UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07454
Pacific Capital Funds
(Exact name of registrant as specified in charter)
3435 Stelzer Rd Columbus, OH | 43219 | |
(Address of principal executive offices) | (Zip code) |
Citi Fund Services 3435 Stelzer Road Columbus, OH 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code: 614-470-8000
Date of fiscal year end: 7/31
Date of reporting period: 7/31/07
Item 1. | Reports to Stockholders. |
Table of Contents
Page 1 | ||
Fund Performance Review | Page 3 | |
Statements of Assets and Liabilities | Page 29 | |
Statements of Operations | Page 32 | |
Statements of Changes in Net Assets | Page 35 | |
Schedules of Portfolio Investments | Page 43 | |
Notes to Financial Statements | Page 75 | |
Financial Highlights | Page 87 | |
Report of Independent Registered Public Accounting Firm | Page 99 | |
Additional Tax Information | Page 100 | |
Trustees and Officers | Page 101 | |
Board Determinations | Page 104 | |
Expense Examples | Page 109 | |
Proxy Voting and Portfolio Holdings Information | Page 112 |
Dear Shareholders:
Thank you for investing with Pacific Capital Funds. We value the trust you place in us, and we seek to provide world-class investment management to help you meet your financial goals.
Pacific Capital Funds draw upon the investment expertise of the Asset Management Group of Bank of Hawaii (“AMG”). AMG represents the largest, most experienced staff of investment professionals in Hawaii and manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in assets on behalf of Bank of Hawaii clients. AMG has partnered with a select list of sub-advisors to provide Pacific Capital Funds’ shareholders with greater investment opportunities, broader diversification and access to an elite group of institutional money managers, including:
• | Chicago Equity Partners, LLC (“CEP”). We have expanded our relationship with CEP from Sub-Adviser on the Pacific Capital Mid-Cap Fund to Sub-Adviser on the Growth Stock Fund, Growth and Income Fund, and Value Fund as well. CEP specializes in core domestic equity markets. The company’s investment team averages 17 years experience and has over $12 billion in assets under management. |
• | First State Investments International, Limited, which specializes in single-country, regional and sector-specific investments, serves as Sub-Adviser to the Pacific Capital New Asia Growth Fund. |
• | Hansberger Global Investors, Inc. (“HGI”), founded in 1994 by former Templeton Worldwide President and CEO Thomas L. Hansberger, serves as Sub-Adviser to the Pacific Capital International Stock Fund. |
• | The Pacific Capital Small Cap Fund employs a multi-manager approach. Nicholas-Applegate Capital Management manages a portion of the Fund using a “systematic small cap” core strategy, Wellington Management Company, LLP manages a portion of the Fund using a small cap growth strategy, and Mellon Equity Associates, LLP manages a portion of the Fund using a small cap value strategy. |
Annual Review
The economy decelerated during the 12-month period ended July 31, 2007, largely because of a severe downturn in the housing market. Weakness in housing dragged on activity for related industries such as builders, furniture makers and home-improvement retailers. The housing slowdown also dampened mortgage refinancing activity, making less cash available for consumers to spend. As consumer spending drives more than two-thirds of economic activity, the decline in consumers’ discretionary incomes crimped overall economic growth.
Lower energy prices initially buoyed consumers’ spending power, but energy prices subsequently climbed and weighed on spending. Wages grew solidly, helping offset the effects of higher energy prices. But signs emerged early in 2007 that increasing numbers of borrowers with weak credit were defaulting on their mortgages, raising concerns that liquidity would tighten and choke off growth.
The Federal Reserve Board (the “Fed”) left the federal funds rate, its target short-term interest rate, unchanged at 5.25% throughout this 12-month period, and repeatedly expressed the belief that inflation posed the greatest threat to economic growth. The economy’s slowdown appeared to reduce inflationary pressures by the end of the period, causing observers to speculate that the Fed might lower interest rates before the end of the year.
Stocks post strong gains
Stock markets around the world rallied during the period, as strong global economic growth helped corporations post healthy profits. The S&P 500 Index, composed of large-capitalization U.S. stocks, gained 16.13%, while the MSCI EAFE Index of 21 developed foreign stock markets returned 24.42%.
Mergers and acquisitions, stock repurchases and other corporate activity helped fuel those gains. Public companies engaged in company acquisitions and stock buybacks at a rapid pace, even as private equity funds pursued unprecedented levels of corporate buyouts. Those trends served to reduce the supply of outstanding equities, driving up stock prices.
This fiscal year marked a change in leadership for U.S. stocks. Value stocks had outperformed growth stocks for several years: The Russell 3000® Value Index, which tracks value-oriented stocks of all sizes, generated an annualized return of 7.88% during the five years prior to the period ended July 31, 2006, while the Russell 3000® Growth Index posted an annualized loss of 0.28% during the same period. That trend reversed itself during this fiscal year, however, as the growth benchmark gained 19.24% while the value benchmark returned 12.97%.
Investors sought out growth stocks in the belief that growth-oriented companies will be better-positioned to maintain earnings growth as the economy slows. Investors also appeared to prize the relatively attractive valuations offered by growth stocks after more than a half-decade of lagging performance. Growth indices’ superior performance in part reflected a resurgence in technology stocks, which benefited from new product cycles.
In a similar reversal, the market’s largest stocks outperformed its smallest stocks: The Russell 1000® Index of large caps climbed 16.45% during the period under review, while small caps (as represented by the Russell 2000® Index) returned 12.12%. That followed a long run of superior performance from small stocks, which produced annualized gains of 8.99% during the half-decade leading into this fiscal year, compared to only 3.45% per year for large caps.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232, or visit the Funds’ website at pacificcapitalfunds.com.
1
Letter to Shareholders (cont.)
Investors favored the earnings stability that larger companies offered. The biggest U.S. firms also benefited from their global reach, as economies overseas produced stronger growth than did the U.S. economy. Currency movements gave an additional boost to U.S. multinationals: The U.S. dollar weakened, making American firms’ goods more competitive overseas while increasing the value of foreign revenues.
The stock market declined amid volatile trading during the last several weeks of the period, as investors became increasingly concerned that fallout from the defaults on sub-prime mortgages could lead to a liquidity crunch. Such a development could hurt stock returns by making borrowing more expensive, which in turn could cut into corporate profits, slow mergers and acquisitions and reduce overall economic growth.
Bond investors reassess risk
Bonds generally posted solid returns during this 12-month period. Treasury securities benefited throughout much of the period from slowing economic growth and weakening inflation, which appeared to make a Federal Reserve interest-rate cut more likely. For much of the fiscal year, long-term bonds offered lower yields than short-term bonds, which were anchored by the 5.25% federal funds rate.
Investors in early summer reassessed their expectation for a near-term rate cut when concerns about global inflation briefly jumped. Bond purchasers began demanding higher yields, which decreased the value of existing bonds. Those concerns quickly faded, however. Meanwhile, stock-market volatility and reports about severe problems in the market for sub-prime mortgages led investors to seek safety in Treasuries, pushing bond yields down and bond prices up. Furthermore, the credit market’s troubles led the market to again price in a fed funds rate cut.
Corporate bonds outperformed government securities during most of the period. Bonds issued by companies with relatively weak finances fared best during that time, as investors showed a willingness to take on additional risk in pursuit of higher returns. That environment changed abruptly in early summer, however, as concerns about liquidity caused a flight to safety. AMG manages the Pacific Capital fixed-income funds with an emphasis on quality, so that development has helped boost the funds’ performance relative to their peers.*
Outlook
We believe that valuations in the stock market are attractive given relatively low current interest rates and our outlook for solid corporate profits and economic growth. We expect that the environment going forward may favor quality in both the stock and bond markets.
The financial markets’ increased volatility highlights the importance of taking a long-term perspective on investing. Staying focused on the big picture, rather than on the market’s day-to-day gyrations, can help you avoid making the kind of impulsive and emotional investment decisions that dampen long-term returns. We urge you to build a diversified portfolio with allocations to stocks, bonds and other assets that are appropriate to your individual investment goals, and to maintain those allocations as long as they remain appropriate for your circumstances.
Thank you for your confidence in Pacific Capital Funds. If you have any questions, we encourage you to contact your registered investment professional, call Pacific Capital Funds at 1-800-258-9232 or visit the Funds’ website at www.pacificcapitalfunds.com.
Sincerely, |
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Tobias M. Martyn |
Senior Executive Vice President & Chief Investment Officer Asset Management Group of Bank of Hawaii |
The foregoing information and opinions and following management discussions and analysis are for general information only. The Asset Management Group of Bank of Hawaii does not guarantee the accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering of individual or personalized investment advice.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232, or visit the Funds’ website at pacificcapitalfunds.com.
* | For additional information regarding Fund performance, please refer to the Funds’ commentary section. |
NOTICE ABOUT DUPLICATE MAILINGS
In order to reduce expenses incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Pacific Capital Funds may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 1-800-258-9232.
2
Pacific Capital New Asia Growth Fund
Investment Style
Regional, multi-cap, growth
Investment Objective
Long-term capital appreciation by investing in a broadly diversified portfolio of companies located in Asia’s developing regions, excluding Japan. Investments are not limited to any particular size or sector.
Investment Considerations
An investment in this Fund entails the special risks of international investing, including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund’s share price is expected to be more volatile than that of a U.S.-only fund. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Follow active bottom-up investment approach |
• | Invest for absolute versus relative return |
• | Look outside benchmark representation for fresh opportunities |
• | Identify sensibly priced, high-quality companies that exhibit long-term growth potential |
Investment Management
Advised by Asset Management Group of Bank of Hawaii
Sub-Advised by First State Investments International Limited (since June 29, 2006)
• | First State Investments is part of Colonial First State Global Asset, the consolidated asset management business of the Commonwealth Bank of Australia |
• | The group’s combined investment businesses manage approximately $118.5 billion globally |
• | The group has offices in London, Edinburgh, Sydney, Hong Kong, Singapore and Jakarta |
• | Specialist in single country, regional, global and sector specific investments |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 46.07% (Class A Shares without sales charge), underperforming its benchmark, the MSCI® AC Far East Free Index1 (excluding Japan), which returned 54.63%.
What were the major factors in the market that influenced the Fund’s performance?
Asia’s outperformance was led by China as investor confidence was boosted by a series of successful initial public offerings in the Banking sector. Despite volatility and efforts by the government to subdue the stock market, China continued to perform on buoyant sentiment among retail investors. Malaysia was also a good performer as investors were attracted by its reasonable valuations. Hong Kong underperformed on concerns about rising interest rates and Taiwan lagged as the Information Technology sector remained subdued on lacklustre U.S. demand.
At a sector level, Energy and Materials were again very strong performers. Energy outperformed as the oil price rallied, and Materials were positively impacted by expectations of strong global growth and that commodity prices would remain at high levels for longer than expected. Information Technology continued to underperform on weak earnings by some essential stocks in the sector and a mixed product pricing outlook, and Utilities disappointed as investors sought less defensive sectors.
What helped the Fund’s performance?
Positions in China impacted positively due to the strong performance of the Chinese market, in particular China Resources Enterprise (Consumer Discretionary) and China Telecom (Telecom Services). The former outperformed due to improvement in its brewing and food retailing businesses as well as management’s ongoing commitment to corporate restructuring. The latter rose due to the company applying for a 3G licence in order to operate a high-speed mobile phone service.†
Other top performers included Keppel Corp (Singapore: Industrials), which reported a significant rise in profits due to increased demand for its platform and oil field services, and Hang Lung Group (Hong Kong: Financials), which is benefiting from increasing retail property demand in Mainland China’s second line cities. IOI (Malaysia: Consumer Staples) also aided returns after reporting strong profit growth due to higher palm oil prices and increased revenue from its manufacturing business.†
What hurt the Fund’s performance?
On the negative side, our position in Tanjong (Malaysia: Consumer Discretionary), a betting and power generation company, detracted from returns due to disappointing results as its gaming division suffered from a high payout ratio, and Singapore Telecom fell on concerns over margin sustainability in the core Singapore business as well as the potential for a price war in Australia.†
From the Industrials Sector, Cosco Pacific (China: Industrials), the world’s fifth largest port operator, held back performance when increased port capacity lead to fears of oversupply, and Johnson Electric (Hong Kong: Industrials) declined due to worries that recovery could take longer than expected.†
What major changes have occurred in the portfolio during the period covered by this report?
Over the 12-month period we continued to increase our exposure to companies in the Telecommunication Services sector, purchasing China Telecom, a fixed line incumbent telecom operator with a strong chance of being awarded a mobile license, and Telekomunikasi, a dominant provider of telecommunication services in Indonesia, which is currently benefiting from increasing penetration of mobile telephony. We subsequently sold this position in February ’07 because of valuation concerns.†
Past performance does not guarantee future results.
1 | The Morgan Stanley Capital International (MSCI®) All Country (AC) Far East Free Index (excluding Japan) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
3
Pacific Capital New Asia Growth Fund (cont.)
Elsewhere, we purchased TSMC (Taiwan: Information Technology), a wafer manufacturer whose global technology lead should allow the company to enjoy less cyclical earnings growth in the future, and Sembcorp Industries (Singapore: Industrials), a well-managed utilities and marine business with a promising environmental division focused on recycling and waste management.†
We sold China Merchants Bank and AU Optronics (Taiwan: Information Technology), because of valuation concerns. We also disposed of Novatek (Taiwan: Industrials) as the shares reached our estimate of fair value.†
What is your outlook for the Fund?
We maintain an overweight position in the Consumer sectors, in particular businesses with a relatively high degree of earnings predictability and strong cash flow generation. We remain underweight in the cyclical Materials sector where company profits are vulnerable to a correction in commodity prices, and due to concerns over financial derivatives and valuations, we are significantly underweight in bank stocks.†
We anticipate that there could be further volatility in the short-term on concerns about subprime lending in the U.S. and the impact on the broader U.S. economy. However, we remain positive about the outlook for the Far East ex-Japan markets. We believe those economies should continue to expand at levels above the Western economies allowing companies to deliver favorable sales and profits growth. The region offers many well-managed companies with strong business franchises and robust financials.
Past performance does not guarantee future results.
† | The composition of the Fund’s portfolio is subject to change. |
4
Pacific Capital New Asia Growth Fund (cont.)
Country Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 38.42 | % | 29.59 | % | 20.63 | % | 7.33 | % | ||||
Class B Shares** | 40.97 | % | 30.31 | % | 20.92 | % | 7.32 | % | ||||
Class C Shares** | 43.96 | % | 30.93 | % | 21.03 | % | 7.22 | % | ||||
Class Y Shares | 46.36 | % | 32.24 | % | 22.25 | % | 8.17 | % | ||||
MSCI® AC Far East Free Index (excluding Japan) | 54.63 | % | 35.30 | % | 25.31 | % | 5.08 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.91 | % | 2.51 | % | 2.51 | % | 1.51 | % | ||||
With Contractual Waivers | 1.76 | % | 2.51 | % | 2.51 | % | 1.51 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class B and Class C Shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance calculated for any period prior to March 2, 1998 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital New Asia Growth Fund is measured against the MSCI® AC Far East Free ex Japan Index, which is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. First State Investments International Limited is sub-adviser to the Fund and is paid a fee for its services.
5
Pacific Capital International Stock Fund
Investment Style
International, multi-cap, blend
Investment Objective
Long-term capital appreciation by investing in a broadly diversified portfolio of companies domiciled outside the United States. Investments are not limited to any particular type or size of company or to any region of the world, including emerging markets countries.
Investment Considerations
An investment in this Fund entails the special risks of international investing, including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund’s share price is expected to be more volatile than that of a U.S.-only fund. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Style neutral growth and value discipline |
• | Disciplined bottom-up stock selection |
Investment Management
Advised by Asset Management Group of Bank of Hawaii
Sub-Advised by Hansberger Global Investors, Inc. (since June 1, 2004)
• | Founded in 1994 by Thomas L. Hansberger, former President and CEO of Templeton Worldwide |
• | Headquartered in Ft. Lauderdale, Florida, with satellite offices in Hong Kong, Moscow, Toronto and Mumbai |
• | 23 investment professionals, 18 nationalities |
• | $10 billion in assets under management |
• | HGI is an affiliated investment manager of IXIS Asset Management Group (“IXIS”). IXIS has an ownership position of 84%. HGI management and employees own the remaining 16% |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund underperformed its benchmark, the MSCI® ACWI ex US Index1. The Fund (Class A shares without sales charge) was up 26.68%, while the MSCI® ACWI ex US Index was up 28.46%.
What were the major factors in the market that influenced the Fund’s performance?
A 2.9% underweighting to Australia combined with disappointing performance of the Fund’s holdings contributed to the Fund’s underperformance. Portfolio holding Johnson Electric had the largest negative impact as it was down 9.1% for the period.†
The Portfolio’s holdings in Japanese stocks helped the Fund’s return as the holdings were up 12.0%. Portfolio holding Nintendo had the largest positive impact as that stock was up 166.8%. United Kingdom stocks held were up 29.2%, and the portfolio’s holding in BHP Billiton PLC had the largest positive impact as that stock was up 61.2%.†
Holding a different basket of currencies than the MSCI® ACWI ex US Index had a negative net effect on the relative return. The 2.9% underexposure to the Australian dollar had the largest impact, and cash reserves, which averaged 1.8% of assets, had a negative impact.†
What major changes have occurred in the portfolio during the period covered by this report?
On an absolute basis, the largest change in the regional weights was a 3.7% increase to emerging markets. From a sector perspective, the Fund’s largest absolute weighting changes were a 1.7% increase in Industrials and a 1.4% decrease to Health Care.†
Relative to the benchmark, the Fund’s emerging markets weight increased by 3.8%. From a sector perspective, the Utilities weighting decreased by 1.3% while the Telecommunication Services weight increased by 1.2%.†
The portfolio cash reserves stood at 2.2% of assets at period end, up from 1.2% 12 months ago.
What is your outlook for the Fund?
We remain optimistic on international investing in general: real global Gross Domestic Product2 growth is still projected at over 3.0% for this year and next. In the meantime, on several valuation measures, international indices are trading in aggregate at a discount to the MSCI US Index.
However, we are cognizant that some of the challenges from the first half of the year may persist. HGI analysts will be monitoring carefully the impact of the difficulties in the U.S. subprime market on financial companies exposed to U.S. mortgages, consumer sentiment in the U.S., and international companies sensitive to U.S. spending. In addition, we are factoring in the risk of changing interest rates in the UK and continental Europe on current and prospective investments. In general, we anticipate that investors’ appetite for risk may wane. However, we continue to believe that carefully selecting securities with attractive fundamentals, good valuations, and prospects remains a sound strategy.
Past performance does not guarantee future results.
1 | The Morgan Stanley Capital International (MSCI®) All Country World (ACWI) ex US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets outside the U.S. Investors cannot invest directly in an index. |
2 | Gross Domestic Product is the measure of the market value of the goods and services produced by labor and property. |
† | The composition of the Fund’s portfolio is subject to change. |
6
Pacific Capital International Stock Fund (cont.)
Country Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | Since Inception (12/2/98) | |||||||||
Class A Shares* | 20.02 | % | 20.95 | % | 15.54 | % | 6.28 | % | ||||
Class B Shares** | 21.72 | % | 21.56 | % | 15.87 | % | 6.26 | % | ||||
Class C Shares** | 24.53 | % | 22.18 | % | 15.95 | % | 6.19 | % | ||||
Class Y Shares | 26.90 | % | 23.45 | % | 17.14 | % | 7.25 | % | ||||
MSCI® ACWI ex US Index | 28.46 | % | 26.15 | % | 22.34 | % | 9.90 | %*** | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.73 | % | 2.33 | % | 2.33 | % | 1.33 | % | ||||
With Contractual Waivers | 1.58 | % | 2.33 | % | 2.33 | % | 1.33 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
*** | Return for the period 11/30/98 to 7/31/07. |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Pacific Capital International Stock Fund’s inception date was December 2, 1998. The Class A, Class B and Class C Shares were not in existence prior to December 8, 1998, December 20, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for Class A and Class B Shares for any period prior to the inception date of the share class is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital International Stock Fund is measured against the MSCI® ACWI ex US Index, an unmanaged index which is designed to measure equity market performance in the global developed and emerging markets outside the U.S. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Hansberger Global Investors, Inc. is sub-adviser to the Fund and is paid a fee for its services.
7
Pacific Capital Small Cap Fund
Investment Style
Domestic, small-cap, blend
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of small-capitalization companies.
Investment Considerations
Small-capitalization stocks typically carry additional risk, since smaller companies generally have a higher risk of failure and have experienced a greater degree of volatility than larger companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
Nicholas-Applegate Capital Management
• | Systematic small cap strategy: Emphasizes a quantitative stock-selection approach to identify companies with sustainable growth characteristics and timely market recognition |
Wellington Management Company, LLP
• | Small cap growth intersection strategy: Combines fundamental research with quantitative valuation techniques in a disciplined framework to assess investment attractiveness |
Mellon Equity Associates, LLP
• | Small cap value strategy: Utilizes a disciplined process that combines computer modeling techniques, fundamental analysis, and risk management to select undervalued stocks for the Fund |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 11.39% (Class A Shares without sales charge), underperforming the Fund’s benchmark, the Russell 2000® Index1, which returned 12.12%.
What were the major factors in the market that influenced the Fund’s performance?
Equity markets around the world registered gains during the 12 months ended July 31, 2007. Key themes influencing stock prices were strength in the global economy and corporate profits, tighter monetary policy from central banks worldwide, a decline in the price of oil, and unprecedented merger and acquisition activity. In the U.S., Gross Domestic Product2 growth slowed; however, the economy remained healthy. The Federal Reserve Board (the “Fed”) held interest rates steady, seeking to balance the risks of slower growth and high core inflation, which excludes food and energy prices. Investors’ optimism that the Fed had engineered a soft landing for the economy helped drive this period’s stock market advance. During the fiscal year, large caps represented by the S&P 500 returned 16.13%, outperforming small caps represented by the Russell 2000® Index which returned 12.12%. Within the small cap universe, growth outperformed value. The Russell 2000® Value Index3 returned 7.67% versus a 16.83% return for the Russell 2000® Growth Index.
During the second half of the fiscal year and particularly during July, we witnessed a significant departure from several long-term trends. As credit spreads widened considerably, liquidity contracted, volatility increased sharply, small caps underperformed and growth outpaced value. Quantitative managers in particular were impacted as deteriorating credit conditions created a cascading effect, forcing highly levered participants to unwind exposures, leading to volatility as they covered shorts and sold long positions to raise cash. The Fund was impacted by this market dislocation.
What major changes have occurred in the portfolio during the period covered by the report?
Since June 2006, the Fund has employed a “multi-manager” approach whereby portions of the Fund’s assets are allocated among different investment sub-advisers who utilize distinct investment styles intended to complement one another. On June 27, 2007, Mellon Equity Associates, LLP (“MEA”) became sub-adviser to the small cap value portion of the Fund’s portfolio, replacing Nicholas-Applegate Capital Management (“NACM”), which continues to manage the “systematic small cap” core portion of the Fund’s portfolio. Wellington Management Company, LLP (“Wellington Management”) manages the small cap growth portion of the Fund’s portfolio. Each sub-adviser acts independently of the other and uses its own methodology for selecting investments. As a percentage of net assets of the Small Cap Fund on July 31, 2007, MEA managed 37%, NACM managed 40% and Wellington Management managed 23%.
MEA - Small Cap Value
As noted above, the small cap value portion of the Fund’s portfolio was transition to MEA in late June 2007. The portfolio remains diversified across industry groups. Given the continued volatility in the financial markets, MEA believes that a strategy emphasizing strong fundamentals and sector diversification will serve clients well over the long run. The portfolio preserved capital in the downturn by outperforming the Russell 2000® Value Index3. Returns in Financials and Technology showed positive relative performance. Within the Technology sector, the portfolio benefited from a position in Cabot Microelectronics Corp., a provider of materials for polishing integrated circuits that reported strong earnings, an increase in sales, and improved operations.†
Past performance does not guarantee future results.
1 | The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 10% of the total market capitalization of the Russell 3000® Index. Investors cannot invest directly in an index. |
2 | Gross Domestic Product is the measure of the market value of the goods and services produced by labor and property. |
† | The composition of the Fund’s portfolio is subject to change. |
8
Pacific Capital Small Cap Fund (cont.)
Investment Management
Advised by Asset Management Group of Bank of Hawaii
Sub-Advised by Nicholas-Applegate Capital Management
• | Founded in 1984, NACM employs 46 investment professionals |
• | Specializes in single-country, regional and sector-specific investments, traditional and systematic equity, global and international equity, high yield and convertibles and alternative strategies |
• | $15.1 billion in assets under management |
Sub-Advised by Wellington Management Company, LLP (since June 14, 2006)
• | Based in Boston, the firm has U.S. offices in Atlanta, Radnor (Pennsylvania), Chicago and San Francisco, with affiliate offices in London, Singapore, Sydney, Tokyo and Hong Kong |
• | Specializes in domestic, international and global equity, fixed income, currency, commodities, real estate and active asset allocation strategies |
• | Over $573 billion in assets under management |
Sub-Advised by Mellon Equity Associates, LLP (since June 26, 2007)
• | Founded in 1983, Mellon Equity is headquartered in Pittsburgh with offices in Philadelphia and San Francisco |
• | Specializes in structured U.S. and international equity and balanced fund management |
• | Over $20 billion in assets under management |
NACM - Systematic Small Cap
There were no major changes in this sleeve of the portfolio during the period. All buys and sells in this sleeve of the portfolio are driven by NACM’s quantitative stock selection model based on each position’s relative attractiveness and contribution to risk in relation to existing portfolio holdings. Accordingly, sector weights were decreased in Consumer Staples, Financials, and Materials. Portfolio weightings were increased in Consumer Discretionary and Information Technology. Representative new buys include Crocs Inc., in Consumer Discretionary, as well as Dycom Industries in Information Technology. Representative sells include Chattem Inc., in Consumer Staples, Financial Federal in Financials, and Greif Inc., in Materials.†
Wellington Management – Small Cap Growth Intersection
All changes in this sleeve of the portfolio are driven by bottom-up fundamental and quantitative research rather than sector-level, top-down views. During the 12-month period, the largest new purchases in this sleeve of the portfolio included Lifepoint Hospitals, a holding company that owns acute care hospitals, Varian
Semiconductor, a leading worldwide supplier of scientific instruments and vacuum technologies for life science and industrial applications, and Emulex, an enterprise storage company. Wellington Management’s largest eliminations included Global Imaging Systems, a U.S. copy and print distributor to medium sized businesses, and Chaparral Steel, a producer of structural steel products, both of which were acquired during the period.†
What is your outlook for the Fund?
Looking forward, we expect a gradual growth recovery in the second half of 2007 and into next year. The U.S. mid-cycle slowdown has many cross-currents. On a positive note, the manufacturing inventory correction looks complete, and the Industrial sector is seeing stronger demand from abroad and a slightly better tone to U.S. capital investment. We believe consumer spending should find a bottom in the coming months. On the negative side, we are still waiting to see some stabilization in housing demand. We view the recent volatility in the market as a liquidity-driven event, rather than a shift in fundamentals. Longer-term, company fundamentals drive stock prices, and we are maintaining our discipline and focus on fundamentals. Over the long-run, security selection will drive the Fund’s results, and we believe the Fund is well positioned to capitalize on the changing market environment.†
3 | Russell 2000® Value Index is comprised of the securities in the Russell 2000® Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
9
Pacific Capital Small Cap Fund (cont.)
Sector Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | 5.54 | % | 12.33 | % | 17.65 | % | 14.90 | % | ||||
Class B Shares** | 6.57 | % | 12.75 | % | 17.92 | % | 14.79 | % | ||||
Class C Shares** | 9.56 | % | 13.52 | % | 18.03 | % | 14.74 | % | ||||
Class Y Shares | 11.64 | % | 14.66 | % | 19.21 | % | 15.87 | % | ||||
Russell 2000® Index | 12.12 | % | 13.40 | % | 16.02 | % | 9.48 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.87 | % | 2.47 | % | 2.47 | % | 1.47 | % | ||||
With Contractual Waivers | 1.72 | % | 2.47 | % | 2.47 | % | 1.47 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Pacific Capital Small Cap Fund’s inception date was December 3, 1998. The Class A, Class B and Class C Shares were not in existence prior to December 8, 1998, December 20, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for Class A and Class B Shares for any period prior to the inception date of the share class is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Small Cap Fund is measured against the Russell 2000® Index, an unmanaged index comprised of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 10% of the total market capitalization of the Russell 3000® Index. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Nicholas-Applegate Capital Management, Wellington Management Company, LLP and Mellon Equity Associates, LLP are sub-advisers for a portion of the Fund’s assets and are paid a fee for their services.
10
Pacific Capital Mid-Cap Fund
Investment Style
Domestic, mid-cap, blend
Investment Objective
Long-term capital appreciation by investing in a diversified portfolio of mid-capitalization companies the sub-adviser believes are reasonably priced, fundamentally strong and exhibit better growth expectations relative to peers.
Investment Considerations
Mid-capitalization stocks typically carry additional risk, since smaller companies generally have a higher risk of failure and have experienced a greater degree of volatility than larger companies. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Quantitative research analysis with fundamental research overlay |
• | Quantitative analysts use proprietary screen to evaluate expectations, valuation and quality of 3,000 stocks |
• | Fundamental analysts identify factors not included in the screen to determine most attractive stocks |
• | Portfolio construction emphasizes stock selection and seeks to neutralize risk elements that are not consistently rewarded |
Investment Management
Advised by Asset Management Group of Bank of Hawaii
Sub-Advised by Chicago Equity Partners, LLC (“CEP”) (since October 10, 2006)
• | Founded in 1989, CEP specializes in core domestic equity markets |
• | CEP investment management team averages 17 years experience |
• | CEP currently oversees $12 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund underperformed its benchmark, the S&P MidCap 400 Index1. The Fund produced a total return of 15.63% (Class A Shares without sales charge), compared to the S&P MidCap 400 Index which returned 16.73% for the same period.
What were the major factors in the market that influenced the Fund’s performance?
Over the last three months, security selection in the Industrials sector added value, while selection in the Technology and Energy sectors detracted from performance. For the year, security selection in the Materials and Industrials sectors added value, while selection in the Technology and Staples sectors detracted from performance. The model did a good job during the first part of the year, but the discrimination has deteriorated over the last several months, and actually turned perverse during June and July which contributed to the Fund’s underperformance.†
What major changes have occurred in the portfolio during the period covered by the report?
No major changes have occured in the portfolio other than typical rebalancing.
What is your outlook for the Fund?
We have experienced a liquidity crunch and unwinding of some levered quantitative-related portfolios that heightened short-term volatility for our strategy over the last few months. This particular event, similar in some ways to the liquidity crunch of 1998 revolving around Long-Term Capital Management, did cause short-term volatility higher than any prior episodes that we have seen. The very nature of volatility, however, is calm periods interspersed with shocks, and our proprietary risk model is able to quickly incorporate this information to allow for adjustments to the portfolio in response. Periods where the market prefers stocks that look perverse along the broad-based factor dimensions that we seek are invariably short-lived and generally followed by a sharp rebound in our model. We have begun to see a return to focus on fundamentals. We are long term investors and will continue to follow a structured and disciplined investment strategy we believe can provide superior results over a full market cycle.†
Past performance does not guarantee future results.
1 | The S&P MidCap 400 Index is a market capitalization-weighted index of 400 medium capitalization stocks. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
11
Pacific Capital Mid-Cap Fund (cont.)
Sector Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | Since Inception (12/30/03) | |||||||
Class A Shares* | 9.53 | % | 13.32 | % | 10.45 | % | |||
Class C Shares** | 13.74 | % | 12.53 | % | 11.38 | % | |||
Class Y Shares | 15.87 | % | 13.59 | % | 12.37 | % | |||
S&P MidCap 400 Index | 16.73 | % | 15.29 | % | 12.81 | % | |||
Expense Ratios | Class A | Class C | Class Y | ||||||
Gross | 1.52 | % | 2.12 | % | 1.12 | % | |||
With Contractual Waivers | 1.37 | % | 2.12 | % | 1.12 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Pacific Capital Mid-Cap Fund’s inception date was December 30, 2003. The Class C Shares were not in existence prior to April 30, 2004. Performance information for the Class C Shares prior to April 30, 2004 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Mid-Cap Fund is measured against the S&P MidCap 400 Index, an unmanaged market capitalization-weighted index of 400 medium capitalization stocks. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Chicago Equity Partners, LLC, is sub-adviser to the Fund and is paid a fee for its services.
12
Pacific Capital Growth Stock Fund
Investment Style
Domestic, large-cap, growth
Investment Objective
Long-term capital appreciation and dividend income by investing in a diversified portfolio of large-capitalization companies whose earnings are expected to grow faster than the average for the U.S. market.
Investment Considerations
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Utilizes a dynamic multi-factor quantitative stock model to evaluate the expected returns of a large universe of stocks |
• | Fundamental analysts identify factors not included in the stock model to choose the best risk-adjusted stocks within their sector |
• | Follows a disciplined portfolio construction process that seeks to neutralize risk elements that are not consistently rewarded |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (AMG)
Sub-Advised by Chicago Equity Partners, LLC (“CEP”) (since June 29, 2007)
• | Founded in 1989, CEP specializes in core domestic equity markets |
• | CEP investment management team averages 17 years experience |
• | CEP currently oversees $12 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund produced a 13.49% total return (Class A Shares without sales charge), underperforming its benchmarks, the S&P 500/Citigroup Growth Index1 and the Russell 1000® Growth Index1, which returned 16.46% and 19.47%, respectively.
What were the major factors in the market that influenced the Fund’s performance?
Despite the sell-offs in June and July, the domestic equity market saw absolute positive returns across all market capitalization ranges for the fiscal year which ended on July 31, 2007. During the fiscal year, large caps, as represented by the S&P 500 Index, returned 16.13%, while small caps, as represented by the Russell 2000® Index, returned 12.12%. Continued growth in the domestic economy, a boom in corporate buyouts led by private equity players, and a pause by the Fed after a series of interest rate hikes appeared to fuel investors’ appetite for equity.
The domestic equity markets experienced wild swings in volatility in the final two months of the fiscal year as fears escalated relative to inflation risks and the sub-prime mortgage implosion. The S&P 500 Index (-1.66%) was negatively impacted in June by inflation concerns stoked by evidence of a growth recovery in the domestic economy and by rising interest rates abroad. In July, the continuing sub-prime issues spread from the credit market into stocks, leading the S&P 500 Index to record a loss of 3.10% for the month (its biggest monthly decline since July 2004), as well as a loss of 1.38% for the quarter. In light of the increased volatility in the financial markets in the final quarter, larger stocks generally fared better than smaller stocks and growth outpaced value across market capitalizations.
The Fund’s investment process favors stocks that are attractively valued relative to their peers, have good earnings growth, exhibit price strength, and have high quality balance sheets. These investment fundamentals were disregarded, as expensive, low-quality, and debt-loaded stocks outperformed their more fundamentally attractive peers in the final quarter of the fiscal year, particularly during July. As a result, several of the Fund’s highly ranked holdings performed poorly due to the fact that the stock selection model did not discriminate well between the highest and lowest ranked stocks, contrary to our experience over the previous ten years. During the 12-month period, stock selection was weakest in the Information Technology, Industrials, Energy and Consumer Staple sectors. Strong stock selection in Financials, Telecom Services, and Utilities partially offset disappointing stock selection in other sectors during the period.†
What major changes have occurred in the portfolio during the period covered by the report?
There were no major changes in the portfolio during the period other than typical rebalancing. All buys and sells in the portfolio are driven by a quantitative stock selection model based on each position’s relative attractiveness and contribution to risk in relation to existing portfolio holdings.
What is your outlook for the Fund?
Despite the short-term nature of the market in recently favoring lower quality stocks, we believe in building a portfolio of companies with strong fundamentals trading at attractive valuations, while seeking to immunize the portfolio against risk elements that are not consistently rewarded, such as style tilts, industry weightings, and market capitalization. We believe that a return to a more normal risk taking environment will favor high quality stocks, such as those in the Fund.
Past performance does not guarantee future results.
1 | The Fund has changed its standardized benchmark from the Russell 1000® Growth Index to the S&P 500/Citigroup Growth Index to better reflect the Fund’s investment strategy. The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. The S&P 500/Citigroup Growth Index measures the performance of all stocks in the S&P 500 Index (the 500 largest U.S. companies based on total market capitalization) that are classified as growth stocks. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
13
Pacific Capital Growth Stock Fund (cont.)
Sector Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmarks. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 7.47 | % | 4.72 | % | 5.56 | % | 2.32 | % | ||||
Class B Shares** | 8.69 | % | 4.95 | % | 5.73 | % | 2.29 | % | ||||
Class C Shares** | 11.55 | % | 5.86 | % | 5.89 | % | 2.19 | % | ||||
Class Y Shares | 13.78 | % | 6.87 | % | 6.94 | % | 3.15 | % | ||||
Russell 1000® Growth Index | 19.47 | % | 10.26 | % | 10.18 | % | 3.35 | % | ||||
S&P 500/Citigroup Growth Index | 16.46 | % | 9.25 | % | 9.15 | % | 4.43 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.54 | % | 2.14 | % | 2.14 | % | 1.14 | % | ||||
With Contractual Waivers | 1.39 | % | 2.14 | % | 2.14 | % | 1.14 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class B and Class C Shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for any period prior to March 2, 1998 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Growth Stock Fund is measured against the Russell 1000® Growth Index and the S&P 500/Citigroup Growth Index. The Fund has changed its standardized benchmark from the Russell 1000® Growth Index to the S&P 500/Citigroup Growth Index to better reflect the Fund’s investment strategy. The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. The S&P 500/Citigroup Growth Index measures the performance of all stocks in the S&P 500 Index (the 500 largest U.S. companies based on total market capitalization) that are classified as growth stocks. These indices are unmanaged and do 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Chicago Equity Partners, LLC, is sub-adviser to the Fund and is paid a fee for its services.
14
Pacific Capital Growth and Income Fund
Investment Style
Domestic, large-cap, blend
Investment Objective
Long-term capital appreciation and current income by investing in a diversified portfolio of large-capitalization dividend-paying companies whose earnings are expected to grow at above-average rates in relation to industry peers.
