<PAGE> 1
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE
MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT
AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY
THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
[PACIFIC CAPITAL FUNDS LOGO]
May , 2000
------------------------
Ultra Short Government Fund
------------------------
Class A and Class B
Retail Shares
Class Y
Institutional Shares
The Securities and Exchange Commission has
not approved the shares described in this
prospectus or determined whether this prospectus
is accurate or complete. Anyone who tells you
otherwise is committing a crime.
<PAGE> 2
PACIFIC CAPITAL FUNDS TABLE OF CONTENTS
<TABLE>
<S> <C> <C> <C>
RISK/RETURN SUMMARY AND FUND EXPENSES
icon
Carefully review this 3 Ultra Short Government Fund
important section, which
summarizes the Fund's
investments, risks, past
performance, and fees.
INVESTMENT OBJECTIVES, POLICIES AND RISKS
icon
Review this section for 6 Ultra Short Government Fund
details on the Fund's 6 Main Risks
investment strategies and
risks.
FUND MANAGEMENT
icon
Review this section for 7 The Investment Adviser
details on the people and 7 Portfolio Managers
organizations who oversee 7 The Distributor and Administrator
the Fund.
SHAREHOLDER INFORMATION
icon
Review this section for 8 Pricing of Fund Shares
details on how shares are 9 Purchasing and Adding to Your Shares
valued, how to purchase, 15 Selling Your Shares
sell and exchange shares, 18 Distribution Arrangements/Sales Charges
related charges, and 23 Exchanging Your Shares
payments of dividends and 24 Dividends, Distributions and Taxes
distributions.
</TABLE>
2
<PAGE> 3
icon
RISK/RETURN SUMMARY AND FUND EXPENSES ULTRA SHORT GOVERNMENT
FUND
RISK/RETURN SUMMARY
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE High current income consistent with preservation of capital
PRINCIPAL The Fund invests primarily in short-term debt securities
INVESTMENT STRATEGIES issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, and in short-term investment grade
corporate debt securities issued by U.S. companies and state
and local government issuers. The Fund may from time to time
invest a substantial portion or all of its assets in certain
categories of U.S. Government securities that pay interest
which is exempt from Hawaii income tax. To achieve greater
price stability than a long-term or intermediate-term bond
fund, the Fund's portfolio securities will have effective
maturities of less than three years at the time of purchase.
The Fund focuses on maintaining the "duration" or interest
rate sensitivity of its overall investment portfolio between
50% and 150% of a one-year U.S. Treasury note, and varies
within that range from time to time in response to actual
and expected interest rate and economic changes.
PRINCIPAL Although the Fund invests in short-term securities, it is
INVESTMENT RISKS not a money market fund. Because the value of the Fund's
investments will fluctuate with market conditions, so will
the value of your investment in the Fund. You could lose
money on your investment in the Fund, or the Fund could
underperform other investments.
The values of the Fund's investments fluctuate in response
to movements in interest rates. If rates rise, the values of
debt securities generally fall. The longer the duration of
the Fund's investment portfolio, the greater the fluctuation
in value. The values of any of the Fund's investments may
also decline in response to events affecting the issuer or
its credit rating.
WHO MAY Consider investing in the Fund if you:
WANT TO INVEST? - want less fluctuation in the value of your investment than
a long-term bond fund
- want a high level of liquidity
- want professional portfolio management
This Fund is not appropriate for anyone seeking :
- guaranteed safety of principal
- income that is not subject to federal income tax
- capital appreciation
An investment in the Fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
</TABLE>
3
<PAGE> 4
RISK/RETURN SUMMARY AND FUND EXPENSES ULTRA SHORT GOVERNMENT FUND
- -
FEES AND EXPENSES
The fees and expenses for each Class are
based upon the estimated operating expenses
of that Class for the fiscal period ended
July 31, 2000. (The Fund commenced
operations on May 31, 2000.)
<TABLE>
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
(EXPENSES PAID BY YOU DIRECTLY) A SHARES B SHARES Y SHARES
Maximum sales charge (load) on
purchases (as a % of offering
price) 1.75%(1,4) None(4) None
Maximum deferred sales charge
(load) (as a % of offering price
or sale price, whichever is less) None(2) 5.00%(3) None
ANNUAL FUND OPERATING EXPENSES
(FEES PAID FROM FUND ASSETS) A SHARES B SHARES Y SHARES
Management fee(*) 0.40% 0.40% 0.40%
Distribution (12b-1) fee 0.75%(*) 1.00% 0.00%
Other expenses(*) 0.65% 0.65% 0.65%
Total Fund operating expenses(*) 1.80% 2.05% 1.05%
</TABLE>
* Until August 1, 2002, the Advisor has
agreed to limit the Management fee and
reimburse Other expenses so combined they
do not exceed 0.40%. The Distributor is
limiting the 12b-1 fees for Class A shares
to 0.25%. TOTAL FUND OPERATING EXPENSES
AFTER THESE FEE WAIVERS AND REIMBURSEMENTS
WOULD BE 0.65%, 1.40%, AND 0.40% FOR CLASS
A, B AND Y SHARES, RESPECTIVELY.
(1) Lower sales charges are available depending upon the amount invested.
(2) For investments of $1 million or more, a Contingent Deferred Sales Charge
is applicable to redemptions within one year of purchase.
(3) A Contingent Deferred Sales Charge applies to your redemption of Class B
shares before the sixth anniversary of your purchase, declining from 5%
within the first year to 0% after the sixth year.
(4) Long-term shareholders may pay indirectly more than the equivalent of the
maximum permitted front-end sales charge due to the recurring nature of 12b-1
fees.
