<PAGE>
THE EXPERIENCE AND EXPERTISE NECESSARY
[PHOTO]
TO MEET YOUR FINANCIAL GOALS
ANNUAL REPORT
JULY 31, 2000
[LOGO OF PACIFIC CAPITAL FUNDS]
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 114
<PAGE>
Letter to Shareholders
Dear Shareholders:
The 12-month period ended July 31, 2000 was characterized by dramatic swings in
the financial markets. The Dow Jones Industrial Average/1/ gained 0.30% during
the period, while the Standard & Poor's 500 Stock Index/2/ (the "S&P") returned
8.97%.
Amidst the turmoil, the economy continued its unprecedented strength: Gross
Domestic Product (GDP) has now expanded for 38 consecutive calendar quarters,
the longest expansion in U.S. history. However, that growth led to some
inflationary pressures, including a tight labor market, which caused an
increase in the cost for companies to find and retain quality employees.
Attempting to slow the economy and prevent an increase in inflation, the
Federal Reserve Board (the "Fed") increased the federal funds rate six times
during the period. It appears that these interest rate hikes have had the
desired effect of slowing the economy, and thereby forestalling inflation,
without pushing it into recession.
Despite the volatility, most stock market indices performed very well during
the first seven months of the fiscal year, driven by exceptional returns from
sectors such as technology and telecommunications. Most indices' strength
belied the fact that a large number of stocks actually fell during that time.
In March, investors became concerned that higher interest rates and a slower
economy would hurt profits, and tech and telecom stocks plummeted. The tech-
heavy Nasdaq Composite Index/3/ gained 91% between August 1, 1999 and March 10,
2000, and then proceeded to fall more than 25% over the rest of the period. The
decline in tech and telecom stocks benefited shares of more traditional firms,
as investors moved assets into sectors exhibiting more stability.
The potential for inflation and Fed interest rate hikes hurt the bond markets
during much of the period. Investors worried that future rate increases would
diminish the value of short-term bonds, and that higher inflation would hurt
the prospects for long-term bonds. As a result, bond yields rose and prices
fell. The best-performing bonds were 30-year Treasury bonds, which benefited
from the government's program to buy back $30 billion in long-term debt.
Meanwhile, corporate bonds underperformed as investors worried that a slowing
economy could make it harder for companies to pay their debts. Later in the
period, the bond market rebounded as economic data showed the economy to be
cooling. That information led investors to believe that inflation would remain
tame, and that the Fed would not have to raise interest rates further.
Fund Performance
Several of the Pacific Capital Funds performed very well during the period. For
example, the Pacific Capital Growth Stock Fund returned 45.24%+ for the 12
months between August 1, 1999 and July 31, 2000--over 36 percentage points
better than its benchmark, the S&P 500 Index, which returned 8.97%. The Pacific
Capital Growth Stock Fund's performance earned an overall five-star rating from
mutual fund-tracking firm Morningstar, Inc./4/ The Pacific Capital Growth and
Income Fund also performed well, returning 28.85%+, which also beat the S&P 500
Index by over 19%. For the period ended July 31, 2000, the Growth and Income
Fund received an overall four-star Morningstar rating/4/.
Fund Events
On July 7, 2000, shareholders and Trustees approved a reorganization of the
Pacific Capital U.S. Treasury Securities Fund into the Diversified Fixed Income
Fund. The Diversified Fixed Income Fund invests in high-quality corporate bonds
and U.S. government securities, and has a similar average maturity as the U.S.
Treasury Securities Fund.
Meanwhile, the new Pacific Capital Ultra Short Government Fund (Class Y Shares)
was introduced to Institutional investors on June 1, 2000, followed by Class A
and Class B Shares on August 1, 2000. The Fund invests in short-term fixed-
income securities with maturities of one to three years, and is managed to
provide investors with current income, consistent with preservation of capital.
It focuses on securities issued by U.S. government agencies, providing another
fixed-income fund for Pacific Capital shareholders.
1
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Outlook
We believe the Fed's rate hikes have had the desired effect. In our opinion,
the economy should slow somewhat going forward without slipping into recession.
GDP grew at an annualized rate of more than 4.5% during the first half of 2000
and we anticipate that it will have a slower growth rate during the rest of the
calendar year. That slower growth should keep inflation in check, allowing the
Fed to maintain a neutral monetary policy for the rest of the year.
The stock market should perform relatively well in such an environment. We
expect investors to rotate back into growth stocks as companies in technology,
telecommunications and health care show the ability to earn profits in the
slower-growth environment ahead. However, it is our view that a measure of
volatility will likely continue as investors try to determine future economic
statistics, Fed action and the presidential election.
The bond market stands to benefit from the slowing economy. We feel slower
growth will make increased inflation less likely, and that should allow the Fed
to maintain a neutral monetary policy. Such an environment should cause yields
to fall, pushing up bond prices. We believe that long-term corporate bonds are
particularly well-positioned to benefit from the coming environment.
As always, we encourage our shareholders to maintain a long-term investment
focus and a diversified portfolio.
Thank you for your confidence in the Pacific Capital Funds. If you have any
questions or would like a fund prospectus, please contact your registered
investment consultant or call BISYS Fund Services, Distributor 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 HawaiiSenior Vice President, Manager
Chairperson, Pacific Capital Funds The Asset Management Group of Bank of
Hawaii
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 Standard and Poor's 500 Stock Index is an unmanaged index generally
representative of the U.S. stock market as a whole.
/3/ The Nasdaq Composite Index is a market capitalization, price-only index
that tracks the performance of domestic common stocks traded on the regular
Nasdaq market as well as National Market System traded foreign common
stocks and ADRs.
Investors cannot invest directly in an index, although they can invest in
its underlying securities.
/4/ Morningstar ratings reflect historical risk-adjusted performance as of July
31, 2000. The ratings are subject to change every month. Past performance
is not a guarantee of future results. Morningstar ratings are calculated
from a fund's three-, five-, and 10-year returns (with fee adjustments) in
excess of 90-day Treasury Bill returns and a risk factor that reflects fund
performance below 90-day Treasury Bill returns. The overall rating is a
weighted average of the three-, five-, and 10-year rating. The Pacific
Capital Growth Stock Fund (Retail and Institutional Shares) received a 5-
star rating and the Pacific Capital Growth and Income Fund (Retail and
Institutional Shares) received a 4-star rating for the three- and five-year
periods, respectively. The Funds were ranked among 3,776 and 2,348 domestic
equity funds, respectively. The top 10% of the funds in a broad asset class
receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.
The funds were rated exclusively against U.S.-domiciled funds. Other share
classes not shown will have different ratings. Call shareholder services
for additional benchmark or rating information.
2
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[This Page Intentionally Left Blank]
3
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Pacific Capital Growth Stock Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
Early in the year, the stock market was dominated by optimism about the outlook
for technology, media and telecommunication companies--better know as "TMT" or
"New Economy" stocks. Amidst some troubling economic indicators, investor
sentiment quickly reversed and the New Economy stocks fell sharply, giving back
much of the gains achieved in 1999. In this environment, the Pacific Capital
Growth Stock Fund outperformed its benchmark, due to favorable TMT stock
selection throughout the period. For the 12-month period ended July 31, 2000,
the Pacific Capital Growth Stock Fund returned 45.24%+ (for Class A Shares
without sales charge), compared to 8.97% for the S&P 500 Stock Index.
What were the major factors in the U.S. equity markets that influenced the
Fund's performance?
Heavy technology sector emphasis before the fiscal fourth quarter greatly
contributed to the Fund's strong 12-month performance. Some of the Fund's top
holdings in this sector included Siebel Systems (+390%), Veritas Software
(+309%), Nortel Networks (+236%) and Sun Microsystems (+211%). During the third
fiscal quarter, we substantially reduced the Fund's exposure to TMT stocks just
before a major sell-off. We applied a large portion of the proceeds towards an
over-weighting in the health care sector, which subsequently turned out to be
one of the stronger-performing sectors of the market. Top holdings in this
sector included PE Biosystems (+45%) and Eli Lilly (+35%).
What is your outlook for the Fund?
Although few sectors of the economy can match the long-term earnings growth
potential of the technology sector, we intend to remain under-weighted in this
area in the near-term. We feel that technology-related capital spending could
be adversely impacted by a combination of slower global economic growth and a
more discriminating market for speculative new equity offerings. Furthermore,
the recent setbacks that many Internet companies have experienced may take some
of the competitive pressure off established brick-and-mortar businesses to
establish a presence on the web. We are carrying over-weights in health care,
consumer staples and financial services. We believe these sectors offer
attractive earnings growth prospects over the near-term, while trading at
reasonable valuation levels.
[PHOTO OF ROGER KHLOPIN, CFA APPEARS HERE]
Roger Khlopin, CFA Vice President and Portfolio Manager
As Vice President, Mr. Khlopin serves as Equity Investment Team Leader at The
Asset Management Group of Bank of Hawaii. Mr. Khlopin has 20 years of
experience in the investment industry and is a Chartered Financial Analyst.
Prior to joining the Adviser, 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 degree at New York University and is a
member of the Security Analysts Society of San Francisco.
4
<PAGE>
Pacific Capital Growth Stock Fund
--------------------------------------------------------------------------------
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y Shares Standard & Poor's
Class A Shares* Class B Shares (No Sales Charge) 500 Stock Index
7/31/90 9,595 10,000 10,000 10,000
7/31/91 10,918 11,378 11,420 11,276
7/31/92 12,011 12,518 12,599 12,718
7/31/93 12,591 13,122 13,239 13,829
7/31/94 13,355 13,918 14,057 14,542
7/31/95 16,081 16,759 16,955 18,339
7/31/96 17,410 18,144 18,405 21,377
7/31/97 25,595 26,675 27,127 32,524
7/31/98 30,607 31,845 32,541 38,795
7/31/99 35,933 37,116 38,308 46,633
7/31/2000 52,191 53,498 55,762 50,818
Average Annual Total Return as of July 31, 2000
1 Year 5 Year 10 Year
------------------------------------------------------------------------------
Class A Shares* 39.41% 25.52% 17.97%
------------------------------------------------------------------------------
Class B Shares** 40.14% 26.05% 18.26%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 45.56% 26.88% 18.75%
------------------------------------------------------------------------------
*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 chart above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's
benchmark.
+ The quoted performance of the Pacific Capital Growth Stock Fund includes the
performance of certain common trust fund ("Commingled") accounts advised by
The Asset Management Group of Bank of Hawaii and managed the same as the Fund
in all material respects, for periods dating back to July 31, 1990, 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. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
5
<PAGE>
Pacific Capital Growth and Income Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
Despite the increase in market volatility, the equity markets continued to
perform admirably during the last fiscal year. We are extremely pleased with
the performance of the Pacific Capital Growth and Income Fund, which
significantly outperformed its benchmark. The Fund returned 28.85%+ (for Class
A Shares without sales charge) compared to 8.97% for the S&P 500 Stock Index,
for the 12-month period ended July 31, 2000.
What were the major factors in the U.S. equity markets that influenced the
Fund's performance?
During the last year we focused on the benefits of three major trends: 1)
strong technology-related capital spending; 2) health care, which we believe
will benefit from the aging population, improved treatment regimens, and a
growing number of new products which will enhance the quality of life; and 3)
the financial industry's ongoing consolidation/asset gathering capabilities. As
of July 31, 2000, the Fund was over-weighted relative to its benchmark in both
the capital goods and consumer cyclical sectors, and near market weights in the
technology and financial services sectors. Some of the Fund's top holdings in
the technology sector include Corning (+230%) and EMC (+166%). Health care
holdings include PE Biosystems (+215%) and Elan (+79%), and financial holdings
include Morgan Stanley (+95%) and Marsh & McLennan (+55%).
What is your outlook for the Fund?
Current evidence points to a slowing consumer environment (high rates and
energy costs) but robust capital spending, which should improve productivity,
control unit labor costs, and improve cash-flow earnings. We anticipate long-
term drivers for the market to include mutual fund cash flow, earnings, and a
more reasonable valuation level for the broad market. One group we feel is
priced very reasonably for performance, pending any shift in Federal Reserve
Policy, is the financial services sector. However, with traditional banks still
fearful of further Fed tightening, we will focus on financial stocks that are
concentrated on the money management business. We will also continue our focus
on technology. We believe economic data on productivity gains support the
continuation of large capital budgets for technology and networking, especially
with the increasing demand for broader bandwidth to accommodate voice, data,
and video applications.
[PHOTO OF CLYDE POWERS, CFA APPEARS HERE]
Clyde Powers, CFA Vice President and Portfolio Manager
Mr. Powers serves as Vice President on the Equity Investment Team at The Asset
Management Group of Bank of Hawaii. Mr. Powers has 28 years of experience
managing growth funds and growth-oriented portfolios for institutional
investors and is a Chartered Financial Analyst. Prior to joining the Adviser,
he held positions at Amcore Investment Group, Union Bank and Marine Bank Corp.
Mr. Powers earned a Bachelor of Business Administration in Finance degree from
the University of Wisconsin and is a member of the Financial Analysts
Federation Institute.
6
<PAGE>
Pacific Capital Growth and Income Fund
--------------------------------------------------------------------------------
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Class A Class B Shares Standard & Poor's
Shares* Shares (No Sales Charge) 500 Stock Index
7/31/90 9,598 10,000 10,000 10,000
7/31/91 10,354 10,788 10,809 11,276
7/31/92 11,378 11,855 11,913 12,718
7/31/93 11,707 12,198 12,285 13,829
7/31/94 11,902 12,402 12,516 14,542
7/31/95 14,185 14,780 14,938 18,339
7/31/96 15,880 16,546 16,773 21,377
7/31/97 23,438 24,421 24,819 32,524
7/31/98 27,915 29,015 29,625 38,795
7/31/99 31,730 32,666 33,680 46,633
7/31/2000 40,885 41,797 43,523 50,818
For performance purposes the above graph has not been adjusted for CDSC charges.
Average Annual Total Return as of July 31, 2000
1 Year 5 Year 10 Year
------------------------------------------------------------------------------
Class A Shares* 23.68% 22.57% 15.12%
------------------------------------------------------------------------------
Class B Shares** 23.95% 23.02% 15.38%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 29.22% 23.85% 15.84%
------------------------------------------------------------------------------
*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 chart above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
+ The quoted performance of the Pacific Capital Growth and Income Fund ("Fund")
includes the performance of certain common trust fund ("Commingled") accounts
advised by The Asset Management Group of Bank of Hawaii and managed the same
as the Fund in all material respects, for periods dating back to July 31,
1990, 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 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. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
7
<PAGE>
Pacific Capital New Asia Growth Fund+
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
After the spectacular performance of the Asian stock markets in 1999, the first
half of 2000 has been somewhat of a reality check for investors. The first
quarter of 2000 continued in much the same vein as 1999, with the ("TMT")
sectors leading the markets higher. However, the second quarter began with a
Nasdaq-inspired correction. April and May proved to be somewhat of a testing
ground for investors, as the markets suffered heavy losses before stabilizing
in June. Both the Pacific Capital New Asia Fund and its benchmark--the MSCI AC
Far East Free ex-Japan Index--gave back some of their spectacular 1999 gains,
returning 18.26% (for Class A Shares without sales charge) and -6.19%,
respectively, for the 12-month period ended July 31, 2000.
What were the major factors in the Asian markets that influenced the Fund's
performance?
The smaller markets of Southeast Asia--including Thailand, the Philippines and
Indonesia--were the hardest hit and continue to be a graveyard for investors.
This recent setback has caused both the stock and currency markets to come
under pressure. The macro-economic picture remains particularly strong in North
Asia. Economic growth in Hong Kong, China, Korea and Taiwan has continued to be
better than expected. This consistent growth should flow through to corporate
earnings. In addition, there is no hint of inflation creeping into the system,
and therefore minimal upward pressure on interest rates.
What is your outlook for the Fund?
We remain positive on the outlook for Asian markets and view the recent
pullback as a correction in a bull market. We believe the positive earnings
growth profile will remain intact for at least the next 12 months, while
valuations remain supportive. The extremely narrow TMT focus, which had been a
feature of the rally in 1999, was an unhealthy situation and clearly
unsustainable. This issue no longer exists, courtesy of the second quarter
correction. We will continue to overweight the portfolio in Singapore and
Taiwan, and retain a neutral position in Hong Kong and China, as we feel
fundamentals are solid in these countries. We currently have no holdings in
Thailand, Indonesia or the Philippines, and will remain uninvested until we see
strong signs of improvement.
+ International investing involves increased risk and volatility.
The Fund is sub-advised by Colonial Management Group, a division of Colonial
First State Investments. A team comprised of Yeo Boon Hong, Peter Sartori, Lim
Kok Boon, CFA, and Chay Kai Kong, CFA, are responsible for the day-to-day
management of the Fund. Mr. Hong is the Associate Investment Director,
responsible for regional Asian portfolios with an emphasis on Japan and global
markets. Mr. Sartori, Associate Equities Director, is currently responsible for
Hong Kong and Australia/New Zealand stock selection for all Asian portfolios.
Mr. Boon, Senior Portfolio Manager, has primary responsibility for Malaysia,
Thailand, India and the Philippines and is a Chartered Financial Analyst. Mr.
Kong, Assistant Portfolio Manager, covers Asian markets and global technology,
with a special focus on the computer and Internet sectors, and is a Chartered
Financial Analyst. Together, the team has over 30 years combined investment
experience with a high degree of expertise in the Asian region.
8
<PAGE>
Pacific Capital New Asia Growth Fund
--------------------------------------------------------------------------------
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Class A Class B Shares MSCI AC Far East
Shares* Shares** (No Sales Charge) Free ex-Japan
2/15/95 9,479 10,000 10,000 10,000
7/31/95 10,626 11,710 11,220 10,331
7/31/96 10,803 10,997 11,439 10,704
7/31/97 13,645 14,095 14,470 12,150
7/31/98 6,980 7,163 7,414 4,675
7/31/99 11,656 11,981 12,410 8,648
7/31/2000 13,785 14,215 14,728 8,143
Average Annual Total Return as of July 31, 2000
Since
Inception
1 Year 5 Year (2/15/95)
------------------------------------------------------------------------------
Class A Shares* 12.01% 4.22% 6.06%
------------------------------------------------------------------------------
Class B Shares** 13.52% 4.85% 6.66%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 18.68% 5.59% 7.36%
------------------------------------------------------------------------------
*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.
The chart above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
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. Investors cannot invest directly in an index,
although they can invest in its underlying securities.
9
<PAGE>
Pacific Capital Diversified Fixed Income Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2000, the Pacific Capital Diversified
Fixed Income Fund returned 4.09%+ (for Class A Shares without sales charge),
compared to the return of 5.68% for its benchmark, the Merrill Lynch Corporate
& Government Master Index.
What were the major factors in the fixed income markets that influenced the
Fund's performance?
The bond markets performed much differently in the first half of 2000 than they
did in the latter half of 1999. Interest rates rose dramatically in the last
half of 1999, as the Federal Reserve raised rates three times, resulting in
poor performance for the bond market as a whole. Lower-quality junk bonds were
the only sector of the market that posted a positive return for 1999, by virtue
of their higher interest rates. However, early in 2000, the bond markets
rallied as the Treasury announced its intent to buy back as much as $30 billion
in long-term debt. This news, coupled with the decreasing size and frequency of
Treasury auctions, caused long-term Treasury rates to fall. As a result of the
decline in long-term rates and the Fed's further moves to raise short-term
rates, the yield curve became inverted, with long-term rates lower than short-
term rates. Our high-quality portfolio helped performance during this period.
What is your outlook for the Fund?
An inverted yield curve is often the precursor to a recession, but we do not
forsee the economy slowing to a recessionary level. Our economic scenario
indicates that the Fed's tightening moves are starting to moderate economic
activity, with the result being a "soft landing." We view the current spreads
as an opportunity to increase our corporate bond exposure, and we will continue
to invest only in high-quality securities.
[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 28 years of experience in the investment industry, her
most recent 18 years at The Asset Management Group of Bank of Hawaii. Prior to
joining the Adviser, 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.
10
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Pacific Capital Diversified Fixed Income Fund
--------------------------------------------------------------------------------
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.
[GRAPH]
Growth of a $10,000 Investment
Merrill Lynch
Class Y Corporate &
Class A Class B Shares Government Master
Shares* Shares (No Sales Charge) Index
7/31/90 9,598 10,000 10,000 10,000
7/31/91 10,519 10,959 10,997 11,025
7/31/92 12,179 12,689 12,760 12,744
7/31/93 13,774 14,351 14,467 14,151
7/31/94 13,256 13,811 13,948 14,155
7/31/95 14,604 15,216 15,523 15,608
7/31/96 15,136 15,770 16,114 16,430
7/31/97 16,530 17,222 17,614 18,204
7/31/98 17,782 18,487 19,008 19,687
7/31/99 17,965 18,535 19,220 20,144
7/31/00 18,700 19,153 20,060 21,288
Average Annual Total Return as of July 31, 2000
1 Year 5 Year 10 Year
-----------------------------------------------------------------------------
Class A Shares* (0.05)% 4.21% 6.46%
-----------------------------------------------------------------------------
Class B Shares** (0.60)% 4.55% 6.71%
-----------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 4.37% 5.26% 7.21%
-----------------------------------------------------------------------------
*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 returns do 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 chart above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
+ The quoted performance of the Pacific Capital Diversified Fixed Income Fund
includes the performance of certain common trust fund ("Commingled") accounts
advised by The Asset Management Group of Bank of Hawaii and managed the same
as the Fund in all material respects, for periods dating back to July 31,
1990, 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. Investors cannot invest directly in an index,
although they can invest in its underlying securities.
11
<PAGE>
Pacific Capital Ultra Short Government Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
June 1, 2000 marked the successful launch of the Pacific Capital Ultra Short
Government Fund, Class Y shares. Starting with just $10 million in assets, the
Fund has already grown to over $45 million in assets: $10 million of which
resulted from new money that flowed into the Fund. Class A Shares and B shares
were introduced on August 1, 2000. From inception on June 1, 2000 through July
31, 2000, the Fund returned 1.27% (Class Y Shares) compared to 1.00% for the
Fund's benchmark, the 12-Month U.S. Treasury Bill.
What were the major factors in the fixed income markets that influenced the
Fund's performance?
Market yields favored the timing of the launch which, coupled with immediate
and substantial funding, created excellent buying opportunities for the Fund,
as reflected in the Fund's performance. For example, we recently purchased
multiple odd-lot Agencies with a 7% yield-to-maturity.
What is your outlook for the Fund?
As the two-year Treasury remains the high-point on the yield curve, the Fund
should continue to offer relatively attractive high yields to prospective
investors and existing clients alike.
[PHOTO OF APPEARS HERE]
Edward Haik
Vice President and Portfolio Manager
Mr. Haik serves as Vice President on the Taxable Fixed-Income Team at The Asset
Management Group of Bank of Hawaii. Mr. Haik has ten years of experience in the
investment industry, his most recent five years at The Asset Management Group
of Bank of Hawaii. Prior experience includes positions at Garban Tokyo, Ltd.,
Cantor Fitzgerald Securities, and Merrill Lynch. Mr. Haik earned a Bachelors of
Arts from Holy Cross College.
12
<PAGE>
Pacific Capital Ultra Short Government Fund
--------------------------------------------------------------------------------
Fund Objective:
The investment objective of the Ultra Short Government Fund is to provide
investors with high current income consistent with preservation of capital. The
Fund pursues its objective by investing primarily in short-term debt securities
issued or guaranteed by the U.S. government, its agencies or instrumentalities.
[GRAPH]
Ultra Short 12-Month
Government U.S. Treasury
6/1/2000 10,000 10,000
6/30/2000 10,073 10,050
7/31/2000 10,126 10,100
Aggregate Total Returns as of July 31, 2000
Since
Inception
(6/1/00)
------------------------------------------------------------
Class Y Shares (No Sales Charge) 1.27%
------------------------------------------------------------
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 chart above represents a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's
benchmark.
The 12-Month Treasury Index consists of yields on treasury securities at
constant, fixed maturities are constructed by the Treasury department, based on
the most actively traded marketable treasury securities. Yields on these issues
are based on composite quotes reported by U.S. Government securities dealers to
the Federal Reserve Bank of New York. To obtain the constant maturity yields,
personnel at Treasury construct a yield curve each business day and yield
values are then read from the curve at fixed maturities.
13
<PAGE>
Pacific Capital Short Intermediate U.S. Treasury Securities Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2000, the Pacific Capital Short
Intermediate U.S. Treasury Securities Fund returned 3.97% (for the Class A
Shares without sales charge), compared to 5.14% for its benchmark, the Merrill
Lynch 3-5-Year Treasury Index.
What were the major factors in the fixed income markets that influenced the
Fund's performance?
Although the period was a difficult one, the Fund's defensively oriented
barbell structure served us well throughout most of the fiscal year. During the
last half of 1999, the bond market exhibited poor performance as the Federal
Reserve raised interest rates three times in response to inflationary fears. In
this environment investors sold bonds, further pushing up yields, in
anticipation of the Fed's tighter monetary policy. Then, in January 2000, the
Treasury markets rallied as the Fed announced its intent to buy back as much as
$30 billion in long-term debt. This news, coupled with the decreasing size and
frequency of Treasury auctions, caused long-term Treasury rates to fall.
However, first quarter euphoria ended in April, at the prospect of further Fed
tightening in May and June. On May 16th, the Fed raised rates 50 basis points
(0.50%), setting the target federal funds rate at 6.5%. Despite the threat of
higher rates at the Fed's June meeting, the bond market uncharacteristically
began a strong rally as a number of economic releases at that time suggested
that the Fed's tightening actions were beginning to have the desired impact on
the economy. Slowing economic numbers in June and July resulted in a 20 to 40
basis point (0.20% to 0.40%) shift in the yield curve, with the largest decline
occurring in bonds maturing between two and five years.
What is your outlook for the Fund?
We believe the best news about Fed policy and a slower economy is already
factored into the market. Therefore, it does not make sense to lengthen the
Fund's duration beyond benchmark levels at this point. Instead, we will look to
add incremental yield with agency benchmark securities. Spreads in this sector
are still historically wide and we feel should tighten as the economy slows.
Over time, we will also look at unwinding the barbell structure through the
replacement of short floating rate securities with intermediate issues.
[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 The Asset Management Group of Bank of Hawaii. Mr. Todani has 15 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 degree from the University of Washington and is a
Chartered Financial Analyst.
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.
[GRAPH]
Growth of a $10,000 Investment
Merrill Lynch
3-5-Year
Class Y Shares U.S. Treasury
Class A Shares* (No Sales Charge) Index
12/13/93 9,775 10,000 10,000
7/31/94 9,506 9,724 9,878
7/31/95 10,101 10,361 10,766
7/31/96 10,493 10,793 11,266
7/31/97 11,219 11,568 12,316
7/31/98 11,918 12,331 13,171
7/31/99 12,252 12,709 13,722
7/31/2000 12,739 13,248 14,416
Average Annual Total Return as of July 31, 2000
Since
Inception
1 Year 5 Year (12/13/93)
-------------------------------------------------------------------------
Class A Shares* 1.60% 4.28% 3.72%
-------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 4.24% 5.04% 4.33%
-------------------------------------------------------------------------
*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 charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
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.
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. Investors cannot invest directly in an index,
although they can invest in its underlying securities.
15
<PAGE>
Pacific Capital Tax-Free Securities Fund+
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
For the 12 months ended July 31, 2000, the Pacific Capital Tax-Free Securities
Fund posted a positive return of 3.28%++ (for Class A Shares without sales
charge), compared to its benchmark, the Lehman Brothers Municipal Bond Index,
which gained 4.31%. When comparing the Fund to the Index, one must remember
that the Index represents a broad range of national issues, whereas the Fund
typically invests up to 60% of assets in Hawaii municipal bonds. While Hawaii
holdings were a positive factor in the year 2000 due to an improved economy,
they were a drag on performance during the last half of 1999.
What were the major factors in the municipal markets that influenced the Fund's
performance?
During the period, the Federal Reserve raised the overnight federal funds rate
six times from 4.75% to 6.5%. As a result of rapidly increasing rates and the
uncertainties posed by Y2K issues, municipal markets performed poorly during
the second half of 1999. The circumstances were further exacerbated by
investors selling municipals at a loss, to offset gains from the stock market.
High quality long-term municipal bond yields increased approximately 75 basis
points (0.75%) during this period.
The first half of 2000 proved to be much more favorable. With Y2K issues
forgotten and substantially lower issuance, long-term municipal bond yields
declined approximately 50 basis points (0.50%). Although tax-free mutual fund
cash-flows have been flat at best, retail demand increased dramatically after
the July 1st coupon payment date, putting further pressure on a much-diminished
supply. As a result, yields declined and the municipal bond yield curve
flattened out, causing the municipal market to out-perform the taxable market.
What is your outlook for the Fund?
The potential for further Fed hikes appears to have abated as recent economic
indicators reflect signs of slowing and inflation continues to be benign. We
believe that the municipal market supply will increase during the second half,
but will continue to lag last year's issuance. Barring strong resurgent growth,
which could ignite inflation and institutional cash-flow surprises, we feel the
municipal market should stay on course with further gains.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
[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 The Asset Management Group of Bank of Hawaii. Ms. Lim has been managing
money market and tax-free income portfolios with the Adviser for over nine
years. Her prior experience includes positions in international finance at Bank
of Hawaii and as cash manager at BHP Hawaii. Ms. Lim earned a Bachelor of
Science degree in finance at Hawaii Pacific University and is a Certified
Credit Administrator.
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Shares
Class A Class B (No Sales Lehman Brothers
Shares* Shares Charge) Municipal Bond Index
7/31/90 9,604 10,000 10,000 10,000
7/31/91 10,358 10,785 10,806 10,874
7/31/92 11,718 12,201 12,263 12,370
7/31/93 12,744 13,269 13,368 13,462
7/31/94 12,633 13,153 13,277 13,714
7/31/95 13,477 14,032 14,240 14,794
7/31/96 14,219 14,805 15,051 15,770
7/31/97 15,549 16,189 16,493 17,390
7/31/98 16,348 17,009 17,417 18,431
7/31/99 16,677 17,249 17,812 18,961
7/31/2000 17,224 17,687 18,446 19,780
For performance purposes the above graph has not been adjusted for CDSC charges.
Average Annual Total Return as of July 31, 2000
1 Year 5 Year 10 Year
------------------------------------------------------------------------------
Class A Shares* (0.88)% 4.17% 5.59%
------------------------------------------------------------------------------
Class B Shares** (1.39)% 4.57% 5.87%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 3.55% 5.31% 6.31%
------------------------------------------------------------------------------
*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 charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
++ The quoted performance of the Pacific Capital Tax-Free Securities Fund
includes the performance of certain common trust fund ("Commingled")
accounts advised by The Asset Management Group of Bank of Hawaii and managed
the same as the Fund in all material respects, for periods dating back to
July 31, 1990, 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. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
17
<PAGE>
Pacific Capital Tax-Free Short Intermediate Securities Fund+
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
For the 12 months ended July 31, 2000, the Pacific Capital Tax-Free Short
Intermediate Securities Fund posted a positive return of 3.19%++ (for Class A
Shares without sales charge), compared to its benchmark, the Lehman Brothers
5-Year Municipal Bond Index, which gained 4.21%. When comparing the Fund to the
Index, one must remember that the Index represents a broad range of national
issues, whereas the Fund typically invests up to 60% of assets in Hawaii
municipal bonds. The slight under-performance of the Fund can be attributed to
the lagging performance of the Hawaii holdings during the last half of 1999.
What were the major factors in the municipal markets that influenced the Fund's
performance?
During the last half of 1999, high-quality short-term municipal rates spiked
approximately 56 basis points (0.56%), following the Fed's multiple rate hikes.
The municipal market performed poorly during the second half of 1999, as a
result of rapidly increasing rates and the uncertainty posed by Y2K issues.
The first half of 2000 proved to be much more favorable. With Y2K issues behind
and substantially lower issuance, high- quality short-term municipal bond rates
declined by approximately 35 basis points (0.35%). As a result, extremely
strong retail demand has pushed rates down and compressed yields significantly
on the front-end of the yield curve.
What is your outlook for the Fund?
We believe the potential for further Fed hikes appears to have abated as recent
economic indicators reflect signs of slowing and inflation continues to be
benign. We believe that the municipal market supply will increase during the
second half but will continue to lag last year's issuance. Barring strong
resurgent growth, which could ignite inflation and institutional cash-flow
surprises, we feel the municipal market should stay on course with further
gains.
+ The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
[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 The Asset Management Group of Bank of Hawaii. Ms. Lim has been managing
money market and tax-free income portfolios with the Adviser for over nine
years. Her prior experience includes positions in international finance at Bank
of Hawaii and as cash manager at BHP Hawaii. Ms. Lim earned a Bachelor of
Science degree in finance at Hawaii Pacific University and is a Certified
Credit Administrator.
