hawaii, GO, 6.13%, 2/1/10, Series BT, Pre-refunded
2/1/01
@ 101, (b).......................................... 4,804,300
935,000 Hawaii, GO, 5.50%, 6/1/10, Series CE, FGIC........... 979,413
5,555,000 Hawaii, GO, 5.25%, 9/1/10, Series CK, FGIC........... 5,770,256
4,565,000 Hawaii, GO, 5.25%, 6/1/13, FGIC...................... 4,684,831
1,000,000 Hawaii, GO, 5.25%, 3/1/16, Series CL, FGIC........... 1,027,500
3,725,000 Honolulu City & County, 7.35%, 7/1/06, Series A,
FGIC................................................ 4,525,875
3,000,000 Honolulu City & County, 6.00%, 1/1/11, Series A,
FGIC................................................ 3,416,250
4,820,000 Honolulu City & County, 5.75%, 4/1/11, Series A,
FGIC................................................ 5,380,325
2,330,000 Honolulu City & County, 5.75%, 4/1/12, FGIC.......... 2,600,863
4,195,000 Honolulu City & County, 5.75%, 4/1/13, Series A,
FGIC................................................ 4,682,669
3,000,000 Honolulu City & County, 5.63%, 9/1/13, Series A,
Callable 9/1/06 @ 102............................... 3,217,500
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ----------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii, continued
1,860,000 Honolulu City & County Refunding & Improvement,
5.50%, 10/1/11, Series B, FGIC...................... $ 2,036,700
935,000 Honolulu City & County Refunding & Improvement,
5.25%, 10/1/12, Series B, FGIC...................... 996,944
1,535,000 Honolulu City & County Water, 6.00%, 12/1/10, FGIC... 1,751,819
2,320,000 Honolulu City & County Water, 6.00%, 12/1/11, FGIC... 2,659,300
935,000 Honolulu City & County Water, 6.00%, 12/1/14, FGIC... 1,075,250
1,380,000 Honolulu City & County, GO, 5.00%, 11/1/12, Series A,
MBIA................................................ 1,405,875
2,000,000 Honolulu Hawaii City & Cnty, Ser B-Fgic, 5.00%,
11/1/15, Callable 11/01/07 @ 101.................... 2,022,500
1,010,000 Kauai County, 5.55%, 8/1/04.......................... 1,088,275
1,075,000 Kauai County, 5.65%, 8/1/05.......................... 1,173,094
1,130,000 Kauai County, 5.75%, 8/1/06.......................... 1,252,888
1,340,000 Kauai County, 5.90%, 8/1/09, Series C, AMBAC......... 1,515,875
1,005,000 Maui County, 5.10%, 9/1/11, Series A, Callable 9/1/07
@ 101............................................... 1,043,944
935,000 Maui County Refunding, 5.25%, 9/1/06................. 985,256
1,180,000 Maui County Refunding, 5.13%, 12/15/10............... 1,216,875
515,000 Maui County Water, 6.10%, 12/1/02, Series A, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 558,131
545,000 Maui County Water, 6.20%, 12/1/03, Series A, FGIC.... 592,688
580,000 Maui County Water, 6.30%, 12/1/04, Series A, Pre-
refunded 12/1/01@ 101, FGIC, (b).................... 632,925
620,000 Maui County Water, 6.40%, 12/1/05, Series A, Pre-
refunded 12/1/01@ 101, FGIC, (b).................... 678,900
565,000 Maui County Water, 6.50%, 12/1/06, Series A, Pre-
refunded 12/1/01@ 101, FGIC, (b).................... 620,794
</TABLE>
Continued
38
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii, continued
550,000 Maui County Water, 6.60%, 12/1/07, Series A, Pre-
refunded 12/1/01@ 101, FGIC, (b)................... $ 605,688
655,000 Maui County Water, 6.65%, 12/1/09, Series A, Pre-
refunded 12/1/01@ 101, FGIC, (b)................... 722,956
1,020,000 Maui County, GO, 5.90%, 6/1/14...................... 1,105,425
------------
158,442,621
------------
Kansas (1.86%)
3,725,000 Burlington Pollution Control Refunding, Kansas Gas &
Electric Co. Project, 7.00%, 6/1/31................ 4,120,781
3,260,000 Kansas City, Utilities System, Revenue Refunding &
Improvement, 6.38%, 9/1/23......................... 3,667,500
------------
7,788,281
------------
Maine (0.73%)
2,795,000 Maine State Turnpike Authority, Turnpike Revenue,
6.00%, 7/1/14...................................... 3,043,056
------------
Massachusetts (1.45%)
4,790,000 Commonwealth of Massachusetts, 5.50%, 7/1/15, Series
B.................................................. 5,005,550
1,000,000 Massachusetts State Water Pollution Abatement Trust,
5.70%, 2/1/13...................................... 1,068,750
------------
6,074,300
------------
Michigan (2.92%)
6,900,000 Michigan Environmental Protection Program, GO,
5.40%, 11/1/19..................................... 7,081,125
2,245,000 Michigan Strategic Obligations Revenue, 6.95%,
5/1/11............................................. 2,775,381
2,250,000 Saline Area Schools, GO, 5.50%, 5/1/15, FGIC........ 2,359,688
------------
12,216,194
------------
Minnesota (0.56%)
2,000,000 North St. Paul, Maplewood, Independent School
District, No. 622, 6.88%, 2/1/15, Series A,
Prefunded 2/1/05 @ 100............................. 2,335,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
New Jersey (0.80%)
3,000,000 New Jersey Wastewater Treatment Trust, 6.38%,
4/1/14, Series B................................... $ 3,341,250
------------
New Mexico (1.19%)
3,000,000 Rio Rancho Water & Waste Water Systems Revenue,
5.90%, 5/15/15, Series A, FSA...................... 3,236,250
1,625,000 Sante Fe, New Mexico, Gross Receipts Tax Revenue,
5.63%, 6/1/16...................................... 1,716,406
------------
4,952,656
------------
New York (1.20%)
2,950,000 New York St Environmental Facs Pollution Control,
5.13%, 6/15/16..................................... 2,968,438
2,000,000 Triborough Bridge & Tunnel Authority, New York
Revenues, General Purpose, 5.30%, 1/1/17........... 2,047,500
------------
5,015,938
------------
North Carolina (1.31%)
4,480,000 Easton Municipal Power Agency, 6.50%, 1/1/18, (b)... 5,454,400
------------
Ohio (1.25%)
2,320,000 Cleveland Package Facilities Revenue, 5.50%,
9/15/16............................................ 2,427,300
1,630,000 Cleveland Waterworks Revenue, 6.25%, 1/1/16, MBIA... 1,762,438
1,000,000 Ohio Water Development Authority, Pollution Control,
5.50%, 12/1/15, MBIA............................... 1,047,500
------------
5,237,238
------------
Oregon (0.61%)
2,330,000 Umatilla County, School District Number 016R,
Pendleton, 6.00%, 7/1/14, AMBAC.................... $ 2,530,963
------------
Pennsylvania (1.47%)
2,505,000 Southeastern Pennsylvania Transportation Authority,
6.00%, 3/1/14...................................... 2,717,925
</TABLE>
Continued
39
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Pennsylvania, continued
3,150,000 Southeastern Pennsylvania Transportation Authority,
6.00%, 3/1/15, Series A, Callable 3/1/05 @ 101,
FGIC............................................... $ 3,417,750
------------
6,135,675
------------
South Carolina (0.82%)
2,890,000 Piedmont Municipal Power Agency, South Carolina
Electric Refunding, 6.50%, 1/1/14,
Series A, FGIC..................................... 3,417,425
------------
Tennessee (1.98%)
6,300,000 Shelby County Refunding, 5.63%, 4/1/15, Series A.... 6,646,500
1,600,000 Shelby County Refunding, 5.25%, 08/01/17, Series B,
Callable 08/01/07 @ 101............................ 1,638,000
------------
8,284,500
------------
Texas (1.60%)
2,205,000 Harris County, Certificates of Obligation, 6.00%,
10/1/15............................................ 2,425,500
2,000,000 Texas State Refunding, Public Finance Authority,
5.95%, 10/1/15, Series A........................... 2,202,500
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Texas, continued
1,860,000 Texas State, Public Financial Authority, 6.00%,
10/1/12,
Series A........................................... $ 2,046,000
------------
6,674,000
------------
Virginia (3.41%)
5,000,000 Commonwealth of Virginia Public School Authority,
Special Obligation, Chesapeake School, 5.63%,
6/1/15............................................. 5,343,750
2,995,000 Fairfax County Public Improvement, 5.50%, 6/1/14,
Series A........................................... 3,170,956
3,650,000 Norfolk Water Revenue, 5.75%, 11/1/13, MBIA......... 3,919,188
1,750,000 Richmond Refunding, 5.20%, 1/15/14.................. 1,798,114
------------
14,232,008
------------
Total Municipal Bonds (Cost--$306,446,457) 335,773,890
------------
INVESTMENT COMPANY (0.19%)
809,821 Nuveen Tax Free Money Market Fund................... 809,821
------------
Total Investment Company (Cost--$809,821) 809,821
------------
Total--(Cost $377,220,781) (a)--99.16% $414,355,512
============
</TABLE>
- --------
Percentages indicated are based on net assets of $417,872,551.