Investment Considerations
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Utilizes a dynamic multi-factor quantitative stock model to evaluate the expected returns of a large universe of stocks |
• | Fundamental analysts identify factors not included in the stock model to choose the best risk-adjusted stocks within their sector |
• | Follows a disciplined portfolio construction process that seeks to neutralize risk elements that are not consistently rewarded |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (AMG)
Sub-Advised by Chicago Equity Partners, LLC (“CEP”) (since June 29, 2007)
• | Founded in 1989, CEP specializes in core domestic equity markets |
• | CEP investment management team averages 17 years experience |
• | CEP currently oversees $12 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 10.06% (Class A Shares without sales charge), underperforming its benchmark, the S&P 500 Index1, which returned 16.13%.
What were the major factors in the market that influenced the Fund’s performance?
Despite the sell-offs in June and July, the domestic equity market saw absolute positive returns across all market capitalization ranges for the fiscal year which ended on July 31, 2007. During the fiscal year, large caps, as represented by the S&P 500 Index, returned 16.13%, while small caps, as represented by the Russell 2000® Index, returned 12.12%. Continued growth in the domestic economy, a boom in corporate buyouts led by private equity players, and a pause by the Fed after a series of interest rate hikes appeared to fuel investors’ appetite for equity.
The domestic equity markets experienced wild swings in volatility in the final two months of the fiscal year as fears escalated relative to inflation risks and the sub-prime mortgage implosion. The S&P 500 Index (-1.66%) was negatively impacted in June by inflation concerns stoked by evidence of a growth recovery in the domestic economy and by rising interest rates abroad. In July, the continuing sub-prime issues spread from the credit market into stocks, leading the S&P 500 Index to record a loss of 3.10% for the month (its biggest monthly decline since July 2004), as well as a loss of 1.38% for the quarter. In light of the increased volatility in the financial markets in the final quarter, larger stocks generally fared better than smaller stocks and growth outpaced value across market capitalizations.
The Fund’s investment process favors stocks that are attractively valued relative to their peers, have good earnings growth, exhibit price strength, and have high quality balance sheets. These investment fundamentals were disregarded, as expensive, low-quality, and debt-loaded stocks outperformed their more fundamentally attractive peers in the final quarter of the fiscal year, particularly during July. As a result, several of the Fund’s highly ranked holdings performed poorly due to the fact that the stock selection model did not discriminate well between the highest and lowest ranked stocks, contrary to our experience over the previous ten years. During the 12-month period, stock selection was unrewarded broadly; however, the lack of reward was more pronounced within the Information Technology, Financials, Consumer Discretionary, Consumer Staples, and Energy sectors.†
What major changes have occurred in the portfolio during the period covered by the report?
There were no major changes in the portfolio during the period other than typical rebalancing. All buys and sells in the portfolio are driven by a quantitative stock selection model based on each position’s relative attractiveness and contribution to risk in relation to existing portfolio holdings.
What is your outlook for the Fund?
Despite the short-term nature of the market in recently favoring lower quality stocks, we believe in building a portfolio of companies with strong fundamentals trading at attractive valuations, while seeking to immunize the portfolio against risk elements that are not consistently rewarded, such as style tilts, industry weightings, and market capitalization. We believe that a return to a more normal risk taking environment will favor high quality stocks, such as those in the Fund.
Past performance does not guarantee future results.
1 | The Standard & Poor’s 500 Index (“S&P 500 Index”) is an index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
15
Pacific Capital Growth and Income Fund (cont.)
Sector Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 4.27 | % | 6.28 | % | 7.25 | % | 2.91 | % | ||||
Class B Shares** | 5.24 | % | 6.52 | % | 7.45 | % | 2.83 | % | ||||
Class C Shares** | 8.25 | % | 7.42 | % | 7.61 | % | 2.74 | % | ||||
Class Y Shares | 10.39 | % | 8.51 | % | 8.69 | % | 3.71 | % | ||||
S&P 500 Index | 16.13 | % | 11.76 | % | 11.81 | % | 5.98 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.53 | % | 2.13 | % | 2.13 | % | 1.13 | % | ||||
With Contractual Waivers | 1.38 | % | 2.13 | % | 2.13 | % | 1.13 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class B and Class C Shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for any period prior to March 2, 1998 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Growth and Income Fund is measured against the S&P 500 Index, an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. Stock market as a whole. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Chicago Equity Partners, LLC, is sub-adviser to the Fund and is paid a fee for its services.
16
Pacific Capital Value Fund
Investment Style
Domestic, large-cap, value
Investment Objective
Long-term capital appreciation and current income by investing in a diversified portfolio of large-capitalization companies believed to be undervalued.
Investment Considerations
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, such as investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Investment Process
• | Utilizes a dynamic multi-factor quantitative stock model to evaluate the expected returns of a large universe of stocks |
• | Fundamental analysts identify factors not included in the stock model to choose the best risk-adjusted stocks within their sector |
• | Follows a disciplined portfolio construction process that seeks to neutralize risk elements that are not consistently rewarded |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
Sub-Advised by Chicago Equity Partners, LLC (“CEP”) (since June 29, 2007)
• | Founded in 1989, CEP specializes in core domestic equity markets |
• | CEP investment management team averages 17 years experience |
• | CEP currently oversees $12 billion in assets |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 12.10% (Class A Shares without sales charge), underperforming its benchmark, the Russell 1000® Value Index1, which returned 13.47%.
What were the major factors in the market that influenced the Fund’s performance?
Despite the sell-offs in June and July, the domestic equity market saw absolute positive returns across all market capitalization ranges for the fiscal year which ended on July 31, 2007. During the fiscal year, large caps, as represented by the S&P 500 Index, returned 16.13%, while small caps, as represented by the Russell 2000® Index, returned 12.12%. Continued growth in the domestic economy, a boom in corporate buyouts led by private equity players, and a pause by the Fed after a series of interest rate hikes appeared to fuel investors’ appetite for equity.
The domestic equity markets experienced wild swings in volatility in the final two months of the fiscal year as fears escalated relative to inflation risks and the sub-prime mortgage implosion. The S&P 500 Index (-1.66%) was negatively impacted in June by inflation concerns stoked by evidence of a growth recovery in the domestic economy and by rising interest rates abroad. In July, the continuing sub-prime issues spread from the credit market into stocks, leading the S&P 500 Index to record a loss of 3.10% for the month (its biggest monthly decline since July 2004), as well as a loss of 1.38% for the quarter. In light of the increased volatility in the financial markets in the final quarter, larger stocks generally fared better than smaller stocks and growth outpaced value across market capitalizations.
The Fund’s investment process favors stocks that are attractively valued relative to their peers, have good earnings growth, exhibit price strength, and have high quality balance sheets. These investment fundamentals were disregarded, as expensive, low-quality, and debt-loaded stocks outperformed their more fundamentally attractive peers in the final quarter of the fiscal year, particularly during July. As a result, several of the Fund’s highly ranked holdings performed poorly due to the fact that the stock selection model did not discriminate well between the highest and lowest ranked stocks, contrary to our experience over the previous ten years. During the 12-month period, the key driver of performance was poor stock selection within 3 of the 10 broad economic sectors of the market. In particular, stock selection was weakest in Financials, Healthcare, and Consumer Staples. This was partially offset by strong stock selection across several sectors, particularly Industrials, Utilities, Materials, Energy, and Consumer Discretionary.†
What major changes have occurred in the portfolio during the period covered by the report?
There were no major changes in the portfolio during the period other than typical rebalancing. All buys and sells in the portfolio are driven by a quantitative stock selection model based on each position’s relative attractiveness and contribution to risk in relation to existing portfolio holdings.
What is your outlook for the Fund?
Despite the short-term nature of the market in recently favoring lower quality stocks, we believe in building a portfolio of companies with strong fundamentals trading at attractive valuations, while seeking to immunize the portfolio against risk elements that are not consistently rewarded, such as style tilts, industry weightings, and market capitalization. We believe that a return to a more normal risk taking environment will favor high quality stocks, such as those in the Fund.
Past performance does not guarantee future results.
1 | The Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
17
Pacific Capital Value Fund (cont.)
Sector Weightings as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | 6.24 | % | 11.34 | % | 10.88 | % | 4.40 | % | ||||
Class B Shares** | 7.30 | % | 11.74 | % | 11.10 | % | 4.31 | % | ||||
Class C Shares** | 10.23 | % | 12.53 | % | 11.25 | % | 4.27 | % | ||||
Class Y Shares | 12.33 | % | 13.63 | % | 12.35 | % | 5.30 | % | ||||
Russell 1000® Value Index | 13.47 | % | 14.66 | % | 14.46 | % | 7.86 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.49 | % | 2.09 | % | 2.09 | % | 1.09 | % | ||||
With Contractual Waivers | 1.34 | % | 2.09 | % | 2.09 | % | 1.09 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 5.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Pacific Capital Value Fund’s inception date was December 3, 1998. The Class A, Class B and Class C Shares were not in existence prior to December 8, 1998, December 13, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for Class A and Class B Shares for any period prior to the inception date of the share class is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Value Fund is measured against the Russell 1000® Value Index, an unmanaged index which measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services. Chicago Equity Partners, LLC, is sub-adviser to the Fund and is paid a fee for its services.
18
Pacific Capital High Grade Core Fixed Income Fund
Investment Style
High-quality, intermediate-term, taxable
Investment Objective
High current income by investing at least 80% of its net assets in fixed income securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities and in investment grade corporate debt securities.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Generally, bond prices fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
• | AMG manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in separately managed accounts on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund returned 4.75% (Class A Shares without sales charge), underperforming its benchmark, the Merrill Lynch Domestic Master Index1, which returned 5.66%.
What were the major factors in the market that influenced the Fund’s performance?
Rates were volatile during the period. The 10-year rate began the period at 4.99%, declined to a low of 4.43% in early December, peaked at 5.26% toward the middle of June, and closed the period at 4.78%. We maintained a conservative risk structure during the period, keeping duration close to the benchmark and holding higher quality bonds. We were overweight in corporate bonds, which contributed to performance.
What major changes have occurred in the portfolio during the period covered by the report?
We began increasing our government bond positions a few months ago out of concern that credit spreads—the difference in yields between securities that are identical in all respects except for quality rating—especially on lower quality bonds, were too tight. Although we were a bit early, we were rewarded toward the end of the period and subsequent to July 31 as there has been a significant flight to quality in the Treasury market. We did take advantage of wider spreads by purchasing issues that we felt had widened too much, such as JP Morgan, as well as new issues of Kimberly-Clark. Spreads on those issues have tightened since our purchase. Portfolio duration was extended from a low of 4.53 years at April end to 4.9 years at the end of June. We shortened duration to about 2% shorter than the benchmark at the end of July as rates were at the bottom of the trading range established by our economist.†
What is your outlook for the Fund?
We are still concerned about spread widening and contagion from mortgage market defaults as well as sizable liquidations of collateral portfolios that backed structured securities. We have continued with our higher quality positions and neutral/slightly short duration stance compared to the benchmark. We expect to selectively include “beaten up” credits in the portfolio that we feel offer attractive value.†
Past performance does not guarantee future results.
1 | The Merrill Lynch Domestic Master Index is a broad-based index which measures the total rate of return performance of the U.S. investment-grade bond market. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
19
Pacific Capital High Grade Core Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 0.58 | % | 1.50 | % | 2.72 | % | 4.64 | % | ||||
Class B Shares** | -0.02 | % | 1.19 | % | 2.63 | % | 4.46 | % | ||||
Class C Shares** | 2.98 | % | 2.16 | % | 2.80 | % | 4.36 | % | ||||
Class Y Shares | 4.98 | % | 3.09 | % | 3.80 | % | 5.31 | % | ||||
Merrill Lynch Domestic Master Index | 5.66 | % | 3.99 | % | 4.47 | % | 5.86 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.26 | % | 1.86 | % | 1.86 | % | 0.86 | % | ||||
With Contractual Waivers | 1.11 | % | 1.86 | % | 1.86 | % | 0.86 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 4.00% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class B and Class C Shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for any period prior to March 2, 1998 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital High Grade Core Fixed Income Fund is measured against the Merrill Lynch Domestic Master Index, an unmanaged broad-based index which measures the total rate of return performance of the U.S. investment-grade bond market. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services.
20
Pacific Capital Tax-Free Securities Fund
Investment Style
High-quality, intermediate-term, tax-exempt
Investment Objective
High level of current income that is exempt from federal and Hawaii income tax by investing at least 80% of its net assets in investment grade municipal obligations. The Fund normally invests 50%–75% of its assets in Hawaii municipal obligations—debt securities issued by or on behalf of the State of Hawaii and its political subdivisions, agencies and instrumentalities that pay interest which is exempt from Hawaii income tax as well as federal income tax.
Investment Considerations
Income received from the Fund may be subject to certain state and local taxes and, depending on one’s tax status, to the federal alternative minimum tax. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. The longer the average maturity of the Fund’s portfolio, the greater the fluctuation in value. Since the Fund invests significantly in securities of issuers in Hawaii, it will also be affected by a variety of Hawaii’s economic and political factors.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
• | AMG manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in separately managed accounts on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 3.57% (Class A Shares without sales charge), underperforming its benchmark, the Lehman Brothers Municipal Hawaii Bond Index1, which returned 4.17%.
What were the major factors in the market that influenced the Fund’s performance?
The Fund’s underperformance is attributable to the fees and expenses associated with the Fund that are not associated with the index. Interestingly, the municipal market rates ended July 2007 identical to where they were at the end of July 2006. There were substantial changes throughout the year with rates along the yield curve—a line which plots interest rates, at a set point in time, of bonds having equal credit quality, but different maturity dates—changing by 25 (0.25%) to 50 bps (0.50%).
Overall, we were able to successfully position the portfolio through this last year to take advantage of the different rate and credit environments.
What major changes have occurred in the portfolio during the period covered by the report?
We ended the year with a slightly shorter duration than when we began (5.54 years effective duration versus 5.88 years, and 4.89 years modified duration versus 5.42 years), and a slightly higher percentage of AAA rated securities (92% versus 90%). We feel this is an appropriate positioning given the volatility we currently see in the market and we believe this will position the portfolio to take advantage of some opportunities as they arise.†
What is your outlook for the Fund?
We are starting out the next year in a period of high volatility in the financial markets largely attributable to the sub-prime mortgage market meltdown.
We expect this volatility to continue for several months and will navigate through this period carefully while looking to opportunistically extend the duration of the Fund and slightly increase the allocation to higher yielding, slightly lower credit quality securities that we feel present attractive risk/return characteristics.
Past performance does not guarantee future results.
1 | The Lehman Brothers Municipal Hawaii Bond Index is a rules-based, market-value weighted index engineered for the long-term tax-exempt Hawaii bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
21
Pacific Capital Tax Free Securities Fund (cont.)
Credit Quality as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -0.56 | % | 1.35 | % | 2.38 | % | 3.76 | % | ||||
Class B Shares** | -1.18 | % | 1.07 | % | 2.30 | % | 3.60 | % | ||||
Class C Shares** | 1.80 | % | 1.98 | % | 2.47 | % | 3.50 | % | ||||
Class Y Shares | 3.81 | % | 2.99 | % | 3.47 | % | 4.46 | % | ||||
Lehman Brothers Municipal Hawaii Index | 4.17 | % | 3.69 | % | 4.07 | % | 5.00 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.28 | % | 1.88 | % | 1.88 | % | 0.88 | % | ||||
With Contractual Waivers | 1.13 | % | 1.88 | % | 1.88 | % | 0.88 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 4.00% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class B and Class C Shares of the Fund commenced operations on March 2, 1998 and April 30, 2004, respectively. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for any period prior to March 2, 1998 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, 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 Hawaii Index, which is an unmanaged rules-based, market-value weighted index engineered for the long-term tax-exempt Hawaii bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services.
22
Pacific Capital High Grade Short Intermediate Fixed Income Fund
Investment Style
High-quality, short-intermediate-term, taxable
Investment Objective
High current income consistent with prudent capital risk by investing at least 80% of its net assets in fixed income securities issued or guaranteed by the U.S. Government, its agencies and instrumentalities and in investment grade corporate debt securities. Under normal market and interest rate conditions, the Fund’s duration will be between two and five years.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate with interest rate changes, providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Government and agency guarantees apply only to the underlying securities and not to the Fund.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
• | AMG manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in separately managed accounts on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 4.61% (Class A Shares without sales charge), underperforming its benchmark, the Merrill Lynch Domestic Master 1–5 Year Index1, which returned 5.59%.
What were the major factors in the market that influenced the Fund’s performance?
The primary factor influencing the relative performance of the Fund for the 12-month period was our underweight to direct Treasury issues and, inversely, our overweight to U.S. Government Agency debt and, additionally, one specific credit in the portfolio which clearly hindered Fund performance. Several market analysts have suggested that Countrywide Financial Corp. (“CFC”) may have singled-handedly triggered the Federal Open Market Committee (“FOMC”) to begin an easing cycle. CFC is a top three underwriter of mortgages in the nation across all mortgage product segments including sub-prime notes. At each point in the downdrafts for pricing on this issuer’s securities, we maintained our position on the credit believing the market was overreacting. From the nadir of this credit’s pricing we have thus far been proven correct despite the fact that holding the issue has diminished our relative performance. We believe that with the recent infusion of preferred equity capital from Bank of America, CFC is now likely to recover its reputation and successfully retool its business model or complete a sale of its existing franchise to a stronger external buyer with the odds-on-favorite being B of A.
For the majority of the 12-month period, our underweight in Treasuries and overweight in Agencies allowed the Fund to perform favorably against its peer group and benchmark index. However, in recent months since the end of Q1 2007 the Treasury market has experienced numerous waves of “flight to quality” buying as financial service providers around the globe with meaningful exposure to the sub-prime mortgage market made negative headlines regarding realized and/or potential losses related to their mortgage businesses or investments. This crisis-like price action in the Treasury market in recent months has unwound rapidly some of the Fund’s positive performance, and unless markets normalize soon, this reversal of fortune has a potential to continue for several more months. Ultimately, we believe the allocations the Fund has historically used to garner solid relative returns offer good probabilities for the Fund to return to its sound performance trend.
Nevertheless, as quickly as troubling Wall Street Journal front page stories can arise (e.g. two Bear Stearns hedge funds go bankrupt; BNP Fund suspends withdrawals/purchases citing inability to price complex mortgage securities; Australian asset backed hedge fund collapses; Countrywide Financial Corporation faces liquidity crisis and draws on bank lines to shore up short term operating funds; the FOMC reverses course with a full “about face” from their regularly scheduled meeting notes expressing concern for inflation when they cut the discount rate at a previously unscheduled emergency meeting), fixed income securities have the potential to increase dramatically in price and decrease yield while spread—the difference in yields between securities that are identical in all respects except for quality rating—can remain unchanged or, worse in some cases, move inversely to Treasuries.
What major changes have occurred in the portfolio during the period covered by the report?
We continue to maintain a neutral duration target versus the benchmark and continue to work on neutralizing our yield curve—a line which plots interest rates, at a set point in time, of bonds having equal credit quality, but different maturity dates—exposures in addition to our total portfolio duration as markets continue to trade erratically.†
What is your outlook for the Fund?
In light of the FOMC Q3 emergency meeting to cut the discount rate by 50 basis points (0.50%), the easing cycle has begun. Our expectation is for Fed Funds to be at 5.00% by year end and at least 4.75% no later than Q2 2008. Provided the economy does not slip into recession but merely experiences a mid-cycle slow down, as we anticipate, then we believe our neutral duration target and overweight to issues spread over the Treasury curve—a yield curve constructed using Treasury rates—should perform well in the coming quarters.
Past performance does not guarantee future results.
1 | Merrill Lynch Domestic Master 1–5 Year Index is a broad-based measure of the total rate of return performance of the short-term U.S. investment-grade bond market. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
23
Pacific Capital High Grade Short Intermediate Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 2.25 | % | 1.89 | % | 2.02 | % | 4.00 | % | ||||
Class C Shares** | 2.94 | % | 1.92 | % | 1.99 | % | 3.99 | % | ||||
Class Y Shares | 4.86 | % | 2.93 | % | 2.72 | % | 4.50 | % | ||||
Merrill Lynch Domestic Master 1–5-Year Index | 5.59 | % | 3.61 | % | 3.64 | % | 5.28 | % | ||||
Expense Ratios | Class A | Class C | Class Y | |||||||||
Gross | 1.23 | % | 1.83 | % | 0.83 | % | ||||||
With Contractual Waivers | 1.08 | % | 1.83 | % | 0.83 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class C Shares of the Fund commenced operations on April 30, 2004. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital High Grade Short Intermediate Fixed Income Fund is measured against the Merrill Lynch Domestic Master 1–5 Year Index, an unmanaged broad-based index that measures the total rate of return performance of the short-term U.S. investment-grade bond market. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services.
24
Pacific Capital Tax-Free Short Intermediate Securities Fund
Investment Style
High-quality, short-intermediate-term, tax-exempt
Investment Objective
High level of income that is exempt from federal and Hawaii income tax by investing at least 80% of its net assets in investment grade municipal obligations. The Fund normally invests 50%–75% of its assets in Hawaii municipal obligations—debt securities issued by or on behalf of the State of Hawaii and its political subdivisions, agencies and instrumentalities that pay interest which is exempt from Hawaii income tax as well as federal income tax.
Investment Considerations
Income received from the Fund may be subject to certain state and local taxes and, depending on one’s tax status, to the federal alternative minimum tax. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Generally, bond prices and values fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Since the Fund invests significantly in securities of issuers in Hawaii, it will also be affected by a variety of Hawaii’s economic and political factors.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
• | AMG manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in separately managed accounts on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 2.84% (Class A Shares without sales charge), underperforming its benchmark, the Lehman Brothers Municipal Hawaii 3–Year Index1, which returned 3.74%.
What were the major factors in the market that influenced the Fund’s performance?
The Fund’s underperformance is attributable to the fees and expenses associated with the Fund that are not associated with the index. Interestingly, the municipal market rates ended July 2007 identical to where they were at the end of July 2006. There were substantial changes throughout the year with rates along the yield curve—a line which plots interest rates, at a set point in time, of bonds having equal credit quality, but different maturity dates—changing by 25 (0.25%) to 50 bps (0.50%).
Historically, the Fund benefited from a relative overweight to short callable securities and higher yielding lower credit quality securities than those in the benchmark. This strategy has worked well over the course of the year, although it has recently underperformed. However, we believe this structure could potentially provide superior returns over the long term.
What major changes have occurred in the portfolio during the period covered by the report?
We have taken advantage of some tax loss swap opportunities to invest in some higher-yielding short-term bonds to add performance to the Fund, bringing the AAA-rated percentage from 88% to 74%. We feel these securities will add value to the Fund over the year ahead.†
What is your outlook for the Fund?
We expect to remain close to the duration of the benchmark and continue to look for opportunities to increase the percentage of double tax exempt bonds held in the Fund.
Past performance does not guarantee future results.
1 | The Lehman Brothers Municipal Hawaii 3–Year Bond Index is the 2-4 year component of the Lehman Brothers Hawaii Municipal Bond index. The index is a rules-based, market-value-weighted index engineered for the Hawaii tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
25
Pacific Capital Tax-Free Short Intermediate Securities Fund (cont.)
Credit Quality as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 0.54 | % | 1.04 | % | 1.46 | % | 2.80 | % | ||||
Class C Shares** | 0.97 | % | 1.02 | % | 1.42 | % | 2.78 | % | ||||
Class Y Shares | 3.08 | % | 2.06 | % | 2.17 | % | 3.30 | % | ||||
Lehman Brothers Municipal Hawaii 3–Year Index | 3.74 | % | 2.29 | % | 2.45 | % | 3.88 | % | ||||
Expense Ratios | Class A | Class C | Class Y | |||||||||
Gross | 1.25 | % | 1.85 | % | 0.85 | % | ||||||
With Contractual Waivers | 1.10 | % | 1.85 | % | 0.85 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 1.00% (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Class C Shares of the Fund commenced operations on April 30, 2004. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.
The performance of the Pacific Capital Tax-Free Short Intermediate Securities Fund is measured against the Lehman Brothers Municipal Hawaii 3–Year Index, an unmanaged index which is the 2-4 year component of the Lehman Brothers Hawaii Municipal Bond Index and is a rules-based, market-value-weighted index engineered for the Hawaii tax-exempt bond market. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds, and prerefunded 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services.
26
Pacific Capital U.S. Government Short Fixed Income Fund
Investment Style
High-quality, short-term, taxable
Investment Objective
High current income consistent with capital preservation by investing 100% in short-term debt securities issued or guaranteed by the U.S. Government and its agencies. Under normal market and interest rate conditions, the Fund’s target duration is not expected to exceed 2.5 years.
Investment Considerations
Bonds offer a relatively stable level of income, although bond prices will fluctuate with interest rate changes, providing the potential for principal gain or loss. Generally, bond prices fall when interest rates rise, and vice versa. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Government and agency guarantees apply only to the underlying securities and not to the Fund.
Investment Process
• | Top-down macroeconomic analysis of interest rate trends |
• | Bottom-up credit research to identify high quality bonds |
Investment Management
Advised by Asset Management Group of Bank of Hawaii (“AMG”)
• | AMG manages $5.7 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.4 billion in separately managed accounts on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2007, the Fund gained 4.80% (Class A Shares without sales charge), underperforming its benchmark, the Merrill Lynch 1–3-Year U.S. Treasury Index1, which returned 5.26%.
What were the major factors in the market that influenced the Fund’s performance?
The primary factor influencing relative performance of the Fund for the period was our underweight to direct Treasury issues and, inversely, our overweight to U.S. Government Agency debt.
For the majority of the 12-month period, the Treasury underweight and the Agency overweight allowed the Fund to outperform its benchmark.
However, since the end of Q1 2007, the Treasury market has experienced numerous waves of “flight to quality” buying as financial service providers around the globe with meaningful exposure to the sub-prime mortgage market made negative headlines regarding realized and/or potential losses related to their mortgage businesses or investments. This crisis-like price action in the Treasury market in recent months has unwound rapidly some of the Fund’s outperformance, and unless markets normalize soon, this reversal of fortune has a potential to continue for several more months. Ultimately we believe the allocations the Fund has historically used to garner solid relative returns offer good probabilities for the Fund to return to its positive performance trend.
Nevertheless, as quickly as troubling Wall Street Journal front page stories can arise (e.g. two Bear Stearns hedge funds go bankrupt; BNP Fund suspends withdrawals/purchases citing inability to price complex mortgage securities; Australian asset backed hedge fund collapses; Countrywide Financial Corporation faces liquidity crisis and draws on bank lines to shore up short term operating funds; the FOMC reverses course with a full “about face” from their regularly scheduled meeting notes expressing concern for inflation when they cut the discount rate at a previously unscheduled emergency meeting), government securities have the potential to increase dramatically in price and decrease yield while spread—the difference in yields between securities that are identical in all respects except for quality rating—can remain unchanged or, worse in some cases, move inversely to Treasuries.
What major changes have occurred in the portfolio during the period covered by the report?
We continue to maintain neutral duration target versus the benchmark and continue to work on neutralizing our yield curve—a line which plots interest rates, at a set point in time, of bonds having equal credit quality, but different maturity dates—exposures in addition to our total portfolio duration as markets continue to trade erratically.†
What is your outlook for the Fund?
In light of the FOMC Q3 emergency meeting to cut the discount rate by 50 basis points (0.50%), the easing cycle has begun. Our expectation is for Fed Funds to be at 5.00% by year end and at least 4.75% no later than Q2 2008. Provided the economy does not slip into recession but merely experiences a mid-cycle slow down, as we expect, then our neutral duration target and overweight to issues spread over the treasury curve—a yield curve constructed using Treasury rates—should perform well in the coming quarters.
Past performance does not guarantee future results.
1 | The Merrill Lynch 1–3-Year Treasury Index is comprised of United States Treasury issues with maturities from one to three years. Investors cannot invest directly in an index. |
† | The composition of the Fund’s portfolio is subject to change. |
27
Pacific Capital U.S. Government Short Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2007
(as a percentage of total investments)
The composition of the Fund’s portfolio is subject to change.
Growth of a $10,000 Investment
The hypothetical $10,000 investment graph above represents a comparison of the performance of the indicated share class versus a similar investment in the Fund’s benchmark. The graph does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Average Annual Total Returns as of July 31, 2007
1 Year | 3 Year | 5 Year | Since Inception (6/1/00) | |||||||||
Class A Shares* | 2.45 | % | 2.30 | % | 1.78 | % | 3.02 | % | ||||
Class B Shares** | 0.02 | % | 1.34 | % | 1.30 | % | 2.60 | % | ||||
Class C Shares** | 3.02 | % | 2.30 | % | 1.48 | % | 2.59 | % | ||||
Class Y Shares | 5.17 | % | 3.33 | % | 2.50 | % | 3.61 | % | ||||
Merrill Lynch 1–3-Year U.S. Treasury Index | 5.26 | % | 3.10 | % | 2.71 | % | 4.37 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.11 | % | 1.71 | % | 1.71 | % | 0.71 | % | ||||
With Contractual Waivers | 0.96 | % | 1.71 | % | 1.71 | % | 0.71 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232 or visit the Funds’ website at pacificcapitalfunds.com.
The above expense ratios are from the Funds’ prospectus dated November 28, 2006. Additional information pertaining to the Funds’ expense ratios as of July 31, 2007 can be found in the financial highlights.
* | Reflects 2.25% maximum front-end sales charge. |
** | Reflects maximum contingent deferred sales charge (CDSC) of up to 5.00% for the Class B Shares and a maximum CDSC of 1.00% for the Class C Shares (applicable only to redemptions within one year of purchase). |
The above performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Total returns reflect the waiver of various operational fees. Had these waivers not been in effect, performance quoted would have been lower.
The Pacific Capital U.S. Government Short Fixed Income Fund’s inception date was June 1, 2000. The Class A and Class B Shares were not in existence prior to August 1, 2000, and the Class C Shares prior to April 30, 2004. Performance information for Class C Shares prior to April 30, 2004 is based on the performance of Class B Shares. Performance for any period prior to August 1, 2000 is based on the performance of Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected. The performance of the Pacific Capital U.S. Government Short Fixed Income Fund is measured against the Merrill Lynch 1–3-Year U.S. Treasury Index, an unmanaged index comprised of U.S. Treasury issues with maturities from one- to three-years. 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 services. Investors cannot invest directly in an index.
The Pacific Capital Funds are distributed by Foreside Distribution Services, L.P. The Asset Management Group of Bank of Hawaii is investment adviser to the Fund and receives a fee for its services.
28
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2007
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 80,937,986 | $ | 202,596,271 | $ | 546,169,262 | $ | 67,945,852 | ||||||||
Investments, at value | $ | 117,521,581 | $ | 248,167,455 | $ | 536,301,824 | $ | 71,572,188 | ||||||||
Cash | — | 4,167 | — | — | ||||||||||||
Foreign currency, at value (Cost $260,835, $—, $—, and $—, respectively) | 260,853 | — | — | — | ||||||||||||
Income receivable | 218,574 | 260,928 | 408,728 | 60,169 | ||||||||||||
Receivable for capital shares issued | 40,367 | 117,297 | 985,836 | 49,619 | ||||||||||||
Receivable for investments sold | 171,406 | — | 4,785,987 | — | ||||||||||||
Reclaims receivable | — | 241,387 | — | — | ||||||||||||
Prepaid expenses and other assets | 699 | 8,315 | 31,644 | — | ||||||||||||
Total Assets | 118,213,480 | 248,799,549 | 542,514,019 | 71,681,976 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for capital shares redeemed | 5,003 | 6,468 | 2,000,896 | 16,678 | ||||||||||||
Payable for investments purchased | 193,529 | — | 3,324,853 | — | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 40,556 | 76,211 | 181,089 | 21,619 | ||||||||||||
Sub-investment advisory fees | 50,694 | 92,135 | 312,766 | 12,923 | ||||||||||||
Administration and sub-administration fees | 9,125 | 19,597 | 44,448 | 5,816 | ||||||||||||
Compliance service fees | 602 | 1,336 | 3,092 | 405 | ||||||||||||
Distribution fees | 1,770 | 1,394 | 76,815 | 621 | ||||||||||||
Other fees | 53,899 | 53,998 | 122,055 | 27,659 | ||||||||||||
Total Liabilities | 355,178 | 251,139 | 6,066,014 | 85,721 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 72,019,422 | 190,877,334 | 474,903,670 | 60,413,497 | ||||||||||||
Undistributed (distributions in excess of) net investment income | 87,230 | (224,021 | ) | — | — | |||||||||||
Accumulated net realized gains from investments | 9,168,065 | 12,319,434 | 71,411,773 | 7,556,422 | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 36,583,585 | 45,575,663 | (9,867,438 | ) | 3,626,336 | |||||||||||
Net Assets | $ | 117,858,302 | $ | 248,548,410 | $ | 536,448,005 | $ | 71,596,255 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 3,206,868 | $ | 1,220,561 | $ | 228,985,311 | $ | 692,579 | ||||||||
Class B | 678,908 | 670,716 | 2,509,927 | N/A | ||||||||||||
Class C | 579,752 | 600,344 | 24,083,147 | 481,642 | ||||||||||||
Class Y | 113,392,774 | 246,056,789 | 280,869,620 | 70,422,034 | ||||||||||||
Total | $ | 117,858,302 | $ | 248,548,410 | $ | 536,448,005 | $ | 71,596,255 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 145,370 | 89,948 | 12,517,563 | 56,918 | ||||||||||||
Class B | 32,339 | 52,134 | 147,706 | N/A | ||||||||||||
Class C | 27,644 | 46,708 | 1,416,304 | 40,380 | ||||||||||||
Class Y | 5,064,325 | 17,783,678 | 15,090,502 | 5,774,707 | ||||||||||||
Total | 5,269,678 | 17,972,468 | 29,172,075 | 5,872,005 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 22.06 | $ | 13.57 | $ | 18.29 | $ | 12.17 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A—maximum offering price per share | $ | 23.28 | $ | 14.32 | $ | 19.30 | $ | 12.84 | ||||||||
Class B—offering price per share* | $ | 20.99 | $ | 12.87 | $ | 16.99 | N/A | |||||||||
Class C—offering price per share* | $ | 20.97 | $ | 12.85 | $ | 17.00 | $ | 11.93 | ||||||||
Class Y—offering and redemption price per share | $ | 22.39 | $ | 13.84 | $ | 18.61 | $ | 12.19 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
29
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, continued
July 31, 2007
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 166,490,508 | $ | 153,836,219 | $ | 146,023,627 | $ | 311,673,317 | ||||||||
Investments, at value | $ | 169,458,491 | $ | 155,056,241 | $ | 149,661,861 | $ | 311,261,327 | ||||||||
Cash | — | 1,013 | — | — | ||||||||||||
Income receivable | 80,888 | 144,687 | 159,319 | 3,759,237 | ||||||||||||
Receivable for capital shares issued | 19,656 | 22,585 | 19,350 | 279 | ||||||||||||
Receivable for investments sold | — | — | — | 57,432 | ||||||||||||
Prepaid expenses and other assets | 5,840 | 5,829 | 2,046 | 675 | ||||||||||||
Total Assets | 169,564,875 | 155,230,355 | 149,842,576 | 315,078,950 | ||||||||||||
Liabilities: | ||||||||||||||||
Distributions payable | — | — | — | 41,197 | ||||||||||||
Payable for capital shares redeemed | 59,141 | 28,168 | 10,592 | 111,229 | ||||||||||||
Payable for investments purchased | — | — | — | 894,220 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 53,032 | 48,682 | 47,346 | 119,446 | ||||||||||||
Sub-investment advisory fees | 37,880 | 34,773 | 33,818 | — | ||||||||||||
Administration and sub-administration fees | 13,637 | 12,518 | 12,175 | 23,890 | ||||||||||||
Compliance service fees | 963 | 908 | 867 | 1,694 | ||||||||||||
Distribution fees | 8,906 | 5,832 | 3,323 | 2,872 | ||||||||||||
Other fees | 45,259 | 38,752 | 33,123 | 55,169 | ||||||||||||
Total Liabilities | 218,818 | 169,633 | 141,244 | 1,249,717 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 243,540,010 | 146,088,454 | 122,231,897 | 318,427,739 | ||||||||||||
Undistributed (distributions in excess of) net investment income | 15,912 | — | 1 | (41,197 | ) | |||||||||||
Accumulated net realized gains (losses) from investments | (77,177,849 | ) | 7,752,246 | 23,831,200 | (4,145,319 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments | 2,967,983 | 1,220,022 | 3,638,234 | (411,990 | ) | |||||||||||
Net Assets | $ | 169,346,056 | $ | 155,060,722 | $ | 149,701,332 | $ | 313,829,233 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 7,956,871 | $ | 6,022,437 | $ | 2,961,859 | $ | 3,115,330 | ||||||||
Class B | 5,955,756 | 3,141,426 | 1,102,090 | 1,633,984 | ||||||||||||
Class C | 1,850,876 | 1,774,305 | 1,830,715 | 963,700 | ||||||||||||
Class Y | 153,582,553 | 144,122,554 | 143,806,668 | 308,116,219 | ||||||||||||
Total | $ | 169,346,056 | $ | 155,060,722 | $ | 149,701,332 | $ | 313,829,233 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 835,276 | 413,060 | 280,707 | 293,323 | ||||||||||||
Class B | 676,206 | 229,916 | 106,573 | 154,179 | ||||||||||||
Class C | 210,311 | 130,010 | 176,568 | 90,931 | ||||||||||||
Class Y | 15,610,208 | 9,807,348 | 13,599,918 | 28,838,171 | ||||||||||||
Total | 17,332,001 | 10,580,334 | 14,163,766 | 29,376,604 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 9.53 | $ | 14.58 | $ | 10.55 | $ | 10.62 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 4.00 | % | ||||||||
Class A—maximum offering price per share | $ | 10.06 | $ | 15.39 | $ | 11.13 | $ | 11.06 | ||||||||
Class B—offering price per share* | $ | 8.81 | $ | 13.66 | $ | 10.34 | $ | 10.60 | ||||||||
Class C—offering price per share* | $ | 8.80 | $ | 13.65 | $ | 10.37 | $ | 10.60 | ||||||||
Class Y—offering and redemption price per share | $ | 9.84 | $ | 14.70 | $ | 10.57 | $ | 10.68 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
30
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, continued
July 31, 2007
Tax-Free Securities Fund | High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 277,937,552 | $ | 63,677,601 | $ | 52,458,792 | $ | 88,688,161 | ||||||||
Investments, at value | $ | 289,218,738 | $ | 63,509,847 | $ | 52,511,267 | $ | 88,768,468 | ||||||||
Cash | — | 754 | — | 402 | ||||||||||||
Income receivable | 2,925,525 | 814,919 | 549,646 | 1,325,059 | ||||||||||||
Receivable for capital shares issued | 78,250 | 127 | 8,775 | 147 | ||||||||||||
Receivable for investments sold | — | 25,479 | — | — | ||||||||||||
Prepaid expenses and other assets | — | 1,155 | — | — | ||||||||||||
Total Assets | 292,222,513 | 64,352,281 | 53,069,688 | 90,094,076 | ||||||||||||
Liabilities: | ||||||||||||||||
Cash overdraft | 2,689,968 | — | — | — | ||||||||||||
Distributions payable | 35,981 | 8,168 | 4,951 | 11,403 | ||||||||||||
Payable for capital shares redeemed | 5,193 | 1,373 | 90 | 4,710 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 110,996 | 11,430 | 18,124 | 16,387 | ||||||||||||
Administration and sub-administration fees | 22,199 | 4,901 | 4,078 | 6,889 | ||||||||||||
Compliance service fees | 1,577 | 348 | 281 | 1,519 | ||||||||||||
Distribution fees | 2,126 | 638 | 469 | 2,132 | ||||||||||||
Other fees | 57,025 | 22,337 | 21,470 | 27,024 | ||||||||||||
Total Liabilities | 2,925,065 | 49,195 | 49,463 | 70,064 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 277,735,428 | 66,776,148 | 53,729,940 | 92,809,178 | ||||||||||||
Undistributed (distributions in excess of) net investment income | 35 | (7,378 | ) | 762 | — | |||||||||||
Accumulated net realized gains (losses) from investments | 280,799 | (2,297,930 | ) | (762,952 | ) | (2,865,473 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments | 11,281,186 | (167,754 | ) | 52,475 | 80,307 | |||||||||||
Net Assets | $ | 289,297,448 | $ | 64,303,086 | $ | 53,020,225 | $ | 90,024,012 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 5,512,574 | $ | 984,308 | $ | 2,174,660 | $ | 2,265,480 | ||||||||
Class B | 1,103,157 | N/A | N/A | 824,707 | ||||||||||||
Class C | 10,696 | 510,593 | 10,337 | 1,116,262 | ||||||||||||
Class Y | 282,671,021 | 62,808,185 | 50,835,228 | 85,817,563 | ||||||||||||
Total | $ | 289,297,448 | $ | 64,303,086 | $ | 53,020,225 | $ | 90,024,012 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 548,530 | 103,124 | 217,015 | 225,138 | ||||||||||||
Class B | 109,763 | N/A | N/A | 81,961 | ||||||||||||
Class C | 1,064 | 53,543 | 1,031 | 110,947 | ||||||||||||
Class Y | 28,012,033 | 6,568,463 | 5,045,291 | 8,522,922 | ||||||||||||
Total | 28,671,390 | 6,725,130 | 5,263,337 | 8,940,968 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 10.05 | $ | 9.54 | $ | 10.02 | $ | 10.06 | ||||||||
Class A—maximum sales charge | 4.00 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||
Class A—maximum offering price per share | $ | 10.47 | $ | 9.76 | $ | 10.25 | $ | 10.29 | ||||||||
Class B—offering price per share* | $ | 10.05 | N/A | N/A | $ | 10.06 | ||||||||||
Class C—offering price per share* | $ | 10.05 | $ | 9.54 | $ | 10.02 | $ | 10.06 | ||||||||
Class Y—offering and redemption price per share | $ | 10.09 | $ | 9.56 | $ | 10.08 | $ | 10.07 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
31
PACIFIC CAPITAL FUNDS
Statements of Operations
Year Ended July 31, 2007
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 2,967,924 | $ | 5,241,674 | $ | 6,057,745 | $ | 954,502 | ||||||||
Interest income | — | — | 451,795 | — | ||||||||||||
Foreign tax withholding | (260,453 | ) | (380,947 | ) | — | — | ||||||||||
Total Investment Income | 2,707,471 | 4,860,727 | 6,509,540 | 954,502 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 394,721 | 1,007,108 | 2,337,179 | 390,234 | ||||||||||||
Sub-investment advisory fees | 493,400 | 970,803 | 3,295,599 | 130,079 | ||||||||||||
Administration and sub-administration fees | 88,814 | 201,425 | 460,873 | 58,536 | ||||||||||||
Distribution fees—Class A | 10,387 | 4,517 | 897,847 | 3,094 | ||||||||||||
Distribution fees—Class B | 6,486 | 6,816 | 30,580 | — | ||||||||||||
Distribution fees—Class C | 4,890 | 6,082 | 211,171 | 5,472 | ||||||||||||
Accounting fees | 62,263 | 117,140 | 198,002 | 29,601 | ||||||||||||
Compliance service fees | 5,990 | 13,621 | 30,436 | 3,217 | ||||||||||||
Custodian fees | 165,427 | 161,603 | 72,863 | 41,868 | ||||||||||||
Transfer agent fees | 55,422 | 53,964 | 375,127 | 49,083 | ||||||||||||
Trustee fees | 9,040 | 20,770 | 46,311 | 6,443 | ||||||||||||
Other fees | 73,097 | 137,584 | 496,352 | 70,168 | ||||||||||||
Total expenses before reductions | 1,369,937 | 2,701,433 | 8,452,340 | 787,795 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (39 | ) | (223,793 | ) | (542,808 | ) | (245,937 | ) | ||||||||
Less expenses waived by the distributor—Class A | (3,895 | ) | (1,694 | ) | (336,694 | ) | (1,160 | ) | ||||||||
Net Expenses | 1,366,003 | 2,475,946 | 7,572,838 | 540,698 | ||||||||||||
Net Investment Income (Loss) | 1,341,468 | 2,384,781 | (1,063,298 | ) | 413,804 | |||||||||||
Realized/Unrealized Gains (Losses) from Investments, Futures and Foreign Currency Transactions: | ||||||||||||||||
Net realized gains from investments and foreign currency transactions | 13,445,612 | 25,040,337 | 75,100,717 | 9,339,409 | ||||||||||||
Net realized gains from futures transactions | — | — | 178,604 | — | ||||||||||||
Change in unrealized appreciation/depreciation on investments and foreign currency transactions | 22,968,229 | 24,814,151 | (28,351,126 | ) | (1,353,818 | ) | ||||||||||
Net realized/unrealized gains from investments, futures and foreign currency transactions | 36,413,841 | 49,854,488 | 46,928,195 | 7,985,591 | ||||||||||||
Change in net assets resulting from operations | $ | 37,755,309 | $ | 52,239,269 | $ | 45,864,897 | $ | 8,399,395 | ||||||||
See notes to financial statements.