As an investor in the Ultra
Short Government Fund, you
will pay the following
fees and expenses.
Shareholder transaction
fees are paid from your
account. Annual Fund
operating expenses are
paid out of Fund assets,
and are reflected in the
share price. If you
purchase shares through a
broker or other investment
representative, including
an affiliate of The Asset
Management Group of Bank
of Hawaii, they may charge
you an account-level fee
for additional services
provided to you in
connection with your
investment in the Fund.
CONTINGENT DEFERRED
SALES CHARGE
Class B shares impose a back
end sales charge (load) if
you sell your shares
before a certain period of
time has elapsed. This is
called a Contingent
Deferred Sales Charge
("CDSC").
4
<PAGE> 5
RISK/RETURN SUMMARY AND FUND EXPENSES ULTRA SHORT GOVERNMENT FUND
- -
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C>
1 3
YEAR YEARS
CLASS A SHARES $355 $731
CLASS B SHARES
Assuming redemption $708 $943
Assuming no redemption $208 $643
CLASS Y SHARES $107 $334
</TABLE>
After approximately eight years, Class B
shares will automatically convert to Class
A shares.
Use this table to compare fees
and expenses of the Fund with
those of other funds. It
illustrates the amount of
fees and expenses you would
pay assuming the following:
- $10,000 investment in the
Fund
- 5% annual return
- no changes in the Fund's
operating expenses
Because this example is
hypothetical and for
comparison only, your actual
costs will be different.
Currently, the Class B shares of
the Fund are not being
offered to the public.
PERFORMANCE INFORMATION
Because this Fund has been
operating for less than one
calendar year, performance
information is not included.
5
<PAGE> 6
icon
INVESTMENT OBJECTIVES, POLICIES AND RISKS
- -
ULTRA SHORT GOVERNMENT FUND
The Ultra Short Government Fund seeks to provide you with current income
consistent with preservation of capital.
Normally, the Fund invests primarily in short-term debt securities issued or
guaranteed by the U.S. Government, its agencies or instrumentalities, and in
short-term investment grade corporate debt securities issued by U.S.
companies and state and local government issuers. The Fund can also invest in
other kinds of debt instruments of domestic issuers, and can use certain
investment techniques for the purpose of cash flow management.
To achieve greater price stability than a long-term or intermediate-term bond
fund, the Fund invests in portfolio securities which have effective
maturities of less than three years at the time of purchase. The Fund focuses
on maintaining the "duration" or interest rate sensitivity of its overall
investment portfolio between 50% and 150% of a one-year U.S. Treasury note.
The Fund seeks to increase its duration to take advantage of expected
declines in short-term interest rates, and to decrease its duration when it
expects short-term rates to increase.
- - MAIN RISKS
DEBT SECURITIES. The values of the debt securities held by the Fund fluctuate
in response to movements in interest rates. When rates rise, the values
generally fall, and when rates decline, the values generally increase,
although these fluctuations are less for intermediate and long-term
securities. In addition, the issuers of any of the debt securities held by
the Fund may fail to pay interest or principal when due, although the U.S.
Treasury securities held by the Fund are direct obligations of the U.S.
Government.
The Fund generally only acquires securities that are rated "investment grade"
at the time of purchase, which means they are rated in one of the top four
categories by a nationally recognized statistical rating organization or are
unrated obligations that the Adviser determines are of comparable quality.
However, obligations with the lowest of these ratings have some speculative
characteristics, and changes in economic conditions are more likely to lead
to the issuer's weakened capacity to make principal and interest payments
than higher rated securities. If the rating of a security declines after the
Fund buys it, or it is no longer rated, the Adviser will decide whether the
Fund should continue to hold the security.
U.S. Government securities include not only U.S. Treasury obligations, but
also obligations of various agencies and instrumentalities of the U.S.
Government. Some of these are supported by the full faith and credit of the
U.S. Treasury, but others are supported only by the issuer's right to borrow
from the U.S. Treasury, by the discretionary authority of the U.S. Government
to purchase the agency's obligations, or by the instrumentalities' own
credit. The U.S. Government might not provide financial support to
instrumentalities it sponsors if it is not legally obligated to do so.
However, the Fund will invest in the obligations of such instrumentalities
only when the Adviser believes that the credit risk is minimal.
6
<PAGE> 7
icon
FUND MANAGEMENT
- -
THE INVESTMENT ADVISER
The Asset Management Group of Bank of Hawaii (the "Adviser"), 111 S. King
Street, Honolulu, Hawaii 96813, formerly known as Pacific Century Trust, is
the adviser for the Fund. The Adviser has managed the financial assets of
corporations and institutional investors for more than a century. The Asset
Management Group of Bank of Hawaii is among the top 50 trust firms in the
United States based on assets under management and oversees more than $13
billion in client assets. The Adviser's investment management
team -- including portfolio managers, financial analysts and economists -- is
responsible for nearly $8 billion of these assets.
For these advisory services, the Adviser will receive fees at the annual rate
of up to .40% of the Fund's average daily net assets.
- - PORTFOLIO MANAGERS
Management of the Fund is coordinated by the Adviser's investment unit, which
is staffed with more than 40 people, including seven Chartered Financial
Analysts and six M.B.A.'s. All management decisions with respect to the Fund
are made by a committee, with individual portfolio managers having day-to-day
responsibility for managing the Fund.
Edward Haik, Vice President at The Asset Management Group of Bank of Hawaii,
is the portfolio manager for the Fund. Mr. Haik has nine years prior
experience in the investment industry, his most recent four years at The
Asset Management Group of Bank of Hawaii. Prior to joining the Adviser, he
held positions at Garban Tokyo, Ltd., Cantor Fitzgerald Securities, and
Merrill Lynch. Mr. Haik earned a Bachelor of Arts degree from Holy Cross
College in 1988.