*Variable rate security. Rate presented represents rate in effect at January
31, 1998. Maturity 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. $37,162,721
Unrealized depreciation. $ (27,990)
-----------
Net unrealized
appreciation............ $37,134,731
===========
</TABLE>
(b) Collaterized by various U.S. Government Securities.
AMBAC--AMBAC Indemnity Corporation
AMT--Alternative Minimum Tax Paper
FGIC--Insured by the Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements.
40
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (12.31%)
Hawaii (9.53%)
2,000,000 Hawaii State Airports System, Revenue, 5.45%, 7/1/00,
Second Series, MBIA.................................. $ 2,070,000
2,070,000 Hawaii State Airports Systems Revenue, 5.60%, 7/1/01.. 2,173,500
1,000,000 Hawaii State Housing Fin & Dev Single Family, 4.55%,
7/1/02, Series A..................................... 1,012,500
-----------
5,256,000
-----------
Illinois (0.92%)
500,000 Chicago Illinois O'Hare International Airport, 4.90%,
1/1/01............................................... 509,375
-----------
Texas (1.86%)
1,000,000 El Paso Texas Apartment Revenue, 5.00%, 8/15/01....... 1,027,500
-----------
Total Alternative Minimum Tax Paper (Cost--$6,676,762) 6,792,875
-----------
MUNICIPAL BONDS (85.77%)
Alaska (2.30%)
1,250,000 Alaska State Housing Finance Corp., 4.60%, 6/1/00..... 1,271,875
-----------
Connecticut (1.85%)
1,000,000 Connecticut St GO, 4.75%, 3/15/2008, Series E,
Callable 3/15/04 @101.50, 3/15/06.................... 1,022,500
-----------
Hawaii (46.34%)
3,000,000 Hawaii State, 5.60%, 7/1/04........................... 3,243,750
2,000,000 Hawaii State, 5.00%, 10/01/04, Series CP, FGIC, Non-
Callable............................................. 2,095,000
1,300,000 Hawaii State, 5.00%, 10/01/05, Series CP, FGIC, Non-
Callable............................................. 1,365,000
2,500,000 Hawaii State, 5.50%, 10/1/07, Series CP, FGIC, Non-
Callable............................................. 2,737,500
220,000 Hawaii State Community Development Authority, District
#1, Special Tax Assessment, 4.45%, 7/1/98............ 220,757
300,000 Hawaii State Community Development Authority, District
#2, Special Tax Assessment, 4.45%, 7/1/98............ 301,032
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Hawaii, continued
1,200,000 Hawaii State Housing Fin & Dev Single Family, 4.80%,
7/1/07, Series B..................................... $ 1,224,000
1,000,000 Hawaii State Hwy Rev, 6.00%, 07/01/04, Non-Callable... 1,101,250
3,750,000 Hawaii State, GO, 5.50%, 1/1/00....................... 3,862,499
2,000,000 Hawaii State, GO, 4.50%, 3/1/01, Series Cl............ 2,030,000
1,450,000 Honolulu Hawaii City & Cnty, Ser B-Fgic
5.00%,11/01/05, Series B, FGIC, Non-Callable......... 1,524,313
1,000,000 Honolulu Hawaii City & Cnty GO, 5.1%, 11/1/08,
Noncallable.......................................... 1,063,750
1,200,000 Honolulu, City & County, 4.70%, 9/1/01, Series A...... 1,228,500
1,400,000 Honolulu, City & County, 5.25%, 9/1/02, Series A,
FGIC................................................. 1,471,750
700,000 Honolulu, City & County GO, 5.10%, 1/1/00, Series A,
FGIC................................................. 715,750
370,000 Honolulu, City & County Improvement District, 6.05%,
10/15/98............................................. 376,009
370,000 Honolulu, City & County Improvement District, 6.20%,
10/15/99............................................. 382,488
620,000 Maui County, GO, 5.35%, 6/1/00........................ 640,150
-----------
25,583,498
-----------
Illinois (2.77%)
1,500,000 Metropolitan Pier & Exposition, 4.60%, 12/15/00....... 1,528,125
-----------
Maine (1.88%)
1,000,000 Maine Muni Bond Bank, 5.0%, 11/01/05, Non-Callable.... 1,040,000
-----------
Maryland (1.90%)
1,000,000 Maryland State and Local Facilities, GO, 5.00%,
3/1/03............................................... 1,047,500
-----------
Massachusetts (1.87%)
1,000,000 Massachusetts State Construction, 5.13%, 11/1/00,
Series D............................................. 1,033,750
-----------
</TABLE>
Continued
41
<PAGE>
PACIFIC CAPITAL FUNDS
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Michigan (3.75%)
1,000,000 Farmington Mi Public School District, 5.00%, 5/1/06,
Non-Callable......................................... $ 1,050,000
1,000,000 Ypsilanti Michigan School District Ref., GO, 4.60%,
5/1/01, FGIC......................................... 1,020,000
-----------
2,070,000
-----------
Minnesota (5.43%)
1,900,000 Minnesota State Revenue, 5.00%, 6/30/01, Series A..... 1,966,500
1,000,000 Minnesota State, GO, 5.00%, 8/1/00.................... 1,030,000
-----------
2,996,500
-----------
Missouri (1.94%)
1,000,000 Kansas City Water Revenue, 5.50%, 12/1/02............. 1,071,250
-----------
New York (1.70%)
900,000 New York St Environmental Facs Pollution Control,
5.00%, 6/15/03....................................... 937,125
-----------
Rhode Island (3.25%)
1,750,000 Rhode Island Housing & Mortgage Financial Corporation,
5.00%, 7/1/00........................................ 1,791,563
-----------
Tennessee (3.29%)
1,790,000 Met Govt Nashville & Davidson Co Health Facs, 4.63%,
11/1/08, Callable On 5/1/08 @ 101.................... 1,816,850
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED
Texas (1.85%)
1,000,000 Tarrant County Texas Health Facilities Development,
4.75%, 9/1/00, AMBAC................................. $ 1,018,750
-----------
Utah (1.94%)
1,000,000 Jordan Utah School District, 5.25%, 6/15/05, Series A. 1,072,500
-----------
Virginia (1.84%)
1,000,000 Virginia State Public School Authority, 4.50%, 1/1/01. 1,016,250
-----------
Wisconsin (1.87%)
1,000,000 Milwaukee, GO, 5.00%, 2/1/01.......................... 1,030,000
-----------
Total Municipal Bonds (Cost--$46,466,126) 47,348,036
-----------
MUNICIPAL VARIABLE RATE DEMAND OBLIGATIONS (4.38%)
Indiana (0.76%)
420,000 Purdue University, 3.45%, 7/1/17,
Series H............................................. 420,000
-----------
Washington (3.62%)
2,000,000 Washington State Health Care Facilty Hutchinson,
3.70%, 1/1/18........................................ 2,000,000
-----------
Total Municipal Variable Rate Demand Obligations (Cost--
$2,420,000) 2,420,000
-----------
INVESTMENT COMPANY (0.44%)
241,766 Nuveen Tax Free Money Market Fund..................... 241,766
-----------
Total Investment Company (Cost--$241,766) 241,766
-----------
Total (Cost--$55,804,654) (a)--102.90% $56,802,677
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $55,199,213.
