<PAGE>
[LOGO OF PACIFIC CAPITAL FUNDS APPEARS HERE]
MANAGED BY PACIFIC CAPITAL TRUST. A DIVISION OF BANK OF HAWAII
Annual Report
[GRAPHIC APPEARS HERE]
July 31, 1999
Mutual Funds: "Are Not FDIC Insured . Have No Bank Guarantee . May Lose Value
<PAGE>
Table of Contents
Letter to Shareholders
Page 1
Fund Performance Review
Page 4
Statements of Assets and Liabilities
Page 28
Statements of Operations
Page 31
Statements of Changes in Net Assets
Page 34
Schedules of Portfolio Investments
Page 38
Notes to Financial Statements
Page 68
Financial Highlights
Page 82
Report of Independent Auditors
Page 99
<PAGE>
Letter to Shareholders
Dear Shareholders:
The financial markets experienced mixed performance during the past year, as
stocks performed favorably and bonds underperformed amid a great deal of
volatility. Economic growth remained strong during the period, with U.S. Gross
Domestic Product growing at an annual rate of better than 4.00%. Investors
worried at the beginning of the period that problems in world financial markets
would hurt the U.S. economy. However, interest rates were aggressively reduced
across Asian markets, right in line with the easing of the U.S. federal fund
rates, which put a floor to most Asian economies and calmed investor fears,
restoring liquidity and stimulating growth in U.S. markets. The spring of 1999
witnessed a fast growing economy, a tight labor market, the recovery of
overseas markets and the rising prices of commodities, such as oil and copper.
These factors triggered concerns that inflation would increase, causing the
Federal Reserve Board (Fed) to raise interest rates in June of '99 in an
attempt to slow the economy.
Equity Markets
During the 12 months ended July 31, 1999, the Dow Jones Industrial Average/1/
continued to climb closing above 11,000, while the Standard & Poor's Stock
Index gained 20.20%./2/ Investors who feared that the problems in overseas
markets would hurt the U.S. economy sought liquidity in the stocks of well-
established firms. Consequently, shares of these large growth-oriented
companies were the stock market's only bright spot early in the period. When
the Fed cut rates three times in autumn of 1998 to restore liquidity to world
markets, stocks reacted favorably and the market's gains subsequently broadened
to include value stocks and shares of small companies. Later, conflicting
evidence concerning inflation ignited further turbulence in the equity markets,
causing the Fed to step in once again, only this time to increase rates.
Fixed-Income Markets
The global financial crisis also primed the performance of Treasury bonds, as
investors sought safety and liquidity in those issues. At first, high quality
corporate bonds performed poorly, but rebounded following the three interest
rate cuts, as investors took advantage of the relatively high yields on those
issues. Later, inflation fears led to rising yields on Treasuries and high-
quality corporate bonds, prompting investors to purchase lower-quality bonds
due to their relatively high yields and a strong corporate earnings
environment.
Fund Performance
The Pacific Capital Funds performed favorably during the period. Although
returns on the fixed-income side were hampered by poor performance among bond
securities in general, most of the Pacific Capital fixed-income funds
outperformed their respective Lipper Indices. For example, the Pacific Capital
Tax-Free Securities Fund returned 2.00%+, compared to 1.59% for the Lipper
General Municipal Debt Funds Index./3/
The equity markets' strong performance during the period was reflected in the
returns of the Pacific Capital stock funds. In particular, the Pacific Capital
New Asia Growth Fund capitalized on the rebound in mainland Asia, returning
66.99%+ during the 12 months ended July 31, 1999, compared to a 57.99% gain for
the Lipper Pacific ex-Japan Fund Index./4/ Other strong performers included the
Pacific Capital Growth Stock Fund, with a 17.40%+ return, and the Pacific
Capital Growth and Income Fund, which gained 13.67%+.
The Pacific Capital Funds added four new funds during the period: the Pacific
Capital Small Cap Fund, the Pacific Capital International Stock Fund, the
Pacific Capital Value Fund, and the Pacific Capital Balanced Fund. With those
additions, Pacific Capital now offers an even more well-rounded family of
funds. In retrospect, we chose a fortuitous time to start the Small Cap and
Value Fund, as those sectors experienced strong rebounds following the
introduction of the Funds. Since their inception on December 3, 1998, the
Pacific Capital Small Cap Fund and the Pacific Capital Value Fund have returned
6.64%+ and 8.31%+, respectively.
1
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A Long-Term View
We are very confident that the long-term performance of the U.S. economy will
be strong--roughly 3% for the next several quarters--due to trends such as
technology-driven productivity increases and the aging of the baby boomers. We
will pay attention to short-term developments in the markets, but we will not
be distracted from our strategy of making long-term investments in quality
companies with strong earnings growth potential. On the fixed-income side, we
will continue to invest primarily in high-quality issues that we believe offer
the best value to protect shareholders' capital while delivering attractive
levels of income.
We expect that the recent federal funds rate increase should suffice for now.
However, should inflation fears surface later in the year the Fed could raise
interest rates one more time to slow the economy. We believe that overseas
economies have emerged from the crisis of the past two years, and have begun a
gradual rebuilding process. That rejuvenation should be good news for U.S.
companies that sell to those markets.
We expect less divergence among the different sectors of the equity markets
than we have seen in recent years. For example, going forward, we do not expect
small-cap stocks to perform as poorly relative to large-cap stocks as they have
for the five-year period prior to February's rebound.
The turbulence of the financial markets during the past twelve months
highlights the importance of maintaining a well-diversified portfolio, with
allocations to different sectors of the stock and bond markets and a long-term
investment strategy. The funds in the Pacific Capital Funds family may help you
pursue such a strategy.
Thank you for your confidence in the Pacific Capital Funds. If you have any
questions, please contact your registered investment consultant, or the Funds
at (800) 258-9232.
Sincerely,
[PHOTO APPEARS HERE] [PHOTO APPEARS HERE]
/s/ Walter J. Laskey /s/ William J. Barton
Walter J. Laskey William J. Barton
Executive Vice President, Bank of Hawaii Senior Vice President, Manager
Chairperson, Pacific Capital Funds Investment Management Group
Pacific Century Trust,
a division of Bank of Hawaii
+ Returns are for Class A Shares without sales charge. To find complete
performance history, you may refer to each Fund's individual performance
overview section.
/1/ The Dow Jones Industrial Average is a price-weighted average based on the
price-only performance of 30 blue-chip stocks (the average is computed by
adding the prices of the 30 stock splits, stock dividends and substitutions
of stocks).
/2/ The S&P 500 Stock Index is an unmanaged index generally representative of
the U.S. stock market as a whole.
/3/ The Lipper General Municipal Debt Fund Index consists of funds that invest
at least 65% of their assets in municipal debt issues in the top four credit
ratings.
/4/ The Lipper Pacific ex-Japan Fund Index consists of funds that concentrate
their investments in equity securities whose primary trading markets or
operations are concentrated in the Pacific region (including Asian
countries) and that specifically do not invest in Japan.
2
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[This Page Intentionally Left Blank]
3
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Pacific Capital Growth Stock Fund
[PHOTO OF ROGER KHLOPIN, CFA APPEARS HERE]
Roger Khlopin, CFA Vice President and Portfolio Manger
As Vice President, Mr. Khlopin serves as Equity Investment Team Leader at
Pacific Century Trust. Mr. Khlopin has 19 years of experience in the investment
industry and is a Chartered Financial Analyst. Prior to joining Pacific Century
Trust, he worked for other investment companies, such as Sanford C. Bernstein &
Company, Smith Barney and Dean Witter Reynolds. Mr. Khlopin earned a Bachelor
of Science at New York University and is a member of the Security Analysts
Society of San Francisco.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Growth Stock Fund returned
17.40%+ (for Class A Shares without sales charge), compared to 20.20% for the
S&P 500 Stock Index.
What were the major factors in the equity markets that contributed to the
Fund's performance?
The period February through April of 1999, witnessed a pronounced shift in
market leadership from growth stocks to value stocks. And with this shift, our
growth-style investment strategy fell out of favor. When investing for the
Fund, we use a sophisticated screening process to narrow down the universe of
several thousand stocks to search for companies that we believe exhibit
superior earnings and growth potential and that have a history of strong
management. For the period, the market took an opposite approach and favored
stocks that were either highly speculative--such as internet stocks--or those
that had stumbled in previous years.
What is your outlook for the Fund?
Despite the Fund's weak relative performance in the past year, we see little
reason to change our growth style investment strategy. We believe strong
returns can be earned over the long-term by concentrating the Fund in dominant
companies that operate within the most rapidly expanding segments of the
economy. At present, we are emphasizing the technology, health care and
consumer cyclical sectors. We believe the Fund looks very attractive on
virtually all key measures of growth, profitability and valuation. If inflation
and interest rates wobble in the months ahead, as we suspect, we believe the
Fund should be well positioned to enjoy a noticeable improvement in its
performance relative to its benchmark.
4
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Pacific Capital Growth Stock Fund
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Fund Objective:
The Fund, which seeks long-term growth of principal with a secondary objective
of dividend income, primarily invests in shares of large, high-quality
companies with two characteristics: above-average growth potential and exposure
to large global markets. We seek to invest in such companies when their shares
trade at attractive levels relative to their growth prospects. When
appropriate, the Fund also may invest in shares of smaller firms that we
believe demonstrate the potential for extraordinary growth.
[CHART OF PACIFIC CAPITAL GROWTH STOCK FUND APPEARS HERE]
Class A Class B Class Y Standard and Poor's
7/31/89 9,600 10,000 10,000 10,000
7/31/90 11,027 11,486 11,522 10,647
7/31/91 12,547 13,069 13,159 12,007
7/31/92 13,803 14,378 14,517 13,539
7/31/93 14,470 15,073 15,254 14,713
7/31/94 15,347 15,987 16,196 15,477
7/31/95 18,480 19,250 19,536 19,509
7/31/96 20,007 20,841 21,206 22,739
7/31/97 29,414 30,640 31,256 34,590
7/31/98 35,174 36,578 37,494 41,282
7/31/99 41,295 42,632 44,139 49,623
Past performance is no guarantee of future results. 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 quoted performance of the Pacific Capital Growth Stock 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 July 31, 1989, and prior to the Fund's
commencement of operations on November 1, 1993, for the A Class, and on
October 14, 1994, for the Y 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.
Class B Shares were not in existence prior to March 2, 1998. Performance
calculated for any period up to and through March 2, 1998, is based upon the
performance of the Class A Shares, which does not reflect the higher 12b-1 fees
or the contingent deferred sales charge (CDSC). Had the CDSC and higher 12b-1
fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Growth Stock Fund is measured against
the Standard & Poor's 500 Stock Index, an unmanaged index generally
representative of the broad 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.
5
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Pacific Capital Growth and Income Fund
[PHOTO OF CJLYDE POWERS, CFA APPEARS HERE]
Clyde Powers, CFA Vice President and Portfolio Manager
Mr. Powers serves as Vice President on the Equity Investment Team at Pacific
Century Trust. Mr. Powers has 27 years of experience managing growth funds and
growth-oriented portfolios for institutional investors and is a Chartered
Financial Analyst. Prior to joining Pacific Century Trust, he held positions at
Amcore Investment Group, Union Bank and Marine Bank Corp. Mr. Powers earned a
Bachelor of Business Administration in Finance from University of Wisconsin and
is a member of the Financial Analysts Federation Institute.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Growth and Income Fund
returned 13.67%+ (for Class A Shares without sales charge), due to a pronounced
shift in market leadership, compared to 20.20% for the S&P 500 Index.
What were the major factors in the equity markets that contributed to the
Fund's performance?
The period February through April of 1999, witnessed a pronounced shift in
market leadership from growth stocks to value stocks. And with this shift, our
growth-style investment strategy fell out of favor. The Fund currently retains
an overweight position in the technology, health care, capital spending and
financial sectors relative to its benchmark. Recently, financial stocks have
been one of the worst performing sectors, reflecting fears of a Federal Reserve
Board tightening of interest rates. However, as of the period ended July 31,
1999, the financial sector had one of the lowest market valuations and is still
delivering good earnings momentum. One of the top-performing sectors for the
Fund is technology, specifically, networking companies that are beginning to
benefit from the increasing demand to link voice, data and video.
During the period, we focused on companies benefiting from three major trends:
1) strong technology-related capital spending; 2) health care, which may
benefit from the aging population, improved treatment regimens and new products
for quality of life; and 3) the financial industry's ongoing
consolidation/asset-gathering capabilities.
What is your outlook for the Fund?
Recent economic data on productivity gains supports the continuation of large
capital budgets for technology and networking in particular. With that in mind,
we will continue to focus on the three major trends cited above. We believe the
Fund's low cash position and growth orientation is positioned to do well in an
environment of continued moderate economic growth, low inflation and a neutral
Federal Reserve stance.
6
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Pacific Capital Growth and Income Fund
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Fund Objective:
The Fund seeks to provide current income with a secondary objective of long-
term growth of principal by investing in a portfolio of large and medium-sized
company shares broadly diversified across industries. We especially favor
attractively valued stocks of companies we believe can deliver relatively
strong growth within their respective market sectors.
[CHART OF PACIFIC CAPITAL GROWTH & INCOME FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
Class A* Class B Class Y (No Load) Standard and Poor's
500 Stock Index
7/31/89 9,600 10,000 10,000 10,000
7/31/90 10,392 10,825 10,865 10,647
7/31/91 11,211 11,678 11,743 12,007
7/31/92 12,320 12,834 12,943 13,539
7/31/93 12,677 13,205 13,347 14,713
7/31/94 12,888 13,425 13,598 15,477
7/31/95 15,359 15,999 16,230 19,509
7/31/96 17,195 17,912 18,223 22,739
7/31/97 25,379 26,436 26,965 34,590
7/31/98 30,226 31,410 32,187 41,282
7/31/99 34,357 35,362 36,593 49,623
For performance purposes the above graph has not been adjusted for CDSC charges.
Average Annual Total Return as of July 31, 1999
1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 9.12% 20.67% 13.14%
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Class B Shares** 8.59% 21.28% 13.46%
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Class Y Shares (No Load) 13.69% 21.89% 13.85%
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* Reflects 4.00% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00% (CDSC). The CDSC does not
apply to performance over 6 years; therefore, the 10 year return does not
reflect the CDSC.
Past performance is no guarantee of future results. 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 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 July 31, 1989, 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.
Class B Shares were not in existence prior to March 2, 1998. Performance
calculated for any period up to and through March 2, 1998, is based upon the
performance of the Class A Shares, which does not reflect the higher 12b-1 fees
or the contingent deferred sales charge (CDSC). Had the CDSC and higher 12b-1
fees been incorporated, total return figures may have been adversely affected.
/1/The performance of the Pacific Capital Growth and Income Fund is measured
against the Standard & Poor's 500 Stock Index, an unmanaged index generally
representative of the broad 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.
7
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Pacific Capital New Asia Growth Fund+
[PHOTO OF TIM GREATON APPEARS HERE]
Tim Greaton
Portfolio Team Manager
Tim Greaton serves as Senior Portfolio Manager of CMG First State (Hong Kong)
LLC. Mr. Greaton has acted as the primary portfolio manager, responsible for
the day-to-day management of the Fund, since its inception in 1995. Currently
at CMG, he provides the investment management group with specific coverage of
the Taiwanese, Hong Kong/China and Korean markets. Prior to joining CMG, Mr.
Greaton held the position of Portfolio Team Manager at Nicholas Applegate
Capital Management ( Hong Kong) from 1997 to 1999, and served as Senior
Portfolio Manager of Credit Lyonnais International Asset Management (HK)
Limited from 1992 to 1997. Mr. Greaton earned a Bachelor of Political Science
in Economics and Chinese. He has also successfully completed graduate programs
at Taiwan University and Nanjing University.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
During what has been one of the most turbulent investment environments in
recent history, the Fund delivered a return of 66.99% (for Class A Shares
without sales charge), versus the MSCI AC Far East Free ex-Japan Index gain of
84.99%, for the 12 months ended 7/31/99.
Significant performance contributors for the Fund, included contract
manufacturers in Singapore, leading financial services companies in Korea and
Thailand, and companies in India held via Global Depository Receipts. In Hong
Kong, we restructured the portfolio away from defensive utilities and
telecommunications. Despite our restructuring, we could not take our overall
Hong Kong weightings to the benchmark level and, consequently, missed out on
the ensuing rally from mid-February to late April.
What were the major factors in the Asian markets that contributed to the Fund's
strong performance?
After a strong fourth quarter in 1998, financial markets paused momentarily
before regaining momentum to end the first half of 1999 substantially higher.
With the exception of Indonesia, all of the "crisis" Asian countries posted
positive first-quarter Gross Domestic Product (GDP) growth.
Interest rates were aggressively reduced across Asia right in line with the
easing of the U.S. federal fund rates. This aggressive monetary easing coupled
with liberal amounts of government pump priming and foreign direct investment
in the region have put a floor to most Asian economies. Higher U.S. interest
rates are not likely to significantly derail the Asian economic recovery in
1999. A surprising 1.9% first quarter GDP growth for Asia's largest economy--
Japan--was welcomed and, if sustained, would be highly positive for the rest of
the region.
Are there any stocks or industry sectors you favor right now?
Stock markets in Asia have risen to reflect a more bullish environment.
Consumers in Thailand, Singapore and Malaysia have mustered the confidence to
start buying motor cars. Real estate prices in Hong Kong and Singapore are
moderately higher, and basic commodity prices like steel, plastics and oil have
also recovered from their depressed levels.
What is your outlook for the Fund?
Upward revisions in equity prices stemming from lower interest rates are
largely behind us now. Going forward, the earnings potential from recovering
business should support and drive equity prices. We expect 1999 to be a year of
turnaround where stronger companies will emerge from the crisis more
competitive and sensitive to shareholder returns. In this respect, the Fund
will continuously seek out companies that are growing faster than the economy
in general and whose earnings are on a sustainable upward path.
+ International investing involves increased risk and volatility.
8
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Pacific Capital New Asia Growth Fund
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Fund Objective:
The Fund's primary investment objective is long-term growth of capital. The
Fund seeks to achieve this objective by investing in equity securities of
rapidly growing companies located in the developing countries of Asia. The Fund
may invest in these securities directly, or indirectly through other investment
companies or trusts that invest the majority of their assets in the developing
countries of Asia. The Fund does not limit its investments to any particular
type or size of company. The Fund focuses on companies whose earnings the Sub-
Adviser expects to grow or whose share price it believes is undervalued.
[CHART OF PACIFIC CAPITAL NEW ASIA GROWTH APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A* Class B** Class Y (No load) MSCI AC Far East Free ex-Japan
<S> <C> <C> <C> <C>
2/15/95 9,479 10,000 10,000 10,000
7/31/95 10,626 10,710 11,220 10,331
7/31/96 10,807 10,997 11,444 10,704
7/31/97 13,650 10,095 14,476 12,150
7/31/98 6,617 7,163 7,418 4,675
7/31/99 11,656 11,981 12,410 8,648
</TABLE>
Average Annual Total Return as of July 31, 1999
Since
Inception
1 Year (2/15/95)
- --------------------------------------------------------------------------------
Class A Shares* 58.26% 3.50%
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Class B Shares** 61.66% 4.14%
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Class Y Shares (No Load) 67.38% 4.97%
- --------------------------------------------------------------------------------
* Reflects 5.25% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00%
Past performance is no guarantee of future results. 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.
Class B Shares were not in existence prior to March 2, 1998. Performance
calculated for any period up to and through March 2, 1998, is based upon the
performance of the Class A Shares, which does not reflect the higher 12b-1 fees
or the contingent deferred sales charge (CDSC). Had the CDSC and higher 12b-1
fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital New Asia Growth Fund is measured against
the Morgan Stanley Capital International (MSCI) All Country (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.
9
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Pacific Capital Diversified Fixed Income Fund
[PHOTO OF JANET E. KATAKURA APPEARS HERE]
Janet E. Katakura
Vice President and Portfolio Manager
As Vice President, Ms. Katakura currently serves as Taxable Fixed-Income Team
Leader. Ms. Katakura has 27 years prior experience in the investment industry,
her most recent 17 years at Pacific Century Trust. Prior to joining Pacific
Century Trust, Ms. Katakura held positions at Hawaiian Life Insurance Co., Ltd.
and First National Bank of Boston. Ms. Katakura is a Member of the Investment
Society of Hawaii.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Diversified Fixed Income
Fund returned 1.02%+ (for Class A Shares without sales charge), due to its
longer duration and higher quality, compared to 2.32% for the Merrill Lynch
Corporate & Government Master Index.
What major factors in the fixed-income markets contributed to the Fund's
performance?
Bonds suffered yet another setback as interest rates rose in the second quarter
of 1999, due to inflationary fears caused by strong economic growth and a tight
labor market. In addition to an overall increase in rates, several technical
factors pushed corporate and government agency spreads to their widest levels
this year: 1) concerns over Y2K issues, which caused issuers to come to market
earlier in the year; 2) the loss of liquidity in the market due to heavy
supply; and 3) higher rates, which diminished investor ability to swap into new
issues.
What is your outlook for the Fund?
We have positioned the Fund to achieve maximum income over the long-term. We
believe that our strategy of longer-duration, high-quality bonds should help to
achieve our objective over the long run. We are currently investing cash flows
into government agency securities, which are at very wide yield spreads and
offer great values at these levels. By year-end, we anticipate that the supply
of fixed-income securities will diminish. The Treasury has already announced
fewer and smaller auctions and corporate issuers are bringing their deals in
earlier than expected. This should force narrower yield spreads by the first of
next year.
10
<PAGE>
Pacific Capital Diversified Fixed Income Fund
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Fund Objective:
The investment objective of the Diversified Fixed Income Fund is to seek a high
level of current income. The Fund pursues its objective by investing primarily
in high quality corporate bonds and obligations issued or guaranteed by the
U.S. government, its agencies, or instrumentalities.
[CHART OF PACIFIC CAPITAL DIVERSIFIED FIXED INCOME FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Merrill Lynch Corporate &
Class A* Class B Class Y (No load) Government Master Index
<S> <C> <C> <C> <C>
7/31/89 9,600 10,000 10,000 10,000
7/31/90 9,992 10,408 10,427 10,616
7/31/91 10,950 11,406 11,467 11,704
7/31/92 12,678 13,207 13,305 13,529
7/31/93 14,339 14,937 15,085 15,022
7/31/94 13,799 14,374 14,544 15,026
7/31/95 15,203 15,836 16,187 16,569
7/31/96 15,757 16,413 16,803 17,442
7/31/97 17,208 17,925 18,367 19,324
7/31/98 18,517 19,246 19,827 20,899
7/31/99 18,705 19,293 20,044 21,384
</TABLE>
For performance purposes the above graph has not been adjusted for CDSC charges.
Average Annual Total Return as of July 31, 1999
1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* -2.98% 5.40% 6.46%
- --------------------------------------------------------------------------------
Class B Shares** -3.55% 5.90% 6.79%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 1.10% 6.63% 7.20%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00% (CDSC). The CDSC does not
apply to performance over 6 years; therefore, the 10 year return does not
reflect the CDSC.
Past performance is no guarantee of future results. 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 quoted performance of the Pacific Capital Diversified Fixed Income 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 July 31, 1989, 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.
Class B Shares were not in existence prior to March 2, 1998. Performance
calculated for any period up to and through March 2, 1998, is based upon the
performance of the Class A Shares, which does not reflect the higher 12b-1 fees
or the contingent deferred sales charge (CDSC). Had the CDSC and higher 12b-1
fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Diversified Fixed Income Fund is
measured against the Merrill Lynch Corporate & Government Master Index, an
unmanaged index 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.
11
<PAGE>
Pacific Capital U.S. Treasury Securities Fund
[PHOTO OF DAVE TODANI APPEARS HERE]
Dave Todani, CFA
Vice President and Portfolio Manager
Mr. Todani serves as Vice President on the Taxable Fixed-Income Investment Team
at Pacific Century Trust. Mr. Todani has 14 years prior investment experience
in which he served as a fixed income portfolio manager and treasury officer for
Bank of Hawaii. Mr. Todani earned a Bachelor of Business Administration from
University of Washington and is a Chartered Financial Analyst.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital U.S. Treasury Securities
Fund returned 1.41%+ (for Class A Shares without sales charge), due to its
longer duration, compared to 2.78% for the Merrill Lynch U.S. Treasury All
Maturity Index.
Beside the longer duration, the Fund was hurt by its holdings of 15- to 24-year
bonds, which performed poorly during the period. Such bond maturities typically
enable the Fund to lengthen duration and to generate higher yields than 30-year
bonds. However, in a declining market, they may tend to do worse than other
bonds.
What were the major factors in the Treasury market that contributed to the
Fund's performance?
Bonds suffered yet another setback as interest rates rose in the second quarter
of 1999, due to inflationary fears caused by strong economic growth and a tight
labor market. Despite benign Consumer Price Index/1/ and Producer Price
Index/2/ numbers, investor sentiment remained bearish for bonds as selling
pressure pushed yields 50 basis points higher over the past three months.
In addition to the overall increase in rates, the yield curve flattened. The
greatest rise took place in the intermediate maturity sectors, causing bond
funds with intermediate maturities to suffer the greatest losses within the
market. Credit spreads, which had tightened in the beginning of the year, began
widening as the second quarter ended. Concerns over Y2K issues prompted issuers
to come to market earlier in the year. This heavy supply, along with a lack of
liquidity in the market, caused spreads to widen.
What is your outlook for the Fund?
We expect that interest rates will trade within a narrow band for the rest of
1999. This suggests a strategy using securities with incremental yield, since
price appreciation through duration management is likely to be limited. Within
the Treasury universe, the bonds that typically offer the greatest yields are
the 15- to 25-year bonds, which have delivered poor returns so far this year.
However, with yield spreads of 25 to 30 basis points more than the 30-year long
bond, these securities offer tremendous value. We believe that building a
position of these securities will help to increase the Funds yield and extend
the duration to a target level which is 15% longer than the benchmark.
/1/ The Consumer Price Index is a measure of the average change in prices over
time in a fixed market basket of goods and services.
/2/ Producer Price Index is a measure of change in wholesale prices.
12
<PAGE>
Pacific Capital U.S. Treasury Securities Fund
- --------------------------------------------------------------------------------
Fund Objective:
The investment objective of the U.S. Treasury Securities Fund, a diversified
portfolio, is to provide investors with a high level of current income
consistent with prudent risk of capital. The potential for some capital
appreciation is a secondary consideration. The Fund pursues these objectives by
investing primarily in U.S. Treasury bonds, notes and bills and repurchase
agreements that are collateralized by U.S. Treasury securities. The Fund
focuses on maximizing income consistent with prudent investment risk, and
varies the average maturity of its investment portfolio from time to time to
take advantage of expected changes in interest rates.
[CHART OF PACIFIC CAPITAL U.S. TREASURY SECURITIES FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A* Class Y (No load) Merrill Lynch U.S. Treasury All Maturity Index
<S> <C> <C> <C>
7/31/89 9,600 10,000 10,000
7/31/90 10,008 10,428 10,594
7/31/91 10,911 11,407 11,641
7/31/92 12,572 13,165 13,402
7/31/93 14,029 14,709 14,862
7/31/94 13,557 14,230 14,831
7/31/95 14,933 15,718 16,278
7/31/96 15,439 16,291 17,103
7/31/97 16,778 17,744 18,840
7/31/98 18,117 19,207 20,423
7/31/99 18,372 19,524 20,990
</TABLE>
Average Annual Total Return as of July 31, 1999
1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* -2.64% 5.39% 6.28%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 1.65% 6.53% 6.92%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
Past performance is no guarantee of future results. 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 quoted performance of the Pacific Capital U.S. Treasury Securities 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 July 31, 1989, and prior to the
Fund's commencement of operations on November 1, 1993, for the A Class, and
on October 14, 1994, for the Y 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 performance of the Pacific Capital U.S. Treasury Securities Fund is
measured against the Merrill Lynch U.S. Treasury All Maturity Index, an
unmanaged index generally representative of 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.
13
<PAGE>
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
[PHOTO OF APPEARS HERE]
Dave Todani
Vice President and Portfolio Manager
Mr. Todani serves as Vice President on the Taxable Fixed-Income Investment Team
at Pacific Century Trust. Mr. Todani has 14 years prior investment experience
in which he served as a fixed income portfolio manager and treasury officer for
Bank of Hawaii. Mr. Todani earned a Bachelor of Business Administration from
University of Washington and is a Chartered Financial Analyst.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Short Intermediate U.S.
Treasury Securities Fund returned 2.79% (for Class A Shares without sales
charge), due to its longer duration, compared to 4.18% for the Merrill Lynch 3-
5-Year U.S. Treasury Index.
The use of six-year securities to slightly extend the duration of the Fund
beyond that of the benchmark hurt its performance, as the yield on six-year
issues rose 65 basis points during the period, compared to 58 basis points for
five-year Treasury securities.
What were the major factors in the Treasury market that contributed to the
Fund's performance?
Bonds suffered yet another setback as interest rates rose in the second quarter
of 1999, due to inflationary fears caused by strong economic growth and a tight
labor market. Despite benign Consumer Price Index/1/ and Producer Price
Index/2/ numbers, investor sentiment remained bearish for bonds as selling
pressure pushed yields 50 basis points higher over the past three months of
1999.
In addition to the overall increase in rates, the yield curve flattened. The
greatest rise took place in intermediate maturity sectors, causing bond funds
with intermediate maturities to suffer the greatest losses within the market.
Credit spreads, which had tightened early in the year, began widening as the
second quarter ended. Concerns over Y2K issues caused issuers to come to market
earlier in the year. This heavy supply, along with a lack of liquidity in the
market, caused spreads to widen.
What is your outlook for the Fund?
We will maintain a bullet-structured portfolio (maturities concentrated in the
middle of the yield curve) that concentrates on securities in the Merrill Lynch
3-5-Year U.S. Treasury Index universe. We will position the duration of the
Fund close to the 2-5 year average life requirements of the benchmarks as we
anticipate the short-term prospect of further federal fund's rate tightening.
/1/ The Consumer Price Index is a measure of the average change in prices over
time in a fixed market basket of goods and services.
/2/ Producer Price Index is a measure of change in wholesale prices.
14
<PAGE>
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
- --------------------------------------------------------------------------------
Fund Objective:
The primary investment objective of the Short Intermediate U.S. Treasury
Securities Fund, a diversified portfolio, is to provide investors with a high
level of current income consistent with prudent risk of capital. The potential
for some capital appreciation is a secondary consideration. The Fund pursues
these objectives by investing primarily in U.S. Treasury securities and
repurchase agreements that are collateralized by U.S. Treasury securities. The
Fund maintains an average maturity of two to five years. The Fund focuses on
maximizing income consistent with prudent investment risk within this maturity
range.
[CHART OF PACIFIC CAPITAL SHORT INTERMEDIATE U.S. TREASURY
SECURITIES FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
Class A* Class Y (No load) Merrill Lynch 3-5 Year U.S. Treasury
Index
12/13/93 9,775 10,000 10,000
7/31/94 9,506 9,724 9,878
7/31/95 10,103 10,363 10,766
7/31/96 10,497 10,797 11,266
7/31/97 11,223 11,573 12,316
7/31/98 11,657 12,340 13,171
7/31/99 12,254 12,711 13,722
Average Annual Total Return as of July 31, 1999
Since
Inception
1 Year 5 Year (12/13/93)
- --------------------------------------------------------------------------------
Class A Shares* 0.49% 4.73% 3.68%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 3.05% 5.50% 4.35%
- --------------------------------------------------------------------------------
* Reflects 2.25% Maximum Front-End Sales Charge.
Past performance is no guarantee of future results. 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 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.
The performance for the Class Y Shares of the Pacific Capital Short
Intermediate U.S. Treasury Securities Fund prior to 10/14/94 is based on the
performance of the Class A Shares.
15
<PAGE>
Pacific Capital Tax-Free Securities Fund+
[PHOTO OF YVONNE LIM APPEARS HERE]
Yvonne Lim
Vice President and Portfolio Manager
Ms. Lim serves as Vice President on the Tax-Exempt Fixed Income Investment Team
at Pacific Century Trust. Ms. Lim has been managing money market and tax-free
income portfolios with Pacific Century Trust for over eight years. Her prior
experience includes positions in international finance at Bank of Hawaii and a
cash manager at BHP Hawaii. Ms. Lim earned a Bachelor of Science in finance at
Hawaii Pacific University and is a Certified Credit Administrator.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Tax-Free Securities Fund
returned 2.00%++ (for Class A Shares without sales charge), due to its longer
duration and higher quality, compared to 2.88% for the Lehman Brothers
Municipal Bond Index.
What were the major factors in the municipal market that contributed to the
Fund's performance?
Municipal bonds continued to slightly outperform Treasuries earlier in the
period, but their resilience finally broke down. Spread widening between
corporate bonds and agency securities put pressure on municipal yields to
maintain their tax benefit. Although issuance was off by 40% compared to last
year, cash flow into municipals was anemic. The recent rise in yield has
attracted retail investors, but institutional buyers continue to be sidelined
by a combination of a lack of cash and the appeal of taxable spread products.
What were the major factors in the Hawaiian Municipal market that contributed
to the Fund's performance?