- - THE DISTRIBUTOR AND ADMINISTRATOR
BISYS Fund Services, LP ("BISYS") is the Fund's distributor and BISYS Fund
Services Ohio, Inc. is the Fund's administrator. The address of each is 3435
Stelzer Road, Columbus, Ohio 43219.
7
<PAGE> 8
icon
SHAREHOLDER INFORMATION
PRICING OF FUND SHARES
---------------------------
HOW NAV IS CALCULATED
NAV is calculated by adding
the total value of the
Fund's investments and
other assets attributable
to Class A, B or Y shares,
subtracting its liabilities
attributable to Class A, B
or Y shares, and then
dividing that figure by the
number of outstanding Class
A, B or Y shares of the
Fund:
NAV =
Total Assets - Liabilities
------------------------------------------------------------------------------
Number of Shares
Outstanding
Locate your Fund's NAV
daily in The Wall Street
Journal and other
newspapers or call
800-258-9232 for
information.
---------------------------
The price of the Fund's shares is based on its per share net asset value
("NAV"). The NAV for Class A, B or Y
shares of the Fund is determined and
its shares are priced at the close of
regular trading on the New York Stock
Exchange (normally at 4 p.m. Eastern
time) on days the Exchange is open.
Your order will be priced at the next
NAV calculated after your order is
accepted by the Fund (plus any
applicable sales charge).
The Fund's securities are valued at current market prices except for debt
obligations with remaining maturities
of 60 days or less which are valued at
amortized cost. If market quotations
are not available, securities will be
valued by a method that the Board of
Trustees believes accurately reflects
fair value.
8
<PAGE> 9
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES -- CLASS A AND B SHARES
<TABLE>
<CAPTION>
MINIMUM INVESTMENTS INITIAL INVESTMENT SUBSEQUENT
<S> <C> <C>
Regular
(non-retirement) $1,000 $50
----------------------------------------------------------
Retirement (IRA) $250 $50
----------------------------------------------------------
Auto Invest Plan $100 $50
</TABLE>
All purchases must be in U.S. dollars. A
fee may be charged for any checks that do
not clear. Third-party checks are not
accepted.
The Fund may waive its minimum purchase
requirement, and the Distributor may reject
a purchase order, if the Distributor
decides this is in the best interest of the
Fund's shareholders. The Fund reserves the
right to suspend or modify the continuous
offering of its shares.
You can purchase the Fund
through the Pacific
Capital Funds'
Distributor or through
brokers and other
investment
representatives,
including an affiliate
of the Adviser, which
may charge additional
fees and may require
higher minimum
investments or impose
other limitations on
buying and selling
shares. If you purchase
shares through an
investment
representative, it is
responsible for
transmitting orders to
the Distributor by the
Fund's close of business
and may have an earlier
cut-off time for
purchase and sale
requests. Consult your
investment
representative or
institution for specific
information.
-----------------------------------------------------------------------------
AVOID 31% TAX WITHHOLDING
The Fund must withhold 31% of your taxable dividends, capital gains
distributions and redemptions if you have not provided the Fund with your
taxpayer identification number in compliance with IRS rules. To avoid this,
make sure you provide your correct tax identification number (social security
number for most investors) on your account application.
-----------------------------------------------------------------------------
9
<PAGE> 10
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES -- CLASS A AND B SHARES
CONTINUED
INSTRUCTIONS FOR OPENING OR
ADDING TO AN ACCOUNT
BY REGULAR MAIL
Initial Investment:
If purchasing through your financial advisor or brokerage account, simply
tell your advisor or broker that you wish to purchase shares of the Fund and
he or she will take care of the necessary documentation. For all other
purchases follow the instructions below.
1. Carefully read, complete and sign the account application. Establishing
your account privileges now saves you the inconvenience of having to add
them later.
2. Make check, bank draft or money order payable to "Pacific Capital Funds"
and include the name of the Fund on the check.
3. Mail to: Pacific Capital Funds, P.O. Box 182130, Columbus, OH 43218-2130
Subsequent Investments:
1. Use the investment slip attached to your account statement.
Or, if unavailable,
2. Include the following information on a piece of paper:
- Fund name
- Share class
- Amount invested
- Account name
- Account number
Include your account number on your check.
3. Mail investment slip and check to: Pacific Capital Funds,
P.O. Box 182130, Columbus, OH 43218-2130
BY OVERNIGHT SERVICE
See instructions 1-2 above.
3. Send to: Pacific Capital Funds,
c/o BISYS Fund Services,
Attn: T.A. Operations, 3435 Stelzer Road, Columbus, OH 43219.
BY ELECTRONIC PURCHASE
Your bank must participate in the Automated Clearing House (ACH) and must be
a U.S. bank. Your bank or broker may charge for this service.
Establish the electronic purchase option on your account application or call
800-258-9232. Your account can generally be set up for electronic purchases
within 15 days.
Call 800-258-9232 to arrange a transfer from your bank account.
QUESTIONS?
Call 800-258-9232 or
your
investment
representative.
ELECTRONIC VS. WIRE TRANSFER
Wire transfers allow financial institutions to send funds to each other, almost
instantaneously. With an
electronic purchase or
sale, the transaction is
made through the
Automated Clearing House
(ACH), which may take up
to eight days to clear.
There is generally no fee
for ACH transactions.
10
<PAGE> 11
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES -- CLASS A AND B SHARES
CONTINUED
BY WIRE TRANSFER
Note: Your bank may charge a wire transfer fee.