* Variable rate security. Rate presented represents rate in effect at January
31, 1998. Maturity 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.. $1,011,059
Unrealized depreciation.. $ (13,036)
----------
Net unrealized
appreciation............. $ 998,023
==========
</TABLE>
(b) Collaterized by various U.S. Government Securities.
AMBAC--AMBAC Indemnity Corporation
AMT--Alternative Minimum Tax Paper
FGIC--Insured by the Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements.
42
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS (67.09%)
China (2.13%)
Electricity--Generation (1.35%)
30,000 Shandong Huaneng Power-ADR............................. $ 228,750
-----------
Manufacturing--Appliances (0.78%)
159,000 Guangdong Kelon Electrical Hldgs
Class H............................................... 132,525
-----------
361,275
-----------
Hong Kong (31.16%)
Automotive (0.47%)
278,000 Qingling Motors Company................................ 79,033
-----------
Construction (6.59%)
189,000 Cheung Kong Infrastructure............................. 483,580
261,600 New World Infrastructure Ltd. (b)...................... 512,143
1,028,000 Wai Kee Holdings Ltd................................... 123,543
-----------
1,119,266
-----------
Consumer Products--Cosmetics and Toiletries (0.34%)
402,000 Sa Sa International Holdings........................... 58,182
-----------
Containers & Packaging (0.94%)
212,000 Cosco Pacific Ltd...................................... 158,893
-----------
Diversified--Conglomerates, Holding Companies (2.99%)
296,000 Guangdong Investment Ltd............................... 108,057
68,000 Hutchison Whampoa Ltd.................................. 399,817
-----------
507,874
-----------
Electrical & Electronic (0.72%)
590,000 Elec & Eltek International
Holdings Ltd.......................................... 121,987
-----------
Food Products (1.31%)
120,000 Guangnan Holdings Ltd.................................. 61,252
170,000 Ng Fung Hong Ltd....................................... 160,366
-----------
221,618
-----------
Forest Products (0.27%)
1,126,000 Ta Fu International Ltd................................ 45,107
-----------
Real Estate (5.87%)
400,000 Amoy Properties Ltd.................................... 294,630
33,000 Cheung Kong Holdings Ltd............................... 168,443
208,000 China Resources Beijing Land........................... 71,228
449,000 Fairyoung Holdings Ltd. (b)............................ 111,981
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Hong Kong, continued
Real Estate, continued
118,000 Hongkong Land Holdings Ltd............................. $ 189,980
66,000 New World Development Co. Ltd.......................... 159,061
-----------
995,323
-----------
Telecommunications (2.52%)
161,500 Asia Satellite Telecom Holdings, Ltd................... 225,392
102,000 Smartone Telecommunications............................ 201,666
-----------
427,058
-----------
Textile/Apparel (1.59%)
390,000 Lung Kee Metal Holdings................................ 269,100
-----------
Transportation--Air (0.91%)
936,000 China Southern Airlines Company
Class H............................................... 154,820
-----------
Utilities--Electric (6.64%)
109,000 Clp Holdings........................................... 598,627
480,000 Guangdong Electric Power............................... 223,918
85,500 Hong Kong Electric Holdings Ltd........................ 305,494
-----------
1,128,039
-----------
5,286,300
-----------
India (1.42%)
Telecommunications (1.42%)
16,700 Mahanager Telephone Nigam Ltd-GDR...................... 240,063
-----------
Indonesia (0.68%)
Hotels & Lodging (0.08%)
490,000 PT Sona Topas Tourism.................................. 14,000
-----------
Transportation--Air (0.60%)
166,500 Pt Daya Guna Samudera.................................. 101,089
-----------
115,089
-----------
Malaysia (3.67%)
Construction (0.19%)
100,000 Metacorp Berhad........................................ 33,006
-----------
Electricity--Generation (0.20%)
47,000 Ytl Power International Bhd............................ 33,723
-----------
</TABLE>
Continued
43
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Malaysia, continued
Leisure--Recreation, Gaming (1.90%)
Engineering (0.77%)
200,000 Gamuda Berhad.......................................... $ 105,236
92,000 IJM Corp Berhad........................................ 25,524
-----------
130,760
-----------
156,000 Magnum Corporation Bhd................................. 86,188
130,000 Resorts World Bhd...................................... 234,747
-----------
320,935
-----------
Publishing (0.55%)
91,000 Star Publications...................................... 92,717
-----------
Telecommunications (0.06%)
72,000 Time Engineering Berhad................................ 10,504
-----------
621,645
-----------
Pakistan (1.88%)
Engineering (1.88%)
10,300 Hub Power Co Ltd GDR................................... 319,300
-----------
Philippines (2.55%)
Computers & Peripherals (0.93%)
506,000 Music Corporation...................................... 157,198
-----------
Real Estate (1.62%)
1,725,000 Sm Prime Holdings Inc.................................. 275,029
-----------
432,227
-----------
Singapore (9.28%)
Defense Engineering (1.80%)
373,916 Sing Tech Engineering.................................. 304,882
-----------
Electrical & Electronic (0.86%)
200,000 Wong's Circuits Holdings Ltd........................... 146,000
-----------
Electrical--Machinery (0.53%)
100,000 Advanced Systems Automation............................ 89,691
-----------
Electrical Equipment (1.67%)
55,000 Elec & Eltek International Co. Ltd..................... 283,250
-----------
Financial Services (0.90%)
35,000 Cerebos Pacific Ltd.................................... 69,715
20,000 Ocbc Foreign........................................... 83,284
-----------
152,999
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Singapore, continued
Foreign Banks (0.49%)
30,000 Overseas Union Bank Foreign............................ $ 82,469
-----------
Oil & Gas Exploration, Production, & Services (0.79%)
50,000 Keppel Far East Levingston Ltd......................... 133,954
-----------
Real Estate (0.63%)
142,000 Keppel Land Limited.................................... 107,513
-----------
Telecommunications (1.61%)
50,000 Datacraft Asia Ltd..................................... 108,000
83,000 Singapore Telecommunications Limited................... 164,356
-----------
272,356
-----------
1,573,114
-----------
Taiwan (7.75%)
Computers & Peripherals (4.51%)
24,000 Asustek Computer Inc. (b).............................. 453,946
140,000 D-Link Corp............................................ 308,388
-----------
762,334
-----------
Diversified--Conglomerates, Holding Companies (0.83%)
87,500 Standard Foods Taiwan Ltd.............................. 141,344
-----------
Electrical & Electronic (1.35%)
400 Compal Electronics (b)................................. 1,239
26,000 Hon Hai Precision Industry............................. 143,562
35,000 Siliconware Precision Industries Co. (b)............... 84,807
-----------
229,608
-----------
Foreign Banks (1.06%)
148,350 Chinatrust Commercial Bank............................. 180,383
-----------
1,313,669
-----------
Thailand (3.57%)
Entertainment--Television (3.57%)
122,000 Bec World Public Co Ltd................................ 605,952
-----------
United States (3.00%)
Computers & Peripherals (3.00%)
25,000 Synnex Technology International
Corp.--GDR (b)........................................ 509,375
-----------
Total Common Stocks (Cost--$14,605,182).......................... 11,378,009
-----------
</TABLE>
Continued
44
<PAGE>
PACIFIC CAPITAL FUNDS
NEW ASIA GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
WARRANTS (0.05%)
Hong Kong (0.05%)
Construction (0.05%)
225,000 Wai Kee Holdings Ltd., 6/30/00......................... $ 8,141
-----------
Total Warrants (Cost--$0)........................................ 8,141
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANY (29.64%)
United States (29.64%)
5,025,952 Union Bank of California Money Market Fund............. $ 5,025,952
-----------
Total Investment Company (Cost--$5,025,952)...................... 5,025,952
-----------
Total (Cost--$19,631,134) (a)--96.78%............................ $16,412,102
===========
</TABLE>
- --------
Percentages indicated are based on net assets of $16,958,506.