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 among bonds that are of similar structure and quality.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Class A Shares Lehman Brothers 5-Year
Shares* (No Sales Charge) Municipal Bond Index
7/31/90 9,774 10,000 10,000
7/31/91 10,416 10,688 10,858
7/31/92 11,247 11,560 12,221
7/31/93 11,722 12,088 13,029
7/31/94 11,912 12,310 13,393
7/31/95 12,338 12,819 14,389
7/31/96 12,758 13,289 15,046
7/31/97 13,404 14,001 16,137
7/31/98 13,852 14,534 16,909
7/31/99 14,192 14,913 17,508
7/31/2000 14,644 15,426 18,245
Average Annual Total Return as of July 31, 2000
1 Year 5 Year 10 Year
-----------------------------------------------------------------------------
Class A Shares* 0.86% 3.02% 3.89%
-----------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 3.44% 3.77% 4.43%
-----------------------------------------------------------------------------
*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 charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
++ 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 The Asset Management Group of Bank of
Hawaii and managed the same as the Fund in all material respects, for
periods dating back to July 31, 1990, 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. Investors cannot invest directly in an index,
although they can invest in its underlying securities.
19
<PAGE>
Pacific Capital International Stock Fund+
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
International markets finished strong in 1999, and moved into the year 2000
with much of the same vigor. The fact that the Fed had been raising U.S.
interest rates for months seemed of little concern. It was not until the
Federal Reserve pushed rates above 1998 levels that the markets realized that
the Fed was serious about slowing the U.S. economy. The ripple effects of U.S.
monetary policy moved rapidly through the world markets, driving many non-U.S.
markets lower. For the 12-month period ended July 31, 2000, the Pacific Capital
International Stock Fund was favorably positioned and outperformed its
benchmark, the MSCI EAFE(R) Index, returning 25.62%++ (for Class A shares
without sales charge) compared to 9.01%, respectively.
What were the major factors in the International markets that influenced the
Fund's performance?
During the recent months, market sentiment throughout Europe has remained
negative as investors worried that higher-than-expected oil prices, rising
interest rates and weakness in the Euro might curb economic expansion. In
addition, the European Central Bank raised short-term interest rates 75 basis
points (0.75%) for its 11 member countries. This negativity has cast a shadow
on any positive developments. For example, favorable developments late in the
period such as the announcement of tax reforms in Germany, the continued robust
economic growth, the declining unemployment rate in a number of developed
European countries, and the brisk pace of mergers and acquisitions globally did
little to inspire international equity markets.
What is your outlook for the Fund?
Amid changing macroeconomic conditions globally, we feel international market's
remain a source of attractive opportunities. We are currently seeing the
ongoing trends of deregulation, structural reforms, privatization and the
continued brisk pace of mergers and acquisitions as compelling factors that are
fueling the growth of the equity markets overseas. Demographic shifts such as
an aging population in Europe and Japan are contributing to a rise in
retirement planning, resulting in the increasing popularity of equity
investing. In Japan--despite mixed readings on the economy--we are encouraged
by the improvement in certain areas such as capital equipment spending, which
signifies greater business confidence.
+ 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, which does not reflect the higher 12b-1
fees. Had the higher 12b-1 fees been incorporated, total return figures may
have been adversely affected.
[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 15 years investment
experience, is Chief Investment Officer for Global Equity Management and has
extensive experience managing assets for clients. Mr. Speidell has more than 29
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.
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Class A Class B Shares MSCI EAFER
Shares* Shares** (No Sales Charge) Index
12/2/98 9,479 10,000 10,000 10,000
7/31/99 11,336 11,400 11,990 11,128
7/31/2000 14,241 14,422 15,065 12,131
Average Annual Total Return as of July 31, 2000
Since
Inception
1 Year (12/2/98)
------------------------------------------------------------------------------
Class A Shares* 19.05% 23.69%
------------------------------------------------------------------------------
Class B Shares** 20.56% 24.63%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 25.65% 27.94%
------------------------------------------------------------------------------
*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.
The charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
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(R) 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. Investors cannot invest
directly in an index although they can invest in its underlying securities.
21
<PAGE>
Pacific Capital Value Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
The dramatic pick-up in market volatility during the last fiscal year created
many rewarding investment opportunities for the Pacific Capital Value Fund. For
the 12-month period ending July 31, 2000, the Fund posted a gain of 5.21%+ (for
Class A Shares without sales charge), which compared favorably to its
benchmark, the Standard & Poor's BARRA Value Index, which returned -0.15% for
the period.
What were the major factors in the U.S. equity markets that influenced the
Fund's performance?
Early in the calendar year, technology stocks continued to drive the markets as
they did for much of 1999. However, during the last fiscal quarter, investor
confidence declined in harmony with increased stock market volatility. As the
changed sentiment periodically drove money out of the more aggressive equity
sectors, the same dollars poured into defensive areas such as consumer staples
and utilities. This shift benefited the Fund's previously established focus in
these value-oriented stocks. Concerns that "the end of the semiconductor cycle
is near" opened the door to this typically pricey group. Believing the
semiconductor growth cycle to be far from over, we added/initiated positions in
communications chip maker LSI Logic, electronic testing device maker Teradyne,
and power semiconductor producer International Rectifier. In the capital goods
area the Fund also purchased beaten down companies like electronic components
manufacturer Vishay Intertechnology and diversified manufacturing/services
company Tyco International.
What is your outlook for the Fund?
We anticipate that the stock market's unprecedented and consistently high
returns over the past several years will keep investors on their toes, as they
attempt to protect their coveted gains. Profit-taking will likely persist on
speculation that either an economic slowdown will pressure earnings growth, or
that the country's recent economic prosperity could spur increased inflation,
leading the Federal Reserve to take further restrictive steps with interest
rates, which we do not anticipate. We remain bullish on the U.S. stock market
over the long-term and will attempt to take full advantage of the
aforementioned volatility and profit-taking to purchase high-quality companies.
+ 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.
[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 33 years prior
investment experience and currently serves as Vice President and Manager,
Pacific Century Investment Group. Prior to joining The Asset Management Group
of Bank of Hawaii, Mr. Zerfoss held the position of Portfolio Manager with
First National Bank of Chicago. Mr. Zerfoss earned a Bachelor of Arts degree 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
eight years prior experience as Sector Analyst and Senior Portfolio Manager
with The Asset Management Group of Bank of Hawaii. Mr. Takemoto earned a
Bachelor of Business Administration degree from Santa Clara University and is a
Chartered Financial Analyst. Derwin Osada has six years investment experience
with The Asset Management Group of Bank of Hawaii and currently serves as
Investment Officer and Security Analyst. Mr. Osada earned a Bachelor of Science
degree from the University of Southern California and is a Chartered Financial
Analyst. Together, the Value Fund team has a combined 47 years of investment
management experience.
22
<PAGE>
Pacific Capital Value Fund
--------------------------------------------------------------------------------
Fund Objective:
Seeking long-term growth first and, current income second, 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.
[GRAPH]
Growth of a $10,000 Investment
Class Y Shares Standard & Poor's
Class A Shares* Class B Shares** (No Load) BARRA Value Index
12/1/98 9,597 10,000 10,000 10,000
7/31/99 10,395 10,788 10,856 11,547
7/31/2000 10,936 11,252 11,446 11,529
Aggregate Total Return as of July 31, 2000
Since
Inception
1 Year (12/3/98)
------------------------------------------------------------------------------
Class A Shares* 1.02% 5.53%
------------------------------------------------------------------------------
Class B Shares** 0.30% 5.04%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 5.44% 8.46%
------------------------------------------------------------------------------
*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.
The charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
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. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
23
<PAGE>
Pacific Capital Small Cap Fund+
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
Despite a modest pickup in inflation and rising interest rates, the U.S. equity
markets provided positive returns for the 12-month period ended July 31, 2000.
For the fiscal year, the small capitalization U.S. stock universe, as measured
by the Russell 2000 Stock Index/2/, outperformed the S&P 500 Stock Index/1/,
returning 13.77% and 8.97%, respectively. For the same 12-month period ended
July 31, 2000, the Pacific Capital Small Cap Fund returned 1.51%++ (for Class A
Shares without sales charge) compared to its benchmark the Russell 2000 Value
Index which returned 4.85%.
What were the major factors in the U.S. equity markets that influenced the
Fund's performance?
The U.S. equity markets began the year 2000 much the way they finished the
fourth quarter of 1999, with the technology heavy Nasdaq Composite Index
driving the markets higher. However, the trend rapidly reversed late in the
first quarter of 2000 as the markets realized that the Federal Reserve was
intent on slowing the economy. From its peak on March 10th to its low on May
23rd, the Nasdaq lost approximately 37% in value. During this time, market
sectors that had been nearly forgotten came back into favor as investors headed
to "calmer" territory. This move proved to be favorable for the "value" sectors
of the market. For the three-month period ending July 31, 2000, the Russell
2000 Value Index delivered a return of 4.73%, compared to the Russell 2000
Growth Index/3/, which returned -5.80%.
What is your outlook for the Fund?
Investors continue to grapple with two factors that we believe will largely
dictate future gains in the U.S. equity market: the Fed and corporate profits.
Although there have been signs that the U.S. economy has started to feel the
effects of six interest rate increases since June of 1999, investors remain
concerned and cautious. We believe one of the essential factors that will
support the case for the continued strength in corporate profits this year will
be the expectation that the U.S. economy will remain on a sustainable growth
path. Despite recent indications of a slowdown in economic growth, most
economic indicators for the first half of 2000 show no sign of an approaching
recession.
+ 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.
/1/The Standard and Poor's 500 Stock Index is an unmanaged index generally
representative of the U.S. Stock Market as a whole.
/2/The Russell 2000 Stock Index is an unmanaged index comprised of securities
with a greater-than-average growth orientation. Companies in this index tend
to exhibit higher price-to-book and price-to-earnings ratios.
/3/The Russell 2000 Growth Index is an unmanaged index comprised of the
securities in the Russell 2000 Index with a greater-than-average growth
orientation. Companies in this index tend to exhibit higher price to book and
price-earnings ratios.
Investors cannot invest directly in an index, although they can invest in the
underlying securities.
[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 15 years investment experience,
is Chief Investment Officer for Global Equity Management and has extensive
experience managing assets for clients. Mr. Speidell has more than 29 years
investment management experience, including prior experience with Batterymarch
Financial Management and Putnam Management Company. Mr. Stuckelman, Portfolio
Manager, has 8 years investment experience, and was previously a senior
quantitative analyst with Wells Fargo Bank's Investment Management Group. Mr.
Kane, with 30 years of economic investment experience, previously directed the
investment group at ARCO Investment Management Company.
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 sub-
adviser believes to be exhibiting solid fundamental strength and attractive
valuations.
[GRAPH]
Growth of a $10,000 Investment
Class Y
Class A Class B Shares Russell 2000
Shares* Shares** (No Sales Charge) Value Index
12/3/98 9,479 10,000 10,000 10,000
7/31/99 10,108 10,113 10,675 10,599
7/31/2000 10,261 10,303 10,869 12,058
Aggregate Total Return as of July 31, 2000
Since
Inception
1 Year (12/3/98)
-----------------------------------------------------------------------------
Class A Shares* (3.81)% 1.56%
-----------------------------------------------------------------------------
Class B Shares** (3.04)% 1.81%
-----------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 1.82% 5.14%
-----------------------------------------------------------------------------
*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.
The charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
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. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
25
<PAGE>
Pacific Capital Balanced Fund
--------------------------------------------------------------------------------
How did the Fund perform compared to its benchmark?
In a particularly volatile year for both stocks and bonds alike, we are very
pleased with the strong performance of the Pacific Capital Balanced Fund, which
posted a gain of 19.19% (for Class A Shares without sales charge) for the
12-month period ended July 31, 2000. Comparatively, the Fund's two benchmarks,
the S&P's 500 Stock Index and the Lehman Brothers Government/Credit Bond Index,
gained 8.97% and 5.28%, respectively.
What were the major factors in the U.S. equity markets that influenced the
Fund's performance?
During the last year we focused on the benefits of three major trends: 1)
strong technology-related capital spending; 2) health care, which we believe
will benefit from the aging population, improved treatment regimens, and a
growing number of new products which will enhance the quality of life; and 3)
the financial industry's ongoing consolidation/asset gathering capabilities.
Some of the Fund's top equity holdings in the technology sector include Corning
(+230%) and EMC (+166%). Health care holdings include PE Biosystems (+215%) and
Elan (+79%), and financial holdings include Morgan Stanley (+95%) and Marsh &
McLennan (+55%).
What were the major factors in the fixed income markets that influenced the
Fund's performance?
The bond markets performed much differently in the first half of 2000 than they
did in the latter half of 1999. Interest rates rose dramatically in the last
half of 1999, as the Federal Reserve raised rates three times, resulting in
poor performance for the bond market as a whole. However, early in 2000, the
bond markets rallied as the Treasury announced its intent to buy back as much
as $30 billion in long-term debt. This news, coupled with the decreasing size
and frequency of Treasury auctions, caused long-term Treasury rates to fall.
Because of the decline in long-term rates and the Fed's further moves to raise
short-term rates, the yield curve became inverted, with long-term rates lower
than short-term rates. Our high-quality portfolio helped performance during
this period.
What is your outlook for the Fund?
The Fund, with its low cash position, growth orientation and high quality fixed
income assets, is positioned to do well in an environment of continued moderate
economic growth, modest inflation, and healthy corporate earnings. For the
equity portion of the Fund, we will continue to focus on the technology and
financial services sectors of the markets. As for the fixed income portion, we
view the current spreads as an opportunity to increase our corporate bond
exposure, and will continue to invest only in high-quality securities.
[PHOTO OF CLYDE POWERS APPEARS HERE]
[PHOTO OF JANET E. KATAKURA APPEARS HERE]
A team comprised of Clyde Powers, equity investment manager, and Janet E.
Katakura, fixed-income investment manager, is responsible for the management of
the Fund. Mr. Powers serves as Vice President on the Equity Investment Team at
The Asset Management Group of Bank of Hawaii. Mr. Powers has 28 years of
experience managing growth funds and growth-oriented portfolios for
institutional investors and is a Chartered Financial Analyst. Prior to joining
the Adviser, 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. As Vice President, Ms. Katakura currently serves as
Taxable Fixed-Income Team Leader. Ms. Katakura has 28 years of experience in
the investment industry, her most recent 18 years at The Asset Management Group
of Bank of Hawaii. Prior to joining the Adviser, 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.Together, the Balanced
Fund team has a combined 56 years of investment management experience.
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.
[GRAPH]
Growth of a $10,000 Investment
Class Y Lehman Brothers
Class A Class B Shares Standard & Poor's Government/Credit
Shares* Shares** (No Sales Charge) 500 Stock Index Bond Index
6/21/99 9,597 10,000 10,000 10,000 10,000
7/31/99 9,409 9,302 9,806 9,928 9,972
7/31/2000 11,215 11,190 11,725 10,819 10,542
Aggregate Total Return as of July 31, 2000
Since
Inception
1 Year (6/21/99)
------------------------------------------------------------------------------
Class A Shares* 14.40% 10.85%
------------------------------------------------------------------------------
Class B Shares** 14.37% 10.63%
------------------------------------------------------------------------------
Class Y Shares (No Sales Charge) 19.57% 19.57%
------------------------------------------------------------------------------
*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 charts above represent a comparison of a hypothetical $10,000 investment in
the indicated share class versus a similar investment in the Fund's benchmark.
The performance of the Pacific Capital Balanced Fund is measured against the
Standard & Poor's 500 Stock Index and the Lehman Brothers Government/Credit
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/Credit 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.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
27
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2000
<TABLE>
<CAPTION>
Diversified
Growth Stock Growth and New Asia Fixed Income
Fund Income Fund Growth Fund Fund
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $445,242,610;
$170,407,696;
$26,148,076; and
$245,952,987,
respectively)........... $563,234,991 $229,021,959 $28,561,648 $245,138,710
Foreign currency (cost
$689,217)................ -- -- 691,762 --
Interest and dividends
receivable............... 126,319 93,150 14,101 4,229,929
Receivable for capital
shares issued............ 34,667 50,455 100 --
Receivable from brokers
for investments sold..... 3,318,649 1,372,202 74,001 --
Reclaims receivable...... -- -- 230 --
Prepaid expenses and
other assets............. 13,473 5,493 547 6,710
------------ ------------ ----------- ------------
Total Assets........... 566,728,099 230,543,259 29,342,389 249,375,349
------------ ------------ ----------- ------------
LIABILITIES:
Dividends payable........ -- -- -- 40,319
Payable for capital
shares redeemed.......... 93,230 13,110 22,992 5,600
Payable to brokers for
investments purchased.... 2,211,486 578,710 -- --
Accrued expenses and
other payables:
Investment advisory
fees.................... 400,452 158,759 23,832 94,420
Administration fees..... 14,903 6,057 732 6,538
Distribution fees....... 31,914 15,886 1,349 3,207
Other................... 90,428 37,495 26,778 44,632
------------ ------------ ----------- ------------
Total Liabilities...... 2,842,413 810,017 75,683 194,716
------------ ------------ ----------- ------------
NET ASSETS:
Capital (no par value)... 314,752,161 142,123,632 27,768,244 261,821,006
Undistributed
(distributions in excess
of) net investment
income.................. -- -- (58,414) (2,458)
Accumulated undistributed
(distributions in excess
of) net realized gains
from investment
transactions............ 131,141,144 28,995,347 (859,218) (11,823,638)
Net unrealized
appreciation
(depreciation) from
investments.............. 117,992,381 58,614,263 2,413,572 (814,277)
Net unrealized
appreciation from
translation of assets
and liabilities in
foreign currencies...... -- -- 2,522 --
------------ ------------ ----------- ------------
Net Assets............. $563,885,686 $229,733,242 $29,266,706 $249,180,633
============ ============ =========== ============
Net Assets
Class A................. $ 30,971,487 $ 12,540,442 $ 2,704,394 $ 5,251,849
Class B................. 28,789,088 15,593,165 822,576 2,759,485
Class Y................. 504,125,111 201,599,635 25,739,736 241,169,299
------------ ------------ ----------- ------------
Total.................. $563,885,686 $229,733,242 $29,266,706 $249,180,633
============ ============ =========== ============
Outstanding units of
beneficial interest
(shares)
Class A................. 1,570,130 587,983 216,292 513,950
Class B................. 1,489,763 746,740 66,652 270,482
Class Y................. 25,265,300 9,422,839 2,046,749 23,454,552
------------ ------------ ----------- ------------
Total.................. 28,325,193 10,757,562 2,329,693 24,238,984
============ ============ =========== ============
Net Asset Value
Class A--redemption
price per share......... $ 19.73 $ 21.33 $ 12.50 $ 10.22
============ ============ =========== ============
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
nearest cent).......... $ 20.55 $ 22.22 $ 13.19 $ 10.65
============ ============ =========== ============
Class B--offering price
per share*.............. $ 19.32 $ 20.88 $ 12.34 $ 10.20
============ ============ =========== ============
Class Y--offering and
redemption price per
share................... $ 19.95 $ 21.39 $ 12.58 $ 10.28
============ ============ =========== ============
</TABLE>
--------
* Redemption price per share varies based on length of time shares are held
(Note 5).
See notes to financial statements.
28
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2000
<TABLE>
<CAPTION>
Short Intermediate Tax-Free
Ultra Short U.S. Treasury Tax-Free Short Intermediate
Government Securities Securities Securities
Fund Fund Fund Fund
----------- ------------------ ------------ ------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $46,913,022;
$32,341,028;
$418,618,507; and
$42,489,019,
respectively).......... $46,944,931 $32,157,620 $433,254,095 $42,230,557
Interest and dividends
receivable.............. 548,650 701,374 5,075,153 398,545
Receivable from brokers
for investments sold.... -- -- 5,257,455 1,272,831
Receivable from
investment adviser...... 13,592 -- -- --
Unamortized offering
costs................... 6,749 -- -- --
Prepaid expenses and
other assets............ -- 1,004 12,553 1,397
----------- ----------- ------------ -----------
Total Assets.......... 47,513,922 32,859,998 443,599,256 43,903,330
----------- ----------- ------------ -----------
LIABILITIES:
Dividends payable....... 8,156 4,769 58,199 4,419
Payable for capital
shares redeemed......... -- 4,674 -- --
Payable to brokers for
investments purchased... -- -- 1,008,660 1,040,000
Accrued expenses and
other payables:
Investment advisory
fees................... -- 8,335 167,892 14,591
Administration fees.... 617 806 11,601 1,053
Distribution fees...... -- 93 3,871 307
Other.................. 21,915 9,195 61,132 14,393
----------- ----------- ------------ -----------
Total Liabilities..... 30,688 27,872 1,311,355 1,074,763
----------- ----------- ------------ -----------
NET ASSETS:
Capital (no par value).. 47,444,208 33,412,209 430,613,173 43,386,710
Accumulated
undistributed net
investment income...... 7,143 47 36 --
Accumulated
undistributed
(distributions in
excess) net realized
gains from investment
transactions........... (26) (396,722) (2,960,896) (299,681)
Net unrealized
appreciation
(depreciation) from
investments............. 31,909 (183,408) 14,635,588 (258,462)
----------- ----------- ------------ -----------
Net Assets............ $47,483,234 $32,832,126 $442,287,901 $42,828,567
=========== =========== ============ ===========
Net Assets
Class A................ $ -- $ 452,488 $ 6,831,997 $ 1,457,555
Class B................ -- -- 2,778,456 --
Class Y................ 47,483,234 32,379,638 432,677,448 41,371,012
----------- ----------- ------------ -----------
Total................. $47,483,234 $32,832,126 $442,287,901 $42,828,567
=========== =========== ============ ===========
Outstanding units of
beneficial interest
(shares)
Class A................ -- 48,647 663,649 147,831
Class B................ -- -- 269,942 --
Class Y................ 4,736,495 3,474,941 41,875,520 4,173,643
----------- ----------- ------------ -----------
Total................. 4,736,495 3,523,588 42,809,111 4,321,474
=========== =========== ============ ===========
Net Asset Value
Class A--redemption
price per share........ $ -- $ 9.30 $ 10.29 $ 9.86
=========== =========== ============ ===========
Class A--maximum sales
charge................. -- 2.25% 4.00% 2.25%
----------- ----------- ------------ -----------
Class A--maximum
offering price per
share (100%/(100%-
maximum sales charge)
of net asset value
adjusted to nearest
cent)................. $ -- $ 9.51 $ 10.72 $ 10.09
=========== =========== ============ ===========
Net Asset Value
Class B--offering price
per share*............. $ -- $ -- $ 10.29 $ --
=========== =========== ============ ===========
Class Y--offering and
redemption price per
share.................. $ 10.02 $ 9.32 $ 10.33 $ 9.91
=========== =========== ============ ===========
</TABLE>
--------
* Redemption price per share varies based on length of time shares are held
(Note 5).
See notes to financial statements.
29
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2000
<TABLE>
<CAPTION>
International Stock Value Small Cap Balanced
Fund Fund Fund Fund
------------------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $108,692,832;
$195,994,234;
$36,924,174 and
$178,216,430,
respectively).......... $116,987,623 $206,028,725 $37,678,995 $215,122,961
Foreign currency (Cost
$308,938)............... 308,938 -- -- --
Interest and dividends
receivable.............. 92,481 109,523 63,130 1,421,189
Receivable for capital
shares issued........... 6,023 13,766 -- --
Receivable from brokers
for investments sold.... 3,242,467 376,221 -- 856,310
Reclaims receivable..... 72,972 -- -- --
Unrealized appreciation
on foreign currencies
contracts............... 9,285 -- -- --
Prepaid expenses and
other assets............ 2,434 2,383 973 5,686
------------ ------------ ----------- ------------
Total Assets.......... 120,722,223 206,530,618 37,743,098 217,406,146
------------ ------------ ----------- ------------
LIABILITIES:
Payable for capital
shares redeemed......... 3,063 2,000 2,000 --
Payable to brokers for
investments purchased... 4,970,110 585,114 187,010 344,988
Unrealized depreciation
on foreign currencies
contracts............... 63,186 -- -- --
Accrued expenses and
other payables:
Investment advisory
fees................... 105,888 142,627 32,146 130,667
Administration fees.... 3,094 5,419 970 5,718
Distribution fees...... 1,951 1,118 243 1,037
Other.................. 48,836 55,534 13,975 37,453
------------ ------------ ----------- ------------
Total Liabilities..... 5,196,128 791,812 236,344 519,863
------------ ------------ ----------- ------------
NET ASSETS:
Capital (no par value).. 86,784,395 172,729,101 35,576,687 156,864,391
Accumulated
undistributed net
investment income...... 53,901 -- -- 28,534
Accumulated
undistributed net
realized gains from
investment
transactions........... 20,413,161 22,975,214 1,175,246 23,086,827
Net unrealized
appreciation from
investments............. 8,294,791 10,034,491 754,821 36,906,531
Net unrealized
depreciation from
translation of assets
and liabilities in
foreign currencies..... (20,153) -- -- --
------------ ------------ ----------- ------------
Net Assets............ $115,526,095 $205,738,806 $37,506,754 $216,886,283
============ ============ =========== ============
Net Assets
Class A................ $ 4,362,394 $ 1,355,005 $ 330,421 $ 258,578
Class B................ 1,201,752 1,018,064 214,267 1,191,723
Class Y................ 109,961,949 203,365,737 36,962,066 215,435,982
------------ ------------ ----------- ------------
Total................. $115,526,095 $205,738,806 $37,506,754 $216,886,283
============ ============ =========== ============
Outstanding units of
beneficial interest
(shares)
Class A................ 299,769 126,285 31,761 22,574
Class B................ 83,763 95,554 20,791 104,134
Class Y................ 7,538,004 18,940,297 3,548,202 18,801,345
------------ ------------ ----------- ------------
Total................. 7,921,536 19,162,136 3,600,754 18,928,053
============ ============ =========== ============
Net Asset Value
A Class--redemption
price per share........ $ 14.55 $ 10.73 $ 10.40 $ 11.45
============ ============ =========== ============
A Class--maximum sales
charge................. 5.25% 4.00% 5.25% 4.00%
------------ ------------ ----------- ------------
A Class--maximum
offering price per
share (100%/(100%-
maximum sales charge)
of net asset value
adjusted to nearest
cent)................. $ 15.36 $ 11.18 $ 10.98 $ 11.94
============ ============ =========== ============
Net Asset Value
B Class--offering price
per share*............. $ 14.35 $ 10.65 $ 10.31 $ 11.44
============ ============ =========== ============
Y Class--offering and
redemption price per
share.................. $ 14.59 $ 10.74 $ 10.42 $ 11.46
============ ============ =========== ============
</TABLE>
--------
* Redemption price per share varies based on length of time shares are held
(Note 5).
See notes to financial statements.
30
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Year Ended July 31, 2000
<TABLE>
<CAPTION>
Diversified
Growth Stock Growth and New Asia Fixed Income
Fund Income Fund Growth Fund Fund
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.......... $ 169,499 $ -- $ 58,456 $15,420,052
Dividend income.......... 2,965,469 2,296,013 173,892 213,299
Foreign withholding tax.. (10,218) (1,696) (21,245) --
------------ ----------- ----------- -----------
Total Income........... 3,124,750 2,294,317 211,103 15,633,351
------------ ----------- ----------- -----------
Expenses:
Investment advisory fees. 4,158,713 1,654,881 240,044 1,409,335
Administration fees...... 1,039,683 413,722 53,343 469,780
Distribution fees--Class
A........................ 191,867 81,024 21,572 16,192
Distribution fees--Class
B........................ 186,286 113,865 6,031 22,903
Accounting fees.......... 147,583 66,148 16,313 79,659
Custodian fees........... 37,521 17,436 111,920 19,796
Transfer agent fees...... 134,103 97,145 47,922 62,803
Legal and audit fees..... 46,731 8,565 2,484 19,595
Trustees' fees and
expenses................. 34,435 13,891 1,771 15,767
Registration and filing
fees..................... 20,901 2,189 2,469 14,760
Other.................... 60,678 37,645 2,065 24,568
------------ ----------- ----------- -----------
Total expenses before
voluntary fee
reductions............. 6,058,501 2,506,511 505,934 2,155,158
Expenses voluntarily
reduced................ (335,843) (136,757) (27,717) (457,087)
------------ ----------- ----------- -----------
Net Expenses........... 5,722,658 2,369,754 478,217 1,698,071
------------ ----------- ----------- -----------
Net Investment Income
(Loss)................... (2,597,908) (75,437) (267,114) 13,935,280
------------ ----------- ----------- -----------
Realized/Unrealized Gains
(Losses) from
Investments:
Net realized gains
(losses) from investments
transactions............. 162,640,111 30,917,478 5,169,225 (8,091,523)
Net realized losses from
foreign currency
transactions............ -- -- (86,414) --
Net change in unrealized
appreciation
(depreciation) from
investments.............. 22,028,954 20,639,155 (1,407,741) 4,354,183
Net change in unrealized
appreciation from assets
and liabilities in
foreign currencies...... -- -- 1,718 --
------------ ----------- ----------- -----------
Net realized/unrealized
gains (losses) from
investments.............. 184,669,065 51,556,633 3,676,788 (3,737,340)
------------ ----------- ----------- -----------
Change in net assets
resulting from
operations............... $182,071,157 $51,481,196 $ 3,409,674 $10,197,940
============ =========== =========== ===========
</TABLE>
See notes to financial statements.
31
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Year Ended July 31, 2000
<TABLE>
<CAPTION>
Ultra Short Intermediate Tax-Free
Short U.S. Treasury Tax-Free Short Intermediate
Government Securities Securities Securities
Fund (a) Fund Fund Fund
---------- ------------------ ----------- ------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $271,318 $1,672,625 $24,106,116 $2,007,512
Dividend income......... 5 19,505 61,247 21,130
-------- ---------- ----------- ----------
Total Income.......... 271,323 1,692,130 24,167,363 2,028,642
-------- ---------- ----------- ----------
Expenses:
Investment advisory
fees.................... 15,720 148,865 2,564,786 223,997
Administration fees..... 7,860 59,546 854,932 89,599
Distribution fees--Class
A....................... -- 3,651 44,451 8,253
Distribution fees--Class
B....................... -- -- 29,650 --
Accounting fees......... 1,446 10,744 147,879 19,823
Custodian fees.......... 690 5,532 36,799 13,574
Transfer agent fees..... 2,117 31,760 69,781 33,727
Legal and audit fees.... 6,267 2,841 33,156 3,395
Amortization of offering
costs................... 2,347 -- -- --
Trustees' fees and
expenses................ 33 2,217 29,816 3,409
Registration and filing
fees.................... 12,939 1,137 6,765 479
Other................... 1,696 3,327 40,846 5,138
-------- ---------- ----------- ----------
Total expenses before
voluntary fee
reductions............ 51,115 269,620 3,858,861 401,394
Expenses voluntarily
reduced............... (21,760) (76,866) (841,820) (72,699)
Expenses reimbursed... (13,592) -- -- --
-------- ---------- ----------- ----------
Net Expenses.......... 15,763 192,754 3,017,041 328,695
-------- ---------- ----------- ----------
Net Investment Income... 255,560 1,499,376 21,150,322 1,699,947
-------- ---------- ----------- ----------
Realized/Unrealized
Gains (Losses) From
Investments:
Net realized losses on
investment transactions. (26) (390,264) (2,960,896) (299,682)
Net change in unrealized
appreciation
(depreciation) from
investments............ 31,909 111,397 (2,811,306) 75,069
-------- ---------- ----------- ----------
Net realized/unrealized
gains (losses) from
investments............. 31,883 (278,867) (5,772,202) (224,613)
-------- ---------- ----------- ----------
Change in net assets
resulting from
operations.............. $287,443 $1,220,509 $15,378,120 $1,475,334
======== ========== =========== ==========
</TABLE>
--------
(a) For the period June 1, 2000 (commencement of operations) to July 31, 2000.
See notes to financial statements.