Please phone the Funds at 800-258-9232 for instructions on opening an account
or purchasing additional shares by wire transfer.
AUTO INVEST PLAN
You can make automatic investments in the Fund from your bank account,
through payroll deduction, or from your federal employment, social security
or other regular government checks. Automatic investments can be as little as
$50, once you've invested the $100 minimum required to open the account.
To Invest Regularly from Your Bank Account:
1) Complete the Auto Invest Plan portion of your Account Application. Make
sure you note:
J your bank name, address, and account number
J the amount you want to invest automatically (minimum $50)
J how often you want to invest (monthly or quarterly)
2) Attach a voided personal check.
To Invest Regularly from Your Pay Check or Government Check:
Call 800-258-9232 for an enrollment form.
The Fund reserves the right to change or eliminate these privileges at any
time with 60 days notice. The Fund also reserves the right to reject any
purchase or to suspend or modify the continuous offering of its shares.
11
<PAGE> 12
SHAREHOLDER INFORMATION
- -
PURCHASING AND ADDING TO YOUR SHARES -- CLASS Y SHARES
Class Y shares are sold by the Distributor, BISYS. Only institutions
(including Bank of Hawaii and its affiliated and correspondent banks)
("Institutions") acting on behalf of customers having a qualified trust
account, employee benefit account or other qualifying account at such
Institutions are eligible to invest in Class Y shares. Class Y shares may not
be purchased by individual investors, either directly or through brokerage
accounts.
Class Y shares purchased through qualifying accounts may be held in separate
accounts in the name of the person or persons who purchased the shares, but
dividends and distributions relating to such shares may not be reinvested and
no additional Class Y shares may be purchased for such separate accounts
unless the account holder qualifies to purchase additional Class Y shares. If
you have purchased Class Y shares of any Fund and do not qualify to purchase
additional Class Y shares, you may make an additional investment in the Fund
by purchasing Class A or Class B shares. If you have purchased Class Y
shares, but no longer qualify to make an additional investment, we will
convert your holdings to Class A shares of the same Fund. As a shareholder of
Class A shares, you will be permitted to reinvest dividends and distributions
relating to your share holdings, but your investment will be subject to the
higher expenses associated with Class A shares. See "Exchange Privileges and
Conversion Feature" below.
Qualified accounts maintained by or on behalf of certain persons
("Customers") by an Institution may purchase Class Y shares of the Funds
through procedures established by BISYS. These procedures may include
instructions under which a Customer's account is automatically "swept" at
least once a week and amounts in excess of a minimum amount agreed upon by an
Institution and its Customer are invested by BISYS in shares of a Fund.
No sales charge (load) is imposed at the time you purchase or sell Class Y
shares. Depending upon the terms of your Customer account, an Institution may
charge your account fees for services provided in connection with investment
in the Funds. The Institution will provide you with information concerning
these services and any charges.
-----------------------------------------------------------------------------
AVOID 31% TAX WITHHOLDING
A Fund must withhold 31% of your taxable dividends, capital gains
distributions and redemptions if you have not provided the Fund with your
taxpayer identification number in compliance with IRS rules. To avoid this,
make sure you provide your correct tax identification number (social security
number for most investors) on your account application.
-----------------------------------------------------------------------------
12
<PAGE> 13
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES -- CLASS Y SHARES
CONTINUED
INSTRUCTIONS FOR OPENING OR
ADDING TO AN ACCOUNT
BY REGULAR MAIL
Initial Investment:
1. Contact BISYS at 800-258-9232 to request an application.
2. Make check, bank draft or money order payable to "Pacific Capital Funds"
and include the name of the appropriate Fund(s) on the check.
3. Mail to: Pacific Capital Funds, P.O. Box 182130, Columbus, OH 43218-2130
Subsequent Investments:
1. Use the investment slip attached to your account statement.
Or, if unavailable
2. Include the following information on a piece of paper:
- Fund name
- Share class
- Amount invested
- Account name
- Account number
Include your account number on your check.
3. Mail investment slip and check to:
Pacific Capital Funds
P.O. Box 182130
Columbus, OH 43218-2130
BY OVERNIGHT SERVICE
See instructions 1-2 above for subsequent investments.
3. Send to: Pacific Capital Funds, c/o BISYS Fund Services,
Attn: T.A. Operations, 3435 Stelzer Road, Columbus, OH 43219.
BY ELECTRONIC PURCHASE
Your bank must participate in the Automated Clearing House (ACH) and must be
a U.S. bank.
Your bank or broker may charge for this service.
Establish the electronic purchase option on your account application or call
800-258-9232. Your account can generally be set up for electronic purchases
within 15 days.
Call 800-258-9232 to arrange a transfer from your bank account.
QUESTIONS?
Call 800-258-9232 or
your
investment
representative.
ELECTRONIC VS. WIRE TRANSFER
Wire transfers allow financial institutions to send funds to each other, almost
instantaneously. With an
electronic purchase or
sale, the transaction is
made through the
Automated Clearing House
(ACH), which may take up
to eight days to clear.
There is generally no fee
for ACH transactions.
13
<PAGE> 14
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES -- Y SHARES
CONTINUED
BY WIRE TRANSFER
Note: Your bank may charge a wire transfer fee.
Please phone the Funds at 800-258-9232 for instructions on opening an account
or purchasing additional shares by wire transfer.
You can add to your account by using the convenient options described above.
The Funds reserve the right to change or eliminate these privileges at any
time with 60 days notice. The Funds also reserve the right to reject any
purchase or to suspend or modify the continuous offering of their shares.