There were no new Hawaiian issuances this past quarter of 1999. The state
appears to be in a tentative recovery mode, with real Gross State Product
projected in a range of 1% to 2.5% for 1999. Although employment remains flat,
personal income--adjusted for inflation--is expected to grow at the rate of
2.5%. The real estate sector continues to show encouraging signs of improvement
with transaction volumes increasing significantly. Although the visitor count
is still down, the decline has been somewhat offset by an increase in the
length of stay. The state's recovery largely depends on the prospect of
recovery in Asia, primarily Japan.
What is your outlook for the Fund?
We will continue to maintain a longer duration than that of the benchmark while
seeking relative value swap opportunities. We have increased our Hawaiian
holdings by swapping out of non-Hawaiian holdings that are trading at tighter
spreads. Our outlook continues to be positive despite concerns over further
Federal Reserve Board tightening of interest rates. We believe growth during
the second half should continue to slow, especially with Y2K related issues.
Municipal supply is expected to remain moderately lower compared to last year;
however, if spreads continue to widen on taxable bonds, it will cause some
pressure on the municipal market.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
16
<PAGE>
Pacific Capital Tax-Free Securities Fund
- --------------------------------------------------------------------------------
Fund Objective:
The Tax-Free Securities Fund's investment objective is to seek high current
income that is exempt from federal and Hawaii income tax. With this in mind, we
tend to be more moderate on interest rate bets and look toward more consistent
long-term performance. Our strategy is to select bonds, that we believe provide
good relative value and structural fit within the context of our interest rate
outlook, while heavily emphasizing higher quality bonds and credit analysis.
The Fund intends to invest at least 50% to 60% of its holdings in Hawaiian
municipal bonds. Our primary goal is to provide the highest level of double
tax-exempt income (free from federal and state taxes), while providing
diversification through national issues from states that are economically sound
and viable.
[CHART OF PACIFIC CAPITAL TAX-FREE SECURITIES FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A* Class B Class Y (No load) Lehman Brothers Municipal Bond Index
<S> <C> <C> <C> <C>
7/31/89 9,600 10,000 10,000 10,000
7/31/90 10,094 10,514 10,549 10,693
7/31/91 10,886 11,340 11,399 11,627
7/31/92 12,315 12,828 12,936 13,224
7/31/93 13,393 13,951 14,102 14,393
7/31/94 13,276 13,829 14,005 14,663
7/31/95 14,164 14,754 15,021 15,817
7/31/96 14,943 15,566 15,877 16,861
7/31/97 16,341 17,022 17,398 18,590
7/31/98 17,185 17,887 18,378 19,704
7/31/99 17,529 18,138 18,792 20,271
</TABLE>
Average Annual Total Return as of July 31, 1999
1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* -2.07% 4.85% 5.77%
- --------------------------------------------------------------------------------
Class B Shares** -2.47% 5.41% 6.13%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 2.26% 6.06% 6.51%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00% (CDSC). The CDSC does not
apply to performance over 6 years; therefore, the 10 year return does not
reflect the CDSC.
Past performance is no guarantee of future results. 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 quoted performance of the Pacific Capital Tax-Free Securities 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 July 31, 1989, 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.
Class B Shares were not in existence prior to March 2, 1998. Performance
calculated for any period up to and through March 2, 1998, is based upon the
performance of the Class A Shares, which does not reflect the higher 12b-1 fees
or the contingent deferred sales charge (CDSC). Had the CDSC and higher 12b-1
fees been incorporated, total return figures may have been adversely affected.
The performance of the Pacific Capital Tax-Free Securities Fund is measured
against the Lehman Brothers Municipal Bond Index, which is an unmanaged index
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.
17
<PAGE>
Pacific Capital Tax-Free Short Intermediate Securities Fund+
[PHOTO OF YVONNE LIM APPEARS HERE]
Yvonne Lim
Vice President and Portfolio Manager
Ms. Lim serves as Vice President on the Tax-Exempt Fixed Income Investment Team
at Pacific Century Trust. Ms. Lim has been managing money market and tax-free
income portfolios with Pacific Century Trust for over eight years. Her prior
experience includes positions in international finance at Bank of Hawaii and a
cash manager at BHP Hawaii. Ms. Lim earned a Bachelor of Science in finance at
Hawaii Pacific University and is a Certified Credit Administrator.
How did the Fund perform compared to its benchmark for the 12-month period
ended July 31, 1999?
For the 12 months ended 7/31/99, the Pacific Capital Tax-Free Short
Intermediate Securities Fund returned 2.44%++ (for Class A Shares without sales
charge), due to its longer duration and higher quality, compared to 3.54% for
the Lehman Brothers 5-Year Municipal Bond Index.
What were the major factors in the municipal market that contributed to the
Fund's performance?
Municipal bonds continued to slightly outperform Treasuries in the beginning of
the period, but their resilience finally broke down. Spread widening between
corporate bonds and agency securities put pressure on municipal yields to
maintain their tax benefit. Although issuance was off by 40% compared to last
year, cash flow into municipals was anemic. The recent rise in yield has
attracted retail investors, but institutional buyers continue to be sidelined
by a combination of a lack of cash and the appeal of taxable spread products.
What were the major factors in the Hawaiian Municipal market that contributed
to the Fund's performance?
There were no new Hawaiian issuances this past quarter of 1999. The state
appears to be in a tentative recovery mode, with real Gross State Product
projected in a range of 1% to 2.5% for 1999. Although employment remains flat,
personal income, adjusted for inflation, is expected to grow at the rate of
2.5%. The real estate sector continues to show encouraging signs of
improvement, with transaction volumes increasing significantly. Although the
visitor count is still down, the decline has been somewhat offset by an
increase in the length of stay. The state's recovery largely depends on the
prospect of recovery in Asia, primarily Japan.
What is your outlook for the Fund?
We will continue to maintain a longer duration than that of the benchmark while
seeking relative value swap opportunities. We have increased our Hawaiian
holdings by swapping out of non-Hawaiian holdings that are trading at tighter
spreads. Our outlook continues to be positive despite concerns over further
Federal Reserve Board tightening of interest rates. We believe growth during
the second half should continue to slow, especially with Y2K related issues.
Municipal supply is expected to remain moderately lower compared to last year;
however, if spreads continue to widen on taxable bonds, it will cause some
pressure on the municipal market.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
18
<PAGE>
Pacific Capital Tax-Free Short Intermediate Securities Fund
- --------------------------------------------------------------------------------
Fund Objective:
The Tax-Free Short Intermediate Securities Fund seeks to provide a high level
of tax exempt income and more price stability than a long term bond fund. The
Fund also provides double tax exempt income for residents of Hawaii--50% to 60%
of the Fund's holdings are invested in Hawaiian municipal bonds--while
fulfilling diversification through national municipal issues.
In selecting bonds, we consider the structure of the yield curve as well as
yield ratios relative to treasuries to determine value. We also seek relative
value amongst bonds that are of similar structure and quality.
[CHART OF PACIFIC CAPITAL TAX-FREE INTERMEDIATE SECURITIES APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
Class A* Class Y Lehman Brothers 5-Year Municipal Bond Index
(No load)
7/31/89 9,775 10,000 10,000
7/31/90 10,380 10,641 10,697
7/31/91 11,062 11,373 11,616
7/31/92 11,944 12,301 13,073
7/31/93 12,449 12,863 13,937
7/31/94 12,651 13,098 14,326
7/31/95 13,103 13,640 15,392
7/31/96 13,549 14,141 16,095
7/31/97 14,235 14,898 17,262
7/31/98 14,714 15,469 18,088
7/31/99 15,073 15,869 18,729
Average Annual Total Return as of July 31, 1999
1 Year 5 Year 10 Year
- --------------------------------------------------------------------------------
Class A Shares* 0.16% 3.10% 4.19%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 2.60% 3.91% 4.73%
- --------------------------------------------------------------------------------
* Reflects 2.25% Maximum Front-End Sales Charge.
Past performance is no guarantee of future results. 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 quoted performance of the Pacific Capital Tax-Free Short Intermediate
Securities 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 July
31, 1989, 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 performance of the Pacific Capital Tax-Free Short Intermediate Securities
Fund is measured against the Lehman Brothers 5-Year Municipal Bond Index, an
unmanaged index that generally 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
maturities 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.
19
<PAGE>
Pacific Capital International Stock Fund+
[PHOTO OF CATHERINE SOMHEGYI, LARRY SPEIDEL, LORETTA MORRIS, AND MELISA
GRIGOLITE APPEARS HERE]
Sub-advised by Nicholas- Applegate, a team comprised of Catherine Somhegyi,
Larry Speidell, Loretta Morris, and Melisa Grigolite is responsible for the
day-to-day management of the Fund. Ms. Somhegyi, with 14 years investment
experience, is Chief Investment Officer for Global Equity Management and has
extensive experience managing assets for clients. Mr. Speidell has more than 28
years investment management experience, including prior experience with
Batterymarch Financial Management and Putnam Management Company. Ms. Morris and
Ms. Grigolite are responsible for international portfolio management and
research.
How did the Fund perform since its inception on 12/2/98 compared to its
benchmark?
For the eight months ended 7/31/99, the Pacific Capital International Stock
Fund outperformed its benchmark, posting a strong return of 19.60%++ (for Class
A Shares without sales charge), compared to 11.28% for the MSCI EAFE Index.
Performance was aided by the increased allocation to Japan along with specific
stock selection, such as Soft Bank (2.32% of the Fund's net assets), as well as
holdings in the semiconductor and technology sectors in Europe.
What major factors in the international markets contributed to the Fund's
performance?
Only the United States responded to concerns about increasing inflationary
pressures, by modestly raising the federal funds rate as the strength of the
U.S. economy, coupled with signs of improvement in Japan and Continental Europe
continued. The improving outlook for Europe and Japan also resulted in a weaker
dollar versus the euro and yen.
Corporate restructuring in Japan is slow but still encouraging. On the flip
side, hostile takeovers appear to be one result of the introduction of a single
currency in Europe, fueling the rapid pace of European and cross-border mergers
and acquisitions that continued throughout the period.
Although the U.S. economy remains robust, the risk of an impact on global
markets from the continuing increase in U.S. interest rates appears low. We
expect that the recent federal funds rate increase should suffice for now. In
the meantime, fundamentals for many companies, especially in Asia, continue to
improve.
What is your outlook for the Fund?
We have increased exposure to Japan substantially this year, going from under
17% as of 12/31/98 to over 28% as of the end of July 1999. We are now
overweighted instead of underweighted in comparison to the Fund's benchmark,
the MSCI EAFE Index.
We have trimmed back slightly on our exposure to emerging markets. Going
forward, we will seek to remain overweighted in technology and will have an
almost neutral weighting in energy.
+ International investing involves increased risk and volatility.
++ Class A Shares were not in existence prior to December 8, 1999. Performance
calculated for any period up to and through December 8, 1998, is based upon
the performance of Class Y Shares.
20
<PAGE>
Pacific Capital International Stock Fund
- --------------------------------------------------------------------------------
Fund Objective:
Seeking long-term growth of capital, the International Stock Fund primarily
invests in preferred and common stocks of foreign companies. The Fund may
invest in these securities directly or through other investment companies or
trusts. The Fund is not limited to any particular type of company or to any
geographic region of the world.
[CHART OF PACIFIC CAPITAL INTERNATIONAL STOCK FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
Class A* Class B** Class Y (No load) MSCI EAFE Index
12/2/98 9,479 10,000 10,000 10,000
7/31/99 11,336 11,400 11,990 11,128
Average Annual Total Return as of July 31, 1999
Since
Inception
(12/2/98)
- --------------------------------------------------------------------------------
Class A Shares* 13.36%
- --------------------------------------------------------------------------------
Class B Shares** 14.00%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 19.90%
- --------------------------------------------------------------------------------
* Reflects 5.25% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00%
Past performance is no guarantee of future results. 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.
Class B Shares were not in existence prior to December 20, 1998. Performance
calculated for any period up to and through December 20, 1998, is based upon
the performance of the Class Y Shares, which does not reflect the higher 12b-1
fees or the contingent deferred sales charge (CDSC). Had the CDSC and higher
12b-1 fees been incorporated, total return figures may have been adversely
affected.
The performance of the Pacific Capital International Stock Fund is measured
against the Morgan Stanley Capital International (MSCI) Europe, Australia and
Far East (EAFE) Index, which is unmanaged and is generally representative of
the performance of major stock markets in those regions. 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.
21
<PAGE>
Pacific Capital Value Fund
[PHOTO OF DAVE ZERFOSS APPEARS HERE]
[PHOTO OF SCOTT TAKEMOTO APPEARS HERE]
A team comprised of Dave Zerfoss, Scott Takemoto, and Derwin Osada is
responsible for the management of the Fund. Mr. Zerfoss has 32 years prior
investment experience and currently serves as Vice President and Manager,
Pacific Century Investment Group. Prior to joining Pacific Century Trust, Mr.
Zerfoss held the position of Portfolio Manager with First National Bank of
Chicago. Mr. Zerfoss earned a Bachelor of Arts in business/economics from Ripon
College and is a Chartered Financial Analyst. Mr. Takemoto serves as Vice
President on the Equity Investment Team and has seven years prior experience as
Sector Analyst and Senior Portfolio Manager with Pacific Century Trust. Mr.
Takemoto earned a Bachelor of Business Administration from Santa Clara
University and is a Chartered Financial Analysts. Derwin Osada has five years
investment experience with Pacific Century Trust and currently serves as
Investment Officer and Security Analyst. Mr. Osada earned a Bachelor of Science
from University of Southern California. Together, the Value Fund team has a
combined 44 years of investment management experience.
How did the Fund perform since its inception on 12/3/98 compared to its
benchmark?
For the eight months ended 7/31/99, the Pacific Capital Value Fund returned
8.31%+ (for Class A Shares without sales charge), compared to 15.47% for the
S&P Barra Value Index.
What were the major factors in the equity markets that contributed to the
Fund's performance?
For the period, very few sectors outperformed the aggregate market. The market
rewarded only those who were heavily weighted in capital goods, communication
services, energy and technology. Our underweight position in capital goods and
focus on retailers caused us to underperform the benchmark. On the other hand,
the Fund participated in the market through overweighted exposures in
technology and communication services, with a very aggressive stance in energy
service companies.
We believe that the current run in deep cyclical stocks, due to the bottoming
in external markets, is not sustainable. In addition, we expect that current
valuations will not allow for a continuation of this rally. Though we have seen
confirmation of firming ground abroad, we do not feel that the necessary
structural changes have taken place to sustain current growth trends.
What is your outlook for the Fund?
Domestically, we believe that the combination of attractive valuations and
growth prospects presents an opportunity in the communication services and
technology sectors as well as selected retailers and drug companies. In
addition, we see potential rewards in the increased demand for wider band width
in data communications that is providing traditional telephone companies more
leverage in the economy. We will continue to seek out well-established
companies that we believe exhibit attractive valuations relative to the market
and show the potential for sustainable earnings growth.
+ Class A Shares were not in existence prior to December 8, 1998. Performance
calculated for any period up to and through December 8, 1998, is based upon
the performance of Class Y Shares.
22
<PAGE>
Pacific Capital Value Fund
- --------------------------------------------------------------------------------
Fund Objective:
Seeking long-term growth first and, secondarily, current income, the Value Fund
invests primarily in a diversified portfolio of common stocks of companies
traded in the United States. The Fund focuses on middle- to large-
capitalization companies, specifically those believed to be undervalued
relative to their peers.
[CHART OF PACIFIC CAPITAL VALUE FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A * Class B ** Class Y (No load) Standard & Poor's BARRA Value Index
<S> <C> <C> <C> <C>
12/3/98 9,855 10,000 10,000 10,000
7/31/99 10,395 10,288 10,856 11,547
</TABLE>
Aggregate Total Return as of July 31, 1999
Since
Inception
(12/3/98)
- --------------------------------------------------------------------------------
Class A Shares* 3.95%
- --------------------------------------------------------------------------------
Class B Shares** 2.88%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 8.56%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00%.
Past performance is no guarantee of future results. 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.
Class B Shares were not in existence prior to December 13, 1998. Performance
calculated for any period up to and through December 13, 1998, is based upon
the performance of the Class Y Shares, which does not reflect the higher 12b-1
fees or the contingent deferred sales charge (CDSC). Had the CDSC and higher
12b-1 fees been incorporated, total return figures may have been adversely
affected.
The performance of the Pacific Capital Value Fund is measured against the
Standard & Poor's BARRA Value Index, an unmanaged index comprised of securities
in the Standard & Poor's 500 Stock Index that have a lower-than-average price-
to-book ratio. 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.
23
<PAGE>
Pacific Capital Small Cap Fund+
[PHOTOS OF CATHERINE SOMHEGYI, LARRY SPEIDEL, MARK STUCKELMAN, AND JOHN KANE
CATHERINE SOMHEGYI, LARRY SPEIDEL, MARK STUCKELMAN, AND JOHN KANEAPPEARS HERE]
Sub-advised by Nicholas- Applegate, a team comprised of Catherine Somhegyi,
Larry Speidell, Mark Stuckelman, and John Kane is responsible for the day-to-
day management of the Fund. Ms. Somhegyi, with 14 years investment experience,
is Chief Investment Officer for Global Equity Management and has extensive
experience managing assets for clients. Mr. Speidell has more than 28 years
investment management experience, including prior experience with Batterymarch
Financial Management and Putnam Management Company. Mr. Stuckelman, Portfolio
Manager, has 7 years investment experience, and was previously a senior
quantitative analyst with Wells Fargo Bank's Investment Management Group. Mr.
Kane, with 29 years of economic investment experience, previously directed the
investment group at ARCO Investment Management Company.
How did the Fund perform since its inception on 12/3/98 compared to its
benchmark?
For the eight months ended 7/31/99, the Pacific Capital Small Cap Fund returned
6.64%++ (for Class A Shares without sales charge), compared to 5.99% for the
Russell 2000 Value Index.
Performance was aided principally by stock selection in the technology and
retail consumer sectors.
What major factors in the small-capitalization equity market contributed to the
Fund's performance?
Only the United States responded to concerns about increasing inflationary
pressures, by modestly raising the federal funds rate, as the strength of the
U.S. economy, coupled with signs of improvement in Japan and Continental Europe
continued.
In May and June, small-capitalization stocks continued the rally that began at
the start of the second quarter of 1999, staging a comeback that would reverse
the first-quarter decline. At the same time, small-cap value companies
outperformed growth stocks, reflecting in part the heightening prospects of the
cyclical sectors, such as chemicals and steel. The improving global economic
outlook appears poised to favor value over growth, and valuations within the
value sector remain extremely attractive. In addition, acquisitions remain a
feature of the small-capitalization universe, as companies take advantage of
these attractive valuations.
What is your outlook for the Fund?
Our global outlook for the Fund now favors the value style of the portfolio
over the growth portion. So far, there have been only minor shifts between the
two during the period. Companies that we currently own continue to be
acquisition targets. We believe the Fund is positioned to do well in this type
of environment.
+ Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility than
average.
++ Class A Shares were not in existence prior to December 8, 1999. Performance
calculated for any period up to and through December 8, 1998, is based upon
the performance of Class Y Shares.
24
<PAGE>
Pacific Capital Small Cap Fund
- --------------------------------------------------------------------------------
Fund Objective:
Seeking long-term growth of capital, the Small Cap Fund primarily invests in a
diversified portfolio of common stocks of smaller U.S. companies that the
adviser believes to be exhibiting solid fundamental strength and attractive
valuations.
[CHART OF PACIFIC CAPITAL SMALL CAP FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A* Class B** Class Y (No load) Russell 2000 Value Index
<S> <C> <C> <C> <C>
12/3/98 9,719 10,000 10,000 10,000
7/31/99 10,108 10,113 10,675 10,599
</TABLE>
Aggregate Total Return as of July 31, 1999
Since
Inception
(12/3/98)
- --------------------------------------------------------------------------------
Class A Shares* 1.08%
- --------------------------------------------------------------------------------
Class B Shares** 1.13%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) 6.75%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
** Maximum Contingent Deferred Sales Charge of 5.00%.
Past performance is no guarantee of future results. 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.
Class B Shares were not in existence prior to December 20, 1998. Performance
calculated for any period up to and through December 20, 1998, is based upon
the performance of the Class Y Shares, which does not reflect the higher 12b-1
fees or the contingent deferred sales charge (CDSC). Had the CDSC and higher
12b-1 fees been incorporated, total return figures may have been adversely
affected.
The performance of the Pacific Capital Small Cap Fund is measured against the
Russell 2000 Value Index, an unmanaged index comprised of securities in the
Russell 2000 Index with a less-than-average growth orientation. 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.
25
<PAGE>
Pacific Capital Balanced Fund
[PHOTO OF CLYDE POWERS APPEARS HERE]
[PHOTO OF ROGER KHLOPIN, CFA APPEARS HERE]
A team comprised of Clyde Powers, equity investment manager, and Dave Todani,
fixed-income investment manager, is responsible for the management of the Fund.
Mr. Powers serves as Vice President on the Equity Investment Team at Pacific
Century Trust. Mr. Powers has 27 years of experience managing growth funds and
growth-oriented portfolios for institutional investors and is a Chartered
Financial Analyst. Prior to joining Pacific Century Trust, he held positions at
Amcore Investment Group, Union Bank and Marine Bank Corp. Mr. Powers earned a
Bachelor of Business Administration in Finance from University of Wisconsin and
is a member of the Financial Analysts Federation Institute. Mr. Todani serves
as Vice President on the Taxable Fixed-Income Investment Team at Pacific
Century Trust. Mr. Todani has 14 years prior investment experience in which he
served as a fixed income portfolio manager and treasury officer for Bank of
Hawaii. Mr. Todani earned a Bachelor of Business Administration from University
of Washington and is a Chartered Financial Analyst. Together, the Balanced Fund
team has a combined 40 years of investment management experience.
How did the Fund perform since its inception on June 21, 1999, compared to its
benchmarks?
The Pacific Capital Balanced Fund is split into two positions: an equity
portfolio and a fixed-income portfolio and, therefore, has two benchmarks. From
inception on 6/21/99 to 7/31/99, the Fund returned -1.95+ (for Class A Shares
without sales charge), compared to -0.72% for the S&P 500 Stock Index and -
0.28% for the Lehman Brothers Government/Corporate Bond Index.
Since the Pacific Capital Balanced Fund has a short performance history, to
give you a better perspective, we are also comparing the Fund to the Lipper
Balanced Fund Index/1/, which returned -0.87% for the 12 months ended 7/31/99.
What were the major factors in the equity market that contributed to the Fund's
performance?
The equity portion of the Fund underperformed its benchmark since inception
6/21/99 to 7/31/99. The negative performance of the Fund reflects a substantial
change in market leadership toward value and away from growth. The Fund
currently retains an overweighting in the technology, health care, capital
spending and financial sectors. Recently, financial stocks have been one of the
worst performing sectors, reflecting fears of a Federal Reserve Board
tightening of interest rates. However, as of 7/31/99, the financial sector has
one of the lowest market valuations and is still delivering good earnings
momentum. One of the top-performing sectors for the Fund is technology,
specifically, networking companies that are beginning to benefit from the
increasing demand to link voice, data and video. Corporate profits have
dramatically accelerated and are exceeding analysts' expectations.
What major factors in the fixed-income market contributed to the Fund's
performance?
The Fund's fixed-income performance trailed the Lehman Brothers
Government/Corporate Bond Index, based on the Fund's longer duration of 5.82
years versus 5.43 years for the Fund's benchmark. More importantly, the Fund
has a higher concentration of securities in the intermediate maturity sector of
the yield curve in comparison to the index. Since interest rates increased more
in this segment of the yield curve, the Fund underperformed the benchmark.
What is your outlook for the Fund?
In our opinion, with its low cash position, growth stock orientation and longer
fixed-income duration, the Fund is positioned to do well in an environment of
continued moderate economic growth, low inflation and neutral Federal Reserve
stance.
/1/ The Lipper Balanced Fund Index consists of funds whose primary objective is
to conserve principal by maintaining at all times a balanced portfolio of
both stocks and bonds. Typically, the stock/bond ratio ranges around
60%/40%.
26
<PAGE>
Pacific Capital Balanced Fund
- --------------------------------------------------------------------------------
Fund Objective:
By investing in a diversified portfolio of equity and fixed-income securities,
the Balanced Fund seeks to provide investors current income with a secondary
emphasis on long-term capital appreciation and less fluctuation than a pure
stock mutual fund.
Fixed-Income Portfolio:
Invests in a diversified portfolio of high-quality corporate bonds and
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.
Growth Portfolio:
Invests in a broad range of industries, targeting large and medium-sized
companies, with the flexibility to invest in small-cap companies when
appropriate. The equity management team emphasizes a growth style of investing,
looking for attractively valued companies that it believes will grow faster
than other companies within their respective industries.
[CHART OF PACIFIC CAPITAL BALANCED FUND APPEARS HERE]
[LINE GRAPH APPEARS HERE]
Growth of a $10,000 Investment
<TABLE>
<CAPTION>
Class A* Class B** Class Y (No load) Standard & Poor's Lehman Brothers Government/
500 Stock Index Corporate Bond Index
<S> <C> <C> <C> <C> <C>
6/21/99 9,479 10,000 10,000 10,000 10,000
7/31/99 9,373 9,265 9,806 9,928 9,972
</TABLE>
Aggregate Total Return as of July 31, 1999
Since
Inception
(6/21/99)
- --------------------------------------------------------------------------------
Class A Shares* -5.91%
- --------------------------------------------------------------------------------
Class B Shares** -6.98%
- --------------------------------------------------------------------------------
Class Y Shares (No Load) -1.94%
- --------------------------------------------------------------------------------
* Reflects 4.00% Maximum Front-End Sales Charge.
** Reflects 5.00% Maximum Contingent Deferred Sales Charge.
Past performance is no guarantee of future results. 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 performance of the Pacific Capital Balanced Fund is measured against the
Standard & Poor's 500 Stock Index and the Lehman Brothers Government/Corporate
Bond Index. Both indices are unmanaged. The S&P 500 Stock Index is generally
representative of the domestic stock universe, and the Lehman Brothers
Government/Corporate Bond Index is representative of corporate and U.S.
Government bonds. Neither index reflects the deduction of fees associated with
a mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services.
27
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
<TABLE>
<CAPTION>
Growth Growth and New Asia Diversified
Stock Income Growth Fixed Income
Fund Fund Fund Fund
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $312,103,679;
$138,661,719;
$14,727,654;
$205,740,224)............ $408,067,106 $176,636,827 $18,548,967 $200,427,508
Foreign currency (cost
$503,917)................ -- -- 507,406 --
Interest and dividends
receivable............... 249,925 133,751 19,108 3,526,648
Receivable for capital
shares issued............ 71,842 75,683 5,000 18,000
Receivable from brokers
for investments sold..... 9,032,440 2,511,143 6,290 --
Prepaid expenses and other
assets................... 2,502 1,146 144 1,186
------------ ------------ ----------- ------------
Total Assets............ 417,423,815 179,358,550 19,086,915 203,973,342
------------ ------------ ----------- ------------
LIABILITIES:
Dividends payable......... -- -- -- 122,719
Payable to brokers for
investments purchased.... 7,288,368 3,434,055 393,547 --
Payable for capital shares
redeemed................. 44,516 5,000 3,346 --
Accrued expenses and other
payables:
Investment advisory fees. 293,633 124,837 14,470 78,660
Administration fees...... 7,307 3,129 305 3,588
Distribution fees........ 12,313 9,085 750 2,083
Other.................... 74,073 33,957 30,281 47,696
------------ ------------ ----------- ------------
Total Liabilities....... 7,720,210 3,610,063 442,699 254,746
------------ ------------ ----------- ------------
NET ASSETS:
Capital (no par value).... 232,260,480 115,076,449 20,923,075 209,484,868
Distributions in excess of
net investment income.... -- -- (144,757) (2,428)
Undistributed
(distributions in excess
of) net realized gains
from investment
transactions............. 81,479,698 22,696,930 (5,956,219) (451,128)
Net unrealized
appreciation from foreign
currency transactions.... -- -- 804 --
Net unrealized
appreciation
(depreciation) from
investments.............. 95,963,427 37,975,108 3,821,313 (5,312,716)
------------ ------------ ----------- ------------
Net Assets.............. $409,703,605 $175,748,487 $18,644,216 $203,718,596
============ ============ =========== ============
Net Assets
Class A.................. $ 17,417,249 $ 9,592,557 $ 2,379,492 $ 2,227,733
Class B.................. 9,988,304 8,265,159 311,082 2,078,354
Class Y.................. 382,298,052 157,890,771 15,953,642 199,412,509
------------ ------------ ----------- ------------
Total................... $409,703,605 $175,748,487 $18,644,216 $203,718,596
============ ============ =========== ============
Outstanding units of
beneficial interest
(shares)
Class A.................. 998,168 507,925 225,155 214,436
Class B.................. 578,061 442,859 29,618 200,401
Class Y.................. 21,765,234 8,352,461 1,504,541 19,076,808
------------ ------------ ----------- ------------
Total................... 23,341,463 9,303,245 1,759,314 19,491,645
============ ============ =========== ============
Net Asset Value
Class A--redemption price
per share............... $ 17.45 $ 18.89 $ 10.57 $ 10.39
============ ============ =========== ============
Class A--maximum sales
charge.................. 4.00% 4.00% 5.25% 4.00%
------------ ------------ ----------- ------------
Class A--maximum offering
price per share
(100%/(100%-maximum
sales charge) of net
asset value adjusted to
the nearest cent)....... $ 18.18 $ 19.68 $ 11.16 $ 10.82
============ ============ =========== ============
Class B--offering price
per share*.............. $ 17.28 $ 18.66 $ 10.50 $ 10.37
============ ============ =========== ============
Class Y--offering and
redemption price per
share................... $ 17.56 $ 18.90 $ 10.60 $ 10.45
============ ============ =========== ============
</TABLE>
- --------
*Redemption price per share varies based on length of time shares are held
(Note 4).
See notes to financial statements.
28
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
<TABLE>
<CAPTION>
Short Intermediate Tax-Free
U.S. Treasury U.S. Treasury Tax-Free Short Intermediate
Securities Securities Securities Securities
Fund Fund Fund Fund
------------- ------------------ ------------ ------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $20,489,732;
$33,491,839;
$408,691,999;
$48,417,212)........... $21,365,377 $33,197,034 $426,138,893 $48,083,681
Interest and dividends
receivable............. 518,382 769,230 4,904,627 514,315
Prepaid expenses and
other assets........... 168 181 2,983 392
----------- ----------- ------------ -----------
Total Assets.......... 21,883,927 33,966,445 431,046,503 48,598,388
----------- ----------- ------------ -----------
LIABILITIES:
Dividends payable....... 14,106 18,171 223,016 19,097
Accrued expenses and
other payables:
Investment advisory
fees.................. 6,641 8,712 163,668 16,281
Administration fees.... 388 559 7,561 791
Distribution fees...... 292 127 2,118 170
Other.................. 7,615 12,151 77,341 15,419
----------- ----------- ------------ -----------
Total Liabilities..... 29,042 39,720 473,704 51,758
----------- ----------- ------------ -----------
NET ASSETS:
Capital (no par value).. 24,922,947 34,109,119 411,164,327 48,656,633
Undistributed
(distributions in
excess of) net
investment income...... (14,106) 41 (3) 50
Undistributed
(distributions in
excess of) net realized
gains from investment
transactions........... (3,929,601) 112,370 1,961,581 223,478
Net unrealized
appreciation
(depreciation) from
investments............ 875,645 (294,805) 17,446,894 (333,531)
----------- ----------- ------------ -----------
Net Assets............ $21,854,885 $33,926,725 $430,572,799 $48,546,630
=========== =========== ============ ===========
Net Assets
Class A................ $ 1,368,549 $ 594,630 $ 4,794,768 $ 878,295
Class B................ -- -- 1,756,172 --
Class Y................ 20,486,336 33,332,095 424,021,859 47,668,335
----------- ----------- ------------ -----------
Total................. $21,854,885 $33,926,725 $430,572,799 $48,546,630
=========== =========== ============ ===========
Outstanding units of
beneficial interest
(shares)
Class A................ 148,516 63,095 457,026 88,302
Class B................ -- -- 167,446 --
Class Y................ 2,221,295 3,531,080 40,273,312 4,767,465
----------- ----------- ------------ -----------
Total................. 2,369,811 3,594,175 40,897,784 4,855,767
=========== =========== ============ ===========
Net Asset Value
Class A--redemption
price per share....... $ 9.21 $ 9.42 $ 10.49 $ 9.95
=========== =========== ============ ===========
Class A--maximum sales
charge................ 4.00% 2.25% 4.00% 2.25%
----------- ----------- ------------ -----------
Class A--maximum
offering price per
share (100%/(100%-
maximum sales charge)
of net asset value
adjusted to the
nearest cent)......... $ 9.59 $ 9.64 $ 10.93 $ 10.18
=========== =========== ============ ===========
Class B--offering price
per share*............ -- -- $ 10.49 $ --
=========== =========== ============ ===========
Class Y--offering and
redemption price per
share................. $ 9.22 $ 9.44 $ 10.53 $ 10.00
=========== =========== ============ ===========
</TABLE>
- --------
* Redemption price per share varies based on length of time shares are held
(Note 4).
See notes to financial statements.