32
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Operations
For the Year Ended July 31, 2000
<TABLE>
<CAPTION>
International Stock Value Small Cap Balanced
Fund Fund Fund Fund
------------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $ 227,337 $ 9,776 $ 145 $ 4,322,278
Dividend income......... 950,896 3,106,834 697,583 1,373,329
Foreign withholding tax. (94,901) (15,485) -- (1,094)
----------- ------------ ---------- -----------
Total Income.......... 1,083,332 3,101,125 697,728 5,694,513
----------- ------------ ---------- -----------
Expenses:
Investment advisory
fees.................... 1,238,065 1,441,169 397,625 1,622,612
Administration fees..... 225,104 360,294 72,296 405,655
Distribution fees--Class
A....................... 22,153 4,555 1,226 1,305
Distribution fees--Class
B....................... 4,876 7,112 1,391 6,367
Accounting fees......... 50,290 58,487 16,153 70,849
Custodian fees.......... 164,603 20,007 7,657 17,933
Transfer agent fees..... 46,536 51,140 51,101 46,189
Legal and audit fees.... 10,996 16,337 3,909 27,599
Trustees' fees and
expenses................ 7,202 10,759 2,457 10,776
Registration and filing
fees.................... 30,583 2,648 3,249 48,389
Other................... 16,314 17,750 5,286 24,199
----------- ------------ ---------- -----------
Total expenses before
voluntary fee
reductions............ 1,816,722 1,990,258 562,350 2,281,873
Expenses voluntarily
reduced............... (172,340) (75,096) (51,424) (284,825)
----------- ------------ ---------- -----------
Net Expenses.......... 1,644,382 1,915,162 510,926 1,997,048
----------- ------------ ---------- -----------
Net Investment Income
(Loss).................. (561,050) 1,185,963 186,802 3,697,465
----------- ------------ ---------- -----------
Realized/Unrealized
Gains (Losses) From
Investments:
Net realized gains on
investment transactions. 24,776,357 24,864,825 1,187,024 24,447,708
Net realized losses from
foreign currency
transactions........... (1,157,659) -- -- --
Net change in unrealized
appreciation
(depreciation) from
investments............. (1,432,695) (16,332,763) (177,206) 7,675,167
Net change in unrealized
depreciation from
translation of assets
and liabilities in
foreign currencies..... (39,423) -- -- --
----------- ------------ ---------- -----------
Net realized/unrealized
gains from investments.. 22,146,580 8,532,062 1,009,818 32,122,875
----------- ------------ ---------- -----------
Change in net assets
resulting from
operations.............. $21,585,530 $ 9,718,025 $1,196,620 $35,820,340
=========== ============ ========== ===========
</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, 2000 July 31, 1999 July 31, 2000 July 31, 1999 July 31, 2000 July 31, 1999
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (2,597,908) $ (1,363,589) $ (75,437) $ 197,001 $ (267,114) $ (58,716)
Net realized gains from
investment
transactions.......... 162,640,111 82,863,384 30,917,478 22,746,316 5,169,225 1,126,605
Net realized losses
from foreign currency
transactions.......... -- -- -- -- (86,414) (87,320)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 22,028,954 (15,713,446) 20,639,155 742,543 (1,407,741) 7,250,165
Net change in
unrealized
appreciation from
translation of assets
and liabilities in
foreign currencies.... -- -- -- -- 1,718 804
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 182,071,157 65,786,349 51,481,196 23,685,860 3,409,674 8,231,538
------------- ------------- ------------ ------------ ------------ ------------
Distributions to Class A
Shareholders:
In excess of net
investment income..... -- -- -- (1,866) -- (5,526)
From net realized
gains................. (5,216,683) (2,467,584) (1,304,353) (950,873) -- --
Distributions to Class B
Shareholders:
In excess of net
investment income..... -- -- -- -- -- (28)
From net realized
gains................. (3,302,902) (378,014) (1,288,955) (397,782) -- --
Distributions to Class Y
Shareholders:
From net investment
income................ -- -- -- (248,888) -- --
In excess of net
investment income..... -- -- (116,423) -- -- (84,417)
From net realized
gains................. (101,861,172) (61,334,551) (21,833,893) (19,162,674) -- --
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... (110,380,757) (64,180,149) (24,543,624) (20,762,083) -- (89,971)
------------- ------------- ------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 127,607,840 79,661,804 74,409,058 60,203,498 18,492,188 5,848,670
Dividends reinvested... 99,345,989 56,213,864 18,970,376 15,438,529 -- 30,017
Cost of shares
redeemed.............. (144,462,148) (118,131,204) (66,332,251) (76,436,728) (11,279,372) (11,625,483)
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 82,491,681 17,744,464 27,047,183 (794,701) 7,212,816 (5,746,796)
------------- ------------- ------------ ------------ ------------ ------------
Change in net assets.... 154,182,081 19,350,664 53,984,755 2,129,076 10,622,490 2,394,771
Net Assets:
Beginning of period.... 409,703,605 390,352,941 175,748,487 173,619,411 18,644,216 16,249,445
------------- ------------- ------------ ------------ ------------ ------------
End of period.......... $ 563,885,686 $ 409,703,605 $229,733,242 $175,748,487 $ 29,266,706 $ 18,644,216
============= ============= ============ ============ ============ ============
Share Transactions:
Issued................. 6,626,955 4,701,265 3,700,508 3,342,327 1,411,844 754,122
Reinvested............. 5,779,688 3,615,888 999,624 888,924 -- 4,058
Redeemed............... (7,422,913) (6,900,492) (3,245,815) (4,190,172) (841,465) (1,549,662)
------------- ------------- ------------ ------------ ------------ ------------
Change in shares........ 4,983,730 1,416,661 1,454,317 41,079 570,379 (791,482)
============= ============= ============ ============ ============ ============
</TABLE>
See notes to financial statements.
34
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Short Intermediate
Diversified Fixed Ultra Short U.S. Treasury
Income Fund Government Fund Securities Fund
---------------------------- ---------------- ----------------------------
For the Year For the Year For the For the For the
Ended Ended Period Ended Year Ended Year Ended
July 31, 2000 July 31, 1999 July 31, 2000(a) July 31, 2000 July 31, 1999
------------- ------------- ---------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 13,935,280 $ 9,866,907 $ 255,560 $ 1,499,376 $ 1,390,538
Net realized gains
(losses) from
investment
transactions.......... (8,091,523) 2,246,080 (26) (390,264) 204,739
Net change in
unrealized
appreciation
(depreciation) from
investments........... 4,354,183 (11,060,792) 31,909 111,397 (790,628)
------------ ------------ ----------- ------------ ------------
Change in net assets
resulting from
operations............. 10,197,940 1,052,195 287,443 1,220,509 804,649
------------ ------------ ----------- ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ (123,121) (114,707) -- (23,276) (32,280)
From net realized
gains................. -- (20,918) -- (1,824) (3,262)
In excess of net
realized gains........ -- (552) -- (105) --
Distributions to Class B
Shareholders:
From net investment
income................ (113,327) (42,422) -- -- --
From net realized
gains................. -- (3,067) -- -- --
In excess of net
realized gains........ -- (2,179) -- -- --
Distributions to Class Y
Shareholders:
From net investment
income................ (13,698,833) (9,709,748) (255,560) (1,476,100) (1,358,257)
In excess of net
investment income..... (29) -- -- -- --
From net realized
gains................. -- (1,156,463) -- (110,546) (102,224)
In excess of net
realized gains........ -- (450,857) -- (6,347) --
------------ ------------ ----------- ------------ ------------
Change in net assets
from shareholder
distributions.......... (13,935,310) (11,500,913) (255,560) (1,618,198) (1,496,023)
------------ ------------ ----------- ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 135,146,720 106,729,331 47,732,316 20,306,930 68,454,032
Proceeds from shares
issued in connection
with merger........... 6,342,651 -- -- -- --
Dividends reinvested... 626,216 1,600,063 104,537 302,551 200,292
Cost of shares
redeemed.............. (92,916,180) (54,804,327) (385,502) (21,306,391) (59,533,349)
------------ ------------ ----------- ------------ ------------
Change in net assets
from share
transactions........... 49,199,407 53,525,067 47,451,351 (696,910) 9,120,975
------------ ------------ ----------- ------------ ------------
Change in net assets.... 45,462,037 43,076,349 47,483,234 (1,094,599) 8,429,601
Net Assets:
Beginning of period.... 203,718,596 160,642,247 -- 33,926,725 25,497,124
------------ ------------ ----------- ------------ ------------
End of period.......... $249,180,633 $203,718,596 $47,483,234 $ 32,832,126 $ 33,926,725
============ ============ =========== ============ ============
Share Transactions:
Issued................. 13,119,766 9,706,969 4,764,530 2,181,452 7,100,890
Shares issued in
connection with
merger................ 617,695 -- -- -- --
Reinvested............. 61,321 142,571 10,428 32,442 20,441
Redeemed............... (9,051,443) (4,964,716) (38,463) (2,284,481) (6,167,907)
------------ ------------ ----------- ------------ ------------
Change in shares........ 4,747,339 4,884,824 4,736,495 (70,587) 953,424
============ ============ =========== ============ ============
</TABLE>
--------
(a) For the period June 1, 2000 (commencement of operations) to July 31, 2000.
See notes to financial statements.
35
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Tax-Free Short Intermediate International
Tax-Free Securities Fund Securities Fund Stock Fund
---------------------------- ---------------------------- -------------------------------
For the Year For the Year For the Year For the Year For the Year For the Period
Ended Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 2000 July 31, 1999 July 31, 2000 July 31, 1999(a)
------------- ------------- ------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 21,150,322 $ 19,869,140 $ 1,699,947 $ 1,803,223 $ (561,050) $ 13,174
Net realized gains
(losses) from
investment
transactions.......... (2,960,896) 3,256,132 (299,682) 244,995 24,776,357 1,940,303
Net realized losses on
foreign currency
transactions.......... -- -- -- -- (1,157,659) (891,276)
Net change in
unrealized
appreciation
(depreciation) from
investments........... (2,811,306) (13,559,504) 75,069 (772,971) (1,432,695) 9,727,486
Net change in
unrealized
appreciation
(depreciation) from
translation of asset
and liabilities on
foreign currencies.... -- -- -- -- (39,423) 19,270
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 15,378,120 9,565,768 1,475,334 1,275,247 21,585,530 10,808,957
------------ ------------ ------------ ------------ ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ (279,231) (186,445) (39,251) (25,726) -- --
From net realized
gains................. (25,824) (37,066) (4,378) (4,014) (91,106) --
Distributions to Class B
Shareholders:
From net investment
income................ (117,686) (23,437) -- -- -- --
From net realized
gains................. (15,328) (4,359) -- -- (7,776) --
Distributions to Class Y
Shareholders:
From net investment
income................ (20,753,402) (19,659,258) (1,660,746) (1,777,447) -- --
In excess of net
investment income..... -- (3) -- -- -- --
From net realized
gains................. (1,920,393) (3,625,235) (219,099) (217,551) (3,558,270) --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... (23,111,864) (23,535,803) (1,923,474) (2,024,738) (3,657,152) --
------------ ------------ ------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 69,794,487 65,647,809 6,511,755 16,829,321 43,310,580 90,175,926
Dividends reinvested... 2,248,401 3,775,212 270,535 253,126 3,217,535 --
Cost of shares
redeemed.............. (52,594,042) (44,749,973) (12,052,213) (20,449,042) (30,549,986) (19,365,295)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 19,448,846 24,673,048 (5,269,923) (3,366,595) 15,978,129 70,810,631
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets.... 11,715,102 10,703,013 (5,718,063) (4,116,086) 33,906,507 81,619,588
Net Assets:
Beginning of period.... 430,572,799 419,869,786 48,546,630 52,662,716 81,619,588 --
------------ ------------ ------------ ------------ ------------ ------------
End of period.......... $442,287,901 $430,572,799 $ 42,828,567 $ 48,546,630 $115,526,095 $ 81,619,588
============ ============ ============ ============ ============ ============
Share Transactions:
Issued................. 6,860,803 6,052,527 662,643 1,649,904 2,906,511 8,628,110
Reinvested............. 221,380 344,359 27,471 24,744 212,108 --
Redeemed............... (5,170,856) (4,103,936) (1,224,407) (2,008,506) (2,007,414) (1,817,779)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares........ 1,911,327 2,292,950 (534,293) (333,858) 1,111,205 6,810,331
============ ============ ============ ============ ============ ============
</TABLE>
--------
(a) For the period December 2, 1998 (commencement of operations) to July 31,
2000.
See notes to financial statements.
36
<PAGE>
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Value Fund Small Cap Fund Balanced Fund
------------------------------- ------------------------------- -------------------------------
For the Year For the Period For the Year For the Period For the Year For the Period
Ended Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999(a) July 31, 2000 July 31, 1999(b) July 31, 2000 July 31, 1999(c)
------------- ---------------- ------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 1,185,963 $ 155,149 $ 186,802 $ 15,860 $ 3,697,465 $ 361,822
Net realized gains
(losses) from
investment
transactions.......... 24,864,825 3,531,933 1,187,024 1,219,833 24,447,708 (787,032)
Net change in
unrealized
appreciation
(depreciation) from
investments........... (16,332,763) 2,386,111 (177,206) 932,027 7,675,167 (4,066,973)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations............. 9,718,025 6,073,193 1,196,620 2,167,720 35,820,340 (4,492,183)
------------ ------------ ------------ ------------ ------------ ------------
Distributions to Class A
Shareholders:
From net investment
income................ (3,515) -- (656) -- (2,914) (63)
In excess of net
investment income..... (56) (112) (23) (4) -- (28)
From net realized
gains................. (5,029) (6,934) (4,224) -- (336) --
Distributions to Class B
Shareholders:
From net investment
income................ (120) -- (31) -- (6,151) (105)
In excess of net
investment income..... (2) (55) (1) (1) -- (121)
From net realized
gains................. (7,634) (15,151) (4,623) -- (1,423) --
In excess of net
realized gains........ -- (2,874) -- -- -- --
Distributions to Class Y
Shareholders:
From net investment
income................ (1,182,327) (156,027) (189,826) (15,898) (3,731,507) (297,630)
In excess of net
investment income..... (18,873) (26,982) (6,757) -- -- --
From net realized
gains................. (2,167,521) (3,172,871) (1,215,940) -- (552,979) --
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from shareholder
distributions.......... (3,385,077) (3,381,006) (1,422,081) (15,903) (4,295,310) (297,947)
------------ ------------ ------------ ------------ ------------ ------------
Capital Transactions:
Proceeds from shares
issued................ 98,235,654 86,349,838 24,787,490 46,913,248 3,735,458 464,446
Proceeds from shares
issued in conjunction
with common trust fund
conversion............ 87,055,807 -- -- -- -- 189,111,744
Dividends reinvested... 1,506,322 1,711,580 591,003 34 563,792 317
Cost of shares
redeemed.............. (63,506,140) (14,639,390) (19,633,507) (17,077,870) (3,387,174) (337,200)
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets
from share
transactions........... 123,291,643 73,422,028 5,744,986 29,835,412 912,076 189,239,307
------------ ------------ ------------ ------------ ------------ ------------
Change in net assets.... 129,624,591 76,114,215 5,519,525 31,987,229 32,437,106 184,449,177
Net Assets:
Beginning of period.... 76,114,215 -- 31,987,229 -- 184,449,177 --
------------ ------------ ------------ ------------ ------------ ------------
End of period.......... $205,738,806 $ 76,114,215 $ 37,506,754 $ 31,987,229 $216,886,283 $184,449,177
============ ============ ============ ============ ============ ============
Share Transactions:
Issued................. 9,319,656 8,571,030 2,496,412 4,784,633 347,165 45,945
Shares issued in
conjunction with
common trust fund
conversion............ 8,386,879 -- -- -- -- 18,826,632
Reinvested............. 149,845 161,323 62,901 3 52,874 32
Redeemed............... (6,030,049) (1,396,548) (1,955,814) (1,787,381) (311,209) (33,386)
------------ ------------ ------------ ------------ ------------ ------------
Change in shares........ 11,826,331 7,335,805 603,499 2,997,255 88,830 18,839,223
============ ============ ============ ============ ============ ============
</TABLE>
--------
(a) For the period December 3, 1998 (commencement of operations) to July 31,
2000.
(b) For the period December 3, 1998 (commencement of operations) to July 31,
2000.
(c) For the period June 21, 1999 (commencement of operations) to July 31,
2000.
See notes to financial statements.
37
<PAGE>
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks (93.9%)
Beverages (2.4%)
290,944 PepsiCo, Inc. ....................................... $ 13,328,872
------------
Business Equipment & Services (1.7%)
213,097 Paychex, Inc. ....................................... 9,749,188
------------
Computers & Peripherals (14.7%)
134,760 Apple Computer, Inc. (b)............................. 6,847,493
195,124 Cisco Systems, Inc. (b).............................. 12,768,426
77,920 EMC Corp. (b)........................................ 6,632,940
158,410 Gateway, Inc. (b).................................... 8,742,252
80,280 Network Appliance, Inc. (b).......................... 6,919,133
191,720 Safeguard Scientifics, Inc. (b)...................... 5,955,303
83,720 SanDisk Corp. (b).................................... 5,337,150
106,130 Seagate Technology, Inc. (b)......................... 5,379,464
141,442 Sun Microsystems, Inc. (b)........................... 14,913,290
123,440 Symbol Technologies, Inc. ........................... 4,922,170
41,120 Veritas Software Corp. (b)........................... 4,191,670
------------
82,609,291
------------
Consumer Durable (1.3%)
160,160 Harley-Davidson, Inc. ............................... 7,187,180
------------
Cosmetics/Personal Care (1.2%)
229,150 Gillette Co. ........................................ 6,688,316
------------
Electrical Equipment (4.1%)
453,843 General Electric Co. ................................ 23,344,549
------------
Electronic Components/Instruments (1.1%)
107,440 Texas Instruments, Inc. ............................. 6,305,385
------------
Entertainment (2.5%)
110,810 Time Warner, Inc. ................................... 8,497,742
143,070 Walt Disney Co. ..................................... 5,535,021
------------
14,032,763
------------
Environmental Services (1.3%)
436,270 Republic Services, Inc. (b).......................... 7,307,523
------------
Financial Services (5.9%)
215,730 Charles Schwab Corp. ................................ 7,793,246
128,610 Morgan Stanley Dean Witter & Co. .................... 11,735,663
87,910 Stilwell Financial, Inc. (b)......................... 3,873,534
235,270 Wells Fargo & Co. ................................... 9,719,592
------------
33,122,035
------------
Medical Instruments (1.8%)
198,820 Medtronic, Inc. ..................................... 10,152,246
------------
Medical--Biotechnology (1.2%)
79,180 PE Biosystems Group.................................. 6,903,506
------------
Multi-Industry (2.2%)
53,230 Corning, Inc. ....................................... 12,452,493
------------
Oil & Gas--Exploration & Production Services (1.6%)
153,060 Coastal Corp. ....................................... 8,839,215
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Pharmaceuticals (14.1%)
85,550 Biogen, Inc. (b)..................................... $ 4,534,150
115,280 Johnson & Johnson, Inc. ............................. 10,728,245
141,172 Lilly (Eli) & Co. ................................... 14,664,242
83,090 MedImmune, Inc. (b).................................. 4,943,855
191,680 Merck & Co., Inc. ................................... 13,741,060
379,362 Pfizer, Inc. ........................................ 16,359,986
341,450 Schering-Plough Corp. ............................... 14,746,372
------------
79,717,910
------------
Restaurants (2.3%)
302,550 Jack in the Box, Inc. (b)............................ 6,485,916
168,450 Starbucks Corp. (b).................................. 6,316,875
------------
12,802,791
------------
Retail (4.9%)
126,277 Gap, Inc. ........................................... 4,522,295
135,030 Pacific Sunwear of California, Inc. (b).............. 2,042,329
250,360 Wal-Mart Stores, Inc. ............................... 13,754,152
240,080 Walgreen Co. ........................................ 7,487,495
------------
27,806,271
------------
Retail--Food Chain (2.4%)
304,910 Safeway, Inc. (b).................................... 13,740,007
------------
Retail--General Merchandise (1.1%)
115,995 Home Depot, Inc. .................................... 6,002,741
------------
Semiconductors (7.7%)
181,470 Applied Materials, Inc. (b).......................... 13,769,036
373,900 Intel Corp. ......................................... 24,957,825
74,570 Teradyne, Inc. (b)................................... 4,725,874
------------
43,452,735
------------
Software & Computer Services (10.2%)
99,920 Adobe Systems, Inc. (b).............................. 11,440,840
48,260 Check Point Software Technologies Ltd. (b)........... 5,598,160
68,240 Macromedia, Inc. (b)................................. 5,220,360
250,550 Microsoft Corp. (b).................................. 17,491,522
3,153 Opus360 Corp. (b).................................... 11,036
141,970 Oracle Corp. (b)..................................... 10,674,369
49,410 Siebel Systems, Inc. (b)............................. 7,164,450
------------
57,600,737
------------
Telecommunications (2.7%)
121,990 Copper Mountain Networks, Inc. (b)................... 9,620,055
282,928 Pac-West Telecomm, Inc. (b).......................... 5,410,998
------------
15,031,053
------------
</TABLE>
Continued
38
<PAGE>
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Telecommunications--Services and Equipment (5.5%)
102,360 Nokia Corp., ADR..................................... $ 4,535,828
149,900 Nortel Networks Corp. ............................... 11,148,812
231,040 Palm, Inc. (b)....................................... 9,010,560
178,260 Powerwave Technologies, Inc. (b)..................... 6,183,394
------------
30,878,594
------------
Total Common Stocks (Cost $410,585,099) 529,055,401
------------
Depositary Receipts (3.6%)
80,970 S&P 500 Depositary Receipt........................... 11,573,649
97,680 S&P Mid Cap 400 Depositary Receipts.................. 8,791,200
------------
Total Depositary Receipts (Cost $20,842,770) 20,364,849
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Investment Companies (2.4%)
13,814,741 The One Group Prime Money Market Fund (I Shares)..... $ 13,814,741
------------
Total Investment Companies (Cost $13,814,741) 13,814,741
------------
Total Investments (Cost $445,242,610) (a)--99.9% 563,234,991
Other assets in excess of liabilities--0.1% 650,695
------------
Total Net Assets--100.0% $563,885,686
============
</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 purposes in excess of federal income tax reporting
of approximately $11,332. Cost for federal income tax purposes differs
from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $146,651,931
Unrealized depreciation. (28,670,882)
------------
Net unrealized
appreciation........... $117,981,049
============
</TABLE>
(b) Non-income producing security.
ADR--American Depositary Receipt
See notes to financial statements.
39
<PAGE>
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Security
Shares Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (95.7%)
Airlines (0.5%)
53,380 Southwest Airlines Co. ............................... $ 1,261,103
------------
Automotive (0.8%)
40,420 Ford Motor Co. ....................................... 1,882,056
------------
Banks (2.8%)
31,109 Bank of America Corp. ................................ 1,473,789
64,335 Chase Manhattan Corp. ................................ 3,196,645
47,060 FleetBoston Financial Corp. .......................... 1,685,336
------------
6,355,770
------------
Beverages (2.2%)
22,440 Anheuser Busch Cos., Inc. ............................ 1,806,420
68,475 PepsiCo, Inc. ........................................ 3,137,011
------------
4,943,431
------------
Business Equipment & Services (2.9%)
93,490 Deluxe Corp. ......................................... 2,010,035
65,575 Paychex, Inc. ........................................ 3,000,056
44,520 Pitney Bowes, Inc. ................................... 1,541,505
------------
6,551,596
------------
Computers & Peripherals (11.5%)
165,800 Cisco Systems, Inc. (b)............................... 10,849,538
90,920 EMC Corp. (b)......................................... 7,739,565
56,660 Sun Microsystems, Inc. (b)............................ 5,974,089
49,800 Symbol Technologies, Inc. ............................ 1,985,775
------------
26,548,967
------------
Consumer Goods & Services (0.9%)
20,080 Clorox Co. ........................................... 829,555
22,870 Procter & Gamble Co. ................................. 1,300,731
------------
2,130,286
------------
Diversified Operations (2.4%)
101,320 Tyco International Ltd. .............................. 5,420,620
------------
Electrical Equipment (4.3%)
75,750 General Electric Co. ................................. 3,896,390
43,160 KLA-Tencor Corp. (b).................................. 2,298,270
89,800 Solectron Corp. (b)................................... 3,620,063
------------
9,814,723
------------
Electronic Components/Instruments (5.0%)
60,870 American Power Conversion Corp. (b)................... 1,548,381
73,380 Motorola, Inc. ....................................... 2,426,126
50,990 Sanmina Corp. (b)..................................... 4,735,696
92,190 Vishay Intertechnology, Inc. (b)...................... 2,852,128
------------
11,562,331
------------
Entertainment (0.6%)
18,580 Time Warner, Inc. .................................... 1,424,854
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Financial Services (9.5%)
70,505 Alliance Capital Management Holding L.P. ............. $ 3,362,207
67,280 Capital One Financial Corp. .......................... 3,944,290
60,510 Charles Schwab Corp. ................................. 2,185,924
67,740 Morgan Stanley Dean Witter & Co. ..................... 6,181,276
138,000 Stilwell Financial, Inc. (b).......................... 6,080,625
------------
21,754,322
------------
Insurance (2.8%)
50,655 American International Group, Inc. ................... 4,441,810
16,070 Marsh & McLennan Cos., Inc. .......................... 1,960,540
------------
6,402,350
------------
Leisure--Recreation, Gaming (0.5%)
65,650 Carnival Corp. ....................................... 1,226,834
------------
Medical Supplies (0.6%)
17,920 Baxter International, Inc. ........................... 1,393,280
------------
Medical--Biotechnology (2.9%)
48,310 Amgen, Inc. .......................................... 3,137,131
41,580 PE Biosystems Group................................... 3,625,256
------------
6,762,387
------------
Multi-Industry (2.2%)
21,260 Corning, Inc. ........................................ 4,973,511
------------
Oil & Gas--Exploration & Production Services (2.4%)
35,980 Exxon Mobil Corp. .................................... 2,878,399
18,840 Schlumberger Ltd. .................................... 1,392,983
53,970 Ultramar Diamond Shamrock Corp. ...................... 1,234,564
------------
5,505,946
------------
Pharmaceuticals (7.3%)
23,010 Bristol-Myers Squibb Co. ............................. 1,141,871
68,480 Elan Corp., PLC, ADR (b).............................. 3,659,399
13,390 Johnson & Johnson, Inc. .............................. 1,246,107
27,730 Lilly (Eli) & Co. .................................... 2,880,454
25,710 Merck & Co., Inc. .................................... 1,843,086
57,526 Pfizer, Inc. ......................................... 2,480,809
79,190 Schering-Plough Corp. ................................ 3,420,018
------------
16,671,744
------------
Publishing (1.2%)
47,300 McGraw-Hill Cos., Inc. ............................... 2,811,394
------------
Real Estate (1.5%)
60,000 Franchise Finance Corp. of America.................... 1,440,000
100,000 Healthcare Realty Trust, Inc. ........................ 1,987,500
------------
3,427,500
------------
Restaurants (1.3%)
30,430 McDonald's Corp. ..................................... 958,545
51,448 Starbucks Corp. (b)................................... 1,929,300
------------
2,887,845
------------
</TABLE>
Continued
40
<PAGE>
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Security
Shares Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Retail (5.5%)
56,260 Gap, Inc. ............................................ $ 2,014,811
24,240 Kohl's Corp. (b)...................................... 1,375,620
55,720 Lowe's Cos., Inc. .................................... 2,350,688
78,900 Pacific Sunwear of California, Inc. (b)............... 1,193,363
102,860 Wal-Mart Stores, Inc. ................................ 5,650,871
------------
12,585,353
------------
Retail--Food Chain (1.2%)
59,190 Safeway, Inc. (b)..................................... 2,667,249
------------
Retail--General Merchandise (1.2%)
86,180 Costco Companies, Inc. ............................... 2,806,236
------------
Savings & Loans (0.7%)
47,793 Washington Mutual, Inc. .............................. 1,535,350
------------
Semiconductors (5.8%)
31,960 Applied Materials, Inc. (b)........................... 2,424,965
50,810 Teradyne, Inc. (b).................................... 3,220,084
112,520 Texas Instruments, Inc. .............................. 6,603,517
15,030 Xilinx, Inc. (b)...................................... 1,128,189
------------
13,376,756
------------
Software & Computer Services (5.2%)
39,460 America Online, Inc. (b).............................. 2,103,711
51,990 BMC Software, Inc. (b)................................ 981,311
32,600 Computer Associates International, Inc. .............. 808,888
117,970 Compuware Corp. (b)................................... 943,760
38,580 Lernout & Hauspie Speech Products N.V. (b)............ 1,200,803
40,890 Microsoft Corp. (b)................................... 2,854,633
41,250 Oracle Corp. (b)...................................... 3,101,485
------------
11,994,590
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Telecommunications--Services and Equipment (5.5%)
124,120 Nortel Networks Corp. ................................ $ 9,231,425
53,500 Tellabs, Inc. (b)..................................... 3,477,500
------------
12,708,925
------------
Transportation (0.5%)
37,250 USFreightways Corp. .................................. 1,033,688
------------
Utilities--Telecommunications (4.0%)
79,470 ALLTEL Corp. ......................................... 4,897,339
20,496 Verizon Communications................................ 963,312
87,460 WorldCom, Inc. (b).................................... 3,416,406
------------
9,277,057
------------
Total Common Stocks (Cost $161,103,011) 219,698,054
------------
Depositary Receipts (2.2%)
35,860 S&P 500 Depositary Receipt............................ 5,125,739
------------
Total Depositary Receipts (Cost $5,106,519) 5,125,739
------------
Investment Companies (1.8%)
4,198,166 The One Group Prime Money Market Fund (I Shares)...... 4,198,166
------------
Total Investment Companies (Cost $4,198,166) 4,198,166
------------
Total Investments (Cost $170,407,696)
(a)--99.7% 229,021,959
Other assets in excess of liabilities--0.3% 711,283
------------
Total Net Assets--100.0% $229,733,242
============
</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 purposes in excess of federal income tax
reporting of approximately $6,185. Cost for federal income tax purposes
differs from value by net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized
appreciation........... $ 76,076,568
Unrealized
depreciation........... (17,468,490)
------------
Net unrealized
appreciation........... $ 58,608,078
============
</TABLE>
(b) Non-income producing security.
ADR--American Depositary Receipt
NV--Naamloze Vennootschaap (Dutch Corp.)
PLC--Public Limited Company
See notes to financial statements.
41
<PAGE>
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Market
Shares Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (92.9%)
Hong Kong (36.3%)
Banks (7.1%)
68,000 Dao Heng Bank Group Ltd. .............................. $ 310,430
135,200 HSBC Holdings PLC...................................... 1,777,072
-----------
2,087,502
-----------
Containers & Packaging (1.1%)
374,000 Cosco Pacific Ltd. .................................... 333,320
-----------
Diversified--Conglomerates, Holding Companies (6.2%)
129,300 Hutchison Whampoa Ltd. ................................ 1,807,295
-----------
Electronic Components/Instruments (0.3%)
8,900 ASAT Holdings Ltd., ADR (b)............................ 75,650
-----------
Oil & Gas Exploration, Production, & Services (1.0%)
1,264,000 PetroChina Co. Ltd. (b)................................ 288,517
-----------
Publishing (1.9%)
800,000 South China Morning Post (Holding) Ltd................. 564,231
-----------
Real Estate (2.4%)
60,000 Cheung Kong Holdings Ltd. ............................. 707,854
-----------
Retail (2.2%)
450,000 Giordano International Ltd. ........................... 637,645
-----------
Telecommunications (7.6%)
85,000 Asia Satellite Telecommunications Holdings Ltd. ....... 280,128
174,000 China Mobile Ltd. (b).................................. 1,388,970
238,000 China Unicom Ltd. (b).................................. 553,934
-----------
2,223,032
-----------
Television (2.4%)
130,000 Television Broadcasts Ltd. ............................ 703,494
-----------
Textile/Apparel (4.1%)
240,000 Li & Fung Ltd.......................................... 1,194,118
-----------
10,622,658
-----------
Malaysia (2.8%)
Insurance (1.0%)
110,000 MAA Holdings Berhad.................................... 289,482
-----------
Publishing (1.0%)
114,000 New Straits Times Press Berhad......................... 298,509
-----------
Telecommunications (0.8%)
144,000 Digi.com Berhad (b).................................... 231,164
-----------
819,155
-----------
Singapore (15.0%)
Banking (1.0%)
72,000 Overseas Union Bank Ltd. .............................. 303,127
-----------
Banks (2.5%)
61,000 DBS Group Holdings Ltd. ............................... 735,269
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Electrical & Electronic (3.3%)
154,000 JIT Holdings Ltd. ..................................... $ 275,329
59,000 Venture Manufacturing Ltd. ............................ 673,732
-----------
949,061
-----------
Manufacturing--Consumer Goods (2.4%)
390,000 Omni Industries Ltd. .................................. 701,760
-----------
Publishing (2.0%)
34,000 Singapore Press Holdings Ltd........................... 578,456
-----------
Semiconductors (1.5%)
6,000 Chartered Semiconductor Manufacturing Ltd., ADR (b).... 432,000
-----------
Telecommunication Equipment (2.3%)
90,800 Datacraft Asia Ltd..................................... 676,460
-----------
4,376,133
-----------
South Korea (14.7%)
Banks (2.5%)
62,423 Kookmin Bank........................................... 740,660
-----------
Electrical & Electronic (4.1%)
4,500 Samsung Electronics.................................... 1,188,757
-----------
Electricity--Generation (2.1%)
20,900 Korea Electric Power Corp.............................. 602,644
-----------
Telecommunications (6.0%)
10,000 Korea Telecom Freetel (b).............................. 538,187
4,700 LG Information & Communication Ltd..................... 261,786
3,900 SK Telecom Co. Ltd. ................................... 970,885
-----------
1,770,858
-----------
4,302,919
-----------
Taiwan (24.1%)
Computers & Peripherals (6.3%)
59,000 Asustek Computer, Inc.................................. 462,349
201,000 Compal Electronics, Inc................................ 476,426
93,000 Quanta Computer, Inc................................... 458,867
120,000 Ritek Corp. (b)........................................ 433,422
-----------
1,831,064
-----------
Electrical & Electronic (5.9%)
105,000 Ambit Microsystems Corp. (c)........................... 731,400
91,000 Hon Hai Precision Industry Co. Ltd. (c)................ 707,246
121,000 Winbond Electronics Corp. (b).......................... 298,510
-----------
1,737,156
-----------
Electronic Components/Instruments (3.9%)
224,320 Macronix International Co. Ltd. (b).................... 466,595
37,000 Via Technologies, Inc. (b)............................. 612,112
48,000 Yageo Corp. (b) (c).................................... 63,311
-----------
1,142,018
-----------
</TABLE>
Continued
42
<PAGE>
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Market
Shares Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Semiconductors (8.0%)
144,000 Compeq Manufacturing
Co. Ltd. (b)(c)....................................... $ 840,530
550,000 Siliconware Corp. (b)(c)............................... 434,551
150,000 Taiwan Semiconductor Manufacturing Co. Ltd. (b)........ 614,338
190,000 United Microelectronics Corp. (b)...................... 459,544
-----------
2,348,963
-----------
7,059,201
-----------
Total Common Stocks (Cost $24,766,494) 27,180,066
-----------
</TABLE>
<TABLE>
<CAPTION>
Market
Shares Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Cash Sweep (4.7%)
United States (4.7%)
1,381,582 Union Bank of California Money Market Fund............. $ 1,381,582
-----------
Total Cash Sweep (Cost $1,381,582) 1,381,582
-----------
Total Investments (Cost $26,148,076) (a)--97.6% 28,561,648
Other assets in excess of liabilities--2.4% 705,058
-----------
Total Net Assets--100.0% $29,266,706
===========
</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 purposes in excess of federal income tax reporting
of approximately $176,015. Cost for federal income tax purposes differs
from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $ 4,869,606
Unrealized depreciation. (2,632,049)
-----------
Net unrealized
appreciation............ $ 2,237,557
===========
</TABLE>
(b) Non-income producing securities.