14
<PAGE> 15
SHAREHOLDER INFORMATION
SELLING YOUR SHARES
INSTRUCTIONS FOR SELLING SHARES
WITHDRAWING MONEY FROM YOUR FUND INVESTMENT
As a mutual fund shareholder, you are
technically selling shares when you request
a withdrawal in cash. This is also known as
redeeming shares or a redemption of shares.
CONTINGENT DEFERRED SALES CHARGE
When you sell Class B shares, you will be
charged a fee for any shares that have not
been held for a sufficient length of time.
(You will also pay a fee for Class A shares
sold within one year of a purchase of $1
million or more.) These fees will be deducted
from the money paid to you. See the section on
"Distribution Arrangements/Sales Charges"
below for details.
You can sell your shares at
any time. Your sales price
will be the next NAV after
your sell order is
received by the Fund or
your investment
representative. Normally
you will receive your
proceeds within a week
after your request is
received.
If selling shares through your financial advisor or broker, ask him or her
for redemption procedures. Your advisor and/or broker may have transaction
minimums and/or transaction times which will affect your redemption. For all
other sales transactions, follow the instructions below.
BY TELEPHONE (UNLESS YOU HAVE DECLINED TELEPHONE SALES PRIVILEGES)
Call 800-258-9232 with instructions as to how you want to receive your funds
(mail, wire, electronic transfer). See "General Policies on Selling Shares"
below.
BY MAIL (SEE "GENERAL POLICIES ON SELLING SHARES -- REDEMPTIONS IN WRITING
REQUIRED" BELOW.)
1. Call 800-258-9232 to request redemption forms (if your account is an IRA
or another form of retirement plan), or write a letter of instruction
indicating:
- your Fund and account number
- amount you want to redeem
- address where your check should be sent
- account owner signature
2. Mail to: Pacific Capital Funds, P.O. Box 182130, Columbus, OH 43218-2130
BY OVERNIGHT SERVICE
1. See instruction 1 above.
2. Send to: Pacific Capital Funds, c/o BISYS Fund Services, Attn: T.A.
Operations, 3435 Stelzer Road, Columbus, OH 43219
15
<PAGE> 16
SHAREHOLDER INFORMATION
SELLING YOUR SHARES
CONTINUED
WIRE TRANSFER
You must select this option on your account application.
The Fund may charge a wire transfer fee. Note: Your financial institution may
also charge a separate fee.
Call 800-258-9232 to request a wire transfer. If you call by 4 p.m. Eastern
time, your payment will normally be wired to your bank on the next business
day. Otherwise, it will normally be wired on the second business day after
your call.
ELECTRONIC REDEMPTIONS
Your bank must participate in the Automated Clearing House (ACH) and must be
a U.S. bank.
Note: Your bank may charge for this service.
Call 800-258-9232 to request an electronic redemption.
If you call by 4 p.m. Eastern time, the NAV of your shares will normally be
determined on the same day and the proceeds will normally be credited within
8 days. Otherwise, it will normally take up to 9 days.
AUTO WITHDRAWAL PLAN
You can receive automatic payments from your Class A shares account on a
monthly or quarterly basis. The minimum withdrawal is $100. To activate this
feature:
- Make sure you've checked the appropriate box on the account application.
Or call 800-258-9232.
- Include a voided personal check.
- Your account must have a value of $5,000 or more to start withdrawals.
- If the value of your account falls below $1,000, you may be asked to
invest more to bring the account back to $1,000, or we may close your
account and mail the proceeds to you.
QUESTIONS?
Call 800-258-9232 or
your
investment
representative.
16
<PAGE> 17
SHAREHOLDER INFORMATION
- -
GENERAL POLICIES ON SELLING SHARES
REDEMPTIONS IN
WRITING REQUIRED
You must request redemption in writing in the following situations:
1. All requests for redemptions from individual retirement accounts ("IRAs")
must be in writing.
2. Redemption requests require a signature guarantee when:
- You ask us to make the check payable to someone who is not the owner of
the account
- You ask us to mail the check to an address that is not the address on
your account
- You ask us to wire the proceeds to a commercial bank account that is not
designated on your account application
- The redemption proceeds exceed $50,000
You must obtain a signature guarantee from members of the STAMP (Securities
Transfer Agents Medallion Program), MSP (New York Stock Exchange Medallion
Signature Program) or SEMP (Stock Exchanges Medallion Program). Members are
subject to dollar limitations which must be considered when requesting their
guarantee. The Transfer Agent may reject any signature guarantee if it
believes the transaction would otherwise be improper.
TELEPHONE REDEMPTIONS
The Fund makes every effort to ensure that telephone redemptions are only
made by authorized traders. All telephone calls are recorded for your
protection and you will be asked for information to verify your identity.
Because of these precautions, unless you have specifically indicated on your
application that you do not want the telephone redemption feature, you may be
responsible for any fraudulent telephone orders. If appropriate precautions
have not been taken, the Fund, the Transfer Agent, the Adviser and/or the
Distributor may be liable for losses due to unauthorized transactions.
At times of peak activity, it may be difficult to place requests by phone.
During these times, consider sending your request in writing.
REDEMPTIONS WITHIN 15 DAYS OF INITIAL INVESTMENT
When you have made an investment by check, you cannot receive any portion of
the redemption proceeds on the same investment until the Transfer Agent is
satisfied that the check has cleared (which may require up to 15 business
days). You can avoid this delay by purchasing shares with a certified check
or by wire.
REFUSAL OF REDEMPTION REQUEST
Payment for shares may be delayed under extraordinary circumstances or as
permitted by the Securities and Exchange Commission ("SEC") in order to
protect remaining shareholders.