32
PACIFIC CAPITAL FUNDS
Statements of Operations, continued
Year Ended July 31, 2007
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 2,110,875 | $ | 3,060,359 | $ | 3,929,542 | $ | 190,742 | ||||||||
Interest income | 2,647 | — | — | 17,391,215 | ||||||||||||
Total Investment Income | 2,113,522 | 3,060,359 | 3,929,542 | 17,581,957 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,259,215 | 1,304,216 | 1,316,463 | 1,897,886 | ||||||||||||
Sub-investment advisory fees | 37,880 | 34,773 | 33,818 | — | ||||||||||||
Administration and sub-administration fees | 145,926 | 150,639 | 151,910 | 284,687 | ||||||||||||
Distribution fees—Class A | 32,846 | 24,325 | 11,959 | 13,200 | ||||||||||||
Distribution fees—Class B | 79,661 | 45,507 | 13,573 | 23,065 | ||||||||||||
Distribution fees—Class C | 19,788 | 19,329 | 20,512 | 11,448 | ||||||||||||
Accounting fees | 62,104 | 64,356 | 64,953 | 130,546 | ||||||||||||
Compliance service fees | 4,648 | 7,861 | 6,885 | 14,422 | ||||||||||||
Custodian fees | 30,654 | 28,021 | 29,750 | 30,563 | ||||||||||||
Transfer agent fees | 100,403 | 77,767 | 53,280 | 59,068 | ||||||||||||
Trustee fees | 15,308 | 15,722 | 15,442 | 29,177 | ||||||||||||
Other fees | 135,109 | 119,698 | 93,574 | 167,627 | ||||||||||||
Total expenses before reductions | 1,923,542 | 1,892,214 | 1,812,119 | 2,661,689 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (30,338 | ) | (27,819 | ) | (27,061 | ) | (474,492 | ) | ||||||||
Less expenses waived by the distributor—Class A | (12,317 | ) | (9,122 | ) | (4,485 | ) | (4,950 | ) | ||||||||
Net Expenses | 1,880,887 | 1,855,273 | 1,780,573 | 2,182,247 | ||||||||||||
Net Investment Income | 232,635 | 1,205,086 | 2,148,969 | 15,399,710 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains from investments | 14,282,281 | 19,482,302 | 29,881,198 | 848,286 | ||||||||||||
Change in unrealized appreciation/depreciation on investments | 5,478,060 | (3,753,343 | ) | (11,305,014 | ) | (912,112 | ) | |||||||||
Net realized/unrealized gains (losses) from investments | 19,760,341 | 15,728,959 | 18,576,184 | (63,826 | ) | |||||||||||
Change in net assets resulting from operations | $ | 19,992,976 | $ | 16,934,045 | $ | 20,725,153 | $ | 15,335,884 | ||||||||
See notes to financial statements.
33
PACIFIC CAPITAL FUNDS
Statements of Operations, continued
Year Ended July 31, 2007
Tax-Free Securities Fund | High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 14,639,581 | $ | 3,310,018 | $ | 2,419,024 | $ | 4,728,251 | ||||||||
Dividend income | 28,613 | — | 26,327 | — | ||||||||||||
Total Investment Income | 14,668,194 | 3,310,018 | 2,445,351 | 4,728,251 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,786,268 | 318,376 | 300,569 | 368,810 | ||||||||||||
Administration and sub-administration fees | 267,945 | 57,309 | 54,104 | 82,984 | ||||||||||||
Distribution fees—Class A | 23,923 | 4,223 | 9,737 | 9,333 | ||||||||||||
Distribution fees—Class B | 16,041 | — | — | 10,728 | ||||||||||||
Distribution fees—Class C | 106 | 5,904 | 102 | 14,317 | ||||||||||||
Accounting fees | 123,975 | 32,287 | 29,456 | 33,146 | ||||||||||||
Compliance service fees | 11,408 | 2,220 | 2,294 | 1,860 | ||||||||||||
Custodian fees | 49,231 | 13,009 | 21,831 | 18,067 | ||||||||||||
Transfer agent fees | 47,563 | 47,519 | 46,578 | 47,507 | ||||||||||||
Trustee fees | 27,949 | 6,057 | 5,756 | 8,953 | ||||||||||||
Other fees | 152,638 | 43,475 | 41,433 | 56,999 | ||||||||||||
Total expenses before reductions | 2,507,047 | 530,379 | 511,860 | 652,704 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (446,574 | ) | (187,634 | ) | (60,132 | ) | (261,448 | ) | ||||||||
Less expenses waived by the distributor—Class A | (8,971 | ) | (1,584 | ) | (3,651 | ) | (3,500 | ) | ||||||||
Net Expenses | 2,051,502 | 341,161 | 448,077 | 387,756 | ||||||||||||
Net Investment Income | 12,616,692 | 2,968,857 | 1,997,274 | 4,340,495 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains (losses) from investments | 845,316 | (273,219 | ) | (54,774 | ) | (38,674 | ) | |||||||||
Change in unrealized appreciation/depreciation on investments | (2,263,544 | ) | 367,254 | (94,705 | ) | 288,968 | ||||||||||
Net realized/unrealized gains (losses) from investments | (1,418,228 | ) | 94,035 | (149,479 | ) | 250,294 | ||||||||||
Change in net assets resulting from operations | $ | 11,198,464 | $ | 3,062,892 | $ | 1,847,795 | $ | 4,590,789 | ||||||||
See notes to financial statements.
34
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,341,468 | $ | 632,605 | $ | 2,384,781 | $ | 1,737,564 | $ | (1,063,298 | ) | $ | (1,035,072 | ) | ||||||||||
Net realized gains from investments, futures and foreign currency transactions and reimbursement from affiliates of realized losses on the disposal of investments in violation of restrictions | 13,445,612 | 6,692,016 | 25,040,337 | 13,917,604 | 75,279,321 | 35,641,662 | ||||||||||||||||||
Change in unrealized appreciation/depreciation on investments, futures and foreign currency transactions | 22,968,229 | 1,934,685 | 24,814,151 | 10,588,445 | (28,351,126 | ) | (23,151,245 | ) | ||||||||||||||||
Change in net assets resulting from operations | 37,755,309 | 9,259,306 | 52,239,269 | 26,243,613 | 45,864,897 | 11,455,345 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (30,376 | ) | (12,758 | ) | (10,569 | ) | (6,708 | ) | — | — | ||||||||||||||
From net realized gains | (233,425 | ) | (92,945 | ) | — | — | (15,602,529 | ) | (9,820,847 | ) | ||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (3,523 | ) | (1,860 | ) | (2,162 | ) | (2,067 | ) | — | — | ||||||||||||||
From net realized gains | (65,066 | ) | (26,014 | ) | — | — | (251,200 | ) | (243,751 | ) | ||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,951 | ) | (1,278 | ) | (1,971 | ) | (1,862 | ) | — | — | ||||||||||||||
From net realized gains | (47,463 | ) | (16,651 | ) | — | — | (1,512,887 | ) | (690,409 | ) | ||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,307,692 | ) | (637,214 | ) | (2,600,031 | ) | (1,775,203 | ) | — | — | ||||||||||||||
From net realized gains | (8,514,850 | ) | (2,482,497 | ) | — | — | (16,320,588 | ) | (9,420,884 | ) | ||||||||||||||
Change in net assets from shareholder distributions | (10,205,346 | ) | (3,271,217 | ) | (2,614,733 | ) | (1,785,840 | ) | (33,687,204 | ) | (20,175,891 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 1,263,213 | 36,476,710 | (13,143,116 | ) | 92,467,660 | 93,297,720 | 201,307,844 | |||||||||||||||||
Change in net assets | 28,813,176 | 42,464,799 | 36,481,420 | 116,925,433 | 105,475,413 | 192,587,298 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 89,045,126 | 46,580,327 | 212,066,990 | 95,141,557 | 430,972,592 | 238,385,294 | ||||||||||||||||||
End of year | $ | 117,858,302 | $ | 89,045,126 | $ | 248,548,410 | $ | 212,066,990 | $ | 536,448,005 | $ | 430,972,592 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 87,230 | $ | (33,366 | ) | $ | (224,021 | ) | $ | (433,776 | ) | $ | — | $ | — | |||||||||
See notes to financial statements.
35
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 783,956 | $ | 453,145 | $ | 496,878 | $ | 378,695 | $ | 114,314,923 | $ | 140,268,644 | ||||||||||||
Dividends reinvested | 215,939 | 91,056 | 8,371 | 5,677 | 14,385,367 | 9,061,442 | ||||||||||||||||||
Cost of shares redeemed | (664,241 | ) | (312,874 | ) | (534,460 | ) | (482,822 | ) | (120,465,234 | ) | (33,422,466 | ) | ||||||||||||
Change in net assets from Class A | $ | 335,654 | $ | 231,327 | $ | (29,211 | ) | $ | (98,450 | ) | $ | 8,235,056 | $ | 115,907,620 | ||||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 95,081 | $ | 299,499 | $ | 53,290 | $ | 49,852 | $ | 58,069 | $ | 175,508 | ||||||||||||
Dividends reinvested | 45,049 | 22,513 | 1,862 | 1,899 | 238,041 | 234,792 | ||||||||||||||||||
Cost of shares redeemed | (274,934 | ) | (173,750 | ) | (209,441 | ) | (155,256 | ) | (986,558 | ) | (758,450 | ) | ||||||||||||
Change in net assets from Class B | $ | (134,804 | ) | $ | 148,262 | $ | (154,289 | ) | $ | (103,505 | ) | $ | (690,448 | ) | $ | (348,150 | ) | |||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 166,184 | $ | 213,571 | $ | 102,387 | $ | 121,026 | $ | 10,931,408 | $ | 10,271,763 | ||||||||||||
Dividends reinvested | 48,033 | 16,897 | 1,971 | 1,862 | 1,347,711 | 645,787 | ||||||||||||||||||
Cost of shares redeemed | (179,524 | ) | (114,287 | ) | (242,606 | ) | (120,564 | ) | (3,079,199 | ) | (1,410,781 | ) | ||||||||||||
Change in net assets from Class C | $ | 34,693 | $ | 116,181 | $ | (138,248 | ) | $ | 2,324 | $ | 9,199,920 | $ | 9,506,769 | |||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 15,558,241 | $ | 46,217,077 | $ | 37,672,252 | $ | 119,632,755 | $ | 144,851,595 | $ | 104,956,829 | ||||||||||||
Dividends reinvested | 7,216,565 | 2,087,752 | 140,765 | 94,026 | 13,068,368 | 7,656,477 | ||||||||||||||||||
Cost of shares redeemed | (21,747,136 | ) | (12,323,889 | ) | (50,634,385 | ) | (27,059,490 | ) | (81,366,771 | ) | (36,371,701 | ) | ||||||||||||
Change in net assets from Class Y | $ | 1,027,670 | $ | 35,980,940 | $ | (12,821,368 | ) | $ | 92,667,291 | $ | 76,553,192 | $ | 76,241,605 | |||||||||||
Change in net assets from capital transactions | $ | 1,263,213 | $ | 36,476,710 | $ | (13,143,116 | ) | $ | 92,467,660 | $ | 93,297,720 | $ | 201,307,844 | |||||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 39,710 | 27,659 | 38,788 | 36,049 | 6,010,678 | 7,789,242 | ||||||||||||||||||
Reinvested | 11,983 | 5,981 | 651 | 529 | 775,074 | 530,219 | ||||||||||||||||||
Redeemed | (34,381 | ) | (19,638 | ) | (41,853 | ) | (50,222 | ) | (6,451,599 | ) | (1,865,525 | ) | ||||||||||||
Change in Class A | 17,312 | 14,002 | (2,414 | ) | (13,644 | ) | 334,153 | 6,453,936 | ||||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 5,045 | 19,301 | 4,596 | 5,088 | 3,152 | 10,339 | ||||||||||||||||||
Reinvested | 2,642 | 1,543 | 150 | 188 | 13,736 | 14,529 | ||||||||||||||||||
Redeemed | (14,963 | ) | (11,008 | ) | (18,084 | ) | (15,812 | ) | (55,256 | ) | (45,167 | ) | ||||||||||||
Change in Class B | (7,276 | ) | 9,836 | (13,338 | ) | (10,536 | ) | (38,368 | ) | (20,299 | ) | |||||||||||||
�� | ||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 9,105 | 13,909 | 8,824 | 12,705 | 613,373 | 600,506 | ||||||||||||||||||
Reinvested | 2,815 | 1,156 | 159 | 184 | 77,723 | 39,937 | ||||||||||||||||||
Redeemed | (9,909 | ) | (7,606 | ) | (20,786 | ) | (12,333 | ) | (171,118 | ) | (82,573 | ) | ||||||||||||
Change in Class C | 2,011 | 7,459 | (11,803 | ) | 556 | 519,978 | 557,870 | |||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 824,223 | 2,842,168 | 3,002,553 | 11,411,986 | 7,556,310 | 5,764,483 | ||||||||||||||||||
Reinvested | 398,281 | 135,820 | 10,711 | 8,617 | 692,915 | 442,315 | ||||||||||||||||||
Redeemed | (1,187,164 | ) | (754,183 | ) | (4,250,018 | ) | (2,595,338 | ) | (4,193,411 | ) | (2,022,346 | ) | ||||||||||||
Change in Class Y | 35,340 | 2,223,805 | (1,236,754 | ) | 8,825,265 | 4,055,814 | 4,184,452 | |||||||||||||||||
Change in shares | 47,387 | 2,255,102 | (1,264,309 | ) | 8,801,641 | 4,871,577 | 11,175,959 | |||||||||||||||||
See notes to financial statements.
36
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 413,804 | $ | 279,078 | $ | 232,635 | $ | (205,468 | ) | $ | 1,205,086 | $ | 781,745 | |||||||||||
Net realized gains from investments and reimbursement from affiliates | 9,339,409 | 8,254,095 | 14,282,281 | 17,584,272 | 19,482,302 | 8,440,381 | ||||||||||||||||||
Change in unrealized appreciation/depreciation on investments | (1,353,818 | ) | (7,208,651 | ) | 5,478,060 | (20,316,335 | ) | (3,753,343 | ) | (8,778,523 | ) | |||||||||||||
Change in net assets resulting from operations | 8,399,395 | 1,324,522 | 19,992,976 | (2,937,531 | ) | 16,934,045 | 443,603 | |||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (3,457 | ) | (1,303 | ) | (2,392 | ) | — | (33,411 | ) | (14,876 | ) | |||||||||||||
From net realized gains | (105,113 | ) | (44,186 | ) | — | — | — | — | ||||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,893 | ) | — | (1,898 | ) | — | ||||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,481 | ) | — | (345 | ) | — | (782 | ) | — | |||||||||||||||
From net realized gains | (76,582 | ) | (34,171 | ) | — | — | — | — | ||||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (430,668 | ) | (278,041 | ) | (212,093 | ) | — | (1,196,850 | ) | (786,135 | ) | |||||||||||||
From net realized gains | (7,791,799 | ) | (4,339,969 | ) | — | — | — | — | ||||||||||||||||
Change in net assets from shareholder distributions | (8,409,100 | ) | (4,697,670 | ) | (216,723 | ) | — | (1,232,941 | ) | (801,011 | ) | |||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (3,021,801 | ) | (6,408,652 | ) | (14,034,119 | ) | (76,319,431 | ) | (25,923,455 | ) | 14,670,990 | |||||||||||||
Change in net assets | (3,031,506 | ) | (9,781,800 | ) | 5,742,134 | (79,256,962 | ) | (10,222,351 | ) | 14,313,582 | ||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 74,627,761 | 84,409,561 | 163,603,922 | 242,860,884 | 165,283,073 | 150,969,491 | ||||||||||||||||||
End of year | $ | 71,596,255 | $ | 74,627,761 | $ | 169,346,056 | $ | 163,603,922 | $ | 155,060,722 | $ | 165,283,073 | ||||||||||||
Undistributed net investment income | $ | — | $ | 5,576 | $ | 15,912 | $ | — | $ | — | $ | — | ||||||||||||
See notes to financial statements.
37
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 129,870 | $ | 383,639 | $ | 1,844,027 | $ | 1,048,926 | $ | 1,922,868 | $ | 1,221,279 | ||||||||||||
Dividends reinvested | 90,453 | 40,872 | 2,255 | — | 31,550 | 13,876 | ||||||||||||||||||
Cost of shares redeemed | (411,174 | ) | (259,682 | ) | (2,891,919 | ) | (2,795,356 | ) | (1,981,641 | ) | (1,264,819 | ) | ||||||||||||
Change in net assets from Class A | $ | (190,851 | ) | $ | 164,829 | $ | (1,045,637 | ) | $ | (1,746,430 | ) | $ | (27,223 | ) | $ | (29,664 | ) | |||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 12,422 | $ | 6,200 | $ | 15,672 | $ | 19,030 | ||||||||||||||||
Dividends reinvested | 1,794 | — | 1,805 | — | ||||||||||||||||||||
Cost of shares redeemed | (4,046,880 | ) | (2,913,965 | ) | (2,726,151 | ) | (1,872,404 | ) | ||||||||||||||||
Change in net assets from Class B | $ | (4,032,664 | ) | $ | (2,907,765 | ) | $ | (2,708,674 | ) | $ | (1,853,374 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 78,265 | $ | 168,956 | $ | 365,336 | $ | 488,069 | $ | 317,793 | $ | 497,890 | ||||||||||||
Dividends reinvested | 75,348 | 32,814 | 345 | — | 782 | — | ||||||||||||||||||
Cost of shares redeemed | (221,389 | ) | (137,152 | ) | (685,924 | ) | (472,323 | ) | (643,229 | ) | (489,975 | ) | ||||||||||||
Change in net assets from Class C | $ | (67,776 | ) | $ | 64,618 | $ | (320,243 | ) | $ | 15,746 | $ | (324,654 | ) | $ | 7,915 | |||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 22,491,892 | $ | 22,275,979 | $ | 42,744,571 | $ | 25,883,377 | $ | 19,646,624 | $ | 52,651,031 | ||||||||||||
Dividends reinvested | 6,344,791 | 3,699,549 | 28,615 | — | 88,238 | 61,585 | ||||||||||||||||||
Cost of shares redeemed | (31,599,857 | ) | (32,613,627 | ) | (51,408,761 | ) | (97,564,359 | ) | (42,597,766 | ) | (36,166,503 | ) | ||||||||||||
Change in net assets from Class Y | $ | (2,763,174 | ) | $ | (6,638,099 | ) | $ | (8,635,575 | ) | $ | (71,680,982 | ) | $ | (22,862,904 | ) | $ | 16,546,113 | |||||||
Change in net assets from capital transactions | $ | (3,021,801 | ) | $ | (6,408,652 | ) | $ | (14,034,119 | ) | $ | (76,319,431 | ) | $ | (25,923,455 | ) | $ | 14,670,990 | |||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 10,341 | 30,331 | 192,630 | 118,899 | 130,375 | 91,171 | ||||||||||||||||||
Reinvested | 7,785 | 3,338 | 239 | — | 2,126 | 1,039 | ||||||||||||||||||
Redeemed | (33,768 | ) | (20,699 | ) | (307,744 | ) | (321,307 | ) | (133,889 | ) | (94,788 | ) | ||||||||||||
Change in Class A | (15,642 | ) | 12,970 | (114,875 | ) | (202,408 | ) | (1,388 | ) | (2,578 | ) | |||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 1,450 | 755 | 1,079 | 1,543 | ||||||||||||||||||||
Reinvested | 205 | — | 130 | — | ||||||||||||||||||||
Redeemed | (463,051 | ) | (352,973 | ) | (197,390 | ) | (147,728 | ) | ||||||||||||||||
Change in Class B | (461,396 | ) | (352,218 | ) | (196,181 | ) | (146,185 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 6,522 | 13,576 | 42,283 | 60,206 | 23,234 | 39,700 | ||||||||||||||||||
Reinvested | 6,593 | 2,707 | 39 | — | 56 | — | ||||||||||||||||||
Redeemed | (18,054 | ) | (11,083 | ) | (78,394 | ) | (58,187 | ) | (46,381 | ) | (38,792 | ) | ||||||||||||
Change in Class C | (4,939 | ) | 5,200 | (36,072 | ) | 2,019 | (23,091 | ) | 908 | |||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,831,688 | 1,781,527 | 4,484,580 | 2,877,489 | 1,337,411 | 3,866,736 | ||||||||||||||||||
Reinvested | 544,557 | 301,972 | 2,866 | — | 5,899 | 4,567 | ||||||||||||||||||
Redeemed | (2,584,614 | ) | (2,614,371 | ) | (5,595,111 | ) | (10,672,676 | ) | (2,901,496 | ) | (2,662,202 | ) | ||||||||||||
Change in Class Y | (208,369 | ) | (530,872 | ) | (1,107,665 | ) | (7,795,187 | ) | (1,558,186 | ) | 1,209,101 | |||||||||||||
Change in shares | (228,950 | ) | (512,702 | ) | (1,720,008 | ) | (8,347,794 | ) | (1,778,846 | ) | 1,061,246 | |||||||||||||
See notes to financial statements.
38
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Value Fund | High Grade Core Fixed Income Fund | Tax-Free Securities Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,148,969 | $ | 1,896,144 | $ | 15,399,710 | $ | 12,985,935 | $ | 12,616,692 | $ | 12,820,543 | ||||||||||||
Net realized gains (losses) from investments and reimbursement from affiliates | 29,881,198 | 21,230,989 | 848,286 | (5,320,883 | ) | 845,316 | 1,944,124 | |||||||||||||||||
Change in unrealized appreciation/depreciation on investments | (11,305,014 | ) | (8,671,400 | ) | (912,112 | ) | (6,239,526 | ) | (2,263,544 | ) | (10,529,391 | ) | ||||||||||||
Change in net assets resulting from operations | 20,725,153 | 14,455,733 | 15,335,884 | 1,425,526 | 11,198,464 | 4,235,276 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (32,135 | ) | (29,785 | ) | (150,712 | ) | (169,659 | ) | (240,129 | ) | (277,861 | ) | ||||||||||||
From net realized gains | (334,935 | ) | — | — | (643 | ) | (5,509 | ) | (82,571 | ) | ||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (5,454 | ) | (2,951 | ) | (87,910 | ) | (118,746 | ) | (52,039 | ) | (90,662 | ) | ||||||||||||
From net realized gains | (163,267 | ) | — | — | (560 | ) | (1,690 | ) | (41,925 | ) | ||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (8,156 | ) | (6,505 | ) | (43,523 | ) | (40,060 | ) | (347 | ) | (322 | ) | ||||||||||||
From net realized gains | (239,941 | ) | — | — | (179 | ) | (10 | ) | (134 | ) | ||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,137,579 | ) | (1,881,799 | ) | (14,790,453 | ) | (12,637,055 | ) | (12,324,177 | ) | (12,451,699 | ) | ||||||||||||
From net realized gains | (18,856,455 | ) | — | — | (44,146 | ) | (264,559 | ) | (4,023,324 | ) | ||||||||||||||
Change in net assets from shareholder distributions | (21,777,922 | ) | (1,921,040 | ) | (15,072,598 | ) | (13,011,048 | ) | (12,888,460 | ) | (16,968,498 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (1,427,365 | ) | (48,836,203 | ) | 18,252,103 | 2,876,058 | (4,733,676 | ) | (19,727,486 | ) | ||||||||||||||
Change in net assets | (2,480,134 | ) | (36,301,510 | ) | 18,515,389 | (8,709,464 | ) | (6,423,672 | ) | (32,460,708 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 152,181,466 | 188,482,976 | 295,313,844 | 304,023,308 | 295,721,120 | 328,181,828 | ||||||||||||||||||
End of year | $ | 149,701,332 | $ | 152,181,466 | $ | 313,829,233 | $ | 295,313,844 | $ | 289,297,448 | $ | 295,721,120 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 1 | $ | 1 | $ | (41,197 | ) | $ | (54,821 | ) | $ | 35 | $ | 35 | ||||||||||
See notes to financial statements.
39
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Value Fund | High Grade Core Fixed Income Fund | Tax-Free Securities Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 761,040 | $ | 656,723 | $ | 826,490 | $ | 465,407 | $ | 476,532 | $ | 1,795,604 | ||||||||||||
Dividends reinvested | 248,033 | 17,303 | 111,400 | 121,005 | 134,662 | 167,114 | ||||||||||||||||||
Cost of shares redeemed | (1,006,964 | ) | (826,433 | ) | (1,523,238 | ) | (1,310,557 | ) | (1,276,278 | ) | (4,433,332 | ) | ||||||||||||
Change in net assets from Class A | $ | 2,109 | $ | (152,407 | ) | $ | (585,348 | ) | $ | (724,145 | ) | $ | (665,084 | ) | $ | (2,470,614 | ) | |||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 54,944 | $ | 83,910 | $ | 6,011 | $ | — | $ | — | $ | 58,339 | ||||||||||||
Dividends reinvested | 145,556 | 2,726 | 73,836 | 103,584 | 33,971 | 77,187 | ||||||||||||||||||
Cost of shares redeemed | (526,404 | ) | (231,741 | ) | (1,406,977 | ) | (1,037,431 | ) | (1,308,938 | ) | (982,114 | ) | ||||||||||||
Change in net assets from Class B | $ | (325,904 | ) | $ | (145,105 | ) | $ | (1,327,130 | ) | $ | (933,847 | ) | $ | (1,274,967 | ) | $ | (846,588 | ) | ||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 275,434 | $ | 388,540 | $ | 214,494 | $ | 380,413 | $ | — | $ | — | ||||||||||||
Dividends reinvested | 247,629 | 6,493 | 43,144 | 39,810 | 359 | 455 | ||||||||||||||||||
Cost of shares redeemed | (765,205 | ) | (308,116 | ) | (621,624 | ) | (241,584 | ) | — | — | ||||||||||||||
Change in net assets from Class C | $ | (242,142 | ) | $ | 86,917 | $ | (363,986 | ) | $ | 178,639 | $ | 359 | $ | 455 | ||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 45,085,240 | $ | 20,026,418 | $ | 70,474,420 | $ | 73,928,218 | $ | 48,411,120 | $ | 34,670,344 | ||||||||||||
Dividends reinvested | 12,547,672 | 58,902 | 1,184,100 | 1,153,025 | 278,586 | 3,949,344 | ||||||||||||||||||
Cost of shares redeemed | (58,494,340 | ) | (68,710,928 | ) | (51,129,953 | ) | (70,725,832 | ) | (51,483,690 | ) | (55,030,427 | ) | ||||||||||||
Change in net assets from Class Y | $ | (861,428 | ) | $ | (48,625,608 | ) | $ | 20,528,567 | $ | 4,355,411 | $ | (2,793,984 | ) | $ | (16,410,739 | ) | ||||||||
Change in net assets from capital transactions | $ | (1,427,365 | ) | $ | (48,836,203 | ) | $ | 18,252,103 | $ | 2,876,058 | $ | (4,733,676 | ) | $ | (19,727,486 | ) | ||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 69,132 | 65,517 | 77,209 | 43,068 | 46,877 | 175,783 | ||||||||||||||||||
Reinvested | 23,689 | 1,698 | 10,391 | 11,243 | 13,236 | 16,297 | ||||||||||||||||||
Redeemed | (91,780 | ) | (82,367 | ) | (141,923 | ) | (122,019 | ) | (125,657 | ) | (430,595 | ) | ||||||||||||
Change in Class A | 1,041 | (15,152 | ) | (54,323 | ) | (67,708 | ) | (65,544 | ) | (238,515 | ) | |||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 5,017 | 8,607 | 563 | — | — | 5,577 | ||||||||||||||||||
Reinvested | 14,225 | 272 | 6,896 | 9,638 | 3,336 | 7,531 | ||||||||||||||||||
Redeemed | (49,005 | ) | (23,084 | ) | (131,317 | ) | (96,960 | ) | (128,458 | ) | (95,970 | ) | ||||||||||||
Change in Class B | (29,763 | ) | (14,205 | ) | (123,858 | ) | (87,322 | ) | (125,122 | ) | (82,862 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 25,730 | 39,306 | 20,037 | 35,642 | — | — | ||||||||||||||||||
Reinvested | 24,128 | 651 | 4,031 | 3,711 | 35 | 45 | ||||||||||||||||||
Redeemed | (70,852 | ) | (30,674 | ) | (57,952 | ) | (22,508 | ) | — | — | ||||||||||||||
Change in Class C | (20,994 | ) | 9,283 | (33,884 | ) | 16,845 | 35 | 45 | ||||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 4,167,773 | 1,981,473 | 6,546,520 | 6,801,580 | 4,745,845 | 3,336,077 | ||||||||||||||||||
Reinvested | 1,199,266 | 5,768 | 109,808 | 106,477 | 26,967 | 384,175 | ||||||||||||||||||
Redeemed | (5,367,005 | ) | (6,818,213 | ) | (4,738,273 | ) | (6,521,294 | ) | (5,042,615 | ) | (5,331,997 | ) | ||||||||||||
Change in Class Y | 34 | (4,830,972 | ) | 1,918,055 | 386,763 | (269,803 | ) | (1,611,745 | ) | |||||||||||||||
Change in shares | (49,682 | ) | (4,851,046 | ) | 1,705,990 | 248,578 | (460,434 | ) | (1,933,077 | ) | ||||||||||||||
See notes to financial statements.
40
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,968,857 | $ | 2,800,923 | $ | 1,997,274 | $ | 2,095,527 | $ | 4,340,495 | $ | 4,115,742 | ||||||||||||
Net realized losses from investments and reimbursement from affiliates | (273,219 | ) | (1,689,160 | ) | (54,774 | ) | (645,170 | ) | (38,674 | ) | (831,923 | ) | ||||||||||||
Change in unrealized appreciation/depreciation on investments | 367,254 | 625,450 | (94,705 | ) | (450,125 | ) | 288,968 | 783,679 | ||||||||||||||||
Change in net assets resulting from operations | 3,062,892 | 1,737,213 | 1,847,795 | 1,000,232 | 4,590,789 | 4,067,498 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (46,519 | ) | (52,956 | ) | (75,560 | ) | (92,367 | ) | (104,990 | ) | (121,419 | ) | ||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (40,257 | ) | (31,746 | ) | ||||||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (21,528 | ) | (17,477 | ) | (241 | ) | (204 | ) | (53,618 | ) | (37,634 | ) | ||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,884,130 | ) | (2,730,489 | ) | (1,921,473 | ) | (2,002,956 | ) | (4,148,773 | ) | (3,924,943 | ) | ||||||||||||
Change in net assets from shareholder distributions | (2,952,177 | ) | (2,800,922 | ) | (1,997,274 | ) | (2,095,527 | ) | (4,347,638 | ) | (4,115,742 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 1,999,489 | (25,145,868 | ) | (12,448,040 | ) | (2,150,625 | ) | (11,429,346 | ) | (34,084,842 | ) | |||||||||||||
Change in net assets | 2,110,204 | (26,209,577 | ) | (12,597,519 | ) | (3,245,920 | ) | (11,186,195 | ) | (34,133,086 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 62,192,882 | 88,402,459 | 65,617,744 | 68,863,664 | 101,210,207 | 135,343,293 | ||||||||||||||||||
End of year | $ | 64,303,086 | $ | 62,192,882 | $ | 53,020,225 | $ | 65,617,744 | $ | 90,024,012 | $ | 101,210,207 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (7,378 | ) | $ | 52 | $ | 762 | $ | 762 | $ | — | $ | 7,143 | |||||||||||
See notes to financial statements.