(c) All or a portion of security is restricted as to the resale to
institutional investors.
ADR--American Depositary Receipt
PLC--Public Limited Company
See notes to financial statements.
43
<PAGE>
PACIFIC CAPITAL FUNDS
Diversified Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Principal
Amount Security Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Corporate Bonds (49.3%)
Automotive (2.0%)
5,000,000 DaimlerChrysler N.A. Holding, 8.00%, 6/15/10.......... $ 5,093,750
------------
Banking (0.4%)
1,000,000 Wachovia Corp., 6.38%, 2/1/09......................... 917,500
------------
Banking--Foreign (2.1%)
250,000 Bayerische Landesbank-NY, 5.75%, 2/28/01.............. 248,125
2,250,000 Bayerische Landesbank-NY, 5.88%, 12/1/08.............. 2,013,750
3,000,000 Swiss Bank Corp.-NY, 6.75%, 7/15/05................... 2,898,750
------------
5,160,625
------------
Brokerage Services (2.3%)
5,000,000 Goldman Sachs Group, Inc., 7.80%, 1/28/10............. 4,987,500
825,000 Merrill Lynch & Co., Inc., 7.15%, 7/30/12............. 772,406
------------
5,759,906
------------
Chemicals (0.8%)
2,000,000 E.I. du Pont de Nemours & Co., 6.88%, 10/15/09........ 1,940,000
------------
Computers (0.6%)
1,700,000 IBM Corp., 5.40%, 1/26/09, MTN........................ 1,489,625
------------
Electric Utility (3.7%)
5,000,000 Natural Rural Utilities, 5.75%, 11/1/08............... 4,481,250
5,000,000 WPS Resources Corp., 7.00%, 11/1/09................... 4,806,249
------------
9,287,499
------------
Finance (1.0%)
1,125,000 Ford Motor Credit Co., 7.57%, 5/16/05................. 1,110,938
1,350,000 Ford Motor Credit Co., 7.50%, 3/15/05................. 1,344,938
------------
2,455,875
------------
Financial Services (4.4%)
1,200,000 Associates Corp. N.A., 7.95%, 2/15/10................. 1,185,000
1,000,000 General Electric Capital Corp., 8.09%, 4/1/04......... 1,028,750
5,000,000 General Electric Capital Corp., 7.88%, 12/1/06........ 5,162,499
3,000,000 General Electric Capital Corp., 8.63%, 6/15/08........ 3,232,500
400,000 Pitney Bowes Credit Corp., 6.80%, 10/1/01............. 398,500
------------
11,007,250
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Security Description Market Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds, continued
Food Processing & Packaging (0.8%)
2,000,000 Sysco Corp., 7.25%, 4/15/07.......................... $ 2,020,000
------------
Foreign Trade & International Banking Institutions (1.6%)
3,950,000 LB Baden-Wuerttemberg, 7.88%, 4/15/04................ 4,014,188
------------
Health Care (3.5%)
8,000,000 Johnson & Johnson, 8.72%, 11/1/24.................... 8,750,000
------------
Household Products (3.2%)
3,000,000 Colgate-Palmolive Co., 6.58%, 11/5/02................ 2,962,500
4,700,000 Proctor & Gamble, 8.50%, 8/10/09..................... 5,093,625
------------
8,056,125
------------
Insurance (5.1%)
3,000,000 GE Global Insurance Corp., 7.75%, 6/15/30............ 3,030,000
5,000,000 Hartford Financial Services Group, 7.75%, 6/15/05.... 5,024,999
2,000,000 John Hancock Global Funding Group, 7.90%, 7/2/10 (b). 2,017,500
1,500,000 MBIA, Inc., 9.00%, 2/15/01........................... 1,513,125
125,000 MBIA, Inc., 8.20%, 10/1/22........................... 123,906
1,000,000 St. Paul Cos., Inc., 7.29%, 8/28/07.................. 977,500
------------
12,687,030
------------
Machinery--Electrical (1.6%)
3,750,000 Emerson Electric Co., 7.88%, 6/1/05.................. 3,867,188
------------
Medical Supplies (2.4%)
5,000,000 Becton, Dickinson & Co., 7.15%, 10/1/09.............. 4,893,750
1,000,000 Zeneca Wilmington, 6.30%, 6/15/03.................... 992,500
------------
5,886,250
------------
Oil & Gas--Exploration & Production Services (2.6%)
3,125,000 Amoco Canada, 7.25%, 12/01/02........................ 3,144,531
1,450,000 Amoco Canada, 7.95%, 10/1/22......................... 1,493,500
1,260,000 Shell Oil Co., 6.70%, 8/15/02........................ 1,266,300
650,000 Societe Nationale Elf Aquitaine, 8.00%, 10/15/01..... 656,500
------------
6,560,831
------------
Publishing (0.7%)
2,080,000 Washington Post Co., 5.50%, 2/15/09.................. 1,843,400
------------
Restaurants (2.5%)
2,400,000 McDonald's Corp., 6.50%, 8/1/07...................... 2,316,000
4,195,000 McDonald's Corp., 5.95%, 1/15/08..................... 3,932,813
------------
6,248,813
------------
Retail (2.7%)
2,000,000 Wal-Mart Stores, Inc., 6.15%, 8/10/01................ 1,982,500
1,900,000 Wal-Mart Stores, Inc., 8.00%, 9/15/06................ 1,978,375
2,500,000 Wal-Mart Stores, Inc., 8.85%, 1/2/15................. 2,744,375
------------
6,705,250
------------
</TABLE>
Continued
44
<PAGE>
PACIFIC CAPITAL FUNDS
Diversified Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares or
Principal
Amount Security Description Market Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds, continued
Supranational Agency (4.8%)
3,000,000 Asian Development Bank, 6.50%, 9/21/02............... $ 2,962,500
3,000,000 Asian Development Bank, 6.13%, 3/9/04................ 2,902,500
2,650,000 Interamerica Development Bank, 8.50%, 3/15/11........ 2,918,313
3,185,000 Interamerica Development Bank, 6.80%, 10/15/25....... 3,057,600
------------
11,840,912
------------
Telecommunications (0.6%)
1,000,000 AT&T Corp., 6.50%, 9/15/02........................... 990,000
400,000 BellSouth Corp., 6.00%, 6/15/02...................... 392,500
------------
1,382,500
------------
Total Corporate Bonds (Cost $124,491,595) 122,974,518
------------
Private Placement (1.2%)
Machinery--Farm (1.2%)
3,000,000 New Holland Equipment Receivables Trust, 6.80%,
12/15/07 (b), acquisition date 11/4/99.............. 2,971,665
------------
Total Private Placement (Cost $2,999,273) 2,971,665
------------
U.S. Government Agencies (15.8%)
Federal Home Loan Bank (1.5%)
560,000 5.58%, 2/23/01....................................... 556,349
100,000 6.41%. 4/10/01....................................... 99,725
3,000,000 7.63%, 5/14/10....................................... 3,108,750
------------
3,764,824
------------
Federal Home Loan Mortgage Corp. (2.9%)
5,000,000 7.02%, 11/10/03...................................... 4,950,000
2,000,000 7.50%, 1/12/05....................................... 1,990,000
325,000 6.75%, 5/30/06....................................... 321,227
------------
7,261,227
------------
Federal National Mortgage Association (5.0%)
5,000,000 7.00%, 12/27/02...................................... 4,967,549
3,000,000 6.50%, 8/15/04....................................... 2,951,370
175,000 8.00%, 12/7/04....................................... 175,438
2,100,000 7.69%, 9/13/06....................................... 2,077,698
1,300,000 6.76%, 7/16/07....................................... 1,256,476
1,000,000 6.88%, 9/10/12....................................... 957,140
------------
12,385,671
------------
Finance (3.2%)
5,000,000 Private Export Funding, 6.49%, 7/15/07............... 4,856,250
3,100,000 Private Export Funding, 6.67%, 9/15/09............... 3,007,000
------------
7,863,250
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
U.S. Government Agencies, continued
Student Loan Marketing Association (3.3%)
8,300,000 6.69%*, 7/25/01, FRN................................. $ 8,302,656
------------
Total U.S. Government Agencies (Cost $40,162,868) 39,577,628
------------
U.S. Treasury Bonds (15.8%)
2,000,000 10.00%, 5/15/10...................................... 2,289,360
21,300,000 7.25%, 5/15/16....................................... 23,689,434
13,025,000 6.25%, 8/15/23....................................... 13,297,613
------------
Total U.S. Treasury Bonds (Cost $38,164,929) 39,276,407
------------
U.S. Treasury Notes (15.1%)
2,200,000 5.50%, 12/31/00...................................... 2,191,750
1,300,000 7.75%, 2/15/01....................................... 1,309,750
980,000 8.00%, 5/15/01....................................... 991,936
7,000,000 7.25%, 8/15/04....................................... 7,247,170
1,000,000 7.50%, 2/15/05....................................... 1,048,750
9,815,000 6.50%, 5/15/05....................................... 9,928,462
5,700,000 6.25%, 2/15/07....................................... 5,721,375
9,000,000 6.63%, 5/15/07....................................... 9,219,330
------------
Total U.S. Treasury Notes (Cost $37,454,353) 37,658,523
------------
Investment Company (1.1%)
2,679,969 The One Group Prime Money Market Fund (I Shares)..... 2,679,969
------------
Total Investment Company (Cost $2,679,969) 2,679,969
------------
Total Investments (Cost $245,952,987) (a)--98.4% 245,138,710
Other assets in excess of liabilities--1.6% 4,041,923
------------
Total Net Assets--100.0% $249,180,633
============
</TABLE>
Continued
45
<PAGE>
PACIFIC CAPITAL FUNDS
Diversified Fixed Income Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
--------
* Variable rate security. Rate presented represents rate in effect at July
31, 2000. Maturity reflects final maturity date.
(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 purposes in excess of federal income tax
reporting of approximately $99,996. Cost for federal income tax purposes
differs from value by net unrealized depreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation. $ 2,459,087
Unrealized depreciation. (3,373,360)
-----------
Net unrealized
depreciation............ $ (914,273)
===========
</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.
FRN--Floating Rate Note
MTN--Medium Term Note
See notes to financial statements.
46
<PAGE>
PACIFIC CAPITAL FUNDS
Ultra Short Government Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies (88.5%)
Federal Farm Credit Bank (14.6%)
5,000,000 6.00%, 10/01/01....................................... $ 4,951,800
2,000,000 6.88%, 5/1/02......................................... 2,000,000
-----------
6,951,800
-----------
Federal Home Loan Bank (66.5%)
10,481,000 6.55%, 8/1/00......................................... 10,479,092
2,000,000 6.63%, 11/22/00....................................... 1,959,620
3,000,000 6.40%, 7/20/01........................................ 2,810,100
300,000 5.88%, 8/15/01........................................ 297,084
1,000,000 5.88%, 9/17/01........................................ 989,360
4,150,000 5.18%, 2/19/02........................................ 4,048,782
7,000,000 6.75%, 5/01/02........................................ 6,986,280
1,750,000 7.00%, 8/15/02........................................ 1,754,375
2,000,000 5.53%, 1/15/03........................................ 1,939,400
300,000 5.37%, 1/16/03........................................ 290,775
-----------
31,554,868
-----------
Tennessee Valley Authority (7.4%)
150,000 6.50%, 8/20/01........................................ 149,438
2,050,000 6.00%, 9/24/02........................................ 2,016,687
1,370,000 6.13%, 7/15/03........................................ 1,334,038
-----------
3,500,163
-----------
Total U.S. Government Agencies (Cost $41,976,642) 42,006,831
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
U.S. Treasury Bills (4.1%)
2,000,000 2/1/01............................................... $ 1,938,360
-----------
Total U.S. Treasury Bills (Cost $2,997,116) 1,938,360
-----------
U.S. Treasury Notes (6.3%)
3,000,000 6.38%, 3/31/01....................................... 2,999,040
-----------
Total U.S. Treasury Notes (Cost $1,938,564) 2,999,040
-----------
Investment Company (0.0%)
700 The One Group U.S. Treasury Securities Money Market
Fund (Fiduciary Shares)............................. 700
-----------
Total Investment Company (Cost $700) 700
-----------
Total Investments (Cost $46,913,022) (a)--98.9% 46,944,931
Other assets in excess of liabilities--1.1% 538,303
-----------
Total Net Assets--100.0% $47,483,234
===========
</TABLE>
--------
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...... $40,080
Unrealized depreciation...... (8,171)
-------
Net unrealized appreciation.. $31,909
=======
</TABLE>
See notes to financial statements.
47
<PAGE>
PACIFIC CAPITAL FUNDS
Short Intermediate U.S. Treasury Securities Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Treasury Notes (84.0%)
500,000 5.50%, 12/31/00....................................... $ 498,125
1,000,000 6.13%, 12/31/01....................................... 995,930
1,100,000 6.25%, 2/28/02........................................ 1,097,250
3,600,000 6.25%, 8/31/02........................................ 3,593,232
2,000,000 6.38%, 8/15/02........................................ 2,000,620
5,500,000 6.25%, 2/15/03........................................ 5,489,660
1,100,000 5.75%, 8/15/03........................................ 1,083,500
4,000,000 6.50%, 5/15/05........................................ 4,046,240
3,000,000 6.50%, 8/15/05........................................ 3,036,540
5,750,000 6.25%, 2/15/07........................................ 5,771,562
-----------
Total U.S. Treasury Notes (Cost $27,807,257) 27,612,659
-----------
U.S. Government Agencies (12.9%)
Federal National Mortgage Association (6.1%)
2,000,000 7.25%, 1/15/10........................................ 2,018,460
-----------
Student Loan Marketing Association (6.8%)
200,000 6.67%*, 5/18/01....................................... 200,074
2,000,000 6.69%*, 7/25/01....................................... 2,000,640
-----------
2,200,714
-----------
Total U.S. Government Agencies (Cost $4,207,984) 4,219,174
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Investment Company (1.0%)
$ 325,787 The One Group U.S. Treasury
Securities Money Market Fund (Fiduciary Shares)...... $ 325,787
-----------
Total Investment Company (Cost $325,787) 325,787
-----------
Total Investments (Cost $32,341,028)
(a)--97.9% 32,157,620
Other assets in excess of liabilities--2.1% 674,506
-----------
Total Net Assets--100.0% $32,832,126
===========
</TABLE>
--------
* Variable rate security. Rate presented represents rate in effect at July
31, 2000. Maturity reflects final maturity date.
(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 purposes in excess of federal income tax
reporting of approximately $29,974. Cost for federal income tax purposes
differs from value by net unrealized depreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized appreciation... $ 83,395
Unrealized depreciation... (296,777)
---------
Net unrealized
depreciation............. $(213,382)
=========
</TABLE>
See notes to financial statements.
48
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Alternative Minimum Tax Paper (14.1%)
Hawaii (14.1%)
1,075,000 Hawaii Airport System Revenue, 7.00%, 7/1/10, FGIC.. $ 1,117,839
1,500,000 Hawaii Airport System Revenue, Second Series, 6.75%,
7/1/21, MBIA....................................... 1,543,815
15,375,000 Hawaii Airport System Revenue, Second Series, 6.90%,
7/1/12, MBIA....................................... 17,546,718
1,890,000 Hawaii Airport System Revenue, Second Series, 7.00%,
7/1/18, MBIA....................................... 1,956,358
4,660,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Citizens Utilities Co.
Project, 6.60%, 7/1/22............................. 4,799,800
11,000,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaii Electric Co.,
Series A, 6.60%, 1/1/25, MBIA...................... 11,467,500
2,145,000 Hawaii Department of Budget & Finance, Special
Purpose Mortgage Revenue, Hawaiian Electric Co. &
Subsidiaries, 6.55%, 12/1/22, MBIA................. 2,209,350
5,000,000 Hawaii Department of Budget & Finance, Special
Purpose Revenue, Hawaii Electric Co., Series A,
6.20%, 5/1/26, MBIA................................ 5,125,000
2,650,000 Hawaii Harbor Capital Improvement Revenue, 6.10%,
7/1/07, FGIC....................................... 2,805,688
4,660,000 Hawaii Harbor Capital Improvement Revenue, 6.38%,
7/1/24, FGIC....................................... 4,799,800
1,350,000 Hawaii Harbor Capital Improvement Revenue, 6.50%,
7/1/19, FGIC....................................... 1,393,875
3,840,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Revenue, Series A, 6.00%, 7/1/26... 3,840,000
3,600,000 Hawaii State Budget & Finance Department, Citizens
Communications, 4.10%, 8/11/00..................... 3,600,000
------------
Total Alternative Minimum Tax Paper (Cost $58,304,233) 62,205,743
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds (83.6%)
Arizona (2.5%)
1,000,000 Arizona Unified School District, Maricopa County,
GO, 5.40%, 7/1/12.................................. $ 1,018,750
5,000,000 Maricopa County Arizona Development Revenue, 4.20%*,
7/1/12............................................. 4,999,999
2,150,000 Phoenix Civic Improvement Corp., 5.25%, 7/1/16,
Callable 7/1/07
@ 100, MBIA........................................ 2,125,813
2,750,000 Scottsdale, GO, 5.75%, 7/1/17, Callable 7/1/09 @
100................................................ 2,808,438
------------
10,953,000
------------
California (2.0%)
3,725,000 Northern California Transmission, Oregon
Transmission Project, 7.00%, 5/1/13, Series A,
MBIA............................................... 4,451,375
2,745,000 San Francisco City & County Airport Community,
International Airport Revenues, 5.63%, 5/1/21,
Callable 5/1/06 @ 101, FGIC........................ 2,758,725
1,735,000 San Francisco, Bay Area Rapid Transit, District
Sales Tax Revenue, 5.50%, 7/1/15, FGIC............. 1,769,700
------------
8,979,800
------------
Colorado (0.2%)
365,000 Adams & Arapahoe County, 5.35%, 12/1/15............. 365,456
635,000 Adams & Arapahoe County, GO, 5.35%, 12/1/15,
Callable 12/1/06 @ 102, FGIC....................... 636,588
------------
1,002,044
------------
Florida (6.9%)
2,500,000 Florida State Board of Education Capital GO, Series
D, 5.75%, 6/1/22, Callable 6/1/10 @ 101............ 2,537,500
3,000,000 Florida State, Board of Education, Series C, 5.88%,
6/1/20, Callable 6/1/10 @ 101...................... 3,082,500
3,000,000 Florida State, Bond Finance Department, General
Services Environmental Revenue, 5.75%, 7/1/13,
AMBAC.............................................. 3,097,500
5,000,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, 5.50%, 7/1/17, FGIC.. 5,018,749
</TABLE>
Continued
49
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Florida, continued
2,000,000 Florida State, Turnpike Authority Revenue,
Department of Transportation, Series A, 5.50%,
7/1/21, FGIC....................................... $ 1,985,000
3,500,000 Florida State,Turnpike Authority Revenue, Department
of Transportation, Series A, 5.75%, 7/1/17,
Callable 7/1/10 @ 101.............................. 3,587,500
2,000,000 Miami-Dade County Revenue Bond, 6.00%, 7/1/20,
Callable 7/1/10
@ 101.............................................. 2,085,000
4,875,000 Orange County, Public Tax Service, 6.00%, 10/1/24,
FGIC............................................... 5,021,249
3,725,000 Orlando, Utilities Community Water & Electric
Revenue Refunding, Series D, 6.75%, 10/1/17........ 4,279,094
------------
30,694,092
------------
Georgia (2.8%)
6,810,000 Georgia Municipal Electric Authority, 6.60%, 1/1/18,
MBIA................................................ 7,678,274
1,865,000 Georgia Municipal Electric Authority, Series B,
6.13%, 1/1/14, FGIC................................. 1,923,281
2,330,000 Metropolitan Atlanta, Rapid Transportation
Authority, Sales Tax Revenue, Series P, 6.25%,
7/1/11, AMBAC...................................... 2,592,125
------------
12,193,680
------------
Hawaii (45.1%)
1,000,000 Hawaii County, 4.60%, 2/1/06........................ 993,750
1,000,000 Hawaii County, 4.70%, 2/1/07........................ 995,000
1,000,000 Hawaii County, 4.90%, 2/1/09........................ 998,750
2,320,000 Hawaii County, GO, 5.20%, 2/1/15.................... 2,279,400
1,375,000 Hawaii County, GO, Series A, 4.50%, 2/1/04, FGIC.... 1,369,844
1,810,000 Hawaii County, GO, Series A, 5.00%, 2/1/10, FGIC.... 1,816,788
2,095,000 Hawaii County, GO, Series A, 5.10%, 2/1/13, FGIC.... 2,071,431
605,000 Hawaii County, GO, Series A, 5.60%, 5/1/13, FGIC.... 625,419
2,000,000 Hawaii County, Series A, 5.50%, 5/1/08, FGIC........ 2,082,500
2,000,000 Hawaii County, Series A, 5.50%, 5/15/16, Callable
5/15/09 @ 101, FSA................................. 2,010,000
2,000,000 Hawaii County, Series B, 4.70%, 5/15/05............. 2,000,000
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
3,245,000 Hawaii Department of Budget & Finance, Queens Health
System, 6.05%, 7/1/16.............................. $ 3,257,169
1,455,000 Hawaii Department of Budget & Finance, Queens Health
System, 5.88%, 7/1/11.............................. 1,475,006
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......... 1,791,375
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......... 3,854,800
1,400,000 Hawaii Department of Transportation, Special
Facility Revenue, 5.75%, 3/1/13.................... 1,370,250
1,400,000 Hawaii Harbor Capital Improvement Revenue, 6.20%,
7/1/08, MBIA....................................... 1,459,500
2,795,000 Hawaii Housing Finance & Development Corp., 5.70%,
7/1/13, FNMA....................................... 2,819,456
5,980,000 Hawaii Housing Finance & Development Corp., 5.85%,
7/1/17............................................. 6,032,324
3,775,000 Hawaii Housing Finance & Development Corp., 7.00%,
7/1/31, FNMA....................................... 3,897,612
1,430,000 Hawaii Housing Finance & Development Corp., Single
Family Mortgage Purchase Revenue, Series B, 6.90%,
7/1/16, FNMA....................................... 1,475,603
2,340,000 Hawaii Housing Finance & Development Corp.,
University of Hawaii Housing, 5.70%, 10/1/25,
AMBAC.............................................. 2,342,925
4,185,000 Hawaii State Department Budget & Finance, 4.95%,
4/1/12............................................. 4,111,763
2,000,000 Hawaii State Department of Budget & Finance,
Hawaiian Electric Co. Revenue, Series A, 5.50%,
12/1/14, Callable 12/1/09 @ 101, AMBAC............. 2,030,000
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............... 3,250,625
</TABLE>
Continued
50
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
1,000,000 Hawaii State Highway Revenue, 5.00%, 7/1/16, FGIC.... $ 955,000
1,250,000 Hawaii State Highway Revenue, 5.25%, 7/1/16, Callable
7/1/06
@ 102, MBIA......................................... 1,226,563
3,500,000 Hawaii State, Airport System Revenue, 5.60%, 7/1/04,
MBIA................................................ 3,618,125
5,025,000 Hawaii State, GO, Series CC, 4.70%, 2/1/01........... 5,032,285
2,000,000 Hawaii State, GO, Series BZ, 6.00%, 10/1/12, FGIC.... 2,155,000
1,350,000 Hawaii State, GO, Series CH, 4.75%, 11/1/11, MBIA.... 1,312,875
1,000,000 Hawaii State, GO, Series CL, 5.25%, 3/1/16, FGIC..... 1,035,000
3,000,000 Hawaii State, GO, Series CM, 6.50%, 12/1/13, FGIC.... 3,378,750
2,000,000 Hawaii State, GO, Series CN, 5.25%, 3/1/13, Callable
3/1/07
@ 102, FGIC......................................... 2,002,500
4,975,000 Hawaii State, GO, Series CN, 5.25%, 3/1/15, Callable
3/1/07
@ 102, FGIC......................................... 4,912,813
2,750,000 Hawaii State, GO, Series CN, 5.50%, 3/1/16, Pre-
refunded 3/1/07 @ 102, FGIC......................... 2,908,125
1,500,000 Hawaii State, GO, Series CN, 6.25%, 3/1/08, FGIC..... 1,631,250
3,000,000 Hawaii State, GO, Series CO, 6.00%, 9/1/05, FGIC..... 3,176,250
5,500,000 Hawaii State, GO, Series CR, 5.00%, 4/1/17, Callable
4/1/08
@ 101, MBIA......................................... 5,204,374
5,000,000 Hawaii State, GO, Series CS, 5.25%, 4/1/04, MBIA..... 5,099,999
2,000,000 Hawaii State, GO, Series CT, 5.88%, 9/1/17, Callable
9/1/09
@ 101, FSA.......................................... 2,072,500
2,000,000 Hawaii State, GO, Series CT, 5.88%, 9/1/17, Callable
9/1/09
@ 101, FSA.......................................... 2,062,500
1,000,000 Hawaii State, Highway Revenue, 5.25%, 7/1/14,
Callable 7/1/08
@ 101, FGIC......................................... 993,750
2,800,000 Hawaii State, Series CP, 5.00%, 10/1/13, FGIC........ 2,740,500
4,310,000 Hawaii State, Series CP, 5.00%, 10/1/15, FGIC........ 4,126,825
3,000,000 Hawaii State, Series CP, 5.00%, 10/1/16, Callable
10/1/07
@ 101, FGIC......................................... 2,861,250
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
2,050,000 Hawaii State, Series CP, 5.00%, 10/1/17, FGIC........ $ 1,939,813
3,150,000 Hawaii State, Series CR, 5.00%, 4/1/16, Callable
4/1/08 @ 101, MBIA.................................. 3,008,250
12,000,000 Honolulu City & County Waste Water Systems Revenue,
5.00%, 7/1/23, FGIC................................. 10,874,999
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... 2,508,500
935,000 Honolulu City & County Water, 6.00%, 12/1/14, FGIC... 999,281
200,000 Honolulu City & County, GO, Series A, 4.30%*, 1/1/17. 200,000
5,000,000 Honolulu City & County, GO, Series A, 4.30%*, 1/1/19. 5,000,000
370,000 Honolulu City & County, GO, Series A, 5.00%, 11/1/12,
MBIA................................................ 376,013
1,010,000 Honolulu City & County, GO, Series A, 5.00%, 11/1/12,
MBIA................................................ 998,638
1,000,000 Honolulu City & County, GO, Series A, 5.00%, 7/1/02,
FGIC................................................ 1,010,000
1,325,000 Honolulu City & County, GO, Series A, 5.63%, 9/1/13,
Pre-refunded 9/1/06 @ 102, FGIC..................... 1,409,469
465,000 Honolulu City & County, GO, Series A, 5.75%, 4/1/12,
Escrowed to Maturity, FGIC.......................... 491,156
2,125,000 Honolulu City & County, GO, Series A, 6.00%, 1/1/11,
Escrowed to Maturity, FGIC.......................... 2,295,000
2,250,000 Honolulu City & County, GO, Series B, 5.00%, 10/1/03. 2,278,125
1,000,000 Honolulu City & County, GO, Series B, 5.13%, 7/1/10,
Callable 7/1/09 @ 101, FGIC......................... 1,013,750
640,000 Honolulu City & County, GO, Series B, 5.25%, 10/1/12,
FGIC................................................ 647,200
475,000 Honolulu City & County, Go, Series B, 5.50%, 10/1/11,
FGIC................................................ 494,594
2,125,000 Honolulu City & County, GO, Series C, 5.50%, 11/1/05,
FGIC................................................ 2,204,688
3,000,000 Honolulu City & County, GO, Series C, 5.50%, 11/1/09,
FGIC................................................ 3,135,000
5,000 Honolulu City & County, Series A, 5.63%, 9/1/13,
Callable 9/1/06
@ 102, FGIC......................................... 5,131
</TABLE>
Continued
51
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
1,670,000 Honolulu City & County, Series A, 5.63%, 9/1/13,
Callable 9/1/06
@ 102, FGIC......................................... $ 1,761,850
4,820,000 Honolulu City & County, Series A, 5.75%, 4/1/11,
FGIC................................................ 5,109,199
1,865,000 Honolulu City & County, Series A, 5.75%, 4/1/12,
FGIC................................................ 1,965,244
3,345,000 Honolulu City & County, Series A, 5.75%, 4/1/13,
FGIC................................................ 3,503,888
850,000 Honolulu City & County, Series A, 5.75%, 4/1/13,
FGIC................................................ 894,625
875,000 Honolulu City & County, Series A, 6.00%, 1/1/11,
FGIC................................................ 941,719
3,725,000 Honolulu City & County, Series A, 7.35%, 7/1/06,
FGIC................................................ 4,223,219
2,000,000 Honolulu City & County, Series B, 5.00%, 11/1/15,
Callable 11/01/07 @ 101, FGIC....................... 2,045,000
2,595,000 Honolulu City & County, Series B, 5.13%, 7/1/18,
Callable 7/1/09
@ 101............................................... 2,458,763
295,000 Honolulu City & County, Series B, 5.25%, 10/1/12,
FGIC................................................ 299,056
1,385,000 Honolulu City & County, Series B, 5.50%, 10/1/11,
FGIC................................................ 1,436,938
1,010,000 Kauai County, 5.55%, 8/1/04.......................... 1,044,088
1,075,000 Kauai County, 5.65%, 8/1/05.......................... 1,120,688
1,130,000 Kauai County, 5.75%, 8/1/06.......................... 1,189,325
1,340,000 Kauai County, Series C, 5.90%, 8/1/09, AMBAC......... 1,437,150
1,180,000 Maui County Refunding, 5.13%, 12/15/10............... 1,188,850
935,000 Maui County Refunding, 5.25%, 9/1/06................. 956,038
515,000 Maui County Water, Series A, 6.10%, 12/1/02, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 531,094
545,000 Maui County Water, Series A, 6.20%, 12/1/03, FGIC.... 562,713
580,000 Maui County Water, Series A, 6.30%, 12/1/04, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 599,575
620,000 Maui County Water, Series A, 6.40%, 12/1/05, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 641,700
565,000 Maui County Water, Series A, 6.50%, 12/1/06, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 585,481
550,000 Maui County Water, Series A, 6.60%, 12/1/07, Pre-
refunded 12/1/01 @ 101, FGIC, (b)................... 570,625
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
655,000 Maui County Water, Series A, 6.65%, 12/1/09, Pre-
refunded 12/1/01 @ 101, FGIC, (b).................. $ 679,563
1,020,000 Maui County, GO, 5.90%, 6/1/14...................... 1,056,975
1,000,000 Maui County, GO, 6.00%, 12/15/08, FGIC.............. 1,078,750
1,005,000 Maui County, Series A, 5.10%, 9/1/11, Callable
9/1/07 @ 101....................................... 1,008,769
1,160,000 Maui County, Series A, 5.13%, 3/1/15................ 1,131,000
2,040,000 Maui County, Series A, 5.38%, 3/1/17................ 2,014,500
------------
199,507,072
------------
Idaho (0.7%)
2,930,000 Idaho Health Facilities Authority Revenue, St. Luke
Medical Center, 4.30%*, 5/1/22..................... 2,930,000
------------
Kansas (1.7%)
3,725,000 Burlington Pollution Control Refunding, Kansas Gas &
Electric Co. Project, 7.00%, 6/1/31................ 3,867,295
1,065,000 Kansas City Utilities System Revenue, 6.38%, 9/1/23. 1,152,863
2,195,000 Kansas City Utilities System Revenue, 6.38%, 9/1/23,
Callable 9/1/04 @ 102.............................. 2,291,031
------------
7,311,189
------------
Maine (0.7%)
2,795,000 Maine State Turnpike Authority, Turnpike Revenue,
6.00%, 7/1/14...................................... 2,980,169
------------
Massachusetts (2.2%)
4,790,000 Commonwealth of Massachusetts, Series B, 5.50%,
7/1/15............................................. 5,011,537
1,000,000 Massachusetts State Water Pollution Abatement Trust,
5.70%, 2/1/13...................................... 1,027,500
3,520,000 Massachusetts State, GO, Series A, 5.80%, 2/1/17,
Callable 2/1/10
@ 101.............................................. 3,616,800
------------
9,655,837
------------
Michigan (2.1%)
4,400,000 Michigan Environmental Protection Program, GO,
5.40%, 11/1/19..................................... 4,295,500
2,245,000 Michigan Strategic Obligations Revenue, 6.95%,
5/1/11............................................. 2,612,619
2,250,000 Saline Area Schools, GO, 5.50%, 5/1/15, FGIC........ 2,272,500
------------
9,180,619
------------
</TABLE>
Continued
52
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Minnesota (1.0%)
2,280,000 Cohasset, Minnesota Power & Light Co., Revenue,
Series A, 4.30%*, 6/1/20........................... $ 2,280,000
2,000,000 North St. Paul, Maplewood, Independent School
District, No. 622, Series A, 6.88%, 2/1/15, Pre-
refunded 2/1/05 @ 100 (b).......................... 2,180,000
------------
4,460,000
------------
New Jersey (0.7%)
3,000,000 New Jersey Wastewater Treatment Trust, Series B,
6.38%, 4/1/14...................................... 3,232,500
------------
New Mexico (1.1%)
3,000,000 Rio Rancho Water & Waste Water Systems Revenue,
Series A, 5.90%, 5/15/15, FSA...................... 3,180,000
1,625,000 Sante Fe, Gross Receipts Tax Revenue, 5.63%, 6/1/16. 1,635,156
------------
4,815,156
------------
New York (3.4%)
7,430,000 New York City Transitional Revenue, Series C, 5.25%,
5/1/15, Callable 5/1/08 @ 101...................... 7,290,687
975,000 New York City, GO, Series B, 4.40%*, 10/1/20, FGIC.. 975,000
2,950,000 New York State Environmental Facilities Pollution
Control, 5.13%, 6/15/16............................ 2,839,375
2,000,000 New York State Transit Authority, Highway & Bridge,
Revenue, Series A, 5.80%, 4/1/18, Callable 4/1/10 @
101, FSA........................................... 2,045,000
2,000,000 Triborough Bridge & Tunnel Authority, New York
Revenues, General Purpose, 5.30%, 1/1/17........... 1,955,000
------------
15,105,062
------------
North Carolina (1.1%)
4,480,000 Easton Municipal Power Agency, Series A, 6.50%,
1/1/18, Escrowed to Maturity (b)................... 4,995,200
------------
Ohio (1.8%)
2,320,000 Cleveland Package Facilities Revenue, 5.50%,
9/15/16............................................ 2,337,400
1,630,000 Cleveland Waterworks Revenue, 6.25%, 1/1/16, MBIA... 1,680,938
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ---------------------------------------------------- ------------
<C> <S> <C>
Municipal Bonds, continued
Ohio, continued
3,165,000 Columbus Airport Authority, 5.00%, 1/1/16........... $ 3,030,488
1,000,000 Ohio Water Development Authority, Pollution Control,
5.50%, 12/1/15, MBIA............................... 1,010,000
------------
8,058,826
------------
Pennsylvania (1.7%)
5,000,000 Allegheny County Port Authority, 6.00%, 3/1/19,
Callable 3/1/09
@ 101, MBIA........................................ 5,174,999
2,365,000 Southeastern Pennsylvania Transportation Authority,
Series A, 6.00%, 3/1/14............................ 2,515,769
------------
7,690,768
------------
Tennessee (1.8%)
4,730,000 Shelby County, Series A, 5.63%, 4/1/15.............. 4,783,213
1,570,000 Shelby County, Series A, 5.63%, 4/1/15.............. 1,646,538
1,600,000 Shelby County, Series B, 5.25%, 8/1/17, Callable
8/1/07 @ 101....................................... 1,554,000
------------
7,983,751
------------
Virginia (3.1%)
5,000,000 Commonwealth of Virginia Public School Authority,
Special Obligation, Chesapeake School, 5.63%,
6/1/15............................................. 5,081,249
2,995,000 Fairfax County Public Improvement, Series A, 5.50%,
6/1/14............................................. 3,032,438
3,650,000 Norfolk Water Revenue, 5.75%, 11/1/13, MBIA......... 3,782,313
1,750,000 Richmond Refunding, 5.20%, 1/15/14.................. 1,745,625
------------
13,641,625
------------
Washington (1.0%)
3,000,000 King County, Sewer Revenue, 6.25%, 1/1/14, Callable
1/1/09
@ 101, FGIC........................................ 3,198,750
1,000,000 Snohomish County, GO, 5.70%, 12/1/14, MBIA.......... 1,026,250
------------
4,225,000
------------
Total Municipal Bonds (Cost $358,861,348) 369,595,390
------------
</TABLE>
Continued
53
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal
Amount Security Description Market Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Investment Company (0.3%)