29
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 1999
<TABLE>
<CAPTION>
International Stock Value Small Cap Balanced
Fund Fund Fund Fund
------------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $72,983,384;
$72,325,142;
$30,948,190;
$154,331,002).......... $82,710,870 $74,711,253 $31,880,217 $183,562,366
Foreign currency (cost
$134,177).............. 149,144 -- -- --
Interest and dividends
receivable............. 40,022 78,083 31,747 1,472,791
Receivable for capital
shares issued.......... 61,734 4,000 2,000 25,632
Receivable from brokers
for investments sold... 1,576,063 2,661,684 254,317 1,639,221
Prepaid expenses and
other assets........... 56,607 -- -- --
----------- ----------- ----------- ------------
Total Assets.......... 84,594,440 77,455,020 32,168,281 186,700,010
----------- ----------- ----------- ------------
LIABILITIES:
Payable to brokers for
investments purchased.. 2,848,979 1,219,473 131,173 2,094,641
Payable for capital
shares redeemed........ 176 -- -- --
Accrued expenses and
other payables:
Investment advisory
fees.................. 65,501 54,119 27,754 113,680
Administration fees.... 1,415 1,344 561 3,271
Distribution fees...... 71 366 89 127
Other.................. 58,710 65,503 21,475 39,114
----------- ----------- ----------- ------------
Total Liabilities..... 2,974,852 1,340,805 181,052 2,250,833
----------- ----------- ----------- ------------
NET ASSETS:
Capital (no par value).. 70,806,266 73,418,601 29,831,701 155,933,204
Undistributed
(distributions in
excess of) net
investment income...... (764,583) -- 3,711 71,641
Undistributed
(distributions in
excess of) net realized
gains from investment
transactions........... 1,831,149 309,503 1,219,790 (787,032)
Net unrealized
appreciation from
foreign currency
transactions........... 19,270 -- -- --
Net unrealized
appreciation from
investments............ 9,727,486 2,386,111 932,027 29,231,364
----------- ----------- ----------- ------------
Net Assets............ $81,619,588 $76,114,215 $31,987,229 $184,449,177
=========== =========== =========== ============
Net Assets
Class A................ $ 264,650 $ 178,340 $ 93,185 $ 61,730
Class B................ 102,224 472,300 81,894 306,822
Class Y................ 81,252,714 75,463,575 31,812,150 184,080,625
----------- ----------- ----------- ------------
Total................. $81,619,588 $76,114,215 $31,987,229 $184,449,177
=========== =========== =========== ============
Outstanding units of
beneficial interest
(shares)
Class A................ 22,120 17,193 8,740 6,305
Class B................ 8,590 45,692 7,715 31,358
Class Y................ 6,779,621 7,272,920 2,980,800 18,801,560
----------- ----------- ----------- ------------
Total................. 6,810,331 7,335,805 2,997,255 18,839,223
=========== =========== =========== ============
Net Asset Value
Class A-- redemption
price per share....... $ 11.96 $ 10.37 $ 10.66 $ 9.79
=========== =========== =========== ============
Class A-- maximum sales
charge................ 5.25% 4.00% 5.25% 4.00%
----------- ----------- ----------- ------------
Class A-- maximum
offering price per
share (100%/(100%-
maximum sales charge)
of net asset value
adjusted to the
nearest cent)......... $ 12.62 $ 10.80 $ 11.25 $ 10.20
=========== =========== =========== ============
Class B-- offering
price per share*...... $ 11.90 $ 10.34 $ 10.61 $ 9.78
=========== =========== =========== ============
Class Y-- offering and
redemption price per
share................. $ 11.98 $ 10.38 $ 10.67 $ 9.79
=========== =========== =========== ============
</TABLE>
- --------
* Redemption price per share varies based on length of time shares are held
(Note 4).
See notes to financial statements.
30
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
<TABLE>
<CAPTION>
Growth Growth and New Asia Diversified
Stock Income Growth Fixed Income
Fund Fund Fund Fund
------------ ----------- ---------- ------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.......... $ -- $ -- $ 3,071 $ 11,126,149
Dividend income.......... 2,953,069 2,197,262 286,299 107,061
Foreign withholding tax.. (7,023) (1,015) (27,943) --
------------ ----------- ---------- ------------
Total Income........... 2,946,046 2,196,247 261,427 11,233,210
------------ ----------- ---------- ------------
Expenses:
Investment advisory fees. 3,174,082 1,407,043 149,051 1,110,493
Administration fees...... 793,528 351,764 33,123 370,167
Distribution fees-Class
A....................... 118,456 65,235 13,517 16,932
Distribution fees-Class
B....................... 41,693 46,399 1,199 9,618
Accounting fees.......... 117,822 57,307 13,599 63,480
Custodian fees........... 33,339 16,975 86,572 14,288
Transfer agent fees...... 104,982 89,120 45,425 64,056
Trustees' fees and
expenses................ 29,066 12,964 1,223 13,872
Other.................... 134,344 66,282 9,960 66,342
------------ ----------- ---------- ------------
Total expenses before
voluntary fee
reductions............ 4,547,312 2,113,089 353,669 1,729,248
Expenses voluntarily
reduced............... (237,677) (113,843) (17,292) (362,945)
Expenses reimbursed.... -- -- (16,234) --
------------ ----------- ---------- ------------
Net Expenses........... 4,309,635 1,999,246 320,143 1,366,303
------------ ----------- ---------- ------------
Net Investment Income
(Loss).................. (1,363,589) 197,001 (58,716) 9,866,907
------------ ----------- ---------- ------------
Realized/Unrealized Gains
(Losses) from
Investments:
Net realized losses from
foreign currency
transactions............ -- -- (87,320) --
Net realized gains from
investment transactions. 82,863,384 22,746,316 1,126,605 2,246,080
Net change in unrealized
appreciation from
foreign currency
transactions............ -- -- 804 --
Net change in unrealized
appreciation
(depreciation) from
investments............. (15,713,446) 742,543 7,250,165 (11,060,792)
------------ ----------- ---------- ------------
Net realized and
unrealized gains
(losses) from
investments............. 67,149,938 23,488,859 8,290,254 (8,814,712)
------------ ----------- ---------- ------------
Change in net assets
resulting from
operations.............. $ 65,786,349 $23,685,860 $8,231,538 $ 1,052,195
============ =========== ========== ============
</TABLE>
See notes to financial statements.
31
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Year Ended July 31, 1999
<TABLE>
<CAPTION>
Short Intermediate Tax-Free
U.S. Treasury U.S. Treasury Tax-Free Short Intermediate
Securities Securities Securities Securities
Fund Fund Fund Fund
------------- ------------------ ------------ ------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $1,456,293 $1,567,153 $ 22,869,566 $2,155,699
Dividend income......... 16,646 16,965 43,630 16,784
---------- ---------- ------------ ----------
Total Income.......... 1,472,939 1,584,118 22,913,196 2,172,483
---------- ---------- ------------ ----------
Expenses:
Investment advisory
fees................... 138,990 139,329 2,562,677 250,238
Administration fees..... 46,330 56,852 854,231 100,096
Distribution fees-Class
A...................... 9,173 5,213 31,689 5,752
Distribution fees-Class
B...................... -- -- 6,330 --
Accounting fees......... 9,234 10,544 144,718 21,449
Transfer agent fees..... 32,714 33,338 80,534 36,121
Trustees' fees and
expenses............... 1,840 2,152 33,040 3,921
Other................... 14,448 17,893 163,478 30,590
---------- ---------- ------------ ----------
Total expenses before
voluntary fee
reductions........... 252,729 265,321 3,876,697 448,167
Expenses voluntarily
reduced.............. (73,294) (71,741) (832,641) (78,907)
---------- ---------- ------------ ----------
Net Expenses.......... 179,435 193,580 3,044,056 369,260
---------- ---------- ------------ ----------
Net Investment Income... 1,293,504 1,390,538 19,869,140 1,803,223
---------- ---------- ------------ ----------
Realized/Unrealized
Gains (Losses) from
Investments:
Net realized gains from
investment
transactions........... 27,911 204,739 3,256,132 244,995
Net change in unrealized
depreciation from
investments............ (910,963) (790,628) (13,559,504) (772,971)
---------- ---------- ------------ ----------
Net realized and
unrealized gains
(losses) from
investments............ (883,052) (585,889) (10,303,372) (527,976)
---------- ---------- ------------ ----------
Change in net assets
resulting from
operations............. $ 410,452 $ 804,649 $ 9,565,768 $1,275,247
========== ========== ============ ==========
</TABLE>
See notes to financial statements.
32
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Period Ended July 31, 1999
<TABLE>
<CAPTION>
International Stock Value Small Cap Balanced
Fund Fund Fund Fund
------------------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $ 227 $ 20,082 $ -- $ 456,348
Dividend income......... 720,027 646,200 327,670 136,119
Foreign withholding tax. (29,038) (619) -- --
----------- ---------- ---------- -----------
Total Income......... 691,216 665,663 327,670 592,467
----------- ---------- ---------- -----------
Expenses:
Investment advisory
fees................... 446,428 317,642 225,043 170,951
Administration fees..... 81,169 79,411 40,917 42,738
Distribution fees--Class
A...................... 177 443 266 33
Distribution fees--Class
B...................... 160 1,268 270 130
Accounting fees......... 21,774 14,721 9,600 7,781
Custodian fees.......... 110,023 8,284 6,678 2,296
Registration and filing
fees................... 17,026 47,648 8,616 7,626
Transfer agent fees..... 35,055 34,596 34,071 10,004
Trustees' fees and
expenses............... 2,741 2,589 1,622 3,608
Other................... 20,434 20,089 13,546 15,416
----------- ---------- ---------- -----------
Total expenses before
voluntary fee
reductions.......... 734,987 526,691 340,629 260,583
Expenses voluntarily
reduced............. (56,936) (16,177) (28,819) (29,938)
Expenses reimbursed.. (9) -- -- --
----------- ---------- ---------- -----------
Net Expenses......... 678,042 510,514 311,810 230,645
----------- ---------- ---------- -----------
Net Investment Income... 13,174 155,149 15,860 361,822
----------- ---------- ---------- -----------
Realized/Unrealized
Gains (Losses) from
Investments:
Net realized losses from
foreign currency
transactions........... (891,276) -- -- --
Net realized gains
(losses) from
investment
transactions........... 1,940,303 3,531,933 1,219,833 (787,032)
Net change in unrealized
appreciation from
foreign currency
transactions........... 19,270 -- -- --
Net change in unrealized
appreciation
(depreciation) from
investments............ 9,727,486 2,386,111 932,027 (4,066,973)
----------- ---------- ---------- -----------
Net realized and
unrealized gains
(losses) from
investments............ 10,795,783 5,918,044 2,151,860 (4,854,005)
----------- ---------- ---------- -----------
Change in net assets
resulting from
operations............. $10,808,957 $6,073,193 $2,167,720 $(4,492,183)
=========== ========== ========== ===========
</TABLE>
See notes to financial statements.
33
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Growth Stock Fund Growth and Income Fund New Asia Growth Fund
---------------------------- ---------------------------- ----------------------------
For the Year For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended Ended
July 31, 1999 July 31, 1998 July 31, 1999 July 31, 1998 July 31, 1999 July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (1,363,589) $ (281,128) $ 197,001 $ 548,082 $ (58,716) $ 234,004
Net realized losses
from foreign currency
transactions.......... -- -- -- -- (87,320) (234,378)
Net realized gains
(losses) from security
transactions.......... 82,863,384 80,853,461 22,746,316 25,362,538 1,126,605 (7,081,708)
Net change in
unrealized
appreciation from
foreign currency
transactions.......... -- -- -- -- 804 13,266
Net change in
unrealized
appreciation
(depreciation) from
investments........... (15,713,446) (13,215,903) 742,543 (4,884) 7,250,165 (5,104,722)
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 65,786,349 67,356,430 23,685,860 25,905,736 8,231,538 (12,173,538)
------------- ------------ ------------ ------------ ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ -- -- -- (11,210) -- --
In excess of net
investment income..... -- (3,666) (1,866) -- (5,526) --
From net realized gain
on investment......... (2,467,584) (1,563,676) (950,873) (376,436) -- (256,220)
Distributions to Class B
Shareholders:
From net investment
income................ -- -- -- (16) -- --
In excess of net
investment income..... -- -- -- -- (28) --
From net realized gain
on investment......... (378,014) -- (397,782) -- -- --
Distributions to Class Y
Shareholders:
From net investment
income................ -- -- (248,888) (577,057) -- (34,752)
In excess of net
investment income..... -- (207,716) -- -- (84,417) --
From net realized gain
on investment......... (61,334,551) (29,415,345) (19,162,674) (10,964,762) -- (1,580,467)
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions......... (64,180,149) (31,190,403) (20,762,083) (11,929,481) (89,971) (1,871,439)
------------- ------------ ------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 79,661,804 61,390,872 60,203,498 61,397,118 5,848,670 10,910,662
Proceeds from shares
issued in conjunction
with common trust fund
conversion............ -- 120,286,123 -- -- -- --
Dividends reinvested... 56,213,864 30,004,614 15,438,529 11,214,838 30,017 1,781,940
Cost of shares
redeemed.............. (118,131,204) (65,643,901) (76,436,728) (40,516,157) (11,625,483) (4,232,779)
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions.......... 17,744,464 146,037,708 (794,701) 32,095,799 (5,746,796) 8,459,823
------------- ------------ ------------ ------------ ------------ ------------
Change in net assets... 19,350,664 182,203,735 2,129,076 46,072,054 2,394,771 (5,585,154)
Net Assets:
Beginning of period.... 390,352,941 208,149,206 173,619,411 127,547,357 16,249,445 21,834,599
------------- ------------ ------------ ------------ ------------ ------------
End of period.......... $ 409,703,605 $390,352,941 $175,748,487 $173,619,411 $ 18,644,216 $ 16,249,445
============= ============ ============ ============ ============ ============
Undistributed
(distributions in
excess of) net
investment income...... $ -- $ (2,939) -- $ 4,407 $ (144,757) $ (99,662)
------------- ------------ ------------ ------------ ------------ ------------
Share Transactions:
Issued................. 4,701,265 3,654,051 3,342,327 3,473,316 754,122 1,257,574
Shares issued in
conjunction with
common trust fund
conversion............ -- 8,205,056 -- -- -- --
Reinvested............. 3,615,888 1,991,083 888,924 692,899 4,058 202,979
Redeemed............... (6,900,492) (3,860,118) (4,190,172) (2,291,282) (1,549,662) (476,926)
------------- ------------ ------------ ------------ ------------ ------------
Change in Shares........ 1,416,661 9,990,072 41,079 1,874,933 (791,482) 983,627
============= ============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
34
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Short Intermediate
Diversified Fixed U.S. Treasury U.S. Treasury
Income Fund Securities Fund Securities Fund
---------------------------- --------------------------- ----------------------------
For the Year For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended Ended
July 31, 1999 July 31, 1998 July 31, 1999 July 31, 1998 July 31, 1999 July 31, 1998
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 9,866,907 $ 8,386,557 $ 1,293,504 $ 1,303,898 $ 1,390,538 $ 1,603,671
Net realized gains from
investment
transactions.......... 2,246,080 1,495,447 27,911 144,578 204,739 164,505
Net change in
unrealized
appreciation
(depreciation) from
investments........... (11,060,792) 1,593,062 (910,963) 311,969 (790,628) 82,834
------------ ------------ ----------- ----------- ------------ ------------
Change in net assets
resulting from
operations............. 1,052,195 11,475,066 410,452 1,760,445 804,649 1,851,010
------------ ------------ ----------- ----------- ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ (114,707) (73,933) (62,892) (57,773) (32,280) (31,037)
In excess of net
investment income..... -- -- (2,745) -- -- --
From net realized gain
on investment......... (20,918) -- -- -- (3,262) --
In excess of net
realized gain on
investment
transactions.......... (552) -- -- -- -- --
Distributions to Class B
Shareholders:
From net investment
income................ (42,422) (1,753) -- -- -- --
From net realized gain
on investment......... (3,067) -- -- -- -- --
In excess of net
realized gain on
investment
transactions.......... (2,179) -- -- -- -- --
Distributions to Class Y
Shareholders:
From net investment
income................ (9,709,748) (8,310,871) (1,214,297) (1,246,125) (1,358,257) (1,572,634)
In excess of net
investment income..... -- -- (13,570) -- -- --
From net realized gain
on investment......... (1,156,463) -- -- -- (102,224) --
In excess of net
realized gain on
investment
transactions.......... (450,857) -- -- -- -- --
------------ ------------ ----------- ----------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (11,500,913) (8,386,557) (1,293,504) (1,303,898) (1,496,023) (1,603,671)
------------ ------------ ----------- ----------- ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 106,729,331 49,530,803 1,384,459 543,006 68,454,032 7,264,845
Proceeds from shares
issued in conjunction
with common trust fund
conversion............ -- 8,914,400 -- -- -- 9,573,342
Dividends reinvested... 1,600,063 133,327 1,241,124 1,250,973 200,292 62,108
Cost of shares
redeemed.............. (54,804,327) (34,710,871) (3,155,875) (3,901,485) (59,533,349) (18,990,957)
------------ ------------ ----------- ----------- ------------ ------------
Change in net assets
from share
transactions........... 53,525,067 23,867,659 (530,292) (2,107,506) 9,120,975 (2,090,662)
------------ ------------ ----------- ----------- ------------ ------------
Change in net assets.... 43,076,349 26,956,168 (1,413,344) (1,650,959) 8,429,601 (1,843,323)
Net Assets:
Beginning of period.... 160,642,247 133,686,079 23,268,229 24,919,188 25,497,124 27,340,447
------------ ------------ ----------- ----------- ------------ ------------
End of period.......... $203,718,596 $160,642,247 $21,854,885 $23,268,229 $ 33,926,725 $ 25,497,124
============ ============ =========== =========== ============ ============
Undistributed
(distributions in
excess of) net
investment income...... $ (2,428) -- $ (14,106) $ (16,315) $ 41 $ 40
------------ ------------ ----------- ----------- ------------ ------------
Share Transactions:
Issued................. 9,706,969 4,558,111 142,494 56,958 7,100,890 755,987
Shares issued in
conjunction with
common trust fund
conversion............ -- 817,085 -- -- -- 995,150
Reinvested............. 142,571 12,291 128,813 132,081 20,441 6,482
Redeemed............... (4,964,716) (3,179,936) (328,910) (418,790) (6,167,907) (1,975,578)
------------ ------------ ----------- ----------- ------------ ------------
Change in Shares........ 4,884,824 2,207,551 (57,603) (229,751) 953,424 (217,959)
============ ============ =========== =========== ============ ============
</TABLE>
See notes to financial statements.
35
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Tax-Free Short Intermediate
Tax-Free Securities Fund Securities Fund
---------------------------- ----------------------------
For the Year For the Year For the Year For the Year
Ended Ended Ended Ended
July 31, 1999 July 31, 1998 July 31, 1999 July 31, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 19,869,140 $ 17,682,859 $ 1,803,223 $ 1,788,844
Net realized gains from
investment
transactions.......... 3,256,132 2,987,336 244,995 244,498
Net change in
unrealized
depreciation from
investments........... (13,559,504) (459,271) (772,971) (310,212)
------------ ------------ ------------ -----------
Change in net assets
from operations........ 9,565,768 20,210,924 1,275,247 1,723,130
------------ ------------ ------------ -----------
Distributions to Class A
Shareholders:
From net investment
income................ (186,445) (109,666) (25,726) (20,127)
From net realized gain
on investment......... (37,066) (12,546) (4,014) (3,439)
Distributions to Class B
Shareholders:
From net investment
income................ (23,437) (2,202) -- --
From net realized gain
on investment......... (4,359) -- -- --
Distributions to Class Y
Shareholders:
From net investment
income................ (19,659,258) (17,570,991) (1,777,447) (1,768,717)
In excess of net
investment income..... (3) -- -- --
From net realized gain
on investment......... (3,625,235) (1,612,136) (217,551) (214,455)
------------ ------------ ------------ -----------
Change in net assets
from shareholder
distributions.......... (23,535,803) (19,307,541) (2,024,738) (2,006,738)
------------ ------------ ------------ -----------
Capital Transactions:
Proceeds from shares
issued................ 65,647,809 47,935,386 16,829,321 11,343,317
Proceeds from shares
issued in conjunction
with common trust fund
conversion............ -- 104,600,137 -- 12,804,860
Dividends reinvested... 3,775,212 1,683,385 253,126 233,743
Cost of shares
redeemed.............. (44,749,973) (34,561,801) (20,449,042) (9,569,958)
------------ ------------ ------------ -----------
Change in net assets
from share
transactions........... 24,673,048 119,657,107 (3,366,595) 14,811,962
------------ ------------ ------------ -----------
Change in net assets.... 10,703,013 120,560,490 (4,116,086) 14,528,354
Net Assets:
Beginning of period.... 419,869,786 299,309,296 52,662,716 38,134,362
------------ ------------ ------------ -----------
End of period.......... $430,572,799 $419,869,786 $ 48,546,630 $52,662,716
============ ============ ============ ===========
Undistributed
(distributions in
excess of) net
investment income...... $ (3) -- $ 50 --
------------ ------------ ------------ -----------
Share Transactions:
Issued................. 6,052,527 4,423,856 1,649,904 1,113,577
Shares issued in
conjunction with
common trust fund
conversion............ -- 9,658,369 -- 1,259,082
Reinvested............. 344,359 156,129 24,744 23,054
Redeemed............... (4,103,936) (3,191,771) (2,008,506) (941,882)
------------ ------------ ------------ -----------
Change in Shares........ 2,292,950 11,046,583 (333,858) 1,453,831
============ ============ ============ ===========
</TABLE>
See notes to financial statements.
36
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
International Value
Stock Fund Fund Small Cap Fund Balanced Fund
---------------- ---------------- ---------------- ----------------
For the Period For the Period For the Period For the Period
Ended Ended Ended Ended
July 31, 1999(a) July 31, 1999(b) July 31, 1999(b) July 31, 1999(c)
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 13,174 $ 155,149 $ 15,860 $ 361,822
Net realized losses
from foreign currency
transactions.......... (891,276) -- -- --
Net realized gains
(losses) from
investment
transactions.......... 1,940,303 3,531,933 1,219,833 (787,032)
Net change in
unrealized
appreciation from
foreign currency
transactions.......... 19,270 -- -- --
Net change in
unrealized
appreciation
(depreciation) from
investments........... 9,727,486 2,386,111 932,027 (4,066,973)
------------ ------------ ------------ ------------
Change in net assets
from operations........ 10,808,957 6,073,193 2,167,720 (4,492,183)
------------ ------------ ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ -- -- -- (63)
In excess of net
investment income..... -- (112) (4) (28)
From net realized gain
on investment......... -- (6,934) -- --
Distributions to Class B
Shareholders:
From net investment
income................ -- -- -- (105)
In excess of net
investment income..... -- (55) (1) (121)
From net realized gain
on investment......... -- (15,151) -- --
In excess of net
realized gain on
investment
transactions.......... -- (2,874) -- --
Distributions to Class Y
Shareholders:
From net investment
income................ -- (156,027) (15,898) (297,630)
In excess of net
investment income..... -- (26,982) -- --
From net realized gain
on investment......... -- (3,172,871) -- --
------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... -- (3,381,006) (15,903) (297,947)
------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 90,175,926 86,349,838 46,913,248 464,446
Proceeds from shares
issued in conjunction
with common trust
conversion............ -- -- -- 189,111,744
Dividends reinvested... -- 1,711,580 34 317
Cost of shares
redeemed.............. (19,365,295) (14,639,390) (17,077,870) (337,200)
------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 70,810,631 73,422,028 29,835,412 189,239,307
------------ ------------ ------------ ------------
Change in net assets.... 81,619,588 76,114,215 31,987,229 184,449,177
Net Assets:
Beginning of period.... -- -- -- --
------------ ------------ ------------ ------------
End of period.......... $ 81,619,588 $ 76,114,215 $ 31,987,229 $184,449,177
============ ============ ============ ============
Undistributed
(distributions in
excess of) net
investment income...... $ (764,583) -- 3,711 $ 71,641
------------ ------------ ------------ ------------
Share Transactions:
Issued................. 8,628,110 8,571,030 4,784,633 45,945
Shares issued in
conjunction with
common trust fund
conversion............ 18,826,632
Reinvested............. -- 161,323 3 32
Redeemed............... (1,817,779) (1,396,548) (1,787,381) (33,386)
------------ ------------ ------------ ------------
Change in Shares........ 6,810,331 7,335,805 2,997,255 18,839,223
============ ============ ============ ============
</TABLE>
- --------
(a) For the period December 2, 1998 (commencement of operations) to July 31,
1999.
(b) For the period December 3, 1998 (commencement of operations) to July 31,
1999.
(c) For the period June 21, 1999 (commencement of operations) to July 31, 1999.
See notes to financial statements.
37
<PAGE>
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks (96.7%)
Beverages (2.0%)
205,444 PepsiCo, Inc. ....................................... $ 8,037,997
------------
Business Equipment & Services (1.8%)
56,630 Computer Sciences Corp. (b).......................... 3,645,556
139,155 Paychex, Inc. (b).................................... 3,905,037
------------
7,550,593
------------
Commercial Services (1.0%)
118,680 Sothebys Holdings, Inc., Class A..................... 3,916,440
------------
Computers & Peripherals (17.9%)
70,560 Apple Computer, Inc. (b)............................. 3,929,310
286,472 Cisco Systems, Inc. (b).............................. 17,797,072
117,250 Dell Computer Corp. (b).............................. 4,792,594
73,560 EMC Corp. (b)........................................ 4,454,978
58,280 International Business Machines Corp. ............... 7,325,068
46,510 Nortel Networks Corp. ............................... 4,121,949
92,380 Safeguard Scientifics, Inc. (b)...................... 5,912,320
64,430 Shared Medical Systems Corp. ........................ 3,857,746
221,656 Sun Microsystems, Inc. (b)........................... 15,044,900
118,000 Veritas Software Corp. (b)........................... 6,622,750
------------
73,858,687
------------
Consumer Durable (1.1%)
78,440 Harley-Davidson, Inc. ............................... 4,343,615
------------
Consumer Goods & Services (2.3%)
82,530 Clorox Co. .......................................... 9,243,360
------------
Diversified Operations (2.7%)
115,250 Tyco International Ltd. ............................. 11,258,484
------------
Electrical Equipment (5.7%)
148,181 General Electric Co. ................................ 16,151,729
80,500 JDS Uniphase Corp. (b)............................... 7,275,188
------------
23,426,917
------------
Financial Services (6.1%)
172,980 CitiGroup Inc. ...................................... 7,708,421
104,220 Morgan Stanley, Dean Witter & Co. ................... 9,392,828
125,560 T. Rowe Price Associates, Inc. ...................... 4,394,600
83,260 The Charles Schwab Corp. ............................ 3,668,644
------------
25,164,493
------------
Insurance (1.4%)
198,050 Conseco, Inc. ....................................... 5,706,316
------------
Leisure--Recreation, Gaming (1.1%)
100,930 Carnival Corp. ...................................... 4,686,937
------------
Medical--Biotechnology (1.9%)
59,050 Amgen, Inc. (b)...................................... 4,539,469
158,310 Biomatrix, Inc. (b).................................. 3,245,355
------------
7,784,824
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Pharmaceuticals (16.3%)
81,600 Biogen, Inc. (b)..................................... $ 5,615,100
67,180 Bristol Myers Squibb Co. ............................ 4,467,470
148,100 Elan Corp., PLC, ADR (b)............................. 4,304,156
69,712 Lilly (Eli) & Co. ................................... 4,574,850
72,580 Merck & Co., Inc. ................................... 4,912,759
426,714 Pfizer, Inc. ........................................ 14,481,606
141,381 Pharmacia & Upjohn, Inc. ............................ 7,608,065
298,660 Schering-Plough Corp. ............................... 14,634,340
91,680 Warner Lambert Co. .................................. 6,050,880
------------
66,649,226
------------
Retail (8.1%)
138,520 Bed Bath & Beyond, Inc. ............................. 4,701,023
220,622 Dollar General Corp. ................................ 5,832,694
123,697 Gap, Inc. ........................................... 5,782,858
83,226 Kohl's Corp. (b)..................................... 6,330,378
245,240 Wal-Mart Stores, Inc. ............................... 10,361,389
------------
33,008,342
------------
Retail-General Merchandise (2.0%)
107,970 Costco Companies, Inc. .............................. 8,070,758
------------
Semiconductors (3.3%)
92,670 Applied Materials, Inc. (b).......................... 6,666,448
109,940 Vitesse Semiconductor Corp. (b)...................... 7,022,418
------------
13,688,866
------------
Software & Computer Services (10.0%)
104,816 America Online, Inc. (b)............................. 9,970,622
110,442 Compuware Corp. (b).................................. 3,064,766
213,066 Microsoft Corp. (b).................................. 18,283,725
123,030 Peoplesoft, Inc. (b)................................. 1,676,284
133,510 Siebel Systems, Inc. (b)............................. 7,893,779
------------
40,889,176
------------
Telecommunications--Services and Equipment (5.5%)
175,270 Lucent Technologies, Inc. ........................... 11,403,504
89,540 Nokia Corp.--ADR..................................... 7,616,496
56,300 Tellabs, Inc. ....................................... 3,465,969
------------
22,485,969
------------
Utilities--Telecommunications (6.5%)
217,110 AT&T Corp. .......................................... 11,276,150
175,026 CenturyTel, Inc. .................................... 7,482,362
93,540 MCI Worldcom, Inc. (b)............................... 7,717,050
------------
26,475,562
------------
Total Common Stocks (Cost $300,283,135) 396,246,562
------------
</TABLE>
Continued
38
<PAGE>
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Investment Company (2.9%)
11,820,544 One Group Prime Money Market Fund (Class I Shares)... $ 11,820,544
------------
Total Investment Company (Cost $11,820,544) 11,820,544
------------
Total Investments
(Cost $312,103,679) (a)--99.6% 408,067,106
Other assets in excess of liabilities--0.4% 1,636,499
------------
Total Net Assets--100.0% $409,703,605
============
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$80,005. Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation.......... $105,187,892
Unrealized
depreciation.......... (9,304,470)
------------
Net unrealized
appreciation.......... $ 95,883,422
============
</TABLE>
(b) Represents non-income producing security.
ADR--American Depository Receipts
PLC--Public Limited Company
See notes to financial statements.