41
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
High Grade Short Intermediate Fixed Income Fund | Tax-Free Short Intermediate Securities Fund | U.S. Government Short Fixed Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | Year Ended July 31, 2007 | Year Ended July 31, 2006 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 20,205 | $ | 113,780 | $ | 42,943 | $ | 221,299 | $ | 132,054 | $ | 63,818 | ||||||||||||
Dividends reinvested | 39,954 | 42,163 | 64,014 | 79,015 | 58,205 | 41,089 | ||||||||||||||||||
Cost of shares redeemed | (340,020 | ) | (654,246 | ) | (719,044 | ) | (1,239,673 | ) | (285,647 | ) | (4,297,597 | ) | ||||||||||||
Change in net assets from Class A | $ | (279,861 | ) | $ | (498,303 | ) | $ | (612,087 | ) | $ | (939,359 | ) | $ | (95,388 | ) | $ | (4,192,690 | ) | ||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 4,275 | $ | 70,821 | ||||||||||||||||||||
Dividends reinvested | 37,740 | 28,091 | ||||||||||||||||||||||
Cost of shares redeemed | (458,927 | ) | (468,971 | ) | ||||||||||||||||||||
Change in net assets from Class B | $ | (416,912 | ) | $ | (370,059 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 98,451 | $ | 177,758 | $ | — | $ | — | $ | 302,132 | $ | 544,880 | ||||||||||||
Dividends reinvested | 21,344 | 17,275 | 243 | 203 | 52,928 | 36,917 | ||||||||||||||||||
Cost of shares redeemed | (286,055 | ) | (142,973 | ) | — | — | (757,324 | ) | (901,056 | ) | ||||||||||||||
Change in net assets from Class C | $ | (166,260 | ) | $ | 52,060 | $ | 243 | $ | 203 | $ | (402,264 | ) | $ | (319,259 | ) | |||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 18,637,875 | $ | 13,866,301 | $ | 6,723,639 | $ | 14,789,608 | $ | 18,585,051 | $ | 37,896,312 | ||||||||||||
Dividends reinvested | 326,887 | 298,346 | 6,468 | 2,897 | 1,840,631 | 1,155,588 | ||||||||||||||||||
Cost of shares redeemed | (16,519,152 | ) | (38,864,272 | ) | (18,566,303 | ) | (16,003,974 | ) | (30,940,464 | ) | (68,254,734 | ) | ||||||||||||
Change in net assets from Class Y | $ | 2,445,610 | $ | (24,699,625 | ) | $ | (11,836,196 | ) | $ | (1,211,469 | ) | $ | (10,514,782 | ) | $ | (29,202,834 | ) | |||||||
Change in net assets from capital transactions | $ | 1,999,489 | $ | (25,145,868 | ) | $ | (12,448,040 | ) | $ | (2,150,625 | ) | $ | (11,429,346 | ) | $ | (34,084,842 | ) | |||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 2,103 | 11,773 | 4,260 | 21,778 | 13,116 | 6,369 | ||||||||||||||||||
Reinvested | 4,168 | 4,408 | 6,355 | 7,808 | 5,783 | 4,099 | ||||||||||||||||||
Redeemed | (35,467 | ) | (68,229 | ) | (71,276 | ) | (122,403 | ) | (28,448 | ) | (428,482 | ) | ||||||||||||
Change in Class A | (29,196 | ) | (52,048 | ) | (60,661 | ) | (92,817 | ) | (9,549 | ) | (418,014 | ) | ||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 425 | 7,064 | ||||||||||||||||||||||
Reinvested | 3,749 | 2,803 | ||||||||||||||||||||||
Redeemed | (45,582 | ) | (46,737 | ) | ||||||||||||||||||||
Change in Class B | (41,408 | ) | (36,870 | ) | ||||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 10,275 | 18,642 | — | — | 30,003 | 54,349 | ||||||||||||||||||
Reinvested | 2,228 | 1,809 | 24 | 20 | 5,257 | 3,683 | ||||||||||||||||||
Redeemed | (29,825 | ) | (14,950 | ) | — | — | (75,186 | ) | (89,871 | ) | ||||||||||||||
Change in Class C | (17,322 | ) | 5,501 | 24 | 20 | (39,926 | ) | (31,839 | ) | |||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,939,987 | 1,444,750 | 664,404 | 1,449,315 | 1,843,594 | 3,775,621 | ||||||||||||||||||
Reinvested | 34,045 | 31,128 | 639 | 286 | 182,747 | 115,201 | ||||||||||||||||||
Redeemed | (1,718,044 | ) | (4,049,088 | ) | (1,833,587 | ) | (1,573,015 | ) | (3,071,568 | ) | (6,801,135 | ) | ||||||||||||
Change in Class Y | 255,988 | (2,573,210 | ) | (1,168,544 | ) | (123,414 | ) | (1,045,227 | ) | (2,910,313 | ) | |||||||||||||
Change in shares | 209,470 | (2,619,757 | ) | (1,229,181 | ) | (216,211 | ) | (1,136,110 | ) | (3,397,036 | ) | |||||||||||||
See notes to financial statements.
42
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (96.7%) | ||||
China (6.3%) | ||||
Consumer Discretionary (3.8%) | ||||
1,123,000 | China Resources Enterprise Ltd. | 4,446,079 | ||
Energy (2.5%) | ||||
912,000 | China Oilfield Services Ltd., Class H | 1,314,448 | ||
434,000 | China Shenhua Energy Co. Ltd. | 1,703,689 | ||
3,018,137 | ||||
7,464,216 | ||||
Hong Kong (25.1%) | ||||
Consumer Discretionary (6.5%) | ||||
348,000 | Cheung Kong Holdings Ltd. | 4,883,547 | ||
699,200 | Li & Fung Ltd. | 2,422,876 | ||
166,000 | Shangri-La Asia Ltd. | 393,090 | ||
7,699,513 | ||||
Energy (2.9%) | ||||
2,866,500 | CNOOC Ltd. | 3,411,226 | ||
Financials (4.3%) | ||||
766,000 | Hang Lung Group Ltd. | 3,756,061 | ||
108,500 | Wing Hang Bank Ltd. | 1,360,572 | ||
5,116,633 | ||||
Industrials (5.1%) | ||||
207,242 | Kerry Properties Ltd. | 1,493,523 | ||
221,000 | Kingboard Chemical Holdings Ltd. | 1,216,552 | ||
167,000 | Swire Pacific Ltd., Class A | 1,890,365 | ||
622,500 | Swire Pacific Ltd., Class B | 1,417,004 | ||
6,017,444 | ||||
Telecommunications (3.2%) | ||||
6,110,000 | China Telecom Corp. Ltd., Class H | 3,537,184 | ||
193,000 | Hutchison Telecommunications International Ltd. | 241,691 | ||
3,778,875 | ||||
Utilities (3.1%) | ||||
1,549,800 | Hong Kong & China Gas Co. Ltd. | 3,594,822 | ||
29,618,513 | ||||
India (2.2%) | ||||
Financials (1.6%) | ||||
12,900 | HDFC Bank Ltd., ADR | 1,117,269 | ||
17,000 | ICICI Bank Ltd., ADR | 753,440 | ||
1,870,709 | ||||
Information Technology (0.6%) | ||||
14,500 | Infosys Technologies Ltd., ADR | 719,200 | ||
2,589,909 | ||||
Malaysia (10.0%) | ||||
Consumer Discretionary (3.4%) | ||||
754,200 | Astro All Asia Networks PLC | 844,880 | ||
1,392,500 | Genting Berhad | 3,179,000 | ||
4,023,880 | ||||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Malaysia, continued | ||||
Financials (1.2%) | ||||
360,200 | Bumiputra-Commerce Holdings Bhd | 1,214,134 | ||
37,400 | Sime Darby Berhad | 108,987 | ||
1,323,121 | ||||
Industrials (5.4%) | ||||
509,100 | Gamuda Berhad | 1,141,717 | ||
2,701,000 | IOI Corp. Berhad | 4,103,280 | ||
361,200 | Tenaga Nasional Berhad | 1,138,190 | ||
6,383,187 | ||||
11,730,188 | ||||
Philippines (2.9%) | ||||
Financials (1.0%) | ||||
99,339 | Ayala Corp. | 1,148,804 | ||
Telecommunications (1.9%) | ||||
15,422 | Philippine Long Distance Telephone Co. | 877,463 | ||
23,700 | Philippine Long Distance Telephone Co. ADR | 1,354,692 | ||
2,232,155 | ||||
3,380,959 | ||||
Singapore (14.9%) | ||||
Consumer Staples (2.8%) | ||||
976,000 | Fraser & Neave Ltd. | 3,324,931 | ||
Financials (5.2%) | ||||
130,000 | Great Eastern Holdings Ltd. | 1,578,828 | ||
763,346 | Oversea-Chinese Banking Corp. Ltd. | 4,517,498 | ||
6,096,326 | ||||
Industrials (6.4%) | ||||
511,000 | Keppel Corp. Ltd. | 4,460,697 | ||
828,000 | SembCorp Industries Ltd. | 3,087,017 | ||
7,547,714 | ||||
Telecommunications (0.5%) | ||||
292,290 | StarHub Ltd.-10 (a) | 555,530 | ||
17,524,501 | ||||
South Korea (11.9%) | ||||
Consumer Discretionary (3.8%) | ||||
33,150 | LG Corp. | 1,880,881 | ||
3,970 | Shinsegae Co. Ltd. | 2,592,512 | ||
4,473,393 | ||||
Financials (3.9%) | ||||
9,856 | Samsung Fire & Marine Insurance Co. Ltd. | 2,023,703 | ||
37,560 | Shinhan Financial Group Co. Ltd. | 2,542,524 | ||
4,566,227 | ||||
Industrials (0.5%) | ||||
5,937 | Doosan Heavy Industries and Construction Co. Ltd. | 621,851 | ||
See notes to financial statements.
43
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
South Korea, continued | ||||
Information Technology (3.7%) | ||||
18,750 | S1 Corp. | 1,080,869 | ||
5,057 | Samsung Electronics Co. Ltd. | 3,339,380 | ||
4,420,249 | ||||
14,081,720 | ||||
Taiwan (17.6%) | ||||
Consumer Staples (1.9%) | ||||
2,138,000 | Uni-President Enterprises Corp. | 2,293,410 | ||
Electrical Components & Equipment (2.7%) | ||||
805,463 | Delta Electronics, Inc. | 3,156,361 | ||
Financials (3.0%) | ||||
708,000 | Cathay Financial Holding Co. Ltd. | 1,838,445 | ||
1,294,000 | Chinatrust Financial Holding Company Ltd. (a) | 1,018,957 | ||
1,336,200 | E.SUN Financial Holding Co. Ltd. | 746,662 | ||
3,604,064 | ||||
Industrials (1.1%) | ||||
529,000 | Formosa Plastics Corp. | 1,298,586 | ||
Information Technology (8.9%) | ||||
186,674 | Advantech Co. Ltd. | 589,756 | ||
388,100 | Asustek Computer, Inc. | 1,102,452 | ||
204,371 | Hon Hai Precision Industry Co. Ltd. | 1,680,858 | ||
610,550 | Powertech Technology, Inc. (a) | 2,850,955 | ||
2,148,688 | Taiwan Semiconductor Manufacturing Co. Ltd. | 4,220,290 | ||
10,444,311 | ||||
20,796,732 | ||||
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Thailand (4.1%) | |||||
Energy (2.1%) | |||||
266,500 | PTT PCL | 2,478,703 | |||
Financials (1.2%) | |||||
565,700 | Kasikornbank Public Co. Ltd. | 1,426,621 | |||
Telecommunications (0.8%) | |||||
308,900 | Advanced Info Service Public Company Ltd. | 889,426 | |||
4,794,750 | |||||
United Kingdom (1.7%) | |||||
Financials (1.7%) | |||||
61,423 | Standard Chartered PLC | 2,008,239 | |||
Total Common Stocks (Cost $77,406,132) | 113,989,727 | ||||
Investment Companies (3.0%) | |||||
3,531,854 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 3,531,854 | |||
Total Investment Companies (Cost $3,531,854) | 3,531,854 | ||||
Total Investments (Cost $80,937,986) (c)—99.7% | 117,521,581 | ||||
Other assets in excess of liabilities—0.3% | 336,721 | ||||
Net Assets—100.0% | $ | 117,858,302 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Cost for federal income tax purposes is $80,993,689. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 37,519,603 | ||
Unrealized depreciation | (991,711 | ) | ||
Net unrealized appreciation | $ | 36,527,892 | ||
ADR—American Depositary Receipt
PLC—Public Liability Co.
See notes to financial statements.
44
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (97.9%) | ||||
Australia (2.5%) | ||||
Energy (0.7%) | ||||
49,483 | Woodside Petroleum Ltd. | 1,798,969 | ||
Financials (0.8%) | ||||
87,619 | Westpac Banking Corp. | 1,936,984 | ||
Materials (1.0%) | ||||
42,121 | BHP Billiton Ltd. | 1,341,227 | ||
15,244 | Rio Tinto Ltd. | 1,187,929 | ||
2,529,156 | ||||
6,265,109 | ||||
Austria (0.6%) | ||||
Financials (0.6%) | ||||
20,826 | Erste Bank de Oesterreichischen Sparkassen AG | 1,566,653 | ||
Brazil (4.6%) | ||||
Consumer Staples (0.6%) | ||||
19,773 | Companhia De Bebidas das Americas (AmBev) | 1,354,451 | ||
Energy (1.3%) | ||||
49,739 | Petroleo Brasileiro SA, ADR | 3,228,061 | ||
Financials (0.5%) | ||||
29,443 | Banco Itau Holding Financeira SA, ADR | 1,346,723 | ||
Materials (1.7%) | ||||
28,228 | Companhia Vale do Rio Doce (CVRD), ADR | 1,383,454 | ||
66,411 | Companhia Vale do Rio Doce (CVRD), ADR | 2,811,178 | ||
4,194,632 | ||||
Utilities (0.5%) | ||||
58,952 | Companhia Energetica de Minas Gerais SA, ADR | 1,200,852 | ||
11,324,719 | ||||
Canada (3.4%) | ||||
Consumer Staples (0.6%) | ||||
33,250 | Loblaw Cos. Ltd. | 1,542,937 | ||
Energy (1.4%) | ||||
51,746 | Cameco Corp. | 2,110,202 | ||
15,534 | Suncor Energy, Inc. | 1,405,361 | ||
3,515,563 | ||||
Financials (1.4%) | ||||
24,881 | IGM Financial, Inc. | 1,253,265 | ||
58,037 | Manulife Financial Corp. | 2,120,672 | ||
3,373,937 | ||||
8,432,437 | ||||
Cayman Islands (0.5%) | ||||
Consumer Discretionary (0.5%) | ||||
28,203 | Focus Media Holding Ltd., ADR (a) | 1,165,066 | ||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
China (0.5%) | ||||
Consumer Discretionary (0.5%) | ||||
2,772,000 | Denway Motors Ltd. | 1,276,799 | ||
Denmark (0.9%) | ||||
Industrials (0.9%) | ||||
33,879 | Vestas Wind Systems A/S (a) | 2,246,067 | ||
France (9.4%) | ||||
Consumer Discretionary (1.3%) | ||||
11,893 | LVMH Moet Hennessy Louis Vuitton SA | 1,328,993 | ||
46,313 | Vivendi Universal SA | 1,967,002 | ||
3,295,995 | ||||
Consumer Staples (1.1%) | ||||
39,540 | Carrefour SA | 2,803,701 | ||
Energy (1.3%) | ||||
41,393 | Total SA, ADR | 3,253,904 | ||
Financials (1.9%) | ||||
30,675 | AXA | 1,196,958 | ||
48,243 | AXA, ADR | 1,889,196 | ||
15,838 | BNP Paribas SA | 1,740,808 | ||
4,826,962 | ||||
Industrials (1.4%) | ||||
14,526 | Electricite de France | 1,471,157 | ||
14,531 | Schneider Electric SA | 1,938,693 | ||
3,409,850 | ||||
Information Technology (1.3%) | ||||
90,499 | Alcatel-Lucent | 1,055,822 | ||
22,950 | Iliad SA | 2,091,920 | ||
3,147,742 | ||||
Telecommunications (0.6%) | ||||
37,392 | Neuf Cegetel | 1,461,770 | ||
Utilities (0.5%) | ||||
22,409 | Suez SA | 1,178,206 | ||
23,378,130 | ||||
Germany (6.0%) | ||||
Consumer Discretionary (1.5%) | ||||
61,612 | Adidas | 3,732,489 | ||
Financials (0.6%) | ||||
36,209 | Commerzbank AG | 1,559,005 | ||
Industrials (0.8%) | ||||
14,951 | Siemens AG | 1,892,079 | ||
Information Technology (1.6%) | ||||
72,709 | SAP AG, ADR | 3,920,469 | ||
Materials (0.6%) | ||||
6,068 | Wacker Chemie AG | 1,485,535 | ||
Telecommunications (0.9%) | ||||
29,239 | Millicom International Cellular SA (a) | 2,347,892 | ||
14,937,469 | ||||
See notes to financial statements.
45
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Greece (1.3%) | ||||
Consumer Discretionary (0.6%) | ||||
34,680 | Folli-Follie SA, Registered Shares | 1,408,707 | ||
Financials (0.7%) | ||||
31,035 | National Bank of Greece SA | 1,814,803 | ||
3,223,510 | ||||
Hong Kong (2.9%) | ||||
Consumer Discretionary (1.6%) | ||||
528,000 | Cosco Pacific Ltd. | 1,378,794 | ||
203,900 | Esprit Holdings Ltd. | 2,725,047 | ||
4,103,841 | ||||
Industrials (0.6%) | ||||
1,676,000 | Datang International Power Generation Co. Ltd. | 1,435,948 | ||
Information Technology (0.7%) | ||||
623,000 | Foxconn International Holdings Ltd. (a) | 1,783,813 | ||
7,323,602 | ||||
India (2.2%) | ||||
Financials (0.7%) | ||||
20,305 | HDFC Bank Ltd., ADR | 1,758,616 | ||
Information Technology (1.5%) | ||||
73,487 | Infosys Technologies Ltd., ADR | 3,644,955 | ||
5,403,571 | ||||
Indonesia (0.3%) | ||||
Financials (0.3%) | ||||
2,195,000 | PT Bank Mandiri | 816,888 | ||
Ireland (0.6%) | ||||
Financials (0.6%) | ||||
84,425 | Anglo Irish Bank Corp. | 1,564,758 | ||
Israel (0.7%) | ||||
Health Care (0.7%) | ||||
38,961 | Teva Pharmaceutical Industries Ltd., ADR | 1,637,141 | ||
Italy (4.2%) | ||||
Energy (2.5%) | ||||
49,621 | ENI SpA | 1,736,380 | ||
120,598 | Saipem SpA | 4,305,457 | ||
6,041,837 | ||||
Financials (1.7%) | ||||
504,715 | UniCredito Italiano SpA | 4,281,032 | ||
10,322,869 | ||||
Japan (15.2%) | ||||
Consumer Discretionary (3.8%) | ||||
32,200 | Daiei, Inc. (The) (a) | 291,298 | ||
285,000 | Isuzu Motors Ltd. | 1,547,384 | ||
78,000 | Onward Kashiyama Co. Ltd. | 931,381 | ||
80,000 | Sharp Corp. | 1,378,876 | ||
155,000 | Toshiba Corp. | 1,453,891 | ||
37,400 | Toyota Motor Corp. | 2,273,933 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Japan, continued | ||||
Consumer Discretionary, continued | ||||
14,500 | Yamada Denki Co. Ltd. | 1,440,960 | ||
9,317,723 | ||||
Financials (4.6%) | ||||
195,000 | Bank of Yokohama Ltd. (The) | 1,356,178 | ||
236,000 | Joyo Bank Ltd. (The) | 1,371,843 | ||
43,500 | Millea Holdings, Inc. | 1,730,610 | ||
59,600 | Nomura Holdings, Inc. | 1,131,430 | ||
7,340 | ORIX Corp. | 1,761,942 | ||
43,700 | Promise Co., Ltd. | 1,179,988 | ||
181 | Sumitomo Mitsui Financial Group, Inc. | 1,635,948 | ||
143,000 | Sumitomo Trust & Banking Co. Ltd. (The) | 1,207,464 | ||
11,375,403 | ||||
Health Care (1.0%) | ||||
78,000 | Shionogi & Co. Ltd. | 1,244,965 | ||
19,800 | Takeda Pharmaceutical Co. Ltd. | 1,289,961 | ||
2,534,926 | ||||
Industrials (2.9%) | ||||
93,000 | NGK Insulators Ltd. | 2,842,717 | ||
14,400 | SMC Corp. | 1,907,097 | ||
131,300 | Sumitomo Corp. | 2,543,202 | ||
7,293,016 | ||||
Information Technology (2.1%) | ||||
25,050 | Canon, Inc. | 1,324,168 | ||
15,700 | Nidec Corp. | 1,039,403 | ||
5,900 | Nintendo Co. Ltd. | 2,844,922 | ||
5,208,493 | ||||
Materials (0.8%) | ||||
40,000 | Nitto Denko Corp. | 2,098,889 | ||
37,828,450 | ||||
Mexico (2.5%) | ||||
Consumer Staples (1.0%) | ||||
32,637 | Fomento Economico Mexicano SA | 1,208,222 | ||
37,938 | Wal-Mart de Mexico SA de CV, ADR | 1,383,473 | ||
2,591,695 | ||||
Industrials (0.7%) | ||||
54,107 | Cemex SA de CV, ADR | 1,749,820 | ||
Telecommunications (0.8%) | ||||
33,138 | America Movil SAB de CV, Series L | 1,984,304 | ||
6,325,819 | ||||
Netherlands (1.9%) | ||||
Consumer Discretionary (0.7%) | ||||
43,061 | Koninklijke (Royal) Philips Electronics NV | 1,739,665 | ||
Consumer Staples (0.8%) | ||||
26,572 | Royal Numico NV | 1,932,919 | ||
See notes to financial statements.
46
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Netherlands, continued | ||||
Financials (0.4%) | ||||
27,071 | ING Groep NV | 1,142,665 | ||
4,815,249 | ||||
Norway (0.8%) | ||||
Information Technology (0.8%) | ||||
48,289 | Renewable Energy Corp AS (a) | 1,899,995 | ||
Russia (2.4%) | ||||
Energy (1.1%) | ||||
20,260 | LUKOIL, ADR | 1,638,021 | ||
26,937 | OAO Gazprom, ADR | 1,170,413 | ||
2,808,434 | ||||
Materials (1.3%) | ||||
42,675 | Evraz Group SA, GDR (b) | 2,078,272 | ||
4,643 | JSC MMC Norilsk Nickel, ADR | 1,040,032 | ||
3,118,304 | ||||
5,926,738 | ||||
Singapore (1.3%) | ||||
Financials (0.6%) | ||||
104,000 | DBS Group Holdings Ltd. | 1,555,931 | ||
Industrials (0.7%) | ||||
186,000 | Keppel Corp. Ltd. | 1,623,659 | ||
3,179,590 | ||||
South Korea (2.8%) | ||||
Consumer Discretionary (1.1%) | ||||
31,396 | Hyundai Motor Co. | 2,755,360 | ||
Financials (0.3%) | ||||
10,070 | Kookmin Bank | 879,184 | ||
Information Technology (1.4%) | ||||
5,169 | Samsung Electronics Co. Ltd. | 3,413,338 | ||
7,047,882 | ||||
Spain (3.5%) | ||||
Financials (2.6%) | ||||
96,461 | Banco Bilbao Vizcaya Argentaria SA | 2,361,157 | ||
212,687 | Banco Santander Central Hispano SA | 4,050,128 | ||
6,411,285 | ||||
Telecommunications (0.9%) | ||||
94,520 | Telefonica SA | 2,211,852 | ||
8,623,137 | ||||
Switzerland (9.0%) | ||||
Consumer Staples (1.2%) | ||||
7,466 | Nestle SA | 2,868,987 | ||
Financials (1.4%) | ||||
19,890 | Credit Suisse Group | 1,297,787 | ||
40,842 | UBS AG, Registered Shares | 2,261,631 | ||
3,559,418 | ||||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Switzerland, continued | ||||
Health Care (3.1%) | ||||
73,257 | Novartis AG | 3,952,450 | ||
13,834 | Roche Holding AG, Genusschien | 2,450,701 | ||
10,953 | Synthes, Inc. | 1,277,666 | ||
7,680,817 | ||||
Industrials (0.9%) | ||||
91,201 | ABB Ltd. | 2,193,817 | ||
Materials (2.4%) | ||||
18,132 | Ciba Specialty Chemicals AG, Registered Shares | 1,102,484 | ||
15,171 | Holcim Ltd. | 1,607,548 | ||
19,324 | Lonza Group AG, Registered Shares | 1,820,641 | ||
7,875 | Syngenta AG | 1,486,153 | ||
6,016,826 | ||||
22,319,865 | ||||
Taiwan (1.2%) | ||||
Information Technology (1.2%) | ||||
756,764 | Taiwan Semiconductor Manufacturing Co. Ltd. | 1,486,378 | ||
137,564 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,396,276 | ||
2,882,654 | ||||
Thailand (0.3%) | ||||
Financials (0.3%) | ||||
233,400 | Bangkok Bank PCL | 871,579 | ||
United Kingdom (16.4%) | ||||
Consumer Discretionary (2.3%) | ||||
244,212 | British Sky Broadcasting Group PLC | 3,283,882 | ||
32,840 | Carnival PLC | 1,432,400 | ||
535,018 | Signet Group PLC | 1,056,013 | ||
5,772,295 | ||||
Consumer Staples (1.1%) | ||||
24,624 | Reckitt Benckiser PLC | 1,317,404 | ||
162,315 | Tesco PLC | 1,333,065 | ||
2,650,469 | ||||
Financials (6.9%) | ||||
134,102 | Barclays PLC | 1,883,417 | ||
178,423 | Cattles PLC | 1,325,066 | ||
54,048 | HBOS PLC | 1,052,361 | ||
83,600 | HSBC Holdings PLC | 1,553,210 | ||
133,631 | ICAP PLC | 1,285,956 | ||
177,308 | Man Group PLC | 2,016,267 | ||
210,043 | Michael Page International PLC | 2,303,553 | ||
77,594 | Northern Rock PLC | 1,270,193 | ||
353,660 | Old Mutual PLC | 1,158,885 | ||
163,076 | Prudential Corp. PLC | 2,242,435 | ||
86,266 | Royal Bank of Scotland Group PLC (The) | 1,026,967 | ||
17,118,310 | ||||
See notes to financial statements.
47
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
United Kingdom, continued | ||||
Health Care (2.5%) | ||||
30,316 | AstraZeneca PLC | 1,566,663 | ||
82,169 | GlaxoSmithKline PLC | 2,079,344 | ||
216,374 | Smith & Nephew PLC | 2,575,062 | ||
6,221,069 | ||||
Information Technology (1.5%) | ||||
654,436 | ARM Holdings PLC | 1,948,510 | ||
108,031 | Autonomy Corp. PLC (a) | 1,796,814 | ||
3,745,324 | ||||
Materials (1.2%) | ||||
102,186 | BHP Billiton Ltd. PLC | 2,997,893 | ||
Telecommunications (0.9%) | ||||
75,491 | Vodafone Group PLC, ADR | 2,291,152 | ||
40,796,512 | ||||
Total Common Stocks (Cost $197,831,074) | 243,402,258 | |||
Shares | Security | Value ($) | |||
Investment Companies (1.9%) | |||||
4,765,197 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (c) | 4,765,197 | |||
Total Investment Companies (Cost $4,765,197) | 4,765,197 | ||||
Total Investments (Cost $202,596,271) (d)—99.8% | 248,167,455 | ||||
Other assets in excess of liabilities—0.2% | 380,955 | ||||
Net Assets—100.0% | $ | 248,548,410 | |||
(a) | Non-income producing security. |
(b) | Restricted security. |
(c) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(d) | Cost for federal income tax purposes is $203,035,101. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 49,453,817 | ||
Unrealized depreciation | (4,321,463 | ) | ||
Net unrealized appreciation | $ | 45,132,354 | ||
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
PCL—Public Co. Ltd.
PLC—Public Liability Co.
See notes to financial statements.
48
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (99.0%) | ||||
Consumer Discretionary (17.0%) | ||||
82,020 | ABM Industries, Inc. | 2,063,623 | ||
16,200 | Aeropostale, Inc. (a) | 616,896 | ||
75,994 | AFC Enterprises, Inc. (a) | 1,190,826 | ||
54,612 | Aftermarket Technology Corp. (a) | 1,657,474 | ||
61,900 | American Greetings Corp., Class A | 1,530,787 | ||
23,200 | AnnTaylor Stores Corp. (a) | 728,944 | ||
30,899 | Apogee Enterprises, Inc. | 795,958 | ||
16,110 | Barnes & Noble, Inc. | 540,491 | ||
37,627 | Bon-Ton Stores, Inc. (The) | 960,241 | ||
52,900 | Brown Shoe Company, Inc. | 1,107,726 | ||
6,800 | Buffalo Wild Wings, Inc. (a) | 293,896 | ||
48,194 | Carter’s, Inc. (a) | 1,020,267 | ||
27,800 | Casey’s General Stores, Inc. | 693,054 | ||
39,989 | Cato Corp. (The) | 826,973 | ||
9,300 | Central European Media Enterprises Ltd., Class A (a) | 860,064 | ||
56,096 | Charlotte Russe Holding, Inc. (a) | 996,826 | ||
7,987 | Chattem, Inc. (a) | 448,550 | ||
83,700 | Chemed Corp. | 5,296,536 | ||
4,300 | CPI Corp. | 252,582 | ||
59,200 | Crocs, Inc. (a) | 3,511,744 | ||
19,000 | Deckers Outdoor Corp. (a) | 1,958,900 | ||
27,958 | Dollar Thrifty Automotive Group, Inc. (a) | 1,032,209 | ||
17,500 | DreamWorks Animation SKG, Inc., Class A (a) | 542,500 | ||
20,800 | Eddie Bauer Holdings, Inc. (a) | 250,848 | ||
62,210 | Elizabeth Arden, Inc. (a) | 1,340,003 | ||
45,684 | Furniture Brands International, Inc. | 503,438 | ||
20,263 | Group 1 Automotive, Inc. | 760,268 | ||
90,700 | Helen of Troy Ltd. (a) | 2,014,447 | ||
21,200 | Hot Topic, Inc. (a) | 190,800 | ||
14,900 | ICF International, Inc. (a) | 307,983 | ||
36,500 | IKON Office Solutions, Inc. | 505,890 | ||
128,700 | IPC Holdings Ltd. | 3,193,047 | ||
19,300 | ITT Educational Services, Inc. (a) | 2,039,238 | ||
66,800 | J. Crew Group, Inc. (a) | 3,360,040 | ||
20,124 | Jack in the Box, Inc. (a) | 1,287,735 | ||
173,900 | JAKKS Pacific, Inc. (a) | 4,123,169 | ||
133,400 | Jo-Ann Stores, Inc. (a) | 3,176,254 | ||
50,800 | Jos. A. Bank Clothiers, Inc. (a) | 1,752,600 | ||
39,761 | Live Nation, Inc. (a) | 789,653 | ||
99,300 | Lubys Cafeterias, Inc. (a) | 994,986 | ||
2,400 | Lululemon Athletica, Inc. (a) | 77,136 | ||
164,000 | Maidenform Brands, Inc. (a) | 2,948,720 | ||
29,592 | Morton’s Restaurant Group, Inc. (a) | 534,727 | ||
25,149 | Movado Group, Inc. | 710,208 | ||
75,150 | Multimedia Games, Inc. (a) | 787,572 | ||
79,800 | New York & Co., Inc. (a) | 778,050 | ||
24,300 | Noble International Ltd. | 456,111 | ||
62,577 | O’Charley’s, Inc. | 1,109,490 | ||
6,700 | P.F. Chang’s China Bistro, Inc. (a) | 219,358 | ||
17,390 | Papa John’s International, Inc. (a) | 477,008 | ||
243,000 | Pep Boys - Manny, Moe & Jack (The) | 4,113,990 | ||
38,400 | Perry Ellis International, Inc. (a) | 1,152,384 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Consumer Discretionary, continued | ||||
19,800 | Phillips Van Heusen Corp. | 1,030,788 | ||
39,665 | Prestige Brands Holdings, Inc. (a) | 496,209 | ||
19,900 | Priceline.Com, Inc. (a) | 1,269,620 | ||
14,100 | RARE Hospitality International, Inc. (a) | 377,316 | ||
38,355 | Rent-A-Center, Inc. (a) | 744,471 | ||
37,400 | Sally Beauty Holdings, Inc. (a) | 300,322 | ||
22,485 | Scholastic Corp. (a) | 723,567 | ||
17,600 | Select Comfort Corp. (a) | 280,544 | ||
45,000 | Skechers USA, Inc., Class A (a) | 935,550 | ||
28,055 | Sonic Automotive, Inc. | 768,707 | ||
31,635 | Sotheby’s Holdings, Inc. | 1,352,396 | ||
51,400 | Source Interlink Cos., Inc. (a) | 225,132 | ||
46,100 | Standard Motors Products, Inc. | 573,945 | ||
29,983 | Steven Madden Ltd. | 845,521 | ||
182,900 | Tempur-Pedic International, Inc. | 5,697,335 | ||
7,900 | Tenneco, Inc. (a) | 278,870 | ||
39,995 | True Religion Apparel, Inc. (a) | 734,308 | ||
20,449 | United Stationers, Inc. (a) | 1,303,419 | ||
8,700 | Winn-Dixie Stores, Inc. (a) | 232,377 | ||
160,559 | Wolverine World Wide, Inc. | 4,344,727 | ||
91,397,344 | ||||
Consumer Staples (2.1%) | ||||
108,136 | Comfort Systems USA, Inc. | 1,399,280 | ||
73,421 | Ennis, Inc. | 1,481,636 | ||
17,400 | Heelys, Inc. (a) | 381,060 | ||
20,193 | Kellwood Co. | 517,748 | ||
25,250 | Kelly Services, Inc., Class A | 627,462 | ||
22,677 | Longs Drug Stores Corp. | 1,096,660 | ||
37,700 | Mannatech, Inc. | 354,757 | ||
6,200 | Nash Finch Co. | 249,674 | ||
28,738 | Pantry, Inc. (a) | 1,001,232 | ||
20,049 | Performance Food Group Co. (a) | 574,604 | ||
15,600 | Premier Exhibitions, Inc. (a) | 258,336 | ||
13,385 | Ralcorp Holdings, Inc. (a) | 695,485 | ||
102,656 | Tupperware Brands Corp. | 2,670,083 | ||
11,308,017 | ||||
Energy (5.2%) | ||||
122,900 | Alon USA Energy, Inc. | 4,383,843 | ||
26,710 | Atmos Energy Corp. | 749,750 | ||
27,766 | Basic Energy Services, Inc. (a) | 583,641 | ||
53,200 | Cabot Oil & Gas Corp. | 1,819,440 | ||
62,263 | Callon Petroleum Co. (a) | 872,305 | ||
31,724 | Cimarex Energy Co. | 1,200,753 | ||
32,276 | Cleco Corp. | 766,555 | ||
61,900 | Copano Energy LLC | 2,595,467 | ||
43,500 | Delek US Holdings, Inc. | 1,151,880 | ||
35,380 | Empire District Electric Co. (The) | 767,392 | ||
29,382 | Great Plains Energy, Inc. | 815,644 | ||
35,800 | Grey Wolf, Inc. (a) | 265,278 | ||
12,400 | Gulf Island Fabrication, Inc. | 423,584 | ||
25,400 | Gulfport Energy Corp. (a) | 482,854 | ||
32,800 | Headwaters, Inc. (a) | 529,064 | ||
8,200 | Hercules Offshore, Inc. (a) | 246,164 | ||
4,300 | Lufkin Industries, Inc. | 254,603 | ||
243,732 | Parker Drilling Co. (a) | 2,295,956 |
See notes to financial statements.