1,452,962 Dreyfus Tax Exempt Money Market Fund................. $ 1,452,962
------------
Total Investment Company (Cost $1,452,962) 1,452,962
------------
Total Investments (Cost $418,618,507) (a)--98.0% 433,254,095
Other assets in excess of liabilities--2.0% 9,033,806
------------
Total Net Assets--100.0% $442,287,901
============
</TABLE>
--------
* Variable rate security. Rate presented represents rate in effect July 31,
2000. Maturity reflects final maturity date.
(a) Represents cost for federal income tax purpose and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $17,133,904
Unrealized depreciation.. (2,498,316)
-----------
Net unrealized
appreciation............. $14,635,588
===========
</TABLE>
(b) Collaterized by various U.S. Government Securities.
AMBAC--AMBAC Indemnity Corporation
FGIC--Insured by the Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
FNMA--Insured by Federal National Mortgage Association Collateral
GO--General Obligation
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, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Alternative Minimum Tax Paper (16.4%)
Hawaii (13.0%)
2,070,000 Hawaii State Airport System Revenue, 5.60%, 7/1/01.... $ 2,090,018
585,000 Hawaii State Harbor, Capital Improvements Revenue,
5.80%, 7/1/04, FGIC.................................. 606,206
1,000,000 Hawaii State Housing Finance & Development, Single
Family, Series A, 4.55%, 7/1/02...................... 992,500
1,895,000 Hawaii State Housing Finance & Development, Single
Family, Series A, 4.75%, 7/1/06...................... 1,854,731
-----------
5,543,455
-----------
Tennessee (1.0%)
440,000 Tennessee Housing Development Agency Revenue, 4.25%,
7/1/01............................................... 439,036
-----------
Utah (2.4%)
1,000,000 Utah State Regents Student Loan, Revenue, 5.90%,
11/1/07, Callable 11/1/05 @ 102...................... 1,043,620
-----------
Total Alternative Minimum Tax Paper (Cost $7,053,267) 7,026,111
-----------
Municipal Bonds (81.5%)
Arizona (2.4%)
1,000,000 Mesa Arizona Utility Systems Revenue, 5.00%, 7/1/08,
MBIA................................................. 1,013,750
-----------
Connecticut (2.3%)
1,000,000 Connecticut State, GO, Series E, 4.75%, 3/15/08,
Callable 3/15/04 @ 101.50............................ 998,750
-----------
Hawaii (45.8%)
2,085,000 Hawaii County, GO, Series B, 4.25%, 5/15/01, FSA...... 2,084,812
50,000 Hawaii State Highway Revenue, 4.50%, 7/1/02........... 50,063
1,000,000 Hawaii State Highway Revenue, 6.00%, 7/1/04........... 1,050,000
1,200,000 Hawaii State Housing Finance & Development, Single
Family, Series B, 4.80%, 7/1/07, FNMA................ 1,185,000
500,000 Hawaii State, Series BT, 6.125%, 2/1/07, Callable
2/1/01 @ 101, Pre-Refunded 2/1/01.................... 509,235
3,000,000 Hawaii State, Airport System Revenue, 5.60%, 7/1/04,
MBIA................................................. 3,101,249
1,000,000 Hawaii State, GO Series CP, 5.00%, 10/1/04, FGIC...... 1,013,750
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
Hawaii, continued
475,000 Hawaii State, GO, Series CD, 5.00%, 2/1/03............ $ 479,156
100,000 Hawaii State, GO, Series CJ, 5.63%, 1/1/02............ 101,500
1,000,000 Hawaii State, GO, Series CN, 6.25%, 3/1/08, FGIC...... 1,087,500
1,150,000 Hawaii State, GO, Series CP, 5.50%, 10/1/07, FGIC..... 1,198,875
1,000,000 Hawaii State, GO, Series CT, 5.25%, 9/1/07, FSA....... 1,026,250
1,150,000 Hawaiian Home Lands Dept. Revenue, 4.05%, 7/1/06...... 1,078,125
770,000 Honolulu City & County, Series B, 5.00%, 11/1/05,
FGIC................................................. 780,588
1,150,000 Honolulu City & County Waste Water Systems, 5.00%,
7/1/09............................................... 1,158,625
500,000 Honolulu City & County, GO, Series A, 5.00%, 7/1/02... 505,000
725,000 Honolulu City & County, GO, Series A, 5.10%, 11/1/08,
MBIA................................................. 736,781
1,000,000 Honolulu Hawaii City & County, GO, Series A, 5.10%,
4/1/02............................................... 1,010,000
1,400,000 Maui County, GO, Series A, 5.25%, 3/1/08.............. 1,435,000
-----------
19,591,509
-----------
Idaho (3.5%)
1,500,000 Idaho Health Facilities Authority Revenue, St. Luke
Medical Center, 4.30%*, 5/1/22....................... 1,500,000
-----------
Kansas (5.1%)
2,170,000 Wyandotte City & County, Water Utility Systems
Revenue, 4.50%, 9/1/03, MBIA......................... 2,167,288
-----------
Maine (2.4%)
1,000,000 Maine Muni Bond Bank, 5.00%, 11/1/05, FSA............. 1,016,250
-----------
Michigan (6.1%)
1,000,000 Farmington Public School District, 5.00%, 5/1/06...... 1,012,500
1,500,000 Kent Hospital Financial Authority, Revenue, Butter
Worth Health System, Series A, 5.63%, 1/15/26,
Prerefunded 1/15/06 @ 102, MBIA...................... 1,588,125
-----------
2,600,625
-----------
</TABLE>
Continued
55
<PAGE>
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
Minnesota (2.3%)
1,000,000 Cohasset, Minnesota Power & Light Co., Revenue, Series
A, 4.30%*, 6/1/20.................................... $ 1,000,000
-----------
Missouri (2.4%)
1,000,000 Kansas City Water Revenue, Series B, 5.50%, 12/1/02... 1,023,750
-----------
New York (2.1%)
900,000 New York State Environmental Facilities Pollution
Control Revenue, 5.00%, 6/15/03...................... 912,375
-----------
Rhode Island (2.3%)
1,000,000 Rhode Island State, Consolidated Development Capital
Loan, GO, Series A, 5.00%, 7/15/01, FGIC............. 1,006,420
-----------
Utah (2.4%)
1,000,000 Jordan Utah School District, Series A, 5.25%, 6/15/05. 1,026,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued
Wisconsin (2.4%)
1,000,000 Wisconsin State Health & Education Facilities
Authority, Revenue, Medical College of Wisconsin,
Inc., Project D, 7.25%, 12/1/10, callable 12/1/00 @
101.5................................................ $ 1,029,350
-----------
Total Municipal Bonds (Cost $35,117,623) 34,886,317
-----------
Investment Company (0.7%)
318,128 Dreyfus Tax Exempt Money Market Fund.................. 318,128
1 Nuveen Tax Free Money Market Fund..................... 1
-----------
Total Investment Company (Cost $318,129) 318,129
Total Investments (Cost $42,489,019) (a)--98.6% 42,230,557
-----------
Other assets in excess of liabilities--1.4% 598,010
-----------
Total Net Assets--100.0% $42,828,567
===========
</TABLE>
--------
* Variable rate security. Rate presented represents rate in effect at July 31,
2000. 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... $ 86,894
Unrealized depreciation... (345,356)
---------
Net unrealized
depreciation.............. $(258,462)
=========
</TABLE>
FGIC--Insured by the Financial Guaranty Insurance Corporation
FSA--Insured by Financial Security Assurance
FNMA--Insured by Federal National Mortgage Association Collateral
GO--General Obligation
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, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks (97.5%)
Belgium (0.3%)
Electronics (0.3%)
12,600 Lernout & Hauspie Speech Products N.V. (b).......... $ 392,175
------------
Brazil (3.0%)
Banks (0.8%)
100,660,000 Banco Bradesco SA................................... 883,948
------------
Oil & Gas Exploration, Production, & Services (0.7%)
29,900 Petroleo Brasileiro SA, ADR......................... 799,484
------------
Telecommunication Equipment (0.7%)
9,500 Telecomunicacoes Brasileiras SA..................... 862,125
------------
Telecommunications (0.8%)
36,639 Tele Norte Leste Participacoes SA, ADR.............. 877,046
------------
3,422,603
------------
Canada (7.5%)
Automotive (0.5%)
12,900 Magna International, Inc., Class A.................. 631,219
------------
Diversified Financial Services (0.4%)
32,300 Bombardier, Inc., Class B........................... 485,888
------------
Electronic Components/Instruments (1.3%)
24,500 Celestica, Inc. (b)................................. 1,530,277
------------
Energy Sources (0.5%)
6,800 Ballard Power Systems, Inc. (b)..................... 598,400
------------
Medical Drugs (1.2%)
23,200 Biovail Corp. (b)................................... 1,345,600
------------
Oil & Gas Exploration, Production, & Services (0.6%)
42,200 Anderson Exploration Ltd. (b)....................... 710,082
------------
Paper Products (1.1%)
132,900 Abitibi-Consolidated, Inc........................... 1,262,550
------------
Telecommunication Equipment (1.9%)
28,600 Nortel Networks Corp................................ 2,127,125
------------
8,691,141
------------
China (1.1%)
Oil & Gas Exploration, Production, & Services (1.1%)
5,738,000 PetroChina Co. Ltd. (b)............................. 1,309,739
------------
Finland (2.3%)
Telecommunication Equipment (1.2%)
32,400 Nokia Oyj, Class A, ADR............................. 1,435,725
------------
Telecommunications (1.1%)
29,817 Elisa Communications Oyj, Class A................... 1,269,557
------------
2,705,282
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
France (9.6%)
Building Products (0.8%)
14,930 Bouygues SA......................................... $ 919,301
------------
Electric Utility (0.4%)
2,000 Legrand SA.......................................... 454,601
------------
Electrical--Machinery (0.5%)
9,100 Schneider Electric SA............................... 621,036
------------
Food Products (1.2%)
9,300 Groupe Danone....................................... 1,396,911
------------
Leisure (0.7%)
18,600 Accor SA............................................ 792,818
------------
Manufacturing--Capital Goods (0.5%)
23,800 Alstom.............................................. 583,539
------------
Medical Drugs (0.8%)
11,800 Aventis SA.......................................... 908,628
------------
Oil & Gas Exploration, Production, & Services (1.0%)
7,674 Total Fina SA, Class B.............................. 1,137,033
------------
Telecommunication Equipment (1.9%)
30,500 Alcatel............................................. 2,249,655
------------
Television (1.8%)
28,000 Societe Television Francaise........................ 2,080,824
------------
11,144,346
------------
Germany (6.1%)
Airline Services (1.0%)
50,900 Deutsche Lufthansa AG............................... 1,264,025
------------
Automobiles (1.1%)
39,000 Bayerische Motoren Werke AG......................... 1,337,117
------------
Banks (1.1%)
26,500 Dresdner Bank AG.................................... 1,222,864
------------
Computers (0.9%)
2,700 Intershop Communications AG (b)..................... 1,073,307
------------
Computers & Peripherals (0.9%)
4,600 SAP AG.............................................. 1,031,516
------------
Electrical & Electronic (0.5%)
5,800 Epcos AG (b)........................................ 525,617
------------
Entertainment--Television (0.6%)
13,000 EM.TV & Merchandising AG............................ 650,248
------------
7,104,694
------------
Hong Kong (4.3%)
Banks (1.1%)
98,400 HSBC Holdings PLC................................... 1,293,372
------------
Diversified--Conglomerates, Holding Companies (2.0%)
114,000 Citic Pacific Ltd. ................................. 609,600
</TABLE>
Continued
57
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Hong Kong, continued
119,000 Hutchison Whampoa Ltd. ............................. $ 1,663,327
------------
2,272,927
------------
Real Estate (1.2%)
121,000 Cheung Kong Holdings Ltd. .......................... 1,427,505
------------
4,993,804
------------
Israel (1.7%)
Medical Drugs (1.7%)
32,200 Teva Pharmaceutical Industries Ltd., ADR............ 1,956,150
------------
Italy (4.0%)
Aerospace (1.0%):
856,500 Finmeccanica SpA.................................... 1,165,875
------------
Insurance (1.0%)
97,000 Alleanza Assicurazioni SpA.......................... 1,208,918
------------
Oil & Gas Exploration, Production, & Services (1.1%)
227,300 ENI SpA............................................. 1,272,153
------------
Television (0.9%)
64,900 Mediaset SpA........................................ 1,025,350
------------
4,672,296
------------
Japan (12.5%)
Airlines (0.9%)
254,000 Japan Airlines Co. Ltd. ............................ 1,045,426
------------
Automobiles (0.2%)
3,000 Toyoda Gosei Co. Ltd. .............................. 180,696
------------
Building Materials (1.3%)
118,000 Nippon Sheet Glass Co. ............................. 1,507,625
------------
Computer Software (0.5%)
600 Internet Initiative Japan, Inc. ADR (b)............. 31,350
4,000 Trend Micro Inc. (b)................................ 489,157
------------
520,507
------------
Computers & Peripherals (1.0%)
43,000 Fujitsu Ltd. ....................................... 1,208,655
------------
Electrical & Electronic (3.5%)
14,900 Fanuc Ltd. ......................................... 1,429,131
38,000 Pioneer Electronic Corp. ........................... 1,248,445
8,300 Sony Corp. ......................................... 762,765
64,000 Toshiba Corp. ...................................... 563,625
------------
4,003,966
------------
Electrical Equipment (0.5%)
68,000 Mitsubishi Electric Corp. .......................... 543,000
------------
Electronic Components/Instruments (1.1%)
47,000 NEC Corp. .......................................... 1,252,460
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks continued
Japan, continued
Manufacturing--Consumer Goods (0.7%)
41,000 Daikin Industries Ltd. ............................. $ 858,716
------------
Real Estate (0.6%)
70,000 Mitsui Fudosan Co. Ltd. ............................ 680,348
------------
Utilities--Telecommunications (0.5%)
48 Nippon Telegraph & Telephone Corp. ................. 573,846
------------
Wire & Cable Products (1.7%)
70,000 The Furukawa Electric Co. Ltd. ..................... 1,906,890
------------
14,282,135
------------
Mexico (0.4%)
Utilities--Telecommunications (0.4%)
9,500 Telefonos de Mexico SA de CV, ADR................... 499,938
------------
Netherlands (6.1%)
Beverages (0.9%)
18,000 Heineken NV......................................... 1,029,107
------------
Electrical & Electronic (1.2%)
31,400 Royal Philips Electronics NV........................ 1,411,038
------------
Electronics (1.0%)
19,800 STMicroelectronics NV............................... 1,127,363
------------
Medical Providers (0.9%)
22,400 QIAGEN NV (b)....................................... 1,060,649
------------
Retail--Food Products (1.1%)
13,600 Koninklijke Ahold NV................................ 371,383
19,600 Koninklijke Numico NV............................... 919,895
------------
1,291,278
------------
Semiconductors (1.0%)
28,700 ASM Lithography Holding NV (b)...................... 1,140,825
------------
7,060,260
------------
Russia (0.4%)
Oil & Gas Exploration, Production, & Services (0.4%)
8,700 Lukoil-Holding, ADR................................. 478,500
------------
Singapore (2.0%)
Airlines (1.0%):
118,000 Singapore Airlines Ltd.............................. 1,190,939
------------
Electronics (1.0%)
16,400 Flextronics International Ltd. (b).................. 1,161,069
------------
2,352,008
------------
South Korea (0.7%)
Electricity--Generation (0.7%)
27,240 Korea Electric Power Corp. ......................... 785,455
------------
</TABLE>
Continued
58
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Spain (4.4%)
Electric Services (0.8%)
45,500 Endesa SA........................................... $ 943,992
------------
Foreign Banks (1.1%)
122,600 Banco Santander Central Hispano SA.................. 1,265,548
------------
Tobacco (1.0%)
81,400 Altadis SA.......................................... 1,192,502
------------
Utilities--Telecommunications (1.5%)
78,600 Telefonica SA (b)................................... 1,653,299
------------
5,055,341
------------
Sweden (4.7%)
Banking & Finance (1.6%)
120,700 Nordic Baltic Holding (NBH) AB...................... 848,907
66,900 Svenska Handelsbanken AB,
Class A............................................ 1,006,695
------------
1,855,602
------------
Insurance (0.5%)
24,500 Skandia Forsakrings AB.............................. 546,327
------------
Telecommunication Equipment (1.9%)
112,700 Telefonaktiebolaget LM Ericsson, ADR................ 2,211,737
------------
Telecommunications (0.7%)
14,400 Europolitan Holdings AB............................. 160,161
10,600 NetCom AB, Class B.................................. 664,610
------------
824,771
------------
5,438,437
------------
Switzerland (1.9%)
Food Diversified (0.8%)
450 Nestle SA Registered................................ 937,464
------------
Medical Drugs (1.1%) SA, ADR
17,100 Serono (b).......................................... 461,700
700 Serono SA, Class B.................................. 741,091
------------
1,202,791
------------
2,140,255
------------
United Kingdom (19.4%)
Aerospace/Defense (2.2%)
196,352 British Aerospace PLC............................... 1,319,669
358,318 Rolls-Royce PLC..................................... 1,253,085
------------
2,572,754
------------
Airlines (1.3%)
79,500 BAA PLC............................................. 636,414
158,900 British Airways PLC................................. 896,012
------------
1,532,426
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
United Kingdom, continued
Banks (0.8%)
58,200 Royal Bank of Scotland Group PLC.................... $ 916,988
------------
Computer Service (1.7%)
51,700 CMG PLC............................................. 890,458
41,800 Logica PLC.......................................... 1,086,804
------------
1,977,262
------------
Distribution (1.0%)
343,200 Centrica PLC........................................ 1,161,665
------------
Electronic Components/Instruments (1.2%)
125,500 ARM Holdings PLC.................................... 1,421,929
------------
Manufacturing--Capital Goods (1.1%)
350,700 Invensys PLC........................................ 1,256,646
------------
Metals & Mining (0.8%)
233,100 Billiton PLC........................................ 886,750
------------
Multimedia (1.2%)
12,200 Reuters Group PLC, ADR.............................. 1,403,000
------------
Oil & Gas Exploration, Production, & Services (1.0%)
140,800 Shell Transport & Trading Co. PLC................... 1,130,297
------------
Telecommunication Equipment (2.0%)
145,100 Marconi PLC......................................... 2,341,584
------------
Telecommunications (3.2%)
62,900 Cable & Wireless PLC................................ 1,097,493
21,600 COLT Telecom Group PLC (b).......................... 674,505
416,567 Vodafone AirTouch PLC............................... 1,813,968
------------
3,585,966
------------
Telecommunications--Services & Equipment (0.7%)
105,500 Energis PLC (b)..................................... 756,856
------------
Utilities--Gas (1.2%)
204,700 BG Group PLC........................................ 1,348,183
------------
22,292,306
------------
United States (5.1%)
Oil & Gas (1.6%)
19,200 Santa Fe International Corp. ....................... 674,400
24,300 Transocean Sedco Forex, Inc......................... 1,202,850
------------
1,877,250
------------
Oil & Gas Exploration, Production, & Services (2.1%)
22,200 Precision Drilling Corp. (b)........................ 757,575
21,500 Schlumberger Ltd.................................... 1,589,656
------------
2,347,231
------------
</TABLE>
Continued
59
<PAGE>
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
United States, continued
Telecommunications (1.4%)
24,000 Amdocs Ltd. (b)..................................... $ 1,612,500
------------
5,836,981
------------
Total Common Stocks (Cost $104,319,055) 112,613,846
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- --------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Cash Sweep (3.8%)
United States (3.8%)
4,373,777 Union Bank of California Money Market Fund......... $ 4,373,777
------------
Total Cash Sweep (Cost $4,373,777) 4,373,777
------------
Total Investments (Cost $108,692,832)
(a)--101.3% 116,987,623
Liabilities in excess of other assets--(1.3)% (1,461,528)
------------
Total Net Assets--100.0% $115,526,095
============
</TABLE>
--------
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Market Appreciation/
Currency Date Value Value (Depreciation)
-------- -------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Short Contracts:
British Pound.............. 8/1/00 $ (359,090) $ (355,224) $ 3,866
Euro Dollar................ 8/1/00 (342,889) (344,421) (1,532)
8/31/00 (813,474) (809,067) 4,407
Japanese Yen............... 8/1/00 (63,614) (63,454) 160
8/2/00 (62,954) (63,071) (117)
Swedish Kroner............. 8/1/00 (160,428) (160,624) (196)
----------- ----------- --------
Total Short Contracts...... (1,802,449) (1,795,861) 6,588
----------- ----------- --------
Long Contracts:
British Pound.............. 8/1/00 1,937,340 1,907,664 (29,676)
8/2/00 259,692 256,557 (3,135)
8/3/00 400,154 396,160 (3,994)
Euro Dollar................ 8/31/00 1,334,079 1,310,462 (23,617)
Japanese Yen............... 8/1/00 13,742 13,676 (66)
----------- ----------- --------
Total Long Contracts....... $ 3,945,007 $ 3,884,519 $(60,488)
----------- ----------- --------
</TABLE>
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of market to market
adjustments for passive foreign investment companies and the amount of
losses recognized for financial reporting purposes in excess of federal
income tax reporting of approximately $379,796. Cost for federal income
tax purposes differs from value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation... $14,093,812
Unrealized depreciation... (6,178,817)
-----------
Net unrealized
appreciation............. $ 7,914,995
===========
</TABLE>
(b) Non-income producing security.
AB--Aktiebolag (Swedish Stock Co.)
ADR--American Depository Receipt
AG--Aktiengesellschaft (West German Stock Co.)
NV--Naamloze Vennootschaap (Dutch Corp.)
PLC--Public Limited Company
SA--Societe Anonyme (French Corp.)
SpA--Societa per Azioni (Italian Corp.)
See notes to financial statements.
60
<PAGE>
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (94.8%)
Aerospace/Defense (1.5%)
52,950 United Technologies Corp. ............................ $ 3,090,956
------------
Automotive (1.0%)
43,365 Ford Motor Co. ....................................... 2,019,183
------------
Automotive Parts (0.4%)
18,560 TRW, Inc. ............................................ 834,040
5,677 Visteon Corp. ........................................ 79,478
------------
913,518
------------
Banks (8.5%)
11,110 Bank of America Corp. ................................ 526,336
108,340 Bank of New York Co., Inc. ........................... 5,071,666
119,295 Chase Manhattan Corp. ................................ 5,927,471
137,181 FleetBoston Financial Corp. .......................... 4,912,795
27,360 Mellon Financial Corp. ............................... 1,031,130
------------
17,469,398
------------
Beverages (1.7%)
43,720 Anheuser Busch Cos., Inc. ............................ 3,519,460
------------
Business Equipment & Services (1.3%)
86,630 Deluxe Corp. ......................................... 1,862,545
25,800 Pitney Bowes, Inc. ................................... 893,325
------------
2,755,870
------------
Chemicals (2.1%)
31,500 Dow Chemical Co. ..................................... 905,625
73,662 E.I. du Pont de Nemours & Co. ........................ 3,337,809
------------
4,243,434
------------
Computers & Peripherals (2.2%)
38,620 Compaq Computer Corp. ................................ 1,083,774
20,420 Hewlett-Packard Co. .................................. 2,229,608
31,955 Symbol Technologies, Inc. ............................ 1,274,206
------------
4,587,588
------------
Consumer Goods & Services (1.0%)
36,970 Procter & Gamble Co. ................................. 2,102,669
------------
Diversified Operations (1.6%)
61,080 Tyco International Ltd. .............................. 3,267,780
------------
Electrical Equipment (0.5%)
27,115 Molex, Inc., Class A.................................. 942,246
------------
Electronic Components/Instruments (3.7%)
9,912 Agilent Technologies, Inc. (b)........................ 403,914
35,570 AVX Corp. ............................................ 851,457
12,880 Lernout & Hauspie Speech Products N.V. (b)............ 400,890
71,710 Motorola, Inc. ....................................... 2,370,912
28,030 SCI Systems, Inc. (b)................................. 1,285,876
20,880 Texas Instruments, Inc. .............................. 1,225,395
33,665 Vishay Intertechnology, Inc. (b)...................... 1,041,511
------------
7,579,955
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
------- -------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Entertainment (2.8%)
41,398 Viacom, Inc., Class B (b)............................... $ 2,745,205
75,790 Walt Disney Co. ........................................ 2,932,126
------------
5,677,331
------------
Financial Services (12.4%)
129,730 Citigroup, Inc. ........................................ 9,154,072
39,910 MBNA Corp. ............................................. 1,331,996
55,370 Morgan Stanley Dean Witter & Co. ....................... 5,052,513
69,930 Stilwell Financial, Inc. (b)............................ 3,081,291
168,170 Wells Fargo Co. ........................................ 6,947,522
------------
25,567,394
------------
Insurance (3.7%)
87,540 American International Group, Inc. ..................... 7,676,164
------------
Insurance--Life & Health (1.1%)
44,150 AFLAC, Inc. ............................................ 2,293,041
------------
Manufacturing (2.9%)
46,470 Illinois Tool Works, Inc. .............................. 2,660,408
37,740 Minnesota Mining & Manufacturing Co. ................... 3,398,958
------------
6,059,366
------------
Medical Supplies (2.0%)
53,230 Baxter International, Inc. ............................. 4,138,633
------------
Metal & Mineral Production (0.7%)
28,280 Alcoa, Inc. ............................................ 855,470
20,800 Barrick Gold Corp. ..................................... 331,500
41,600 Placer Dome, Inc. ...................................... 353,600
------------
1,540,570
------------
Oil & Gas--Exploration & Production Services (14.5%)
37,650 Apache Corp. ........................................... 1,873,088
24,340 Chevron Corp. .......................................... 1,922,860
102,529 Exxon Mobil Corp. ...................................... 8,202,319
42,065 Global Marine, Inc. (b)................................. 1,190,965
39,000 Murphy Oil Corp. ....................................... 2,349,750
72,070 Royal Dutch Petroleum Co. .............................. 4,198,077
27,730 Santa Fe International Corp. ........................... 974,016
32,127 Schlumberger Ltd. ...................................... 2,375,390
63,820 Ultramar Diamond Shamrock Corp. ........................ 1,459,883
59,520 USX-Marathon Group...................................... 1,447,080
87,365 Williams Cos., Inc. .................................... 3,647,489
------------
29,640,917
------------
Paper Products (0.5%)
26,000 Temple-Inland, Inc. .................................... 1,129,375
------------
Pharmaceuticals (1.2%)
37,150 American Home Products Corp. ........................... 1,971,272
8,270 Bristol-Myers Squibb Co. ............................... 410,399
------------
2,381,671
------------
</TABLE>
Continued
61
<PAGE>
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
------- -------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Publishing (1.0%)
38,370 Gannett Co., Inc. ...................................... $ 2,067,184
------------
Raw Materials (1.2%)
132,300 USX--U.S. Steel Group................................... 2,373,131
------------
Real Estate (0.9%)
97,065 Healthcare Realty Trust, Inc. .......................... 1,929,167
------------
Restaurants (0.5%)
34,230 McDonald's Corp. ....................................... 1,078,245
------------
Retail (1.4%)
21,940 Lowe's Cos., Inc. ...................................... 925,594
70,740 Target Corp. ........................................... 2,051,460
------------
2,977,054
------------
Retail--General Merchandise (0.7%)
45,310 Costco Companies, Inc. ................................. 1,475,407
------------
Semiconductors (1.5%)
18,880 International Rectifier Corp. (b)....................... 1,044,300
24,540 LSI Logic Corp. (b)..................................... 831,293
18,490 Teradyne, Inc. (b)...................................... 1,171,803
------------
3,047,396
------------
Software & Computer Services (1.1%)
49,300 BMC Software, Inc. (b).................................. 930,538
76,150 FileNET Corp. (b)....................................... 1,351,662
------------
2,282,200
------------
Telecommunications--Services and Equipment (5.3%)
57,180 Alcatel, ADR............................................ 4,181,288
31,540 Global Crossing Ltd. (b)................................ 766,816
81,030 Nortel Networks Corp. .................................. 6,026,606
------------
10,974,710
------------
Tobacco & Tobacco Products (0.9%)
70,730 Philip Morris Cos., Inc. ............................... 1,785,933
------------
</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 purposes in excess of federal income tax
reporting of approximately $223,777. Cost for federal income tax purposes
differs from value by net unrealized appreciation of securities as
follows:
<TABLE>
<S> <C>
Unrealized
appreciation........... $ 27,823,739
Unrealized
depreciation........... (18,013,025)
------------
Net unrealized
appreciation........... $ 9,810,714
============
</TABLE>
(b) Non-income producing security.