REDEMPTION IN KIND
We reserve the right to make your redemption payment in securities rather
than cash, known as "redemption in kind." This could occur under
extraordinary circumstances, such as a very large redemption that could
affect the Fund's operations (for example, more than 1% of the Fund's net
assets). If we deem it advisable for the benefit of all shareholders, you
will receive securities equal in market value to your redemption price, net
of any CDSC. When you convert these securities to cash, you will pay
brokerage charges.
- -
17
<PAGE> 18
SHAREHOLDER INFORMATION
- -
GENERAL POLICIES ON SELLING SHARES
CONTINUED
CLOSING OF SMALL ACCOUNTS
If your account falls below $250, we may ask you to increase your balance to
the minimum investment amount. If it is still below $250 after 60 days, we
may close your account and send you the proceeds at the current NAV.
UNDELIVERABLE REDEMPTION CHECKS
If you choose to receive distributions in cash and distribution checks are
returned and marked as "undeliverable" or remain uncashed for six months,
your account will be changed automatically so that all future distributions
are reinvested in your account. Checks that remain uncashed for six months
will be canceled and the money reinvested in the Fund as of the cancellation
date. No interest is paid during the time the check is outstanding.
- - DISTRIBUTION ARRANGEMENTS/SALES CHARGES
This section describes the sales charges and fees you will pay as an investor
in different share classes offered by the Fund and ways to qualify for
reduced sales charges.
<TABLE>
<S> <C> <C> <C>
TYPES OF CHARGES CLASS A CLASS B CLASS Y
Sales Charge (Load) Front-end sales charge (at the No front-end sales charge. You None
time of your purchase); reduced may incur a contingent deferred
sales charges are available.(1) sales charge on shares redeemed
within six years after
purchase; shares automatically
convert to Class A shares after
8 years.
Distribution (12b-1) Subject to annual distribution Subject to annual distribution None
Fees fees of up to .75% of the fees of up to 1.00% of the
Fund's net assets. Fund's net assets.
Fund Expenses Lower annual expenses then Higher annual expenses than Lower annual expenses
Class B shares, and higher than Class A and Class Y shares. than
Class Y shares. Class A and
Class B shares.
<S> <C>
TYPES OF CHARGES
Sales Charge (Load)
Distribution (12b-1)
Fees
Fund Expenses
</TABLE>
(1) You may incur a contingent deferred sales charge on shares sold within
one year of a purchase of $1 million or more.
QUESTIONS?
Call 800-258-9232 or
your
investment
representative.
18
<PAGE> 19
SHAREHOLDER INFORMATION
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
CALCULATION OF SALES CHARGE
CLASS A SHARES
The Distributor sells Class A shares at their public offering price. This
price includes the initial sales charge. Therefore, part of the money you pay
for shares will be used to pay the sales charge. The remainder is invested in
Fund shares. The sales charge decreases with larger purchases. There is no
sales charge on reinvested dividends and distributions.
The current sales charge rates and commissions paid to investment
representatives are as follows:
<TABLE>
<CAPTION>
SALES CHARGE SALES CHARGE DEALER PAYMENT
YOUR AS A % OF AS A % OF AS A % OF
INVESTMENT OFFERING PRICE YOUR INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
Up to $100,000 1.75% 1.78% 1.58%
----------------------------------------------------------------------------------
$100,000 up to $250,000 1.25% 1.27% 1.13%
----------------------------------------------------------------------------------
$250,000 up to $500,000 0.80% 0.81% 0.72%
----------------------------------------------------------------------------------
$500,000 up to $1,000,000 0.50% 0.51% 0.45%
----------------------------------------------------------------------------------
$1,000,000 and above(1) 0.00% 0.00% 0.00%
</TABLE>
(1) You will pay a contingent deferred sales charge (CDSC) on these shares of
up to 1.00% of the purchase price if you redeem them in the first year after
purchase. The Distributor will base this charge on the lower of your cost for
the shares or their NAV at the time of sale. The CDSC does not apply to
reinvested distributions.
The Distributor pays securities dealers from its own resources up to 1.00% of
the offering price of Class A shares of the Fund for individual sales of $1
million to $5 million and 0.50% of the offering price of Class A shares of
the Fund for individual sales over $5 million.
The Distributor reserves the right to pay the entire sales charge to dealers.
BISYS may provide financial assistance in connection with pre-approved
seminars, conferences and advertising to the extent permitted by applicable
state or self-regulatory agencies, such as the National Association of
Securities Dealers.
19
<PAGE> 20
SHAREHOLDER INFORMATION
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
<TABLE>
<CAPTION>
YEARS CDSC AS A % OF
SINCE DOLLAR AMOUNT
PURCHASE SUBJECT TO CHARGE
<S> <C>
0-1 5.00%
1-2 4.00%
2-3 3.00%
3-4 3.00%
4-5 2.00%
5-6 1.00%
more than 6 None
</TABLE>
If you sell some but not all of your Class B shares, we will first redeem
certain shares not subject to the CDSC (i.e., shares purchased with
reinvested dividends) followed by shares subject to the lowest CDSC
(typically shares you have held for the longest time).
CONVERSION FEATURE -- CLASS B SHARES
- Your Class B shares automatically convert to Class A shares of the Fund
eight years after the end of the month of purchase. The dollar value of
Class A shares you receive will equal the dollar value of the B shares
converted.
- After conversion, your shares will be subject to the lower distribution
fees charged on Class A shares, which will increase your investment
return.
- You will not pay any sales charge, fees or taxes when your shares convert.
- If you purchased Class B shares of the Fund which you exchanged for Class
B shares of another Pacific Capital Fund, or vice versa, we will calculate
your holding period from the time of your original purchase of Class B
shares.
CLASS B SHARES
The Distributor sells Class B
shares at NAV, without any
up-front sales charge.