Forward Currency Contracts:
<TABLE>
<CAPTION>
DELIVERY CONTRACT CONTRACT VALUE
DATE PRICE (U.S. DOLLARS) APPRECIATION
-------- -------- -------------- ------------
<S> <C> <C> <C> <C>
Currency Purchased:
Malaysian Ringitt............. 2/3/98 $4.35 $99,086 $4,005
2/4/98 $4.60 $19,162 $1,897
Singapore Dollars............. 2/4/98 $1.75 $181,911 $3,194
-------- ------
Total........................ $300,159 $9,096
</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... $ 573,634
Unrealized depreciation... (3,792,666)
-----------
Net unrealized
depreciation.............. $(3,219,032)
===========
</TABLE>
(b) Non income producing securities.
ADR-American Depository Receipt
GDR-Global Depository Receipt
See notes to financial statements
45
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1998
(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. On March 2, 1998 the Growth Stock Fund, the Growth and Income
Fund, the Diversified Fixed Income Fund, the Tax Free Securities Fund and
the New Asia Growth Fund commenced offering B Class Shares. B Class Shares
are subject to a deferred sales charge, imposed at the time of redemption,
if shares are redeemed within six years of purchase. Each class of shares
for each Fund has identical rights and privileges except with respect to
distribution (12b-1) fees paid by Retail and B 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 Funds' 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
Continued
46
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
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.
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 exdividend 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
Continued
47
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
foreign currencies. A forward foreign currency contract is an obligation by
the Fund to purchase or to sell a specific currency at a future date at a
price set at the time of the contract. The Fund may use forward foreign
currency exchange contracts in order to protect against uncertainty in
fluctuations of future foreign exchange rates. The use of such forward
contracts is limited to hedging against movements in the value of foreign
currencies relative to the U.S. dollar in connection with specific portfolio
transactions or with respect to portfolio positions. The forward foreign
currency exchange contracts are adjusted by the daily exchange rate of the
underlying currency and any appreciation or depreciation is recorded for
financial statement purposes as unrealized until the contract settlement
date, at which time the Fund records realized gains or losses equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The Fund could be exposed to risk if a
counterparty is unable to meet the terms of a forward foreign exchange
currency contract or if the value of the foreign currency changes
unfavorably.
WHEN-ISSUED AND FORWARD COMMITMENTS
The Funds may purchase securities on a "when-issued" basis and may also
purchase or sell securities on a forward commitment. The Funds record when-
issued securities on the trade date and maintain security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased. 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, 1998
(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.
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. 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, 1998 are as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Growth Stock Fund.................................... $110,498,633 $117,618,622
U.S. Treasury Securities Fund........................ 2,223,242 2,437,531
Short Intermediate U.S. Treasury Securities Fund..... 1,733,517 2,749,846
Growth and Income Fund............................... 47,590,964 46,044,260
Diversified Fixed Income Fund........................ 60,989,684 49,036,940
Tax-Free Securities Fund............................. 22,341,718 9,401,089
Tax-Free Short Intermediate Securities Fund.......... 16,046,794 12,306,352
New Asia Growth Fund................................. 13,353,721 11,022,304
</TABLE>
4. RELATED PARTY TRANSACTIONS
Investment advisory services are provided to the Trust by Hawaiian Trust
(the "Adviser"). Under the terms of the investment advisory agreement with
the Trust, the Adviser is entitled to receive fees based on a percentage of
the average net assets of the Fund.
Continued
49
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS Fund
Services") 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' 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 Advisor, 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 year ended July 31, 1997, BISYS, as the Trust's
principal underwriter, received approximately $68,561 from commissions on
sales of Retail Class shares which was reallowed to other dealers.
BISYS Fund Services serves the Trust as Fund Accountant. Under the terms of
the Fund Accounting agreement, BISYS Fund Services 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.
As of February 2, 1998, BISYS Fund Services serves as the Transfer Agent for
the Funds. Under the terms of the Transfer Agent agreement BISYS Fund
Services is entitled to receive fees and reimbursement for certain out-of-
pocket expenses incurred in providing Transfer Agent 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, 1998 is as follows:
<TABLE>
<CAPTION>
INVESTMENT ADVISORY FEES
----------------------------
ANNUAL FEE AS A ADMINISTRATION 12B-1 FEES
PERCENTAGE FEES FEES VOLUNTARILY
OF AVERAGE VOLUNTARILY VOLUNTARILY REDUCED-- ACCOUNTING
DAILY NET ASSETS REDUCED REDUCED RETAIL CLASS FEES*
---------------- ----------- -------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Growth Stock Fund...... 0.80% $ -- $48,194 $25,209 $37,469
U.S. Treasury
Securities Fund........ 0.60% 4,760 4,630 2,660 4,290
Short Intermediate U.S.
Treasury
Securities Fund....... 0.50% 28,505 7,126 1,528 4,972
Growth and Income Fund. 0.80% -- 25,819 10,165 20,692
Diversified Fixed
Income Fund............ 0.60% 19,310 28,789 3,344 23,725
Tax-Free Securities
Fund................... 0.60% 53,100 66,346 6,241 64,568
Tax-Free Short
Intermediate
Securities Fund....... 0.50% 4,546 10,444 1,579 8,964
New Asia Growth Fund... 0.90% -- 4,682 6,798 6,415
</TABLE>
Continued
50
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(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, 1998 JANUARY 31, 1998
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 1,335,014 79,617 $ 65,436 6,962
Dividends reinvested.... 1,239,384 82,407 22,690 2,411
Shares redeemed......... (629,098) (38,198) (151,982) (16,181)
------------- ----------- ------------- ----------
Net increase/(decrease). $ 1,945,300 123,826 $ (63,856) (6,808)
============= =========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 26,185,657 1,597,248 $ 346,929 36,286
Shares issued in
connection with common
trust fund acquisition.. 120,286,123 8,205,056
Dividends reinvested.... 28,765,230 1,908,676 605,813 64,347
Shares redeemed......... (26,610,573) (1,594,106) (3,549,493) (381,679)
------------- ----------- ------------- ----------
Net increase/(decrease). $ 148,626,437 10,116,874 $ (2,596,751) (281,046)
============= =========== ============= ==========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1997 JULY 31, 1997
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 3,204,633 224,887 $ 262,172 28,434
Dividends reinvested.... 16,102 1,191 48,799 5,310
Shares redeemed......... (1,497,916) (109,496) (228,130) (24,896)
------------- ----------- ------------- ----------
Net increase/(decrease). $ 1,722,819 116,582 $ 82,841 8,848