ADR--American Depositary Receipt
NV--Naamloze Vennootschaap (Dutch Corp.)
<TABLE>
<CAPTION>
Shares Security Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Transportation (1.2%)
89,730 USFreightways Corp. .................................. $ 2,490,008
------------
Utilities--Electric (3.1%)
67,760 Duke Energy Corp. .................................... 4,179,945
47,310 FPL Group, Inc. ...................................... 2,282,708
------------
6,462,653
------------
Utilities--Gas (0.3%)
17,110 Kinder Morgan, Inc. .................................. 581,740
------------
Utilities--Telecommunications (8.3%)
60,340 ALLTEL Corp. ......................................... 3,718,452
80,364 AT&T Corp. ........................................... 2,486,254
57,380 Sprint Corp. ......................................... 2,044,163
121,621 Verizon Communications................................ 5,716,186
79,135 WorldCom, Inc. (b).................................... 3,091,211
------------
17,056,266
------------
Total Common Stocks (Cost $185,260,204) 195,177,613
------------
Depositary Receipts (3.0%)
36,500 S&P 500 Depositary Receipt............................ 5,217,219
10,000 S&P Mid Cap 400 Depositary Receipts................... 900,000
------------
Total Depositary Receipts (Cost $6,000,137) 6,117,219
------------
Investment Companies (2.3%)
4,733,893 The One Group Prime Money Market Fund (I Shares)...... 4,733,893
------------
Total Investment Companies (Cost $4,733,893) 4,733,893
------------
Total Investments (Cost $195,994,234) (a)--100.1% 206,028,725
Liabilities in excess of other assets--(0.1)% (289,919)
------------
Total Net Assets--100.0% $205,738,806
============
</TABLE>
See notes to financial statements.
62
<PAGE>
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
------- -------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks (98.1%)
Aerospace/Defense (2.8%)
6,900 Alliant Techsystems, Inc. (b)........................... $ 488,175
43,500 Kaman Corp. ............................................ 543,750
------------
1,031,925
------------
Agricultural Services (1.3%)
19,400 Delta & Pine Land Co. .................................. 485,000
------------
Airlines (2.0%)
41,800 Frontier Airlines, Inc. (b)............................. 749,788
------------
Apparel (3.2%)
35,100 Cato Corp. ............................................. 390,488
26,000 Kellwood Co. ........................................... 581,750
32,800 Steven Madden, Ltd. (b)................................. 243,950
------------
1,216,188
------------
Appliances (0.8%)
28,000 Applica, Inc. (b)....................................... 290,500
------------
Banks (9.2%)
33,500 Banknorth Group, Inc. .................................. 512,969
28,300 Colonial BancGroup, Inc. ............................... 304,225
16,500 Community Bank System, Inc. ............................ 365,063
19,666 F.N.B. Corp. ........................................... 400,695
13,100 First Essex Bancorp, Inc. .............................. 207,963
29,200 FirstMerit Corp. ....................................... 609,549
10,900 Greater Bay Bancorp..................................... 586,555
16,079 Imperial Bancorp (b).................................... 273,343
12,400 Parkvale Financial Corp. ............................... 210,800
------------
3,471,162
------------
Building & Construction (4.1%)
10,300 Ameron International Corp. ............................. 386,250
18,900 Beazer Homes USA, Inc. (b).............................. 398,081
19,200 NCI Building Systems, Inc. ............................. 362,400
20,300 Nortek, Inc. (b)........................................ 398,388
------------
1,545,119
------------
Building--Mobile Homes (0.6%)
25,500 National R.V. Holdings, Inc. (b)........................ 229,500
------------
Chemicals (5.0%)
36,920 Engelhard Corp. ........................................ 666,867
21,000 Ferro Corp. ............................................ 488,250
37,600 International Specialty Products, Inc. (b).............. 220,900
10,300 OM Group, Inc. ......................................... 488,606
------------
1,864,623
------------
Commercial Services (0.7%)
32,100 Boron, LePore & Associates, Inc. (b).................... 248,775
------------
Computers & Peripherals (3.3%)
20,300 Pomeroy Computer Resources, Inc. (b).................... 345,100
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Computers & Peripherals, continued
43,800 Splash Technology Holdings, Inc. (b)................ $ 297,019
13,200 Tech Data Corp. .................................... 587,400
------------
1,229,519
------------
Consumer Goods & Services (2.0%)
48,600 Central Garden & Pet Co. (b)........................ 358,425
12,400 Toro Co. ........................................... 373,550
------------
731,975
------------
Electrical Equipment (1.0%)
16,800 Emcor Group, Inc. (b)............................... 393,750
------------
Electronic & Electrical (1.1%)
31,900 Pioneer-Standard Electronics, Inc. ................. 430,650
------------
Electronic Components/Instruments (1.2%)
3,900 Advanced Energy Industries, Inc. (b)................ 175,500
9,075 Vishay Intertechnology, Inc. (b).................... 280,758
------------
456,258
------------
Gas Distribution (4.0%)
31,600 Energen Corp. ...................................... 710,999
10,200 NUI Corp. .......................................... 287,513
22,100 UGI Corp. .......................................... 495,869
------------
1,494,381
------------
Heavy Machinery--Industrial, Farm, Construction (1.0%)
9,900 NACCO Industries, Inc. ............................. 359,494
------------
Identification Systems (1.9%)
56,800 Paxar Corp. (b)..................................... 702,900
------------
Insurance (3.6%)
13,668 Delphi Financial Group, Inc. (b).................... 526,218
19,000 Enhance Financial Services Group, Inc. ............. 300,438
16,800 Reinsurance Group of America, Inc. ................. 534,450
------------
1,361,106
------------
Machinery--Farm (1.0%)
27,600 Gehl Co. ........................................... 376,050
------------
Manufacturing (1.6%)
39,900 Esterline Technologies Corp. (b).................... 588,525
------------
Medical Equipment and Supplies (4.0%)
23,900 ADAC Laboratories, Inc. (b)......................... 473,519
22,100 Aradigm Corp. (b)................................... 334,263
42,400 Owens & Minor, Inc. ................................ 678,399
------------
1,486,181
------------
Metal & Mineral Production (1.1%)
14,400 Mueller Industries, Inc. (b)........................ 418,500
------------
</TABLE>
Continued
63
<PAGE>
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Metals (0.6%)
12,700 Quanex Corp. ....................................... $ 228,600
------------
Oil & Gas--Exploration & Production Services (4.8%)
30,900 Gulf Island Fabrication, Inc. (b)................... 467,363
15,800 Noble Affiliates, Inc. ............................. 474,000
22,600 Swift Energy Co. (b)................................ 495,787
14,500 Valero Energy Corp. ................................ 376,094
------------
1,813,244
------------
Oilfield Equipment & Services (2.4%)
54,500 Newpark Resources, Inc. (b)......................... 453,031
25,700 Varco International, Inc. (b)....................... 443,325
------------
896,356
------------
Paper Products (1.1%)
42,000 P.H. Glatfelter and Co. ............................ 425,250
------------
Real Estate (9.2%)
13,900 CarrAmerica Realty Corp. ........................... 415,262
7,700 Centerpoint Properties Corp. ....................... 327,250
12,000 Colonial Properties Trust........................... 332,250
20,300 Glimcher Realty Trust............................... 303,231
12,200 Golf Trust of America, Inc. ........................ 190,625
31,000 Innkeepers USA Trust................................ 321,625
13,900 Macerich Co. ....................................... 332,731
13,200 Manufactured Home Communities, Inc. ................ 316,800
11,600 Shurgard Storage Centers, Inc. ..................... 276,950
16,100 Summit Properties, Inc. ............................ 384,388
27,100 Taubman Centers, Inc. .............................. 304,875
------------
3,505,987
------------
Retail (1.6%)
17,700 Neiman-Marcus Group, Inc., Class A (b).............. 584,100
------------
Savings & Loans (1.3%)
17,000 Astoria Financial Corp. ............................ 495,125
------------
Semiconductors (0.8%)
6,400 Kulicke and Soffa Industries, Inc. (b).............. 288,800
------------
Shipbuilding (1.9%)
17,800 Newport News Shipbuilding, Inc. .................... 718,675
------------
Software & Computer Services (4.3%)
13,300 Braun Consulting, Inc. (b).......................... 287,613
31,100 Deltek Systems, Inc. (b)............................ 186,600
12,300 eLoyalty Corp. (b).................................. 182,578
20,600 Great Plains Software, Inc. (b)..................... 481,524
</TABLE>
--------
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation. $ 5,216,050
Unrealized depreciation. (4,461,229)
-----------
Net unrealized
appreciation............ $ 754,821
===========
</TABLE>
(b) Non-income producing security.
<TABLE>
<CAPTION>
Shares Security Description Market Value
------- ------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Software & Computer Services, continued
6,600 iGATE Capital Corp. (b)................................ $ 62,288
34,500 Quantum Corp.--Digital Linear
Tape & Storage Systems Group (b)...................... 405,375
------------
1,605,978
------------
Steel (0.6%)
20,966 AK Steel Holding Corp. ................................ 210,970
------------
Technology--Services (Data Processing) (1.5%)
12,400 SPS Technologies, Inc. (b)............................. 556,450
------------
Telecommunications (1.1%)
20,400 RSL Communications Ltd. (b)............................ 109,650
21,500 Viatel, Inc. (b)....................................... 299,656
------------
409,306
------------
Telecommunications--Services and Equipment (1.8%)
37,300 Brightpoint, Inc. (b).................................. 202,819
22,000 Price Communications Corp. (b)......................... 489,500
------------
692,319
------------
Tobacco & Tobacco Products (1.1%)
18,200 Universal Corp. ....................................... 403,813
------------
Transportation (2.2%)
29,700 Arkansas Best Corp. (b)................................ 421,368
22,100 Heartland Express, Inc. (b)............................ 395,038
------------
816,406
------------
Utilities--Electric (3.7%)
15,200 Alliant Energy Corp. .................................. 399,950
14,600 IDACORP, Inc. ......................................... 540,200
30,800 Sierra Pacific Resources............................... 435,050
------------
1,375,200
------------
Wholesale Distribution (1.6%)
45,500 Handleman Co. (b)...................................... 594,344
------------
Total Common Stocks (Cost $36,027,971) 36,782,792
------------
Investment Companies (2.4%)
896,203 The One Group Prime Money Market Fund (I Shares)....... 896,203
------------
Total Investment Companies (Cost $896,203) 896,203
------------
Total Investments (Cost $36,924,174)
(a)--100.5% 37,678,995
Liabilities in excess of other assets--(0.5)% (172,241)
------------
Total Net Assets--100.0% $ 37,506,754
============
</TABLE>
See notes to financial statements.
64
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments
July 31, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (61.1%)
Airlines (0.4%)
34,150 Southwest Airlines Co. ................................ $ 806,794
-----------
Automotive (0.6%)
26,440 Ford Motor Co. ........................................ 1,231,113
-----------
Banking (1.8%)
19,288 Bank of America Corp. ................................. 913,769
40,560 Chase Manhattan Corp. ................................. 2,015,325
28,550 FleetBoston Financial Corp. ........................... 1,022,447
-----------
3,951,541
-----------
Beverages (1.3%)
13,610 Anheuser Busch Cos, Inc. .............................. 1,095,605
39,880 PepsiCo, Inc. ......................................... 1,827,003
-----------
2,922,608
-----------
Business Equipment & Services (1.9%)
58,980 Deluxe Corp. .......................................... 1,268,070
39,762 Paychex, Inc. ......................................... 1,819,111
28,510 Pitney Bowes, Inc. .................................... 987,159
-----------
4,074,340
-----------
Computers & Peripherals (7.6%)
102,342 Cisco Systems, Inc. (b)................................ 6,697,004
54,920 EMC Corp. (b).......................................... 4,675,064
34,290 Sun Microsystems, Inc. (b)............................. 3,615,452
30,610 Symbol Technologies, Inc. ............................. 1,220,574
-----------
16,208,094
-----------
Consumer Goods & Services (0.6%)
13,240 Clorox Co. ............................................ 546,978
14,200 Procter & Gamble Co. .................................. 807,625
-----------
1,354,603
-----------
Diversified Operations (2.9%)
12,880 Corning, Inc. ......................................... 3,013,115
61,350 Tyco International, Ltd. .............................. 3,282,225
-----------
6,295,340
-----------
Electrical & Electronic (4.3%)
23,350 Lernout & Hauspie Speech Products N.V. (b)............. 726,769
30,870 Sanmina Corp. (b)...................................... 2,867,051
68,170 Texas Instruments, Inc. ............................... 4,000,727
55,680 Vishay Intertechnology, Inc. (b)....................... 1,722,600
-----------
9,317,147
-----------
Electrical Equipment (4.8%)
36,950 American Power Conversion Corp. (b).................... 939,916
46,830 General Electric Co. .................................. 2,408,817
26,520 KLA-Tencor Corp. (b)................................... 1,412,190
44,480 Motorola, Inc. ........................................ 1,470,620
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Electrical Equipment, continued
55,490 Solectron Corp. (b).................................... $ 2,236,941
30,760 Teradyne, Inc. (b)..................................... 1,949,415
-----------
10,417,899
-----------
Entertainment (0.4%)
11,490 Time Warner, Inc. ..................................... 881,139
-----------
Financial Services (5.7%)
43,170 Capital One Financial Corp. ........................... 2,530,841
37,260 Charles Schwab Corp. .................................. 1,346,018
41,940 Morgan Stanley Dean Witter & Co. ...................... 3,827,025
85,420 Stilwell Financial, Inc. (b)........................... 3,763,819
30,563 Washington Mutual, Inc. ............................... 981,836
-----------
12,449,539
-----------
Insurance (1.8%)
31,278 American International Group, Inc. .................... 2,742,690
9,945 Marsh & McLennan Cos., Inc. ........................... 1,213,290
-----------
3,955,980
-----------
Leisure--Recreation, Gaming (0.3%)
40,530 Carnival Corp. ........................................ 757,404
-----------
Medical Supplies (0.3%)
9,440 Baxter International, Inc. ............................ 733,960
-----------
Medical--Biotechnology (1.9%)
30,480 Amgen, Inc. (b)........................................ 1,979,295
25,700 PE Biosystems Group.................................... 2,240,719
-----------
4,220,014
-----------
Oil & Gas--Exploration & Production Services (1.7%)
26,020 Exxon Mobil Corp. ..................................... 2,081,599
10,630 Schlumberger Ltd. ..................................... 785,956
34,460 Ultramar Diamond Shamrock Corp. ....................... 788,273
-----------
3,655,828
-----------
Pharmaceuticals (4.7%)
14,270 Bristol-Myers Squibb Co. .............................. 708,149
42,350 Elan Corp. PLC, ADR (b)................................ 2,263,077
8,260 Johnson & Johnson, Inc. ............................... 768,696
16,800 Lilly (Eli) & Co. ..................................... 1,745,100
16,420 Merck & Co., Inc. ..................................... 1,177,109
34,816 Pfizer Inc. ........................................... 1,501,440
48,920 Schering-Plough Corp. ................................. 2,112,733
-----------
10,276,304
-----------
Publishing (0.8%)
30,370 McGraw-Hill Cos., Inc. ................................ 1,805,117
-----------
Real Estate (0.5%)
20,000 Franchise Finance Corp. of America..................... 480,000
30,330 Healthcare Realty Trust, Inc. ......................... 602,809
-----------
1,082,809
-----------
</TABLE>
Continued
65
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Restaurants (0.8%)
18,790 McDonald's Corp. .................................... $ 591,885
30,320 Starbucks Corp. (b).................................. 1,137,000
-----------
1,728,885
-----------
Retail (4.4%)
52,160 Costco Wholesale Corp. (b)........................... 1,698,460
34,578 Gap, Inc. ........................................... 1,238,325
14,980 Kohl's Corp. (b)..................................... 850,115
35,660 Lowe's Cos., Inc. ................................... 1,504,406
48,010 Pacific Sunwear of California, Inc. (b).............. 726,151
62,340 Wal-Mart Stores, Inc. ............................... 3,424,804
-----------
9,442,261
-----------
Retail-Food Chain (0.8%)
36,640 Safeway, Inc. (b).................................... 1,651,090
-----------
Semiconductors (1.0%)
19,650 Applied Materials, Inc. (b).......................... 1,490,944
9,090 Xilinx, Inc. (b)..................................... 682,318
-----------
2,173,262
-----------
Software & Computer Services (3.1%)
24,010 America Online, Inc. (b)............................. 1,280,033
31,550 BMC Software, Inc. (b)............................... 595,506
19,760 Computer Associates International, Inc. ............. 490,295
73,190 Compuware Corp. (b).................................. 585,520
25,310 Microsoft Corp. (b).................................. 1,766,954
25,510 Oracle Corp. (b)..................................... 1,918,034
-----------
6,636,342
-----------
Telecommunications--Services and Equipment (6.4%)
48,210 ALLTEL Corp. ........................................ 2,970,941
77,240 Nortel Networks Corp. ............................... 5,744,724
34,200 Tellabs, Inc. (b).................................... 2,223,000
12,932 Verizon Communications............................... 607,804
54,050 Worldcom, Inc. (b)................................... 2,111,328
-----------
13,657,797
-----------
Transportation (0.3%)
22,850 USFreightways Corp. ................................. 634,088
-----------
Total Common Stocks (Cost $94,339,825) 132,321,298
-----------
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............................. 1,290,692
-----------
Total Asset Backed Securities (Cost $1,285,035) 1,290,692
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (14.9%)
Automotive (0.5%)
1,000,000 Daimlerchrysler NA Holding Corp., 7.40%, 1/20/05..... $ 995,000
-----------
Banking (0.9%)
900,000 Interamerica Development Bank, 8.50%, 3/15/11........ 990,000
1,075,000 Interamerica Development Bank, 6.80%, 10/15/25....... 1,029,313
-----------
2,019,313
-----------
Banking--Foreign (0.1%)
325,000 Bayerische Landesbank-NY, 6.20%, 2/9/06, Callable
2/9/03 @ 100........................................ 307,125
-----------
Entertainment (0.9%)
2,000,000 Walt Disney Co., 5.13%, 12/15/03..................... 1,880,000
-----------
Financial Services (7.4%)
1,000,000 Federal Home Loan Bank, 6.03%, 11/06/02.............. 982,360
500,000 Ford Motor Credit Co., 6.13%, 4/28/03................ 483,750
1,000,000 Ford Motor Credit Co., 7.50%, 3/15/05................ 996,250
2,000,000 Ford Motor Credit Co., 5.80%, 1/12/09................ 1,747,500
2,000,000 Freddie Mac, 5.00%, 1/15/04.......................... 1,881,860
2,000,000 Freddie Mac, 7.00%, 3/15/10.......................... 1,981,279
515,000 JP Morgan & Co., 7.25%, 1/15/02...................... 514,356
1,300,000 JP Morgan & Co., 6.25%, 1/15/09...................... 1,173,250
2,000,000 Merrill Lynch & Co., 6.00%, 2/12/03.................. 1,942,500
1,000,000 Merrill Lynch & Co.,
6.55%, 8/1/04....................................... 967,500
1,200,000 Merrill Lynch & Co., 6.00%, 2/17/09.................. 1,072,500
1,000,000 Norwest Financial, Inc., 6.38%, 11/15/03............. 973,750
1,511,084 Small Business Administration Corp., 6.70%, 3/1/16... 1,454,712
-----------
16,171,567
-----------
Food--Distibution (0.5%)
1,000,000 Sysco Corp., 6.50%, 6/15/05.......................... 977,500
-----------
Food Processing & Packaging (0.2%)
500,000 Campbell Soup Co., 5.63%, 9/15/03, Callable 9/15/00 @
100................................................. 481,250
-----------
Household Products (1.4%)
3,000,000 Procter & Gamble Co., 6.60%, 12/15/04................ 2,943,749
-----------
</TABLE>
Continued
66
<PAGE>
PACIFIC CAPITAL FUNDS
Balanced Fund
Schedule of Portfolio Investments, Continued
July 31, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds, continued
Insurance (0.4%)
900,000 GE Global Insurance Corp., 7.75%, 6/15/30............. $ 906,750
-----------
Machinery--Electrical (0.6%)
1,250,000 Emerson Electric Co.,
7.875%, 6/1/05....................................... 1,287,500
-----------
Pharmaceuticals (1.1%)
1,467,000 Lilly (Eli) & Co., 6.25%, 3/15/03..................... 1,448,663
1,000,000 Warner-Lambert Co., 6.63%, 9/15/02.................... 993,750
-----------
2,442,413
-----------
Retail (0.5%)
1,000,000 Wal-Mart Stores, Inc.,
7.50%, 5/15/04....................................... 1,017,500
-----------
Telecommunications--Services and Equipment (0.4%)
1,000,000 Pacific Bell, 6.25%, 3/1/05........................... 961,250
-----------
Total Corporate Bonds (Cost $33,392,522) 32,390,917
-----------
Medium Term/Senior Notes (1.8%)
Chemicals (1.8%)
4,000,000 E.I. du Pont de Nemours & Co., 6.00%, 3/6/13, Callable
3/6/03 @ 100......................................... 3,915,000
-----------
Total Medium Term/Senior Notes (Cost $4,100,405) 3,915,000
-----------
U.S. Government Agencies (5.8%)
Federal Farm Credit Bank (0.4%)
800,000 8.00%, 11/23/05....................................... 798,000
-----------
Federal Home Loan Bank (1.3%)
1,000,000 6.75%, 5/01/02........................................ 997,630
1,675,000 7.63%, 5/14/10........................................ 1,731,531
-----------
2,729,161
-----------
Federal National Mortgage Association (1.2%)
1,000,000 5.75%, 6/15/05........................................ 950,440
2,000,000 6.00%, 5/15/08........................................ 1,871,781
-----------
2,822,221
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
U.S. Government Agencies, continued
Financial Services (0.5%)
1,000,000 Private Export Funding, 5.50%, 3/15/01................ $ 992,500
------------
Student Loan Marketing Association (1.2%)
2,610,000 6.69%*, 7/25/01....................................... 2,610,104
------------
Tennessee Valley Authority (1.2%)
3,000,000 5.38%, 11/13/08....................................... 2,674,920
------------
Total U.S. Government Agencies (Cost $13,297,070) 12,626,906
------------
U.S. Treasury Bonds (8.0%)
950,000 9.38%, 2/15/06........................................ 1,087,750
2,000,000 10.00%, 5/15/10....................................... 2,289,360
295,000 12.00%, 8/15/13....................................... 398,156
3,455,000 7.25%, 5/15/16........................................ 3,842,582
6,345,000 7.13%, 2/15/23........................................ 7,138,125
2,600,000 6.25%, 8/15/23........................................ 2,654,418
------------
Total U.S. Treasury Bonds (Cost $16,906,581) 17,410,391
------------
U.S. Treasury Notes (3.8%)
1,400,000 5.50%, 12/31/00....................................... 1,394,302
1,480,000 6.25%, 2/15/03........................................ 1,477,218
2,800,000 7.25%, 5/15/04........................................ 2,891,868
2,500,000 6.50%, 5/15/05........................................ 2,528,900
------------
Total U.S. Treasury Notes (Cost $8,181,991) 8,292,288
------------
Depositary Receipts (1.6%)
23,550 S&P 500 Depositary Receipt............................ 3,366,178
------------
Total Depositary Receipts (Cost $3,203,710) 3,366,178
------------
Investment Company (1.6%)
3,509,291 The One Group Prime Money Market Fund (I Shares)...... 3,509,291
------------
Total Investment Company (Cost $3,509,291) 3,509,291
------------
Total Investments (Cost $178,216,430) (a)--99.2% 215,122,961
Other assets in excess of liabilities--0.8% 1,763,322
------------
Total Net Assets--100.0% $216,886,283
============
</TABLE>
--------
* Variable rate security. Rate represented represents rate in effect at July
31, 2000. Maturity reflects final maturity date.
(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 purposes in excess of federal income tax reporting
of approximately $25,326. Cost for federal income tax purposes differs
from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.. $ 49,684,871
Unrealized depreciation.. (12,803,666)
------------
Net unrealized
appreciation............. $ 36,881,205
============
</TABLE>
(b) Non-income producing security.
ADR--American Depositary Receipt
NV--Naamloze Vennootschaap (Dutch Corp.)
PLC--Public Limited Company
See notes to financial statements.
67
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements
July 31, 2000
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, Ultra Short Government Fund, Short Intermediate
U.S. Treasury Securities Fund, Growth and Income Fund, Diversified Fixed
Income Fund, Tax-Free Securities Fund, Tax-Free Short Intermediate
Securities Fund, New Asia Growth Fund, International Stock Fund, Value Fund,
Small Cap Fund, and Balanced Fund. 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 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, 2000, 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. As of July 31, 2000,
the Ultra Short Government Fund has issued only Class Y shares. Each class
of shares for each Fund has identical rights and privileges except with
respect to sales charges, 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. Ultra Short
Government 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.Reorganization
The Trust entered an agreement and plan of reorganization and termination
pursuant to which all of the assets and liabilities of the Pacific Capital
U.S. Treasury Securities Fund were transferred to the Pacific Capital
Diversified Fixed Income Fund of the Trust. The reorganization, which
qualified as a tax-free exchange for federal income tax purposes, was
completed on July 10, 2000, following approval by shareholders of the U.S.
Treasury Securities Fund, at a special shareholder meeting held on July 7,
2000.
Continued
68
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
The following is a summary of shares outstanding, net assets, net asset
value per share and net unrealized appreciation (depreciation) immediately
before and after the reorganization:
<TABLE>
<CAPTION>
Before Reorganization After Reorganization
--------------------------------- --------------------
Pacific Capital Pacific Capital Pacific Capital
Diversified Fixed U.S. Treasury Diversified Fixed
Income Fund Securities Fund Income Fund
----------------- --------------- --------------------
<S> <C> <C> <C>
Class A Shares............... 235,981 170,684 389,072
Class B Shares............... 265,973 -- 265,973
Class Y Shares............... 23,019,793 520,032 23,484,397
------------ ----------- ------------
Total Shares................. 23,521,747 690,716 24,139,442
Class A Net Assets........... $ 2,411,552 $ 1,566,494 $ 3,978,046
Class B Net Assets........... 2,713,860 -- 2,713,860
Class Y Net Assets........... 236,730,110 4,776,157 241,506,267
------------ ----------- ------------
Total Net Assets............. $241,855,522 $ 6,342,651 $248,198,173
Net Asset Value
Class A Shares............... $ 10.22 $ 9.18 $ 10.22
Class B Shares............... $ 10.20 -- $ 10.20
Class Y Shares............... $ 10.28 $ 9.18 $ 10.28
Unrealized
Appreciation/(Depreciation). $ (857,507) $ 144,256 $ (713,251)
Accumulated Net Realized
Losses...................... $ (8,615,003) $(3,280,986) $(11,895,989)
</TABLE>
3.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 are valued at last reported sale
price on the day of valuation. In the absence of any sale of such securities
on the valuation date, the valuations are based on the mean of the latest
quoted bid and asked prices. Securities, including thinly traded, unlisted,
and restricted securities, for which market quotations are not readily
available, are valued at fair market value by The Asset Management Group of
Bank of Hawaii (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 either
amortized cost, which approximates market value, or at original cost which
combined with accrued interest, approximates market value. Under the
amortized cost valuation method, the discount or premium is amortized on a
constant basis to the maturity of the security. In addition, money market
funds may not (a) purchase any instrument with a remaining maturity greater
then 397 days unless such instrument is subject to a demand feature within
397 days, or (b) maintain a dollar-weighted-average portfolio maturity which
exceeds 90 days. 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 held by the variable net asset value funds are reflected as
either unrealized appreciation or depreciation.
Securities Transactions and Related Income:
Securities transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the accrual
basis and includes, where applicable, the pro rata amortization of premium
or accretion of
Continued
69
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
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 accounting records of the Trust are maintained in U.S. dollars.
Investment securities and other assets and liabilities of the New Asia
Growth Fund and International Stock Fund denominated in a foreign currency
are translated into U.S. dollars at current exchange rates. Purchases and
sales of securities, income receipts and expense payments are translated
into U.S. dollars at the exchange rate on the date of the transactions.
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.
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.
Forward Currency Exchange Contracts:
The New Asia Growth Fund and International Stock Fund may from time to time
enter into foreign currency exchange contracts to convert U.S. dollars to
and from various foreign currencies. A foreign exchange contract is an
obligation by a Fund to purchase or sell a specific foreign currency at a
future date at a price (in U.S. dollars) set at the time of the contract.
The Fund does not engage in "cross" currency foreign exchange contracts
(i.e., contracts to purchase or sell one foreign currency in exchange for
another foreign currency). The Fund's foreign currency contracts might be
considered spot (typically a contract of one week or less) contract or
forward (contract length over one week) contracts. Spot contracts are
entered into for purposes of hedging against foreign currency fluctuations
relating to a specific portfolio transaction, such as the delay between a
security transaction trade date and settlement date. Forward contracts are
entered into for purposes of hedging portfolio holdings or concentrations of
such holdings. These Funds enter into foreign currency exchange contracts
solely for spot or forward hedging purposes, and not for speculative
purposes (i.e., these Funds do not enter into such contracts for the purpose
of earning foreign currency gains). Foreign currency exchange contracts are
adjusted daily by the prevailing spot or forward 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 is
unable to meet the terms of a forward foreign exchange currency contract or
if the value of the foreign currency changes unfavorably.
Continued
70
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
Securities Purchased on a When-Issued Basis 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. In the case of when-issued securities, the Funds do not accrue
interest or dividends 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 Ultra Short Government 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 Balanced Fund. Dividends from net
investment income are declared and paid quarterly for the Growth Stock Fund,
Growth and Income Fund, Value Fund, 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.
Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies as defined in applicable sections of the Internal
Revenue Code, and to make distributions from net investment income and from
net realized gains sufficient to relieve it from all, or substantially all,
federal income taxes. Withholding taxes on foreign dividends have been paid
or provided for in accordance with the applicable country's tax rules and
rates.
Continued
71
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
Concentration of Credit Risk:
The Tax-Free Securities Fund and the Tax-Free Short Intermediate Securities
Fund have a majority of their investments in the securities of issuers in
Hawaii. Such concentration may subject the Fund to the effects of economic
changes occurring within that State.
Other:
Expenses that are directly related to one Fund are charged directly to that
Fund. Other operating expenses for the Funds or the Trust are prorated to
the Funds on the basis of relative net assets or on other appropriate bases.
Under the provisions of Statement of Position (SOP) 98-5, "Reporting on the
Costs of Start-Up Activities", costs associated with organizing a portfolio
which commences operations subsequent to June 30, 1998 must be expensed as
incurred and may not be amortized over future periods. Accordingly, costs
incurred in connection with the organization of the Ultra Short Government
Fund, which commenced operations on June 1, 2000, were paid by the Adviser.
Additionally, the Fund also incurred certain offering costs such as
registration and prospectus fees, in connection with the organization. These
offering costs were deferred and are being amortized on a straight-line
basis over one year from the commencement of operations.