49
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Energy, continued | ||||
42,100 | Pioneer Drilling Co. (a) | 529,618 | ||
28,600 | Rosetta Resources, Inc. (a) | 515,086 | ||
34,301 | Southwest Gas Corp. | 1,066,075 | ||
48,327 | Swift Energy Co. (a) | 2,065,496 | ||
36,585 | Trico Marine Services, Inc. (a) | 1,296,938 | ||
57,400 | Union Drilling, Inc. (a) | 873,054 | ||
22,200 | Unit Corp. (a) | 1,222,332 | ||
27,772,772 | ||||
Financials (11.0%) | ||||
36,800 | Advanta Corp., Class B | 944,288 | ||
21,300 | Allied World Assurance Holdings Ltd. | 1,010,685 | ||
46,200 | Amerisafe, Inc. (a) | 775,236 | ||
35,409 | Argonaut Group, Inc. | 974,810 | ||
62,100 | Aspen Insurance Holdings Ltd. | 1,518,345 | ||
31,046 | ASTA Funding, Inc. | 1,120,140 | ||
61,327 | BankUnited Financial Corp. | 1,032,747 | ||
32,022 | Boston Private Financial Holdings, Inc. | 816,241 | ||
25,480 | Calamos Asset Management, Inc. | 629,356 | ||
47,082 | Cascade Bancorp | 1,026,858 | ||
267,400 | Castlepoint Holdings Ltd. (a) (b) | 3,329,130 | ||
96,209 | CBIZ, Inc. (a) | 655,183 | ||
37,089 | Citizens Republic Bancorp, Inc. | 597,133 | ||
61,900 | Cohen & Steers, Inc. | 2,132,455 | ||
8,400 | CompuCredit Corp. (a) | 220,500 | ||
37,932 | Corus Bankshares, Inc. | 616,774 | ||
18,019 | CRA International, Inc. (a) | 859,326 | ||
37,610 | CVB Financial Corp. | 368,202 | ||
48,136 | Delphi Financial Group, Inc., Class A | 1,933,623 | ||
32,996 | Deluxe Corp. | 1,245,929 | ||
10,200 | Dollar Financial Corp. (a) | 255,612 | ||
33,754 | East West Bancorp, Inc. | 1,237,422 | ||
38,611 | Euronet Worldwide, Inc. (a) | 981,106 | ||
52,749 | F.N.B. Corp. | 791,763 | ||
29,224 | First Charter Corp. | 538,598 | ||
41,446 | First Commonwealth Financial Corp. | 392,908 | ||
43,848 | First Community Bancorp | 2,202,047 | ||
80,247 | First Niagara Financial Group, Inc. | 1,031,976 | ||
22,784 | First State Bancorp | 393,252 | ||
29,330 | FirstFed Financial Corp. (a) | 1,325,716 | ||
7,300 | FPIC Insurance Group, Inc. (a) | 253,894 | ||
39,784 | Hanmi Financial Corp. | 576,868 | ||
19,100 | Hilb Rogal & Hobbs Co. | 827,030 | ||
15,300 | IndyMac Bancorp, Inc. | 336,600 | ||
25,400 | Interactive Data Corp. | 694,690 | ||
37,966 | Investment Technology Group, Inc. (a) | 1,517,121 | ||
113,168 | Knight Capital Group, Inc. (a) | 1,600,196 | ||
12,300 | Max Capital Group Ltd. | 321,153 | ||
34,900 | MCG Capital Corp. | 505,003 | ||
50,181 | National Financial Partners Corp. | 2,326,391 | ||
24,000 | Pinnacle Financial Partners, Inc. (a) | 578,640 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
23,000 | Preferred Bank | 883,200 | ||
35,167 | Safety Insurance Group, Inc. | 1,171,061 | ||
54,019 | Seabright Insurance Holdings (a) | 979,364 | ||
72,937 | Selective Insurance Group, Inc. | 1,496,667 | ||
160,157 | Sterling Bancshares, Inc. | 1,667,234 | ||
17,330 | Sterling Financial Corp. | 393,564 | ||
76,280 | Sunstone Hotel Investors, Inc. | 1,893,270 | ||
45,683 | Susquehanna Bancshares, Inc. | 790,316 | ||
28,169 | SVB Financial Group (a) | 1,483,943 | ||
27,500 | UCBH Holdings, Inc. | 452,100 | ||
34,137 | UMB Financial Corp. | 1,274,676 | ||
17,714 | Umpqua Holdings Corp. | 336,920 | ||
54,355 | Universal American Financial Corp. (a) | 1,082,208 | ||
30,200 | Wadell & Reed Financial, Inc., Class A | 761,342 | ||
37,691 | Whitney Holding Corp. | 941,898 | ||
27,654 | Wilmington Trust Corp. | 1,076,847 | ||
40,545 | Zenith National Insurance Corp. | 1,636,396 | ||
58,815,953 | ||||
Health Care (8.6%) | ||||
43,800 | Acadia Pharmaceuticals, Inc. (a) | 614,952 | ||
7,400 | Air Methods Corp. (a) | 281,940 | ||
21,200 | Align Technology, Inc. (a) | 553,320 | ||
96,500 | Alkermes, Inc. (a) | 1,374,160 | ||
43,467 | Alpharma, Inc., Class A | 1,077,547 | ||
15,900 | Amedisys, Inc. (a) | 601,815 | ||
52,600 | American Oriental Bioengineering, Inc. (a) | 378,720 | ||
20,414 | Amerigroup Corp. (a) | 565,060 | ||
66,200 | Applera Corporation - Celera Genomics Group (a) | 795,724 | ||
67,100 | Arena Pharmaceuticals, Inc. (a) | 766,953 | ||
14,000 | Cerner Corp. (a) | 740,180 | ||
11,900 | Cholestech Corp. (a) | 251,090 | ||
26,800 | CONMED Corp. (a) | 747,720 | ||
117,700 | CV Therapeutics, Inc. (a) | 1,166,407 | ||
11,800 | Cynosure, Inc., Class A (a) | 368,396 | ||
64,800 | Cytokinetics, Inc. (a) | 324,000 | ||
66,700 | Emergency Medical Services Corp., Class A (a) | 2,601,967 | ||
241,700 | Encysive Pharmaceuticals, Inc. (a) | 459,230 | ||
49,996 | Gentiva Health Services, Inc. (a) | 998,420 | ||
18,664 | Haemonetics Corp. (a) | 922,375 | ||
56,447 | Healthspring, Inc. (a) | 965,244 | ||
13,100 | Home Diagnostics, Inc. (a) | 144,886 | ||
58,400 | Human Genome Sciences, Inc. (a) | 453,184 | ||
26,797 | ICU Medical, Inc. (a) | 890,732 | ||
52,200 | Incyte Pharmaceuticals, Inc. (a) | 277,704 | ||
39,000 | Invacare Corp. | 801,450 | ||
13,900 | inVentiv Health, Inc. (a) | 493,172 | ||
20,600 | ISIS Pharmaceuticals, Inc. (a) | 214,446 | ||
23,500 | Kosan Biosciences, Inc. (a) | 97,760 | ||
54,000 | LifePoint Hospitals, Inc. (a) | 1,595,700 | ||
23,298 | Magellan Health Services, Inc. (a) | 974,322 | ||
22,200 | Matria Healthcare, Inc. (a) | 573,426 |
See notes to financial statements.
50
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Health Care, continued | ||||
16,500 | Medarex, Inc. (a) | 233,640 | ||
10,900 | MGI Pharma, Inc. (a) | 272,827 | ||
25,400 | NBTY, Inc. (a) | 1,105,916 | ||
23,743 | Noven Pharmaceuticals, Inc. (a) | 421,676 | ||
105,730 | NPS Pharmaceuticals, Inc. (a) | 455,696 | ||
71,400 | Onyx Pharmaceuticals, Inc. (a) | 1,985,634 | ||
22,587 | PAREXEL International Corp. (a) | 913,193 | ||
65,100 | Pediatrix Medical Group, Inc. (a) | 3,512,796 | ||
111,091 | Perrigo Co. | 2,071,847 | ||
32,900 | Pharmion Corp. (a) | 801,444 | ||
46,595 | Phoenix Cos, Inc. (The) | 642,545 | ||
14,800 | Progenics Pharmaceuticals, Inc. (a) | 315,388 | ||
74,100 | Regeneron Pharmaceuticals, Inc. (a) | 1,103,349 | ||
87,000 | Renovis, Inc. (a) | 291,450 | ||
81,300 | Rigel Pharmaceuticals, Inc. (a) | 647,148 | ||
33,400 | Rochester Medical Corp. (a) | 516,698 | ||
20,200 | Salix Pharmaceuticals Ltd. (a) | 222,604 | ||
66,302 | Sciele Pharma, Inc. (a) | 1,537,543 | ||
64,281 | STERIS Corp. | 1,758,085 | ||
13,400 | TomoTherapy, Inc. (a) | 363,140 | ||
32,400 | TriZetto Group, Inc. (The) (a) | 519,372 | ||
6,400 | Universal Health Services | 335,616 | ||
37,622 | ViroPharma, Inc. (a) | 483,443 | ||
5,800 | WellCare Health Plans, Inc. (a) | 587,308 | ||
19,200 | West Pharmaceutical Services, Inc. | 888,576 | ||
15,100 | XenoPort, Inc. (a) | 644,619 | ||
35,934 | Zymogenetics, Inc. (a) | 415,397 | ||
46,118,952 | ||||
Industrials (24.3%) | ||||
17,500 | Actuant Corp. | 1,067,150 | ||
50,700 | Acuity Brands, Inc. | 2,996,370 | ||
120,700 | American Axle & Manufacturing Holdings, Inc. | 2,920,940 | ||
22,700 | American Commercial Lines, Inc. (a) | 502,805 | ||
25,600 | American Woodmark Corp. | 769,280 | ||
7,900 | Analogic Corp. | 524,481 | ||
37,891 | Applied Industrial Technologies | 1,075,726 | ||
55,046 | Arch Chemicals, Inc. | 1,947,527 | ||
15,900 | Be Aerospace, Inc. (a) | 644,904 | ||
36,170 | Briggs & Stratton Corp. | 1,025,781 | ||
239,800 | Brooks Automation, Inc. (a) | 4,213,286 | ||
7,900 | Bucyrus International, Inc. | 502,124 | ||
23,969 | Cabot Microelectronics Corp. (a) | 1,021,798 | ||
7,900 | Cascade Corp. | 535,541 | ||
15,900 | Ceradyne, Inc. (a) | 1,186,617 | ||
43,400 | CF Industries Holdings, Inc. | 2,494,632 | ||
37,886 | Checkpoint Systems, Inc. (a) | 874,030 | ||
32,460 | Coherent, Inc. (a) | 939,717 | ||
39,741 | Cohu, Inc. | 794,423 | ||
27,600 | Complete Production Services, Inc. (a) | 640,044 | ||
25,900 | COMSYS IT Partners, Inc. (a) | 470,344 | ||
50,932 | Cox Radio, Inc., Class A (a) | 659,569 | ||
37,663 | CTS Corp. | 479,827 | ||
55,600 | Curtiss-Wright Corp. | 2,422,492 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Industrials, continued | ||||
12,170 | Cymer, Inc. (a) | 520,268 | ||
23,800 | Dawson Geophysical Co. (a) | 1,299,718 | ||
61,500 | Dycom Industries, Inc. (a) | 1,718,925 | ||
193,700 | DynCorp International, Inc., Class A (a) | 4,127,747 | ||
67,456 | EMCOR Group, Inc. (a) | 2,421,670 | ||
76,200 | Encore Wire Corp. | 2,327,910 | ||
51,350 | EnerSys (a) | 929,435 | ||
53,026 | EnPro Industries, Inc. (a) | 2,088,164 | ||
62,205 | Federal Signal Corp. | 836,657 | ||
18,231 | First Advantage Corp., Class A (a) | 366,261 | ||
42,516 | Flowers Foods, Inc. | 871,578 | ||
35,194 | Freightcar America, Inc. | 1,663,620 | ||
79,900 | Gardner Denver Machinery, Inc. (a) | 3,323,041 | ||
92,100 | Goodman Global, Inc. (a) | 2,221,452 | ||
16,700 | Graco, Inc. | 685,368 | ||
281,900 | GrafTech International Ltd. (a) | 4,366,631 | ||
118,962 | Greatbatch, Inc. (a) | 3,691,391 | ||
75,986 | H.B. Fuller Co. | 2,099,493 | ||
43,649 | Heidrick & Struggles International, Inc. (a) | 2,345,697 | ||
38,725 | Horace Mann Educators Corp. | 690,467 | ||
38,100 | Horizon Lines, Inc., Class A | 1,099,566 | ||
50,500 | Hub Group, Inc. (a) | 1,718,010 | ||
121,500 | Intevac, Inc. (a) | 1,974,375 | ||
17,500 | Kaiser Aluminum Corp. | 1,181,425 | ||
90,500 | Kaydon Corp. | 4,815,505 | ||
43,000 | Knight Transportation, Inc. | 758,520 | ||
15,500 | Lamson & Sessions Co. (a) | 343,170 | ||
16,300 | Lennox International, Inc. | 624,290 | ||
6,000 | Middleby Corp. (The) (a) | 372,060 | ||
15,400 | MKS Instruments, Inc. (a) | 349,580 | ||
23,426 | Monarch Casino & Resort, Inc. (a) | 662,722 | ||
75,413 | MPS Group, Inc. (a) | 1,005,255 | ||
38,426 | Mueller Industries, Inc. | 1,417,151 | ||
42,582 | Oil States International, Inc. (a) | 1,862,537 | ||
20,214 | Old Dominion Freight Line, Inc. (a) | 583,376 | ||
27,000 | Olin Corp. | 563,490 | ||
72,900 | ON Semiconductor Corp. (a) | 861,678 | ||
37,643 | Orbital Sciences Corp. (a) | 797,655 | ||
61,100 | Perini Corp. (a) | 3,752,151 | ||
61,799 | Pilgrim’s Pride Corp. | 2,081,390 | ||
33,740 | ProAssurance Corp. (a) | 1,666,081 | ||
14,000 | Resources Connection, Inc. (a) | 454,580 | ||
38,300 | Robbins & Myers, Inc. | 2,019,559 | ||
20,600 | Rock-Tenn Co. | 632,832 | ||
125,400 | Rockwood Holdings, Inc. (a) | 4,337,586 | ||
89,900 | Ryerson, Inc. | 2,884,891 | ||
15,900 | Schnitzer Steel Industries, Inc. | 861,621 | ||
206,400 | Silicon Motion Technology Corp., ADR (a) | 3,777,120 | ||
67,767 | SkyWest, Inc. | 1,511,882 | ||
18,972 | Smith A.O. Corp. | 921,091 | ||
14,861 | Speedway Motorsports, Inc. | 549,411 | ||
81,702 | Spherion Corp. (a) | 721,429 |
See notes to financial statements.
51
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Industrials, continued | ||||
23,600 | Steelcase, Inc. | 410,876 | ||
22,750 | Sun Hydraulic Corp. | 676,130 | ||
50,031 | Technitrol, Inc. | 1,300,806 | ||
16,200 | Teledyne Technologies, Inc. (a) | 718,794 | ||
19,000 | Tennant Co. | 732,450 | ||
13,100 | Timken Co. (The) | 437,540 | ||
12,700 | Toro Co. (The) | 713,994 | ||
32,024 | TreeHouse Foods, Inc. (a) | 717,658 | ||
18,000 | Triumph Group, Inc. | 1,371,780 | ||
98,683 | U.S. Concrete, Inc. (a) | 749,004 | ||
51,600 | Ultra Clean Holdings, Inc. (a) | 726,012 | ||
54,500 | Varian Semiconductor Equipment Associates, Inc. (a) | 2,561,500 | ||
8,500 | W.R. Grace & Co. (a) | 175,525 | ||
43,600 | Watson Wyatt & Co. Holdings | 1,942,380 | ||
33,300 | Worthington Industries, Inc. | 689,310 | ||
130,390,649 | ||||
Information Technology (14.8%) | ||||
85,200 | Advanced Energy Industries (a) | 1,508,892 | ||
20,224 | American Reprographics Co. (a) | 503,982 | ||
140,400 | Amkor Technology, Inc. (a) | 1,735,344 | ||
12,184 | Anixter International, Inc. (a) | 1,007,008 | ||
30,000 | ANSYS, Inc. (a) | 781,200 | ||
86,700 | Arris Group, Inc. (a) | 1,284,894 | ||
17,374 | Avid Technology, Inc. (a) | 557,705 | ||
39,714 | Avocent Corp. (a) | 1,086,178 | ||
14,100 | Blackbaud, Inc. | 295,254 | ||
21,000 | Blue Coat Systems, Inc. (a) | 1,023,330 | ||
334,000 | Brocade Communications Systems, Inc. (a) | 2,351,360 | ||
8,500 | Cogent Communications Group, Inc. (a) | 243,780 | ||
10,800 | Comtech Telecommunications Corp. (a) | 469,476 | ||
27,300 | CSG Systems International, Inc. (a) | 683,046 | ||
81,000 | DRS Technologies, Inc. | 4,241,160 | ||
86,854 | Eagle Test Systems, Inc. (a) | 1,301,941 | ||
132,595 | EarthLink, Inc. (a) | 921,535 | ||
32,992 | EMS Technologies, Inc. (a) | 724,834 | ||
145,241 | Emulex Corp. (a) | 2,875,772 | ||
36,821 | Exar Corp. (a) | 520,281 | ||
17,100 | FactSet Research Systems, Inc. | 1,128,429 | ||
52,400 | FARO Technologies, Inc. (a) | 1,950,852 | ||
32,344 | Foundry Networks, Inc. (a) | 568,931 | ||
90,577 | Harris Interactive, Inc. (a) | 405,785 | ||
13,300 | Henry(Jack) & Associates | 319,466 | ||
36,586 | i2 Technologies, Inc. (a) | 594,157 | ||
8,000 | II-VI, Inc. (a) | 198,640 | ||
43,894 | Imation Corp. | 1,373,004 | ||
20,500 | Imergent, Inc. | 442,800 | ||
59,251 | Informatica Corp. (a) | 825,959 | ||
76,200 | infoUSA, Inc. | 781,050 | ||
276,519 | Interwoven, Inc. (a) | 3,829,788 | ||
13,145 | Itron, Inc. (a) | 1,044,107 | ||
69,406 | Ixia (a) | 649,640 | ||
28,600 | J2 Global Communications, Inc. (a) | 933,504 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Information Technology, continued | ||||
89,496 | Mantech International Corp. (a) | 2,922,939 | ||
46,900 | Mentor Graphics Corp. (a) | 563,269 | ||
43,485 | Methode Electronics, Inc. | 703,152 | ||
76,964 | Micrel, Inc. | 796,577 | ||
12,600 | Microstrategy, Inc., Class A (a) | 921,186 | ||
16,825 | MTS Systems Corp. | 702,444 | ||
30,600 | Net 1 UEPS Technologies, Inc. (a) | 698,598 | ||
13,100 | Novatel Wireless, Inc. (a) | 282,043 | ||
23,000 | Novatel, Inc. (a) | 847,090 | ||
133,815 | OmniVision Technologies, Inc. (a) | 2,297,604 | ||
21,000 | Orbitz Worldwide, Inc. (a) | 253,680 | ||
25,700 | Orbotech Ltd. (a) | 553,835 | ||
28,346 | Palm, Inc. (a) | 422,922 | ||
171,351 | Perot Systems Corp., Class A (a) | 2,607,962 | ||
201,700 | PMC-Sierra, Inc. (a) | 1,536,954 | ||
26,500 | Polycom, Inc. (a) | 820,705 | ||
146,100 | Progress Software Corp. (a) | 4,419,525 | ||
16,024 | Rofin-Sinar Technologies, Inc. (a) | 1,042,682 | ||
12,400 | SAVVIS, Inc. (a) | 465,744 | ||
101,300 | Sigma Designs, Inc. (a) | 3,221,340 | ||
129,400 | Skyworks Solutions, Inc. (a) | 1,024,848 | ||
22,800 | Smart Modular Technologies (WWH), Inc. (a) | 280,212 | ||
83,547 | Sonicwall, Inc. (a) | 738,556 | ||
33,262 | SPSS, Inc. (a) | 1,365,073 | ||
34,600 | Starent Networks Corp. (a) | 626,952 | ||
20,900 | Sybase, Inc. (a) | 495,748 | ||
12,800 | Synchronoss Technologies, Inc. (a) | 465,408 | ||
37,400 | SYNNEX Corp. (a) | 759,968 | ||
11,700 | Syntel, Inc. | 421,317 | ||
7,400 | Teletech Holdings, Inc. (a) | 217,042 | ||
27,400 | THQ, Inc. (a) | 788,024 | ||
121,467 | TIBCO Software, Inc. (a) | 987,527 | ||
32,800 | United Online, Inc. | 463,136 | ||
39,328 | Vignette Corp. (a) | 827,461 | ||
48,000 | Vishay Intertechnology, Inc. (a) | 744,480 | ||
28,600 | Volt Information Sciences, Inc. (a) | 445,588 | ||
41,999 | Websense, Inc. (a) | 838,300 | ||
10,000 | Wright Express Corp. (a) | 340,600 | ||
119,100 | Zoran Corp. (a) | 2,245,035 | ||
79,318,610 | ||||
Materials (5.8%) | ||||
57,371 | A. Schulman, Inc. | 1,332,155 | ||
85,000 | Belden CDT, Inc. | 4,656,300 | ||
27,747 | Bowater, Inc. | 544,396 | ||
45,300 | Brush Engineered Materials, Inc. (a) | 1,715,511 | ||
77,026 | Building Materials Holding Corp. | 1,069,891 | ||
8,141 | Carpenter Technology Corp. | 966,255 | ||
16,900 | Century Aluminum Co. (a) | 871,026 | ||
45,400 | Cleveland Cliffs, Inc. | 3,144,858 | ||
40,685 | Greif, Inc., Class A | 2,237,675 | ||
104,272 | OM Group, Inc. (a) | 5,050,936 | ||
36,100 | Park Electrochemical Corp. | 1,070,365 | ||
117,770 | PolyOne Corp. (a) | 885,630 | ||
26,677 | Quanex Corp. | 1,202,066 | ||
8,500 | Schweitzer-Mauduit International, Inc. | 194,055 |
See notes to financial statements.
52
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares or Principal Amount ($) | Security | Value ($) | ||
Common Stocks, continued | ||||
Materials, continued | ||||
13,503 | Silgan Holdings, Inc. | 697,025 | ||
33,987 | Spartech Corp. | 749,413 | ||
273,611 | USEC, Inc. (a) | 4,593,929 | ||
30,981,486 | ||||
Real Estate Investment Trusts (3.6%) | ||||
41,500 | Alesco Financial, Inc. | 194,635 | ||
101,836 | Ashford Hospitality Trust | 1,040,764 | ||
42,331 | BioMed Realty Trust, Inc. | 924,509 | ||
69,513 | Cedar Shopping Centers, Inc. | 873,779 | ||
14,000 | Cousins Properties, Inc. | 359,940 | ||
19,200 | Crystal River Capital, Inc. | 333,888 | ||
23,089 | Entertainment Properties Trust | 1,028,615 | ||
65,819 | FelCor Lodging Trust, Inc. | 1,445,385 | ||
25,678 | First Industrial Realty Trust, Inc. | 993,995 | ||
16,380 | First Potomac Realty Trust | 320,884 | ||
21,306 | Health Care REIT, Inc. | 782,143 | ||
36,168 | Highwoods Properties, Inc. | 1,176,545 | ||
76,700 | JER Investors Trust, Inc. (b) | 841,399 | ||
38,854 | Lexington Realty Trust | 733,175 | ||
9,400 | Maguire Properties, Inc. | 268,934 | ||
74,120 | Medical Properties Trust, Inc. | 830,144 | ||
50,036 | National Retail Properties, Inc. | 1,083,780 | ||
50,395 | Newcastle Investment Corp. | 907,614 | ||
176,300 | NorthStar Realty Finance Corp. | 1,778,867 | ||
44,437 | Omega Healthcare Investors, Inc. | 574,570 | ||
35,491 | Pennsylvania Real Estate Investment Trust | 1,382,020 | ||
44,917 | Realty Income Corp. | 1,054,202 | ||
19,900 | Resource Capital Corp. | 188,453 | ||
19,118,240 | ||||
Telecommunications (3.9%) | ||||
24,700 | Atlantic Tele-Network, Inc. | 720,746 | ||
109,502 | Cincinnati Bell, Inc. (a) | 565,030 | ||
174,700 | Comtech Group, Inc. (a) | 2,484,234 | ||
32,616 | Consolidated Communications Holdings, Inc. | 594,264 | ||
31,600 | Golden Telecom, Inc. | 2,039,780 | ||
99,000 | InterDigital, Inc. (a) | 2,767,050 | ||
23,300 | NeuStar, Inc., Class A (a) | 671,972 | ||
135,000 | Plantronics, Inc. | 3,782,700 |
Shares or Principal Amount ($) | Security | Value ($) | |||
Common Stocks, continued | |||||
Telecommunications, continued | |||||
370,000 | Premiere Global Services, Inc. (a) | 4,306,800 | |||
244,500 | Sinclair Broadcast Group, Inc., Class A | 3,188,280 | |||
21,120,856 | |||||
Transportation (1.2%) | |||||
8,600 | Alaska Air Group, Inc. (a) | 200,638 | |||
30,161 | ArvinMeritor, Inc. | 598,092 | |||
20,229 | Atlas Air Worldwide Holdings, Inc. (a) | 1,096,614 | |||
112,800 | ExpressJet Holdings, Inc. (a) | 589,944 | |||
28,600 | GulfMark Offshore, Inc. (a) | 1,343,628 | |||
16,700 | Landstar System, Inc. | 759,182 | |||
37,686 | Pacer International, Inc. | 829,469 | |||
34,634 | Saia, Inc. (a) | 700,646 | |||
20,800 | Werner Enterprises, Inc. | 404,352 | |||
6,522,565 | |||||
Utilities (1.5%) | |||||
23,629 | El Paso Electric Co. (a) | 549,847 | |||
18,246 | IDACORP, Inc. | 564,896 | |||
20,155 | New Jersey Resources Corp. | 947,285 | |||
69,883 | Northwest Natural Gas Co. | 2,912,025 | |||
61,053 | PNM Resources, Inc. | 1,576,999 | |||
32,809 | Westar Energy, Inc. | 755,263 | |||
22,458 | WGL Holdings, Inc. | 672,392 | |||
7,978,707 | |||||
Total Common Stocks (Cost $540,711,583) | 530,844,151 | ||||
U.S. Treasury Obligations (0.0%) | |||||
50,000 | Treasury Bills, 4.82%, 8/2/07 (c) | 49,988 | |||
Total U.S. Treasury Obligations (Cost $49,994) | 49,988 | ||||
Cash Sweep (1.0%) | |||||
5,407,685 | Bank of New York Cash Reserve Fund, 2.40% (d) | 5,407,685 | |||
Total Cash Sweep (Cost $5,407,685) | 5,407,685 | ||||
Total Investments (Cost $546,169,262) (e)—100.0% | 536,301,824 | ||||
Other assets in excess of liabilities—0.0% | 146,181 | ||||
Net Assets—100.0% | $ | 536,448,005 | |||
(a) | Non-income producing security. |
(b) | Restricted security. |
(c) | Rate disclosed represents effective yield at purchase. |
(d) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(e) | Cost for federal income tax purposes is $547,835,754. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 33,162,736 | ||
Unrealized depreciation | (44,696,666 | ) | ||
Net unrealized depreciation | $ | (11,533,930 | ) | |
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
See notes to financial statements.
53
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (97.5%) | ||||
Consumer Discretionary (15.5%) | ||||
21,500 | Aeropostale, Inc. (a) | 818,720 | ||
15,700 | American Greetings Corp., Class A | 388,261 | ||
3,300 | AnnTaylor Stores Corp. (a) | 103,686 | ||
12,600 | AutoNation, Inc. (a) | 245,448 | ||
9,900 | Big Lots, Inc. (a) | 256,014 | ||
4,300 | Blyth, Inc. | 95,976 | ||
8,400 | Bob Evans Farms, Inc. | 272,580 | ||
8,550 | Brinker International, Inc. | 230,337 | ||
7,300 | DeVry, Inc. | 236,520 | ||
7,100 | Dollar Tree Stores, Inc. (a) | 271,646 | ||
6,200 | Estee Lauder Cos., Inc. (The), Class A | 279,124 | ||
9,200 | Expedia, Inc. (a) | 244,812 | ||
31,500 | Family Dollar Stores, Inc. | 933,030 | ||
8,600 | Goodyear Tire & Rubber Co. (The) (a) | 246,992 | ||
6,200 | Hanesbrands, Inc. (a) | 192,262 | ||
17,700 | Hasbro, Inc. | 495,954 | ||
18,500 | IKON Office Solutions, Inc. | 256,410 | ||
6,100 | ITT Educational Services, Inc. (a) | 644,526 | ||
3,800 | Jack in the Box, Inc. (a) | 243,162 | ||
15,500 | Korn/Ferry International (a) | 366,265 | ||
9,100 | Manpower, Inc. | 719,355 | ||
18,300 | Marvel Entertainment, Inc. (a) | 443,409 | ||
575 | NVR, Inc. (a) | 332,626 | ||
6,100 | R.R. Donnelley & Sons Co. | 257,786 | ||
12,500 | RadioShack Corp. | 314,125 | ||
4,600 | Rollins, Inc. | 109,480 | ||
41,500 | Ross Stores, Inc. | 1,200,595 | ||
10,500 | Sherwin-Williams Co. (The) | 731,745 | ||
1,600 | Whirlpool Corp. | 163,376 | ||
11,094,222 | ||||
Consumer Staples (2.0%) | ||||
5,400 | Energizer Holdings, Inc. (a) | 544,860 | ||
37,000 | Tyson Foods, Inc., Class A | 788,100 | ||
2,100 | Universal Corp. | 115,941 | ||
1,448,901 | ||||
Energy (9.5%) | ||||
4,900 | Cabot Oil & Gas Corp. | 167,580 | ||
10,000 | Energy East Corp. | 253,100 | ||
7,600 | ENSCO International, Inc. | 464,132 | ||
12,700 | Frontier Oil Corp. | 491,871 | ||
7,000 | Holly Corp. | 471,730 | ||
16,700 | Noble Energy, Inc. | 1,021,038 | ||
4,200 | Patterson-UTI Energy, Inc. | 96,180 | ||
11,800 | Pepco Holdings, Inc. | 319,426 | ||
25,600 | Reliant Energy, Inc. (a) | 657,408 | ||
22,200 | Tesoro Corp. | 1,105,560 | ||
23,400 | Tidewater, Inc. | 1,601,028 | ||
2,900 | Unit Corp. (a) | 159,674 | ||
6,808,727 | ||||
Financials (13.9%) | ||||
5,400 | A.G. Edwards, Inc. | 436,644 | ||
26,650 | American Financial Group, Inc. | 748,598 | ||
4,100 | AmeriCredit Corp. (a) | 83,394 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
17,300 | Apollo Investment Corp. | 364,857 | ||
15,600 | Associated Banc-Corp. | 448,344 | ||
14,300 | CB Richard Ellis Group, Inc., Class A (a) | 499,356 | ||
6,300 | City National Corp. | 445,977 | ||
8,300 | Deluxe Corp. | 313,408 | ||
4,500 | East West Bancorp, Inc. | 164,970 | ||
4,400 | Eaton Vance Corp. | 184,184 | ||
21,600 | Equifax, Inc. | 873,936 | ||
13,800 | Everest Re Group Ltd. | 1,355,850 | ||
5,950 | First Marblehead Corp. (The) | 196,112 | ||
24,400 | Hospitality Properties Trust | 935,984 | ||
7,700 | KKR Financial Holdings LLC | 159,698 | ||
4,900 | Leucadia National Corp. | 184,240 | ||
1,700 | Nationwide Financial Services, Inc. | 96,747 | ||
27,600 | PMI Group, Inc. (The) | 940,332 | ||
10,200 | Radian Group, Inc. | 343,842 | ||
2,718 | State Street Corp. | 182,188 | ||
2,100 | SVB Financial Group (a) | 110,628 | ||
19,350 | W. R. Berkley Corp. | 569,277 | ||
8,100 | Wilmington Trust Corp. | 315,414 | ||
9,953,980 | ||||
Health Care (11.4%) | ||||
14,200 | Applera Corp. | 443,324 | ||
8,900 | Apria Healthcare Group, Inc. (a) | 233,358 | ||
1,400 | Cephalon, Inc. (a) | 105,196 | ||
7,700 | Charles River Laboratories International, Inc. (a) | 394,086 | ||
6,525 | Coventry Health Care, Inc. (a) | 364,160 | ||
18,900 | Health Net, Inc. (a) | 936,306 | ||
10,100 | Hillenbrand Industries, Inc. | 636,704 | ||
7,900 | Hlth Corp. (a) | 100,014 | ||
6,900 | ImClone Systems, Inc. (a) | 227,010 | ||
2,000 | Intuitive Surgical, Inc. (a) | 425,220 | ||
3,200 | Invitrogen Corp. (a) | 229,760 | ||
7,100 | Kinetic Concepts, Inc. (a) | 436,508 | ||
14,400 | King Pharmaceuticals, Inc. (a) | 244,944 | ||
9,200 | Lincare Holdings, Inc. (a) | 328,348 | ||
7,400 | Manor Care, Inc. | 468,790 | ||
43,600 | Millennium Pharmaceuticals (a) | 439,924 | ||
6,300 | Mylan Laboratories, Inc. | 100,989 | ||
10,800 | NBTY, Inc. (a) | 470,232 | ||
2,000 | Pediatrix Medical Group, Inc. (a) | 107,920 | ||
12,400 | STERIS Corp. | 339,140 | ||
11,000 | Techne Corp. (a) | 618,860 | ||
4,800 | WellCare Health Plans, Inc. (a) | 486,048 | ||
8,136,841 | ||||
Industrials (15.1%) | ||||
10,100 | Acuity Brands, Inc. | 596,910 | ||
2,600 | Agco Corp. (a) | 99,918 | ||
9,500 | AGL Resources, Inc. | 358,150 | ||
2,600 | Alliant Techsystems, Inc. (a) | 257,686 | ||
6,400 | CF Industries Holdings, Inc. | 367,872 | ||
15,800 | Cummins, Inc. | 1,875,460 | ||
11,300 | Granite Construction, Inc. | 734,387 | ||
14,500 | International Rectifier Corp. (a) | 532,295 |
See notes to financial statements.
54
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Industrials, continued | ||||
10,700 | Jacobs Engineering Group, Inc. (a) | 659,441 | ||
6,500 | Kennametal, Inc. | 498,290 | ||
12,000 | Lennox International, Inc. | 459,600 | ||
10,300 | Manitowoc Company, Inc. (The) | 800,001 | ||
30,900 | Olin Corp. | 644,883 | ||
19,200 | ON Semiconductor Corp. (a) | 226,944 | ||
10,250 | Republic Services, Inc. | 327,487 | ||
31,500 | Semtech Corp. (a) | 511,875 | ||
2,200 | SPX Corp. | 206,514 | ||
2,900 | Teleflex, Inc. | 221,647 | ||
11,900 | Terex Corp. (a) | 1,026,375 | ||
23,400 | Triquint Semiconductor (a) | 103,428 | ||
2,700 | URS Corp. (a) | 133,002 | ||
3,600 | Varian Semiconductor Equipment Associates, Inc. (a) | 169,200 | ||
10,811,365 | ||||
Information Technology (10.8%) | ||||
26,100 | Avnet, Inc. (a) | 988,668 | ||
20,100 | BMC Software, Inc. (a) | 577,272 | ||
17,100 | Cadence Design Systems, Inc. (a) | 365,940 | ||
17,800 | Compuware Corp. (a) | 166,074 | ||
8,900 | CSG Systems International, Inc. (a) | 222,678 | ||
8,800 | Dun & Bradstreet Corp. (The) | 860,288 | ||
4,550 | FactSet Research Systems, Inc. | 300,255 | ||
18,300 | Gartner, Inc. (a) | 383,019 | ||
28,700 | Ingram Micro, Inc. (a) | 575,435 | ||
21,700 | Intersil Corp., Class A | 634,725 | ||
2,900 | Lexmark International, Inc., Class A (a) | 114,666 | ||
22,200 | McAfee, Inc. (a) | 796,092 | ||
2,700 | Microchip Technology, Inc. | 98,037 | ||
13,900 | Novell, Inc. (a) | 93,269 | ||
12,500 | Polycom, Inc. (a) | 387,125 | ||
12,600 | Teradyne, Inc. (a) | 197,694 | ||
5,100 | Total System Services, Inc. | 143,463 | ||
43,300 | Vishay Intertechnology, Inc. (a) | 671,583 | ||
5,800 | Western Digital Corp. (a) | 123,830 | ||
7,700,113 | ||||
Materials (6.0%) | ||||
3,600 | Albemarle Corp. | 144,828 | ||
13,100 | Belden CDT, Inc. | 717,618 | ||
12,300 | Celanese Corp., Series A | 461,250 | ||
42,300 | Commercial Metals Co. | 1,304,532 | ||
13,900 | Lubrizol Corp. (The) | 870,974 | ||
3,900 | Pactiv Corp. (a) | 123,279 | ||
14,000 | Sonoco Products Co. | 513,380 | ||
3,000 | Waters Corp. (a) | 174,780 | ||
4,310,641 | ||||
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Real Estate Investment Trusts (2.4%) | |||||
10,500 | Annaly Capital Management, Inc. | 151,725 | |||
10,400 | Douglas Emmett, Inc. | 239,824 | |||
8,700 | First Industrial Realty Trust, Inc. | 336,777 | |||
16,500 | Highwoods Properties, Inc. | 536,745 | |||
14,300 | HRPT Properties Trust | 133,705 | |||
2,800 | Mack-Cali Realty Corp. | 108,080 | |||
4,200 | Potlatch Corp. | 183,498 | |||
1,690,354 | |||||
Telecommunications (2.1%) | |||||
7,300 | Belo Corp. | 130,670 | |||
9,000 | CenturyTel, Inc. | 412,830 | |||
10,100 | CommScope, Inc. (a) | 549,743 | |||
6,000 | Telephone & Data Systems, Inc. | 398,400 | |||
1,491,643 | |||||
Transportation (3.5%) | |||||
3,700 | Alaska Air Group, Inc. (a) | 86,321 | |||
30,000 | ArvinMeritor, Inc. | 594,900 | |||
6,900 | Con-Way, Inc. | 340,791 | |||
17,500 | Continental Airlines, Inc., Class B (a) | 551,425 | |||
7,700 | Overseas Shipholding Group, Inc. | 597,443 | |||
5,900 | US Airways Group, Inc. (a) | 182,959 | |||
5,500 | YRC Worldwide, Inc. (a) | 176,660 | |||
2,530,499 | |||||
Utilities (5.3%) | |||||
18,100 | Alliant Energy Corp. | 668,795 | |||
15,850 | MDU Resources Group, Inc. | 432,071 | |||
6,300 | Nicor, Inc. | 248,283 | |||
22,700 | Northeast Utilities | 620,618 | |||
7,600 | NSTAR | 239,020 | |||
6,200 | OGE Energy Corp. | 205,530 | |||
9,700 | ONEOK, Inc. | 492,275 | |||
14,900 | WGL Holdings, Inc. | 446,106 | |||
10,200 | Wisconsin Energy Corp. | 437,886 | |||
3,790,584 | |||||
Total Common Stocks (Cost $66,141,534) | 69,767,870 | ||||
Investment Companies (2.5%) | |||||
1,804,318 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 1,804,318 | |||
Total Investment Companies (Cost $1,804,318) | 1,804,318 | ||||
Total Investments (Cost $67,945,852) (c)—100.0% | 71,572,188 | ||||
Other assets in excess of liabilities—0.0% | 24,067 | ||||
Net Assets—100.0% | $ | 71,596,255 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Cost for federal income tax purposes is $68,033,359. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 7,905,475 | ||
Unrealized depreciation | (4,366,646 | ) | ||
Net unrealized appreciation | $ | 3,538,829 | ||
See notes to financial statements.