39
<PAGE>
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (97.6%)
Aerospace/Defense (2.1%)
88,440 B. F. Goodrich Co. ................................... $ 3,670,260
------------
Automotive (1.1%)
40,420 Ford Motor Co. ....................................... 1,965,423
------------
Banks (7.3%)
43,389 Bank Of America Corp. ................................ 2,879,945
62,030 Bank One Corp. ....................................... 3,384,512
49,970 Chase Manhattan Corp. ................................ 3,841,444
85,105 U.S. Bancorp.......................................... 2,648,893
------------
12,754,794
------------
Beverages (1.5%)
68,475 PepsiCo, Inc. ........................................ 2,679,084
------------
Business Equipment & Services (3.2%)
45,690 Deluxe Corp. ......................................... 1,713,375
71,250 Paychex, Inc. (b)..................................... 1,999,453
28,860 Pitney Bowes, Inc. ................................... 1,836,218
------------
5,549,046
------------
Chemicals (0.8%)
44,100 Air Products & Chemical, Inc. ........................ 1,474,594
------------
Computers & Peripherals (12.4%)
138,200 Cisco Systems, Inc. (b)............................... 8,585,674
25,370 Dell Computer Corp. (b)............................... 1,036,999
89,840 EMC Corp. (b)......................................... 5,440,935
36,010 Nortel Networks Corp. ................................ 3,191,386
54,230 Sun Microsystems, Inc. (b)............................ 3,680,861
------------
21,935,855
------------
Consumer Goods & Services (1.7%)
10,040 Clorox Co. ........................................... 1,124,480
43,720 Newell Rubbermaid Inc. ............................... 1,890,890
------------
3,015,370
------------
Diversified Operations (2.2%)
39,210 Tyco International Ltd. .............................. 3,830,327
------------
Electrical Equipment (3.0%)
32,960 General Electric Co. ................................. 3,592,640
27,360 Solectron Corp. (b)................................... 1,763,010
------------
5,355,650
------------
Electronic Components/Instruments (3.3%)
52,300 American Power Conversion Corp. (b)................... 1,085,225
24,210 Sanmina Corp. (b)..................................... 1,581,216
21,670 Texas Instruments, Inc. .............................. 3,120,480
------------
5,786,921
------------
Energy (0.9%)
39,540 The Williams Cos., Inc. .............................. 1,663,151
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ---------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Financial Services (5.7%)
93,995 Alliance Capital Management................... $ 2,878,596
17,170 Capital One Financial Corporation............. 796,259
34,810 Freddie Mac................................... 1,997,224
17,580 Morgan Stanley, Dean Witter & Co. ............ 1,584,398
78,990 T. Rowe Price Associates, Inc. ............... 2,764,650
------------
10,021,127
------------
Health Care (1.0%)
36,140 McKesson HBOC Inc. ........................... 1,122,598
79,028 Total Renal Care Holdings, Inc. (b)........... 661,860
------------
1,784,458
------------
Insurance (3.2%)
39,910 Marsh & McLennan Co., Inc. ................... 3,033,160
48,340 Xl Capital Ltd. .............................. 2,537,850
------------
5,571,010
------------
Leisure--Recreation, Gaming (1.2%)
46,610 Carnival Corp. ............................... 2,164,452
------------
Medical--Biotechnology (2.2%)
29,270 Amgen, Inc. (b)............................... 2,250,132
28,890 Biomatrix, Inc. (b)........................... 592,245
17,860 PE Corp--PE Biosystems Group.................. 1,001,276
------------
3,843,653
------------
Multi-Industry (1.2%)
31,210 Corning, Inc. ................................ 2,184,700
------------
Oil & Gas--Exploration & Production Services (2.8%)
35,980 Exxon Corp. .................................. 2,855,912
86,550 Ultramar Diamond Shamrock Corp. .............. 2,044,744
------------
4,900,656
------------
Pharmaceuticals (8.1%)
59,590 Elan Corp., PLC, ADR (b)...................... 1,731,834
32,350 Lilly (Eli) & Co. ............................ 2,122,969
83,700 Pfizer, Inc. ................................. 2,840,569
30,560 Pharmacia & Upjohn............................ 1,644,510
56,750 Schering-Plough Corp. ........................ 2,780,750
46,075 Warner Lambert Co. ........................... 3,040,950
------------
14,161,582
------------
Publishing (1.7%)
58,890 McGraw-Hill Cos., Inc. ....................... 2,996,029
------------
Real Estate (0.8%)
70,000 Healthcare Realty Trust, Inc. ................ 1,470,000
------------
Restaurants (0.7%)
51,448 Starbucks Corp. (b)........................... 1,196,166
------------
</TABLE>
Continued
40
<PAGE>
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Retail (8.9%)
71,675 Dollar General Corp. .................................. $ 1,894,908
73,530 Gap, Inc. ............................................. 3,437,527
41,330 Kohl's Corp. (b)....................................... 3,143,662
55,720 Lowe's Co., Inc. ...................................... 2,939,229
78,350 Office Depot, Inc. .................................... 1,469,063
27,430 Wal-Mart Stores, Inc. ................................. 1,158,918
55,560 Walgreen Co. .......................................... 1,573,043
------------
15,616,350
------------
Retail--Food Chain (0.6%)
22,200 Whole Foods Market, Inc. (b)........................... 976,800
------------
Savings & Loans (1.4%)
70,243 Washington Mutual, Inc. ............................... 2,410,213
------------
Semiconductors (1.2%)
29,720 Applied Materials, Inc. (b)............................ 2,137,983
------------
Software & Computer Services (5.2%)
41,270 BMC Software, Inc. (b)................................. 2,223,421
90,860 Compuware Corp. (b).................................... 2,521,365
38,010 Microsoft Corp. (b).................................... 3,261,733
42,030 Sterling Commerce, Inc. (b)............................ 1,103,288
------------
9,109,807
------------
Telecommunications--Services and Equipment (2.6%)
42,990 Lucent Technologies, Inc. ............................. 2,797,036
29,000 Tellabs, Inc. ......................................... 1,785,313
------------
4,582,349
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Transportation (2.6%)
56,640 Comair Holdings, Inc. ................................ $ 1,384,140
56,300 Kansas City Southern Industries, Inc. ................ 3,110,575
------------
4,494,715
------------
Utilities--Telecommunications (7.0%)
43,220 ALLTEL Corp. ......................................... 3,103,736
65,815 AT&T Corp. ........................................... 3,418,267
34,095 CenturyTel Inc. ...................................... 1,457,561
52,600 MCI Worldcom, Inc. (b)................................ 4,339,500
------------
12,319,064
------------
Total Common Stocks (Cost $133,646,481) 171,621,589
------------
Investment Company (2.9%)
5,015,238 One Group Prime Money Market Fund (Class I Shares).... 5,015,238
------------
Total Investment Company (Cost $5,015,238) 5,015,238
------------
Total Investments (Cost $138,661,719) (a)--100.5% 176,636,827
Liabilities in excess of other assets--(0.5)% (888,340)
------------
Total Net Assets--100.0% $175,748,487
============
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$576,047. Cost for federal income tax purposes differs from market value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $42,722,093
Unrealized depreciation. (5,323,032)
-----------
Net unrealized
appreciation........... $37,399,061
===========
</TABLE>
(b) Non-income producing security
ADR--American Depository Receipt
PLC--Public Limited Company
See notes to financial statements.
41
<PAGE>
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (86.1%)
China (1.6%)
Steel (1.6%)
435,750 China Steel Corp. ..................................... $ 296,419
-----------
Hong Kong (28.0%)
Banks (4.7%)
92,000 Dao Heng Bank Group Ltd. .............................. 468,209
34,800 HSBC Holdings PLC...................................... 410,257
-----------
878,466
-----------
Computer Software (0.2%)
32,000 Legend Holdings Ltd. .................................. 30,097
-----------
Diversified--Conglomerates, Holding
Companies (5.4%)
74,000 Citic Pacific Ltd. .................................... 206,894
85,000 Hutchison Whampoa Ltd. ................................ 807,674
-----------
1,014,568
-----------
Electrical & Electronic (1.9%)
85,000 Johnson Electric Holdings Ltd. ........................ 352,639
-----------
Real Estate (7.2%)
40,000 Cheung Kong Holdings Ltd. ............................. 350,449
34,000 Henderson Land Development Co. Ltd. ................... 192,309
132,000 New World Development Co. Ltd. ........................ 348,645
54,000 Sun Hung Kai Properties Ltd. (b)....................... 466,147
-----------
1,357,550
-----------
Telecommunications (6.0%)
80,000 Asia Satellite Telecommunications Holdings Ltd. ....... 186,562
184,000 China Telecom Ltd. (b)................................. 549,999
117,000 SmarTone Telecommunications Holdings Ltd. ............. 389,674
-----------
1,126,235
-----------
Television (1.5%)
60,000 Television Broadcasts Ltd. ............................ 277,524
-----------
Textile/Apparel (1.1%)
74,000 Li & Fung Ltd. ........................................ 206,894
-----------
5,243,973
-----------
Indonesia (1.5%)
Food Products (0.4%)
69,000 PT Indofood Sukses Makmur Tbk.......................... 83,761
-----------
Retail (0.1%)
289,500 PT Sona Topas Tourism Industry (b)..................... 25,405
-----------
Utilities--Telecommunications (1.0%)
100,000 PT Indosat (Persero) Tbk............................... 166,733
-----------
275,899
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Malaysia (1.8%)
Banks (0.3%)
27,000 Commerce Asset-Holding Berhad.......................... $ 57,585
-----------
Construction (0.8%)
210,000 Metacorp Berhad........................................ 158,251
-----------
Leisure--Recreation, Gaming (0.7%)
59,000 Tanjong PLC............................................ 123,736
-----------
339,572
-----------
Philippines (2.9%)
Banks (1.0%)
79,400 Equitable Banking Corp. ............................... 186,647
-----------
Real Estate (1.2%)
752,600 Ayala Land Inc. ....................................... 215,034
-----------
Telecommunications (0.7%)
4,800 Philippine Long Distance Telephone Co. ................ 138,394
-----------
540,075
-----------
Singapore (15.0%)
Automotive (1.3%)
45,000 Cycle & Carriage Ltd. ................................. 245,950
-----------
Defense Engineering (0.9%)
136,916 Singapore Technologies Engineering Ltd. ............... 169,999
-----------
Electrical & Electronic (4.3%)
165,000 JIT Holdings Ltd. ..................................... 339,161
55,000 Venture Manufacturing Ltd. ............................ 457,443
-----------
796,604
-----------
Financial Services (1.9%)
256,900 First Capital Corp. Ltd. .............................. 355,603
-----------
Manufacturing--Consumer Goods (2.2%)
386,000 Omni Industries Ltd. .................................. 408,181
-----------
Real Estate (1.3%)
65,000 Pacific Century Regional Developments Ltd. (b)......... 237,484
-----------
Telecommunication Equipment (1.7%)
66,000 Datacraft Asia Ltd. ................................... 314,160
-----------
2,527,981
-----------
South Korea (19.0%)
Automotive (1.0%)
15,000 KIA Motors Corp. (b)................................... 178,236
-----------
Banks (2.0%)
24,370 Kookmin Bank........................................... 368,548
-----------
</TABLE>
Continued
42
<PAGE>
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued
Beverages (0.7%)
4,000 Hite Brewery Co. (b).................................. $ 129,626
-----------
Construction (2.0%)
28,200 Hyundai Industrial Development & Construction Co.
Ltd. ................................................ 376,090
-----------
Electrical & Electronic (5.5%)
7,400 LG Electronics........................................ 354,793
4,333 Samsung Electronics................................... 680,483
-----------
1,035,276
-----------
Electricity--Generation (0.6%)
5,900 Korea Electric Power Corp. ........................... 105,094
-----------
Steel (2.2%)
11,700 Pohang Iron & Steel Co. Ltd.--ADR..................... 415,350
-----------
Telecommunications (2.0%)
5,220 Korea Telecom Corp. .................................. 366,517
-----------
Utilities--Electric (2.2%)
11,540 Korea Electric Power Corp. ........................... 411,368
-----------
Utilities--Telecommunications (0.8%)
4,100 Korea Telecom Corp.--ADR (b).......................... 150,931
-----------
3,537,036
-----------
Taiwan (12.1%)
Banks (3.2%)
492,800 United World Chinese Commercial Bank (b).............. 604,634
-----------
Computers & Peripherals (4.7%)
54,600 Asustek Computer, Inc. ............................... 581,717
149,600 D-Link Corp. ......................................... 278,810
-----------
860,527
-----------
Electrical & Electronic (2.5%)
135,300 Taiwan Semiconductor Manufacturing Co. (b)............ 474,899
-----------
Textile/Apparel (1.7%)
242,000 Far Eastern Textile Ltd. ............................. 310,449
-----------
2,250,509
-----------
Thailand (5.6%)
Banks (1.2%)
72,200 Bangkok Bank Public Co. Ltd. (b)...................... 227,057
-----------
Chemicals (0.8%)
317,000 Thai Petrochemical Industry Public Co. Ltd. (b)....... 149,111
-----------
Entertainment--Television (1.0%)
33,100 BEC World Public Co. Ltd. ............................ 195,732
-----------
Financial Services (0.2%)
68,000 National Finance Public Co. Ltd (b)................... 35,184
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Real Estate (0.5%)
71,900 Land & House Public Co. Ltd. (b)....................... $ 100,495
-----------
Telecommunications (1.9%)
27,500 Advanced Info Service Public Co. Ltd. (b).............. 332,627
-----------
1,040,206
-----------
Total Common Stocks (Cost $12,460,384) 16,051,670
-----------
Preferred Stock (0.9%)
Thailand (0.9%)
Financial Services (0.9%)
134,200 Siam Commercial Bank Public Co. Ltd. (b)............... 165,929
-----------
Total Preferred Stock (Cost $128,969) 165,929
-----------
Rights (0.0%)
Taiwan (0.0%)
Computers (0.0%)
57 Asustek Computer, Inc. ................................ 253
-----------
Total Rights (Cost $0) 253
-----------
Warrants (4.3%)
Hong Kong (0.0%)
Construction (0.0%)
225,000 Wai Kee Holdings Ltd., 6/30/00......................... 9,277
-----------
Philippines (0.5%)
Restaurant (0.5%)
208,000 Jollibee Foods Corp., 3/24/03.......................... 99,951
-----------
Singapore (3.6%)
Airlines (2.2%)
450,000 Singapore Airlines Ltd., 4/9/02........................ 401,004
-----------
Foreign Banks (1.4%)
350,000 Oversea-Chinese Banking Corp. Ltd. (b)................. 259,911
-----------
Thailand (0.2%)
Financial Services (0.2%)
66,000 Siam Commercial Bank Public Co. Ltd., 5/10/02.......... 33,263
-----------
Total Warrants (Cost $610,592) 803,406
-----------
Cash Sweep (8.2%)
United States (8.2%)
1,527,709 Union Bank of California............................... $ 1,527,709
-----------
Total Cash Sweep (Cost $1,527,709)............................... 1,527,709
-----------
Total Investments (Cost $14,727,654)
(a)--99.5% 18,548,967
Other assets in excess of liabilities--0.5% 95,249
-----------
Total Net Assets--100.0% $18,644,216
===========
</TABLE>
Continued
43
<PAGE>
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
- --------
Forward Currency Contracts:
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Market Appreciation/
Currency Date Value Value (Depreciation)
-------- -------- -------- ------ --------------
<S> <C> <C> <C> <C>
Short Contracts:
Indonesia Rupee..................... 8/2/99 ( 3,912) (5,207) (1,295)
8/4/99 (1,055) (1,083) (28)
8/5/99 ( 4,033) (5,206) (1,173)
------- ------ ------
Total Short Contracts............... 9,000 11,496 (2,496)
------- ------ ------
</TABLE>
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$269,476. Cost for federal income tax purposes differs from market value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation.......... $4,232,432
Unrealized
depreciation.......... (613,598)
----------
Net unrealized
appreciation.......... $3,618,834
==========
</TABLE>
(b) Non-income producing securities.
ADR--American Depository Receipt
PLC--Public Limited Company
See notes to financial statements.
44
<PAGE>
PACIFIC CAPITAL FUNDS
Diversified Fixed Income Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds (50.7%)
Automotive (2.5%)
5,000,000 Ford Motor Co., 7.25%, 10/1/08....................... $ 5,031,250
------------
Banking (4.3%)
1,050,000 Interamerica Development Bank, 8.50%, 3/15/11........ 1,185,188
5,000,000 JPM Capital Corp., 7.54%, 1/15/27.................... 4,681,250
2,000,000 Nationsbank Corp., 6.38%, 5/15/05.................... 1,945,000
1,000,000 Wachovia Corp., 6.38%, 2/1/09........................ 951,250
------------
8,762,688
------------
Banking--Foreign (7.4%)
5,000,000 Abbey National PLC,
6.69%, 10/17/05..................................... 4,931,250
5,000,000 Bayerische Landesbank--NY,
6.38%, 8/31/00...................................... 5,024,999
2,250,000 Bayerische Landesbank--NY,
5.88%, 12/1/08...................................... 2,078,438
3,000,000 Swiss Bank Corp.--NY,
6.75%, 7/15/05...................................... 2,955,000
------------
14,989,687
------------
Brokerage Services (4.1%)
5,000,000 Merrill Lynch & Co., Inc.,
7.00%, 4/27/08...................................... 4,918,750
825,000 Merrill Lynch & Co., Inc.,
7.15%, 7/30/12...................................... 830,156
2,500,000 Salomon, Inc., 6.70%, 7/5/00......................... 2,511,700
------------
8,260,606
------------
Electric Utility (0.5%)
1,000,000 Duke Power Co., 8.00%, 11/1/99....................... 1,006,250
------------
Electrical Equipment (2.5%)
5,550,000 Emerson Electric Co.,
5.85%, 3/15/09...................................... 5,182,313
------------
Finance (5.6%)
1,125,000 Ford Motor Credit Co.,
7.57%, 5/16/05...................................... 1,125,000
6,400,000 Natural Rural Utilities,
5.75%, 11/1/08...................................... 5,879,999
5,000,000 Toyota Motor Credit Co.,
5.50%, 12/15/08..................................... 4,500,000
------------
11,504,999
------------
Financial Services (8.0%)
5,000,000 Associates Corp. N.A.,
5.50%, 2/15/04...................................... 4,731,250
500,000 Associates Corp. N.A.,
7.75%, 2/15/05...................................... 518,125
3,500,000 Citi Group, Inc., 5.80%, 3/15/04..................... 3,351,250
5,000,000 General Electric Capital Corp., 7.88%, 12/1/06....... 5,299,999
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds, continued
Financial Services, continued
400,000 Pitney Bowes Credit Corp.,
6.80%, 10/1/01...................................... $ 405,000
2,000,000 Transamerica Financial Corp.,
6.38%, 11/15/01..................................... 1,997,500
------------
16,303,124
------------
Food Processing & Packaging (1.0%)
2,000,000 Sysco Corp., 7.25%, 4/15/07.......................... 2,047,500
------------
Health Care (2.3%)
4,300,000 Johnson & Johnson,
8.72%, 11/1/24...................................... 4,751,500
------------
Household Products (0.5%)
1,000,000 Procter & Gamble Co.,
5.25%, 9/15/03...................................... 958,750
------------
Insurance (0.6%)
125,000 MBIA, Inc., 8.20%, 10/1/22........................... 132,188
1,000,000 St. Paul Cos., Inc., 7.29%, 8/28/07.................. 1,011,250
------------
1,143,438
------------
Oil & Gas--Exploration & Production Services (1.5%)
1,000,000 Amoco Canada, 7.25%, 12/1/02......................... 1,026,250
1,450,000 Amoco Canada, 7.95%, 10/1/22......................... 1,475,375
475,000 Societe Nationale Elf Aquitaine, 8.00%, 10/15/01..... 492,219
------------
2,993,844
------------
Publishing (1.1%)
2,530,000 Washington Post Co.,
5.50%, 2/15/09...................................... 2,318,113
------------
Restaurants (2.8%)
2,000,000 McDonald's Corp., 6.50%, 8/1/07...................... 1,980,000
4,005,000 McDonald's Corp., 5.95%, 1/15/08..................... 3,809,756
------------
5,789,756
------------
Retail (3.1%)
2,000,000 Wal-Mart Stores, Inc.,
5.85%, 6/1/00....................................... 2,002,500
1,900,000 Wal-Mart Stores, Inc.,
8.00%, 9/15/06...................................... 2,021,125
2,273,000 Wal-Mart Stores, Inc.,
7.25%, 6/1/13....................................... 2,338,349
------------
6,361,974
------------
Supranational Agency (2.9%)
3,000,000 Asian Development Bank,
6.50%, 9/21/02...................................... 3,022,500
3,000,000 Asian Development Bank,
6.13%, 3/9/04....................................... 2,981,250
------------
6,003,750
------------
Total Corporate Bonds (Cost $106,241,852) 103,409,542
------------
</TABLE>
Continued
45
<PAGE>
PACIFIC CAPITAL FUNDS
Diversified Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
U.S. Government Agencies (17.2%)
Federal Home Loan Bank (3.2%)
1,500,000 5.88%, 8/15/01........................................ $ 1,496,970
5,000,000 5.95%, 6/13/05........................................ 4,886,150
------------
6,383,120
------------
Federal National Mortgage Association (7.4%)
1,450,000 6.38%, 8/14/01........................................ 1,460,759
1,000,000 6.38%, 1/16/02........................................ 1,006,370
5,000,000 5.88%, 4/23/04........................................ 4,838,550
2,100,000 7.69%, 9/13/06........................................ 2,118,354
250,000 7.88%, 9/13/06........................................ 250,553
1,300,000 6.76%, 7/16/07........................................ 1,303,432
3,100,000 6.40%, 5/14/09........................................ 2,945,000
1,000,000 6.88%, 9/10/12........................................ 1,000,890
------------
14,923,908
------------
Electric Utility (4.4%)
5,000,000 Tennessee Valley Authority,
6.38%, 6/15/05....................................... 4,918,750
4,300,000 Tennessee Valley Authority,
5.38%, 11/13/08...................................... 3,904,916
------------
8,823,666
------------
Finance (2.6%)
5,000,000 Private Export Funding,
6.49%, 7/15/07....................................... 5,031,250
------------
Total U.S. Government Agencies (Cost $36,413,865) 35,161,944
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
U.S. Treasury Notes (9.7%)
6,000,000 5.75%, 6/30/01...................................... $ 6,011,400
7,000,000 7.25%, 8/15/04...................................... 7,396,970
1,500,000 6.62%, 5/15/07...................................... 1,549,920
5,250,000 5.63%, 5/15/08...................................... 5,099,115
------------
Total U.S. Treasury Notes (Cost $20,271,955) 20,057,405
------------
U.S. Treasury Bonds (17.6%)
14,000,000 7.25%, 5/15/16...................................... 15,256,920
21,000,000 6.25%, 8/15/23...................................... 20,844,390
------------
Total U.S. Treasury Bonds (Cost $37,108,553) 36,101,310
------------
Private Placement (2.4%)
Research & Development (2.4%)
5,000,000 Bayer Corp., 6.50%, 10/1/02 (b), acquisition date
10/21/97........................................... 5,000,000
------------
Total Private Placement (Cost $5,006,692) 5,000,000
------------
Investment Company (0.2%)
697,307 One Group Prime Money Market Fund (Class I Shares).. 697,307
------------
Total Investment Company (Cost $697,307) 697,307
------------
Total Investments (Cost $205,740,224) (a)--98.4% 200,427,508
Other assets in excess of liabilities--1.6% 3,291,088
------------
Total Net Assets--100.0% $203,718,596
============
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$84,178. Cost for federal income tax purposes differs from market value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $ 1,028,720
Unrealized depreciation. (6,425,614)
-----------
Net unrealized
depreciation........... $(5,396,894)
===========
</TABLE>
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
PLC--Public Limited Company
See notes to financial statements.
46
<PAGE>
PACIFIC CAPITAL FUNDS
U.S. Treasury Securities Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Treasury Notes (43.2%)
2,000,000 7.13%, 2/29/00......................................... $ 2,022,460
4,000,000 7.75%, 2/15/01......................................... 4,129,480
980,000 8.00%, 5/15/01......................................... 1,018,965
300,000 5.75%, 10/31/02........................................ 299,616
450,000 5.75%, 8/15/03......................................... 447,912
1,000,000 7.50%, 2/15/05......................................... 1,069,740
450,000 6.50%, 5/15/05......................................... 460,809
-----------
Total U.S. Treasury Notes (Cost $9,281,660) 9,448,982
-----------
U.S. Treasury Bonds (53.4%)
2,150,000 7.63%, 2/15/07......................................... 2,227,916
6,700,000 7.25%, 5/15/16......................................... 7,301,525
2,150,000 6.25%, 8/15/23......................................... 2,134,069
-----------
Total U.S. Treasury Bonds (Cost $10,955,188) 11,663,510
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Investment Company (1.2%)
252,885 One Group U.S. Treasury Securities Money Market Fund
(Class I Shares)..................................... $ 252,885
-----------
Total Investment Company (Cost $252,885) 252,885
-----------
Total Investments (Cost $20,489,732) (a)--97.8% 21,365,377
Other assets in excess of liabilities--2.2% 489,508
-----------
Total Net Assets--100.0% $21,854,885
===========
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$7,253. Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 992,412
Unrealized depreciation... (124,020)
---------
Net unrealized
appreciation............. $ 868,392
=========
</TABLE>
See notes to financial statements.
47
<PAGE>
PACIFIC CAPITAL FUNDS
Short Intermediate U.S. Treasury Securities Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
U.S. Treasury Notes (97.0%)
1,500,000 6.13%, 12/31/01........................................ $ 1,513,725
1,100,000 6.25%, 2/28/02......................................... 1,113,992
2,000,000 6.38%, 8/15/02......................................... 2,032,080
6,700,000 6.25%, 8/31/02......................................... 6,783,482
5,500,000 6.25%, 2/15/03......................................... 5,570,895
2,300,000 5.25%, 8/15/03......................................... 2,249,331
7,550,000 5.75%, 8/15/03......................................... 7,514,968
6,000,000 6.50%, 5/15/05......................................... 6,144,120
-----------
Total U.S. Treasury Notes (Cost $33,217,398) 32,922,593
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Investment Company (0.8%)
274,441 One Group U.S. Treasury Securities Money Market Fund
(Class I Shares)..................................... $ 274,441
-----------
Total Investment Company (Cost $274,441) 274,441
-----------
Total Investments (Cost $33,491,839) (a)--97.8% 33,197,034
Other assets in excess of liabilities--2.2% 729,691
-----------
Total Net Assets--100.0% $33,926,725
===========
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and for federal income tax
purposes and differs from market value by net unrealized depreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 67,873
Unrealized depreciation... (362,678)
---------
Net unrealized
depreciation............. $(294,805)
=========
</TABLE>
See notes to financial statements.
48
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Alternative Minimum Tax Paper (17.25%)
Hawaii (17.25%)
2,465,000 Hawaii Airport System Revenue, Second Series, 7.50%,
7/1/20, FGIC, AMT.................................. $ 2,575,259
1,075,000 Hawaii Airport System Revenue, 7.00%, 7/1/10, FGIC.. 1,142,188
745,000 Hawaii Airport System Revenue, 7.38%, 7/1/11, AMBAC. 778,190
935,000 Hawaii Airport System Revenue, 7.30%, 7/1/20, AMBAC. 975,177
465,000 Hawaii Airport System Revenue, Second Series, 7.50%,
7/1/09, FGIC....................................... 486,781
15,375,000 Hawaii Airport System Revenue, Second Series, 6.90%,
7/1/12, MBIA....................................... 17,585,155
1,890,000 Hawaii Airport System Revenue, Second Series, 7.00%,
7/1/18, MBIA....................................... 2,008,125
1,500,000 Hawaii Airport System Revenue, Second Series, 6.75%,
7/1/21, MBIA....................................... 1,584,375
4,660,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Citizens Utilities Co.
Project, 6.60%, 7/1/22............................. 4,922,125
11,000,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaii Electric Co.,
Series A, 6.60%, 1/1/25, MBIA...................... 11,893,750
2,145,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaiian Electric Co. &
Subsidiaries, 6.55%, 12/1/22, MBIA................. 2,305,875
5,000,000 Hawaii Department of Budget & Finance, Special
Purpose Revenue, Hawaii Electric Co., Series A,
6.20%, 5/1/26, MBIA................................ 5,318,750
2,650,000 Hawaii Harbor Capital Improvement Revenue, 6.10%,
7/1/07, FGIC....................................... 2,852,063
2,330,000 Hawaii Harbor Capital Improvement Revenue, 7.25%,
7/1/10, MBIA....................................... 2,432,939
3,260,000 Hawaii Harbor Capital Improvement Revenue, 7.00%,
7/1/17, MBIA....................................... 3,393,269
1,350,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/19, FGIC....................................... 1,439,438
4,660,000 Hawaii Harbor Capital Improvement Revenue, 6.38%,
7/1/24, FGIC....................................... 5,003,675
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Alternative Minimum Tax Paper, continued
Hawaii, continued
3,860,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Revenue,
Series A, 6.00%, 7/1/26............................ $ 3,908,250
1,500,000 Hawaii Department of Budget & Finance, 5.65%,
10/1/27, Callable 10/1/12 @ 101.................... 1,515,000
2,095,000 Honolulu City & County, Series B, 7.25%, 2/1/08,
Callable 2/1/00
@ 102, FGIC........................................ 2,172,557
------------
74,292,941
------------
Total Alternative Minimum Tax Paper (Cost $68,816,083) 74,292,941
------------
Municipal Bonds (81.42%)
Arizona (1.01%)
1,000,000 Arizona Unified School District, Maricopa County,
GO, 5.40%, 7/1/12.................................. 1,021,250
2,150,000 Phoenix Civic Improvement Corp., 5.25%, 7/1/16,
Callable 7/1/07
@ 100, MBIA........................................ 2,141,938
1,000,000 Tempe, GO, 4.90%, 7/1/12............................ 977,500
200,000 Tucson Street And Highway User Revenue, 5.00%,...... 195,250
------------
4,335,938
------------
California (8.49%)
4,500,000 California State, 5.00%, 2/1/25, Callable 2/1/08
@101, MBIA......................................... 4,213,125
3,000,000 California State GO, 4.75%, 2/1/16, Callable 2/1/09
@ 101, FGIC........................................ 2,808,750
2,190,000 East Bay California Municipal Utility District Water
Systems, 5.00%, 6/1/26............................. 2,042,175
2,000,000 Metropolitan Water District, 5.00%, 7/1/15, MBIA.... 1,950,000
1,000,000 Modesto District Finance Authority, Revenue, Series
A, 5.00%, 9/1/16, Callable 9/1/08 @ 101............ 967,500
3,725,000 Northern California Transmission, Oregon
Transmission Project, 7.00%, 5/1/13, Series A,
MBIA............................................... 4,395,500
5,450,000 San Diego Public Facilities, 5.38%, 5/15/17,
Callable 5/15/07 @ 101............................. 5,470,437
2,745,000 San Francisco City & County Airport Community,
International Airport Revenues, 5.63%, 5/1/21,
Callable 5/1/06 @ 101, FGIC........................ 2,796,469
</TABLE>
Continued
49
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
California, continued
2,250,000 San Francisco City & County Redevelopment Agency
Hotel Tax, 5.00%, 7/1/25........................... $ 2,103,750
2,770,000 San Francisco District Sales Tax, 5.00%, 7/1/28..... 2,579,563
1,735,000 San Francisco, Bay Area Rapid Transit, District
Sales Tax Revenue, 5.50%, 7/1/15, FGIC............. 1,761,025
1,000,000 Saratoga Unified School District, 5.38%, 9/1/17,
Callable 9/1/07
@ 102.............................................. 1,072,500
4,000,000 State Department Water, Series P, 6.00%, 12/1/20,
Callable 6/1/06 @ 101.............................. 4,404,999
------------
36,565,793
------------
Colorado (0.89%)
1,000,000 Adams & Arapaho County, 5.35%, 12/1/15, FGIC........ 1,002,500
3,000,000 Denver City & County School District, 5.00%,
12/1/23............................................ 2,816,250
------------
3,818,750
------------
Florida (5.22%)
2,750,000 Dade County, Water & Sewer, 5.50%, 10/1/15, FGIC.... 2,825,625
3,000,000 Florida State, Bond Finance Department, General
Services Environmental Revenue, 5.75%, 7/1/13,
AMBAC.............................................. 3,146,250
5,000,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, 5.50%, 7/1/17, FGIC.. 5,050,000
2,000,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, Series A, 5.50%,
7/1/21, FGIC....................................... 1,997,500
4,875,000 Orange County, Public Tax Service, 6.00%, 10/1/24,
FGIC............................................... 5,118,750
3,725,000 Orlando, Utilities Community Water & Electric
Revenue Refunding, Series D, 6.75%, 10/1/17........ 4,316,344
------------
22,454,469
------------
Georgia (2.86%)
1,865,000 Georgia Municipal Electric Authority, Series B,
6.13%, 1/1/14, FGIC................................ 1,974,569
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Georgia, continued
6,810,000 Georgia Municipal Electric Authority, 6.60%, 1/1/18,
MBIA............................................... $ 7,746,375
2,330,000 Metropolitan Atlanta, Rapid Transportation
Authority, Sales Tax Revenue, Series P, 6.25%,
7/1/11, AMBAC...................................... 2,586,300
------------
12,307,244
------------
Hawaii (36.52%)
1,000,000 Hawaii County, 4.60%, 2/1/06........................ 997,500
1,000,000 Hawaii County, 4.70%, 2/1/07........................ 996,250
1,000,000 Hawaii County, 4.90%, 2/1/09........................ 998,750
2,320,000 Hawaii County, GO, 5.20%, 2/1/15.................... 2,288,100
1,375,000 Hawaii County, GO, Series A, 4.50%, 2/1/04, FGIC.... 1,378,438
1,810,000 Hawaii County, GO, Series A, 5.00%, 2/1/10, FGIC.... 1,803,213
2,095,000 Hawaii County, GO, Series A, 5.10%, 2/1/13, FGIC.... 2,066,194
605,000 Hawaii County, GO, Series A, 5.60%, 5/1/13, FGIC.... 629,956
2,000,000 Hawaii County, Series A, 5.50%, 5/1/08, FGIC........ 2,095,000
1,455,000 Hawaii Department of Budget & Finance, Queens Health
System, 5.88%, 7/1/11.............................. 1,513,200
1,745,000 Hawaii Department of Budget & Finance, Queens Health
System, 6.05% , 7/1/16............................. 1,827,888
4,105,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaii Electric Light Co.