4.Purchases and Sales of Securities
Purchases and sales of securities (excluding short-term securities) for the
year ended July 31, 2000 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Growth Stock Fund................................... $565,553,721 $617,954,853
Growth and Income Fund.............................. 120,122,822 120,311,919
New Asia Growth Fund................................ 49,663,747 43,262,607
Diversified Fixed Income Fund....................... 232,352,372 188,359,627
Ultra Short Government Fund......................... 26,713,994 --
Short Intermediate U.S. Treasury Securities Fund.... 14,142,663 15,535,609
Tax-Free Securities Fund............................ 98,987,340 92,055,005
Tax-Free Short Intermediate Securities Fund......... 17,835,112 22,260,538
International Stock Fund............................ 239,466,621 228,135,692
Value Fund.......................................... 242,198,248 200,554,782
Small Cap Fund...................................... 38,916,097 34,642,564
Balanced Fund....................................... 104,561,145 107,061,302
</TABLE>
5. Related Party Transactions
Investment advisory services are provided to the Trust by 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. CMG First State LLC is the
Sub-Adviser to the New Asia Growth Fund. Their fees are paid by the Adviser
out of its investment advisory fees. All sub-advisory fees are borne by the
Adviser and not the Funds.
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.
Continued
72
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
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 which will not 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 and Diversified Fixed Income 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 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, 2000, BISYS, as the Trust's principal
underwriter, received approximately $1,399,932 from commissions on sales of
Class A and Class B shares, of which $1,396,912 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.
Information regarding these transactions for year ended July 31, 2000 is as
follows:
<TABLE>
<CAPTION>
Investment Advisory Fees
--------------------------- 12b-1 Fees
Annual Fee as a Administration Voluntarily Other
Percentage of Fees Fees Reduced-- Expenses Total Fees
Average Daily Voluntarily Voluntarily Retail Voluntarily Voluntarily
Net Assets Reduced Reduced Class Reimbursed Reduced
--------------- ----------- -------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Growth Stock Fund....... 0.80% $ -- $207,937 $127,906 $ -- $335,843
Growth and Income Fund.. 0.80% -- 82,744 54,013 -- 136,757
New Asia Growth Fund.... 0.90% -- 13,336 14,381 -- 27,717
Diversified Fixed Income
Fund................... 0.60% 352,337 93,956 10,794 -- 457,087
Ultra Short Gov't Fund.. 0.40% 15,720 6,040 -- 13,592 35,352
Short Intermediate U.S.
Treasury Securities
Fund................... 0.50% 59,546 14,886 2,434 -- 76,866
Tax-Free Securities
Fund................... 0.60% 641,203 170,986 29,631 -- 841,820
Tax-Free Short
Intermediate Securities
Fund................... 0.50% 44,799 22,399 5,501 -- 72,699
International Stock
Fund................... 1.10% 112,550 45,021 14,769 -- 172,340
Value Fund.............. 0.80% -- 72,059 3,037 -- 75,096
Small Cap Fund.......... 1.10% 36,147 14,459 818 -- 51,424
Balanced Fund........... 0.80% 202,824 81,131 870 -- 284,825
</TABLE>
Continued
73
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.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, 2000 July 31, 2000
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............ $ 10,161,866 529,690 $ 2,304,193 110,052
Dividends reinvested..... 4,644,321 272,394 1,230,229 64,817
Shares redeemed.......... (4,478,388) (230,122) (1,887,654) (94,811)
------------- ---------- ------------ ----------
Net Change............... $ 10,327,799 571,962 $ 1,646,768 80,058
============= ========== ============ ==========
Class B:
Shares issued............ $ 15,235,053 802,212 $ 5,811,607 290,511
Dividends reinvested..... 3,077,285 183,391 1,221,362 65,418
Shares redeemed.......... (1,428,995) (73,901) (1,019,147) (52,048)
------------- ---------- ------------ ----------
Net Change............... $ 16,883,343 911,702 $ 6,013,822 303,881
============= ========== ============ ==========
Class Y:
Shares issued............ $ 102,210,921 5,295,053 $ 66,293,258 3,299,945
Dividends reinvested..... 91,624,383 5,323,903 16,518,785 869,389
Shares redeemed.......... (138,554,765) (7,118,890) (63,425,450) (3,098,956)
------------- ---------- ------------ ----------
Net Change............... $ 55,280,539 3,500,066 $ 19,386,593 1,070,378
============= ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A:
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 Change............... $ 3,530,848 222,193 $ 2,567,272 148,384
============= ========== ============ ==========
Class B:
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 Change............... $ 8,530,911 495,732 $ 6,005,882 325,938
============= ========== ============ ==========
Class Y:
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 Change............... $ 5,682,705 698,736 $ (9,367,855) (433,243)
============= ========== ============ ==========
</TABLE>
Continued
74
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.Capital Share Transactions (continued):
<TABLE>
<CAPTION>
Diversified Fixed
New Asia Growth Fund Income Fund
------------------------ ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 2000 July 31, 2000
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............ $ 330,949 24,298 $ 2,354,103 232,290
Shares issued in connec-
tion with acquisition... -- -- 1,566,494 153,091
Dividends reinvested..... -- -- 120,823 11,846
Shares redeemed.......... (444,028) (33,161) (992,336) (97,713)
------------ ---------- ------------ ----------
Net Change............... $ (113,079) (8,863) $ 3,049,084 299,514
============ ========== ============ ==========
Class B:
Shares issued............ $ 506,140 38,522 $ 1,140,533 112,033
Dividends reinvested..... -- -- 107,902 10,611
Shares redeemed.......... (20,390) (1,488) (534,982) (52,563)
------------ ---------- ------------ ----------
Net Change............... $ 485,750 37,034 $ 713,453 70,081
============ ========== ============ ==========
Class Y:
Shares issued............ $ 17,655,099 1,349,024 $131,652,084 12,775,443
Shares issued in connec-
tion with acquisition... -- -- 4,776,157 464,604
Dividends reinvested..... -- -- 397,491 38,864
Shares redeemed.......... (10,814,954) (806,816) (91,388,862) (8,901,167)
------------ ---------- ------------ ----------
Net Change............... $ 6,840,145 542,208 $ 45,436,870 4,377,744
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
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 Change............... $ (154,400) (29,099) $ 883,240 77,367
============ ========== ============ ==========
Class B:
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 Change............... $ 181,194 19,145 $ 1,937,995 178,747
============ ========== ============ ==========
Class Y:
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 Change............... $ (5,773,590) (781,528) $ 50,703,832 4,628,710
============ ========== ============ ==========
</TABLE>
Continued
75
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.Capital Share Transactions (continued):
<TABLE>
<CAPTION>
Short Intermediate
U.S. Treasury Tax-Free Securities
Securities Fund Fund
------------------------ ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 2000 July 31, 2000
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............. $ 140,026 15,136 $ 4,756,853 465,219
Dividends reinvested...... 23,014 2,473 221,378 21,845
Shares redeemed........... (298,564) (32,057) (2,858,517) (280,441)
------------ ---------- ------------ ----------
Net Change................ $ (135,524) (14,448) $ 2,119,714 206,623
============ ========== ============ ==========
Class B:
Shares issued............. $ -- -- $ 1,746,751 169,727
Dividends reinvested...... -- -- 80,304 7,935
Shares redeemed........... -- -- (760,001) (75,166)
------------ ---------- ------------ ----------
Net Change................ $ -- -- $ 1,067,054 102,496
============ ========== ============ ==========
Class Y:
Shares issued............. $ 20,166,904 2,166,316 $ 63,290,883 6,225,857
Dividends reinvested...... 279,537 29,969 1,946,719 191,600
Shares redeemed........... (21,007,827) (2,252,424) (48,975,524) (4,815,249)
------------ ---------- ------------ ----------
Net Change................ $ (561,386) (56,139) $ 16,262,078 1,602,208
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............. $ 134,779 13,856 $ 4,679,423 430,260
Dividends reinvested...... 33,944 3,482 138,960 12,829
Shares redeemed........... (211,156) (22,095) (2,904,688) (267,873)
------------ ---------- ------------ ----------
Net Change................ $ (42,433) (4,757) $ 1,913,695 175,216
============ ========== ============ ==========
Class B:
Shares issued............. $ -- -- $ 1,510,276 141,343
Dividends reinvested...... -- -- 10,908 1,012
Shares redeemed........... -- -- -- --
------------ ---------- ------------ ----------
Net Change................ $ -- -- $ 1,521,184 142,355
============ ========== ============ ==========
Class Y:
Shares issued............. $ 68,319,253 7,087,034 $ 59,458,110 5,480,924
Dividends reinvested...... 166,348 16,959 3,625,344 330,518
Shares redeemed........... (59,322,193) (6,145,812) (41,845,285) (3,836,063)
------------ ---------- ------------ ----------
Net Change................ $ 9,163,408 958,181 $ 21,238,169 1,975,379
============ ========== ============ ==========
</TABLE>
Continued
76
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.Capital Share Transactions (continued):
<TABLE>
<CAPTION>
Tax-Free
Short Intermediate International Stock
Securities Fund Fund
------------------------ ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 2000 July 31, 2000
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............. $ 1,042,383 106,409 $ 4,311,321 297,940
Dividends reinvested...... 42,562 4,353 90,551 5,973
Shares redeemed........... (504,109) (51,233) (395,107) (26,264)
------------ ---------- ------------ ----------
Net Change................ $ 580,836 59,529 $ 4,006,765 277,649
============ ========== ============ ==========
Class B:
Shares issued............. $ -- -- $ 1,166,445 76,371
Dividends reinvested...... -- -- 7,777 518
Shares redeemed........... -- -- (26,307) (1,716)
------------ ---------- ------------ ----------
Net Change................ $ -- -- $ 1,147,915 75,173
============ ========== ============ ==========
Class Y:
Shares issued............. $ 5,469,372 556,234 $ 37,832,814 2,532,200
Dividends reinvested...... 227,973 23,118 3,119,207 205,617
Shares redeemed........... (11,548,104) (1,173,174) (30,128,572) (1,979,434)
------------ ---------- ------------ ----------
Net Change................ $ (5,850,759) (593,822) $ 10,823,449 758,383
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------ ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............. $ 1,030,350 101,503 $ 282,595 24,417
Dividends reinvested...... 28,507 2,811 -- --
Shares redeemed........... (641,337) (63,375) (26,328) (2,297)
------------ ---------- ------------ ----------
Net Change................ $ 417,520 40,939 $ 256,267 22,120
============ ========== ============ ==========
Class B:
Shares issued............. $ -- -- $ 97,091 8,590
Dividends reinvested...... -- -- -- --
Shares redeemed........... -- -- -- --
------------ ---------- ------------ ----------
Net Change................ $ -- -- $ 97,091 8,590
============ ========== ============ ==========
Class Y:
Shares issued............. $ 15,798,971 1,548,401 $ 89,796,240 8,595,103
Dividends reinvested...... 224,619 21,933 -- --
Shares redeemed........... (19,807,705) (1,945,131) (19,338,966) (1,815,482)
------------ ---------- ------------ ----------
Net Change................ $ (3,784,115) (374,797) $ 70,457,274 6,779,621
============ ========== ============ ==========
</TABLE>
Continued
77
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.Capital Share Transactions (continued):
<TABLE>
<CAPTION>
Value Fund Small Cap Fund
------------------------- ------------------------
Amount Shares Amount Shares
------------ ---------- ------------ ----------
For the Year Ended For the Year Ended
July 31, 2000 July 31, 2000
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............ $ 1,312,097 122,241 $ 259,811 25,771
Dividends reinvested..... 8,535 831 4,887 517
Shares redeemed.......... (153,547) (13,980) (33,237) (3,267)
------------ ---------- ------------ ----------
Net Change............... $ 1,167,085 109,092 $ 231,461 23,021
============ ========== ============ ==========
Class B:
Shares issued............ $ 590,313 56,351 $ 134,998 13,585
Dividends reinvested..... 7,247 724 4,654 501
Shares redeemed.......... (76,571) (7,213) (10,297) (1,010)
------------ ---------- ------------ ----------
Net Change............... $ 520,989 49,862 $ 129,355 13,076
============ ========== ============ ==========
Class Y:
Shares issued............ $ 96,333,244 9,141,064 $ 24,392,681 2,457,056
Proceeds from shares is-
sued in conjunction with
common trust fund con-
version................. 87,055,807 8,386,879 -- --
Dividends reinvested..... 1,490,540 148,290 581,462 61,883
Shares redeemed.......... (63,276,022) (6,008,856) (19,589,973) (1,951,537)
------------ ---------- ------------ ----------
Net Change............... $121,603,569 11,667,377 $ 5,384,170 567,402
============ ========== ============ ==========
<CAPTION>
For the Year Ended For the Year Ended
July 31, 1999 July 31, 1999
------------------------- ------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued............ $ 174,023 16,533 $ 87,711 8,901
Dividends reinvested..... 7,047 664 4 --
Shares redeemed.......... (40) (4) (1,611) (161)
------------ ---------- ------------ ----------
Net Change............... $ 181,030 17,193 $ 86,104 8,740
============ ========== ============ ==========
Class B:
Shares issued............ $ 493,364 46,289 $ 75,289 7,715
Dividends reinvested..... 17,315 1,638 1 --
Shares redeemed.......... (22,829) (2,235) -- --
------------ ---------- ------------ ----------
Net Change............... $ 487,850 45,692 $ 75,290 7,715
============ ========== ============ ==========
Class Y:
Shares issued............ $ 85,682,451 8,508,208 $ 46,750,248 4,768,017
Dividends reinvested..... 1,687,218 159,021 29 3
Shares redeemed.......... (14,616,521) (1,394,309) (17,076,259) (1,787,220)
------------ ---------- ------------ ----------
Net Change............... $ 72,753,148 7,272,920 $ 29,674,018 2,980,800
============ ========== ============ ==========
</TABLE>
Continued
78
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
6.Capital Share Transactions (continued):
<TABLE>
<CAPTION>
Ultra Short
Balanced Fund Government Fund
------------------------ ----------------------
Amount Shares Amount Shares
------------ ---------- ----------- ---------
For the Year Ended For the Period Ended
July 31, 2000 July 31, 2000
------------------------ ----------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued................ $ 192,401 18,156 $ -- --
Dividends reinvested......... 3,250 301 -- --
Shares redeemed.............. (25,072) (2,188) -- --
------------ ---------- ----------- ---------
Net Change................... $ 170,579 16,269 $ -- --
============ ========== =========== =========
Class B:
Shares issued................ $ 831,426 76,225 $ -- --
Dividends reinvested......... 7,563 699 -- --
Shares redeemed.............. (46,227) (4,148) -- --
------------ ---------- ----------- ---------
Net Change................... $ 792,762 72,776 $ -- --
============ ========== =========== =========
Class Y:
Shares issued................ $ 2,711,631 252,784 $47,732,316 4,764,530
Dividends reinvested......... 552,979 51,874 104,537 10,428
Shares redeemed.............. (3,315,875) (304,873) (385,502) (38,463)
------------ ---------- ----------- ---------
Net Change................... $ (51,265) (215) $47,451,351 4,736,495
============ ========== =========== =========
<CAPTION>
For the Year Ended
July 31, 1999
------------------------
<S> <C> <C> <C> <C>
Class A:
Shares issued................ $ 64,042 6,296
Dividends reinvested......... 91 9
Shares redeemed.............. -- --
------------ ----------
Net Change................... $ 64,133 6,305
============ ==========
Class B:
Shares issued................ $ 315,762 31,335
Dividends reinvested......... 226 23
Shares redeemed.............. -- --
------------ ----------
Net Change................... $ 315,988 31,358
============ ==========
Class Y:
Shares issued................ $ 84,642 8,314
Shares issued in conjunction
with common trust fund con-
version..................... 189,111,744 18,826,632
Dividends reinvested......... -- --
Shares redeemed.............. (337,200) (33,386)
------------ ----------
Net Change................... $188,859,186 18,801,560
============ ==========
</TABLE>
Continued
79
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
7.Acquisition of Common Trust Funds
On August 1, 1999, the Value Fund issued Class Y shares in a tax free
conversion to acquire the assets and liabilities of the Pacific Century
Trust Income Stock Common Trust Fund. The following is a summary of Class Y
shares issued, net assets acquired, net asset per share and unrealized
appreciation as of the date acquired:
<TABLE>
<S> <C>
Class Y Shares................................................... 8,386,879
Net assets of Class Y before the acquisition..................... $75,463,575
Net assets acquired.............................................. $87,055,807
Net asset value.................................................. $ 10.38
Unrealized appreciation.......................................... $23,981,143
</TABLE>
8.Federal Income Tax Information (unaudited):
Capital Loss Carryforward
At July 31, 2000 the following Funds had net capital loss carryforwards to
offset future net capital gains, if any:
<TABLE>
<CAPTION>
Amount Expires
---------- -------
<S> <C> <C>
New Asia Fund.............................................. $ 683,203 2007
Diversified Fixed Income Fund.............................. 3,184,644 2004
Diversified Fixed Income Fund.............................. 58,103 2005
Diversified Fixed Income Fund.............................. 38,240 2006
Diversified Fixed Income Fund.............................. 1,275,585 2008
Tax-Free Securities Fund................................... 663,198 2008
Tax-Free Short Intermediate Securities Fund................ 12,151 2008
</TABLE>
Long Term Capital Gain Distributions
During the fiscal year ended July 31, 2000, the Funds declared long-term
capital gain distributions as follows:
<TABLE>
<S> <C>
Growth Stock Fund............................................... $104,392,153
Growth and Income Fund.......................................... 24,427,201
Short Intermediate U.S. Treasury Securities Fund................ 75,031
Tax-Free Securities Fund........................................ 1,961,581
Tax-Free Short Intermediate Securities Fund..................... 219,131
Value Fund...................................................... 1,720,956
Balanced Fund................................................... 554,738
</TABLE>
Dividend Received Deduction
For corporate shareholders, the following percentages of the total ordinary
income distributions paid during the fiscal year ended July 31, 2000 qualify
for the corporate dividends received deduction for the following Funds:
<TABLE>
<CAPTION>
Percentage
----------
<S> <C>
Growth Stock Fund.................................................. 1.64%
Growth and Income Fund............................................. 28.35%
Value Fund......................................................... 18.66%
Small Cap Fund..................................................... 24.21%
Balanced Fund...................................................... 12.76%
</TABLE>
Continued
80
<PAGE>
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, Continued
July 31, 2000
Tax-Exempt Income Distributions
During the fiscal year ended July 31, 2000 the Funds declared tax-exempt
income distributions as follows:
<TABLE>
<S> <C>
Tax-Free Securities Fund......................................... $20,972,463
Tax-Free Short Intermediate Securities Fund...................... 1,696,070
</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 Losses Currency Losses
-------------- ---------------
<S> <C> <C>
New Asia Fund................................. -- $58,414
Diversified Fixed Income Fund................. $7,167,070 --
Ultra Short Government Fund................... 26 --
Short Intermediate U.S. Treasury Securities
Fund......................................... 366,748 --
Tax-Free Securities Fund...................... 2,297,698 --
Tax-Free Short Intermediate Securities Fund... 287,532 --
Small Cap Fund................................ 415,954 --
</TABLE>
9.Voting Results of a Special Meeting of Pacific Capital U.S. Treasury
Securities Fund (unaudited):
A special meeting of shareholders of the Pacific Capital U.S. Treasury
Securities Fund was held on July 7, 2000. At the meeting, shareholders voted
to approve an agreement of reorganization and termination pursuant to which
the Pacific Capital U.S. Treasury Securities Fund will transfer all of the
assets and liabilities of Class A shares and Class Y shares to the Pacific
Capital Diversified Fixed Income Fund Class A shares and Class Y shares after
which the Pacific Capital U.S. Treasury Fund will be terminated.
<TABLE>
<CAPTION>
For Against Abstain
------- ------- -------
<S> <C> <C> <C>
U.S. Treasury Securities Fund........................... 405,377 531 2,192
</TABLE>
10. Subsequent Event
On August 1, 2000, the Ultra Short Government Fund commenced operations of
Class A and Class B shares.
81
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth Stock Fund
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 17.45 $ 17.75 $ 17.43 $11.89 $11.71
------- ------- ------- ------ ------
Investment Activities
Net investment income
(loss)................ (0.11) (0.08) (0.04) 0.03 0.07
Net realized and
unrealized gain on
investments........... 7.24 2.80 2.99 5.55 0.89
------- ------- ------- ------ ------
Total from Investment
Activities............ 7.13 2.72 2.95 5.58 0.96
------- ------- ------- ------ ------
Distributions
Net investment income.. -- -- -- (0.03) (0.07)
In excess of net
investment income..... -- (0.01) (0.01) (0.01) --
Net realized gains..... (4.85) (3.01) (2.62) -- (0.22)
In excess of net
realized gains........ -- -- -- -- (0.49)
------- ------- ------- ------ ------
Total Distributions.... (4.85) (3.02) (2.63) (0.04) (0.78)
------- ------- ------- ------ ------
Net Asset Value, End of
Period................. $ 19.73 $ 17.45 $ 17.75 $17.43 $11.89
======= ======= ======= ====== ======
Total Return (excludes
sales charges)......... 45.24% 17.40% 19.58% 47.02% 8.25%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $30,971 $17,417 $13,777 $9,742 $5,261
Ratio of expenses to
average net assets..... 1.30% 1.32% 1.32% 1.32% 1.34%
Ratio of net investment
income (loss) to
average net assets..... (0.70%) (0.58%) (0.30%) 0.16% 0.60%
Ratio of expenses to
average net assets*.... 1.84% 1.85% 1.86% 1.86% 1.88%
Ratio of net investment
income (loss) to
average net assets*.... (1.24%) (1.12%) (0.84%) (0.38%) 0.06%
Portfolio Turnover (a).. 117.11% 81.02% 97.03% 32.20% 61.30%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions and expense reimbursements had not occurred, the
ratios would have been as indicated.
(a) 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.
82
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth Stock Fund
---------------------------------------------
Class B
For the Year For the Year For the Period
Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 (a)
------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period......................... $ 17.28 $17.72 $16.36
------- ------ ------
Investment Activities
Net investment loss............ (0.18) (0.10) (0.05)
Net realized and unrealized
gain on investments........... 7.07 2.67 1.41
------- ------ ------
Total from Investment
Activities.................... 6.89 2.57 1.36
------- ------ ------
Distributions
Net realized gains............. (4.85) (3.01) --
------- ------ ------
Total Distributions............ (4.85) (3.01) --
------- ------ ------
Net Asset Value, End of Period.. $ 19.32 $17.28 $17.72
======= ====== ======
Total Return (exclude sales
charge)........................ 44.14% 16.55% 8.31%(c)
Annualized Ratios/Supplementary
Data:
Net Assets at end of period
(000).......................... $28,789 $9,988 $1,459
Ratio of expenses to average net
assets......................... 2.06% 2.06% 2.07%(b)
Ratio of net investment loss to
average net assets............. (1.46%) (1.35%) (1.31%)(b)
Ratio of expenses to average net
assets*........................ 2.10% 2.10% 2.11%(b)
Ratio of net investment loss to
average net assets*............ (1.50%) (1.39%) (1.35%)(b)
Portfolio Turnover (d).......... 117.11% 81.02% 97.03%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions and expense reimbursements had not occurred, the
ratios would have been as indicated.
(a) Period from March 2, 1998 (commencement of operations) to July 31, 1999.
(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.
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 Stock Fund
---------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 17.56 $ 17.81 $ 17.44 $ 11.89 $ 11.71
-------- -------- -------- -------- --------
Investment Activities
Net investment income
(loss)................ (0.08) (0.06) -- 0.07 0.10
Net realized and
unrealized gain on
investments........... 7.32 2.82 3.01 5.55 0.89
-------- -------- -------- -------- --------
Total from Investment
Activities............ 7.24 2.76 3.01 5.62 0.99
-------- -------- -------- -------- --------
Distributions
Net investment income.. -- -- -- (0.07) (0.10)
In excess of net
investment income..... -- -- (0.02) -- --
Net realized gains..... (4.85) (3.01) (2.62) -- (0.22)
In excess of net
realized gains........ -- -- -- -- (0.49)
-------- -------- -------- -------- --------
Total Distributions.... (4.85) (3.01) (2.64) (0.07) (0.81)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 19.95 $ 17.56 $ 17.81 $ 17.44 $ 11.89
======== ======== ======== ======== ========
Total Return............ 45.56% 17.72% 19.96% 47.39% 8.53%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $504,125 $382,298 $375,117 $198,407 $172,565
Ratio of expenses to
average net assets..... 1.05% 1.07% 1.07% 1.07% 1.09%
Ratio of net investment
income (loss) to
average net assets..... (0.45%) (0.32%) (0.08%) 0.45% 0.86%
Ratio of expenses to
average net assets*.... 1.09% 1.11% 1.11% 1.11% 1.13%
Ratio of net investment
income (loss) to
average net assets*.... (0.49%) (0.36%) (0.12%) 0.41% 0.82%
Portfolio Turnover (a).. 117.11% 81.02% 97.03% 32.20% 61.30%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions and expense reimbursements had not occurred, the
ratios would have been as indicated.
(a) 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.
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
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 18.89 $18.72 $17.25 $12.32 $11.44
------- ------ ------ ------ ------
Investment Activities
Net investment income
(loss)................ (0.04) (0.02) 0.03 0.08 0.16
Net realized and
unrealized gain on
investments........... 5.16 2.38 3.01 5.57 1.19
------- ------ ------ ------ ------
Total from Investment
Activities............ 5.12 2.36 3.04 5.65 1.35
------- ------ ------ ------ ------
Distributions
Net investment income.. -- -- (0.04) (0.08) (0.15)
In excess of net
investment income..... -- -- -- (0.01) (0.01)
Net realized gains..... (2.68) (2.19) (1.53) (0.63) (0.31)
------- ------ ------ ------ ------
Total Distributions.... (2.68) (2.19) (1.57) (0.72) (0.47)
------- ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 21.33 $18.89 $18.72 $17.25 $12.32
======= ====== ====== ====== ======
Total Return (excludes
sales charges)......... 28.85% 13.67% 19.10% 47.59% 11.96%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $12,540 $9,593 $6,730 $3,726 $1,160
Ratio of expenses to
average net assets..... 1.33% 1.35% 1.33% 1.32% 1.37%
Ratio of net investment
income (loss) to
average net assets..... (0.22%) (0.12%) 0.13% 0.48% 1.03%
Ratio of expenses to
average net assets*.... 1.87% 1.89% 1.87% 1.86% 1.91%
Ratio of net investment
income (loss) to
average net assets*.... (0.76%) (0.66%) (0.41%) (0.06%) 0.49%
Portfolio Turnover (a).. 60.51% 65.56% 75.92% 74.83% 80.83%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions and expense reimbursements had not occurred, the
ratios would have been as indicated.
(a) 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.
85
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Growth & Income Fund
---------------------------------------------
Class B
For the Year For the Year For the Period
Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 (d)
------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period......................... $ 18.66 $18.68 $17.58
------- ------ ------
Investment Activities
Net investment loss............ (0.15) (0.08) (0.02)
Net realized and unrealized
gain on investments........... 5.05 2.25 1.12
------- ------ ------
Total from Investment
Activities.................... 4.90 2.17 1.10
------- ------ ------
Distributions
Net realized gains............. (2.68) (2.19) --
------- ------ ------
Total Distributions............ (2.68) (2.19) --
------- ------ ------
Net Asset Value, End of Period.. $ 20.88 $18.66 $18.68
======= ====== ======
Total Return (excludes sales
charge)........................ 27.95% 12.58% 6.27%(b)
Annualized Ratios/Supplementary
Data:
Net Assets at end of period
(000).......................... $15,593 $8,265 $2,184
Ratio of expenses to average net
assets......................... 2.08% 2.09% 2.08%(a)
Ratio of net investment loss to
average net assets............. (0.99%) (0.90%) (0.73%)(a)
Ratio of expenses to average net
assets*........................ 2.12% 2.13% 2.12%(a)
Ratio of net investment loss to
average net assets*............ (1.03%) (0.94%) (0.77%)(a)
Portfolio Turnover (c).......... 60.51% 65.56% 75.92%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
(a) Annualized.
(b) Not 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 March 2, 1998 (commencement of operations) to July 31, 1999.
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>
Growth & Income Fund
----------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 18.90 18.75 $ 17.27 $ 12.32 $ 11.43
-------- -------- -------- -------- -------
Investment Activities
Net investment income.. --(b) 0.03 0.07 0.11 0.17
Net realized and
unrealized gain on
investments........... 5.18 2.34 3.01 5.58 1.21
-------- -------- -------- -------- -------
Total from Investment
Activities............ 5.18 2.37 3.08 5.69 1.38
-------- -------- -------- -------- -------
Distributions
Net investment income.. -- (0.03) (0.07) (0.11) (0.17)
In excess of net
investment income..... (0.01) -- -- -- (0.01)
Net realized gains..... (2.68) (2.19) (1.53) (0.63) (0.31)
-------- -------- -------- -------- -------
Total Distributions.... (2.69) (2.22) (1.60) (0.74) (0.49)
-------- -------- -------- -------- -------
Net Asset Value, End of
Period................. $ 21.39 $ 18.90 $ 18.75 $ 17.27 $ 12.32
======== ======== ======== ======== =======
Total Return............ 29.22% 13.69% 19.37% 47.96% 12.29%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $201,600 $157,891 $164,706 $123,821 $74,427
Ratio of expenses to
average net assets..... 1.08% 1.10% 1.08% 1.07% 1.11%
Ratio of net investment
income to average net
assets................. 0.03% 0.15% 0.38% 0.79% 1.43%
Ratio of expenses to
average net assets*.... 1.12% 1.14% 1.12% 1.12% 1.15%
Ratio of net investment
income (loss) to
average net assets*.... (0.01%) 0.11% 0.34% 0.75% 1.39%
Portfolio Turnover (a).. 60.51% 65.56% 75.92% 74.83% 80.83%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
(a) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(b) Rounds less than $0.01.
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>
New Asia Growth Fund
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.57 $ 6.35 $ 13.89 $ 11.11 $11.21
------- ------- ------- ------- ------
Investment Activities
Net investment income
(loss)................ (0.17) (0.05) 0.09 0.03 (0.02)
Net realized and
unrealized gain (loss)
on investments........ 2.10 4.29 (6.59) 2.88 0.20
------- ------- ------- ------- ------
Total from Investment
Activities............ 1.93 4.24 (6.50) 2.91 0.18
------- ------- ------- ------- ------
Distributions
Net investment income.. -- -- -- (0.01) --
In excess of net
investment income..... -- (0.02) -- -- (0.02)
Net realized gains..... -- (1.04) (0.12) (0.26)
------- ------- ------- ------- ------
Total Distributions.... -- (0.02) (1.04) (0.13) (0.28)
------- ------- ------- ------- ------
Net Asset Value, End of
Period................. $ 12.50 $ 10.57 $ 6.35 $ 13.89 $11.11
======= ======= ======= ======= ======
Total Return (excludes
sales charges)......... 18.26% 66.99% (48.84%) 26.31% 1.71%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $ 2,704 $ 2,379 $ 1,614 $ 3,459 $1,990
Ratio of expenses to
average net assets..... 1.99% 2.14% 2.18% 1.98% 2.22%
Ratio of net investment
income (loss) to
average net assets..... (1.22%) (0.52%) 0.98% 0.20% (0.28%)
Ratio of expenses to
average net assets*.... 2.54% 2.78% 2.86% 2.58% 3.58%
Ratio of net investment
income (loss) to
average net assets*.... (1.77%) (1.16%) 0.30% (0.40%) (1.64%)
Portfolio Turnover (a).. 172.57% 152.58% 129.77% 134.89% 86.53%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions and expense reimbursements had not occurred, the
ratios would have been as indicated.
(a) 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.
88
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
New Asia Growth Fund
---------------------------------------------
Class B
For the Year For the Year For the Period
Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 (d)
------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period......................... $ 10.50 $ 6.34 $ 9.09
------- ------- -------
Investment Activities
Net investment income (loss)... (0.13) (0.02) 0.04
Net realized and unrealized
gain (loss) on investments.... 1.97 4.18 (2.79)
------- ------- -------
Total from Investment
Activities.................... 1.84 4.16 (2.75)
------- ------- -------
Net Asset Value, End of Period.. $ 12.34 $ 10.50 $ 6.34
======= ======= =======
Total Return (excludes sales
charge)........................ 17.52% 65.66% (30.25%)(b)
Annualized Ratios/Supplementary
Data:
Net Assets at end of period
(000).......................... $ 823 $ 311 $ 66
Ratio of expenses to average net
assets......................... 2.75% 2.82% 2.89%(a)
Ratio of net investment income
(loss) to average net assets... (1.94%) (1.33%) 1.70%(a)
Ratio of expenses to average net
assets*........................ 2.80% 2.95% 3.35%(a)
Ratio of net investment income
(loss) to average net assets*.. (1.99%) (1.46%) 1.24%(a)
Portfolio Turnover (c).......... 172.57% 152.58% 129.77%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Annualized.
(b) Not 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 March 2, 1998 (commencement of operations) to July 31, 1999.