55
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (99.3%) | ||||
Consumer Discretionary (16.0%) | ||||
13,490 | Avon Products, Inc. | 485,775 | ||
80,910 | Big Lots, Inc. (a) | 2,092,333 | ||
55,540 | CBS Corp., Class B | 1,761,729 | ||
40,140 | Colgate-Palmolive Co. | 2,649,240 | ||
41,320 | Estee Lauder Cos., Inc. (The), Class A | 1,860,226 | ||
12,470 | Expedia, Inc. (a) | 331,827 | ||
64,240 | Family Dollar Stores, Inc. | 1,902,789 | ||
50,710 | Hasbro, Inc. | 1,420,894 | ||
32,490 | IAC/InterActive Corp. (a) | 933,763 | ||
8,210 | J.C. Penney Co., Inc. | 558,608 | ||
8,820 | Manpower, Inc. | 697,221 | ||
96,200 | Mattel, Inc. | 2,203,942 | ||
17,590 | McDonald’s Corp. | 842,033 | ||
11,420 | Newell Rubbermaid, Inc. | 302,059 | ||
23,170 | NIKE, Inc., Class B | 1,307,946 | ||
38,140 | Omnicom Group, Inc. | 1,978,322 | ||
60,660 | RadioShack Corp. | 1,524,386 | ||
62,110 | TJX Companies, Inc. (The) | 1,723,552 | ||
54,700 | Wal-Mart Stores, Inc. | 2,513,465 | ||
27,090,110 | ||||
Consumer Staples (9.1%) | ||||
29,920 | Altria Group, Inc. | 1,988,782 | ||
13,160 | Campbell Soup Co. | 484,683 | ||
91,460 | ConAgra Foods, Inc. | 2,318,511 | ||
5,820 | Dow Chemical Co. (The) | 253,054 | ||
26,840 | International Paper Co. | 994,959 | ||
88,170 | Kroger Co. (The) | 2,288,893 | ||
10,250 | Molson Coors Brewing Co., Class B | 911,635 | ||
68,704 | PepsiCo, Inc. | 4,508,356 | ||
27,157 | Procter & Gamble Co. (The) | 1,679,932 | ||
15,428,805 | ||||
Energy (14.6%) | ||||
3,260 | Chevron Corp. | 277,948 | ||
17,280 | ConocoPhillips | 1,396,915 | ||
25,120 | Constellation Energy Group | 2,105,056 | ||
13,990 | Devon Energy Corp. | 1,043,794 | ||
23,150 | ENSCO International, Inc. | 1,413,770 | ||
121,040 | Exxon Mobil Corp. | 10,304,135 | ||
33,080 | Halliburton Co. | 1,191,542 | ||
56,390 | Marathon Oil Corp. | 3,112,728 | ||
24,110 | Tesoro Corp. | 1,200,678 | ||
40,370 | Valero Energy Corp. | 2,705,194 | ||
24,751,760 | ||||
Financials (10.8%) | ||||
12,160 | ACE Ltd. | 701,875 | ||
32,360 | Allstate Corp. (The) | 1,719,934 | ||
24,850 | Chubb Corp. (The) | 1,252,689 | ||
38,760 | CIGNA Corp. | 2,001,567 | ||
14,345 | Discover Financial Services (a) | 330,652 | ||
12,300 | Goldman Sachs Group, Inc. (The) | 2,316,582 | ||
36,540 | JPMorgan Chase & Co. | 1,608,125 | ||
8,550 | Loews Corp. | 405,270 | ||
2,330 | MasterCard, Inc., Class A | 374,664 | ||
24,130 | Merrill Lynch & Co., Inc. | 1,790,446 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
9,380 | MGIC Investment Corp. | 362,631 | ||
3,860 | Moody’s Corp. | 207,668 | ||
28,690 | Morgan Stanley | 1,832,430 | ||
20,740 | Radian Group, Inc. | 699,145 | ||
48,140 | Travelers Cos., Inc. (The) | 2,444,549 | ||
3,530 | XL Capital Ltd., Class A | 274,846 | ||
18,323,073 | ||||
Health Care (15.4%) | ||||
5,410 | Aetna, Inc. | 260,059 | ||
43,470 | AmerisourceBergen Corp. | 2,047,872 | ||
35,140 | Amgen, Inc. (a) | 1,888,423 | ||
53,080 | Applera Corp. | 1,657,158 | ||
61,960 | Baxter International, Inc. | 3,259,096 | ||
37,120 | Biogen Idec, Inc. (a) | 2,098,765 | ||
14,210 | Forest Laboratories, Inc. (a) | 571,242 | ||
114,560 | Johnson & Johnson | 6,930,880 | ||
8,620 | McKesson Corp. | 497,891 | ||
10,470 | Medco Health Solutions, Inc. (a) | 850,897 | ||
185,320 | Pfizer, Inc. | 4,356,873 | ||
32,970 | UnitedHealth Group, Inc. | 1,596,737 | ||
26,015,893 | ||||
Industrials (10.2%) | ||||
9,280 | American Standard Cos., Inc. | 501,584 | ||
7,080 | Cummins, Inc. | 840,396 | ||
5,650 | Fluor Corp. | 652,632 | ||
37,890 | Honeywell International, Inc. | 2,179,054 | ||
15,420 | ITT Corp. | 969,610 | ||
18,000 | Jacobs Engineering Group, Inc. (a) | 1,109,340 | ||
31,950 | Lockheed Martin Corp. | 3,146,436 | ||
12,040 | National-Oilwell Varco, Inc. (a) | 1,446,124 | ||
26,630 | Northrop Grumman Corp. | 2,026,543 | ||
6,760 | PACCAR, Inc. | 553,103 | ||
5,980 | Republic Services, Inc. | 191,061 | ||
11,970 | Terex Corp. (a) | 1,032,412 | ||
4,140 | Textron, Inc. | 467,365 | ||
24,120 | W.W. Grainger, Inc. | 2,107,123 | ||
17,222,783 | ||||
Information Technology (20.7%) | ||||
46,270 | Accenture Ltd., Class A | 1,949,355 | ||
2,160 | Apple Computer, Inc. (a) | 284,602 | ||
10,800 | Automatic Data Processing, Inc. | 501,336 | ||
22,900 | Avnet, Inc. (a) | 867,452 | ||
26,890 | BMC Software, Inc. (a) | 772,281 | ||
219,690 | Cisco Systems, Inc. (a) | 6,351,238 | ||
24,140 | Computer Sciences Corp. (a) | 1,344,115 | ||
74,230 | Electronic Data Systems Corp. | 2,003,468 | ||
23,820 | Fiserv, Inc. (a) | 1,177,184 | ||
65,450 | Hewlett-Packard Co. | 3,012,663 | ||
62,680 | International Business Machines Corp. | 6,935,542 | ||
223,430 | Microsoft Corp. | 6,477,236 | ||
15,180 | Motorola, Inc. | 257,908 | ||
32,770 | Novell, Inc. (a) | 219,887 | ||
76,490 | Texas Instruments, Inc. | 2,691,683 | ||
8,900 | Xilinx, Inc. | 222,500 | ||
35,068,450 | ||||
See notes to financial statements.
56
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Materials (1.3%) | ||||
9,020 | Eastman Chemical Co. | 620,756 | ||
12,350 | Nucor Corp. | 619,970 | ||
8,780 | United States Steel Corp. | 862,986 | ||
2,103,712 | ||||
Telecommunications (0.2%) | ||||
7,880 | CenturyTel, Inc. | 361,456 | ||
Transportation (1.0%) | ||||
58,110 | AMR Corp. (a) | 1,434,155 | ||
2,400 | Union Pacific Corp. | 285,936 | ||
1,720,091 | ||||
Total Common Stocks (Cost $165,118,150) | 168,086,133 | |||
Shares | Security | Value ($) | ||||
Investment Companies (0.8%) | ||||||
1,372,358 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 1,372,358 | ||||
Total Investment Companies (Cost $1,372,358) | 1,372,358 | |||||
Total Investments (Cost $166,490,508) (c)—100.1% | 169,458,491 | |||||
Liabilities in excess of other assets—(0.1)% | (112,435 | ) | ||||
Net Assets—100.0% | $ | 169,346,056 | ||||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Cost for federal income tax purposes is $166,833,218. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 11,774,974 | ||
Unrealized depreciation | (9,149,701 | ) | ||
Net unrealized appreciation | $ | 2,625,273 | ||
See notes to financial statements.
57
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (98.9%) | ||||
Consumer Discretionary (14.5%) | ||||
40,250 | Big Lots, Inc. (a) | 1,040,865 | ||
39,030 | CBS Corp., Class B | 1,238,032 | ||
34,460 | Colgate-Palmolive Co. | 2,274,360 | ||
22,810 | Estee Lauder Cos., Inc. (The), Class A | 1,026,906 | ||
65,340 | IAC/InterActive Corp. (a) | 1,877,872 | ||
32,410 | J.C. Penney Co., Inc. | 2,205,176 | ||
26,240 | Kohl’s Corp. (a) | 1,595,392 | ||
9,910 | Manpower, Inc. | 783,386 | ||
94,650 | Mattel, Inc. | 2,168,432 | ||
16,185 | McDonald’s Corp. | 774,776 | ||
19,400 | McGraw-Hill Cos., Inc. (The) | 1,173,700 | ||
51,760 | Omnicom Group, Inc. | 2,684,791 | ||
52,610 | RadioShack Corp. | 1,322,089 | ||
13,460 | Sherwin-Williams Co. (The) | 938,027 | ||
42,930 | Walt Disney Co. (The) | 1,416,690 | ||
22,520,494 | ||||
Consumer Staples (6.5%) | ||||
23,020 | Altria Group, Inc. | 1,530,139 | ||
63,250 | ConAgra Foods, Inc. | 1,603,387 | ||
16,021 | Kraft Foods, Inc. | 524,688 | ||
84,950 | Kroger Co. (The) | 2,205,302 | ||
14,300 | Loews Corp. - Carolina Group | 1,083,797 | ||
46,995 | PepsiCo, Inc. | 3,083,812 | ||
10,031,125 | ||||
Energy (13.0%) | ||||
39,520 | ConocoPhillips | 3,194,797 | ||
33,380 | Constellation Energy Group | 2,797,244 | ||
14,930 | Devon Energy Corp. | 1,113,927 | ||
20,180 | ENSCO International, Inc. | 1,232,393 | ||
51,840 | Exxon Mobil Corp. | 4,413,139 | ||
63,920 | Halliburton Co. | 2,302,398 | ||
48,180 | Marathon Oil Corp. | 2,659,536 | ||
46,660 | NiSource, Inc. | 889,806 | ||
24,110 | Valero Energy Corp. | 1,615,611 | ||
20,218,851 | ||||
Financials (18.5%) | ||||
23,910 | Allstate Corp. (The) | 1,270,817 | ||
81,020 | Bank of America Corp. | 3,841,968 | ||
16,340 | Bear Stearns Cos., Inc. (The) | 1,980,735 | ||
12,340 | CIGNA Corp. | 637,238 | ||
85,150 | Citigroup, Inc. | 3,965,435 | ||
104,275 | JPMorgan Chase & Co. | 4,589,143 | ||
50,550 | Merrill Lynch & Co., Inc. | 3,750,810 | ||
29,290 | MGIC Investment Corp. | 1,132,351 | ||
7,100 | Morgan Stanley | 453,477 | ||
14,860 | PNC Financial Services Group, Inc. | 990,419 | ||
14,790 | Prudential Financial, Inc. | 1,310,838 | ||
67,360 | Travelers Cos., Inc. (The) | 3,420,541 | ||
16,740 | XL Capital Ltd., Class A | 1,303,376 | ||
28,647,148 | ||||
Health Care (11.7%) | ||||
53,330 | Aetna, Inc. | 2,563,573 | ||
64,510 | Baxter International, Inc. | 3,393,226 |
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Health Care, continued | |||||
33,630 | Biogen Idec, Inc. (a) | 1,901,440 | |||
42,026 | Johnson & Johnson | 2,542,573 | |||
57,510 | McKesson Corp. | 3,321,778 | |||
32,310 | Merck & Co., Inc. | 1,604,192 | |||
120,138 | Pfizer, Inc. | 2,824,444 | |||
18,151,226 | |||||
Industrials (9.7%) | |||||
12,170 | Cummins, Inc. | 1,444,579 | |||
55,850 | Emerson Electric Co. | 2,628,860 | |||
35,930 | Honeywell International, Inc. | 2,066,334 | |||
23,160 | Lockheed Martin Corp. | 2,280,797 | |||
25,460 | Northrop Grumman Corp. | 1,937,506 | |||
21,970 | Terex Corp. (a) | 1,894,913 | |||
9,990 | Textron, Inc. | 1,127,771 | |||
19,590 | W.W. Grainger, Inc. | 1,711,382 | |||
15,092,142 | |||||
Information Technology (14.2%) | |||||
20,750 | Avnet, Inc. (a) | 786,010 | |||
36,930 | BMC Software, Inc. (a) | 1,060,630 | |||
101,760 | Cisco Systems, Inc. (a) | 2,941,882 | |||
17,980 | Computer Sciences Corp. (a) | 1,001,126 | |||
14,190 | Fiserv, Inc. (a) | 701,270 | |||
99,220 | Hewlett-Packard Co. | 4,567,096 | |||
24,640 | International Business Machines Corp. | 2,726,416 | |||
146,290 | Microsoft Corp. | 4,240,947 | |||
62,520 | Motorola, Inc. | �� | 1,062,215 | ||
81,670 | Texas Instruments, Inc. | 2,873,967 | |||
21,961,559 | |||||
Materials (3.1%) | |||||
34,610 | Nucor Corp. | 1,737,422 | |||
33,190 | Pactiv Corp. (a) | 1,049,136 | |||
26,690 | PPG Industries, Inc. | 2,035,646 | |||
4,822,204 | |||||
Real Estate Investment Trusts (0.8%) | |||||
13,260 | Simon Property Group, Inc. | 1,147,388 | |||
Telecommunications (3.8%) | |||||
151,346 | AT&T, Inc. | 5,926,709 | |||
Transportation (2.1%) | |||||
59,450 | AMR Corp. (a) | 1,467,226 | |||
14,370 | Union Pacific Corp. | 1,712,042 | |||
3,179,268 | |||||
Utilities (1.0%) | |||||
37,080 | PG&E Corp. | 1,587,395 | |||
Total Common Stocks (Cost $152,065,487) | 153,285,509 | ||||
Investment Companies (1.1%) | |||||
1,770,732 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 1,770,732 | |||
Total Investment Companies (Cost $1,770,732) | 1,770,732 | ||||
Total Investments (Cost $153,836,219) (c)—100.0% | 155,056,241 | ||||
Other assets in excess of liabilities—0.0% | 4,481 | ||||
Net Assets—100.0% | $ | 155,060,722 | |||
See notes to financial statements.
58
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments, continued
July 31, 2007
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Cost for federal income tax purposes is $154,009,124. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 11,023,279 | ||
Unrealized depreciation | (9,976,162 | ) | ||
Net unrealized appreciation | $ | 1,047,117 | ||
See notes to financial statements.
59
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks (98.9%) | ||||
Consumer Discretionary (10.9%) | ||||
6,040 | Avon Products, Inc. | 217,500 | ||
61,590 | CBS Corp., Class B | 1,953,635 | ||
32,890 | Colgate-Palmolive Co. | 2,170,740 | ||
14,380 | Estee Lauder Cos., Inc. (The), Class A | 647,388 | ||
28,430 | Family Dollar Stores, Inc. | 842,097 | ||
12,250 | Goodyear Tire & Rubber Co. (The) (a) | 351,820 | ||
43,470 | Hasbro, Inc. | 1,218,029 | ||
15,250 | IAC/InterActive Corp. (a) | 438,285 | ||
1,980 | ITT Educational Services, Inc. (a) | 209,207 | ||
45,000 | Mattel, Inc. | 1,030,950 | ||
10,100 | McGraw-Hill Cos., Inc. (The) | 611,050 | ||
37,880 | Omnicom Group, Inc. | 1,964,836 | ||
28,890 | RadioShack Corp. | 726,006 | ||
24,450 | Ross Stores, Inc. | 707,338 | ||
18,350 | Sherwin-Williams Co. (The) | 1,278,811 | ||
22,280 | TJX Companies, Inc. (The) | 618,270 | ||
38,340 | Walt Disney Co. (The) | 1,265,220 | ||
16,251,182 | ||||
Consumer Staples (6.0%) | ||||
22,704 | Altria Group, Inc. | 1,509,135 | ||
98,570 | ConAgra Foods, Inc. | 2,498,750 | ||
52,360 | International Paper Co. | 1,940,985 | ||
18,021 | Kraft Foods, Inc. | 590,188 | ||
53,170 | Kroger Co. (The) | 1,380,293 | ||
3,030 | Loews Corp. - Carolina Group | 229,644 | ||
13,810 | PepsiCo, Inc. | 906,212 | ||
9,055,207 | ||||
Energy (16.6%) | ||||
8,790 | Atmos Energy Corp. | 246,735 | ||
22,790 | Chevron Corp. | 1,943,076 | ||
26,600 | ConocoPhillips | 2,150,344 | ||
25,390 | Constellation Energy Group | 2,127,682 | ||
9,810 | Devon Energy Corp. | 731,924 | ||
104,908 | Exxon Mobil Corp. | 8,930,818 | ||
10,770 | Frontier Oil Corp. | 417,122 | ||
9,800 | Holly Corp. | 660,422 | ||
49,600 | Marathon Oil Corp. | 2,737,920 | ||
75,320 | Reliant Energy, Inc. (a) | 1,934,218 | ||
4,460 | Sempra Energy | 235,131 | ||
2,220 | Sunoco, Inc. | 148,118 | ||
11,620 | Tidewater, Inc. | 795,040 | ||
26,860 | Valero Energy Corp. | 1,799,889 | ||
24,858,439 | ||||
Financials (31.3%) | ||||
24,690 | ACE Ltd. | 1,425,107 | ||
51,420 | Allstate Corp. (The) | 2,732,973 | ||
5,000 | Ambac Financial Group, Inc. | 335,750 | ||
15,440 | American Financial Group, Inc. | 433,710 | ||
1,730 | AvalonBay Communities, Inc. | 186,788 | ||
112,240 | Bank of America Corp. | 5,322,421 | ||
10,140 | Boston Properties, Inc. | 958,129 | ||
16,570 | Chubb Corp. (The) | 835,294 | ||
21,800 | CIGNA Corp. | 1,125,752 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
125,060 | Citigroup, Inc. | 5,824,044 | ||
13,290 | Countrywide Financial Corp. | 374,379 | ||
14,650 | Discover Financial Services (a) | 337,682 | ||
4,540 | Everest Re Group Ltd. | 446,055 | ||
6,240 | Goldman Sachs Group, Inc. (The) | 1,175,241 | ||
12,250 | Hospitality Properties Trust | 469,910 | ||
117,899 | JPMorgan Chase & Co. | 5,188,735 | ||
51,160 | KeyCorp, Inc. | 1,774,740 | ||
16,790 | Loews Corp. | 795,846 | ||
39,990 | Merrill Lynch & Co., Inc. | 2,967,258 | ||
19,500 | MGIC Investment Corp. | 753,870 | ||
29,300 | Morgan Stanley | 1,871,391 | ||
10,260 | PartnerRe Ltd. | 728,768 | ||
37,400 | PMI Group, Inc. (The) | 1,274,218 | ||
17,930 | PNC Financial Services Group, Inc. | 1,195,034 | ||
8,560 | Radian Group, Inc. | 288,558 | ||
35,970 | SAFECO, Inc. | 2,103,166 | ||
10,100 | State Street Corp. | 677,003 | ||
15,570 | SunTrust Banks, Inc. | 1,219,131 | ||
57,300 | Travelers Cos., Inc. (The) | 2,909,694 | ||
36,340 | U.S. Bancorp | 1,088,383 | ||
46,819,030 | ||||
Health Care (6.0%) | ||||
21,530 | AmerisourceBergen Corp. | 1,014,278 | ||
29,870 | Baxter International, Inc. | 1,571,162 | ||
9,040 | Forest Laboratories, Inc. (a) | 363,408 | ||
2,970 | Genentech, Inc. (a) | 220,909 | ||
14,690 | Johnson & Johnson | 888,745 | ||
36,450 | McKesson Corp. | 2,105,352 | ||
7,650 | Medco Health Solutions, Inc. (a) | 621,716 | ||
94,300 | Pfizer, Inc. | 2,216,993 | ||
9,002,563 | ||||
Industrials (9.9%) | ||||
10,440 | Corrections Corp. of America (a) | 301,194 | ||
10,520 | Cummins, Inc. | 1,248,724 | ||
28,360 | Emerson Electric Co. | 1,334,905 | ||
2,960 | Fluor Corp. | 341,910 | ||
98,760 | General Electric Co. | 3,827,938 | ||
18,070 | Honeywell International, Inc. | 1,039,206 | ||
4,710 | Jacobs Engineering Group, Inc. (a) | 290,277 | ||
24,190 | Lockheed Martin Corp. | 2,382,231 | ||
18,970 | SPX Corp. | 1,780,714 | ||
17,920 | Terex Corp. (a) | 1,545,600 | ||
6,250 | Textron, Inc. | 705,562 | ||
14,798,261 | ||||
Information Technology (3.2%) | ||||
17,050 | Accenture Ltd., Class A | 718,317 | ||
12,860 | Avnet, Inc. (a) | 487,137 | ||
15,040 | BMC Software, Inc. (a) | 431,949 | ||
50,003 | Hewlett-Packard Co. | 2,301,638 | ||
17,190 | McAfee, Inc. (a) | 616,433 | ||
13,940 | Vishay Intertechnology, Inc. (a) | 216,209 | ||
4,771,683 | ||||
See notes to financial statements.
60
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Materials (3.0%) | ||||
66,510 | Celanese Corp., Series A | 2,494,125 | ||
5,350 | Lubrizol Corp. (The) | 335,231 | ||
18,880 | Nucor Corp. | 947,776 | ||
7,000 | United States Steel Corp. | 688,030 | ||
4,465,162 | ||||
Real Estate Investment Trusts (0.8%) | ||||
7,950 | AMB Property Corp. | 423,576 | ||
15,770 | Brandywine Realty Trust | 380,372 | ||
23,040 | HRPT Properties Trust | 215,424 | ||
1,700 | SL Green Realty Corp. | 206,414 | ||
1,225,786 | ||||
Telecommunications (6.8%) | ||||
179,411 | AT&T, Inc. | 7,025,735 | ||
21,960 | CenturyTel, Inc. | 1,007,305 | ||
7,700 | CommScope, Inc. (a) | 419,111 | ||
4,490 | Harris Corp. | 246,411 | ||
116,370 | Qwest Communications International, Inc. (a) | 992,636 | ||
11,820 | Verizon Communications, Inc. | 503,769 | ||
10,194,967 | ||||
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Transportation (1.3%) | |||||
17,650 | Con-Way, Inc. | 871,733 | |||
17,690 | Continental Airlines, Inc., Class B (a) | 557,412 | |||
6,910 | Overseas Shipholding Group, Inc. | 536,147 | |||
1,965,292 | |||||
Utilities (3.1%) | |||||
47,890 | Edison International | 2,532,902 | |||
49,560 | Northeast Utilities | 1,354,970 | |||
15,790 | ONEOK, Inc. | 801,343 | |||
4,689,215 | |||||
Total Common Stocks (Cost $144,458,553) | 148,096,787 | ||||
Investment Companies (1.1%) | |||||
1,565,074 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 1,565,074 | |||
Total Investment Companies (Cost $1,565,074) | 1,565,074 | ||||
Total Investments (Cost $146,023,627) (c)—100.0% | 149,661,861 | ||||
Other assets in excess of liabilities—0.0% | 39,471 | ||||
Net Assets—100.0% | $ | 149,701,332 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Cost for federal income tax purposes is $146,136,831. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 12,668,051 | ||
Unrealized depreciation | (9,143,021 | ) | ||
Net unrealized appreciation | $ | 3,525,030 | ||
See notes to financial statements.
61
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2007
Shares or Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds (29.0%) | ||||
Consumer Discretionary (4.5%) | ||||
1,388,000 | Colgate-Palmolive Co., Series B, 7.60%, 5/19/25, MTN | 1,679,799 | ||
2,990,000 | Comcast Corp., 5.85%, 11/15/15 | 2,920,970 | ||
4,600,000 | Harvard President & Fellows of Harvard, 6.30%, 10/1/37, Callable 4/1/16 @ 100 | 4,807,359 | ||
1,900,000 | Lowe’s Companies, Inc., | 1,817,899 | ||
2,500,000 | Wal-Mart Stores, Inc., | 2,790,475 | ||
14,016,502 | ||||
Consumer Staples (2.6%) | ||||
625,000 | Bestfoods, Series F, 6.63%, 4/15/28, MTN | 651,118 | ||
300,000 | Kellogg Co., 2.88%, 6/1/08 | 293,546 | ||
1,500,000 | Kimberly-Clark, 6.13%, 8/1/17 | 1,513,367 | ||
2,200,000 | Procter & Gamble Co. (The), | 2,343,308 | ||
340,000 | Science Applications International Corp., 7.13%, 7/1/32 | 362,806 | ||
3,360,000 | Science Applications International Corp., 5.50%, 7/1/33 | 2,970,643 | ||
8,134,788 | ||||
Energy (3.7%) | ||||
1,800,000 | Apache Finance Canada, | 2,083,140 | ||
1,030,000 | Atlantic Richfield Co., | 1,168,751 | ||
2,125,000 | Duke Capital LLC, 8.00%, 10/1/19 | 2,354,139 | ||
1,905,000 | Halliburton Co., 8.75%, 2/15/21 | 2,362,507 | ||
3,625,000 | Smith International, Inc., | 3,675,659 | ||
11,644,196 | ||||
Financials (7.1%) | ||||
Banking (3.6%) | ||||
920,444 | Fifth Third Bancorp, Series BKNT, 2.87%, 8/10/09 | 899,046 | ||
3,700,000 | Merrill Lynch & Co., Series C, 5.59% (a), 6/5/12, MTN | 3,629,182 | ||
1,600,000 | Merrill Lynch & Co., | 1,512,590 | ||
1,300,000 | US Bank NA, 6.30%, 2/4/14 | 1,346,293 | ||
2,110,000 | US Bank NA, Series BKNT, | 2,009,775 | ||
1,825,000 | Washington Mutual Bank, | 1,827,911 | ||
11,224,797 | ||||
Financial Services (3.5%) | ||||
1,000,000 | General Electric Capital Corp., 5.72%, 8/22/11, | 1,004,155 |
Shares or Principal | Security | Value ($) | ||
Corporate Bonds, continued | ||||
Financials, continued | ||||
Financial Services, continued | ||||
500,000 | Genworth Financial, Inc., | 498,771 | ||
1,000,000 | International Lease Finance Corp., Series MTNP, | 1,008,160 | ||
3,450,000 | International Lease Finance Corp., 5.71% (a), 7/13/12 | 3,470,258 | ||
2,855,449 | Toyota Motor Credit Corp., | 2,791,090 | ||
2,450,000 | Toyota Motor Credit Corp., Series B, 5.42%, 3/22/17, | 2,405,378 | ||
11,177,812 | ||||
22,402,609 | ||||
Industrials (0.7%) | ||||
2,400,000 | Dominion Resources, Inc., | 2,324,090 | ||
Information Technology (1.2%) | ||||
2,925,000 | Dell, Inc., 7.10%, 4/15/28 | 3,052,910 | ||
625,000 | Pitney Bowes, Inc., | 595,315 | ||
3,648,225 | ||||
Materials (0.7%) | ||||
2,150,000 | Placer Dome, Inc., | 2,146,689 | ||
Pharmaceuticals (1.9%) | ||||
950,000 | Abbott Laboratories, | 958,148 | ||
4,200,000 | Eli Lilly & Co., 5.50%, 3/15/27 | 3,910,796 | ||
872,000 | Pharmacia Corp., 6.75%, 12/15/27 | 969,613 | ||
5,838,557 | ||||
Supranational Agency (2.3%) | ||||
1,860,000 | African Development Bank, | 2,014,151 | ||
4,779,000 | Inter-American Development Bank, 8.50%, 3/15/11 | 5,279,524 | ||
7,293,675 | ||||
Telecommunications (2.0%) | ||||
4,075,000 | GTE Southwest, Inc., First Mortgage Bond, | 4,782,705 | ||
1,550,000 | Harris Corp., 5.00%, 10/1/15 | 1,453,379 | ||
6,236,084 | ||||
Transportation (1.6%) | ||||
811,977 | Burlington Northern & Santa Fe Railway Co. (The), | 787,845 |
See notes to financial statements.
62
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares or Principal | Security | Value ($) | ||
Corporate Bonds, continued | ||||
Transportation, continued | ||||
4,087,716 | FedEx Corp., Pass Thru Certificates, 7.50%, 1/15/18 | 4,408,653 | ||
5,196,498 | ||||
Utilities (0.7%) | ||||
2,295,000 | Alabama Power Co., Series 1, 5.65%, 3/15/35, | 2,086,564 | ||
Total Corporate Bonds (Cost $91,502,556) | 90,968,477 | |||
U.S. Government Agency Mortgage-Backed Obligations (37.8%) | ||||
Federal Home Loan Mortgage Corp. (10.6%) | ||||
2,886,916 | 5.50%, 4/1/21 | 2,854,727 | ||
2,278,542 | 4.50%, 8/1/33 | 2,083,354 | ||
2,829,525 | 5.00%, 5/1/34 | 2,667,731 | ||
4,935,948 | 5.50%, 3/1/35 | 4,782,228 | ||
1,827,423 | 6.00%, 4/1/36 | 1,814,194 | ||
6,381,568 | 5.84%, 12/1/36 | 6,345,669 | ||
6,587,377 | 6.00%, 12/1/36 | 6,539,690 | ||
3,395,019 | 5.50%, 1/1/37 | 3,261,196 | ||
2,849,660 | 6.50%, 5/1/37 | 2,882,543 | ||
33,231,332 | ||||
Federal National Mortgage Assoc. (26.4%) | ||||
2,125,142 | 4.50%, 6/1/14 | 2,082,226 | ||
3,286,868 | 4.50%, 3/1/19 | 3,142,555 | ||
823,881 | 4.50%, 10/1/33 | 753,113 | ||
2,841,819 | 5.00%, 1/1/34 | 2,681,187 | ||
774,763 | 5.00%, 3/1/34 | 730,970 | ||
3,952,603 | 5.08%(a), 9/1/34 | 3,857,780 | ||
3,754,191 | 5.10%(a), 10/1/34 | 3,721,714 | ||
2,977,284 | 5.50%, 2/1/35 | 2,886,385 | ||
6,958,951 | 5.50%, 2/1/35 | 6,746,489 | ||
2,600,433 | 5.00%, 4/1/35 | 2,446,792 | ||
2,698,353 | 6.00%, 4/1/35 | 2,683,615 | ||
4,494,334 | 5.00%, 7/1/35 | 4,228,795 | ||
8,188,000 | 5.50%, 7/25/35 | 8,009,247 | ||
1,460,734 | 5.00%, 8/1/35 | 1,374,420 | ||
3,467,439 | 5.00%, 8/1/35 | 3,262,550 | ||
4,101,050 | 5.50%, 10/1/35 | 3,971,578 | ||
4,721,875 | 5.50%, 10/1/35 | 4,572,803 | ||
2,650,314 | 6.00%, 12/1/35 | 2,631,347 | ||
3,890,061 | 6.00%, 1/1/36 | 3,862,223 | ||
2,345,739 | 6.00%, 3/1/36 | 2,326,155 | ||
1,815,756 | 6.50%, 6/1/36 | 1,834,581 | ||
3,001,719 | 6.50%, 6/1/36 | 3,032,840 | ||
2,446,910 | 6.00%, 10/1/36 | 2,426,482 | ||
3,241,813 | 5.50%, 12/1/36 | 3,113,016 | ||
6,571,698 | 5.60%(a), 1/1/37 | 6,494,272 | ||
82,873,135 | ||||
Government National Mortgage Assoc. (0.8%) | ||||
2,492,478 | 5.50%, 11/15/35 | 2,431,803 | ||
Total U.S. Government Agency Mortgage- Backed Obligations (Cost $118,933,127) | 118,536,270 | |||
Shares or Principal | Security | Value ($) | ||
U.S. Government Agencies (13.2%) | ||||
Federal Home Loan Bank (4.7%) | ||||
2,000,000 | 5.02%, 11/7/08 | 1,999,286 | ||
1,000,000 | 5.50%, 4/17/09, | 1,000,110 | ||
5,000,000 | 5.75%, 8/7/09, | 5,000,310 | ||
1,000,000 | 5.25%, 11/13/09, | 999,851 | ||
3,000,000 | 7.63%, 5/14/10 | 3,205,503 | ||
400,000 | 5.00%(a), 5/26/10 | 400,408 | ||
2,000,000 | 4.00%, 12/30/10, | 2,001,130 | ||
535,000 | 4.87%, 9/7/12, | 524,868 | ||
15,131,466 | ||||
Federal Home Loan Mortgage Corp. (2.5%) | ||||
3,025,000 | 5.40%, 6/15/10, | 3,040,455 | ||
1,500,000 | 6.00%, 11/20/15, | 1,495,350 | ||
3,000,000 | 6.25%, 4/7/21, | 2,978,910 | ||
7,514,715 | ||||
Federal National Mortgage Assoc. (5.6%) | ||||
1,100,000 | 5.25%, 12/28/09, | 1,099,351 | ||
1,350,000 | 5.50%, 7/9/10, | 1,351,053 | ||
1,000,000 | 6.88%, 9/10/12, Callable 9/10/07 @ 100, MTN | 1,001,438 | ||
14,150,000 | 5.25%, 9/15/16 | 14,059,242 | ||
17,511,084 | ||||
Small Business Administration Corp. (0.4%) | ||||
1,293,194 | (0.4%) 6.34%, 8/1/11 | 1,312,830 | ||
Total U.S. Government Agencies (Cost $41,555,557) | 41,470,095 | |||
U.S. Treasury Obligations (17.7%) | ||||
U.S. Treasury Bonds (1.2%) | ||||
2,850,000 | 7.88%, 2/15/21 | 3,655,573 | ||
U.S. Treasury Notes (16.5%) | ||||
8,000,000 | 5.50%, 5/15/09 | 8,125,632 | ||
16,500,000 | 6.50%, 2/15/10 | 17,261,838 | ||
13,000,000 | 4.75%, 3/31/11 | 13,085,319 | ||
5,000,000 | 4.75%, 5/15/14 | 5,016,410 | ||
8,145,000 | 5.13%, 5/15/16 | 8,340,993 | ||
51,830,192 | ||||
Total U.S. Treasury Obligations (Cost $54,881,357) | 55,485,765 | |||
See notes to financial statements.
63
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares or Principal | Security | Value ($) | |||
Investment Companies (1.5%) | |||||
4,800,720 | Victory Institutional Money Market Fund, Investor Shares, 5.02% (b) | 4,800,720 | |||
Total Investment Companies (Cost $4,800,720) | 4,800,720 | ||||
Total Investments (Cost $311,673,317) (c)—99.2% | 311,261,327 | ||||
Other assets in excess of liabilities—0.8% | 2,567,906 | ||||
Net Assets—100.0% | $ | 313,829,233 | |||
(a) | Rate periodically changes. Rate disclosed is the rate in effect on July 31, 2007. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 2,383,555 | ||
Unrealized depreciation | (2,795,545 | ) | ||
Net unrealized depreciation | $ | (411,990 | ) | |
MTN—Medium Term Note
See notes to financial statements.
64
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds (100.0%) | ||||
Arizona (3.5%) | ||||
7,255,000 | Phoenix Civic Improvement Corp., Civic Plaza, Convertible CAB, 0.00%(a), 7/1/31, 5.50% effective 7/1/13, FGIC | 6,151,152 | ||
2,150,000 | Phoenix Civic Improvement Corp., Wastewater Revenue, | 2,152,623 | ||
1,605,000 | Scottsdale GO, 5.38%, 7/1/16, Callable 7/1/11 @ 101 | 1,703,242 | ||
10,007,017 | ||||
Arkansas (0.7%) | ||||
1,985,000 | Arkansas State Development Finance Authority, AMT, | 1,955,820 | ||
California (0.4%) | ||||
1,275,000 | California State Variable Purpose GO, 5.00%, 8/1/33, Callable 8/1/15 @ 100 | 1,305,103 | ||
Connecticut (0.7%) | ||||
2,000,000 | Connecticut State Health & Educational Facility Authority Revenue, University of | 2,107,540 | ||
Florida (4.3%) | ||||
3,500,000 | Florida State Turnpike Authority Revenue, Department of Transportation, Series A, | 3,720,640 | ||
2,000,000 | Hillsborough County Aviation Authority Revenue, AMT, 5.25%, 10/1/18, Callable | 2,092,940 | ||
2,000,000 | Miami-Dade County Expressway Authority Toll System Revenue, 6.00%, 7/1/20, Prerefunded 7/1/10 @ 101, FGIC | 2,138,600 | ||
3,725,000 | Orlando Utilities Community | 4,363,577 | ||
12,315,757 | ||||
Georgia (3.6%) | ||||
2,330,000 | Metropolitan Atlanta Rapid Transportation Authority Sales Tax Revenue, Series P, | 2,492,587 | ||
6,420,000 | Municipal Electric Authority Power Revenue, Series W, | 7,366,437 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Georgia, continued | ||||
390,000 | Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/1/18, Escrow to Maturity, MBIA | 471,198 | ||
10,330,222 | ||||
Hawaii (59.6%) | ||||
3,000,000 | Hawaii Airport System Revenue, AMT, 5.63%, 7/1/18, Callable 7/1/11 @ 100, FGIC, | 3,153,690 | ||
15,375,000 | Hawaii Airport System Revenue, Second Series, AMT, | 16,608,690 | ||
2,000,000 | Hawaii County GO, Series A, 5.50%, 5/1/08, FGIC | 2,025,620 | ||
605,000 | Hawaii County GO, Series A, 5.60%, 5/1/13, FGIC | 657,109 | ||
1,065,000 | Hawaii County GO, Series A, 5.50%, 7/15/14, Prerefunded 7/15/11 @ 100, FGIC | 1,130,806 | ||
1,340,000 | Hawaii County GO, Series A, 5.50%, 7/15/15, Prerefunded 7/15/11 @ 100, FGIC | 1,422,799 | ||
2,000,000 | Hawaii County GO, Series A, 5.50%, 5/15/16, Prerefunded 5/15/09 @ 101, FSA | 2,079,140 | ||
3,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., 5.70%, 7/1/20, Callable 7/1/10 @100, AMBAC | 3,144,360 | ||
3,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, AMT, 4.95%, 4/1/12, MBIA, | 3,139,440 | ||
2,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.50%, 12/1/14, Callable 12/1/09 @ 101, AMBAC | 2,091,000 | ||
5,200,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.65%, 10/1/27, Callable 10/1/12 @ 101, MBIA | 5,535,920 | ||
5,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series B, AMT, 4.60%, 5/1/26, Callable 3/1/17 @ 100, FGIC, | 4,852,900 |
See notes to financial statements.