============= =========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... 36,521,743 2,562,096 1,380,971 149,658
Dividends reinvested.... 76,010 5,584 1,366,474 148,459
Shares redeemed......... (80,981,052) (5,700,654) (2,779,194) (300,730)
------------- ----------- ------------- ----------
Net increase/(decrease). $(44,383,299) (3,132,974) $(31,749) (2,613)
============= =========== ============= ==========
</TABLE>
Continued
51
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
5. CAPITAL SHARE TRANSACTIONS (CONTINUED):
<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, 1998 JANUARY 31, 1998
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 167,029 17,532 $ 1,069,505 62,773
Dividends reinvested.... 14,048 1,469 66,993 22,989
Shares redeemed......... (174,069) (18,261) (411,742) (24,455)
------------- ----------- ------------- -----------
Net increase/(decrease). $ 7,008 740 $ 1,024,756 61,307
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 2,730,130 285,291 $ 19,002,344 1,132,709
Shares issued in
connection with common
trust fund acquisition.. 9,573,342 995,150
Dividends reinvested.... 24,634 2,579 10,830,359 668,932
Shares redeemed......... (5,992,926) (626,469) (17,290,985) (1,019,477)
------------- ----------- ------------- -----------
Net increase/(decrease). $ 6,335,180 656,551 $ 12,541,718 782,164
============= =========== ============= ===========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1997 JULY 31, 1997
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 140,921 14,898 $ 2,191,642 153,432
Dividends reinvested.... 36,426 3,858 81,348 6,075
Shares redeemed......... (728,488) (76,854) (527,062) (37,700)
------------- ----------- ------------- -----------
Net increase/(decrease). $ (551,141) (58,098) $ 1,745,928 121,807
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 11,979,335 1,272,770 $ 43,781,341 3,080,616
Dividends reinvested.... 55,995 5,915 2,325,676 172,366
Shares redeemed......... (9,297,503) (983,459) (30,463,375) (2,125,196)
------------- ----------- ------------- -----------
Net increase/(decrease). $ 2,737,827 295,226 $ 15,643,642 1,127,786
============= =========== ============= ===========
</TABLE>
Continued
52
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
5. CAPITAL SHARE TRANSACTIONS (CONTINUED):
<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, 1998 JANUARY 31, 1998
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 538,847 50,700 $ 234,552 21,900
Dividends reinvested.... 34,100 3,171 19,236 1,785
Shares redeemed......... (269,157) (24,978) (462,514) (43,149)
------------- ----------- ------------- -----------
Net increase/(decrease). $ 303,790 28,893 $ (208,726) (19,464)
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 24,501,476 2,274,369 $ 20,687,267 1,908,949
Shares issued in
connection with common
trust fund acquisition.. 8,914,400 817,085 104,600,137 9,658,369
Dividends reinvested.... 23,970 2,219 1,620,261 150,296
Shares redeemed......... (20,019,523) (1,837,065) (12,868,741) (1,193,084)
------------- ----------- ------------- -----------
Net increase/(decrease). $ 13,420,923 1,256,608 $ 114,038,924 10,524,530
============= =========== ============= ===========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1997 JULY 31, 1997
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 748,361 71,630 $ 2,100,119 201,633
Dividends reinvested.... 70,514 6,720 20,004 1,896
Shares redeemed......... (829,853) (79,822) (241,385) (23,123)
------------- ----------- ------------- -----------
Net increase/(decrease). $ (10,978) (1,472) $ 1,878,738 180,406
============= =========== ============= ===========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 44,769,922 4,245,046 $ 31,135,063 2,950,938
Dividends reinvested.... 599,007 55,986 1,613,763 151,978
Shares redeemed......... (78,102,272) (7,368,883) (35,722,280) (3,389,736)
------------- ----------- ------------- -----------
Net increase/(decrease). $ (32,733,343) (3,067,851) $ (2,973,454) (286,820)
============= =========== ============= ===========
</TABLE>
Continued
53
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
5. CAPITAL SHARE TRANSACTIONS (CONTINUED):
<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, 1998 JANUARY 31, 1998
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 29,081 2,875 $ 347,507 32,042
Dividends reinvested.... 10,416 1,029 228,503 26,391
Shares redeemed......... (181,994) (17,971) (373,911) (35,962)
------------- ----------- ------------- ----------
Net increase/(decrease). $ (142,497) (14,067) $ 202,099 22,471
============= =========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 7,412,612 729,791 $ 5,833,525 609,088
Shares issued in
connection with common
trust fund acquisition.. 12,804,860 1,259,083
Dividends reinvested.... 213,846 21,088 1,553,438 176,588
Shares redeemed......... (3,398,425) (333,757) (1,741,685) (178,911)
------------- ----------- ------------- ----------
Net increase/(decrease). $ 17,032,893 1,676,205 $ 5,645,278 606,765
============= =========== ============= ==========
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
JULY 31, 1997 JULY 31, 1997
--------------------------- ---------------------------
<S> <C> <C> <C> <C>
RETAIL CLASS SHARES:
Shares issued........... $ 741,966 73,793 $ 1,372,902 111,117
Dividends reinvested.... 15,130 1,502 21,601 1,764
Shares redeemed......... (491,902) (48,887) (527,801) (42,850)
------------- ----------- ------------- ----------
Net increase/(decrease). $ 265,194 26,408 $ 866,702 70,031
============= =========== ============= ==========
INSTITUTIONAL CLASS
SHARES:
Shares issued........... $ 5,454,511 540,179 $ 9,703,868 791,509
Dividends reinvested.... 52,152 5,141 81,463 6,605
Shares redeemed......... (8,057,230) (796,267) (3,030,589) (240,435)
------------- ----------- ------------- ----------
Net increase/(decrease). $ (2,550,567) (250,947) $ 6,754,742 557,679
============= =========== ============= ==========
</TABLE>
Continued
54
<PAGE>
PACIFIC CAPITAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JANUARY 31, 1998
(UNAUDITED)
6. ACQUISITION OF COMMON TRUST FUNDS
On December 14, 1997, the Diversified Fixed Income Fund issued Investor Y
shares in a tax free conversion to acquire the assets and liabilities of the
Pacific Capital Taxable Bond Common Trust Fund. The following is a summary
of Investor Y shares issued, net assets acquired, net asset value per share
and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor Y Shares............ 817,085
Net assets acquired.......... $8,914,400
Net asset value.............. $ 10.91
Unrealized appreciation...... $ 387,572
</TABLE>
On December 14, 1997, the Growth Stock Fund issued Investor Y shares in a
tax free conversion to acquire the assets and liabilities of the Pacific
Capital Growth Stock Common Trust Fund. The following is a summary of
Investor Y shares issued, net assets acquired, net asset value per share and
unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor Y Shares............ 8,205,056
Net assets acquired.......... $120,286,123
Net asset value.............. $ 14.66
Unrealized appreciation...... $ 41,467,947
</TABLE>
On December 14, 1997, the Tax Free Securities Fund issued Investor Y shares
in a tax free conversion to acquire the assets and liabilities of the
Pacific Capital Tax Free Securities Common Trust Fund. The following is a
summary of Investor Y shares issued, net assets acquired, net asset value
per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor Y
Shares....................... 9,658,369
Net assets acquired.......... $104,600,137