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>
New Asia Growth Fund
---------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.60 $ 6.37 $ 13.94 $ 11.14 $11.22
------- ------- ------- ------- ------
Investment Activities
Net investment income
(loss)................ (0.09) (0.06) 0.12 0.06 (0.01)
Net realized and
unrealized gain (loss)
on investments........ 2.07 4.33 (6.63) 2.87 0.22
------- ------- ------- ------- ------
Total from Investment
Activities............ 1.98 4.27 (6.51) 2.93 0.21
------- ------- ------- ------- ------
Distributions
Net investment income.. -- -- (0.02) (0.01) --
In excess of net
investment income..... -- (0.04) -- -- (0.03)
Net realized gains..... -- -- (1.04) (0.12) (0.26)
------- ------- ------- ------- ------
Total Distributions.... -- (0.04) (1.06) (0.13) (0.29)
------- ------- ------- ------- ------
Net Asset Value, End of
Period................. $ 12.58 $ 10.60 $ 6.37 $ 13.94 $11.14
======= ======= ======= ======= ======
Total Return............ 18.68% 67.38% (48.76%) 26.50% 1.99%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $25,740 $15,954 $14,569 $18,376 $8,469
Ratio of expenses to
average net assets..... 1.74% 1.90% 1.93% 1.72% 1.98%
Ratio of net investment
income (loss) to
average net assets..... (0.95%) (0.33%) 1.32% 0.46% (0.02%)
Ratio of expenses to
average net assets*.... 1.79% 2.05% 2.13% 1.82% 2.84%
Ratio of net investment
income (loss) to
average net assets*.... (1.00%) (0.47%) 1.12% 0.36% (0.88%)
Portfolio Turnover (a).. 172.57% 152.58% 129.77% 134.89% 86.53%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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>
Diversified Fixed Income
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.39 $10.92 $10.71 $10.45 $10.75
------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.58 0.56 0.58 0.57 0.59
Net realized and
unrealized gain (loss)
on investments........ (0.17) (0.43) 0.21 0.35 (0.19)
------ ------ ------ ------ ------
Total from Investment
Activities............ 0.41 0.13 0.79 0.92 0.40
------ ------ ------ ------ ------
Distributions
Net investment income.. (0.58) (0.56) (0.58) (0.57) (0.58)
In excess of net
investment income..... -- -- -- -- (0.02)
Net realized gains..... -- (0.10) -- -- --
In excess of net
realized gains........ -- -- -- (0.09) (0.10)
------ ------ ------ ------ ------
Total Distributions.... (0.58) (0.66) (0.58) (0.66) (0.70)
------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $10.22 $10.39 $10.92 $10.71 $10.45
====== ====== ====== ====== ======
Total Return (excludes
sales charges)......... 4.09% 1.02% 7.61% 9.20% 3.69%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $5,252 $2,228 $1,497 $1,103 $1,093
Ratio of expenses to
average net assets..... 0.97% 0.98% 1.02% 1.15% 1.15%
Ratio of net investment
income to average net
assets................. 5.70% 5.08% 5.36% 5.44% 5.31%
Ratio of expenses to
average net assets*.... 1.66% 1.67% 1.65% 1.69% 1.69%
Ratio of net investment
income to average net
assets*................ 5.01% 4.39% 4.73% 4.90% 4.77%
Portfolio Turnover (a).. 84.65% 60.00% 57.58% 80.98% 58.86%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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>
Diversified Fixed Income
---------------------------------------------
Class B
For the Year For the Year For the Period
Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 (d)
------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.......................... $10.37 $10.91 $10.79
------ ------ ------
Investment Activities
Net investment income........... 0.50 0.48 0.23
Net realized and unrealized gain
(loss) on investments.......... (0.17) (0.44) 0.12
------ ------ ------
Total from Investment
Activities..................... 0.33 0.04 0.35
------ ------ ------
Distributions
Net investment income........... (0.50) (0.48) (0.23)
Net realized gains.............. -- (0.06) --
In excess of net realized gains. -- (0.04) --
------ ------ ------
Total Distributions............. (0.50) (0.58) (0.23)
------ ------ ------
Net Asset Value, End of Period... $10.20 $10.37 $10.91
====== ====== ======
Total Return (excludes sales
charge)......................... 3.34% 0.24% 3.25%(b)
Annualized Ratios/Supplementary
Data:
Net Assets at end of period
(000)........................... $2,760 $2,078 $ 236
Ratio of expenses to average net
assets.......................... 1.71% 1.72% 1.71%(a)
Ratio of net investment income to
average net assets.............. 4.95% 4.39% 4.54%(a)
Ratio of expenses to average net
assets*......................... 1.90% 1.91% 1.90%(a)
Ratio of net investment income to
average net assets*............. 4.76% 4.20% 4.35%(a)
Portfolio Turnover (c)........... 84.65% 60.00% 57.58%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Annualized.
(b) Not 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 March 2, 1998 (commencement of operations) to July 31, 1999.
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>
Diversified Fixed Income
----------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.45 $ 11.00 $ 10.78 $ 10.53 $ 10.84
-------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.61 0.59 0.61 0.60 0.58
Net realized and
unrealized gain (loss)
on investments........ (0.17) (0.45) 0.22 0.34 (0.16)
-------- -------- -------- -------- --------
Total from Investment
Activities............ 0.44 0.14 0.83 0.94 0.42
-------- -------- -------- -------- --------
Distributions
Net investment income.. (0.61) (0.59) (0.61) (0.60) (0.61)
In excess of net
investment income..... --(b) -- -- -- (0.02)
Net realized gains..... -- (0.07) -- --
In excess of net
realized gains........ -- (0.03) -- (0.09) (0.10)
-------- -------- -------- -------- --------
Total Distributions.... (0.61) (0.69) (0.61) (0.69) (0.73)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 10.28 $ 10.45 $ 11.00 $ 10.78 $ 10.53
======== ======== ======== ======== ========
Total Return............ 4.37% 1.10% 7.94% 9.30% 3.85%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $241,169 $199,413 $158,909 $132,583 $161,742
Ratio of expenses to
average net assets..... 0.71% 0.73% 0.77% 0.90% 0.88%
Ratio of net investment
income to average net
assets................. 5.95% 5.34% 5.61% 5.67% 5.56%
Ratio of expenses to
average net assets*.... 0.90% 0.92% 0.90% 0.94% 0.92%
Ratio of net investment
income to average net
assets*................ 5.76% 5.15% 5.48% 5.63% 5.52%
Portfolio Turnover (a).. 84.65% 60.00% 57.58% 80.98% 58.86%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
(b) Less than $0.01 per share.
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>
Ultra Short Gov't Fund
----------------------
Class Y
Period Ended
July 31, 2000 (c)
----------------------
<S> <C>
Net Asset Value, Beginning of Period................... $ 10.00
-------
Investment Activities
Net investment income................................. 0.11
Net realized and unrealized gain on investments....... 0.02
-------
Total from Investment Activities...................... 0.13
-------
Distributions
Net investment income................................. (0.11)
-------
Total Distributions................................... (0.11)
-------
Net Asset Value, End of Period......................... $ 10.02
=======
Total Return........................................... 1.27%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)...................... $47,483
Ratio of expenses to average net assets (d)............ 0.40%(b)
Ratio of net investment income to average net assets
(d)................................................... 6.38%(b)
Ratio of expenses to average net assets*............... 1.28%(b)
Ratio of net investment income to average net assets*.. 5.50%(b)
Portfolio Turnover..................................... 0.00%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Period from June 1, 2000 (commencement of operations) to July 31, 1999.
(d) The Adviser agreed to waive its management fee or to reimburse expenses,
as allowed by law, to the extent necessary to maintain the net operating
expenses of the Class Y shares of the Fund at a maximum of 0.40% until at
least August 1, 2002.
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>
Short Intermediate U.S. Treasury Securities Fund
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.42 $ 9.64 $ 9.55 $ 9.41 $ 9.60
------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.44 0.45 0.49 0.49 0.48
Net realized and
unrealized gain (loss)
on investments........ (0.08) (0.18) 0.09 0.14 (0.11)
------ ------ ------ ------ ------
Total from Investment
Activities............ 0.36 0.27 0.58 0.63 0.37
------ ------ ------ ------ ------
Distributions
Net investment income.. (0.44) (0.45) (0.49) (0.49) (0.50)
In excess of net
investment income..... -- -- -- -- (0.04)
Net realized gains..... (0.04) (0.04) -- -- --
In excess of net
realized gains........ --(a) -- -- -- (0.02)
------ ------ ------ ------ ------
Total Distributions.... (0.48) (0.49) (0.49) (0.49) (0.56)
------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 9.30 $ 9.42 $ 9.64 $ 9.55 $ 9.41
====== ====== ====== ====== ======
Total Return (excludes
sales charges)......... 3.97% 2.79% 6.27% 6.92% 3.90%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $ 452 $ 595 $ 654 $ 618 $1,156
Ratio of expenses to
average net assets..... 0.89% 0.94% 0.89% 0.87% 0.92%
Ratio of net investment
income to average net
assets................. 4.78% 4.65% 5.11% 5.22% 5.14%
Ratio of expenses to
average net assets*.... 1.64% 1.49% 1.64% 1.62% 1.67%
Ratio of net investment
income to average net
assets*................ 4.03% 4.10% 4.36% 4.47% 4.39%
Portfolio Turnover (b).. 48.99% 63.27% 17.33% 51.56% 47.17%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Less than $0.01 per share.
(b) 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.
95
<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
---------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.44 $ 9.66 $ 9.56 $ 9.42 $ 9.61
------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.47 0.48 0.51 0.52 0.53
Net realized and
unrealized gain (loss)
on investments........ (0.08) (0.18) 0.10 0.14 (0.13)
------- ------- ------- ------- -------
Total from Investment
Activities............ 0.39 0.30 0.61 0.66 0.40
------- ------- ------- ------- -------
Distributions
Net investment income.. (0.47) (0.48) (0.51) (0.52) (0.53)
In excess of net
investment income..... -- -- -- -- (0.04)
Net realized gains..... (0.04) (0.04) -- -- --
In excess of net
realized gains........ --(a) -- -- -- (0.02)
------- ------- ------- ------- -------
Total Distributions.... (0.51) (0.52) (0.51) (0.52) (0.59)
------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.32 $ 9.44 $ 9.66 $ 9.56 $ 9.42
======= ======= ======= ======= =======
Total Return............ 4.24% 3.05% 6.62% 7.19% 4.18%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $32,380 $33,332 $24,843 $26,722 $23,545
Ratio of expenses to
average net assets..... 0.64% 0.67% 0.64% 0.62% 0.67%
Ratio of net investment
income to average net
assets................. 5.04% 4.89% 5.36% 5.47% 5.40%
Ratio of expenses to
average net assets*.... 0.89% 0.72% 0.89% 0.87% 0.92%
Ratio of net investment
income to average net
assets*................ 4.79% 4.84% 5.11% 5.22% 5.15%
Portfolio Turnover (b).. 48.99% 63.27% 17.33% 51.56% 47.17%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Less than $0.01 per share.
(b) 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.
96
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Securities Fund
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.49 $10.84 $10.84 $10.44 $10.53
------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.48 0.48 0.48 0.49 0.50
Net realized and
unrealized gain (loss)
on investments........ (0.15) (0.25) 0.06 0.46 0.07
------ ------ ------ ------ ------
Total from Investment
Activities............ 0.33 0.23 0.54 0.95 0.57
------ ------ ------ ------ ------
Distributions
Net investment income.. (0.48) (0.48) (0.48) (0.49) (0.49)
In excess of net
investment income..... -- -- -- -- (0.04)
Net realized gains..... (0.05) (0.10) (0.06) (0.06) (0.09)
In excess of net
realized gains........ -- -- -- -- (0.04)
------ ------ ------ ------ ------
Total Distributions.... (0.53) (0.58) (0.54) (0.55) (0.66)
------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $10.29 $10.49 $10.84 $10.84 $10.44
====== ====== ====== ====== ======
Total Return (excludes
sales charges)......... 3.28% 2.00% 5.17% 9.35% 5.54%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $6,832 $4,795 $3,054 $2,545 $ 569
Ratio of expenses to
average net assets..... 0.95% 0.96% 1.02% 1.12% 1.14%
Ratio of net investment
income to average net
assets................. 4.71% 4.41% 4.49% 4.60% 4.66%
Ratio of expenses to
average net assets*.... 1.64% 1.65% 1.65% 1.66% 1.68%
Ratio of net investment
income to average net
assets*................ 4.02% 3.72% 3.86% 4.06% 4.12%
Portfolio Turnover (a).. 22.40% 9.91% 10.73% 11.07% 24.78%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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.
97
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Securities Fund
---------------------------------------------
Class B
For the Year For the Year For the Year
Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 (d)
------------- ------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period......................... $10.49 $10.83 $10.84
------ ------ ------
Investment Activities
Net investment income.......... 0.40 0.40 0.21
Net realized and unrealized
loss on investments........... (0.15) (0.24) (0.01)
------ ------ ------
Total from Investment
Activities.................... 0.25 0.16 0.20
------ ------ ------
Distributions
Net investment income.......... (0.40) (0.40) (0.21)
Net realized gains............. (0.05) (0.10) --
------ ------ ------
Total Distributions............ (0.45) (0.50) (0.21)
------ ------ ------
Net Asset Value, End of Period.. $10.29 $10.49 $10.83
====== ====== ======
Total Return (excludes sales
charge)........................ 2.54% 1.40% 1.82%(b)
Annualized Ratios/Supplementary
Data:
Net Assets at end of period
(000).......................... $2,779 $1,756 $ 272
Ratio of expenses to average net
assets......................... 1.70% 1.70% 1.71%(a)
Ratio of net investment income
to average net assets.......... 3.97% 3.68% 3.75%(a)
Ratio of expenses to average net
assets*........................ 1.89% 1.89% 1.90%(a)
Ratio of net investment income
to average net assets*......... 3.78% 3.49% 3.56%(a)
Portfolio Turnover (c).......... 22.40% 9.91% 10.73%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Annualized.
(b) Not 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 March 2, 1998 (commencement of operations) to July 31, 1999.
See notes to financial statements.
98
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Tax-Free Securities Fund
---------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.53 $ 10.88 $ 10.86 $ 10.46 $ 10.56
-------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.50 0.51 0.51 0.51 0.52
Net realized and
unrealized gain (loss)
on investments........ (0.15) (0.25) 0.08 0.46 0.07
-------- -------- -------- -------- --------
Total from Investment
Activities............ 0.35 0.26 0.59 0.97 0.59
-------- -------- -------- -------- --------
Distributions
Net investment income.. (0.50) (0.51) (0.51) (0.51) (0.52)
In excess of net
investment income..... -- -- -- -- (0.04)
Net realized gains..... (0.05) (0.10) (0.06) (0.06) (0.09)
In excess of net
realized gains........ -- -- -- -- (0.04)
-------- -------- -------- -------- --------
Total Distributions.... (0.55) (0.61) (0.57) (0.57) (0.69)
-------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 10.33 $ 10.53 $ 10.88 $ 10.86 $ 10.46
======== ======== ======== ======== ========
Total Return............ 3.55% 2.26% 5.63% 9.58% 5.73%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $432,677 $424,022 $416,544 $296,764 $288,934
Ratio of expenses to
average net assets..... 0.70% 0.71% 0.77% 0.87% 0.89%
Ratio of net investment
income to average net
assets................. 4.96% 4.66% 4.74% 4.86% 4.92%
Ratio of expenses to
average net assets*.... 0.89% 0.90% 0.90% 0.91% 0.93%
Ratio of net investment
income to average net
assets*................ 4.77% 4.47% 4.61% 4.82% 4.88%
Portfolio Turnover (a).. 22.40% 9.91% 10.73% 11.07% 24.78%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a)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.
99
<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
---------------------------------------------------------------------
Class A
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.95 $10.09 $10.17 $10.05 $10.11
------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.35 0.34 0.35 0.37 0.37
Net realized and
unrealized gain (loss)
on investments........ (0.04) (0.09) (0.02) 0.13 (0.03)
------ ------ ------ ------ ------
Total from Investment
Activities............ 0.31 0.25 0.33 0.50 0.34
------ ------ ------ ------ ------
Distributions
Net investment income.. (0.35) (0.34) (0.35) (0.37) (0.37)
In excess of net
investment income..... -- -- -- -- (0.03)
Net realized gains..... (0.05) (0.05) (0.06) (0.01) --
------ ------ ------ ------ ------
Total Distributions.... (0.40) (0.39) (0.41) (0.38) (0.40)
------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $ 9.86 $ 9.95 $10.09 $10.17 $10.05
====== ====== ====== ====== ======
Total Return (excludes
sales charges)......... 3.19% 2.44% 3.36% 5.06% 3.41%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $1,458 $ 878 $ 478 $ 724 $ 451
Ratio of expenses to
average net assets..... 0.98% 0.98% 1.01% 1.09% 1.08%
Ratio of net investment
income to average net
assets................. 3.57% 3.35% 3.50% 3.57% 3.64%
Ratio of expenses to
average net assets*.... 1.63% 1.63% 1.62% 1.64% 1.63%
Ratio of net investment
income to average net
assets*................ 2.92% 2.70% 2.89% 3.02% 3.09%
Portfolio Turnover (a).. 42.57% 18.40% 47.55% 29.46% 54.70%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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.
100
<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
---------------------------------------------------------------------
Class Y
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
July 31, 2000 July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.00 $ 10.15 $ 10.21 $ 10.08 $ 10.14
------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.37 0.37 0.38 0.39 0.40
Net realized and
unrealized gain (loss)
on investments........ (0.04) (0.10) -- 0.14 (0.03)
------- ------- ------- ------- -------
Total from Investment
Activities............ 0.33 0.27 0.38 0.53 0.37
------- ------- ------- ------- -------
Distributions
Net investment income.. (0.37) (0.37) (0.38) (0.39) (0.40)
In excess of net
investment income..... -- -- -- -- (0.03)
Net realized gains..... (0.05) (0.05) (0.06) (0.01) --
------- ------- ------- ------- -------
Total Distributions.... (0.42) (0.42) (0.44) (0.40) (0.43)
------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.91 $ 10.00 $ 10.15 $ 10.21 $ 10.08
======= ======= ======= ======= =======
Total Return............ 3.44% 2.60% 3.83% 5.36% 3.67%
Annualized
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $41,371 $47,668 $52,185 $37,410 $39,472
Ratio of expenses to
average net assets..... 0.73% 0.73% 0.76% 0.84% 0.83%
Ratio of net investment
income to average net
assets................. 3.80% 3.61% 3.75% 3.82% 3.90%
Ratio of expenses to
average net assets*.... 0.88% 0.88% 0.87% 0.89% 0.88%
Ratio of net investment
income to average net
assets*................ 3.65% 3.46% 3.64% 3.77% 3.85%
Portfolio Turnover (a).. 42.57% 18.40% 47.55% 29.46% 54.70%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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.
101
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
International Stock Fund
-------------------------------
Class A
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 11.96 $ 10.09
------- -------
Investment Activities
Net investment income........................ 0.05 --
Net realized and unrealized gain on
investments................................. 3.03 1.87
------- -------
Total from Investment Activities............. 3.08 1.87
------- -------
Distributions
Net realized gains........................... (0.49) --
------- -------
Total Distributions.......................... (0.49) --
------- -------
Net Asset Value, End of Period................ $ 14.55 $ 11.96
======= =======
Total Return (excludes sales charges)......... 25.62% 18.53%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 4,362 $ 265
Ratio of expenses to average net assets....... 1.66% 1.94%(b)
Ratio of net investment income (loss) to
average net assets........................... (0.58%) (0.19%)(b)
Ratio of expenses to average net assets*...... 2.30% 2.61%(b)
Ratio of net investment income (loss) to
average net assets*.......................... (1.22%) (0.86%)(b)
Portfolio Turnover (c)........................ 214.18% 156.46%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 December 8, 1998 (commencement of operations) to July 31,
1999.
See notes to financial statements.
102
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
International Stock Fund
-------------------------------
Class B
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 11.90 $ 10.20
------- -------
Investment Activities
Net investment income (loss)................. 0.04 (0.02)
Net realized and unrealized gain on
investments................................. 2.90 1.72
------- -------
Total from Investment Activities............. 2.94 1.70
------- -------
Distributions
Net realized gains........................... (0.49) --
------- -------
Total Distributions.......................... (0.49) --
------- -------
Net Asset Value, End of Period................ $ 14.35 $ 11.90
======= =======
Total Return (excludes sales charge).......... 24.56% 16.67%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 1,202 $ 102
Ratio of expenses to average net assets....... 2.43% 2.76%(b)
Ratio of net investment income (loss) to
average net assets........................... (1.10%) (1.08%)(b)
Ratio of expenses to average net assets*...... 2.57% 2.91%(b)
Ratio of net investment loss to average net
assets*...................................... (1.24%) (1.24%)(b)
Portfolio Turnover (c)........................ 214.18% 156.46%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 December 20, 1998 (commencement of operations) to July 31,
1999.
See notes to financial statements.
103
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
International Stock Fund
-------------------------------
Class Y
For the Year For the
Ended Year Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 11.98 $ 10.00
-------- -------
Investment Activities
Net investment loss.......................... (0.06) --
Net realized and unrealized gain on
investments................................. 3.16 1.98
-------- -------
Total from Investment Activities............. 3.10 1.98
-------- -------
Distributions
Net realized gains........................... (0.49) --
-------- -------
Total Distributions.......................... (0.49) --
-------- -------
Net Asset Value, End of Period................ $ 14.59 $ 11.98
======== =======
Total Return.................................. 25.65% 19.90%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $109,962 $81,253
Ratio of expenses to average net assets....... 1.45% 1.65%(b)
Ratio of net investment income (loss) to
average net assets........................... (0.49%) 0.03%(b)
Ratio of expenses to average net assets*...... 1.59% 1.79%(b)
Ratio of net investment loss to average net
assets*...................................... (0.63%) (0.10%)(b)
Portfolio Turnover (c)........................ 214.18% 156.46%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 December 2, 1998 (commencement of operations) to July 31,
1999.
See notes to financial statements.
104
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Value Fund
-------------------------------
Class A
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 10.37 $ 10.05
------- -------
Investment Activities
Net investment income........................ 0.03 0.01
Net realized and unrealized gain on
investments................................. 0.50 0.78
------- -------
Total from Investment Activities............. 0.53 0.79
------- -------
Distributions
Net investment income........................ (0.04) --
In excess of net investment income........... --(c) (0.02)
Net realized gains........................... (0.13) (0.45)
------- -------
Total Distributions.......................... (0.17) (0.47)
------- -------
Net Asset Value, End of Period................ $ 10.73 $ 10.37
======= =======
Total Return (excludes sales charges)......... 5.21% 7.81%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 1,355 $ 178
Ratio of expenses to average net assets....... 1.30% 1.60%(b)
Ratio of net investment income (loss) to
average net assets........................... 0.30% (0.01%)(b)
Ratio of expenses to average net assets*...... 1.85% 2.15%(b)
Ratio of net investment loss to average net
assets*...................................... (0.25%) (0.56%)(b)
Portfolio Turnover (e)........................ 120.42% 113.72%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 8, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
105
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Value Fund
-------------------------------
Class B
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 10.34 $ 9.90
------- -------
Investment Activities
Net investment income loss................... (0.03) (0.01)
Net realized and unrealized gain on
investments................................. 0.47 0.91
------- -------
Total from Investment Activities............. 0.44 0.90
------- -------
Distributions
Net investment income........................ --(c) --
In excess of net investment income........... --(c) (0.01)
Net realized gains........................... (0.13) (0.38)
In excess of net realized gains.............. -- (0.07)
------- -------
Total Distributions.......................... (0.13) (0.46)
------- -------
Net Asset Value, End of Period................ $ 10.65 $ 10.34
======= =======
Total Return (excludes sales charge).......... 4.30% 8.94%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 1,018 $ 472
Ratio of expenses to average net assets....... 2.06% 2.44%(b)
Ratio of net investment loss to average net
assets....................................... (0.37%) (0.71%)(b)
Ratio of expenses to average net assets*...... 2.10% 2.48%(b)
Ratio of net investment loss to average net
assets*...................................... (0.41%) (0.75%(b)
Portfolio Turnover (e)........................ 120.42% 113.72%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 13, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
106
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Value Fund
----------------------------
Class Y
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999
------------- -------------
<S> <C> <C>
Net Asset Value, Beginning of Period........... $ 10.38 $ 10.00
-------- -------
Investment Activities
Net investment income......................... 0.07 0.04
Net realized and unrealized gain (loss) on
investments.................................. 0.49 0.83
-------- -------
Total from Investment Activities.............. 0.56 0.87
-------- -------
Distributions
Net investment income......................... (0.07) (0.03)
In excess of net investment income............ --(c) (0.01)
Net realized gains............................ (0.13) (0.45)
-------- -------
Total Distributions........................... (0.20) (0.49)
-------- -------
Net Asset Value, End of Period................. $ 10.74 $ 10.38
======== =======
Total Return................................... 5.44% 8.56%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000).............. $203,366 $75,464(b)
Ratio of expenses to average net assets........ 1.05% 1.28%(b)
Ratio of net investment income to average net
assets........................................ 0.66% 0.40%(b)
Ratio of expenses to average net assets*....... 1.09% 1.32%(b)
Ratio of net investment income (loss) to
average net assets*........................... 0.62% (0.36%)(b)
Portfolio Turnover (e)......................... 120.42% 113.72%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 3, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
107
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Small Cap Fund
-------------------------------
Class A
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $10.66 $10.07
------ ------
Investment Activities
Net investment income (loss)................. 0.02 (0.01)
Net realized and unrealized gain on
investments................................. 0.10 0.60
------ ------
Total from Investment Activities............. 0.12 0.59
------ ------
Distributions
Net investment income........................ (0.03) --
In excess of net investment income........... --(c) --
Net realized gains........................... (0.35) --
------ ------
Total Distributions.......................... (0.38) --
------ ------
Net Asset Value, End of Period................ $10.40 $10.66
====== ======
Total Return (excludes sales charges)......... 1.51% 5.91%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 330 $ 93
Ratio of expenses to average net assets....... 1.66% 1.84%(b)
Ratio of net investment income (loss) to
average net assets........................... 0.30% (0.26%)(b)
Ratio of expenses to average net assets*...... 2.31% 2.50%(b)
Ratio of net investment loss to average net
assets*...................................... (0.35%) (0.91%)(b)
Portfolio Turnover (e)........................ 98.73% 60.08%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 8, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
108
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Small Cap Fund
-------------------------------
Class B
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $10.61 $ 9.78
------ ------
Investment Activities
Net investment loss.......................... (0.03) (0.03)
Net realized and unrealized gain on
investments................................. 0.08 0.86
------ ------
Total from Investment Activities............. 0.05 0.83
------ ------
Distributions
Net investment income........................ --(c) --
In excess of net investment income........... --(c) --
Net realized gains........................... (0.35) --
------ ------
Total Distributions.......................... (0.35) --
------ ------
Net Asset Value, End of Period................ $10.31 $10.61
====== ======
Total Return (excludes sales charge).......... 0.85% 8.56%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $ 214 $ 82
Ratio of expenses to average net assets....... 2.41% 2.59%(b)
Ratio of net investment loss to average net
assets....................................... (0.45%) (1.00%)(b)
Ratio of expenses to average net assets*...... 2.55% 2.73%(b)
Ratio of net investment loss to average net
assets*...................................... (0.59%) (1.15%)(b)
Portfolio Turnover (e)........................ 98.73% 60.08%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 20, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
109
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Small Cap Fund
-------------------------------
Class Y
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period........... $ 10.67 $ 10.00
------- -------
Investment Activities
Net investment income......................... 0.05 --
Net realized and unrealized gain on
investments.................................. 0.10 0.67
------- -------
Total from Investment Activities Total from
Investment Activities........................ 0.15 0.67
------- -------
Distributions
Net investment income......................... (0.05) --
In excess of net investment income............ --(c) --
Net realized gains............................ (0.35) --
------- -------
Total Distributions........................... (0.40) --
------- -------
Net Asset Value, End of Period................. $ 10.42 $ 10.67
======= =======
Total Return................................... 1.82% 6.75%(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000).............. $36,962 $31,812
Ratio of expenses to average net assets........ 1.41% 1.52%(b)
Ratio of net investment income to average net
assets........................................ 0.52% 0.08%(b)
Ratio of expenses to average net assets*....... 1.55% 1.66%(b)
Ratio of net investment income (loss) to
average net assets*........................... 0.38% (0.06%)(b)
Portfolio Turnover (e)......................... 98.73% 60.08%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Not Annualized.
(b) Annualized.
(c) Less than $0.01 per share.
(d) Period from December 3, 1998 (commencement of operations) to July 31,
1999.
(e) 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.
110
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Balanced Fund
-------------------------------
Class A
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period........... $ 9.79 $10.00
------ ------
Investment Activities
Net investment income......................... 0.16 0.01
Net realized and unrealized gain (loss) on
investments.................................. 1.70 (0.21)
------ ------
Total from Investment Activities.............. 1.86 (0.20)
------ ------
Distributions
Net investment income......................... (0.17) (0.01)
Net realized gains............................ (0.03) --
------ ------
Total Distributions........................... (0.20) (0.01)
------ ------
Net Asset Value, End of Period................. $11.45 $ 9.79
====== ======
Total Return (excludes sales charges).......... 19.19% (1.95%)(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000).............. $ 259 $ 62
Ratio of expenses to average net assets........ 1.22% 1.38%(b)
Ratio of net investment income to average net
assets........................................ 1.58% 1.45%(b)
Ratio of expenses to average net assets*....... 1.86% 2.03%(b)
Ratio of net investment income to average net
assets*....................................... 0.94% 0.80%(b)
Portfolio Turnover (c)......................... 54.33% 5.47%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 June 21, 1999 (commencement of operations) to July 31, 1999.
See notes to financial statements.
111
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Balanced Fund
-------------------------------
Class B
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period........... $ 9.78 $10.00
------ ------
Investment Activities
Net investment income......................... 0.09 0.01
Net realized and unrealized gain (loss) on
investments.................................. 1.70 (0.22)
------ ------
Total from Investment Activities.............. 1.79 (0.21)
------ ------
Distributions
Net investment income......................... (0.10) --
In excess of net investment income............ -- (0.01)
Net realized gains............................ (0.03) --
------ ------
Total Distributions........................... (0.13) (0.01)
------ ------
Net Asset Value, End of Period................. $11.44 $ 9.78
====== ======
Total Return (excludes sales charge)........... 18.37% (2.09%)(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000).............. $1,192 $ 307
Ratio of expenses to average net assets........ 1.97% 2.16%(b)
Ratio of net investment income to average net
assets........................................ 0.83% 0.81%(b)
Ratio of expenses to average net assets*....... 2.12% 2.31%(b)
Ratio of net investment income to average net
assets*....................................... 0.68% 0.66%(b)
Portfolio Turnover (c)......................... 54.33% 5.47%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 June 21, 1999 (commencement of operations) to July 31, 1999.
See notes to financial statements.
112
<PAGE>
PACIFIC CAPITAL FUNDS
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the period)
<TABLE>
<CAPTION>
Balanced Fund
-------------------------------
Class Y
For the Year For the Year
Ended Ended
July 31, 2000 July 31, 1999 (d)
------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period.......... $ 9.79 $ 10.00
-------- --------
Investment Activities
Net investment income (loss)................. 0.20 (0.03)
Net realized and unrealized gain (loss) on
investments................................. 1.70 (0.16)
-------- --------
Total from Investment Activities............. 1.90 (0.19)
-------- --------
Distributions
Net investment income........................ (0.20) (0.02)
Net realized gains........................... (0.03) --
-------- --------
Total Distributions.......................... (0.23) (0.02)
-------- --------
Net Asset Value, End of Period................ 11.46 $ 9.79
======== ========
Total Return.................................. 19.57% (1.94%)(a)
Annualized Ratios/Supplementary Data:
Net Assets at end of period (000)............. $215,436 $184,081
Ratio of expenses to average net assets....... 0.98% 1.08%(b)
Ratio of net investment income to average net
assets....................................... 1.83% 1.69%(b)
Ratio of expenses to average net assets*...... 1.12% 1.22%(b)
Ratio of net investment income to average net
assets*...................................... 1.69% 1.55%(b)
Portfolio Turnover (c)........................ 54.33% 5.47%
</TABLE>
--------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) 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 June 21, 1999 (commencement of operations) to July 31, 1999.
See notes to financial statements.
113
<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 Growth Fund,
Diversified Fixed Income Fund, Ultra Short Government 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, 2000, 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 auditing standards generally
accepted in the United States. 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, 2000, by correspondence with
the custodian and brokers. 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,
2000, 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 accounting principles generally accepted in the United States.
Ernst & Young LLP
Columbus, Ohio
September 20, 2000
114
<PAGE>
INVESTMENT ADVISER
THE ASSET MANAGEMENT GROUP 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
[LOGO OF PACIFIC CAPITAL FUNDS]
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.
PCR-0008 9/00