65
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
2,500,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Queens Health System, Series B, | 2,583,125 | ||
1,500,000 | Hawaii Harbor System Revenue, Series B, AMT, 5.50%, 7/1/19, Callable 7/1/12 @ 100, AMBAC, | 1,578,195 | ||
2,340,000 | Hawaii Housing Finance & Development Corp., University of Hawaii Faculty Housing Project Revenue, | 2,347,043 | ||
1,500,000 | Hawaii State GO, Series CN, 6.25%, 3/1/08, FGIC | 1,521,345 | ||
1,350,000 | Hawaii State GO, Series CH, 4.75%, 11/1/11, MBIA | 1,398,154 | ||
2,000,000 | Hawaii State GO, Series BZ, 6.00%, 10/1/12, FGIC | 2,198,440 | ||
1,520,000 | Hawaii State GO, Series CP, 5.00%, 10/1/13, Callable 10/1/07 @ 101, FGIC | 1,537,769 | ||
1,335,000 | Hawaii State GO, Series CH, 4.75%, 11/1/13, MBIA | 1,396,530 | ||
3,000,000 | Hawaii State GO, Series CM, 6.50%, 12/1/13, FGIC | 3,431,640 | ||
500,000 | Hawaii State GO, Series CY, 5.75%, 2/1/15, FSA | 557,205 | ||
3,075,000 | Hawaii State GO, Series CP, 5.00%, 10/1/15, Prerefunded 10/1/07 @ 101, FGIC | 3,111,900 | ||
1,235,000 | Hawaii State GO, Series CP, 5.00%, 10/1/15, Callable 10/1/07 @ 101, FGIC | 1,249,375 | ||
1,080,000 | Hawaii State GO, Series DD, 5.00%, 5/1/16, Callable | 1,140,610 | ||
2,000,000 | Hawaii State GO, Series CT, 5.88%, 9/1/16, Prerefunded 9/1/09 @ 101, FSA | 2,103,460 | ||
860,000 | Hawaii State GO, Series CP, 5.00%, 10/1/16, Callable 10/1/07 @ 101, FGIC | 869,959 | ||
1,000,000 | Hawaii State GO, Series DD, 5.00%, 5/1/17, Callable | 1,053,100 | ||
2,000,000 | Hawaii State GO, Series CT, 5.88%, 9/1/17, Prerefunded 9/1/09 @ 101, FSA | 2,103,460 | ||
1,460,000 | Hawaii State GO, Series CP, 5.00%, 10/1/17, Prerefunded 10/1/07 @ 101, FGIC | 1,477,520 | ||
590,000 | Hawaii State GO, Series CP, 5.00%, 10/1/17, Callable 10/1/07 @ 101, FGIC | 596,809 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
2,680,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Prerefunded 5/1/14 @ 100, MBIA | 2,848,304 | ||
1,560,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Callable | 1,637,220 | ||
1,000,000 | Hawaii State Highway Revenue, 5.25%, 7/1/14, Prerefunded 7/1/08 @ 101, FGIC | 1,023,580 | ||
2,325,000 | Hawaii State Highway Revenue, 5.38%, 7/1/15, Prerefunded 7/1/11 @ 100, FSA | 2,456,851 | ||
1,350,000 | Hawaii State Highway Revenue, 5.38%, 7/1/17, Prerefunded 7/1/10 @ 100, FSA | 1,409,157 | ||
2,530,000 | Hawaii State Highway Revenue, 5.38%, 7/1/18, Prerefunded 7/1/10 @ 100, FSA | 2,640,865 | ||
2,970,000 | Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/18, Callable 7/1/14 @ 100, FGIC | 3,067,000 | ||
10,865,000 | Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/31, Callable 7/1/16 @ 100, MBIA | 10,935,188 | ||
1,000,000 | Honolulu City & County GO, Series B, 5.13%, 7/1/10, Prerefunded 7/1/09 @ 101, FGIC | 1,034,790 | ||
2,125,000 | Honolulu City & County GO, Series A, 6.00%, 1/1/11, ETM, FGIC | 2,273,155 | ||
875,000 | Honolulu City & County GO, Series A, 6.00%, 1/1/11, FGIC | 935,428 | ||
4,820,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/11, ETM, FGIC | 5,138,168 | ||
2,320,000 | Honolulu City & County GO, 6.00%, 12/1/11, ETM, FGIC | 2,521,770 | ||
1,865,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/12, FGIC | 2,014,778 | ||
640,000 | Honolulu City & County GO, Series B, 5.25%, 10/1/12, FGIC | 681,235 | ||
3,345,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, FGIC | 3,656,453 | ||
850,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, ETM, FGIC | 929,594 | ||
1,670,000 | Honolulu City & County GO, Series A, 5.63%, 9/1/13, Prerefunded 9/1/08 @ 100, FGIC | 1,703,968 | ||
2,500,000 | Honolulu City & County GO, Series C, 5.13%, 7/1/16, Callable 7/1/09 @ 101, FGIC | 2,579,950 |
See notes to financial statements.
66
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
2,595,000 | Honolulu City & County GO, Series B, 5.13%, 7/1/18, Prerefunded 7/1/09 @ 101, FGIC | 2,685,280 | ||
3,500,000 | Honolulu City & County GO, Series A, 5.38%, 9/1/18, Prerefunded 9/1/11 @ 100, FSA | 3,703,595 | ||
6,250,000 | Honolulu City & County GO, Series A, 5.00%, 7/1/19, Callable 7/1/15 @ 100, | 6,583,375 | ||
6,450,000 | Honolulu City & County GO, Series D, 5.00%, 7/1/20, Callable 7/1/15 @ 100, MBIA | 6,780,756 | ||
10,000,000 | Honolulu City & County Waste Water System | 10,385,700 | ||
2,000,000 | Honolulu City & County Waste Water System Revenue, Junior Series, 5.00%, 7/1/23, Callable 7/1/09 @ 101, FGIC | 2,051,620 | ||
2,155,000 | Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable 5/20/10 @ 102, FHA, | 2,280,895 | ||
1,340,000 | Kauai County GO, Series C, 5.90%, 8/1/09, AMBAC | 1,394,605 | ||
1,000,000 | Maui County GO, 6.00%, 12/15/08, ETM, FGIC | 1,029,520 | ||
1,160,000 | Maui County GO, Series A, 5.13%, 3/1/15, Prerefunded 3/1/08 @ 101, FGIC | 1,180,822 | ||
2,040,000 | Maui County GO, Series A, 5.38%, 3/1/17, Prerefunded 3/1/08 @ 101, FGIC | 2,079,494 | ||
1,125,000 | Maui County GO, Series C, 5.25%, 3/1/18, Callable 3/1/11 @ 100, FGIC | 1,173,319 | ||
1,000,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC | 1,073,700 | ||
1,205,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/22, Prerefunded 7/15/12 @ 100, FGIC | 1,293,808 | ||
1,000,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/29, Prerefunded 7/15/12 @ 100, FGIC | 1,073,700 | ||
172,354,756 | ||||
Illinois (1.7%) | ||||
2,000,000 | Chicago Midway Airport Revenue, Series C, 5.50%, 1/1/15, MBIA | 2,169,340 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Illinois, continued | ||||
5,505,000 | Kane & De Kalb Counties Illinois Community Unit School District GO, 4.87%(b), 2/1/23, FGIC | 2,712,754 | ||
4,882,094 | ||||
Indiana (0.4%) | ||||
1,000,000 | Tri-Creek High School Building Corp. Revenue, 5.00%, 7/15/15, Prerefunded 7/15/13 @ 100, FSA | 1,058,430 | ||
Kentucky (0.5%) | ||||
1,250,000 | Kentucky State Property & Buildings Commission Revenue, 2nd Series, AMT, 5.50%, 11/1/16, Callable 11/1/12 @ 100, FSA, | 1,342,113 | ||
Massachusetts (0.4%) | ||||
1,000,000 | Massachusetts State GO, Series C, 5.75%, 10/1/20, Prerefunded 10/1/10 @ 100 | 1,057,820 | ||
Michigan (2.0%) | ||||
3,000,000 | Michigan Municipal Building Authority Revenue, Clean Water Revolving Fund, 5.50%, 10/1/21, Prerefunded | 3,177,030 | ||
2,245,000 | Michigan State Strategic Fund Ltd. Obligation Revenue, 6.95%, 5/1/11, FGIC | 2,480,411 | ||
5,657,441 | ||||
Minnesota (1.0%) | ||||
3,000,000 | St Paul Minnesota Housing & Redevelopment Authority, Health Care Facilities Revenue, HealthPartners Obligation Group PJ, 5.25%, 5/15/36, Callable 11/15/16 @ 100 | 3,015,090 | ||
Missouri (0.7%) | ||||
2,000,000 | University of Missouri Revenue, Series B, 5.38%, 11/1/16, Callable 11/1/11 @ 100 | 2,113,440 | ||
New York (4.4%) | ||||
2,000,000 | New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series A, 5.80%, 4/1/18, Callable 4/1/10 @ 101, FSA | 2,123,540 | ||
5,165,000 | New York, New York GO, Series J, 5.00%, 6/1/21, Callable 6/1/16 @ 100 | 5,408,633 | ||
5,000,000 | New York, New York GO, Series J, 5.00%, 6/1/24, Callable 6/1/16 @ 100 | 5,213,500 | ||
12,745,673 | ||||
See notes to financial statements.
67
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Ohio (1.8%) | ||||
3,165,000 | Columbus Municipal Airport Authority Revenue, Port Columbus Improvement, | 3,212,886 | ||
795,000 | Hamilton County Sales Tax Revenue, Series B, 5.25%, 12/1/18, Prerefunded | 831,435 | ||
205,000 | Hamilton County Sales Tax Revenue, Series B, 5.25%, 12/1/18, Callable | 213,352 | ||
1,000,000 | Ohio State Building Authority, Adult Correction Facility Revenue, Series A, | 1,062,830 | ||
5,320,503 | ||||
Oregon (2.9%) | ||||
3,100,000 | Clackamas Community College District GO, 5.25%, 6/15/16, Prerefunded 6/15/11 @ 100, FGIC | 3,256,674 | ||
5,000,000 | Portland Sewer System Revenue, Series A, 5.75%, 8/1/18, Prerefunded 8/1/10 @ 100, FGIC | 5,273,500 | ||
8,530,174 | ||||
Puerto Rico (1.3%) | ||||
2,010,000 | Puerto Rico Commonwealth Infrastructure Financing Authority, Series A, 4.66%(b), 7/1/30, FGIC | 688,706 | ||
3,000,000 | Puerto Rico Electric Power Authority Power Revenue, Series TT, 5.00%, 7/1/26, Callable 7/1/17 @ 100 | 3,116,340 | ||
3,805,046 | ||||
Tennessee (0.6%) | ||||
1,600,000 | Shelby County GO, Series B, 5.25%, 8/1/17, Callable | 1,617,776 | ||
Texas (4.0%) | ||||
2,395,000 | Barbers Hill Independent School District GO, 5.00%, 2/15/24, Callable 2/15/15 @ 100, PSF-GTD | 2,486,249 |
Principal Amount ($) | Security | Value ($) | |||
Municipal Bonds, continued | |||||
Texas, continued | |||||
5,275,000 | Galena Park Texas Independent School District, | 2,051,553 | |||
2,345,000 | Grapevine GO, Series A, | 2,434,345 | |||
2,130,000 | Harris County Texas, General Obligation, 4.67%(b), 8/15/23, MBIA | 1,024,104 | |||
2,000,000 | Houston Independent School District GO, Series A, 5.00%, 2/15/24, Callable | 2,076,200 | |||
1,365,000 | New Braunfels GO, 5.00%, 10/1/16, Callable | 1,440,498 | |||
11,512,949 | |||||
Washington (5.2%) | |||||
3,475,000 | Douglas County School District No. 206 Eastmont GO, | 3,594,505 | |||
2,000,000 | Port Seattle Washington Revenue, 5.00%, 2/1/25, Callable | 2,085,720 | |||
1,125,000 | Skagit County Public Hospital District GO, Series B, | 1,210,511 | |||
1,000,000 | Snohomish County GO, 5.70%, 12/1/14, Prerefunded | 1,042,790 | |||
2,880,000 | Snohomish County Limited Tax GO, 5.25%, 12/1/12, Callable 12/1/11 @ 100, MBIA | 3,028,608 | |||
4,000,000 | Washington State GO, Series A, 5.63%, 7/1/19, Prerefunded 7/1/10 @ 100 | 4,197,000 | |||
15,159,134 | |||||
Wisconsin (0.3%) | |||||
1,000,000 | Wisconsin State GO, AMT, 5.00%, 5/1/24, Callable 5/1/16 @ 100, MBIA, | 1,024,840 | |||
Total Investments (Cost $277,937,552) (c)—100.0% | 289,218,738 | ||||
Other assets in excess of liabilities — 0.0% | 78,710 | ||||
Net Assets—100.0% | $ | 289,297,448 | |||
See notes to financial statements.
68
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2007
(a) | Rate periodically changes. Rate disclosed is rate effective on July 31, 2007. |
(b) | Rate represents the effective yield at purchase. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/ depreciation is as follows: |
Unrealized appreciation | $ | 11,654,823 | ||
Unrealized depreciation | (373,637 | ) | ||
Net unrealized appreciation | $ | 11,281,186 | ||
AMBAC—Insured by American Municipal Bond Assurance Corp.
AMT—Subject to alternative minimum tax
CAB—Capital Appreciation Bond
ETM—Escrowed to Maturity
FGIC—Insured by Financial Guaranty Insurance Co.
FHA—Insured by Federal Housing Administration
FSA—Insured by Federal Security Assurance
FSA-CR—Insured by Federal Security Assurance Custodial Receipts
GO—General Obligation
MBIA—Insured by Municipal Bond Insurance Association
PSF-GTD—Insured by Public School Funding Guarantee
XLCA—Insured by XL Capital Assurance
See notes to financial statements.
69
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2007
Principal Amount ($) | Security | Value ($) | |||
Corporate Bonds (21.5%) | |||||
Consumer Discretionary (8.0%) | |||||
1,250,000 | Comcast Corp., 5.45%, 11/15/10 | 1,246,291 | |||
2,000,000 | Daimler Chrysler NA Holding Corp., 5.88%, 3/15/11 | 2,010,032 | |||
690,000 | Lowe’s Companies, Inc., 5.40%, 10/15/16 | 660,185 | |||
1,250,000 | Newell Rubbermaid, Inc., 4.00%, 5/1/10 | 1,212,011 | |||
5,128,519 | |||||
Consumer Staples (0.7%) | |||||
225,000 | Kroger Co., 5.50%, 2/1/13 | 221,134 | |||
250,000 | PepsiCo, Inc., 5.15%, 5/15/12 | 250,245 | |||
471,379 | |||||
Financials (9.5%) | |||||
1,000,000 | Countrywide Financial Corp., 4.50%, 6/15/10 | 954,898 | |||
525,000 | General Electric Capital Corp., 5.72%, 8/22/11, Callable 1/22/09 @ 100 | 527,181 | |||
255,000 | Genworth Financial, Inc., 5.23%, 5/16/09 | 254,857 | |||
1,000,000 | HSBC Finance Corp., 5.50%, 1/19/16 | 952,537 | |||
1,000,000 | MetLife, Inc., 5.00%, 6/15/15 | 950,347 | |||
1,500,000 | Morgan Stanley, 5.63%, 1/9/12 | 1,492,019 | |||
1,000,000 | Toyota Motor Credit Corp., 5.50%, 9/22/11, Callable 9/22/08 @ 100 | 1,000,609 | |||
6,132,448 | |||||
Health Care (1.3%) | |||||
875,000 | Eli Lilly & Co., 5.20%, 3/15/17 | 841,955 | |||
Industrials (0.5%) | |||||
125,000 | ConocoPhillips Canada, 5.30%, 4/15/12 | 124,400 | |||
160,000 | Dominion Resource, Inc., 4.75%, 12/15/10 | 156,727 | |||
281,127 | |||||
Real Estate Investment Trust (1.5%) | |||||
1,000,000 | Simon Property Group LP, 4.88%, 3/18/10 | 986,284 | |||
Total Corporate Bonds (Cost $13,991,325) | 13,841,712 | ||||
| U.S. Government Agency Mortgage-Backed Obligations (20.6%) | ||||
Federal Home Loan Mortgage Corp. (10.7%) | |||||
$ | 622,318 | 5.00%, 1/1/19 | 606,400 | ||
1,235,929 | 4.50%, 4/1/19 | 1,183,477 | |||
1,056,349 | 4.50%, 12/1/19 | 1,009,965 | |||
947,693 | 6.00%, 6/1/21 | 953,568 | |||
1,480,464 | 5.16%(a), 11/1/35 | 1,444,844 | |||
1,604,886 | 6.50%, 9/1/36 | 1,623,502 | |||
6,821,756 | |||||
Federal National Mortgage Assoc. (9.9%) | |||||
587,787 | 5.00%, 5/1/19 | 571,876 | |||
1,741,175 | 6.50%, 6/1/36 | 1,759,231 | |||
4,093,059 | 5.47%, 4/1/37 | 4,060,560 | |||
6,391,667 | |||||
| Total U.S. Government Agency Mortgage-Backed Obligations (Cost $13,235,692) | 13,213,423 | |||
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agencies (52.7%) | ||||
Federal Farm Credit Bank (5.4%) | ||||
79,000 | 5.30% (b), 8/1/07 | 78,989 | ||
200,000 | 6.52%, 9/24/07, MTN | 200,313 | ||
130,000 | 3.61%, 4/15/08 (c) | 128,584 | ||
610,000 | 3.50%, 7/28/08, Callable 8/21/07 @ 100 | 600,991 | ||
200,000 | 3.38%, 3/16/09, Callable 8/21/07 @ 100 | 195,250 | ||
415,000 | 4.25%, 2/22/10, Callable 8/21/07 @ 100 | 407,493 | ||
1,000,000 | 4.70%, 8/11/10 | 987,754 | ||
400,000 | 5.45%, 11/2/10 | 399,276 | ||
500,000 | 5.50%, 1/3/11 | 499,305 | ||
3,497,955 | ||||
Federal Home Loan Bank (40.8%) | ||||
255,000 | 6.50%, 8/15/07 | 255,117 | ||
254,167 | 3.75%, 2/6/08 (d) | 252,207 | ||
1,000,000 | 5.30%, 2/15/08 | 999,972 | ||
250,000 | 3.50%, 4/15/08, Callable 8/20/07 @ 100 | 247,090 | ||
1,000,000 | 6.19%, 5/6/08 | 1,007,431 | ||
275,000 | 5.05%, 5/28/08, Callable 8/28/07 @ 100 | 274,670 | ||
2,650,000 | 5.13%, 8/8/08 | 2,652,237 | ||
100,000 | 4.00%, 2/20/09, Callable 8/20/07 @ 100 | 98,636 | ||
275,000 | 5.25%, 2/27/09, Callable 8/27/07 @ 100 | 274,893 | ||
5,000,000 | 5.50%, 5/1/09, Callable 8/20/07 @ 100 | 4,999,850 | ||
100,000 | 4.00%, 10/30/09, Callable 10/30/07 @ 100 | 97,990 | ||
1,000,000 | 5.00%, 11/3/09 | 1,001,598 | ||
500,000 | 4.38%, 2/2/10, Callable 8/20/07 @ 100 | 492,459 | ||
4,875,000 | 5.00%, 3/12/10 | 4,881,196 | ||
200,000 | 4.20%, 5/7/10 (d) | 195,860 | ||
4,000,000 | 4.88%, 5/14/10 | 3,991,200 | ||
200,000 | 4.00%, 7/30/10, Callable 1/30/08 @ 100 | 194,519 | ||
160,000 | 4.22%, 7/30/10 (d) | 156,458 | ||
200,000 | 4.06%, 8/6/10, Callable 11/6/07 @ 100 | 194,781 | ||
1,750,000 | 4.13%(b), 8/13/10 | 1,708,532 | ||
700,000 | 5.25%, 6/10/11 | 705,161 |
See notes to financial statements.
70
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agencies, continued | ||||
Federal Home Loan Bank, continued | ||||
1,500,000 | 5.63%, 3/5/12 | 1,497,105 | ||
26,178,962 | ||||
Federal Home Loan Mortgage Corp. (6.5%) | ||||
2,650,000 | 5.13%, 10/15/08 | 2,657,741 | ||
1,000,000 | 5.25%, 1/18/11, Callable | 998,572 | ||
550,000 | 4.75%, 3/5/12 | 542,376 | ||
4,198,689 | ||||
Total U.S. Government Agencies (Cost $33,872,918) | 33,875,606 | |||
Principal Amount ($) | Security | Value ($) | |||
U.S. Treasury Obligations (4.0%) | |||||
U.S. Treasury Notes (4.0%) | |||||
20,000 | 2.75%, 8/15/07 | 19,986 | |||
14,000 | 3.00%, 2/15/08 | 13,859 | |||
65,000 | 2.63%, 5/15/08 | 63,888 | |||
75,000 | 3.25%, 8/15/08 | 73,869 | |||
67,000 | 3.13%, 10/15/08 | 65,770 | |||
175,000 | 3.00%, 2/15/09 | 170,776 | |||
300,000 | 3.88%, 5/15/10 | 294,867 | |||
393,000 | 3.63%, 6/15/10 | 383,574 | |||
1,475,000 | 4.88%, 6/30/12 | 1,492,517 | |||
Total U.S. Treasury Obligations (Cost $2,577,666) | 2,579,106 | ||||
Total Investments (Cost $63,677,601) (e)—98.8% | 63,509,847 | ||||
Other assets in excess of liabilities—1.2% | 793,239 | ||||
Net Assets—100.0% | $ | 64,303,086 | |||
(a) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(b) | Rate represents the effective yield at purchase. |
(c) | Security continuously callable with seven days notice. |
(d) | Security continuously callable with five days notice. |
(e) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 127,545 | ||
Unrealized depreciation | (295,299 | ) | ||
Net unrealized depreciation | $ | (167,754 | ) | |
MTN—Medium Term Note
See notes to financial statements.
71
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds (98.2%) | ||||
American Samoa (2.2%) | ||||
1,150,000 | Territory of American Samoa, 6.00%, 9/1/07, ACA | 1,151,810 | ||
Arizona (0.9%) | ||||
500,000 | Vistancia Community Facilities District GO, 4.00%, 7/15/13 | 491,040 | ||
Florida (1.5%) | ||||
780,000 | Highlands County Florida Health Facilities, 5.00%, 11/15/11 | 802,644 | ||
Guam (4.2%) | ||||
860,000 | Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series A, 0.00%(a), 5/15/09, 5.00% effective 11/15/07 | 854,238 | ||
1,350,000 | Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series B, 0.00%(a), 5/15/15, 5.40% effective 11/15/07 | 1,373,760 | ||
2,227,998 | ||||
Hawaii (58.3%) | ||||
2,000,000 | City & County of Honolulu, Hawaii Waste Water, 5.25%, 7/1/18, Callable 7/1/09 @ 101, FGIC | 2,067,020 | ||
610,000 | Hawaii Airport System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM, MBIA, | 658,946 | ||
1,000,000 | Hawaii County GO, Series A, 5.38%, 5/15/13, Prerefunded 5/15/09 @ 101, FSA | 1,037,430 | ||
705,000 | Hawaii County GO, Series B, 5.00%, 7/15/09 | 720,475 | ||
1,000,000 | Hawaii Department of Budget & Finance Special Purpose Revenue, Hawaiian Electric Co., Series B, AMT, 5.75%, 12/1/18, Callable 12/01/09 @ 101, AMBAC, | 1,044,400 | ||
1,000,000 | Hawaii State Airports System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM | 1,078,760 | ||
1,000,000 | Hawaii State GO, Series BW, 6.40% 3/109, ETM, FSA-CR | 1,040,510 | ||
1,000,000 | Hawaii State GO, Series CN, 6.25%, 3/1/08, FGIC | 1,014,230 | ||
1,150,000 | Hawaii State GO, Series CP, 5.50%, 10/1/07, FGIC | 1,153,059 | ||
665,000 | Hawaii State GO, Series CP, 5.00%, 10/1/12, Callable 10/1/07 @ 101, FGIC | 672,807 | ||
1,000,000 | Hawaii State GO, Series CR, 5.25%, 4/1/13, Prerefunded 4/1/08 @ 101, MBIA | 1,019,870 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
1,000,000 | Hawaii State GO, Series CT, 5.25%, 9/1/07, FSA | 1,001,107 | ||
1,000,000 | Hawaii State GO, Series CU, 5.75%, 10/1/10, MBIA | 1,058,120 | ||
1,250,000 | Hawaii State GO, Series CV, 5.50%, 8/1/08, FGIC | 1,271,400 | ||
1,000,000 | Hawaii State GO, Series CZ, 5.25%, 7/1/12, FSA | 1,062,070 | ||
3,700,000 | Hawaii State Go, Series DG, 5.00%, 7/1/09, AMBAC | 3,783,731 | ||
2,105,000 | Hawaii State Harbor System Revenue, Series A, AMT, 4.50%, 1/1/08, | 2,110,578 | ||
1,000,000 | Hawaii State Harbor System Revenue, Series A, 4.50%, 7/1/08, AMBAC | 1,006,800 | ||
750,000 | Hawaii State Highway Revenue, 4.85%, 7/1/09, FSA | 764,918 | ||
1,055,000 | Hawaii State Housing & Community Development Revenue, Series A, 3.70%, 7/1/13, FSA | 1,029,142 | ||
800,000 | Honolulu City & County GO, Series B, 5.25%, 10/1/12, ETM | 851,928 | ||
1,150,000 | Honolulu City & County Waste Water System Revenue, 5.00%, 7/1/09, FGIC | 1,176,024 | ||
1,000,000 | Honolulu City & County Waste Water System Revenue, 5.25%, 7/1/15, Callable | 1,034,630 | ||
1,000,000 | Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable 5/20/10 @ 102, FHA, | 1,058,420 | ||
1,000,000 | State of Hawaii GO, Series DG, 5.00%, 7/1/12, AMBAC | 1,050,980 | ||
1,090,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC | 1,170,333 | ||
30,937,688 | ||||
Illinois (2.0%) | ||||
1,000,000 | Illinois State GO, 5.25%, 8/1/10, MBIA | 1,040,960 | ||
Michigan (4.4%) | ||||
1,500,000 | Michigan State Building Authority Revenue, Series II, 5.00%, 10/15/12, Prerefunded 10/15/07 @ 101 | 1,518,600 | ||
750,000 | Michigan State Hospital Finance Authority Revenue, 5.50%, 11/1/12 | 791,445 | ||
2,310,045 | ||||
See notes to financial statements.
72
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2007
Shares or Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Minnesota (4.9%) | ||||
2,500,000 | Minnesota State GO, 5.00%, 8/1/16, Callable 8/1/12 @ 100 | 2,616,775 | ||
New Jersey (1.9%) | ||||
1,000,000 | New Jersey State Certificate of Participation, 5.00%, 6/15/09 | 1,021,560 | ||
New York (5.8%) | ||||
1,000,000 | New York State Environmental Facilities Corp., Solid Waste Disposal Revenue, Series A, 4.45%, 7/1/17, Mandatory Put 7/1/09 @ 100 | 998,510 | ||
1,000,000 | New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series B, 5.25%, 4/1/12, AMBAC | 1,061,350 | ||
1,000,000 | New York, New York GO, Series C, 4.25%, 1/1/12 | 1,013,220 | ||
3,073,080 | ||||
Oklahoma (2.6%) | ||||
1,345,000 | Tulsa Oklahoma Individual Authority Educational Facilities Revenue, Series B, 5.00%, 12/1/14, Callable 12/1/08 @ 101 | 1,373,635 | ||
Pennsylvania (2.1%) | ||||
1,030,000 | Philadelphia Water & Wastewater Revenue, Series B, 5.50%, 11/1/11, FGIC | 1,097,980 | ||
Shares or Principal Amount ($) | Security | Value ($) | |||
Municipal Bonds, continued | |||||
Puerto Rico (5.5%) | |||||
1,200,000 | Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, 6.25%, 7/1/13, MBIA | 1,350,912 | |||
500,000 | Puerto Rico Commonwealth Highway & Transportation Authority Revenue, Series D, 5.75%, 7/1/41, Prerefunded 7/1/12 @ 100 | 543,290 | |||
1,000,000 | University Puerto Rico University Revenue, Series P, 5.00%, 6/1/12 | 1,039,450 | |||
2,933,652 | |||||
Utah (1.9%) | |||||
1,000,000 | Utah State Board of Regents Student Loan Revenue, Series N, AMT, 5.90%, 11/1/07, AMBAC | 1,005,220 | |||
Total Municipal Bonds (Cost $52,031,612) | 52,084,087 | ||||
Investment Companies (0.8%) | |||||
427,180 | Dreyfus Tax Exempt Cash Management Fund, Institutional Class, 3.43% (b) | 427,180 | |||
Total Investment Companies (Cost $427,180) | 427,180 | ||||
Total Investments (Cost $52,458,792) (c)—99.0% | 52,511,267 | ||||
Other assets in excess of liabilities—1.0% | 508,958 | ||||
Net Assets—100.0% | $ | 53,020,225 | |||
(a) | Rate periodically changes. Rate disclosed is rate effective on July 31, 2007. |
(b) | Rate changes periodically. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 157,650 | ||
Unrealized depreciation | (105,175 | ) | ||
Net unrealized appreciation | $ | 52,475 | ||
ACA—Insured by American Capital Access
AMBAC—Insured by American Municipal Bond Assurance Corp.
AMT—Subject to alternative minimum tax
CAB—Capital Appreciation Bond
ETM—Escrowed to Maturity
FGIC—Insured by Financial Guaranty Insurance Co.
FHA—Insured by Federal Housing Administration
FSA—Insured by Federal Security Assurance
FSA-CR—Insured by Federal Security Assurance Custodial Receipts
GO—General Obligation
MBIA—Insured by Municipal Bond Insurance Association
See notes to financial statements.
73
PACIFIC CAPITAL FUNDS
U.S. Government Short Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2007
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agencies (96.8%) | ||||
Federal Farm Credit Bank (5.9%) | ||||
29,000 | 5.34% (a), 11/20/07 | 28,548 | ||
1,480,000 | 4.60%, 8/8/08, Callable 8/23/07 @ 100 | 1,472,702 | ||
3,800,000 | 5.20%, 8/16/11 | 3,818,141 | ||
5,319,391 | ||||
Federal Home Loan Bank (90.9%) | ||||
90,000 | 6.20%, 10/10/07 | 90,140 | ||
100,000 | 3.02%, 11/6/07, Callable 8/06/07 @ 100 | 99,420 | ||
1,630,000 | 5.00%, 11/23/07, Callable 8/23/07 @ 100 | 1,628,365 | ||
4,000,000 | 5.05%, 12/14/07, Callable 9/14/07 @ 100 | 3,996,200 | ||
1,950,000 | 5.00%, 12/17/07, Callable 9/17/07 @ 100 | 1,947,715 | ||
1,375,000 | 5.00%, 1/28/08, Callable 10/28/07 @ 100 | 1,372,944 | ||
1,000,000 | 5.30%, 2/15/08 | 999,972 | ||
10,000 | 4.00%, 2/22/08, Callable 8/22/07 @ 100 | 9,931 | ||
1,500,000 | 4.61%, 2/28/08, Callable 8/28/07 @ 100 | 1,494,493 | ||
1,000,000 | 5.10%, 3/6/08 | 999,094 | ||
1,185,000 | 4.25%, 4/21/08, Callable 10/21/07 @ 100 | 1,176,823 | ||
3,875,000 | 5.13%, 8/8/08 | 3,878,270 | ||
4,000,000 | 5.13%, 11/28/08, Callable 11/28/07 @ 100 | 3,997,332 | ||
8,000,000 | 5.00%, 2/20/09 | 8,012,024 | ||
1,000,000 | 5.13%(b), 3/2/09, Callable 8/21/07 @ 100 | 998,952 |
Principal Amount ($) | Security | Value ($) | |||
U.S. Government Agencies, continued | |||||
Federal Home Loan Bank, continued | |||||
7,650,000 | 5.50%, 5/4/09, Callable 8/21/07 @ 100 | 7,649,702 | |||
2,625,000 | 5.25%, 6/11/09, Callable 6/11/08 @ 100 | 2,623,572 | |||
3,825,000 | 5.25%, 8/5/09 | 3,849,901 | |||
5,875,000 | 5.25%, 11/13/09, Callable 11/14/07 @ 100 | 5,874,125 | |||
4,000,000 | 5.00%, 3/12/10 | 4,005,084 | |||
2,500,000 | 4.38%, 3/17/10 | 2,466,955 | |||
4,855,000 | 5.50%, 7/30/10, Callable 10/30/07 @ 100 | 4,851,616 | |||
4,650,000 | 4.38%, 9/17/10 | 4,569,513 | |||
1,985,000 | 4.85%, 2/4/11 | 1,976,326 | |||
4,000,000 | 4.63%, 2/18/11 | 3,952,648 | |||
5,450,000 | 5.25%, 6/10/11 | 5,490,183 | |||
2,000,000 | 5.60%, 6/28/11 | 2,039,020 | |||
750,000 | 5.38%, 8/19/11 | 758,626 | |||
1,000,000 | 4.88%, 11/18/11 | 992,708 | |||
81,801,654 | |||||
Total U.S. Government Agencies (Cost $87,048,331) | 87,121,045 | ||||
U.S. Treasury Obligation (1.8%) | |||||
U.S. Treasury Notes (1.8%) | |||||
1,650,000 | 4.50%, 4/30/09 | 1,647,423 | |||
Total U.S. Treasury Obligation (Cost $1,639,830) | 1,647,423 | ||||
Total Investments (Cost $88,688,161) (c)—98.6% | 88,768,468 | ||||
Other assets in excess of liabilities—1.4% | 1,255,544 | ||||
Net Assets—100.0% | $ | 90,024,012 | |||
(a) | Rate disclosed represents effective yield at purchase. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2007. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 193,034 | ||
Unrealized depreciation | (112,727 | ) | ||
Net unrealized appreciation | $ | 80,307 | ||
See notes to financial statements.
74
PACIFIC CAPITAL FUNDS
Notes to Financial Statements
July 31, 2007
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 (collectively, the “Funds” and individually, a “Fund”): New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, Value Fund, High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund. The Trust is authorized to issue an unlimited number of shares without par value in four classes of shares: Class A, Class B, Class C and Class Y. The sale of Class B Shares has been suspended since June 1, 2003 (except for reinvestment of dividends and exchanges of Class B Shares between Funds).
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under distribution (12b-1) plans, voting rights on matters affecting a single class of shares, sales charges, and exchange privileges. The Class A Shares of the New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, and Value Fund have a maximum sales charge on purchases of 5.25% of the purchase price; the Class A Shares of the High Grade Core Fixed Income Fund and Tax-Free Securities Fund have a maximum sales charge on purchases of 4.00% of the purchase price; and the Class A Shares of the High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund, and U.S. Government Short Fixed Income Fund have a maximum sales charge on purchases of 2.25% of the purchase price. The Class B Shares have a contingent deferred sales charge (“CDSC”) of 5.00% as a percentage of original purchase price or sale price (whichever is less) if redeemed before the sixth anniversary of purchase, declining from 5.00% within the first year to 0% after the sixth year. The Class C Shares have a CDSC of 1.00% as a percentage of the original purchase price if redeemed within twelve months of purchase.
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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 in securities, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which are valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available mean of the bid and asked quotations in the principal market in which such securities are normally traded. Investments in securities in which the principal market is not an exchange or an over-the-counter market are valued using an independent pricing service approved by the Board of Trustees. Such prices reflect fair values, which may be established through the use of electronic and matrix techniques. Short-term obligations that mature in 60 days or less are valued at amortized cost or original cost plus interest, which approximates fair value. Investments in open-end investment companies are valued at their respective net asset values as reported by such companies. The differences between cost and fair values of investments are reflected as either unrealized appreciation or depreciation.
75
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, continued
July 31, 2007
In cases where market prices for portfolio securities are not readily available, a Pricing Committee established and appointed by the Trust’s Board of Trustees determines in good faith, subject to Trust procedures, the fair value of such portfolio securities. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net asset value is calculated, such securities may be valued at fair value in accordance with procedures adopted by the Board of Trustees. In the event of an increase or decrease in the value of a designated benchmark index greater than predetermined levels, the New Asia Growth Fund and International Stock Fund may use a systematic valuation model provided by an independent third party to fair value their international equity securities.
Foreign Currency Transactions:
The accounting records of the Trust are maintained in U.S. dollars. Investment securities and other assets and liabilities of a 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 rates on the date of the transactions.
The Funds do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such changes are included with the net realized and unrealized gain or loss from investments and foreign currency transactions.
Reported net realized foreign currency 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.
Foreign Currency Contracts:
The New Asia Growth Fund and International Stock Fund may enter into foreign currency exchange contracts to convert U.S. dollars to and from various foreign currencies. A foreign currency 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 Funds do 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 Funds’ foreign currency contracts might be considered spot (typically a contract of one week or less) contracts or forward (contract term over one week) contracts. A spot contract is 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., the Funds do not enter into such contracts for the purpose of earning foreign currency gains). Each foreign currency exchange contract is 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.
Futures Contracts:
Each of the Funds (other than the U.S. Government Short Fixed Income Fund) may enter into contracts for the future delivery of specific securities, classes of securities, and financial indices; may purchase or sell exchange-listed or OTC
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options on any such futures contracts; and may engage in related closing transactions. A financial futures contract is an agreement to purchase or sell an agreed amount of securities or currency at a set price for delivery in the future. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. The acquisition of put and call options on futures contracts will, respectively, give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period.
The Small Cap Fund has entered into futures contracts for hedging purposes, such as to protect against anticipated declines in the fair value of its portfolio securities or to manage exposure to changing interest rates. The Fund receives from or pays to the broker, on a daily basis, an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as “variation margin”, and are recorded by the Fund as unrealized gains or losses. When a futures contract closes, the Fund records a realized gain or loss 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.
Restricted Securities:
A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”), or pursuant to the resale limitations provided by Rule 144A under the 1933 Act or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board of Trustees. Not all restricted securities are considered illiquid. At July 31, 2007, the International Stock Fund and Small Cap Fund held restricted securities representing 0.8% and 0.8% of net assets, respectively. The restricted securities held as of July 31, 2007 are identified below:
Issue Description | Acquisition Date | Shares | Cost ($) | Value ($) | ||||
International Stock Fund: | ||||||||
Evraz Group SA, GDR | * | 42,675 | 1,084,602 | 2,078,272 | ||||
Small Cap Fund: | ||||||||
Castlepoint Holdings Ltd.(a) | 3/27/06 | 267,400 | 2,674,000 | 3,329,130 | ||||
JER Investors Trust, Inc.(a) | ** | 76,700 | 1,150,500 | 841,399 |
* | Purchased on various dates beginning 4/25/06. |
** | Purchased on various dates beginning 8/29/05. |
(a) | Determined to be illiquid based upon procedures approved by the Board of Trustees and combined represents 0.8% of net assets. |
Security Transactions and Related Income:
During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the pro rata amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. 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.