Project, 7.20%, 12/1/14, MBIA...................... 4,247,525
1,700,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage, Kapiolani Health Care System,
6.30%, 7/1/08, Callable 7/1/03 @ 102, MBIA......... 1,829,625
3,680,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage, Kapiolani Health Care System,
6.40%, 7/1/13, Callable 7/1/03 @ 102, MBIA......... 3,965,199
4,100,000 Hawaii Department of Budget & Finance, Systems
Revenue, Series A, 2.70%*, 7/1/26, LOC- Morgan
Guaranty........................................... 4,099,999
</TABLE>
Continued
50
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ------------------------------------------------------ ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
1,400,000 Hawaii Department of Transportation, Special Facility
Revenue, 5.75%, 3/1/13............................... $ 1,415,750
1,400,000 Hawaii Harbor Capital Improvement Revenue, 6.20%,
7/1/08, MBIA......................................... 1,484,000
2,795,000 Hawaii Housing Finance & Development Corp., 5.70%,
7/1/13, FNMA......................................... 2,829,938
5,980,000 Hawaii Housing Finance & Development Corp., 5.85%,
7/1/17............................................... 6,062,224
4,125,000 Hawaii Housing Finance & Development Corp., 7.00%,
7/1/31, FNMA......................................... 4,320,937
1,565,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, Series B, 6.90%,
7/1/16, FNMA......................................... 1,639,338
2,340,000 Hawaii Housing Finance & Development Corp., University
of Hawaii Housing, 5.70%, 10/1/25, AMBAC............. 2,401,425
5,500,000 Hawaii State, 5.00%, 4/1/17........................... 5,266,249
2,850,000 Hawaii State Department of Budget & Finance, 4.95%,
4/1/12............................................... 2,800,125
3,500,000 Hawaii State Department of Budget & Finance, Special
Purpose Revenue, Queens Health System, Series B,
5.25%, 7/1/23, Callable 7/1/08 @ 102................. 3,381,875
1,000,000 Hawaii State Highway Revenue, 5.00%, 7/1/16, FGIC..... 957,500
1,250,000 Hawaii State Highway Revenue, 5.25%, 7/1/16, Callable
7/1/06 @ 102, MBIA................................... 1,232,813
2,000,000 Hawaii State, Series CN, 5.25%, 3/1/13, FGIC.......... 2,002,500
3,700,000 Hawaii State, Series CN, 5.25%, 3/1/15, Callable
3/1/07 @ 102, 3/1/09 @ 100........................... 3,667,625
3,150,000 Hawaii State, Series CR, 5.00%, 4/1/16, Callable
4/1/08 @ 101, MBIA................................... 3,024,000
2,000,000 Hawaii State, Series BZ, 6.00%, 10/1/12, FGIC......... 2,160,000
1,350,000 Hawaii State, Series CH, 4.75%, 11/1/11, MBIA......... 1,304,438
3,000,000 Hawaii State, Series CM, 6.50%, 12/1/13, FGIC......... 3,401,250
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
2,750,000 Hawaii State, Series CN, 5.50%, 3/1/16, FGIC......... $ 2,928,750
2,800,000 Hawaii State, Series CP, 5.00%, 10/1/13, FGIC........ 2,733,500
3,200,000 Hawaii State, Series CP, 5.00%, 10/1/15, FGIC........ 3,088,000
3,000,000 Hawaii State, Series CP, 5.00%, 10/1/16, Callable
10/1/07 @ 101, FGIC................................. 2,876,250
2,050,000 Hawaii State, Series CP, 5.00%, 10/1/17, FGIC........ 1,960,313
1,000,000 Hawaii, GO, Series CL, 5.25%, 3/1/16, FGIC........... 1,043,750
10,000,000 Honolulu City & County Waste Water Systems Revenue,
5.00%, 7/1/23, FGIC................................. 9,299,999
1,535,000 Honolulu City & County Water, 6.00%, 12/1/10, FGIC... 1,663,556
2,320,000 Honolulu City & County Water, 6.00%, 12/1/11, FGIC... 2,505,600
935,000 Honolulu City & County Water, 6.00%, 12/1/14, FGIC... 1,014,475
475,000 Honolulu City & County, Series B, 5.50%, 10/1/11,
FGIC................................................ 495,188
1,010,000 Honolulu City & County, GO, Series A, 5.00%, 11/1/12,
Pre-refunded, MBIA.................................. 989,800
370,000 Honolulu City & County, GO, Series A, 5.00%, 11/1/12,
MBIA................................................ 377,400
1,385,000 Honolulu City & County, Series B, 5.50%, 10/1/11,
FGIC................................................ 1,431,744
3,725,000 Honolulu City & County, Series A, 7.35%, 7/1/06,
FGIC................................................ 4,311,687
295,000 Honolulu City & County, Series B, 5.25%, 10/1/12,
Pre-refunded, FGIC (b).............................. 300,531
640,000 Honolulu City & County, Series B 5.25%, 10/1/12,
FGIC................................................ 645,600
875,000 Honolulu City & County, Series A, 6.00%, 1/1/11,
FGIC................................................ 940,625
2,125,000 Honolulu City & County, Series A, 6.00%, 1/1/11, Pre-
refunded, FGIC (b).................................. 2,302,969
4,820,000 Honolulu City & County, Series A, 5.75%, 4/1/11,
FGIC................................................ 5,103,174
465,000 Honolulu City & County, Series A, 5.75%, 4/1/12, Pre-
refunded, FGIC (b).................................. 495,225
1,865,000 Honolulu City & County, Series A, 5.75%, 4/1/12,
FGIC................................................ 1,965,244
</TABLE>
Continued
51
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
3,345,000 Honolulu City & County, Series A, 5.75%, 4/1/13,
FGIC................................................ $ 3,533,156
850,000 Honolulu City & County, Series A, 5.75%, 4/1/13, Pre-
refunded, FGIC (b).................................. 902,063
1,670,000 Honolulu City & County, Series A, 5.63%, 9/1/13,
Callable 9/1/06 @ 102, FGIC......................... 1,770,200
5,000 Honolulu City & County, Series A, 5.63%, 9/1/13,
Callable 9/1/06 @ 102, FGIC......................... 5,163
1,325,000 Honolulu City & County, Series A, 5.63%, 9/1/13,
Callable 9/1/06 @ 102, Pre-refunded, FGIC (b)....... 1,426,031
2,000,000 Honolulu City & County, Series B, 5.00%, 11/1/15,
Callable 11/1/07 @ 101, 11/1/08 @ 100, FGIC......... 2,055,000
2,595,000 Honolulu City & County, Series B, 5.13%, 7/1/18,
Callable 7/1/09 @ 101............................... 2,500,931
1,010,000 Kauai County, 5.55%, 8/1/04.......................... 1,059,238
1,075,000 Kauai County, 5.65%, 8/1/05.......................... 1,136,813
1,130,000 Kauai County, 5.75%, 8/1/06.......................... 1,203,450
1,340,000 Kauai County, Series C, 5.90%, 8/1/09, AMBAC......... 1,442,175
935,000 Maui County Refunding, 5.25%, 9/1/06................. 963,050
1,180,000 Maui County Refunding, 5.13%, 12/15/10............... 1,184,425
515,000 Maui County Water, Series A, 6.10%, 12/1/02, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 542,681
545,000 Maui County Water, Series A, 6.20%, 12/1/03, FGIC.... 575,656
580,000 Maui County Water, Series A, 6.30%, 12/1/04, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 614,075
620,000 Maui County Water, Series A, 6.40%, 12/1/05, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 657,975
565,000 Maui County Water, Series A, 6.50%, 12/1/06, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 600,313
550,000 Maui County Water, Series A, 6.60%, 12/1/07, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 585,750
655,000 Maui County Water, Series A, 6.65%, 12/1/09, Pre-
refunded 12/1/01 @ 101, FGIC (b).................... 698,394
1,020,000 Maui County, GO, 5.90%, 6/1/14....................... 1,073,550
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
1,005,000 Maui County, Series A, 5.10%, 9/1/11, Callable
9/1/07 @ 101....................................... $ 998,719
1,160,000 Maui County, Series A, 5.13%, 3/1/15................ 1,135,350
2,040,000 Maui County, Series A, 5.38%, 3/1/17................ 2,040,000
------------
157,266,362
------------
Idaho (0.87%)
3,725,000 Idaho Health Facilities Authority Revenue, St. Luke
Medical Center, 3.40%*, 5/1/22..................... 3,725,000
------------
Indiana (1.73%)
3,650,000 Indianapolis Economic Development & Revenue, Jewish
Federation Campus, 3.15%*, 4/1/05.................. 3,650,000
3,800,000 Purdue University, Series H, 3.05%*, 7/1/17......... 3,800,000
------------
7,450,000
------------
Kansas (1.75%)
3,725,000 Burlington Pollution Control Refunding, Kansas Gas &
Electric Co. Project, 7.00%, 6/1/31................ 3,962,469
1,065,000 Kansas City Utilities System Revenue, 6.38%, 9/1/23. 1,176,825
2,195,000 Kansas City Utilities System Revenue, 6.38%, 9/1/23,
Callable 9/1/04 @ 102.............................. 2,389,806
------------
7,529,100
------------
Maine (0.71%)
2,795,000 Maine State Turnpike Authority, Turnpike Revenue,
6.00%,
7/1/14............................................. 3,036,069
------------
Massachusetts (1.84%)
4,790,000 Commonwealth of Massachusetts, Series B, 5.50%,
7/1/15............................................. 5,071,412
1,965,000 Massachusetts State Port Authority Revenue, Series
A, 5.00%, 7/1/23, Callable 7/1/08 @ 101............ 1,815,169
1,000,000 Massachusetts State Water Pollution Abatement Trust,
5.70%, 2/1/13...................................... 1,042,500
------------
7,929,081
------------
Michigan (2.74%)
6,900,000 Michigan Environmental Protection Program, GO,
5.40%, 11/1/19..................................... 6,900,000
</TABLE>
Continued
52
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Michigan, continued
2,245,000 Michigan Strategic Obligations Revenue, 6.95%,
5/1/11............................................. $ 2,626,650
2,250,000 Saline Area Schools, GO,
5.50%, 5/1/15, FGIC................................ 2,292,188
------------
11,818,838
------------
Minnesota (0.52%)
2,000,000 North St. Paul, Maplewood, Independent School
District, No. 622, Series A, 6.88%, 2/1/15,
Pre-funded 2/1/05 @ 100 (b)........................ 2,230,000
------------
New Jersey (0.77%)
3,000,000 New Jersey Wastewater Treatment Trust, Series B,
6.38%, 4/1/14...................................... 3,296,250
------------
New Mexico (1.14%)
3,000,000 Rio Rancho Water & Waste Water Systems Revenue,
Series A, 5.90%, 5/15/15, FSA...................... 3,225,000
1,625,000 Sante Fe, Gross Receipts Tax Revenue, 5.63%, 6/1/16. 1,671,719
------------
4,896,719
------------
New York (1.12%)
2,950,000 New York State Environmental Facilities Pollution
Control, 5.13%, 6/15/16............................ 2,868,875
2,000,000 Triborough Bridge & Tunnel Authority, New York
Revenues, General Purpose, 5.30%, 1/1/17........... 1,970,000
------------
4,838,875
------------
North Carolina (1.19%)
4,480,000 Easton Municipal Power Agency, 6.50%, 1/1/18........ 5,129,600
------------
Ohio (2.97%)
2,320,000 Cleveland Package Facilities Revenue, 5.50%,
9/15/16............................................ 2,360,600
1,630,000 Cleveland Waterworks Revenue, 6.25%, 1/1/16, MBIA... 1,721,688
3,165,000 Columbus Airport Authority,
5.00%, 1/1/16...................................... 3,050,269
5,000,000 Hamilton County, Sales Tax Revenue, 5.00%, 12/01/27,
MBIA, Callable 6/1/08 @ 101........................ 4,637,499
1,000,000 Ohio Water Development Authority, Pollution Control,
5.50%, 12/1/15, MBIA............................... 1,013,750
------------
12,783,806
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Oregon (1.74%)
3,000,000 Multnomah County, 4.83%, 10/1/16, Callable 4/1/09 @
100................................................ $ 2,812,500
2,330,000 Umatilla County, School District Number 016R,
Pendleton,
6.00%, 7/1/14, AMBAC............................... 2,510,575
2,385,000 Washington County School District, 4.65%, 06/15/16,
Callable
6/15/09 @ 101...................................... 2,188,238
------------
7,511,313
------------
Pennsylvania (1.42%)
2,365,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/14............................ 2,557,156
140,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/14............................ 151,375
170,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/15............................ 183,813
2,980,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/15............................ 3,222,125
------------
6,114,469
------------
Tennessee (2.73%)
2,000,000 Metropolitian Government, Nashville & Davidson
County, 5.00%, 1/1/19.............................. 1,887,500
2,000,000 Metropolitian Government, Nashville & Davidson
County, 4.75%, 1/1/22.............................. 1,802,500
1,570,000 Shelby County, Series A, 5.63%, 4/1/15.............. 1,670,088
4,730,000 Shelby County, Series A, 5.63%, 4/1/15.............. 4,830,512
1,600,000 Shelby County, Series B, 5.25%, 8/1/17, Callable
8/1/07 @ 101....................................... 1,576,000
------------
11,766,600
------------
Virginia (3.19%)
5,000,000 Commonwealth of Virginia Public School Authority,
Special Obligation, Chesapeake School, 5.63%,
6/1/15............................................. 5,112,499
2,995,000 Fairfax County Public Improvement, Series A, 5.50%,
6/1/14............................................. 3,047,413
3,650,000 Norfolk Water Revenue, 5.75%, 11/1/13, MBIA......... 3,832,500
</TABLE>
Continued
53
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Virginia, continued
1,750,000 Richmond Refunding,
5.20%, 1/15/14...................................... $ 1,752,188
------------
13,744,600
------------
Total Municipal Bonds (Cost $338,578,840) 350,548,876
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Investment Company (0.30%)
1,297,076 Dreyfus Tax Exempt Money Market Fund................. $ 1,297,076
------------
Total Investment Company (Cost $1,297,076) 1,297,076
------------
Total Investments (Cost $408,691,999) (a)--98.97% 426,138,893
Other assets in excess of liabilities--1.03% 4,433,906
------------
Total Net Assets--100.00% $430,572,799
============
</TABLE>
- --------
* Variable rate security. Rate presented represents rate in effect at July 31,
1999. Maturity reflects final maturity date.
(a) Represents cost for financial reporting purposes and for federal income tax
purposes and differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $20,879,149
Unrealized depreciation.... (3,432,255)
-----------
Net unrealized
appreciation............... $17,446,894
===========
</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
FNMA--Insured by Federal National Mortgage Association
FSA--Insured by Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements.
54
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Alternative Minimum Tax Paper (12.4%)
Hawaii (10.3%)
2,070,000 Hawaii State Airport System Revenue, 5.60%, 7/1/01.... $ 2,121,750
1,000,000 Hawaii State Housing Finance & Development, Single
Family, Series A, 4.55%, 7/1/02...................... 1,000,000
1,900,000 Hawaii State Housing Finance & Development, Single
Family, Series A, 4.75%, 7/1/06...................... 1,881,000
-----------
5,002,750
-----------
Texas (2.1%)
1,000,000 El Paso Apartment Revenue, 5.00%, 8/15/01, FGIC....... 1,015,000
-----------
Total Alternative Minimum Tax Paper
(Cost $5,996,559) 6,017,750
-----------
Municipal Bonds (83.6%)
Arizona (2.1%)
1,000,000 Mesa Arizona Utility Systems Revenue, 5.00%, 7/1/08,
MBIA................................................. 1,021,250
-----------
Connecticut (2.1%)
1,000,000 Connecticut State, GO, Series E, 4.75%, 3/15/08,
Callable 3/15/04 @ 101.50............................ 1,002,500
-----------
Hawaii (48.3%)
1,500,000 Hawaii Department of Budget & Finance, Systems
Revenue, Series A, 2.70%*, 7/1/26, LOC- Morgan
Guaranty............................................. 1,500,000
3,000,000 Hawaii State Airport System Revenue, 5.60%, 7/1/04.... 3,149,999
1,000,000 Hawaii State Highway Revenue, 6.00%, 7/1/04........... 1,067,500
250,000 Hawaii State Housing Finance & Development, 3.20%*,
7/1/27............................................... 250,000
1,200,000 Hawaii State Housing Finance & Development, Single
Family, Series B, 4.80%, 7/1/07, FNMA................ 1,195,500
1,000,000 Hawaii State, GO, Series CP, 5.00%, 10/1/04, FGIC..... 1,025,000
2,000,000 Hawaii State, GO, Series CL, 4.50%, 3/1/01............ 2,012,499
1,300,000 Hawaii State, GO, Series CP, 5.00%, 10/1/05, FGIC..... 1,330,875
1,500,000 Hawaii State, GO, Series CP, 5.50%, 10/1/07, Series
CP, FGIC............................................. 1,574,999
1,000,000 Hawaii State, Refunding Series CB, 5.00%, 1/1/00...... 1,005,450
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
1,150,000 Hawaiian Home Lands Dept. Revenue, 4.05%, 7/1/06...... $ 1,102,563
1,400,000 Honolulu City & County, Pre-refunding Series A, 5.25%,
9/1/02, FGIC......................................... 1,442,000
680,000 Honolulu City & County, Series B, 5.00%,11/1/05, Pre-
refunded, FGIC....................................... 698,700
770,000 Honolulu City & County, Series B, 5.00%,11/1/05, FGIC. 788,288
530,000 Honolulu City & County, 5.50%, 11/1/09................ 554,513
470,000 Honolulu City & County, 5.50%, 11/1/09, Pre-refunded.. 494,675
1,150,000 Honolulu City & County Waste Water Systems, 5.00%,
7/1/09............................................... 1,155,750
500,000 Honolulu City & County, GO, Series A, 5.00%, 7/1/02... 510,625
725,000 Honolulu City & County, GO, 5.1%, 11/1/08............. 739,500
370,000 Honolulu, City & County Improvement District, 6.20%,
10/15/99............................................. 371,458
1,400,000 Maui County, GO, Series A, 5.25%, 3/1/08.............. 1,440,250
-----------
23,410,144
-----------
Idaho (2.8%)
1,350,000 Idaho Health Facilities Authority Revenue, St. Luke
Medical Center, 2.70%*, 5/1/22....................... 1,350,000
-----------
Illinois (0.5%)
250,000 Illinois Health Facilities, 3.40%*, 11/1/20, LOC-
Rabobank Nederland................................... 250,000
-----------
Indiana (1.5%)
720,000 Purdue University Revenue, Series O, 3.05%*, 7/1/19... 720,000
-----------
Maine (2.1%)
1,000,000 Maine Muni Bond Bank, 5.00%, 11/1/05, FSA............. 1,025,000
-----------
Michigan (2.1%)
1,000,000 Farmington Public School District, 5.00%, 5/1/06...... 1,021,250
-----------
Minnesota (2.1%)
1,000,000 Minnesota State, GO, 5.00%, 8/1/00.................... 1,014,980
-----------
Missouri (2.1%)
1,000,000 Kansas City Water Revenue, 5.50%, 12/1/02............. 1,040,000
-----------
</TABLE>
Continued
55
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
New Mexico (1.9%)
1,000,000 New Mexico State Capital Projects, 4.00%, 9/1/08,
Callable 9/1/04 @ 100................................ $ 937,500
-----------
New York (5.0%)
900,000 New York State Environmental Facilities Pollution
Control Revenue, 5.00%, 6/15/03...................... 920,250
1,500,000 New York State Thruway, Highway & Bridge, 5.00%,
4/1/08............................................... 1,516,875
-----------
2,437,125
-----------
Ohio (2.0%)
1,000,000 Ohio State Building Authority, Series A, 4.10%,
10/1/04.............................................. 983,750
-----------
Oregon (2.2%)
1,065,000 Oregon State Dept, Admin Services Lottery Revenue,
State Park Projects, Series A, 4.25%, 4/1/05, FSA.... 1,051,688
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
Tennessee (2.6%)
1,290,000 Nashville & Davidson County Health & Education
Facility Board Revenue, Series A, 4.63%, 11/1/08,
Callable 5/1/08 @ 101, MBIA.......................... $ 1,269,038
-----------
Utah (2.1%)
1,000,000 Jordan Utah School District, Series A, 5.25%, 6/15/05. 1,041,250
-----------
Wisconsin (2.1%)
1,000,000 Milwaukee, GO, 5.00%, 2/1/01.......................... 1,012,500
-----------
Total Municipal Bonds (Cost $40,942,698) 40,587,975
-----------
Investment Company (3.0%)
1,477,956 Dreyfus Tax Exempt Money Market Fund.................. 1,477,956
-----------
Total Investment Company (Cost $1,477,956) 1,477,956
-----------
Total Investments (Cost $48,417,212) (a)--99.0% 48,083,681
Other assets in excess of liabilities--1.0% 462,949
-----------
Total Net Assets--100.0% $48,546,630
===========
</TABLE>
- --------
* Variable rate security. Rate presented represents rate in effect at July 31,
1999. Maturity reflects final maturity date.
(a) Represents cost for financial reporting purposes and for federal income tax
purposes and differs from market value by net unrealized depreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..... $ 125,131
Unrealized depreciation..... (458,662)
---------
Net unrealized depreciation. $(333,531)
=========
</TABLE>
FGIC--Insured by the Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
GO--General Obligation
LOC--Letter of Credit
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements.
56
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Market
Shares Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (95.4%)
Australia (1.7%)
Metals & Mining (1.7%)
47,700 Broken Hill Proprietary Co. Ltd........................ $ 527,973
46,000 Rio Tinto Ltd.......................................... 823,420
-----------
1,351,393
-----------
Belgium (1.1%)
Banks (0.6%)
14,600 Fortis................................................. 475,040
-----------
Photography (0.5%)
21,000 AGFA-Gevaert NV (b).................................... 402,325
-----------
877,365
-----------
Brazil (1.3%)
Paper Products (0.8%)
35,000 Aracruz Celulose SA--ADR............................... 665,000
-----------
Steel (0.5%)
17,800 Companhia Siderurgica
Nacional--ADR......................................... 416,075
-----------
1,081,075
-----------
Canada (3.1%)
Computers & Peripherals (0.4%)
21,900 ATI Technologies, Inc. (b)............................. 303,543
-----------
Health Care (0.5%)
12,100 TLC The Laser Center, Inc. (b)......................... 440,138
-----------
Metals & Mining (0.4%)
18,500 Barrick Gold Corp...................................... 343,406
-----------
Oil & Gas Exploration, Production, & Services (1.0%)
25,000 Talisman Energy, Inc. (b).............................. 741,092
-----------
Telecommunications (0.8%)
7,500 Nortel Networks Corp................................... 664,688
-----------
2,492,867
-----------
Chile (0.5%)
Telecommunications (0.5%)
14,900 Compania de Telecomunicaciones de Chile SA--ADR........ 379,950
-----------
Denmark (0.9%)
Telecommunications (0.9%)
11,800 Tele Danmark A/S, Class B.............................. 705,206
-----------
Finland (3.2%)
Paper Products (0.8%)
50,400 Stora Enso Oyj, R Shares............................... 633,830
-----------
Telecommunication Equipment (1.3%)
12,900 Nokia Oyj, Class A--ADR................................ 1,097,307
-----------
Telecommunications (1.1%)
36,900 Sonera Group Oyj....................................... 920,209
-----------
2,651,346
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
France (11.6%)
Banks (0.6%)
16,100 Credit Lyonnais SA (b)................................. $ 467,498
-----------
Building Products (2.0%)
5,000 Compagnie de Saint Gobain.............................. 907,077
6,800 Lafarge SA............................................. 737,991
-----------
1,645,068
-----------
Computers (1.0%)
4,600 Cap Gemini SA.......................................... 782,815
-----------
Machinery & Equipment (0.9%)
6,800 Sidel SA............................................... 724,163
-----------
Oil & Gas Exploration, Production, & Services (3.5%)
9,300 Coflexip SA--ADR....................................... 411,525
4,500 Elf Aquitaine SA....................................... 770,614
12,600 Total Fina SA, Class B................................. 1,604,804
-----------
2,786,943
-----------
Retail (1.0%)
3,300 Castorama Dubois....................................... 840,611
-----------
Telecommunications (1.3%)
7,400 Alcatel SA............................................. 1,100,908
-----------
Television (1.3%)
4,500 Societe Television Francaise........................... 1,083,676
-----------
9,431,682
-----------
Germany (5.2%)
Automobiles (1.3%)
1,400 Bayerische Motoren Werke AG............................ 1,057,882
-----------
Machinery & Equipment (1.0%)
5,400 Mannesmann AG.......................................... 821,282
-----------
Manufacturing--Capital Goods (1.3%)
17,500 Veba AG................................................ 1,075,113
-----------
Medical Equipment & Supplies (1.2%)
14,000 Fresenius Medical Care AG.............................. 973,970
-----------
Utilities--Telecommunications (0.4%)
7,200 Deutsche Telekom AG.................................... 289,366
-----------
4,217,613
-----------
Greece (0.7%)
Construction (0.7%)
5,300 Titan Cement Company SA................................ 531,786
-----------
Hong Kong (0.8%)
Banks (0.8%)
57,600 HSBC Holdings PLC...................................... 679,046
-----------
Hungary (0.6%)
Utilities--Telecommunications (0.6%)
15,400 Matav Rt.--ADR......................................... 479,325
-----------
</TABLE>
Continued
57
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
-------- -------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Indonesia (0.0%)
Telecommunications (0.0%)
3,520 PT Telekomunikasi Indonesia--ADR........................ $ 33,440
-----------
Tobacco (0.0%)
500 PT Hanjaya Mandala Sampoerna Tbk........................ 1,221
-----------
34,661
-----------
Ireland (1.5%)
Building Products (0.6%)
24,200 CRH PLC................................................. 486,942
-----------
Telecommunications (0.9%)
149,100 Bord Telecom Eireann PLC (b)............................ 737,269
-----------
1,224,211
-----------
Italy (2.9%)
Banks (0.9%)
15,800 Bipop-Carrie SpA........................................ 725,468
-----------
Insurance (0.6%)
44,700 Alleanza Assicurazioni SpA.............................. 459,286
-----------
Publishing (0.8%)
482,700 Seat Pagine Gialle SpA.................................. 676,272
-----------
Television (0.6%)
55,800 Mediaset SpA............................................ 504,656
-----------
2,365,682
-----------
Japan (28.2%)
Automobiles (0.8%)
15,000 Honda Motor Co. Ltd..................................... 649,608
-----------
Banks (1.7%)
89,000 Bank of Tokyo-Mitsubishi Ltd............................ 1,357,163
-----------
Chemicals (1.1%)
25,000 Shin-Etsu Chemical Co. Ltd.............................. 906,227
-----------
Computer Software (3.2%)
11,800 Fuji Soft ABC, Inc...................................... 717,697
7,000 Softbank Corp........................................... 1,890,879
-----------
2,608,576
-----------
Computers & Peripherals (2.1%)
58,400 Fujitsu Ltd............................................. 1,750,553
-----------
Consumer Products--Cosmetics and Toiletries (1.3%)
39,000 Kao Corp................................................ 1,084,075
-----------
Electrical & Electronic (5.5%)
8,200 Advantest Corp.......................................... 1,043,207
80,000 Hitachi Ltd............................................. 805,148
4,400 Nintendo Co. Ltd........................................ 644,119
9,600 Sony Corp............................................... 1,220,478
12,000 Tokyo Electron Ltd...................................... 857,431
-----------
4,570,383
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- -------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Japan, continued
Financial Services (2.8%)
2,130 Shohkoh Fund & Co. Ltd.................................. $ 1,577,620
5,600 Takefuji Corp........................................... 671,933
-----------
2,249,553
-----------
Forest Products (0.8%)
107,000 Rengo Co. Ltd........................................... 615,363
-----------
Photography (0.5%)
29,000 Olympus Optical Co. Ltd................................. 440,958
-----------
Real Estate (0.6%)
60,000 Mitsui Fudosan Co. Ltd.................................. 496,682
-----------
Retail (2.5%)
4,800 Ryohin Keikaku Co. Ltd.................................. 1,472,271
5,000 Seven-Eleven Japan Co. Ltd.............................. 575,977
-----------
2,048,248
-----------
Steel (1.0%)
321,000 Nippon Steel Corp....................................... 819,552
-----------
Telecommunications (2.9%)
17,700 Matsushita Communication Industrial Co. Ltd............. 1,272,421
71 NTT Mobile Communications Network, Inc.................. 1,101,241
-----------
2,373,662
-----------
Utilities--Telecommunications (1.4%)
90 Nippon Telegraph & Telephone Corp....................... 1,144,983
-----------
23,115,586
-----------
Mexico (2.1%)
Building Products (0.5%)
3,115 Cemex SA de CV--ADR..................................... 26,700
89,456 Cemex SA de CV, Series CPO.............................. 380,047
-----------
406,747
-----------
Television (0.7%)
14,400 Grupo Televisa SA--GDR (b).............................. 550,800
-----------
Utilities--Telecommunications (0.9%)
10,300 Telefonos de Mexico SA de CV--ADR....................... 777,650
-----------
1,735,197
-----------
Netherlands (7.0%)
Electrical & Electronic (0.8%)
6,800 Philips Electronics NV.................................. 687,650
-----------
Electronics (1.6%)
17,800 STMicroelectronics NV................................... 1,254,900
-----------
</TABLE>
Continued
58
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- -------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Netherlands, continued
Oil & Gas Exploration, Production, & Services (0.7%)
9,500 Royal Dutch Petroleum Co................................ $ 579,500
-----------
Semiconductors (1.5%)
20,100 ASM Lithography Holding NV (b).......................... 1,221,075
-----------
Telecommunications (1.1%)
10,400 Equant NV (b)........................................... 924,950
-----------
Utilities--Telecommunications (1.3%)
16,300 United Pan-Europe Communications NV (b)................. 1,058,963
-----------
5,727,038
-----------
New Zealand (0.3%)
Paper Products (0.3%)
281,700 Fletcher Challenge Paper................................ 227,072
-----------
Singapore (0.7%)
Electronics (0.3%)
55,000 Natsteel Electronics Ltd................................ 267,931
-----------
South Africa (0.8%)
Metals & Mining (0.8%)
12,900 Anglo American PLC (b).................................. 666,419
-----------
South Korea (1.8%)
Steel (0.9%)
21,100 Pohang Iron & Steel Co. Ltd.--ADR....................... 749,050
-----------
Utilities--Telecommunications (0.9%)
19,800 Korea Telecom Corp.--ADR (b)............................ 728,888
-----------
1,477,938
-----------
Spain (0.0%)
Utilities--Telecommunications (0.0%)
459 Telefonica SA--ADR...................................... 21,917
-----------
Sweden (1.8%)
Paper Products (1.0%)
25,500 Svenska Cellulosa AB, B Shares.......................... 740,144
-----------
Telecommunication Equipment (0.8%)
21,500 Telefonaktiebolaget LM Ericsson--ADR.................... 689,344
-----------
1,429,488
-----------
Switzerland (1.8%)
Banks (1.8%)
260 Julius Baer Holding Ltd................................. 835,923
2,200 UBS AG.................................................. 669,742
-----------
1,505,665
-----------
Taiwan (1.5%)
Electronics (1.5%)
40,400 Taiwan Semiconductor Manufacturing Co. Ltd. (b)......... 1,254,925
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
United Kingdom (12.3%)
Automotive (0.6%)
26,400 GKN PLC................................................ $ 455,480
-----------
Banks (0.8%)
41,900 Standard Chartered PLC................................. 635,339
-----------
Building Products (0.7%)
102,800 Barratt Developments PLC............................... 584,542
-----------
Computer Software (1.0%)
16,500 Eidos PLC (b).......................................... 839,323
-----------
Construction (0.7%)
82,900 Blue Circle Industries PLC............................. 590,576
-----------
Diversified--Conglomerates, Holding Companies (1.6%)
66,600 General Electric Co. PLC............................... 667,853
133,300 Morgan Crucible Co. PLC................................ 606,809
-----------
1,274,662
-----------
Electrical & Electronic (0.8%)
44,400 ARM Holdings PLC (b)................................... 679,721
-----------
Financial Services (0.7%)
19,900 Barclays PLC........................................... 587,700
-----------
Insurance (0.5%)
218,300 Old Mutual PLC (b)..................................... 447,363
-----------
Oil & Gas Exploration, Production, & Services (1.2%)
117,000 Shell Transport & Trading Co. PLC...................... 954,335
-----------
Telecommunications (2.5%)
33,700 British Telecommunications PLC......................... 584,703
32,300 COLT Telecom Group PLC (b)............................. 729,425
30,600 Vodafone AirTouch PLC.................................. 650,385
-----------
1,964,513
-----------
Television (0.4%)
83,200 TeleWest Communications PLC (b)........................ 358,526
-----------
Tobacco (0.8%)
79,000 British American Tobacco PLC........................... 665,497
-----------
10,037,577
-----------
United States (1.8%)
Electronics (0.4%)
8,100 Flextronics International Ltd. (b)..................... 363,488
-----------
Oil & Gas Exploration, Production, & Services (0.9%)
11,800 Schlumberger Ltd....................................... 714,637
-----------
Telecommunications (0.5%)
13,000 Global TeleSystems Group, Inc. (b)..................... 414,375
-----------
1,492,500
-----------
</TABLE>
Continued
59
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
- ------ ------------------------------------- -----------
<S> <C> <C>
Common Stocks, continued
Venezuela (0.2%)
Electrical & Electronic (0.2%)
7,600 C.A. La Electricidad de Caracas--ADR. $ 127,833
-----------
Total Common Stocks (Cost $68,206,246) 77,590,294
-----------
Warrants (.04%)
Singapore (.04%)
Financial Services (.04%)
41,000 Oversea-Chinese Banking Corp. Ltd.... $ 343,438
-----------
Total Warrants (Cost $0) 343,438
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Cash Sweep (5.9%)
United States (5.9%)
4,777,138 Union Bank of California ............................. $ 4,777,138
-----------
Total Cash Sweep (Cost $4,777,138) 4,777,138
-----------
Total Investments (Cost $72,983,384)
(a)--101.3% 82,710,870
Liabilities in excess of other assets--(1.3)% (1,091,282)
-----------
Total Net Assets--100.0% $81,619,588
===========
</TABLE>
- --------
Forward Currency Contracts:
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Market Appreciation/
Currency Date Value Value (Depreciation)
-------- -------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
Short Contracts:
British Pound................ 8/2/99 (242,830) (247,880) (5,050)
8/3/99 (6,533) (6,673) (140)
8/4/99 (21,484) (21,726) (242)
Euro Dollar.................. 8/2/99 (26,930) (27,064) (134)
Indonesia Rupee.............. 8/4/99 (299,319) (307,317) (7,998)
8/5/99 (98,923) (100,554) (1,631)
New Zealand Dollar........... 8/2/99 (52,070) (52,998) (928)
8/4/99 (15,599) (15,875) (276)
Singapore Dollar............. 8/3/99 (504,941) (506,960) (2,019)
---------- ---------- -------
Total Short Contracts........ (1,268,629) (1,287,047) (18,418)
---------- ---------- -------
Long Contracts:
Danish Krone................. 8/2/99 186,118 185,027 (1,091)
Euro Dollar.................. 8/2/99 149,603 149,087 (516)
---------- ---------- -------
Total Long Contracts......... 335,721 334,114 (1,607)
---------- ---------- -------
</TABLE>
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$850,141. Cost for federal income tax purposes differs from market value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $10,295,477
Unrealized depreciation.. (1,352,502)
-----------
Net unrealized
appreciation............ $ 8,942,975
===========
</TABLE>
(b) Non-income producing security
ADR--American Depository Receipt
GDR--Global Depository Receipt
PLC--Public Limited Company
See notes to financial statements.