Therefore, all the money you
invest is used to purchase
Fund shares. However, if you
sell your Class B shares of
the Fund before the sixth
anniversary of purchase, you
will have to pay a contingent
deferred sales charge at the
time of sale. The CDSC will be
based on the lower of the NAV
at the time of purchase or the
NAV at the time of sale
according to the schedule to
the right. There is no CDSC on
reinvested dividends or
distributions. Imposition of
the CDSC and the distribution
fee on Class B shares is
limited by the NASD
asset-based sales charge rule.
20
<PAGE> 21
SHAREHOLDER INFORMATION
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
SALES CHARGE
REDUCTIONS
You may qualify for reduced sales charges under the following circumstances.
- LETTER OF INTENT. You inform the Fund in writing that you intend to
purchase enough shares over a 13-month period to qualify for a reduced
sales charge. You must include a minimum of 3% of the total amount you
intend to purchase with your letter of intent. Shares purchased under the
non-binding Letter of Intent will be held in escrow until the total
investment has been completed. If the Letter of Intent is not completed,
sufficient escrowed shares will be redeemed to pay any applicable
front-end sales charge.
- RIGHTS OF ACCUMULATION. When the value of shares you already own plus the
amount you intend to invest reaches the amount needed to qualify for
reduced sales charges, your added investment will qualify for the reduced
sales charge.
- COMBINATION PRIVILEGE. You can combine accounts of multiple Pacific
Capital Funds or accounts of immediate family household members (spouse
and children under 21) to reduce sales charges. Reduced prices are also
available for investors who are members of certain qualified groups.
SALES CHARGE WAIVERS
CLASS A SHARES
The following qualify for waivers of sales charges:
- Current and retired trustees, directors, employees, and family members of
the Trust, the Advisor and its affiliates or any other organization that
provides services to the Trust.
- Investors for whom The Asset Management Group of Bank of Hawaii or one of
its affiliates acts in a fiduciary, advisory, custodial, agency or similar
capacity (except those investors for whom The Asset Management Group of
Bank of Hawaii provides custodial services).
- Investors who purchase shares of the Fund through a retirement related
payroll deduction plan, a 401(k) plan, a 403(b) plan, or a similar plan
which by its terms permits purchases of shares.
- Other investment companies distributed by the Distributor.
- Investors who purchase shares with the proceeds from the recent redemption
of shares of any non-money market mutual fund with a front-end or back-end
sales charge of equal or greater value.
- Investors who purchase shares with the proceeds from the recent redemption
of Class Y Shares of the Trust.
BISYS must be notified in writing by you or your financial institution at
the time the purchase is made. A copy of your account statement showing
the redemption must accompany the notice.
REINSTATEMENT PRIVILEGE
If you have sold Class A or B shares of the Fund and decide to reinvest
in the Fund within a 120 day period, you will not be charged the
applicable sales load on amounts up to the value of the shares you sold.
You must provide a written reinstatement request and payment within 120
days of the date your instructions to sell were processed.
21
<PAGE> 22
SHAREHOLDER INFORMATION
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
CLASS B SHARES
The Distributor will waive the CDSC under certain circumstances, including
the following:
- If the redemption follows the death or disability of a shareholder (or
both shareholders in the case of joint accounts).
- If the redemption is made under an automatic withdrawal plan after the
participant reaches age 59 1/2, as long as the payments are no more than
10% of the account value annually (measured from the date the Transfer
Agent receives the request).
- If the redemption represents the minimum required distribution from a
retirement plan.
- If the shares being redeemed were purchased with reinvested dividends and
distributions.
See the Statement of Additional Information for other possible fee waivers.
DISTRIBUTION (12B-1) FEES AND SHAREHOLDER SERVICING FEES
12b-1 fees compensate the Distributor and other dealers and investment
representatives for services and expenses relating to the sale and
distribution of the Fund's shares and for providing shareholder services.
12b-1 fees are paid from Fund assets on an ongoing basis, and over time will
increase the cost of your investment and may cost you more than paying other
types of sales charges.
- The 12b-1 fees paid by the Fund vary by share class as follows:
1. Class A shares pay a 12b-1 fee of up to .75% of the average daily net
assets of the Fund.
2. Class B shares pay a 12b-1 fee of up to 1.00% of the average daily net
assets of the Fund. This will cause expenses for Class B shares to be
higher and dividends to be lower than for Class A shares.
- The higher 12b-1 fee on Class B shares, together with the CDSC, help the
Distributor sell Class B shares without an "up-front" sales charge. In
particular, these fees help the Distributor cover the cost of advancing
brokerage commissions to investment representatives.
- The Distributor may use up to .25% of the 12b-1 fee for shareholder
servicing and up to .75% for distribution.
Until further notice, the Distributor voluntarily intends to waive a portion
of its 12b-1 fee, so that the fee payable by the Fund will not exceed .25% of
the average daily net asset value attributable to the Fund's Class A shares
on an annual basis.
22
<PAGE> 23
SHAREHOLDER INFORMATION
EXCHANGING YOUR SHARES
You can exchange your
shares in the Fund for
shares of the same class of
another Pacific Capital
Fund, usually without
paying additional sales
charges (see "Notes"
below). Class A
shareholders may also
exchange their shares for
service class shares of
other investment companies
for which The Asset
Management Group of Bank of
Hawaii serves as investment
adviser. Class Y
shareholders may also
exchange their shares for
other investment companies
for which The Asset
Management Group of Bank of
Hawaii serves as Investment
Advisor. These are the
Pacific Capital Cash Assets
Trust, the Pacific Capital
Tax-Free Cash Assets Trust
and the Pacific Capital
U.S. Government Securities
Cash Assets Trust. No
transaction fees are
charged for exchanges.