Net asset value.............. $ 10.83
Unrealized appreciation...... $ 8,437,142
</TABLE>
On December 14, 1997, the Tax Free Short Intermediate Fund issued Investor Y
shares in a tax free conversion to acquire the assets and liabilities of the
Pacific Capital Tax Exempt Short Common Trust Fund. The following is a
summary of Investor Y shares issued, net assets acquired, net asset value
per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor Y Shares............ 1,259,082
Net assets acquired.......... $12,804,860
Net asset value.............. $ 10.17
Unrealized appreciation...... $ 116,334
</TABLE>
On December 14, 1997, the Short Intermediate U.S. Treasury Securities Fund
issued Investor Y shares in a tax free conversion to acquire the assets and
liabilities of the Pacific Capital Short Intermediate Common Trust Fund. The
following is a summary of Investor Y shares issued, net assets acquired, net
asset value per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Investor Y Shares............ 995,150
Net assets acquired.......... $9,573,342
Net asset value.............. $ 9.62
Unrealized appreciation...... $ 114,281
</TABLE>
Continued
55
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH STOCK FUND
-------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JANUARY , 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995
----------------------- ------------------ ----------------- ---------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL (C) TIONAL (B)
------- -------- ------- -------- ------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $17.43 $17.44 $11.89 $11.89 $11.71 $11.71 $ 9.83 $ 9.89
------- -------- ------- -------- ------- -------- ------ --------
Investment Activities
Net investment income.... (0.02) 0.00 0.03 0.07 0.07 0.10 0.12 0.11
Net realized and
unrealized gain (loss)
from investments........ 0.51 0.52 5.55 5.55 0.89 0.89 1.87 1.83
------- -------- ------- -------- ------- -------- ------ --------
Total from Investment
Activities............. 0.49 0.52 5.58 5.62 0.96 0.99 1.99 1.94
------- -------- ------- -------- ------- -------- ------ --------
Distributions
Net investment income.... (0.01) (0.02) (0.03) (0.07) (0.07) (0.10) (0.11) (0.12)
In excess of net
investment income....... -- -- (0.01) -- -- -- -- --
Net realized gains....... (2.62) (2.62) -- -- (0.22) (0.22) -- --
In excess of net realized
gains................... -- -- -- -- (0.49) (0.49) -- --
------- -------- ------- -------- ------- -------- ------ --------
Total Distributions..... (2.63) (2.64) (0.04) (0.07) (0.78) (0.81) (0.11) (0.12)
------- -------- ------- -------- ------- -------- ------ --------
NET ASSET VALUE,
END OF PERIOD............ $15.29 $15.32 $17.43 $17.44 $11.89 $11.89 $11.71 $11.71
======= ======== ======= ======== ======= ======== ====== ========
Total Return (excludes
sales charges)........... 3.01%(f) 3.19%(f) 47.02% 47.39% 8.25% 8.53% 20.43% 20.64%(d)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $10,444 $329,243 $9,742 $198,407 $5,261 $172,565 $3,905 $136,837
Ratio of expenses to
average net assets....... 1.31%(e) 1.06% 1.32% 1.07% 1.34% 1.09% 1.36% 1.13%(e)
Ratio of net investment
income to average net
assets................... (0.16)%(e) 0.04%(e) 0.16% 0.45% 0.60% 0.86% 1.12% 1.30%(e)
Ratio of expenses to
average net assets*...... 1.85%(e) 1.10%(e) 1.86% 1.11% 1.88% 1.13% 1.98% 1.21%(e)
Ratio of net investment
income to average net
assets*.................. (0.70)%(e) 0.00%(e) (0.38)% 0.41% 0.06% 0.82% 0.50% 1.23%(e)
Portfolio Turnover (g).... 46.66% 46.66% 32.20% 32.20% 61.30% 61.30% 32.40% 32.40%
Average Commission Rate
paid (h)................. $0.0777 $0.0777 $0.0893 $0.0893 $0.0895 $0.0895 -- --
<CAPTION>
NOVEMBER 1,
1993 TO
JULY 31,
1994 (A)
---------
<S> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $10.00
---------
Investment Activities
Net investment income.... 0.07
Net realized and
unrealized gain (loss)
from investments........ (0.18)
---------
Total from Investment
Activities............. (0.11)
---------
Distributions
Net investment income.... (0.06)
In excess of net
investment income....... --
Net realized gains....... --
In excess of net realized
gains................... --
---------
Total Distributions..... (0.06)
---------
NET ASSET VALUE,
END OF PERIOD............ $ 9.83
=========
Total Return (excludes
sales charges)........... (1.05%)(f)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $56,121
Ratio of expenses to
average net assets....... 1.41%(e)
Ratio of net investment
income to average net
assets................... 0.98%(e)
Ratio of expenses to
average net assets*...... 2.31%(e)
Ratio of net investment
income to average net
assets*.................. 0.07%(e)
Portfolio Turnover (g).... 25.89%
Average Commission Rate
paid (h)................. --
</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) 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.
See notes to financial statements.
56
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
U.S TREASURY SECURITIES FUND
--------------------------------------------------------------------------------------------------
FOR THE SIX FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 NOVEMBER 1,
--------------------- ---------------- ---------------- --------------------- 1993 TO
INSTITU- INSTITU- INSTITU- INSTITU- JULY 31,
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL (C) TIONAL (B) 1994 (A)
------- --------- ------ -------- ------ -------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...... $ 9.37 $ 9.38 $ 9.13 $ 9.14 $ 9.42 $ 9.43 $ 9.04 $ 8.66 $10.00
------- -------- ------ ------- ------ ------- ------ ------- -------
Investment Activities
Net investment income.... 0.30 0.31 0.52 0.53 0.53 0.59 0.50 0.44 0.31
Net realized and
unrealized gain (loss)
from investments........ 0.24 0.24 0.25 0.26 (0.20) (0.24) 0.38 0.76 (1.00)
------- -------- ------ ------- ------ ------- ------ ------- -------
Total from Investment
Activities............. 0.54 0.55 0.77 0.79 0.33 0.35 0.88 1.20 (0.69)
------- -------- ------ ------- ------ ------- ------ ------- -------
Distributions
Net investment income.... (0.30) (0.31) (0.46) (0.54) (0.53) (0.55) (0.50) (0.43) (0.27)
In excess of net
investment income....... -- -- (0.07) (0.01) (0.09) (0.09) -- -- --
------- -------- ------ ------- ------ ------- ------ ------- -------
Total Distributions..... (0.30) (0.31) (0.53) (0.55) (0.62) (0.64) (0.50) (0.43) (0.27)
------- -------- ------ ------- ------ ------- ------ ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 9.61 $ 9.62 $ 9.37 $ 9.38 $ 9.13 $ 9.14 $ 9.42 $ 9.43 $ 9.04
======= ======== ====== ======= ====== ======= ====== ======= =======
Total Return (excludes
sales charges)........... 5.39%(f) 5.52%(f) 8.68% 8.92% 3.43% 3.71% 10.18% 10.49%(d) (6.95)%(f)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $1,050 $21,739 $1,087 $23,832 $979 $23,248 $1,035 $51,264 $60,125
Ratio of expenses to
average net assets....... 1.14%(e) 0.89%(e) 1.16% 0.91% 1.20% 0.95% 1.19% 1.02%(e) 1.15%(e)
Ratio of net investment
income to
average net assets....... 5.42%(e) 5.67%(e) 5.60% 5.85% 5.55% 5.81% 5.57% 5.78%(e) 4.62%(e)
Ratio of expenses to
average net assets*...... 1.72%(e) 0.97%(e) 1.70% 0.95% 1.74% 0.99% 1.81% 1.09%(e) 2.09%(e)
Ratio of net investment
income to average net
assets*.................. 4.84%(e) 5.59%(e) 5.06% 5.81% 5.01% 5.77% 4.96% 5.71%(e) 3.68%(e)
Portfolio Turnover (g).... 10.35% 10.35% 44.90% 44.90% 15.75% 15.75% 80.98% 80.98% 11.36%
</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) 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.