60
<PAGE>
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (95.3%)
Aerospace/Defense (1.7%)
18,250 Raytheon Co.Class B...................................... $ 1,283,203
-----------
Automotive (2.1%)
32,520 Ford Motor Co. .......................................... 1,581,285
-----------
Banks (13.6%)
34,050 Bank Of America Corp..................................... 2,260,068
21,500 Bank of New York Co., Inc................................ 794,156
26,510 Bank One Corp............................................ 1,446,452
39,160 BankBoston Corp. ........................................ 1,838,072
22,500 Chase Manhattan Corp..................................... 1,729,688
17,640 First Union Corp. ....................................... 811,440
10,000 State Street Corp. ...................................... 708,750
24,000 U.S. Bancorp............................................. 747,000
-----------
10,335,626
-----------
Beverages (1.1%)
21,000 PepsiCo, Inc............................................. 821,625
-----------
Chemicals (3.1%)
20,530 B. F. Goodrich Co........................................ 851,995
15,700 E.I. du Pont de Nemours & Co............................. 1,131,381
7,000 Potash Corp. Of Saskatchewan............................. 359,188
-----------
2,342,564
-----------
Computers & Peripherals (2.1%)
10,100 International Business Machines Corp. ................... 1,269,444
5,150 Sun Microsystems, Inc. (b)............................... 349,556
-----------
1,619,000
-----------
Electronic Components/Instruments (3.0%)
19,000 Advanced Micro Devices, Inc. (b)......................... 326,563
17,000 Intel Corp............................................... 1,173,000
5,590 Texas Instruments, Inc. ................................. 804,960
-----------
2,304,523
-----------
Entertainment (2.2%)
11,210 Time Warner, Inc. ....................................... 807,120
31,200 Walt Disney Co........................................... 861,900
-----------
1,669,020
-----------
Financial Services (6.6%)
26,270 Freddie Mac.............................................. 1,507,241
15,510 Morgan Stanley, Dean Witter & Co......................... 1,397,839
54,660 Wells Fargo Co........................................... 2,131,739
-----------
5,036,819
-----------
Food Products (0.8%)
45,480 Archer-Daniels-Midland Co................................ 636,720
-----------
Health Care (2.1%)
12,000 Amgen, Inc. (b).......................................... 922,500
7,500 Biomatrix, Inc. (b)...................................... 153,750
18,000 McKesson HBOC Inc. ...................................... 559,125
-----------
1,635,375
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Insurance (4.5%)
15,000 American International Group, Inc........................ $ 1,741,874
7,000 Chubb Corp............................................... 418,688
13,720 Conseco, Inc............................................. 395,308
16,927 Xl Capital Ltd........................................... 888,668
-----------
3,444,538
-----------
Manufacturing (1.9%)
20,750 Johnson Controls, Inc.................................... 1,422,672
-----------
Medical Supplies (1.8%)
19,760 Baxter International, Inc. .............................. 1,357,265
-----------
Oil & Gas--Exploration & Production Services (13.8%)
24,750 Baker Hughes, Inc........................................ 861,609
8,250 Chevron Corp. ........................................... 752,813
5,000 Enron Corp. ............................................. 425,938
7,000 Exxon Corp............................................... 555,625
32,350 Phillips Petroleum Co. .................................. 1,659,958
7,840 Texaco, Inc.............................................. 488,530
49,250 The Williams Cos., Inc................................... 2,071,577
36,500 Transocean Offshore, Inc................................. 1,120,094
37,850 Ultramar Diamond Shamrock Corp........................... 894,206
54,500 USX-Marathon Group....................................... 1,655,438
-----------
10,485,788
-----------
Paper Products (1.5%)
17,500 Temple-Inland, Inc....................................... 1,106,875
-----------
Pharmaceuticals (1.0%)
27,000 Elan Corp., PLC, ADR (b)................................. 784,688
-----------
Raw Materials (1.1%)
65,000 Bethlehem Steel Corp. (b)................................ 507,813
14,000 USX--U.S. Steel Group, Inc............................... 363,125
-----------
870,938
-----------
Real Estate (1.3%)
47,000 Healthcare Realty Trust, Inc. ........................... 987,000
-----------
Restaurants (1.0%)
18,500 McDonald's Corp.......................................... 771,219
-----------
Retail (7.3%)
28,200 Dayton Hudson Corp....................................... 1,824,187
34,500 Lowe's Co., Inc.......................................... 1,819,874
54,500 Rite Aid Corp............................................ 1,154,719
17,000 Whole Foods Market, Inc. (b)............................. 748,000
-----------
5,546,780
-----------
Savings & Loans (0.5%)
10,000 Washington Mutual, Inc................................... 343,125
-----------
Software & Computer Services (1.2%)
7,000 BMC Software, Inc. (b)................................... 377,125
20,000 Sterling Commerce, Inc. (b).............................. 525,000
-----------
902,125
-----------
</TABLE>
Continued
61
<PAGE>
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------- --------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Telecommunications-Equipment (3.4%)
29,580 Nortel Networks Corp..................................... $ 2,621,528
-----------
Telecommunications-Services and Equipment (2.1%)
5,000 Comcast Corp., Special Class A........................... 192,500
7,000 Sprint Corp (PCS Group).................................. 424,375
19,000 Sprint Corp. ............................................ 982,063
-----------
1,598,938
-----------
Toys (2.8%)
83,385 Hasbro, Inc. ............................................ 2,168,010
-----------
Transportation (2.9%)
39,510 Kansas City Southern Industries, Inc..................... 2,182,928
-----------
Utilities--Electric (3.0%)
57,500 DQE, Inc................................................. 2,278,438
-----------
Utilities--Telecommunications (5.8%)
9,620 ALLTEL Corp.............................................. 690,836
28,300 AT&T Corp................................................ 1,469,831
27,170 MCI Worldcom, Inc. (b)................................... 2,241,525
-----------
4,402,192
-----------
Total Common Stocks (Cost $70,160,426) 72,540,807
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Depository Receipts (1.6%)
9,000 S & P 500 Depository Receipt........................... $ 1,195,313
-----------
Total Depository Receipts (Cost $1,189,583) 1,195,313
-----------
Investment Company (1.3%)
975,133 One Group Prime Money Market Fund, (Class I Shares).... 975,133
-----------
Total Investment Company (Cost $975,133) 975,133
-----------
Total Investments (Cost $72,325,142)
(a) -- (98.2%) 74,711,253
Other assets in excess of liabilities--(1.8%) 1,402,962
-----------
Total Net Assets--(100.0%) $76,114,215
===========
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $46,490.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 4,663,501
Unrealized depreciation... (2,323,880)
-----------
Net unrealized
appreciation.............. $ 2,339,621
===========
</TABLE>
(b) Non-income producing security
ADR--American Depository Receipt
PLC--Public Limited Company
See notes to financial statements.
62
<PAGE>
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (98.5%)
Aerospace/Defense (3.4%)
16,100 AAR Corp. ............................................. $ 339,106
19,400 BE Aerospace, Inc. (b)................................. 367,388
14,200 GenCorp, Inc. ......................................... 373,637
-----------
1,080,131
-----------
Animal Hospital (1.3%)
29,700 Veterinary Centers Of America (b)...................... 428,794
-----------
Apparel (2.3%)
28,700 Cato Corp. ............................................ 360,544
16,800 Kellwood Co. .......................................... 381,150
-----------
741,694
-----------
Banks (11.0%)
9,900 City National Corp. ................................... 339,075
26,400 Colonial BancGroup, Inc. .............................. 371,250
15,400 Community Bank System, Inc. ........................... 400,400
17,700 Community First Bankshares, Inc. ...................... 371,700
17,430 F.N.B. Corp. .......................................... 453,180
9,400 First Essex Bancorp, Inc. ............................. 155,100
15,500 First Republic Bank, Inc. (b).......................... 408,813
26,788 Imperial Bancorp (b)................................... 490,555
27,500 Peoples Heritage Financial Group....................... 496,718
-----------
3,486,791
-----------
Building & Construction (4.4%)
17,600 Beazer Homes USA, Inc. (b)............................. 446,599
20,467 Modtech Holdings, Inc. (b)............................. 245,604
17,900 NCI Building Systems, Inc. ............................ 342,338
6,700 NVR, Inc. (b).......................................... 376,875
-----------
1,411,416
-----------
Building--Mobile Homes (1.0%)
16,100 Coachman Industries, Inc. ............................. 309,925
-----------
Chemicals (2.4%)
35,000 International Specialty Products, Inc. (b)............. 312,813
29,200 M.A. Hanna Co. ........................................ 467,200
-----------
780,013
-----------
Commercial Services (1.0%)
10,100 Central Parking Corp. ................................. 333,931
-----------
Computers & Peripherals (2.9%)
8,000 NeoMagic Corp. (b)..................................... 75,000
31,300 Pomeroy Computer Resources, Inc. (b)................... 451,893
34,100 Technology Solutions Co. (b)........................... 413,463
-----------
940,356
-----------
Consumer Goods & Services (1.4%)
27,000 Central Garden & Pet Co. (b)........................... 244,687
17,000 Nu Skin Enterprises, Inc. (b).......................... 213,563
-----------
458,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Electric Utility (4.3%)
19,100 Avista Corp. .......................................... $ 321,119
25,100 CMP Group, Inc. ....................................... 665,149
9,800 TNP Enterprises, Inc. ................................. 374,238
-----------
1,360,506
-----------
Electrical Equipment (2.3%)
43,200 Checkpoint Systems, Inc. (b)........................... 396,900
15,700 Emcor Group, Inc (b)................................... 349,325
-----------
746,225
-----------
Electronic & Electrical (3.1%)
10,000 Benchmark Electronics, Inc. (b)........................ 383,750
5,700 DSP Group, Inc. (b).................................... 226,219
8,900 Oak Industries, Inc. (b)............................... 383,256
-----------
993,225
-----------
Electronic Components/Instruments (1.5%)
13,200 Kent Electronics Corp. (b)............................. 229,350
12,250 Vishay Intertechnology, Inc. (b)....................... 261,844
-----------
491,194
-----------
Electronic Measur Instrument (0.5%)
17,000 PSC Inc. (b)........................................... 167,875
-----------
Energy (1.0%)
11,200 McDermott International, Inc. ......................... 315,700
-----------
Entertainment Software (1.3%)
15,200 Thq Inc. (b)........................................... 426,550
-----------
Financial Services (1.6%)
24,300 Capital Re Corp. ...................................... 326,531
26,900 Resource Bancshares Mortgage Group, Inc. .............. 188,300
-----------
514,831
-----------
Food Processing & Packaging (1.0%)
15,500 Ben & Jerry's Homemade, Inc. (b)....................... 325,500
-----------
Gas Distribution (6.5%)
8,700 CTG Resources, Inc. ................................... 319,181
11,500 Eastern Enterprises.................................... 447,781
29,400 Energen Corp. ......................................... 551,250
9,500 NUI Corp. ............................................. 253,531
20,600 UGI Corp. ............................................. 489,250
-----------
2,060,993
-----------
Health Care (1.5%)
35,000 Curative Health Services, Inc. (b)..................... 205,625
21,100 Sierra Health Services, Inc. (b)....................... 272,981
-----------
478,606
-----------
Heavy Machinery--Industrial, Farm, Construction (0.5%)
8,300 Scott Technologies Inc. ............................... 152,513
-----------
Hotels & Lodging (1.1%)
32,300 Prime Hospitality Corp. (b)............................ 353,281
-----------
</TABLE>
Continued
63
<PAGE>
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Security Market
Shares Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Identification Systems (1.6%)
52,900 Paxar Corp. (b)........................................ $ 519,081
-----------
Industrial (0.5%)
25,500 DT Industries, Inc. ................................... 159,375
-----------
Insurance (2.8%)
20,900 ARM Financial Group, Inc. Class A...................... 104,500
12,400 Fidelity National Financial, Inc. ..................... 216,225
24,900 Frontier Insurance Group, Inc. ........................ 365,719
11,200 Harleysville Group, Inc. .............................. 218,400
-----------
904,844
-----------
Investment Company (1.4%)
20,200 Allied Capital Corp. .................................. 454,500
-----------
Machinery Farm (0.7%)
10,400 Gehl Co. .............................................. 222,300
-----------
Manufacturing (5.1%)
29,600 Esterline Technologies Corp. (b)....................... 456,950
27,400 Mark IV Industries, Inc. .............................. 585,674
19,000 Smith A.O. Corp. ...................................... 553,375
-----------
1,595,999
-----------
Metal & Mineral Production (1.0%)
29,400 Intermet Corp. ........................................ 334,425
-----------
Metals (1.0%)
11,800 Quanex Corp. .......................................... 311,225
-----------
Metals & Mining (2.0%)
10,000 Cleveland Cliffs, Inc. ................................ 320,000
24,000 RTI International Metals, Inc. (b)..................... 309,000
-----------
629,000
-----------
Oil & Gas--Exploration & Production Services (0.8%)
11,900 Valero Energy Corp. ................................... 254,363
-----------
Oil & Gas Exploration, Production, & Services (0.8%)
24,300 Swift Energy Co. (b)................................... 253,631
-----------
Oilfield Equipment & Services (2.2%)
9,500 Tidewater, Inc. ....................................... 314,094
25,500 Tuboscope, Inc. (b).................................... 382,500
-----------
696,594
-----------
Paper Products (2.1%)
4,100 Chesapeake Corp. ...................................... 127,613
39,100 P.H. Glatfelter and Co. ............................... 544,956
-----------
672,569
-----------
Printing & Publishing (1.6%)
20,300 Banta Corp. ........................................... 499,888
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Publishing (1.1%)
11,900 Big Flower Holdings, Inc. (b).......................... $ 355,513
-----------
Research & Development (1.3%)
15,800 URS Corp. (b).......................................... 410,800
-----------
Retail (4.1%)
45,900 Catherines Stores Corp. (b)............................ 602,438
16,500 Neiman Marcus Group, Inc. (b).......................... 412,500
24,400 Value City Department Stores, Inc. (b)................. 300,425
-----------
1,315,363
-----------
Software & Computer Services (0.6%)
22,600 Mapics Inc. (b)........................................ 183,625
-----------
Steel (0.8%)
39,200 Armco, Inc. (b)........................................ 257,250
-----------
Technology--Services (Data Processing) (1.5%)
11,600 SPS Technologies, Inc. (b)............................. 474,875
-----------
Telecommunications (0.5%)
12,200 Advanced Communication Systems, Inc. (b)............... 160,125
-----------
Telecommunications-Services and Equipment (0.9%)
10,000 Transaction NeTwork Services, Inc. (b)................. 289,375
-----------
Television (1.5%)
25,500 Sinclair Broadcast Group Class A (b)................... 482,906
-----------
Tobacco & Tobacco Products (1.6%)
17,000 Universal Corp. ....................................... 511,063
-----------
Transportation (2.8%)
24,300 Circle International Group, Inc. ...................... 583,200
20,600 Heartland Express, Inc. (b)............................ 318,013
-----------
901,213
-----------
Utilities--Electric (0.9%)
10,000 Alliant Energy Corp. .................................. 288,750
-----------
Total Common Stocks (Cost $30,564,925) 31,496,952
-----------
Investment Company (1.2%)
383,265 One Group Prime Money Market Fund (Class I Shares)..... 383,265
-----------
Total Investment Company (Cost $383,265) 383,265
-----------
Total Investments
(Cost $30,948,190) (a)--99.7% 31,880,217
Other assets in excess of liabilities--0.3% 107,012
-----------
Total Net Assets--100.0% $31,987,229
===========
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
$4,997. Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 3,739,822
Unrealized depreciation... (2,812,793)
-----------
Net unrealized
appreciation.............. $ 927,029
===========
</TABLE>
(b) Non income producing security
See notes to financial statements.
64
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments
July 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (59.5%)
Aerospace/Defense (1.3%)
57,110 B.F. Goodrich Co. ..................................... $ 2,370,065
-----------
Airlines (0.5%)
36,885 Comair Holdings, Inc. ................................. 901,377
-----------
Automotive (0.7%)
26,950 Ford Motor Co. ........................................ 1,310,444
-----------
Banking (4.5%)
28,278 BankAmerica Corp. ..................................... 1,876,952
40,470 BancOne Corp. ......................................... 2,208,144
32,620 Chase Manhattan Corp. ................................. 2,507,663
57,350 U.S. Bancorp .......................................... 1,785,019
-----------
8,377,778
-----------
Beverages (0.9%)
40,650 Pepsico, Inc. ......................................... 1,590,431
-----------
Chemicals (0.5%)
29,550 Air Products & Chemicals Inc. ......................... 988,078
-----------
Computers & Peripherals (6.7%)
92,586 Cisco Systems, Inc. (b)................................ 5,751,905
16,460 Dell Computer Corp. (b)................................ 672,803
58,580 EMC Corp. (b).......................................... 3,547,751
35,290 Sun Microsystems, Inc. (b)............................. 2,395,309
-----------
12,367,768
-----------
Consumer Goods & Services (1.1%)
6,750 Clorox Co. ............................................ 756,000
30,355 Newell Rubbermaid, Inc. ............................... 1,312,854
-----------
2,068,854
-----------
Diversified Operations (2.1%)
20,360 Corning Inc. .......................................... 1,425,200
25,400 Tyco International, Ltd. .............................. 2,481,263
-----------
3,906,463
-----------
Electrical & Electronic (2.2%)
15,660 Sanmina Corp. (b)...................................... 1,022,794
17,740 Solectron Corp. (b).................................... 1,143,121
13,570 Texas Instruments, Inc. ............................... 1,954,080
-----------
4,119,995
-----------
Electrical Equipment (1.7%)
34,040 American Power Conversion Corp. (b).................... 706,330
21,500 General Electric Co. .................................. 2,343,500
-----------
3,049,830
-----------
Financial Services (5.0%)
11,110 Capital One Financial Corp. ........................... 515,226
16,797 CitiGroup Inc. ........................................ 748,516
29,600 Deluxe Corp. .......................................... 1,110,000
22,750 Freddie Mac............................................ 1,305,281
11,610 Morgan Stanley Dean Witter & Co. ...................... 1,046,351
39,825 Paychex, Inc. ......................................... 1,117,589
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Financial Services, continued
51,805 T. Rowe Price Associates, Inc. ........................ $ 1,813,176
45,853 Washington Mutual, Inc. ............................... 1,573,331
-----------
9,229,470
-----------
Health Care (0.6%)
23,370 McKesson HBOC, Inc. ................................... 725,931
51,126 Total Renal Care Holdings, Inc. (b).................... 428,180
-----------
1,154,111
-----------
Insurance (2.4%)
7,522 American International Group, Inc. .................... 873,492
25,855 Marsh & McLennan Companies, Inc. ...................... 1,964,980
30,160 XL Capital Ltd. ....................................... 1,583,400
-----------
4,421,872
-----------
Leisure--Recreation, Gaming (0.8%)
30,170 Carnival Corp. ........................................ 1,401,019
-----------
Machinery--Diversified (0.8%)
19,790 Applied Materials, Inc. (b)............................ 1,423,643
-----------
Medical-Biotechnology (1.4%)
18,930 Amgen, Inc. (b)........................................ 1,455,244
18,750 Biomatrix, Inc. ....................................... 384,375
11,920 PE Corp.-PE Biosystems Group........................... 668,265
-----------
2,507,884
-----------
Office Equipment & Services (0.5%)
14,730 Pitney Bowes, Inc. .................................... 937,196
-----------
Oil & Gas Exploration, Production, & Services (1.8%)
26,520 Exxon Corp. ........................................... 2,105,025
51,070 Ultramar Diamond Shamrock Corp. ....................... 1,206,529
-----------
3,311,554
-----------
Pharmaceuticals (4.9%)
38,540 Elan Corp. PLC, ADR (b)................................ 1,120,069
14,140 Lilly (Eli) & Co. ..................................... 927,938
54,465 Pfizer Inc. ........................................... 1,848,406
23,895 Pharmacia & Upjohn, Inc. .............................. 1,285,850
37,470 Schering-Plough Corp. ................................. 1,836,030
30,045 Warner Lambert Co. .................................... 1,982,969
-----------
9,001,262
-----------
Pipelines (0.6%)
26,440 The Williams Co., Inc. ................................ 1,112,133
-----------
Publishing (1.2%)
43,800 McGraw-Hill Co., Inc. ................................. 2,228,325
-----------
Restaurants (0.4%)
30,910 Starbucks Corp. (b).................................... 718,658
-----------
</TABLE>
Continued
65
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Retail (5.3%)
46,613 Dollar General Corp. ................................ $ 1,232,331
26,770 Kohl's Corp. (b)..................................... 2,036,192
36,350 Lowes Co., Inc. ..................................... 1,917,463
50,770 Office Depot, Inc. (b)............................... 951,938
38,058 Gap, Inc. ........................................... 1,779,212
17,770 Wal-Mart Stores, Inc. ............................... 750,783
36,830 Walgreen Co. ........................................ 1,042,749
------------
9,710,668
------------
Retail-Food Chain (0.3%)
14,470 Whole Foods Market, Inc. (b)......................... 636,680
------------
Software & Computer Services (3.3%)
26,690 BMC Software, Inc. (b)............................... 1,437,924
62,380 Compuware Corp. (b).................................. 1,731,045
24,670 Microsoft Corp. (b).................................. 2,116,994
27,360 Sterling Commerce Inc. .............................. 718,200
------------
6,004,163
------------
Telecommunications-Services and Equipment (6.9%)
27,100 ALLTEL Corp. ........................................ 1,946,119
43,435 AT&T Corp. .......................................... 2,255,904
22,245 CenturyTel, Inc...................................... 950,974
27,840 Lucent Technologies, Inc. ........................... 1,811,340
34,000 MCI Worldcom, Inc. (b)............................... 2,804,999
23,030 Nortel Networks Corp. ............................... 2,041,034
18,780 Tellabs, Inc. ....................................... 1,156,144
------------
12,966,514
------------
Transportation (1.1%)
36,950 Kansas City Southern Industries,
Inc. ............................................... 2,041,488
------------
Total Common Stocks (Cost $79,085,821) 109,857,723
------------
Asset Backed Securities (0.6%)
Financial Services (0.6%)
1,300,000 Chemical Master Credit Card Trust, Series 1996-1,
Class A, 5.55%, 9/15/03............................. 1,294,852
------------
Total Asset Backed Securities (Cost $1,253,976) 1,294,852
------------
Corporate Bonds (13.6%)
Banking--Foreign (0.7%)
1,000,000 Abbey National PLC, 6.69%, 10/17/05.................. 986,250
325,000 Bayerische Landesbank-NY, 6.20%, 2/9/06.............. 309,563
------------
1,295,813
------------
Diversified Operations (0.5%)
1,000,000 Warner Lambert, 6.625%, 9/15/02...................... 1,008,750
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds, continued
Financial Services (9.2%)
1,000,000 Federal Home Loan Bank, 6.03%, 11/6/02................ $ 997,550
2,000,000 Ford Motor Credit Co., 5.80%, 1/12/09................. 1,802,500
500,000 Ford Motor Credit Co., 6.13% 4/28/03.................. 488,125
2,000,000 Freddie Mac, 5.00%, 1/15/04........................... 1,891,420
1,300,000 JP Morgan & Co., 6.25%, 1/15/09....................... 1,212,250
515,000 JP Morgan & Co., 7.25%, 1/15/02....................... 522,725
1,000,000 Merrill Lynch and Co., 6.55%, 8/1/04.................. 988,750
1,200,000 Merrill Lynch and Co., 6.00%, 2/17/09................. 1,093,500
2,000,000 Merrill Lynch and Co., 6.00%, 2/12/03................. 1,960,000
1,000,000 Morgan Stanley Group, Inc., 5.75%, 10/8/99............ 1,000,630
1,000,000 Norwest Financial, Inc., 6.38%, 11/15/03.............. 991,250
1,000,000 Private Export Funding, 5.50%, 3/15/01................ 992,500
1,647,389 Small Business Administration Corp., 6.70%, 3/1/16.... 1,633,712
1,500,000 Transamerica Financial Corp., 6.38%, 11/15/01......... 1,498,125
-----------
17,073,037
-----------
Food Processing & Packaging (0.3%)
500,000 Campbell Soup Co., 5.63%, 9/15/03, Callable On 9/15/00
@ 100................................................ 486,250
-----------
Multimedia (1.0%)
2,000,000 Walt Disney Co., 5.13%, 12/15/03...................... 1,892,500
-----------
Pharmaceuticals (0.8%)
1,467,000 Lilly (Eli) & Co., 6.25%, 3/15/03..................... 1,461,499
-----------
Retail (0.6%)
1,000,000 Wal-Mart Stores, 7.50%, 5/15/04....................... 1,041,250
-----------
Telecommunications-Services and Equipment (0.5%)
1,000,000 Pacific Bell, 6.25%, 3/1/05........................... 975,000
-----------
Total Corporate Bonds (Cost $26,085,237) 25,234,099
-----------
Medium Term/Senior Notes (2.3%)
Chemicals (2.1%)
4,000,000 Dupont (EI) De Nemours Co., 6.00%, 3/6/13, Call date
3/6/03 @ 100......................................... 3,970,000
-----------
Financial Services (0.2%)
500,000 Bell Atlantic Financial Services, 6.25%, 6/1/00....... 501,175
-----------
Total Medium Term/Senior Notes (Cost $4,613,543) 4,471,175
-----------
</TABLE>
Continued
66
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 1999
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Private Placement (1.5%)
Research & Development (1.5%)
3,000,000 Bayer Corp., 6.50%, 10/1/02 (c) acquisition date
6/21/99.............................................. $ 3,000,000
-----------
Total Private Placement (Cost $3,106,930) 3,000,000
-----------
U.S. Government Agencies (2.9%)
Federal National Mortgage Association (1.7%)
1,000,000 5.75%, 6/15/05........................................ 967,090
2,000,000 6.00%, 5/15/08........................................ 1,906,620
-----------
2,873,710
-----------
Electric Utility (1.6%)
3,000,000 Tennessee Valley Authority, 5.38%, 11/13/08........... 2,724,360
-----------
Total U.S. Government Agencies (Cost $6,197,361) 5,598,070
-----------
U.S. Treasury Bonds (10.3%)
950,000 9.38%, 2/15/06........................................ 1,118,407
295,000 12.00%, 8/15/13....................................... 410,498
3,455,000 7.25%, 5/15/16........................................ 3,765,190
6,345,000 7.13%, 2/15/23........................................ 6,949,551
7,000,000 6.25%, 8/15/23........................................ 6,948,130
-----------
Total U.S. Treasury Bonds (Cost $19,266,620) 19,191,776
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
U.S. Treasury Notes (4.9%)
1,375,000 6.88%, 8/31/99........................................ $ 1,377,404
2,220,000 6.38%, 5/15/00........................................ 2,238,737
1,480,000 6.25%, 2/15/03........................................ 1,499,077
600,000 7.25%, 5/15/04........................................ 632,754
2,675,000 6.50%, 5/15/05........................................ 2,739,253
800,000 6.25%, 2/15/07........................................ 808,576
------------
Total U.S. Treasury Notes (Cost $9,180,351) 9,295,801
------------
Depository Receipts (0.5%)
Depository Receipts (0.5%)
8,260 S & P 500 Depository Receipt.......................... 1,097,031
------------
Total Depository Receipts (Cost $1,019,324) 1,097,031
------------
Investment Company (2.4%)
4,521,839 One Group Prime Money Market Fund (Class I shares).... 4,521,839
------------
Total Investment Company (Cost $4,521,839) 4,521,839
------------
Total Investments (Cost $154,331,002) (a)--99.5% 183,562,366
Other assets in excess of liabilities--0.5% 886,811
------------
Total Net Assets--100.0% $184,449,177
============
</TABLE>
- --------
(a) Represents cost for financial reporting purposes and for federal income tax
purposes and differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.... $34,791,034
Unrealized depreciation.... (5,559,670)
-----------
Net unrealized
appreciation............... $29,231,364
===========
</TABLE>
(b) Non-income producing security.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers.
ADR--American Depository Receipt
PLC--Public Limited Company
See notes to financial statements.
67
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements
July 31, 1999
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 an 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, Growth and Income Fund, New Asia Growth Fund,
Diversified Fixed Income Fund, U.S. Treasury Securities Fund, Short
Intermediate U.S. Treasury Securities Fund, Tax-Free Securities Fund, Tax-
Free Short Intermediate Securities Fund, International Stock Fund, Value
Fund and Small Cap Fund, and Balanced Fund. International Stock Fund
commenced operations on December 2, 1998 and Value Fund and Small Cap Fund
commenced operations December 3, 1998. Balanced Fund commenced operations on
June 21, 1999. The Trust is authorized to issue an unlimited number of
shares without par value in three classes of shares for each Fund: Class A
(formerly known as Retail Class), Class B and Class Y (formerly known as
Institutional Class). The Class Y shares for Growth Stock Fund, U.S.
Treasury Securities Fund and Short Intermediate U.S. Treasury Securities
Fund commenced operations on October 14, 1994 when the Trust identified
those Institutional Shareholders that were part of Class A (as of October
13, 1994) and transferred the Shareholders into Class Y. As of July 31,
1999, Growth Stock Fund, Growth and Income Fund, New Asia Growth Fund,
Diversified Fixed Income Fund, Tax-Free Securities Fund, International Stock
Fund, Value Fund, Small Cap Fund, and Balanced Fund have issued Class B
shares. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by Class A
and B 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
primarily long-term capital appreciation and secondarily, dividend income.
Growth and Income Fund and Balanced Fund seek primarily current income and
secondarily long-term capital appreciation. New Asia Growth Fund and
International Stock Fund seek long-term capital appreciation. Diversified
Fixed Income Fund seeks a high level of current income. U.S. Treasury
Securities Fund and Short Intermediate U.S. Treasury Securities Fund seek
primarily a high level of current income consistent with prudent risk of
capital and secondarily, capital appreciation. Tax-Free Securities Fund
seeks a high level of current income exempt from federal and Hawaii income
taxes. Tax-Free Short Intermediate Securities Fund seeks a high level of
current income exempt from federal and Hawaii income taxes with a greater
stability in price than a long-term bond fund. Value Fund seeks to provide
long-term capital appreciation and secondarily, current income. Small Cap
Fund seeks long-term capital appreciation.
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 Pacific Century
Trust (the "Adviser") under the supervision of the Trust's Board of
Trustees. Investments in investment companies are valued at their respective
net asset values as reported by such companies. Money market instruments and
other debt securities maturing in 60 days or less are valued at amortized
cost, which approximates market value. Investments in foreign securities,
currency holdings and other assets and liabilities of New Asia Growth Fund
and International Stock Fund are valued based on quotations from the primary
market in which they are traded and translated from the local currency into
U.S. dollars using current exchange rates. The differences between the costs
and market values of securities are reflected as either unrealized
appreciation or depreciation.
Continued
68
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Securities Transactions and Related Income
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium
or accretion of discount. Dividend income is recorded on the ex-dividend
date and is reduced by applicable foreign taxes withheld. Gains or losses
realized from sales of securities are determined by comparing the identified
cost of the security lot sold with the net sales proceeds.
Foreign Currency Translation:
The New Asia Growth Fund and International Stock Fund isolate 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 differences between the amounts of
assets and liabilities recorded and the U.S. dollar equivalents of the
amounts actually received or paid. Net unrealized foreign currency
appreciation or depreciation arises from changes in the values 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 or industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available to
the New Asia Growth Fund and International Stock Fund and, to a lesser
extent, Growth Fund, Growth and Income Fund and Value Fund and may 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 Funds' understanding of applicable countries' tax rules and rates.