You must meet the minimum
investment requirements for
the fund into which you are
exchanging.
NOTES ON EXCHANGES
- When exchanging from a Fund
that has no sales charge or a
lower sales charge to a Fund
with a higher sales charge,
you will pay the difference.
- The registration and tax
identification numbers of the
two accounts must be
identical.
- The Exchange Privilege may be
changed or eliminated at any
time after a 60-day notice to
shareholders.
- Be sure to read carefully the
Prospectus of any Fund or
other investment company into
which you wish to exchange
shares.
INSTRUCTIONS FOR EXCHANGING SHARES
Exchanges from one Pacific Capital Fund to another are taxable. You can make
exchanges by sending a written
request to Pacific Capital Funds,
P.O. Box 182130, Columbus, OH
43218-2130, or by calling
800-258-9232. Please provide the
following information:
- Your name and telephone number
- The exact name on your account and account number
- Taxpayer identification number (usually your social security number)
- Dollar value or number of shares you are exchanging
- The name of the Pacific Capital Fund from which the exchange is to be made
- The name of the Pacific Capital Fund into which the exchange is being made
See "Selling Your Shares" for important information about telephone
transactions.
To prevent disruption in the management of the Fund due to market timing
strategies, exchange activity may be
limited to four substantial
exchanges within one calendar year
period. The Fund may also refuse any
exchange order.
23
<PAGE> 24
SHAREHOLDER INFORMATION
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund's net investment income is paid to its shareholders monthly. Its net
capital gains are distributed to shareholders annually. Dividends payable on
Class A shares of the Fund are generally more than on Class B shares because
Class B shares have higher distribution expenses. Dividends payable on Class
Y shares of the Fund are generally more than on Class A or B shares, because
Class Y shares have no distribution expenses.
We automatically reinvest all income dividends and capital gains
distributions in additional shares of the same Class on the ex-dividend date
unless you request otherwise in writing to the Transfer Agent (at least 15
days prior to the distribution). The Distributor does not charge any fees or
sales charges on reinvestments. You may elect to receive your
dividends/distributions in cash either by check sent to your address or by
wire to your bank account.
The value of your shares will be reduced by the amount of dividends and
distributions. If you purchase shares shortly before the record date for a
dividend or the distribution of capital gains, you will pay the full price
for the shares and receive some portion of the price back as a taxable
dividend or distribution.
TAXES
Dividends generally are taxable as ordinary income. Taxes on capital gains
distributed by the Fund vary with the length of time the Fund has held the
security -- not how long you have been invested in the Fund.
Dividends are taxable in the year in which they are declared, even if they
appear on your account statement the following year. Dividends and
distributions are treated the same for federal income tax purposes whether
you receive them in cash or in additional shares.
You will be notified in January each year about the federal tax status of
distributions made by the Fund. Depending on your residence for tax purposes,
distributions also may be subject to state and local taxes, including
withholding taxes.
An exchange of shares is considered a sale, and any related gains may be
subject to federal and state taxes.
Foreign shareholders may be subject to special withholding requirements. A
penalty is charged on certain pre-retirement distributions from retirement
accounts. Consult your tax advisor about the federal, state and local tax
consequences in your particular circumstances.
The Fund may incur foreign income taxes in connection with some of its
foreign investments. Certain of these taxes may be credited to shareholders.
To the extent that at least 50% of the Fund is invested in obligations, the
interest from which are exempt from income tax under Federal Law, the Fund
will be able to pay out a portion of its dividends free of federal income tax
to the shareholders.
24
<PAGE> 25
SHAREHOLDER INFORMATION
HAWAII TAX INFORMATION
To the extent that at least 50% of the Fund is invested in obligations, the
interest from which are exempt from Hawaii income tax under Hawaii or Federal
law, the Fund will be able to pay out a portion of its dividends free of
Hawaii income tax to the shareholders who are Hawaii residents.
Dividends and distributions made by the Fund to Hawaii residents will
generally be treated for Hawaii income tax purposes in the same manner as
they are treated for federal income tax purposes.
If you are not a Hawaii resident you should not be subject to Hawaii income
taxation on dividends and distributions made by the Fund, but you will be
subject to taxes of other states and localities.
25
<PAGE> 26
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<PAGE> 27
For more information about the Pacific Capital Funds, the following documents
are available free upon request:
ANNUAL/SEMI-ANNUAL REPORTS:
The Fund's annual and semi-annual reports to shareholders contain detailed
information on the Fund's investments. The annual report includes a discussion
of the market conditions and investment strategies that significantly affected
the Fund's performance during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI):
The SAI provides more detailed information about the Pacific Capital Funds,
including operations and investment policies. It is incorporated by reference
and is legally considered a part of this prospectus.
You can get free copies of Annual/Semi-Annual Reports and the SAI, or request
other information and discuss your questions about the Funds, by contacting the
Bank of Hawaii or a broker that sells the Funds. Or contact us at:
PACIFIC CAPITAL FUNDS
P.O. BOX 182130
COLUMBUS, OHIO 43218-2130
TELEPHONE: 1-800-258-9232
You can review and copy the Annual and Semi-Annual Reports and the SAI at the
Public Reference Room of the Securities and Exchange Commission. You can get
text-only copies:
- - For a fee, by writing the Public Reference Section of the Commission,
Washington, D.C. 20549-0102, or calling 1-202-942-8090, or by electronic
request, by emailing the SEC at the following address: [email protected].
- - At no charge from the Edgar database on the Commission's Website at
http://www.sec.gov.
Investment Company Act file no. 811-7454.
5/31
PCP 0030