57
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SHORT INTERMEDIATE U.S. TREASURY SECURITIES FUND
---------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 DECEMBER 13,
--------------------- ---------------- ---------------- --------------------- 1993 TO
INSTITU- INSTITU- INSTITU- INSTITU- JULY 31,
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL (C) TIONAL (B) 1994 (A)
------- --------- ------ -------- ------ -------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 9.55 $ 9.56 $ 9.41 $ 9.42 $ 9.60 $ 9.61 $ 9.52 $ 9.30 $10.00
------- -------- ------ ------- ------ ------- ------ ------- ------
Investment Activities
Net investment income.. 0.29 0.31 0.49 0.52 0.48 0.53 0.52 0.44 0.24
Net realized and
unrealized gain (loss)
from investments...... 0.15 0.15 0.14 0.14 (0.11) (0.13) 0.05 0.31 (0.52)
------- -------- ------ ------- ------ ------- ------ ------- ------
Total from Investment
Activities........... 0.44 0.46 0.63 0.66 0.37 0.40 0.57 0.75 (0.28)
------- -------- ------ ------- ------ ------- ------ ------- ------
Distributions
Net investment income.. (0.29) (0.31) (0.49) (0.52) (0.50) (0.53) (0.49) (0.44) (0.20)
In excess of net
investment income..... -- -- -- -- (0.04) (0.04) -- -- --
In excess of net
realized gains........ -- -- -- -- (0.02) (0.02) -- -- --
------- -------- ------ ------- ------ ------- ------ ------- ------
Total Distributions... (0.29) (0.31) (0.49) (0.52) (0.56) (0.59) (0.49) (0.44) (0.20)
------- -------- ------ ------- ------ ------- ------ ------- ------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.70 $ 9.71 $ 9.55 $ 9.56 $ 9.41 $ 9.42 $ 9.60 $ 9.61 $ 9.52
======= ======== ====== ======= ====== ======= ====== ======= ======
Total Return (excludes
sales charges)......... 4.25%(f) 4.37%(f) 6.92% 7.19% 3.90% 4.18% 6.28% 6.57%(d) (2.76)%(f)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)........... $636 $33,519 $618 $26,722 $1,156 $23,545 $489 $16,214 $3,419
Ratio of expenses to
average
net assets............. 0.85%(e) 0.60%(e) 0.87% 0.62% 0.92% 0.67% 0.99% 0.75%(e) 1.00%(e)
Ratio of net investment
income
to average net assets.. 5.16%(e) 5.41%(e) 5.22% 5.47% 5.14% 5.40% 5.51% 5.84%(e) 3.96%(e)
Ratio of expenses to
average
net assets*............ 1.60%(e) 0.85%(e) 1.62% 0.87% 1.67% 0.92% 1.78% 0.99%(e) 5.39%(e)
Ratio of net investment
income
to average net assets*. 4.41%(e) 5.16%(e) 4.47% 5.22% 4.39% 5.15% 4.72% 5.61%(e) (0.43)%(e)
Portfolio Turnover (g).. 6.35% 6.35% 51.56% 51.56% 47.17% 47.17% 62.73% 62.73% 0.00%
</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) 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.
58
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
-----------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------- ------------------ ----------------- ------------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL
------- -------- ------- -------- ------- -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $17.25 $17.27 $12.32 $12.32 $11.44 $11.43 $10.00 $10.00
------- -------- ------- -------- ------- ------- --------- ----------
Investment Activities
Net investment income.... 0.02 0.04 0.08 0.11 0.16 0.17 0.17 0.20
Net realized and
unrealized gain from
investments............. 0.76 0.76 5.57 5.58 1.19 1.21 1.44 1.42
------- -------- ------- -------- ------- ------- --------- ----------
Total from Investment
Activities............. 0.78 0.80 5.65 5.69 1.35 1.38 1.61 1.62
------- -------- ------- -------- ------- ------- --------- ----------
Distributions
Net investment income.... (0.02) (0.04) (0.08) (0.11) (0.15) (0.17) (0.17) (0.19)
In excess of net
investment income....... -- -- (0.01) -- (0.01) (0.01) -- --
Net realized gains....... (1.53) (1.53) (0.63) (0.63) (0.31) (0.31) -- --
------- -------- ------- -------- ------- ------- --------- ----------
Total Distributions..... (1.55) (1.57) (0.72) (0.74) (0.47) (0.49) (0.17) (0.19)
------- -------- ------- -------- ------- ------- --------- ----------
NET ASSET VALUE, END OF
PERIOD................... $16.48 $16.50 $17.25 $17.27 $12.32 $12.32 $11.44 $11.43
======= ======== ======= ======== ======= ======= ========= ==========
Total Return (excludes
sales charges)........... 4.74%(b) 4.85%(b) 47.59% 47.96% 11.96% 12.29% 16.35%(b) 16.41%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $4,571 $131,252 $3,726 $123,821 $1,160 $74,427 $328 $41,771
Ratio of expenses to
average net assets....... 1.33%(c) 1.08%(c) 1.32% 1.07% 1.37% 1.11% 1.40%(c) 1.14%(c)
Ratio of net investment
income to average net
assets................... 0.17%(c) 0.42%(c) 0.48% 0.79% 1.03% 1.43% 2.08%(c) 2.47%(c)
Ratio of expenses to
average net assets*...... 1.87%(c) 1.12%(c) 1.86% 1.12% 1.91% 1.15% 1.99%(c) 1.22%(c)
Ratio of net investment
income to average net
assets*.................. (0.37)%(c) 0.38%(c) (0.06)% 0.75% 0.49% 1.39% 1.49%(c) 2.39%(c)
Portfolio Turnover (d).... 36.84% 36.84% 74.83% 74.83% 80.83% 80.83% 12.78% 12.78%
Average Commission Rate
Paid (e)................. $0.0738 $0.0738 $0.0874 $0.0874 $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.
See notes to financial statements.
59
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
DIVERSIFIED FIXED INCOME FUND
--------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------- ---------------- ---------------- ------------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL
------- --------- ------ -------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...... $10.71 $10.78 $10.45 $10.53 $10.75 $10.84 $10.00 $10.00
------- --------- ------ -------- ------ -------- --------- ----------
Investment Activities
Net investment income.... 0.34 0.36 0.57 0.60 0.59 0.58 0.49 0.55
Net realized and
unrealized gain from
investments............. 0.25 0.26 0.35 0.34 (0.19) (0.16) 0.74 0.78
------- --------- ------ -------- ------ -------- --------- ----------
Total from Investment
Activities............. 0.59 0.62 0.92 0.94 0.40 0.42 1.23 1.33
------- --------- ------ -------- ------ -------- --------- ----------
Distributions
Net investment income.... (0.34) (0.36) (0.57) (0.60) (0.58) (0.61) (0.48) (0.49)
In excess of net
investment income....... -- -- -- -- (0.02) (0.02) -- --
In excess of net realized
gains................... -- -- (0.09) (0.09) (0.10) (0.10) -- --
------- --------- ------ -------- ------ -------- --------- ----------
Total Distributions..... (0.34) (0.36) (0.66) (0.69) (0.70) (0.73) (0.48) (0.49)
------- --------- ------ -------- ------ -------- --------- ----------
NET ASSET VALUE, END OF
PERIOD................... $10.96 $11.04 $10.71 $10.78 $10.45 $10.53 $10.75 $10.84
======= ========= ====== ======== ====== ======== ========= ==========
Total Return (excludes
sales charges)........... 5.15%(b) 5.36%(b) 9.20% 9.30% 3.69% 3.85% 12.66%(b) 13.70%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $1,446 $149,591 $1,103 $132,583 $1,093 $161,742 $27 $54,827
Ratio of expenses to
average net assets....... 1.08%(c) 0.83%(c) 1.15% 0.90% 1.15% 0.88% 1.18%(c) 0.93%(c)
Ratio of net investment
income
to average net assets.... 5.40%(c) 5.65%(c) 5.44% 5.67% 5.31% 5.56% 6.25%(c) 6.71%(c)
Ratio of expenses to
average net assets*...... 1.65%(c) 0.90%(c) 1.69% 0.94% 1.69% 0.92% 1.77%(c) 1.01%(c)
Ratio of net investment
income
to average net assets*... 4.83%(c) 5.58%(c) 4.90% 5.63% 4.77% 5.52% 5.66%(c) 6.63%(c)
Portfolio Turnover (d).... 35.66% 35.66% 80.98% 80.98% 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.