Forward Currency Exchange Contracts:
The New Asia Growth Fund and International Stock Fund may from time to time
enter into foreign currency exchange transactions to convert to and from
different foreign currencies. These Funds may enter into currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market, or use forward currency contracts to
purchase or to sell foreign currencies. A forward foreign currency contract
is an obligation by a Fund to purchase or to sell a specific currency at a
future date at a price set at the time of the contract. These Funds 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. A Fund could
be exposed to risk if a counterparty
Continued
69
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
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 basis. 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 values of securities underlying when-issued or
forward commitments to purchase securities, and any subsequent fluctuation
in their values, are 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 the Adviser
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 ("a 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, Growth and
Income Fund, Value Fund and Balanced Fund. Dividends from net investment
income are declared and paid quarterly for the New Asia Growth Fund, Small
Cap Fund and International Stock Fund. Distributable net realized capital
gains, if any, are declared and distributed annually. The amounts of
dividends from net investment income and of distributions from net realized
gains are determined in accordance with federal income tax regulations,
which may differ from generally accepted accounting principles. These
"book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the composition of net assets based on their
federal tax-basis treatment; temporary differences do not require
reclassification.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
Continued
70
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
As of July 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
additional paid-in-capital:
<TABLE>
<CAPTION>
Undistributed Accumulated Undistributed Net
(Distributions in Excess of) Realized Gains (Losses) on Investments
Net Investment Income (and Foreign Currency Transactions)
---------------------------- --------------------------------------
<S> <C> <C>
Growth Stock Fund....... 1,366,528 (1,366,528)
Growth and Income Fund.. 49,346 (49,346)
New Asia Growth Fund.... 103,592 86,204
Diversified Fixed Income
Fund................... (2,458) 2,458
U.S. Treasury Fund...... 2,209 --
International Stock
Fund................... (777,757) 782,122
Value Stock Fund........ 28,027 (24,600)
Small Cap Fund.......... 3,754 (43)
Balanced Fund........... 7,766 --
</TABLE>
Federal Income Taxes
It is the policy of each Fund to comply timely with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net investment company and net capital gains
to shareholders. Therefore, no federal income tax provision is required.
(Under the applicable foreign tax laws, withholding taxes may be imposed on
interest, dividends and capital gains earned on foreign investments at
various rates. Where available, the Fund will file claims for all refunds on
foreign taxes withheld.)
Concentration of 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 on other appropriate basis.
3. Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 1999 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Growth Stock Fund................................... $312,733,656 $379,669,645
Growth and Income Fund.............................. 111,132,509 135,601,840
New Asia Growth Fund................................ 22,794,450 26,348,441
Diversified Fixed Income Fund....................... 157,921,732 108,360,497
U.S. Treasury Securities Fund....................... 2,085,445 2,593,719
Short Intermediate U.S. Treasury Securities Fund.... 25,997,096 17,406,477
Tax-Free Securities Fund............................ 52,214,736 41,510,669
Tax-Free Short Intermediate Securities Fund......... 8,535,172 17,053,148
International Stock Fund............................ 149,825,608 85,961,676
Value Fund.......................................... 130,950,567 62,946,261
Small Cap Fund...................................... 45,885,612 16,540,519
Balanced Fund....................................... 10,299,618 9,979,477
</TABLE>
Continued
71
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
4. Related Party Transactions
Investment advisory services are provided to the Trust by Pacific Century
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 Funds.
Nicholas-Applegate Capital Management is the Sub-Adviser to the
International Stock Fund and the Small Cap Fund. As of July 19, 1999 CMG
First State (Hong Kong) LLC has become the new Sub-Adviser to the New Asia
Growth Fund. Their fees are paid by the Adviser out of its investment
advisory fees.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
BISYS Fund Services, Inc. ("BISYS Services") and BISYS Fund Services Ohio,
Inc. ("BISYS Ohio") are subsidiaries of The BISYS Group, Inc. BISYS, with
whom certain officers and a trustee of the Trust are affiliated, serves the
Trust as principal underwriter and distributor. Such officers and trustee
are not paid any fees directly by the Funds for serving as officers and
trustee of the Trust. BISYS Ohio serves the Trust as administrator. Under
the terms of a management and administration agreement, BISYS Ohio's fees
are computed at an annual rate of 0.20% of the average daily net assets of
each Fund.
The Trust has adopted for the Class A and Class B shares of each of the
Funds a Class A Distribution Plan and a Class B Distribution Plan ("the
Plans") pursuant to Rule 12b-1 under the 1940 Act. Under the Plans, each
Fund pays BISYS a fee, not to exceed, on an annual basis, 0.75% and 1.00%,
respectively, of the average daily net assets attributable to the Class A
and Class B shares of each Fund. These fees are for payments BISYS makes to
banks, including the Adviser, other institutions and broker/dealers, and for
expenses BISYS and any of its affiliates or subsidiaries incur for providing
distribution or shareholder service assistance.
Class A shares of the Growth Stock Fund, Growth and Income Fund, Value Fund,
Balanced Fund, Tax-Free Securities Fund, Diversified Fixed Income Fund and
U.S. Treasury Securities Fund are subject to a 4.00% sales charge at the
time of purchase. Class A shares of the New Asia Growth Fund, Small Cap Fund
and International Stock Fund are subject to a 5.25% sales charge at the time
of purchase. Class A shares of the Tax-Free Short Intermediate Securities
Fund and Short Intermediate U.S. Treasury Securities Fund are subject to a
2.25% sales charge at the time of purchase. Class B shares are subject to a
Contingent Deferred Sales Charge (CDSC) on redemptions of shares made within
six years of purchase. The applicable CDSC is equal to a percentage of the
lesser of the net asset value per share (NAV) at the date of the original
purchase or at the date of redemption, according to the following chart:
<TABLE>
<CAPTION>
Year of Redemption CDSC
------------------ ----
<S> <C>
First.................................................................... 5%
Second................................................................... 4
Third.................................................................... 3
Fourth................................................................... 3
Fifth.................................................................... 2
Sixth.................................................................... 1
</TABLE>
For the year ended July 31, 1999, BISYS, as the Trust's principal
underwriter, received approximately $948,320 from commissions on sales of
Class A shares and redemptions of Class B shares, of which $934,544 was
reallowed to other dealers.
BISYS Ohio serves the Trust as fund accountant. Under the terms of a fund
accounting agreement, BISYS Ohio is entitled to receive fees based on a
percentage of average daily net assets of each Fund and is reimbursed for
certain out-of-pocket expenses incurred in providing fund accounting
services.
BISYS Services serves as the Transfer Agent for the Funds. Under the terms
of transfer agency agreement, BISYS 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.
Continued
72
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Information regarding these transactions for the year ended July 31,1999 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 Total
Daily Net Assets Reduced Reduced Class A Waivers
---------------- ----------- -------------- ----------- --------
<S> <C> <C> <C> <C> <C>
Growth Stock Fund....... 0.80% $ -- $158,706 $78,971 $237,677
Growth and Income Fund.. 0.80% -- 70,353 43,490 113,843
New Asia Growth Fund.... 0.90% -- 8,281 9,011 17,292
Diversified Fixed Income
Fund................... 0.60% 277,623 74,033 11,289 362,945
U.S. Treasury Securities
Fund................... 0.60% 57,912 9,266 6,116 73,294
Short Intermediate U.S.
Treasury Securities
Fund................... 0.50% 54,052 14,213 3,476 71,741
Tax-Free Securities
Fund................... 0.60% 640,669 170,846 21,126 832,641
Tax-Free Short
Intermediate Securities
Fund................... 0.50% 50,048 25,025 3,834 78,907
International Stock
Fund................... 1.10% 40,593 16,233 110 56,936
Value Fund.............. 0.80% -- 15,882 295 16,177
Small Cap Fund.......... 1.10% 20,458 8,183 178 28,819
Balanced................ 0.80% 21,369 8,547 22 29,938
</TABLE>
Continued
73
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
5. Capital Share Transactions
Transactions in capital shares for the Trust were as follows:
<TABLE>
<CAPTION>
Growth Stock Fund Growth and Income Fund
------------------------- ------------------------
Amount Shares Amount Shares
------------- ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares
Shares issued........... $ 5,567,956 324,247 $ 4,009,071 221,903
Dividends reinvested.... 2,120,376 136,975 899,797 51,799
Shares redeemed......... (4,157,484) (239,029) (2,341,596) (125,318)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 3,530,848 222,193 $ 2,567,272 148,384
============= ========== ============ ==========
Class B Shares
Shares issued........... $ 8,572,370 495,581 $ 6,024,874 325,558
Dividends reinvested.... 370,730 24,073 382,330 22,164
Shares redeemed......... (412,189) (23,922) (401,322) (21,784)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 8,530,911 495,732 $ 6,005,882 325,938
============= ========== ============ ==========
Class Y Shares
Shares issued........... $ 65,521,478 3,881,437 $ 50,169,553 2,794,866
Dividends reinvested.... 53,722,758 3,454,840 14,156,402 814,961
Shares redeemed......... (113,561,531) (6,637,541) (73,693,810) (4,043,070)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 5,682,705 698,736 $ (9,367,855) (433,243)
============= ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1998 July 31, 1998
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares
Shares issued........... $ 3,744,760 216,021 $ 2,912,762 164,933
Dividends reinvested.... 1,239,385 82,407 372,456 23,296
Shares redeemed......... (1,370,344) (81,528) (771,818) (44,668)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 3,613,801 216,900 $ 2,513,400 143,561
============= ========== ============ ==========
Class B Shares
Shares issued........... $ 1,456,711 83,868 $ 2,203,968 119,054
Dividends reinvested.... -- -- 16 1
Shares redeemed......... (26,704) (1,539) (39,676) (2,134)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 1,430,007 82,329 $ 2,164,308 116,921
============= ========== ============ ==========
Class Y Shares
Shares issued........... $ 56,189,401 3,354,162 $ 56,280,388 3,189,329
Shares issued in
conjunction with common
trust fund conversion.. 120,286,123 8,205,056 -- --
Dividends reinvested.... 28,765,229 1,908,676 10,842,366 669,602
Shares redeemed......... (64,246,853) (3,777,051) (39,704,663) (2,244,480)
------------- ---------- ------------ ----------
Net increase/(decrease). $ 140,993,900 9,690,843 $ 27,418,091 1,614,451
============= ========== ============ ==========
</TABLE>
Continued
74
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
5. Capital Share Transactions (continued)
<TABLE>
<CAPTION>
New Asia Diversified Fixed
Growth Fund Income Fund
------------------------ ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............ $ 355,078 39,637 $ 1,603,128 143,849
Dividends reinvested..... 5,349 725 129,913 11,853
Shares redeemed.......... (514,827) (69,461) (849,801) (78,335)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ (154,400) (29,099) $ 883,240 77,367
============ ========== ============ ==========
Class B Shares:
Shares issued............ $ 191,310 20,269 $ 2,004,483 184,881
Dividends reinvested..... 28 3 42,004 3,892
Shares redeemed.......... (10,144) (1,127) (108,492) (10,026)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 181,194 19,145 $ 1,937,995 178,747
============ ========== ============ ==========
Class Y Shares:
Shares issued............ $ 5,302,282 694,216 $103,121,720 9,378,239
Dividends reinvested..... 24,640 3,330 1,428,146 126,826
Shares redeemed.......... (11,100,512) (1,479,074) (53,846,034) (4,876,355)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ (5,773,590) (781,528) $ 50,703,832 4,628,710
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1998 July 31, 1998
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............ $ 469,353 46,993 $ 817,809 76,334
Dividends reinvested..... 228,503 26,391 70,402 6,514
Shares redeemed.......... (613,470) (68,170) (529,156) (48,813)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 84,386 5,214 $ 359,055 34,035
============ ========== ============ ==========
Class B Shares:
Shares issued............ $ 88,860 10,584 $ 235,079 21,588
Dividends reinvested..... -- -- 1,660 152
Shares redeemed.......... (943) (111) (945) (86)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 87,917 10,473 $ 235,794 21,654
============ ========== ============ ==========
Class Y Shares:
Shares issued............ $ 10,352,449 1,199,997 $ 48,477,915 4,460,189
Shares issued in
conjunction with common
trust fund conversion... -- -- 8,914,400 817,085
Dividends reinvested..... 1,553,437 176,588 61,265 5,625
Shares redeemed.......... (3,618,366) (408,645) (34,180,770) (3,131,037)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 8,287,520 967,940 $ 23,272,810 2,151,862
============ ========== ============ ==========
</TABLE>
Continued
75
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
5. Capital Share Transactions (continued)
<TABLE>
<CAPTION>
Short Intermediate U.S.
U.S. Treasury Treasury Secuirties
Securities Fund Fund
--------------------- ------------------------
Amount Shares Amount Shares
----------- -------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
--------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............... $ 347,379 36,366 $ 134,779 13,856
Dividends reinvested........ 56,684 5,896 33,944 3,482
Shares redeemed............. (71,552) (7,578) (211,156) (22,095)
----------- -------- ------------ ----------
Net increase/(decrease)..... $ 332,511 34,684 $ (42,433) (4,757)
=========== ======== ============ ==========
Class Y Shares:
Shares issued............... $ 1,037,080 106,128 $ 68,319,253 7,087,034
Dividends reinvested........ 1,184,440 122,917 166,348 16,959
Shares redeemed............. (3,084,323) (321,332) (59,322,193) (6,145,812)
----------- -------- ------------ ----------
Net increase/(decrease)..... $ (862,803) (92,287) $ 9,163,408 958,181
=========== ======== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1998 July 31, 1998
--------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............... $ 142,785 15,083 $ 324,234 33,871
Dividends reinvested........ 49,496 5,226 29,263 3,051
Shares redeemed............. (212,310) (22,522) (324,935) (33,870)
----------- -------- ------------ ----------
Net increase/(decrease)..... $ (20,029) (2,213) $ 28,562 3,052
=========== ======== ============ ==========
Class Y Shares:
Shares issued............... $ 400,221 41,875 $ 6,940,611 722,116
Shares issued in conjunction
with common trust fund
conversion................. -- -- 9,573,342 995,150
Dividends reinvested........ 1,201,477 126,855 32,845 3,431
Shares redeemed............. (3,689,175) (396,268) (18,666,022) (1,941,708)
----------- -------- ------------ ----------
Net increase/(decrease)..... $(2,087,477) (227,538) $ (2,119,224) (221,011)
=========== ======== ============ ==========
</TABLE>
Continued
76
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
5. Capital Share Transactions (continued)
<TABLE>
<CAPTION>
Tax-Free
Tax-Free Short Intermediate
Securities Fund Securities Fund
------------------------ ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............ $ 4,679,423 430,260 $ 1,030,350 101,503
Dividends reinvested..... 138,960 12,829 28,507 2,811
Shares redeemed.......... (2,904,688) (267,873) (641,337) (63,375)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 1,913,695 175,216 $ 417,520 40,939
============ ========== ============ ==========
Class B Shares:
Shares issued............ $ 1,510,276 141,343 -- --
Dividends reinvested..... 10,908 1,012 -- --
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 1,521,184 142,355 -- --
============ ========== ============ ==========
Class Y Shares:
Shares issued............ $ 59,458,110 5,480,924 $ 15,798,971 1,548,401
Dividends reinvested..... 3,625,344 330,518 224,619 21,933
Shares redeemed.......... (41,845,285) (3,836,063) (19,807,705) (1,945,131)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 21,238,169 1,975,379 $ (3,784,115) (374,797)
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1998 July 31, 1998
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued............ $ 1,640,252 151,580 $ 130,400 12,916
Dividends reinvested..... 38,731 3,587 16,719 1,653
Shares redeemed.......... (1,167,839) (108,228) (389,729) (38,495)
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 511,144 46,939 $ (242,610) (23,926)
============ ========== ============ ==========
Class B Shares:
Shares issued............ $ 267,860 24,963 -- --
Dividends reinvested..... 1,483 137 -- --
Shares redeemed.......... (100) (9) -- --
------------ ---------- ------------ ----------
Net increase/(decrease).. $ 269,243 25,091 -- --
============ ========== ============ ==========
Class Y Shares:
Shares issued............ $ 46,027,274 4,247,313 $ 11,212,917 1,100,661
Shares issued in
conjunction with common
trust fund conversion... 104,600,137 9,658,369 12,804,860 1,259,082
Dividends reinvested..... 1,643,171 152,405 217,024 21,401
Shares redeemed.......... (33,393,862) (3,083,534) (9,180,229) (903,387)
------------ ---------- ------------ ----------
Net increase/(decrease).. $118,876,720 10,974,553 $ 15,054,572 1,477,757
============ ========== ============ ==========
</TABLE>
Continued
77
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
5. Capital Share Transactions (continued)
<TABLE>
<CAPTION>
International Stock Fund Value Fund
--------------------------- ------------------------
Amount Shares Amount Shares
------------- ------------ ------------ ----------
December 3, 1998 to December 3, 1998 to
July 31, 1999 July 31, 1999
--------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued........... $ 282,595 24,417 $ 174,023 16,533
Dividends reinvested.... -- -- 7,047 664
Shares redeemed......... (26,328) (2,297) (40) (4)
------------- ----------- ------------ ----------
Net increase/(decrease). $ 256,267 22,120 $ 181,030 17,193
============= =========== ============ ==========
Class B Shares:
Shares issued........... $ 97,091 8,590 $ 493,364 46,289
Dividends reinvested.... -- -- 17,315 1,638
Shares redeemed......... -- -- (22,829) (2,235)
------------- ----------- ------------ ----------
Net increase/(decrease). $ 97,091 8,590 $ 487,850 45,692
============= =========== ============ ==========
Class Y Shares:
Shares issued........... $ 89,796,240 8,595,103 $ 85,682,451 8,508,208
Dividends reinvested.... -- -- 1,687,218 159,021
Shares redeemed......... (19,338,967) (1,815,482) (14,616,521) (1,394,309)
------------- ----------- ------------ ----------
Net increase/(decrease). $ 70,457,273 6,779,621 $ 72,753,148 7,272,920
============= =========== ============ ==========
<CAPTION>
Small Cap Fund Balanced Fund
--------------------------- ------------------------
Amount Shares Amount Shares
------------- ------------ ------------ ----------
December 3, 1998 to June 21, 1999 to
July 31, 1999 July 31, 1999
--------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A Shares:
Shares issued........... $ 87,711 8,901 $ 64,042 6,296
Dividends reinvested.... 4 -- 91 9
Shares redeemed......... (1,611) (161) -- --
------------- ----------- ------------ ----------
Net increase/(decrease). $ 86,104 8,740 $ 64,133 6,305
============= =========== ============ ==========
Class B Shares:
Shares issued........... $ 75,289 7,715 $ 315,762 31,335
Dividends reinvested.... 1 -- 226 23
------------- ----------- ------------ ----------
Net increase/(decrease). $ 75,290 7,715 $ 315,988 31,358
============= =========== ============ ==========
Class Y Shares:
Shares issued........... $ 46,750,248 4,768,017 $ 84,642 8,314
Shares issued in
conjunction with common
trust fund conversion.. -- -- 189,111,744 18,826,632
Dividends reinvested.... 29 3 -- --
Shares redeemed......... (17,076,259) (1,787,220) (337,200) (33,386)
------------- ----------- ------------ ----------
Net increase/(decrease). $ 29,674,018 2,980,800 $188,859,186 18,801,560
============= =========== ============ ==========
</TABLE>
Continued
78
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
6. Acquisition of Common Trust Funds
On June 21, 1999, the Balanced Fund issued Class Y shares in a tax free
conversion to acquire the assets and liabilities of the Pacific Century
Trust Taxable Bond Common Trust Fund. The following is a summary of Class Y
shares issued, net assets acquired, net asset value per share and unrealized
appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares.................................................. 18,826,632
Net assets of Mutual Fund before the acquisition................ $ 0
Net assets acquired............................................. $189,111,744
Net asset value................................................. $ 10.00
Unrealized appreciation......................................... $ 31,606,480
</TABLE>
On December 14, 1997, the Diversified Fixed Income Fund issued Class Y
shares in a tax free conversion to acquire the assets and liabilities of the
Pacific Century Trust Taxable Bond Common Trust Fund. The following is a
summary of Class Y shares issued, net assets acquired, net asset value per
share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares.................................................. 817,085
Net assets of Mutual Fund before the acquisition................ $145,624,704
Net assets acquired............................................. $ 8,914,400
Net asset value................................................. $ 10.91
Unrealized appreciation......................................... $ 390,015
</TABLE>
On December 14, 1997, the Growth Stock Fund issued Class Y shares in a tax
free conversion to acquire the assets and liabilities of the Pacific Century
Trust Growth Stock Common Trust Fund. The following is a summary of Class Y
shares issued, net assets acquired, net asset value per share and unrealized
appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares.................................................. 8,205,056
Net assets of Mutual Fund before the acquisition................ $204,709,990
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 Class Y shares in
a tax free conversion to acquire the assets and liabilities of the Pacific
Century Trust Tax Exempt Bond Common Trust Fund. The following is a summary
of Class Y shares issued, net assets acquired, net asset value per share and
unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares ................................................. 9,658,369
Net assets of Mutual Fund before the acquisition................ $303,241,433
Net assets acquired............................................. $104,600,137
Net asset value................................................. $ 10.83
Unrealized appreciation......................................... $ 8,372,094
</TABLE>
On December 14, 1997, the Tax-Free Short Intermediate Fund issued Class Y
shares in a tax free conversion to acquire the assets and liabilities of the
Pacific Century Trust Tax Exempt Intermediate Common Trust Fund. The
following is a summary of Class Y shares issued, net assets acquired, net
asset value per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares .................................................. 1,259,082
Net assets of Mutual Fund before the acquisition................. $37,311,626
Net assets acquired.............................................. $12,804,860
Net asset value.................................................. $ 10.17
Unrealized appreciation.......................................... $ 151,948
</TABLE>
Continued
79
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
On December 14, 1997, the Short Intermediate U.S. Treasury Fund issued Class
Y shares in a tax free conversion to acquire the assets and liabilities of
the Pacific Century Trust Short Intermediate Term Common Trust Fund. The
following is a summary of Class Y shares issued, net assets acquired, net
asset value per share and unrealized appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares................................................... 995,150
Net assets of Mutual Fund before the acquisition................. $24,954,307
Net assets acquired.............................................. $ 9,573,342
Net asset value.................................................. $ 9.62
Unrealized appreciation.......................................... $ 114,281
</TABLE>
7. Federal Income Tax Information (unaudited):
Capital Loss Carryforward
At July 31, 1999 the following Funds had net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by the
Treasury regulations:
<TABLE>
<CAPTION>
Amount Expires
---------- -------
<S> <C> <C>
New Asia Growth Fund....................................... $1,915,732 2006
New Asia Growth Fund....................................... 3,726,929 2007
U.S. Treasury Securities Fund.............................. 261,003 2002
U.S. Treasury Securities Fund.............................. 326,761 2003
U.S. Treasury Securities Fund.............................. 3,238,241 2004
U.S. Treasury Securities Fund.............................. 58,103 2005
U.S. Treasury Securities Fund.............................. 38,240 2006
</TABLE>
To the extent that these carryforwards are used to offset future capital
gains, it is probable that the gains will not be distributed to
shareholders.
Long Term Capital Gains Distributions
During the fiscal year ended July 31, 1999 the Funds declared long-term
capital gain distributions as follows:
<TABLE>
<CAPTION>
Long-Term
20%
-----------
<S> <C>
Growth Stock Fund................................................ $64,180,149
Growth and Income Fund........................................... 20,058,257
Diversified Fixed Income Fund.................................... 459,253
Short Intermediate U.S. Treasury Fund............................ 105,486
Tax-Free Securities Fund......................................... 3,570,350
Tax-Free Short Intermediate Securities Fund...................... 200,051
</TABLE>
Dividends Received Deduction
For corporate shareholders, the following percentages of the total ordinary
income distributions paid during the fiscal year ended July 31, 1999 qualify
for the corporate dividends received deduction for the following Funds:
<TABLE>
<CAPTION>
Percentage
----------
<S> <C>
Growth and Income Fund............................................. 73.85%
Value Fund......................................................... 14.72%
Small Cap Fund..................................................... 21.94%
Balanced Fund...................................................... 30.50%
</TABLE>
Continued
80
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 1999
Tax-Exempt Income Distributions
During the fiscal year ended July 31, 1999 the Funds declared tax-exempt
income distributions as follows:
<TABLE>
<CAPTION>
Tax-Exempt
Distribution
------------
<S> <C>
Tax-Free Securities Fund......................................... $19,461,339
Tax-Free Short Intermediate Securities Fund...................... 1,802,136
</TABLE>
Post-October Loss Deferral
Capital (and foreign currency) losses incurred after October 31 within a
Fund's fiscal year are deemed to arise on the first business day of the
following fiscal year for tax purposes. The following Funds have incurred
and will elect to defer such capital losses (and foreign currency losses):
<TABLE>
<CAPTION>
Post
October Foreign
Capital Currency
Losses Losses
-------- --------
<S> <C> <C>
New Asia Growth Fund........................................ $111,077 73,141
Diversified Fixed Income Fund............................... 312,808 --
Balanced Fund............................................... 787,032 --
</TABLE>
8. Voting Results of a Special Meeting of the Pacific Capital New Asia Growth
Fund Shareholders (Unaudited):
A special meeting of the shareholders of the Pacific Capital Funds was held
on August 23, 1999. At the meeting, shareholders voted on the approval of a
new investment sub-advisory agreement between Pacific Capital Funds, Pacific
Century Trust (as investment adviser of the Fund), and CMG First State (Hong
Kong) LLC (as investment sub-adviser of the Fund).
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Pacific Capital New Asia Growth Fund................ 1,238,672 355 2,272
</TABLE>
81
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth Stock Fund
-------------------------------------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
July 31, 1999 July 31, 1998 July 31, 1997
---------------------------- --------------------------------- ------------------
Class A Class B Class Y Class A Class B (g) Class Y Class A Class Y
------- ------- -------- ------- ----------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 17.75 $17.72 $ 17.81 $ 17.43 $16.36 $ 17.44 $11.89 $ 11.89
------- ------ -------- ------- ------ -------- ------ --------
Investment Activities
Net investment income
(loss)................. (0.08) (0.10) (0.06) (0.04) (0.05) -- 0.03 0.07
Net realized and
unrealized gain on
investments............ 2.80 2.67 2.82 2.99 1.41 3.01 5.55 5.55
------- ------ -------- ------- ------ -------- ------ --------
Total from Investment
Activities............. 2.72 2.57 2.76 2.95 1.36 3.01 5.58 5.62
------- ------ -------- ------- ------ -------- ------ --------
Distributions
Net investment income... -- -- -- -- -- -- (0.03) (0.07)
In excess of net
investment income...... (0.01) -- -- (0.01) -- (0.02) (0.01) --
Net realized gains...... (3.01) (3.01) (3.01) (2.62) -- (2.62) -- --
------- ------ -------- ------- ------ -------- ------ --------
Total Distributions..... (3.02) (3.01) (3.01) (2.63) -- (2.64) (0.04) (0.07)
------- ------ -------- ------- ------ -------- ------ --------
Net Asset Value,
End of Period........... $ 17.45 $17.28 $ 17.56 $ 17.75 $17.72 $ 17.81 $17.43 $ 17.44
======= ====== ======== ======= ====== ======== ====== ========
Total Return (excludes
sales charge)........... 17.40% 16.55% 17.72% 19.58% 8.31%(e) 19.96% 47.02% 47.39%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............ $17,417 $9,988 $382,298 $13,777 $1,459 $375,117 $9,742 $198,407
Ratio of expenses to
average net assets...... 1.32% 2.06% 1.07% 1.32% 2.07%(d) 1.07% 1.32% 1.07%
Ratio of net investment
income (loss) to average
net assets.............. (0.58%) (1.35%) (0.32%) (0.30%) (1.31%)(d) (0.08%) 0.16% 0.45%
Ratio of expenses to
average net assets*..... 1.85% 2.10% 1.11% 1.86% 2.11%(d) 1.11% 1.86% 1.11%
Ratio of net investment
income (loss) to average
net assets*............. (1.12%) (1.39%) (0.36%) (0.84%) (1.35%)(d) (0.12%) (0.38%) 0.41%
Portfolio turnover (f)... 81.02% 81.02% 81.02% 97.03% 97.03% 97.03% 32.20% 32.20%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions
and expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) On October 13, 1994, the Trust identified those Institutional
shareholders that were part of Class A and transferred these shareholders
into Class Y at the prevailing net asset value effective October 14,
1994. The Financial Highlights presented for Class Y reflects operations
and distributions for the period from October 14, 1994 through July 31,
1995.
(b) The Financial Highlights presented for Class A reflects operations and
distributions from the Fund, as a whole, for the period from August 1,
1994 through October 13, 1994 combined with the operations and
distributions of Class A only from the period from October 14, 1994
through July 31, 1995.
(c) 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 Y Class
for the period from October 14, 1994 through July 31, 1995.
(d) Annualized
(e) Not annualized.
(f) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(g) Period from commencement of operations on March 2, 1998.
See notes to financial statements.
82
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth Stock Fund, continued
------------------------------------------
For the For the
Year Ended Period Ended
July 31, 1996 July 31, 1995
----------------- -----------------------
Class A Class Y Class A (b) Class Y (a)
------- -------- ----------- -----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period.......................... $11.71 $ 11.71 $ 9.83 $ 9.89
------ -------- ------ --------
Investment Activities
Net investment income (loss).... 0.07 0.10 0.12 0.11
Net realized and unrealized gain
on investments................. 0.89 0.89 1.87 1.83
------ -------- ------ --------
Total from Investment
Activities..................... 0.96 0.99 1.99 1.94
------ -------- ------ --------
Distributions
Net investment income........... (0.07) (0.10) (0.11) (0.12)
In excess of net investment
income......................... -- -- -- --
Net realized gains.............. (0.22) (0.22) -- --
In excess of net realized gains. (0.49) (0.49) -- --
------ -------- ------ --------
Total Distributions............. (0.78) (0.81) (0.11) (0.12)
------ -------- ------ --------
Net Asset Value, End of Period... $11.89 $ 11.89 $11.71 $ 11.71
====== ======== ====== ========
Total Return (excludes sales
charge)......................... 8.25% 8.53% 20.43% 20.64%(c)
Ratios/Supplementary Data:
Net Assets at end of period
(000)........................... $5,261 $172,565 $3,905 $136,837
Ratio of expenses to average net
assets.......................... 1.34% 1.09% 1.36% 1.13%(d)
Ratio of net investment income
(loss) to average net assets.... 0.60% 0.86% 1.12% 1.30%(d)
Ratio of expenses to average net
assets*......................... 1.88% 1.13% 1.98% 1.21%(d)
Ratio of net investment income
(loss) to average net assets*... 0.06% 0.82% 0.50% 1.23%(d)
Portfolio turnover (f)........... 61.30% 61.30% 32.40% 32.40%
</TABLE>
See notes to financial statements.
83
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth and Income Fund
-----------------------------------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
July 31, 1999 July 31, 1998 July 31, 1997
---------------------------- --------------------------------- ------------------
Class A Class B Class Y Class A Class B (e) Class Y Class A Class Y
------- ------- -------- ------- ----------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $18.72 $18.68 $ 18.75 $17.25 $17.58 $ 17.27 $12.32 $ 12.32
------ ------ -------- ------ ------ -------- ------ --------
Investment Activities
Net investment income
(loss)................. (0.02) (0.08) 0.03 0.03 (0.02) 0.07 0.08 0.11
Net realized and
unrealized gain on
investments............ 2.38 2.25 2.34 3.01 1.12 3.01 5.57 5.58
------ ------ -------- ------ ------ -------- ------ --------
Total from Investment
Activities............. 2.36 2.17 2.37 3.04 1.10 3.08 5.65 5.69
------ ------ -------- ------ ------ -------- ------ --------
Distributions
Net investment income... -- -- (0.03) (0.04) -- (0.07) (0.08) (0.11)
In excess of net
investment income...... -- -- -- -- -- -- (0.01) --
Net realized gains...... (2.19) (2.19) (2.19) (1.53) -- (1.53) (0.63) (0.63)
------ ------ -------- ------ ------ -------- ------ --------
Total Distributions..... (2.19) (2.19) (2.22) (1.57) -- (1.60) (0.72) (0.74)
------ ------ -------- ------ ------ -------- ------ --------
Net Asset Value, End of
Period.................. $18.89 $18.66 $ 18.90 $18.72 $18.68 $ 18.75 $17.25 $ 17.27
====== ====== ======== ====== ====== ======== ====== ========
Total Return (excludes
sales charge)........... 13.67% 12.58% 13.69% 19.10% 6.27%(c) 19.37% 47.59% 47.96%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $9,593 $8,265 $157,891 $6,730 $2,184 $164,706 $3,726 $123,821
Ratio of expenses to
average net assets...... 1.35% 2.09% 1.10% 1.33% 2.08%(b) 1.08% 1.32% 1.07%
Ratio of net investment
income (loss) to average
net assets.............. (0.12%) (0.90%) 0.15% 0.13% (0.73%)(b) 0.38% 0.48% 0.79%
Ratio of expenses to
average net assets*..... 1.89% 2.13% 1.14% 1.87% 2.12%(b) 1.12% 1.86% 1.12%
Ratio of net investment
income (loss) to average
net assets*............. (0.66%) (0.94%) 0.11% (0.41%) (0.77%)(b) 0.34% (0.06%) 0.75%
Portfolio turnover (d)... 65.56% 65.56% 65.56% 75.92% 75.92% 75.92% 74.83% 74.83%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) Annualized
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations on March 2, 1998.
See notes to financial statements.
84
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth and Income Fund, continued
-------------------------------------------
For the For the period from
Year Ended October 14, 1994
July 31, 1996 to July 31, 1995(a)
---------------- -------------------------
Class A Class Y Class A Class Y
------- ------- --------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period....................... $11.44 $ 11.43 $ 10.00 $ 10.00
------ ------- --------- ----------
Investment Activities
Net investment income (loss). 0.16 0.17 0.17 0.20
Net realized and unrealized
gain on investments......... 1.19 1.21 1.44 1.42
------ ------- --------- ----------
Total from Investment
Activities.................. 1.35 1.38 1.61 1.62
------ ------- --------- ----------
Distributions
Net investment income........ (0.15) (0.17) (0.17) (0.19)
In excess of net investment
income...................... (0.01) (0.01) -- --
Net realized gains........... (0.31) (0.31) -- --
------ ------- --------- ----------
Total Distributions.......... (0.47) (0.49) (0.17) (0.19)
------ ------- --------- ----------
Net Asset Value, End of
Period....................... $12.32 $ 12.32 $ 11.44 $ 11.43
====== ======= ========= ==========
Total Return (excludes sales
charge)...................... 11.96% 12.29% 16.35%(c) 16.41%(c)
Ratios/Supplementary Data:
Net Assets at end of period
(000)........................ $1,160 $74,427 $ 328 $ 41,771
Ratio of expenses to average
net assets................... 1.37% 1.11% 1.40%(b) 1.14%(b)
Ratio of net investment income
(loss) to average net assets. 1.03% 1.43% 2.08%(b) 2.47%(b)
Ratio of expenses to average
net assets*.................. 1.91% 1.15% 1.99%(b) 1.22%(b)
Ratio of net investment income
(loss) to average net
assets*...................... 0.49% 1.39% 1.49%(b) 2.39%(b)
Portfolio turnover (d)........ 80.83% 80.83% 12.78% 12.78%
</TABLE>
See notes to financial statements.
85
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
New Asia Growth Fund
--------------------------------------------------------------
For the For the
Year Ended Year Ended
July 31, 1999 July 31, 1998
--------------------------- --------------------------------
Class A Class B Class Y Class A Class B (e) Class Y
------- ------- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 6.35 $ 6.34 $ 6.37 $13.89 $ 9.09 $ 13.94
------ ------ ------- ------ ------ -------
Investment Activities
Net investment income
(loss)................ (0.05) (0.02) (0.06) 0.09 0.04 0.12
Net realized and
unrealized gain (loss)
on investments........ 4.29 4.18 4.33 (6.59) (2.79) (6.63)
------ ------ ------- ------ ------ -------
Total from Investment
Activities............ 4.24 4.16 4.27 (6.50) (2.75) (6.51)
------ ------ ------- ------ ------ -------
Distributions
Net investment income.. -- -- -- -- -- (0.02)
In excess of net
investment income..... (0.02) -- (0.04) -- -- --
Net realized gains..... -- -- -- (1.04) -- (1.04)
------ ------ ------- ------ ------ -------
Total Distributions.... (0.02) -- (0.04) (1.04) -- (1.06)
------ ------ ------- ------ ------ -------
Net Asset Value, End of
Period................. $10.57 $10.50 $ 10.60 $ 6.35 $ 6.34 $ 6.37
====== ====== ======= ====== ====== =======
Total Return (excludes
sales charge).......... 66.99% 65.66% 67.38% (48.84%) (30.25%)(c) (48.76%)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $2,379 $ 311 $15,954 $1,614 $ 66 $14,569
Ratio of expenses to
average net assets..... 2.14% 2.82% 1.90% 2.18% 2.89%(b) 1.93%
Ratio of net investment
income (loss) to
average net assets..... (0.52%) (1.33%) (0.33%) 0.98% 1.70%(b) 1.32%
Ratio of expenses to
average net assets*.... 2.78% 2.95% 2.05% 2.86% 3.35%(b) 2.13%
Ratio of net investment
income (loss) to
average net assets*.... (1.16%) (1.46%) (0.47%) 0.30% 1.24%(b) 1.12%
Portfolio turnover (d).. 152.58% 152.58% 152.58% 129.77% 129.77% 129.77%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) Annualized
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations on March 2, 1998.
See notes to financial statements.
86
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
New Asia Growth Fund, continued
--------------------------------------------------------------
For the period
from
For the For the February 15, 1995
Year Ended Year Ended to
July 31, 1997 July 31, 1996 July 31, 1995(a)
----------------- ----------------- -----------------------
Class A Class Y Class A Class Y Class A Class Y
------- ------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $11.11 $ 11.14 $11.21 $11.22 $ 10.00 $ 10.00
------ ------- ------ ------ -------- --------
Investment Activities
Net investment income
(loss)................ 0.03 0.06 (0.02) (0.01) 0.02 0.04
Net realized and
unrealized gain (loss)
on
investments........... 2.88 2.87 0.20 0.22 1.19 1.18
------ ------- ------ ------ -------- --------
Total from Investment
Activities............ 2.91 2.93 0.18 0.21 1.21 1.22
------ ------- ------ ------ -------- --------
Distributions
Net investment income.. (0.01) (0.01) -- -- -- --
In excess of net
investment income..... -- -- (0.02) (0.03) -- --
Net realized gains..... (0.12) (0.12) (0.26) (0.26) -- --
------ ------- ------ ------ -------- --------
Total Distributions.... (0.13) (0.13) (0.28) (0.29) -- --
------ ------- ------ ------ -------- --------
Net Asset Value, End of
Period................. $13.89 $ 13.94 $11.11 $11.14 $ 11.21 $ 11.22
====== ======= ====== ====== ======== ========
Total Return (excludes
sales charge).......... 26.31% 26.50% 1.71% 1.99% 12.10%(c) 12.20%(c)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $3,459 $18,376 $1,990 $8,469 $ 330 $ 2,861
Ratio of expenses to
average net assets..... 1.98% 1.72% 2.22% 1.98% 2.24%(b) 1.97%(b)
Ratio of net investment
income (loss) to
average net assets..... 0.20% 0.46% (0.28%) (0.02%) 0.80%(b) 1.18%(b)
Ratio of expenses to
average net assets*.... 2.58% 1.82% 3.58% 2.84% 3.51%(b) 2.74%(b)
Ratio of net investment
income (loss) to
average net assets*.... (0.40%) 0.36% (1.64%) (0.88%) (0.47%)(b) 0.42%(b)
Portfolio turnover (d).. 134.89% 134.89% 86.53% 86.53% 55.62% 55.62%
</TABLE>
See notes to financial statements.
87
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Diversified Fixed Income
------------------------------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
July 31, 1999 July 31, 1998 July 31, 1997
-------------------------- ------------------------------- -----------------
Class A Class B Class Y Class A Class B (e) Class Y Class A Class Y
------- ------- -------- ------- ----------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.92 $10.91 $ 11.00 $10.71 $10.79 $ 10.78 $10.45 $ 10.53
------ ------ -------- ------ ------ -------- ------ --------
Investment Activities
Net investment income.. 0.56 0.48 0.59 0.58 0.23 0.61 0.57 0.60
Net realized and
unrealized gain (loss)
on investments........ (0.43) (0.44) (0.45) 0.21 0.12 0.22 0.35 0.34
------ ------ -------- ------ ------ -------- ------ --------
Total from Investment
Activities............ 0.13 0.04 0.14 0.79 0.35 0.83 0.92 0.94
------ ------ -------- ------ ------ -------- ------ --------
Distributions
Net investment income.. (0.56) (0.48) (0.59) (0.58) (0.23) (0.61) (0.57) (0.60)
In excess of net
investment income..... -- -- -- -- -- -- -- --
Net realized gains..... (0.10) (0.06) (0.07) -- -- -- -- --
In excess of net
realized gains........ -- (0.04) (0.03) -- -- -- (0.09) (0.09)
------ ------ -------- ------ ------ -------- ------ --------
Total Distributions.... (0.66) (0.58) (0.69) (0.58) (0.23) (0.61) (0.66) (0.69)
------ ------ -------- ------ ------ -------- ------ --------
Net Asset Value, End of
Period................. $10.39 $10.37 $ 10.45 $10.92 $10.91 $ 11.00 $10.71 $ 10.78
====== ====== ======== ====== ====== ======== ====== ========
Total Return (excludes
sales charge).......... 1.02% 0.24% 1.10% 7.61% 3.25%(c) 7.94% 9.20% 9.30%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $2,228 $2,078 $199,413 $1,497 $ 236 $158,909 $1,103 $132,583
Ratio of expenses to
average net assets..... 0.98% 1.72% 0.73% 1.02% 1.71%(b) 0.77% 1.15% 0.90%
Ratio of net investment
income to average net
assets................. 5.08% 4.39% 5.34% 5.36% 4.54%(b) 5.61% 5.44% 5.67%
Ratio of expenses to
average net assets*.... 1.67% 1.91% 0.92% 1.65% 1.90%(b) 0.90% 1.69% 0.94%
Ratio of net investment
income to average net
assets*................ 4.39% 4.20% 5.15% 4.73% 4.35%(b) 5.48% 4.90% 5.63%
Portfolio turnover (d).. 60.00% 60.00% 60.00% 57.58% 57.58% 57.58% 80.98% 80.98%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) Annualized
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(e) Period from commencement of operations on March 2, 1998.
See notes to financial statements.
88
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Diversified Fixed Income, continued
--------------------------------------------
For the For the Period From
Year Ended October 14, 1994 to
July 31, 1996 July 31, 1995(a)
----------------- -------------------------
Class A Class Y Class A Class Y
------- -------- --------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period......................... $10.75 $ 10.84 $ 10.00 $ 10.00
------ -------- --------- ----------
Investment Activities
Net investment income.......... 0.59 0.58 0.49 0.55
Net realized and unrealized
gain (loss) on investments.... (0.19) (0.16) 0.74 0.78
------ -------- --------- ----------
Total from Investment
Activities.................... 0.40 0.42 1.23 1.33
------ -------- --------- ----------
Distributions
Net investment income.......... (0.58) (0.61) (0.48) (0.49)
In excess of net investment
income........................ (0.02) (0.02) -- --
Net realized gains............. -- -- -- --
In excess of net realized
gains......................... (0.10) (0.10) -- --
------ -------- --------- ----------
Total Distributions............ (0.70) (0.73) (0.48) (0.49)
------ -------- --------- ----------
Net Asset Value, End of Period.. $10.45 $ 10.53 $ 10.75 $ 10.84
====== ======== ========= ==========
Total Return (excludes sales
charge)........................ 3.69% 3.85% 12.66%(c) 13.70%(c)
Ratios/Supplementary Data:
Net Assets at end of period
(000).......................... $1,093 $161,742 $ 27 $ 54,827
Ratio of expenses to average net
assets......................... 1.15% 0.88% 1.18%(b) 0.93%(b)
Ratio of net investment income
to average net assets.......... 5.31% 5.56% 6.25%(b) 6.71%(b)
Ratio of expenses to average net
assets*........................ 1.69% 0.92% 1.77%(b) 1.01%(b)
Ratio of net investment income
to average net assets*......... 4.77% 5.52% 5.66%(b) 6.63%(b)
Portfolio turnover (d).......... 58.86% 58.86% 60.47% 60.47%
</TABLE>
See notes to financial statements.
89
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
U.S. Treasury Securities Fund
-----------------------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Period Ended
July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
---------------- ---------------- ---------------- ---------------- -----------------------
Class A Class Y Class A Class Y Class A Class Y Class A Class Y Class A (b) Class Y (a)
------- ------- ------- ------- ------- ------- ------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.58 $ 9.59 $ 9.37 $ 9.38 $ 9.13 $ 9.14 $ 9.42 $ 9.43 $ 9.04 $ 8.66
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Net investment income... 0.52 0.54 0.52 0.54 0.52 0.53 0.53 0.59 0.50 0.44
Net realized and
unrealized gain (loss)
on investments......... (0.37) (0.37) 0.21 0.21 0.25 0.26 (0.20) (0.24) 0.38 0.76
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Total from Investment
Activities............. 0.15 0.17 0.73 0.75 0.77 0.79 0.33 0.35 0.88 1.20
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Distributions
Net investment income... (0.50) (0.53) (0.52) (0.54) (0.46) (0.54) (0.53) (0.55) (0.50) (0.43)
In excess of net
investment income...... (0.02) (0.01) -- -- (0.07) (0.01) (0.09) (0.09) -- --
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Total Distributions..... (0.52) (0.54) (0.52) (0.54) (0.53) (0.55) (0.62) (0.64) (0.50) (0.43)
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Net Asset Value, End of
Period................. $ 9.21 $ 9.22 $ 9.58 $ 9.59 $ 9.37 $ 9.38 $ 9.13 $ 9.14 $ 9.42 $ 9.43
====== ======= ====== ======= ====== ======= ====== ======= ====== =======
Total Return (excludes
sales charge).......... 1.41% 1.65% 7.98% 8.24% 8.68% 8.92% 3.43% 3.71% 10.18% 10.49%(c)
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $1,369 $20,486 $1,090 $22,178 $1,087 $23,832 $ 979 $23,248 $1,035 $51,264
Ratio of expenses to
average net assets..... 1.01% 0.76% 1.07% 0.82% 1.16% 0.91% 1.20% 0.95% 1.19% 1.02%
Ratio of net investment
income to average net
assets................. 5.36% 5.60% 5.45% 5.70% 5.60% 5.85% 5.55% 5.81% 5.57% 5.78%
Ratio of expenses to
average net assets*.... 1.80% 1.05% 1.76% 1.01% 1.70% 0.95% 1.74% 0.99% 1.81% 1.09%
Ratio of net investment
income to average net
assets*................ 4.57% 5.31% 4.76% 5.51% 5.06% 5.81% 5.01% 5.77% 4.96% 5.71%
Portfolio turnover (d).. 9.25% 9.25% 11.82% 11.82% 44.90% 44.90% 15.75% 15.75% 80.98% 80.98%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of Class A and transferred these shareholders into Class Y
at the prevailing net asset value effective October 14, 1994. The Financial
Highlights presented for Class Y reflect operations and distributions for
the period from October 14, 1994 through July 31, 1995.
(b) The Financial Highlights presented for Class A reflect operations and
distributions from the Fund, as a whole, for the period from August 1, 1994
through October 13, 1994 combined with the operations and distributions of
Class A only from the period from October 14, 1994 through July 31, 1995.
(c) Represents total return for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 plus total return for Class Y for
the period from October 14, 1994 through July 31, 1995.
(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.
90
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Short Intermediate U.S. Treasury Securities Fund
--------------------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Period Ended
July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
--------------- --------------- --------------- ---------------- -----------------------
Class A Class Y Class A Class Y Class A Class Y Class A Class Y Class A (b) Class Y (a)
------- ------- ------- ------- ------- ------- ------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $9.64 $ 9.66 $9.55 $ 9.56 $9.41 $ 9.42 $ 9.60 $ 9.61 $9.52 $ 9.30
----- ------- ----- ------- ----- ------- ------ ------- ----- -------
Investment Activities
Net investment income.. 0.45 0.48 0.49 0.51 0.49 0.52 0.48 0.53 0.52 0.44
Net realized and
unrealized gain (loss)
on investments........ (0.18) (0.18) 0.09 0.10 0.14 0.14 (0.11) (0.13) 0.05 0.31
----- ------- ----- ------- ----- ------- ------ ------- ----- -------
Total from Investment
Activities............ 0.27 0.30 0.58 0.61 0.63 0.66 0.37 0.40 0.57 0.75
----- ------- ----- ------- ----- ------- ------ ------- ----- -------
Distributions
Net investment income.. (0.45) (0.48) (0.49) (0.51) (0.49) (0.52) (0.50) (0.53) (0.49) (0.44)
In excess of net
investment income..... -- -- -- -- -- -- (0.04) (0.04) -- --
Net realized gains..... (0.04) (0.04) -- -- -- -- -- -- -- --
In excess of net
realized gains........ -- -- -- -- -- -- (0.02) (0.02) -- --
----- ------- ----- ------- ----- ------- ------ ------- ----- -------
Total Distributions.... (0.49) (0.52) (0.49) (0.51) (0.49) (0.52) (0.56) (0.59) (0.49) (0.44)
----- ------- ----- ------- ----- ------- ------ ------- ----- -------
Net Asset Value, End of
Period................. $9.42 $ 9.44 $9.64 $ 9.66 $9.55 $ 9.56 $ 9.41 $ 9.42 $9.60 $ 9.61
===== ======= ===== ======= ===== ======= ====== ======= ===== =======
Total Return (excludes
sales charge).......... 2.79% 3.05% 6.27% 6.62% 6.92% 7.19% 3.90% 4.18% 6.28% 6.57%(c)
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $ 595 $33,332 $ 654 $24,843 $ 618 $26,722 $1,156 $23,545 $ 489 $16,214
Ratio of expenses to
average net assets..... 0.94% 0.67% 0.89% 0.64% 0.87% 0.62% 0.92% 0.67% 0.99% 0.75%
Ratio of net investment
income to average net
assets................. 4.65% 4.89% 5.11% 5.36% 5.22% 5.47% 5.14% 5.40% 5.51% 5.84%
Ratio of expenses to
average net assets*.... 1.49% 0.72% 1.64% 0.89% 1.62% 0.87% 1.67% 0.92% 1.78% 0.99%
Ratio of net investment
income to average net
assets*................ 4.10% 4.84% 4.36% 5.11% 4.47% 5.22% 4.39% 5.15% 4.72% 5.61%
Portfolio turnover (d).. 63.27% 63.27% 17.33% 17.33% 51.56% 51.56% 47.17% 47.17% 62.73% 62.73%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions
and expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) On October 13, 1994, the Trust identified those Institutional shareholders
that were part of Class A and transferred these shareholders into Class Y
at the prevailing net asset value effective October 14, 1994. The
Financial Highlights presented for Class Y reflect operations and
distributions for the period from October 14, 1994 through July 31, 1995.
(b) The Financial Highlights presented for Class A reflect operations and
distributions from the Fund, as a whole, for the period from August 1,
1994 through October 13, 1994 combined with the operations and
distributions of Class A only from the period from October 14, 1994
through July 31, 1995.
(c) Represents total return for the Fund, as a whole, for the period from
August 1, 1994 through October 13, 1994 plus total return for Class Y for
the period from October 14, 1994 through July 31, 1995.
(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.
91
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Securities Fund
------------------------------------------------------------------------------
For the For the For the
Year Ended Year Ended Year Ended
July 31, 1999 July 31, 1998 July 31, 1997
-------------------------- ------------------------------- -----------------
Class A Class B Class Y Class A Class B (e) Class Y Class A Class Y
------- ------- -------- ------- ----------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.84 $10.83 $ 10.88 $10.84 $10.84 $ 10.86 $10.44 $ 10.46
------ ------ -------- ------ ------ -------- ------ --------
Investment Activities
Net investment income.. 0.48 0.40 0.51 0.48 0.21 0.51 0.49 0.51
Net realized and
unrealized gain (loss)
on investments........ (0.25) (0.24) (0.25) 0.06 (0.01) 0.08 0.46 0.46
------ ------ -------- ------ ------ -------- ------ --------
Total from Investment
Activities............ 0.23 0.16 0.26 0.54 0.20 0.59 0.95 0.97
------ ------ -------- ------ ------ -------- ------ --------
Distributions
Net investment income.. (0.48) (0.40) (0.51) (0.48) (0.21) (0.51) (0.49) (0.51)
In excess of net
investment income..... -- -- -- -- -- -- -- --
Net realized gains..... (0.10) (0.10) (0.10) (0.06) -- (0.06) (0.06) (0.06)
In excess of net
realized gains........ -- -- -- -- -- -- -- --
------ ------ -------- ------ ------ -------- ------ --------
Total Distributions.... (0.58) (0.50) (0.61) (0.54) (0.21) (0.57) (0.55) (0.57)
------ ------ -------- ------ ------ -------- ------ --------
Net Asset Value, End of
Period................. $10.49 $10.49 $ 10.53 $10.84 $10.83 $ 10.88 $10.84 $ 10.86
====== ====== ======== ====== ====== ======== ====== ========
Total Return (excludes
sales charge).......... 2.00% 1.40% 2.26% 5.17% 1.82%(b) 5.63% 9.35% 9.58%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $4,795 $1,756 $424,022 $3,054 $ 272 $416,544 $2,545 $296,764
Ratio of expenses to
average net assets..... 0.96% 1.70% 0.71% 1.02% 1.71%(c) 0.77% 1.12% 0.87%
Ratio of net investment
income to average net
assets................. 4.41% 3.68% 4.66% 4.49% 3.75%(c) 4.74% 4.60% 4.86%
Ratio of expenses to
average net assets*.... 1.65% 1.89% 0.90% 1.65% 1.90%(c) 0.90% 1.66% 0.91%
Ratio of net investment
income to average net
assets*................ 3.72% 3.49% 4.47% 3.86% 3.56%(c) 4.61% 4.06% 4.82%
Portfolio turnover (d).. 9.91% 9.91% 9.91% 10.73% 10.73% 10.73% 11.07% 11.07%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations on October 14, 1994.
(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) Period from commencement of operations on March 2, 1998.
See notes to financial statements.
92
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Securities Fund, continued
-----------------------------------------
For the For the
Year Ended Period Ended
July 31, 1996 July 31, 1995 (a)
----------------- ----------------------
Class A Class Y Class A Class Y
------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $10.53 $ 10.56 $ 10.00 $ 10.00
------ -------- ------- ---------
Investment Activities
Net investment income............. 0.50 0.52 0.39 0.42
Net realized and unrealized gain
(loss) on investments............ 0.07 0.07 0.50 0.51
------ -------- ------- ---------
Total from Investment Activities.. 0.57 0.59 0.89 0.93
------ -------- ------- ---------
Distributions
Net investment income............. (0.49) (0.52) (0.36) (0.37)
In excess of net investment
income........................... (0.04) (0.04) -- --
Net realized gains................ (0.09) (0.09) -- --
In excess of net realized gains... (0.04) (0.04) -- --
------ -------- ------- ---------
Total Distributions............... (0.66) (0.69) (0.36) (0.37)
------ -------- ------- ---------
Net Asset Value, End of Period..... $10.44 $ 10.46 $ 10.53 $ 10.56
====== ======== ======= =========
Total Return (excludes sales
charge)........................... 5.54% 5.73% 9.06%(b) 9.54%(b)
Ratios/Supplementary Data:
Net Assets at end of period (000).. $ 569 $288,934 $ 563 $ 281,646
Ratio of expenses to average net
assets............................ 1.14% 0.89% 1.15%(c) 0.89%(c)
Ratio of net investment income to
average net assets................ 4.66% 4.92% 4.93%(c) 5.16%(c)
Ratio of expenses to average net
assets*........................... 1.68% 0.93% 1.74%(c) 0.98%(c)
Ratio of net investment income to
average net assets*............... 4.12% 4.88% 4.34%(c) 5.07%(c)
Portfolio turnover (d)............. 24.78% 24.78% 49.17% 49.17%
</TABLE>
See notes to financial statements.
93
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Short Intermediate Securities Fund
---------------------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Period Ended
July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995 (a)
---------------- ---------------- ---------------- ---------------- ---------------------
Class A Class Y Class A Class Y Class A Class Y Class A Class Y Class A (b) Class Y
------- ------- ------- ------- ------- ------- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.09 $ 10.15 $10.17 $ 10.21 $10.05 $ 10.08 $10.11 $ 10.14 $10.00 $ 10.00
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Investment Activities
Net investment income.. 0.34 0.37 0.35 0.38 0.37 0.39 0.37 0.40 0.30 0.32
Net realized and
unrealized gain (loss)
on investments........ (0.09) (0.10) (0.02) -- 0.13 0.14 (0.03) (0.03) 0.08 0.11
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Total from Investment
Activities............ 0.25 0.27 0.33 0.38 0.50 0.53 0.34 0.37 0.38 0.43
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Distributions
Net investment income.. (0.34) (0.37) (0.35) (0.38) (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..... (0.05) (0.05) (0.06) (0.06) (0.01) (0.01) -- -- -- --
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Total Distributions.... (0.39) (0.42) (0.41) (0.44) (0.38) (0.40) (0.40) (0.43) (0.27) (0.29)
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
Net Asset Value, End of
Period................. $ 9.95 $ 10.00 $10.09 $ 10.15 $10.17 $ 10.21 $10.05 $ 10.08 $10.11 $ 10.14
====== ======= ====== ======= ====== ======= ====== ======= ====== =======
Total Return (excludes
sales charge).......... 2.44% 2.60% 3.36% 3.83% 5.06% 5.36% 3.41% 3.67% 3.90%(b) 4.36%(b)
Ratios/
Supplementary Data:
Net Assets at end of
period (000)........... $878 $47,668 $478 $52,185 $724 $37,410 $451 $39,472 $308 $39,993
Ratio of expenses to
average net assets..... 0.98% 0.73% 1.01% 0.76% 1.09% 0.84% 1.08% 0.83% 1.05%(c) 0.85%(c)
Ratio of net investment
income to average net
assets................. 3.35% 3.61% 3.50% 3.75% 3.57% 3.82% 3.64% 3.90% 3.82%(c) 4.03%(c)
Ratio of expenses to
average net assets*.... 1.63% 0.88% 1.62% 0.87% 1.64% 0.89% 1.63% 0.88% 1.64%(c) 0.94%(c)
Ratio of net investment
income to average net
assets*................ 2.70% 3.46% 2.89% 3.64% 3.02% 3.77% 3.09% 3.85% 3.23%(c) 3.94%(c)
Portfolio turnover (d).. 18.40% 18.40% 47.55% 47.55% 29.46% 29.46% 54.70% 54.70% 89.98% 89.98%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations on October 14, 1994.
(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.
94
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
International Stock Fund
-----------------------------------------
Period Ended July 31, 1999
-----------------------------------------
Class A (e) Class B (f) Class Y (d)
----------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.......................... $10.09 $10.20 $ 10.00
------ ------ -------
Investment Activities
Net investment loss............. -- (0.02) --
Net realized and unrealized gain
on investments................. 1.87 1.72 1.98
------ ------ -------
Total from Investment
Activities..................... 1.87 1.70 1.98
------ ------ -------
Net Asset Value, End of Period... $11.96 $11.90 $ 11.98
====== ====== =======
Total Return (excludes sales
charge)......................... 18.53%(a) 16.67%(a) 19.90%(a)
Ratios/Supplementary Data:
Net Assets at end of period
(000)........................... $ 265 $ 102 $81,253
Ratio of expenses to average net
assets.......................... 1.94%(b) 2.76%(b) 1.65%(b)
Ratio of net investment income
(loss) to average net assets.... (0.19%)(b) (1.08%)(b) 0.03%(b)
Ratio of expenses to average net
assets*......................... 2.61%(b) 2.91%(b) 1.79%(b)
Ratio of net investment income
(loss) to average net assets*... (0.86%)(b) (1.24%)(b) (0.10%)(b)
Portfolio turnover (c)........... 156.46% 156.46% 156.46%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(d) For the period from December 2, 1998 (commencement of operations) to July
31, 1999.
(e) For the period from December 8, 1998 (commencement of operations) to July
31, 1999.
(f) For the period from December 20, 1998 (commencement of operations) to July
31, 1999.
See notes to financial statements.
95
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Value Fund
-----------------------------------------
Period Ended
July 31, 1999
-----------------------------------------
Class A (e) Class B (f) Class Y (d)
----------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $10.05 $ 9.90 $ 10.00
------ ------ -------
Investment Activities
Net investment income (loss)..... 0.01 (0.01) 0.04
Net realized and unrealized gain
on investments.................. 0.78 0.91 0.83
------ ------ -------
Total from Investment Activities. 0.79 0.90 0.87
------ ------ -------
Distributions
Net investment income............ -- -- (0.03)
In excess of net investment
income.......................... (0.02) (0.01) (0.01)
Net realized gains............... (0.45) (0.38) (0.45)
In excess of net realized gains.. -- (0.07) --
------ ------ -------
Total Distributions.............. (0.47) (0.46) (0.49)
------ ------ -------
Net Asset Value, End of Period.... $10.37 $10.34 $ 10.38
====== ====== =======
Total Return (excludes sales
charge).......................... 7.81%(a) 8.94%(a) 8.56%(a)
Ratios/Supplementary Data:
Net Assets at end of period (000). $ 178 $ 472 $75,464
Ratio of expenses to average net
assets........................... 1.60%(b) 2.44%(b) 1.28%(b)
Ratio of net investment income
(loss) to average net assets..... (0.01%)(b) (0.71%)(b) 0.40%(b)
Ratio of expenses to average net
assets*.......................... 2.15%(b) 2.48%(b) 1.32%(b)
Ratio of net investment income
(loss) to average net assets*.... (0.56%)(b) (0.75%)(b) 0.36%(b)
Portfolio turnover (c)............ 113.72% 113.72% 113.72%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(d) For the period from December 3, 1998 (commencement of operations) to July
31, 1999.
(e) For the period from December 8, 1998 (commencement of operations) to July
31, 1999.
(f) For the period from December 13, 1998 (commencement of operations) to July
31, 1999.
See notes to financial statements.
96
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Small Cap Fund
-----------------------------------------
Period Ended
July 31, 1999
-----------------------------------------
Class A (e) Class B (f) Class Y (d)
----------- ----------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.......................... $10.07 $ 9.78 $ 10.00
------ ------ -------
Investment Activities
Net investment loss............. (0.01) (0.03) --
Net realized and unrealized gain
on investments................. 0.60 0.86 0.67
------ ------ -------
Total from Investment
Activities..................... 0.59 0.83 0.67
------ ------ -------
Net Asset Value, End of Period... $10.66 $10.61 $ 10.67
====== ====== =======
Total Return (excludes sales
charge)......................... 5.91%(a) 8.56%(a) 6.75%(a)
Ratios/Supplementary Data:
Net Assets at end of period
(000)........................... $ 93 $ 82 $31,812
Ratio of expenses to average net
assets.......................... 1.84%(b) 2.59%(b) 1.52%(b)
Ratio of net investment income
(loss) to average net assets.... (0.26%)(b) (1.00%)(b) 0.08%(b)
Ratio of expenses to average net
assets*......................... 2.50%(b) 2.73%(b) 1.66%(b)
Ratio of net investment income
(loss) to average net assets*... (0.91%)(b) (1.15%)(b) (0.06%)(b)
Portfolio turnover (c)........... 60.08% 60.08% 60.08%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(d) For the period from December 3, 1998 (commencement of operations) to July
31, 1999.
(e) For the period from December 8, 1998 (commencement of operations) to July
31, 1999.
(f) For the period from December 20, 1998 (commencement of operations) to July
31, 1999.
See notes to financial statements.
97
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------
June 21, 1999
to July 31, 1999 (d)
----------------------------------
Class A Class B Class Y
------- ------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period..... $10.00 $10.00 $ 10.00
------ ------ --------
Investment Activities
Net investment income (loss)............ 0.01 0.01 (0.03)
Net realized and unrealized gain (loss)
on investments......................... (0.21) (0.22) (.16)
------ ------ --------
Total from Investment Activities........ (0.20) (0.21) (.19)
------ ------ --------
Distributions
Net investment income................... (0.01) -- (0.02)
In excess of net investment income...... -- (0.01) --
------ ------ --------
Total Distributions..................... (0.01) (0.01) (0.02)
------ ------ --------
Net Asset Value, End of Period........... $ 9.79 $ 9.78 $ 9.79
====== ====== ========
Total Return (excludes sales charge)..... (1.95%)(a) (2.09%)(a) (1.94%)(a)
Ratios/Supplementary Data:
Net Assets at end of period (000)........ $ 62 $ 307 $184,081
Ratio of expenses to average net assets.. 1.38%(b) 2.16%(b) 1.08%(b)
Ratio of net investment income to average
net assets.............................. 1.45%(b) .81%(b) 1.69%(b)
Ratio of expenses to average net assets*. 2.03%(b) 2.31%(b) 1.22%(b)
Ratio of net investment income to average
net assets*............................. .80%(b) .66%(b) 1.55%(b)
Portfolio turnover (c)................... 5.47% 5.47% 5.47%
</TABLE>
- --------
* During the period, certain fees were voluntarily reduced. In addition, the
investment adviser reimbursed expenses. If such voluntary fee reductions and
expense reimbursements had not occurred, the ratios would have been as
indicated.
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(d) Period from commencement of operations.
See notes to financial statements.
98
<PAGE>
PACIFIC CAPITAL FUNDS
Report of Independent Auditors
The Board of Trustees and Shareholders
Pacific Capital Funds
We have audited the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, of Pacific Capital Funds
(comprised of Growth Stock Fund, Growth and Income Fund, New Asia Fund,
Diversified Fixed Income Fund, U.S. Treasury Securities Fund, Short
Intermediate U.S. Treasury Securities Fund, Tax-Free Securities Fund, Tax-Free
Short Intermediate Securities Fund, International Stock Fund, Value Fund,
Small Cap Fund, and Balanced Fund) (the Funds) as of July 31, 1999, and the
related statements of operations, statements of changes in net assets, and
financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of July 31, 1999, by correspondence with
the custodian and others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Pacific Capital Funds as of July 31,
1999, the results of their operations, the changes in their net assets and
their financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Columbus, Ohio
September 10, 1999
99
<PAGE>
INVESTMENT ADVISER
Pacific Century Trust, A Division of Bank of Hawaii
111 South King Street
Honolulu, HI 96813
SUB-ADVISERS
Nicholas-Applegate Capital Management
600 West Broadway
San Diego, CA 92102
CMG First State (Hong Kong) LLC
3 Exchange Square
8 Connaught Place Central
Hong Kong
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street, 20th Floor
Los Angeles, CA 90071
INDEPENDENT AUDITORS
Ernst & Young LLP
One Columbus, Suite 2300
10 West Broad Street
Columbus, OH 43215
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
The Pacific Capital Funds are distributed by BISYS Fund Services. This document
must be preceded or accompanied by a current prospectus for the Pacific Capital
Funds, which you should read carefully before you invest or send money.