60
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SECURITIES FUND
-------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------- ---------------- ---------------- -----------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL
------- --------- ------ -------- ------ -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.84 $10.86 $10.44 $10.46 $10.53 $10.56 $10.00 $10.00
------- --------- ------ -------- ------ -------- -------- ----------
Investment Activities
Net investment income.. 0.28 0.30 0.49 0.51 0.50 0.52 0.39 0.42
Net realized and
unrealized gain from
investments........... 0.16 0.18 0.46 0.46 0.07 0.07 0.50 0.51
------- --------- ------ -------- ------ -------- -------- ----------
Total from Investment
Activities........... 0.44 0.48 0.95 0.97 0.57 0.59 0.89 0.93
------- --------- ------ -------- ------ -------- -------- ----------
Distributions
Net investment income.. (0.28) (0.30) (0.49) (0.51) (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) (0.06) (0.06) (0.09) (0.09) -- --
In excess of net
realized gains........ -- -- -- -- (0.04) (0.04) -- --
------- --------- ------ -------- ------ -------- -------- ----------
Total Distributions... (0.34) (0.36) (0.55) (0.57) (0.66) (0.69) (0.36) (0.37)
------- --------- ------ -------- ------ -------- -------- ----------
NET ASSET VALUE, END OF
PERIOD................. $10.94 $10.98 $10.84 $10.86 $10.44 $10.46 $10.53 $10.56
======= ========= ====== ======== ====== ======== ======== ==========
Total Return (excludes
sales charges)......... 3.76%(b) 4.08%(b) 9.35% 9.58% 5.54% 5.73% 9.06%(b) 9.54%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)........... $2,356 $415,516 $2,545 $296,764 $569 $288,934 $563 $281,646
Ratio of expenses to
average net assets..... 1.08%(c) 0.83%(c) 1.12% 0.87% 1.14% 0.89% 1.15%(c) 0.89%(c)
Ratio of net investment
income
to average net assets.. 4.45%(c) 4.70%(c) 4.60% 4.86% 4.66% 4.92% 4.93%(c) 5.16%(c)
Ratio of expenses to
average net assets*.... 1.65%(c) 0.90%(c) 1.66% 0.91% 1.68% 0.93% 1.74%(c) 0.98%(c)
Ratio of net investment
income
to average net assets*. 3.88%(c) 4.63%(c) 4.06% 4.82% 4.12% 4.88% 4.34%(c) 5.07%(c)
Portfolio Turnover (d).. 2.89% 2.89% 11.07% 11.07% 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.
61
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TAX-FREE SHORT INTERMEDIATE SECURITIES FUND
--------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED OCTOBER 14, 1994 TO
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 JULY 31, 1995 (A)
--------------------- ---------------- ---------------- ------------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL
------- --------- ------ -------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.17 $10.21 $10.05 $10.08 $10.11 $10.14 $10.00 $10.00
------- -------- ------ ------- ------ ------- --------- ----------
Investment Activities
Net investment income.. 0.21 0.22 0.37 0.39 0.37 0.40 0.30 0.32
Net realized and
unrealized gain from
investments........... 0.06 0.08 0.13 0.14 (0.03) (0.03) 0.08 0.11
------- -------- ------ ------- ------ ------- --------- ----------
Total from Investment
Activities........... 0.27 0.30 0.50 0.53 0.34 0.37 0.38 0.43
------- -------- ------ ------- ------ ------- --------- ----------
Distributions
Net investment income.. (0.21) (0.22) (0.37) (0.39) (0.37) (0.40) (0.27) (0.29)
In excess of net
investment income..... -- -- -- -- (0.03) (0.03) -- --
Net realized gains..... (0.06) (0.06) (0.01) (0.01) -- -- -- --
------- -------- ------ ------- ------ ------- --------- ----------
Total Distributions... (0.27) (0.28) (0.38) (0.40) (0.40) (0.43) (0.27) (0.29)
------- -------- ------ ------- ------ ------- --------- ----------
NET ASSET VALUE,
END OF PERIOD.......... $10.17 $10.23 $10.17 $10.21 $10.05 $10.08 $10.11 $10.14
======= ======== ====== ======= ====== ======= ========= ==========
Total Return (excludes
sales charges)......... 2.37%(b) 2.70%(b) 5.06% 5.36% 3.41% 3.67% 3.90%(b) 4.36%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)........... $582 $54,617 $724 $37,410 $451 $39,472 $308 $39,993
Ratio of expenses to
average net assets..... 1.04%(c) 0.79%(c) 1.09% 0.84% 1.08% 0.83% 1.05%(c) 0.85%(c)
Ratio of net investment
income
to average net assets.. 3.48%(c) 3.73%(c) 3.57% 3.82% 3.64% 3.90% 3.82%(c) 4.03%(c)
Ratio of expenses to
average net assets*.... 1.61%(c) 0.86%(c) 1.64% 0.89% 1.63% 0.88% 1.64%(c) 0.94%(c)
Ratio of net investment
income
to average net assets*. 2.91%(c) 3.66%(c) 3.02% 3.77% 3.09% 3.85% 3.23%(c) 3.94%(c)
Portfolio Turnover (d).. 30.21% 30.21% 29.46% 29.46% 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.
62
<PAGE>
PACIFIC CAPITAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW ASIA GROWTH FUND
----------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED FEBRUARY 15, 1995
JANUARY 31, 1998 JULY 31, 1997 JULY 31, 1996 TO JULY 31, 1995(A)
--------------------- ------------------ ------------------ -------------------------
INSTITU- INSTITU- INSTITU- INSTITU-
RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL RETAIL TIONAL
------- -------- ------- -------- ------- -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD...... $13.89 $13.94 $11.11 $11.14 $11.21 $11.22 $10.00 $10.00
------- ------- ------- ------- ------- ------- --------- ---------
Investment Activities
Net investment income
(loss).................. 0.04 0.06 0.03 0.06 (0.02) (0.01) 0.02 0.04
Net realized and
unrealized gain from
investments............. (5.19) (5.22) 2.88 2.87 0.20 0.22 1.19 1.18
------- ------- ------- ------- ------- ------- --------- ---------
Total from Investment
Activities............. (5.15) (5.16) 2.91 2.93 0.18 0.21 1.21 1.22
------- ------- ------- ------- ------- ------- --------- ---------
Distributions
Net investment income.... -- (0.02) (0.01) (0.01) -- -- -- --
In excess of net
investment income....... -- -- -- -- (0.02) (0.03) -- --
Net realized gains....... (1.04) (1.04) (0.12) (0.12) (0.26) (0.26) -- --
------- ------- ------- ------- ------- ------- --------- ---------
Total Distributions..... (1.04) (1.06) (0.13) (0.13) (0.28) (0.29) -- --
------- ------- ------- ------- ------- ------- --------- ---------
NET ASSET VALUE, END OF
PERIOD................... $ 7.70 $ 7.72 $13.89 $13.94 $11.11 $11.14 $11.21 $11.22
======= ======= ======= ======= ======= ======= ========= =========
Total Return (excludes
sales charges)........... (37.96)%(b) (37.90)%(b) 26.31% 26.50% 1.71% 1.99% 12.10%(b) 12.20%(b)
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000)............. $2,091 $14,867 $3,459 $18,376 $1,990 $8,469 $330 $2,861
Ratio of expenses to
average net assets....... 2.20%(c) 1.91%(c) 1.98% 1.72% 2.22% 1.98% 2.24%(c) 1.97%(c)
Ratio of net investment
income (loss) to average
net assets............... 0.72%(c) 1.01%(c) 0.20% 0.46% (0.28)% (0.02)% 0.80%(c) 1.18%(c)
Ratio of expenses to
average net assets*...... 2.79%(c) 2.00%(c) 2.58% 1.82% 3.58% 2.84% 3.51%(c) 2.74%(c)
Ratio of net investment
income (loss) to average
net assets*.............. 0.13%(c) 0.92%(c) (0.40)% 0.36% (1.64)% (0.88)% (0.47)%(c) 0.42%(c)
Portfolio Turnover (d).... 83.15% 83.15% 134.89% 134.89% 86.53% 86.53% 55.62% 55.62%
Average Commission Rate
Paid (e)................. $0.0052 $0.0052 $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.
See notes to financial statements.
63
<PAGE>
INVESTMENT ADVISER
Pacific Century Trust
111 S. King Street
Honolulu, Hawaii 96813
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071
INDEPENDENT AUDITORS
Ernst & Young LLP
One Columbus, Suite 2300
10 West Broad Street
Columbus, Ohio 43215
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219-3035
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.
PCR-0006 3/98