Allocations:
Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis.
Income, expenses (other than expenses attributable to a specific share class) and realized/unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.
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Distributions to Shareholders:
Dividends from net investment income are declared daily and paid monthly for the High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund. Dividends from net investment income are declared and paid quarterly for the New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, and Value Fund. Distributable net realized capital gains, if any, are declared and distributed at least annually for all the Funds.
Redemption Fees:
The New Asia Growth Fund and International Stock Fund may impose a redemption fee. This fee can be assessed on redemptions and exchanges of Fund shares within 90 days from the date the Fund shares were acquired. On July 11, 2007, the Board of Trustees approved a change to 30 days from the date the Fund shares were acquired which will become effective on or about October 16, 2007. For financial statement purposes, these amounts are included in the Statements of Changes in Net Assets in “Proceeds from Shares Issued”. Redemption fees collected for the Funds for the years ended July 31, 2007 and July 31, 2006 were as follows:
Year Ended 07/31/07 ($) | Year Ended 07/31/06 ($) | |||
New Asia Growth Fund | 375 | 1,254 | ||
International Stock Fund | 813 | 594 |
New Accounting Pronouncements:
In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by the applicable tax authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required no later than the last business day of the first financial reporting date which occurs during the fiscal year beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Accordingly, the Funds are required to implement FIN 48 in their net asset value per share calculations as of January 31, 2008. Management has not completed its analysis on whether the adoption of FIN 48 will have an impact to the financial statements once adopted.
In September 2006, FASB issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurements. Management does not believe that the adoption of SFAS No. 157 will materially impact the Funds’ financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
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3. | Purchases and Sales of Securities |
Purchases and sales of securities (excluding securities maturing less than one year from acquisition and U.S. Government securities) for the year ended July 31, 2007 were as follows:
Purchases ($) | Sales ($) | |||
New Asia Growth Fund | 36,188,987 | 46,584,248 | ||
International Stock Fund | 104,893,218 | 121,541,992 | ||
Small Cap Fund | 871,515,808 | 796,432,496 | ||
Mid-Cap Fund | 75,934,046 | 87,560,068 | ||
Growth Stock Fund | 305,496,265 | 315,772,505 | ||
Growth and Income Fund | 278,403,844 | 303,265,389 |
Purchases ($) | Sales ($) | |||
Value Fund | 301,192,875 | 322,064,828 | ||
High Grade Core Fixed Income Fund | 61,093,442 | 64,666,674 | ||
Tax-Free Securities Fund | 57,040,137 | 57,986,674 | ||
High Grade Short Intermediate Fixed Income Fund | 13,962,672 | — | ||
Tax-Free Short Intermediate Securities Fund | 37,169,260 | 44,240,522 |
Purchases and sales of long-term U.S. Government securities for the year ended July 31, 2007 were as follows:
Purchases ($) | Sales ($) | |||
High Grade Core Fixed Income Fund | 173,407,223 | 140,024,322 | ||
High Grade Short Intermediate Fixed Income Fund | 41,374,447 | 54,039,011 | ||
Tax-Free Short Intermediate Securities Fund | 1,998,035 | 3,974,570 | ||
U.S. Government Short Fixed Income Fund | 71,086,300 | 80,338,240 |
4. | Transactions with Affiliates |
Investment advisory services are provided to the Trust by the Asset Management Group of Bank of Hawaii (the “Adviser”). Under terms of an advisory agreement, each Fund is charged an annual fee, which is computed daily and paid monthly based upon average daily net assets. Fee rates for the year ended July 31, 2007 were as follows:
Maximum Annual Advisory Fee (%) | Net Annual Fees Paid (%) | |||||
New Asia Growth Fund | 0.40 | 0.40 | ||||
International Stock Fund | 0.45 | 0.35 | ||||
Small Cap Fund | 0.46 | 0.36 | (1) | |||
Mid-Cap Fund | 0.60 | 0.22 | ||||
Growth Stock Fund | 0.55 | (2) | 0.76 | |||
Growth and Income Fund | 0.55 | (2) | 0.76 | |||
Value Fund | 0.55 | (2) | 0.76 | |||
High Grade Core Fixed Income Fund | 0.60 | 0.45 | ||||
Tax-Free Securities Fund | 0.60 | 0.45 | ||||
High Grade Short Intermediate Fixed Income Fund | 0.50 | 0.21 | ||||
Tax-Free Short Intermediate Securities Fund | 0.50 | 0.40 | ||||
U.S. Government Short Fixed Income Fund | 0.40 | 0.12 |
(1) | The Adviser has voluntarily agreed to waive a portion of its fees so that the total combined advisory and sub-advisory fees will not exceed 1.00%. |
(2) | Prior to June 29, 2007, the Advisory fee was 0.80%. |
The Adviser has voluntarily agreed to waive a portion of its fees. Fee waivers are voluntary and may be terminated at any time.
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July 31, 2007
The following Funds have entered into Sub-Advisory contracts as listed below. Under the terms of each Sub-Advisory agreement, the Funds are charged the following annual fees by the Sub-Adviser based upon average daily net assets which are computed daily and paid quarterly:
Sub-Adviser | Annual Fees Paid | |||
New Asia Growth Fund | First State Investments International Limited | 0.50% | ||
International Stock Fund | Hansberger Global Investors, Inc. | 0.60% of the first $75 million; 0.35% in excess of $75 million | ||
Small Cap Fund | Mellon Equity Associates, LLP | 0.55% of the first $100 million; 0.50% on assets between $100 million and $200 million; 0.45% on assets in excess of $200 million (1) | ||
Nicholas-Applegate Capital Management | 0.70% (2) | |||
Wellington Management Company, LLP | 0.70% of the first $150 million; 0.65% on assets in excess of $150 million (3) | |||
Mid-Cap Fund | Chicago Equity Partners, LLC (4) | 0.20% | ||
Growth Stock Fund | Chicago Equity Partners, LLC (5) | 0.25% | ||
Growth and Income Fund | Chicago Equity Partners, LLC (5) | 0.25% | ||
Value Fund | Chicago Equity Partners, LLC (5) | 0.25% |
(1) | On assets managed by Mellon Equity Associates, LLP using a “small cap value” strategy. Prior to June 26, 2007, Nicholas-Applegate Capital Management managed these assets and received 0.60% of the first $50 million; 0.55% on assets in excess of $50 million. |
(2) | On assets managed by Nicholas-Applegate Capital Management using “systematic small cap” strategy. |
(3) | On assets managed by Wellington Management Company, LLP using “small cap growth” strategy. |
(4) | Prior to October 10, 2006, Bankoh Investment Partners, LLC, a joint venture between Bank of Hawaii and Chicago Equity Partners, LLC acted as Sub-Adviser to the Fund and received the same fees as listed in the table. |
(5) | Chicago Equity Partners, LLC became Sub-Adviser effective June 29, 2007. Prior to that date, the Fund did not have a Sub-Adviser. |
Bank of Hawaii (the “Administrator”) acts as Administrator of the Trust and receives 0.04% of the average daily net assets of the Trust for this service.
BISYS Fund Services Ohio, Inc. (“BISYS”), a wholly owned subsidiary of The BISYS Group, Inc., serves the Trust as Sub-Administrator pursuant to an agreement among the Trust, the Administrator, and BISYS. BISYS receives fees from the Trust of 0.05% of the average daily net assets of the Trust, subject to reduction if certain standards are not met, and $10,000 annually for providing additional legal services, plus out-of-pocket expenses.
In addition, BISYS provides an employee to serve as Chief Compliance Officer for the Trust and perform certain related services. BISYS receives a fee for this service and reimbursement for certain out-of-pocket expenses.
BISYS also serves the Trust as Fund Accountant and Transfer Agent. Under the terms of the fund accounting and transfer agency agreements, BISYS is entitled to receive fees, subject to reduction if certain standards are not met, and reimbursement for certain out-of-pocket expenses.
Effective August 1, 2007, BISYS’ parent company, BISYS Group, Inc., was acquired by Citibank N.A.
BISYS Fund Services Limited Partnership (the “Distributor”), also a wholly owned subsidiary of The BISYS Group, Inc., serves the Trust as principal underwriter and distributor. The Trust has adopted for the Class A, Class B and Class C
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July 31, 2007
Shares of the Funds the Class A Distribution Plan, Class B Distribution Plan and Class C Distribution Plan (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plans, each Fund pays the Distributor a fee which will not exceed on an annual basis, 0.40%, 1.00% and 1.00%, respectively, of the average daily net assets attributable to the Class A, Class B and Class C Shares of the Fund. The Distributor is contractually limiting the 12b-1 fee for Class A Shares to 0.25% through November 30, 2007. These fees are for payments the Distributor makes to banks, other institutions, and broker dealers, including the Administrator or its affiliates, and for expenses the Distributor and any of its affiliates or subsidiaries incur for providing distribution or shareholder service assistance. The following table shows amounts received by the Distributor on commissions from sales and the amounts paid to affiliated broker dealers of the Funds during the year ended July 31, 2007:
Received ($) | Paid to Affiliates ($) | |||
Class A | 325,623 | 5,447 | ||
Class C | 123,807 | 1,465 |
Effective August 1, 2007, Foreside Distribution Services, L.P. serves as Distributor to the Funds.
Certain Officers and Trustees of the Trust are affiliated with the Administrator, the Adviser, BISYS or the Distributor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles. Each of the five Independent Trustees receives a fee for his services plus the reimbursement of certain expenses incurred.
The Adviser has entered into a reimbursement agreement with the Funds in which it agrees to reimburse the Funds for certain fees charged by various intermediaries. The intermediaries, such as broker-dealers, banks, retirement plan administrators or other institutions, make one or more Funds available to their customers in accordance with relevant Intermediary Agreements and provide certain recordkeeping, processing and/or administrative services. This agreement can be terminated by the Adviser with 60 days’ written notice. The reimbursements made by the Adviser may not be recouped in future periods.
During the year ended July 31, 2006, the Adviser reimbursed the Growth Stock Fund and Value Fund $3,093 and $3,762, respectively, for commissions incurred on a security transaction that was intended to be a transfer of securities between the Funds under Rule 17a-7, but was inadvertently traded via a broker. These amounts are included in the line item “Net realized gains (losses) from investments and reimbursement from affiliates” on the Statements of Changes in Net Assets. The impact to both Funds was less than $0.005 per share.
Also during the year ended July 31, 2006, Nicholas-Applegate Capital Management reimbursed the Small Cap Fund $38,757 for losses incurred in the disposal of investments held in violation of the Fund’s investment restrictions. The amount is included on the line item “Net realized gains from investments, futures and foreign currency transactions and reimbursement from affiliates of realized losses on the disposal of investments in violation of restrictions” on the Statements of Changes in Net Assets. The impact to the Fund was less than $0.005 per share.
5. | Risks |
The New Asia Growth Fund, International Stock Fund, and Small Cap Fund may invest in securities of foreign issuers in various countries. Investing on an international basis involves certain risks not involved in domestic investments, including fluctuations in foreign exchange rates, future adverse political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws or restrictions. In addition, with respect to certain foreign countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability, and/or diplomatic developments which could affect investments in those countries. Moreover, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rates of inflation, capital reinvestment, resources, self-sufficiency and balance of payments position. Certain foreign investments may also be subject to foreign withholding taxes.
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July 31, 2007
The New Asia Growth Fund’s concentration of investments in securities of issuers located in the Far East Asia region may subject the Fund to the effects of economic and government policies within that region.
The Tax-Free Securities and Tax-Free Short Intermediate Securities Funds’ concentration of investments in securities of issuers located in Hawaii may subject each Fund to the effects of economic developments and government policies within Hawaii.
6. | Federal Income Tax Information |
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 each applicable country’s tax rules and rates.
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 GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., paydown reclasses and foreign currency transactions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification.
The tax character of distributions paid to shareholders during the year ended July 31, 2007 were as follows (amounts in thousands):
Ordinary Income($) | Net Long-Term Capital Gains($) | Total Taxable Distributions($) | Return of Capital | Tax Exempt Distributions($) | Total Distributions Paid($)* | |||||||
New Asia Growth Fund | 2,322 | 7,883 | 10,205 | — | — | 10,205 | ||||||
International Stock Fund | 2,517 | 98 | 2,615 | — | — | 2,615 | ||||||
Small Cap Fund | 17,848 | 15,839 | 33,687 | — | — | 33,687 | ||||||
Mid-Cap Fund | 1,254 | 7,155 | 8,409 | — | — | 8,409 | ||||||
Growth Stock Fund | 217 | — | 217 | — | — | 217 | ||||||
Growth and Income Fund | 1,205 | 28 | 1,233 | — | — | 1,233 | ||||||
Value Fund | 2,637 | 19,141 | 21,778 | — | — | 21,778 | ||||||
High Grade Core Fixed Income Fund | 15,170 | — | 15,170 | 13 | — | 15,183 | ||||||
Tax-Free Securities Fund | 418 | 272 | 690 | — | 12,294 | 12,984 | ||||||
High Grade Short Intermediate Fixed Income Fund | 2,973 | — | 2,973 | — | — | 2,973 | ||||||
Tax-Free Short Intermediate Securities Fund | 122 | — | 122 | — | 1,893 | 2,015 | ||||||
U.S. Government Short Fixed Income Fund | 4,389 | — | 4,389 | — | — | 4,389 |
* | Total distributions paid differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid. |
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July 31, 2007
The tax character of distributions paid to shareholders during the year ended July 31, 2006 were as follows (amounts in thousands):
Ordinary Income($) | Net Long-Term Capital Gains($) | Total Taxable Distributions($) | Tax Exempt Distributions($) | Total Distributions Paid($)* | ||||||
New Asia Growth Fund | 653 | 2,618 | 3,271 | — | 3,271 | |||||
International Stock Fund | 1,786 | — | 1,786 | — | 1,786 | |||||
Small Cap Fund | 5,368 | 14,808 | 20,176 | — | 20,176 | |||||
Mid-Cap Fund | 2,202 | 2,495 | 4,697 | — | 4,697 | |||||
Growth and Income Fund | 801 | — | 801 | — | 801 | |||||
Value Fund | 1,921 | — | 1,921 | — | 1,921 | |||||
High Grade Core Fixed Income Fund | 12,913 | 46 | 12,959 | — | 12,959 | |||||
Tax-Free Securities Fund | 283 | 3,961 | 4,244 | 12,703 | 16,947 | |||||
High Grade Short Intermediate Fixed Income Fund | 2,795 | — | 2,795 | — | 2,795 | |||||
Tax-Free Short Intermediate Securities Fund | 371 | — | 371 | 1,717 | 2,088 | |||||
U.S. Government Short Fixed Income Fund | 4,091 | — | 4,091 | — | 4,091 |
* | Total distributions paid differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid. |
As of July 31, 2007, the components of accumulated earnings/(deficit) on a tax basis were as follows (amounts in thousands):
Undistributed | Accumulated | Distributions | Accumulated | Unrealized | Total | |||||||||||||
Ordinary Income($) | Long-Term Capital Gain($) | |||||||||||||||||
New Asia Growth Fund | 3,221 | 6,105 | 9,326 | — | (15 | ) | 36,528 | 45,839 | ||||||||||
International Stock Fund | — | 12,692 | 12,692 | — | (158 | ) | 45,137 | 57,671 | ||||||||||
Small Cap Fund | 33,241 | 39,837 | 73,078 | — | — | (11,534 | ) | 61,544 | ||||||||||
Mid-Cap Fund | 1,841 | 5,803 | 7,644 | — | — | 3,539 | 11,183 | |||||||||||
Growth Stock Fund | 16 | — | 16 | — | (76,835 | ) | 2,625 | (74,194 | ) | |||||||||
Growth and Income Fund | — | 7,925 | 7,925 | — | — | 1,047 | 8,972 | |||||||||||
Value Fund | 16,899 | 7,045 | 23,944 | — | — | 3,525 | 27,469 | |||||||||||
High Grade Core Fixed Income Fund | — | — | — | (41 | ) | (4,145 | ) | (412 | ) | (4,598 | ) | |||||||
High Grade Short Intermediate Fixed Income Fund | 1 | — | 1 | (8 | ) | (2,298 | ) | (168 | ) | (2,473 | ) | |||||||
U.S. Government Short Fixed Income Fund | 11 | — | 11 | (11 | ) | (2,865 | ) | 80 | (2,785 | ) |
** | The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies and return of capital adjustments. |
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July 31, 2007
Undistributed | Accumulated | Distributions | Accumulated | Unrealized | Total | ||||||||||||||
Tax-Exempt Income($) | Ordinary Income($) | Long-Term Capital Gain($) | |||||||||||||||||
Tax-Free Securities Fund | 36 | 92 | 189 | 317 | (36 | ) | — | 11,281 | 11,562 | ||||||||||
Tax-Free Short Intermediate Securities Fund | 6 | — | — | 6 | (5 | ) | (763 | ) | 52 | (710 | ) |
As of the latest tax year end of July 31, 2007, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.
Expires | ||||||||||
2011 ($) | 2012 ($) | 2013 ($) | 2014 ($) | 2015 ($) | ||||||
Growth Stock Fund | 76,835,141 | — | — | — | — | |||||
High Grade Core Fixed Income Fund | — | — | — | 95,740 | 4,049,578 | |||||
High Grade Short Intermediate Fixed Income Fund | — | — | 55,178 | 605,203 | 1,571,661 | |||||
Tax-Free Short Intermediate Securities Fund | — | — | 14,258 | 18,908 | 657,223 | |||||
U.S. Government Short Fixed Income Fund | — | 32,741 | 1,268,106 | 889,880 | 668,108 |
During the year ended July 31, 2007, the International Stock Fund, Growth Stock Fund and Growth and Income Fund utilized $12,145, $13,688 and $11,592 in capital loss carryforwards (in thousands), respectively.
Under current tax law, capital and foreign currency losses realized after October 31 may be deferred and treated as occurring on the first business day of the following fiscal year. The following Funds have deferred losses, which will be treated as arising on the first day of the fiscal year to end July 31, 2008:
Post-October Capital Losses ($) | Post-October Foreign Currency Losses ($) | |||
New Asia Growth Fund | — | 14,802 | ||
International Stock Fund | — | 157,511 | ||
High Grade Short Intermediate Fixed Income Fund | 65,889 | — | ||
Tax-Free Short Intermediate Securities Fund | 72,563 | — | ||
U.S. Government Short Fixed Income Fund | 6,638 | — |
7. | Legal and Regulatory Matters |
Management of the Funds has reported to the Funds’ Board of Trustees (the “Board”) that, like many U.S. financial services companies, the Funds and certain of its affiliates have from time to time received formal requests for information from various governmental and self-regulatory agencies in connection with investigations related to mutual funds. Management has advised the Board that the Funds and their affiliates have cooperated fully with each request.
Management of the Funds previously reported to the Board that each of the Funds, the Asset Management Group of Bank of Hawaii, the Adviser’s parent company, and four present or former officers of the Adviser had received letters from a member of the staff of the Pacific Regional Office of the Securities and Exchange Commission (the “SEC”) indicating that the staff intended to recommend to the SEC institution of a civil enforcement action against the recipients related to the SEC’s investigation of alleged market timing and/or excessive trading in shares of the Funds by a former shareholder of the Funds who was at the time an employee of the Adviser. In December 2005, the SEC informed the Funds and other recipients that its investigation into the matter had been terminated and no enforcement action had been recommended.
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Notes to Financial Statements, continued
July 31, 2007
The Adviser directly reimbursed those shareholders of the Funds who incurred traceable losses above a de minimis amount resulting from the former employee’s trading activity. Each pension or employee benefit plan was treated as a single shareholder for purposes of applying the de minimis threshold. In addition, the Adviser reimbursed the Funds in the amount of $33,137 during the year ended July 31, 2006. The following is a breakout by Fund of the $33,137 reimbursement. These amounts are included in the line item “Net realized gains from investments, futures and foreign currency transactions and reimbursement from affiliates of realized losses on the disposal of investments in violation of restrictions” or “Net realized gains (losses) from investments and reimbursement from affiliates” on the Statements of Changes in Net Assets. The impact for all Funds is less than $0.005 per share and the Adviser believes the matter is now fully resolved.
New Asia Growth Fund | $ | 22,564 | |
Small Cap Fund | 4,377 | ||
Growth Stock Fund | 3,920 | ||
High Grade Short Intermediate Fixed Income Fund | 2,276 |
In addition, BISYS Fund Services, Inc., certain affiliates of which provide various services to the Trust as described in footnote 4, has reached a settlement with the SEC regarding the SEC’s investigation related to its past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Fund management has not determined the degree, if any, to which the Funds are affected by the settlement. Based on management’s review and consideration of the matter to date, management does not believe the Funds’ financial statements would be adversely impacted as a result of this investigation.
8. | Special Meeting of Shareholders (unaudited) |
On September 26, 2006, a Special Meeting of the Shareholders of the Mid-Cap Fund was held. The purpose of the meeting was to seek shareholder approval of a Sub-Advisory Agreement for the Mid-Cap Fund with a new sub-adviser, Chicago Equity Partners, LLC. The number of shares voted is as follows:
No. of Shares | % of Shares Voted | |||
AFFIRMATIVE: | 4,872,762 | 99.934 | ||
AGAINST: | 1,374 | 0.029 | ||
ABSTAIN: | 1,825 | 0.037 | ||
TOTAL: | 4,875,961 | 100.000 |
On April 24, 2007, a Special Meeting of the Shareholders of the International Stock Fund and Mid-Cap Fund was held. A description of the proposals and the number of shares voted is as follows:
1. | To approve a new sub-advisory agreement for the International Stock Fund with Hansberger Global Investors, Inc. |
No. of Shares | % of Shares Voted | |||
AFFIRMATIVE: | 15,084,475 | 99.897 | ||
AGAINST: | 2,512 | 0.017 | ||
ABSTAIN: | 13,055 | 0.086 | ||
TOTAL: | 15,100,042 | 100.000 |
85
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, concluded
July 31, 2007
2. | To approve a new sub-advisory agreement for the Mid-Cap Fund with Chicago Equity Partners, LLC. |
No. of Shares | % of Shares Voted | |||
AFFIRMATIVE: | 4,492,399 | 99.828 | ||
AGAINST: | 1,854 | 0.042 | ||
ABSTAIN: | 5,868 | 0.130 | ||
TOTAL: | 4,500,121 | 100.000 |
On June 8, 2007, a Special Meeting of the Shareholders of the Growth Stock Fund, Growth and Income Fund and Value Fund was held. The purpose of the meeting was to seek shareholder approval of a sub-advisory agreement for the Growth Stock Fund, the Growth and Income Fund and the Value Fund with Chicago Equity Partners, LLC. The number of shares voted is as follows:
Growth Stock Fund | No. of Shares | % of Shares Voted | ||
AFFIRMATIVE: | 11,952,857 | 99.790 | ||
AGAINST: | 5,716 | 0.048 | ||
ABSTAIN: | 19,445 | 0.162 | ||
TOTAL: | 11,978,018 | 100.000 |
Growth and Income Fund | No. of Shares | % of Shares Voted | ||
AFFIRMATIVE: | 7,529,577 | 99.846 | ||
AGAINST: | 1,781 | 0.024 | ||
ABSTAIN: | 9,800 | 0.130 | ||
TOTAL: | 7,541,158 | 100.000 |
Value Fund | No. of Voted | % of Shares Shares | ||
AFFIRMATIVE: | 11,326,405 | 99.863 | ||
AGAINST: | 2,678 | 0.024 | ||
ABSTAIN: | 12,823 | 0.113 | ||
TOTAL: | 11,341,906 | 100.000 |
86
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains on Investments and Foreign Currency Transactions | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 16.84 | $ | 0.22 | $ | 7.05 | $ | 7.27 | $ | (0.22 | ) | $ | (1.83 | ) | $ | (2.05 | ) | $ | 22.06 | 46.07 | % | $ | 3,207 | 1.62 | % | 1.14 | % | 1.77 | % | 37.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 15.52 | 0.10 | 2.12 | 2.22 | (0.10 | ) | (0.80 | ) | (0.90 | ) | 16.84 | 15.00 | 2,157 | 1.76 | 0.64 | 2.08 | 44.10 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.46 | 0.11 | (f) | 4.07 | (f) | 4.18 | (0.12 | ) | — | (0.12 | ) | 15.52 | 36.68 | 1,770 | 1.96 | 0.84 | 2.48 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.77 | 0.08 | 1.68 | 1.76 | (0.07 | ) | — | (0.07 | ) | 11.46 | 17.94 | 1,386 | 1.88 | 0.52 | 2.39 | 78.13 | ||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.83 | 0.02 | (0.07 | ) | (0.05 | ) | (0.01 | ) | — | (0.01 | ) | 9.77 | (0.47 | ) | 1,264 | 2.10 | 0.22 | 2.61 | 110.44 | |||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 16.13 | $ | 0.06 | $ | 6.73 | $ | 6.79 | $ | (0.10 | ) | $ | (1.83 | ) | $ | (1.93 | ) | $ | 20.99 | 44.97 | % | $ | 679 | 2.37 | % | 0.35 | % | 2.37 | % | 37.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 14.97 | — | 2.01 | 2.01 | (0.05 | ) | (0.80 | ) | (0.85 | ) | 16.13 | 14.05 | 639 | 2.51 | (0.04 | ) | 2.57 | 44.10 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.09 | 0.01 | (f) | 3.93 | (f) | 3.94 | (0.06 | ) | — | (0.06 | ) | 14.97 | 35.66 | 446 | 2.71 | 0.09 | 2.73 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.48 | (0.02 | ) | 1.65 | 1.63 | (0.02 | ) | — | (0.02 | ) | 11.09 | 17.18 | 369 | 2.64 | (0.23 | ) | 2.65 | 78.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.60 | (0.04 | ) | (0.08 | ) | (0.12 | ) | — | — | — | 9.48 | (1.25 | ) | 424 | 2.85 | (0.51 | ) | 2.86 | 110.44 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 16.12 | $ | 0.07 | $ | 6.72 | $ | 6.79 | $ | (0.11 | ) | $ | (1.83 | ) | $ | (1.94 | ) | $ | 20.97 | 44.96 | % | $ | 580 | 2.37 | % | 0.37 | % | 2.37 | % | 37.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 14.96 | (0.01 | ) | 2.02 | 2.01 | (0.05 | ) | (0.80 | ) | (0.85 | ) | 16.12 | 14.08 | 413 | 2.51 | (0.10 | ) | 2.57 | 44.10 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.09 | 0.04 | (f) | 3.91 | (f) | 3.95 | (0.08 | ) | — | (0.08 | ) | 14.96 | 35.73 | 272 | 2.70 | 0.27 | 2.74 | 44.06 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.98 | (0.01 | ) | (0.88 | ) | (0.89 | ) | — | — | — | 11.09 | (7.43 | ) | 9 | 2.53 | (0.66 | ) | 2.53 | 78.13 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 17.07 | $ | 0.26 | $ | 7.15 | $ | 7.41 | $ | (0.26 | ) | $ | (1.83 | ) | $ | (2.09 | ) | $ | 22.39 | 46.36 | % | $ | 113,393 | 1.37 | % | 1.38 | % | 1.37 | % | 37.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 15.72 | 0.14 | 2.15 | 2.29 | (0.14 | ) | (0.80 | ) | (0.94 | ) | 17.07 | 15.26 | 85,836 | 1.51 | 0.98 | 1.57 | 44.10 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.60 | 0.15 | (f) | 4.13 | (f) | 4.28 | (0.16 | ) | — | (0.16 | ) | 15.72 | 37.07 | 44,092 | 1.71 | 1.13 | 1.73 | 44.06 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.89 | 0.11 | 1.70 | 1.81 | (0.10 | ) | — | (0.10 | ) | 11.60 | 18.21 | 29,827 | 1.63 | 0.80 | 1.64 | 78.13 | ||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.93 | 0.05 | (0.06 | ) | (0.01 | ) | (0.03 | ) | — | (0.03 | ) | 9.89 | (0.13 | ) | 23,937 | 1.85 | 0.59 | 1.86 | 110.44 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge and/or redemption fees, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Amounts calculated using the daily average shares method. |
See notes to financial statements.
87
PACIFIC CAPITAL FUNDS
International Stock Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains on Investments and Foreign Currency Transactions | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.81 | $ | 0.11 | $ | 2.77 | $ | 2.88 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 13.57 | 26.68 | % | $ | 1,221 | 1.35 | % | 0.86 | % | 1.60 | % | 47.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 8.95 | 0.07 | 1.87 | 1.94 | (0.08 | ) | — | (0.08 | ) | 10.81 | 21.65 | 999 | 1.48 | 0.68 | 1.90 | 46.18 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.41 | 0.05 | (f) | 1.52 | (f) | 1.57 | (0.03 | ) | — | (0.03 | ) | 8.95 | 21.17 | 949 | 1.73 | 0.60 | 2.35 | 37.98 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.46 | (0.01 | ) | 0.96 | 0.95 | — | — | — | 7.41 | 14.71 | 884 | 1.78 | (0.05 | ) | 2.38 | 237.06 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.37 | 0.03 | 0.06 | 0.09 | — | — | — | 6.46 | 1.41 | 874 | 1.84 | 0.43 | 2.44 | 178.04 | |||||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.27 | $ | (0.01 | ) | $ | 2.65 | $ | 2.64 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 12.87 | 25.72 | % | $ | 671 | 2.10 | % | 0.03 | % | 2.20 | % | 47.50 | % | ||||||||||||||||
Year Ended July 31, 2006 | 8.54 | (0.01 | ) | 1.77 | 1.76 | (0.03 | ) | — | (0.03 | ) | 10.27 | 20.63 | 673 | 2.23 | (0.06 | ) | 2.39 | 46.18 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.10 | (0.01 | )(f) | 1.46 | (f) | 1.45 | (0.01 | ) | — | (0.01 | ) | 8.54 | 20.43 | 649 | 2.48 | (0.16 | ) | 2.60 | 37.98 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.24 | (0.05 | ) | 0.91 | 0.86 | — | — | — | 7.10 | 13.78 | 608 | 2.53 | (0.80 | ) | 2.63 | 237.06 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.18 | (0.03 | ) | 0.09 | 0.06 | — | — | — | 6.24 | 0.97 | 536 | 2.59 | (0.36 | ) | 2.69 | 178.04 | |||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.27 | $ | — | $ | 2.62 | $ | 2.62 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 12.85 | 25.53 | % | $ | 600 | 2.10 | % | 0.06 | % | 2.20 | % | 47.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 8.53 | (0.01 | ) | 1.78 | 1.77 | (0.03 | ) | — | (0.03 | ) | 10.27 | 20.78 | 601 | 2.23 | (0.04 | ) | 2.39 | 46.18 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.10 | 0.05 | (f) | 1.39 | (f) | 1.44 | (0.01 | ) | — | (0.01 | ) | 8.53 | 20.30 | 494 | 2.42 | 0.57 | 2.55 | 37.98 | |||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 7.48 | (0.01 | ) | (0.37 | ) | (0.38 | ) | — | — | — | 7.10 | (5.08 | ) | 9 | 2.60 | (0.45 | ) | 2.71 | 237.06 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 11.03 | $ | 0.13 | $ | 2.83 | $ | 2.96 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | 13.84 | 26.90 | % | $ | 246,057 | 1.10 | % | 1.07 | % | 1.20 | % | 47.50 | % | |||||||||||||||||
Year Ended July 31, 2006 | 9.13 | 0.09 | 1.91 | 2.00 | (0.10 | ) | — | (0.10 | ) | 11.03 | 21.90 | 209,795 | 1.23 | 1.15 | 1.39 | 46.18 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.55 | 0.08 | (f) | 1.55 | (f) | 1.63 | (0.05 | ) | — | (0.05 | ) | 9.13 | 21.61 | 93,049 | 1.47 | 0.97 | 1.59 | 37.98 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 6.57 | 0.01 | 0.97 | 0.98 | — | — | — | 7.55 | 14.92 | 59,165 | 1.53 | 0.20 | 1.63 | 237.06 | |||||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.44 | 0.05 | 0.08 | 0.13 | — | — | — | 6.57 | 2.02 | 60,558 | 1.59 | 0.74 | 1.69 | 178.04 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge and/or redemption fees, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Amounts calculated using the daily average shares method. |
(g) | Less than $0.005 per share. |
See notes to financial statements.
88
PACIFIC CAPITAL FUNDS
Small Cap Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 17.67 | $ | (0.06 | )(f) | $ | 2.09 | (f) | $ | 2.03 | $ | — | $ | (1.41 | ) | $ | (1.41 | ) | $ | 18.29 | 11.39 | % | $ | 228,985 | 1.57 | % | (0.31 | %) | 1.82 | % | 164.61 | % | |||||||||||||||
Year Ended July 31, 2006 | 18.10 | (0.07 | )(f) | 0.93 | (f) | 0.86 | — | (1.29 | ) | (1.29 | ) | 17.67 | 4.97 | 215,270 | 1.62 | (0.40 | ) | 2.02 | 110.61 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 16.52 | (0.08 | )(f) | 4.39 | (f) | 4.31 | — | (2.73 | ) | (2.73 | ) | 18.10 | 27.98 | 103,700 | 1.63 | (0.49 | ) | 2.26 | 67.75 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 13.24 | (0.02 | ) | 3.64 | 3.62 | — | (0.34 | ) | (0.34 | ) | 16.52 | 27.53 | 10,625 | 1.55 | (0.37 | ) | 2.15 | 90.26 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 12.15 | (0.01 | ) | 2.59 | 2.58 | (0.02 | ) | (1.47 | ) | (1.49 | ) | 13.24 | 24.62 | 1,595 | 1.60 | (0.08 | ) | 2.20 | 105.27 | ||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 16.62 | $ | (0.19 | )(f) | $ | 1.97 | (f) | $ | 1.78 | $ | — | $ | (1.41 | ) | $ | (1.41 | ) | $ | 16.99 | 10.57 | % | $ | 2,510 | 2.32 | % | (1.06 | %) | 2.42 | % | 164.61 | % | |||||||||||||||
Year Ended July 31, 2006 | 17.22 | (0.19 | )(f) | 0.88 | (f) | 0.69 | — | (1.29 | ) | (1.29 | ) | 16.62 | 4.14 | 3,093 | 2.37 | (1.11 | ) | 2.53 | 110.61 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 15.94 | (0.21 | ) | 4.22 | 4.01 | — | (2.73 | ) | (2.73 | ) | 17.22 | 27.09 | 3,555 | 2.35 | (1.29 | ) | 2.46 | 67.75 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 12.89 | (0.17 | ) | 3.56 | 3.39 | — | (0.34 | ) | (0.34 | ) | 15.94 | 26.48 | 3,099 | 2.29 | (1.12 | ) | 2.39 | 90.26 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.92 | (0.08 | ) | 2.52 | 2.44 | — | (1.47 | ) | (1.47 | ) | 12.89 | 23.74 | 2,476 | 2.35 | (0.83 | ) | 2.45 | 105.27 | |||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 16.63 | $ | (0.19 | )(f) | $ | 1.97 | (f) | $ | 1.78 | $ | — | $ | (1.41 | ) | $ | (1.41 | ) | $ | 17.00 | 10.56 | % | $ | 24,083 | 2.32 | % | (1.05 | %) | 2.42 | % | 164.61 | % | |||||||||||||||
Year Ended July 31, 2006 | 17.23 | (0.20 | )(f) | 0.89 | (f) | 0.69 | — | (1.29 | ) | (1.29 | ) | 16.63 | 4.19 | 14,908 | 2.37 | (1.15 | ) | 2.53 | 110.61 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 15.95 | (0.21 | )(f) | 4.22 | (f) | 4.01 | — | (2.73 | ) | (2.73 | ) | 17.23 | 27.00 | 5,832 | 2.40 | (1.33 | ) | 2.54 | 67.75 | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 15.84 | (0.03 | ) | 0.14 | 0.11 | — | — | — | 15.95 | 0.69 | 46 | 2.32 | (1.27 | ) | 2.42 | 90.26 | |||||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 17.92 | $ | (0.01 | )(f) | $ | 2.11 | (f) | $ | 2.10 | $ | — | $ | (1.41 | ) | $ | (1.41 | ) | $ | 18.61 | 11.64 | % | $ | 280,870 | 1.32 | % | (0.04 | %) | 1.42 | % | 164.61 | % | |||||||||||||||
Year Ended July 31, 2006 | 18.29 | (0.03 | )(f) | 0.95 | (f) | 0.92 | — | (1.29 | ) | (1.29 | ) | 17.92 | 5.26 | 197,701 | 1.37 | (0.14 | ) | 1.53 | 110.61 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 16.63 | (0.05 | ) | 4.44 | 4.39 | — | (2.73 | ) | (2.73 | ) | 18.29 | 28.30 | 125,299 | 1.35 | (0.29 | ) | 1.46 | 67.75 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 13.30 | (0.02 | ) | 3.69 | 3.67 | — | (0.34 | ) | (0.34 | ) | 16.63 | 27.78 | 117,641 | 1.29 | (0.12 | ) | 1.39 | 90.26 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 12.18 | 0.03 | 2.60 | 2.63 | (0.04 | ) | (1.47 | ) | (1.51 | ) | 13.30 | 24.96 | 85,520 | 1.35 | 0.19 | 1.45 | 105.27 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Amounts calculated using the daily average shares method. |
See notes to financial statements.
89
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 12.21 | $ | 0.05 | $ | 1.76 | $ | 1.81 | $ | (0.05 | ) | $ | (1.80 | ) | $ | (1.85 | ) | $ | 12.17 | 15.63 | % | $ | 693 | 1.07 | % | 0.44 | % | 1.60 | % | 117.44 | % | |||||||||||||||
Year Ended July 31, 2006 | 12.75 | 0.01 | 0.22 | 0.23 | (0.02 | ) | (0.75 | ) | (0.77 | ) | 12.21 | 1.78 | 886 | 1.05 | 0.10 | 1.69 | 101.34 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.33 | 0.03 | 2.42 | 2.45 | (0.03 | ) | — | (0.03 | ) | 12.75 | 23.69 | 760 | 1.05 | 0.25 | 1.95 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.00 | 0.02 | 0.33 | 0.35 | (0.02 | ) | — | (0.02 | ) | 10.33 | 3.50 | 186 | 1.05 | 0.34 | 2.08 | 47.75 | ||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 12.07 | $ | (0.05 | ) | $ | 1.74 | $ | 1.69 | $ | (0.03 | ) | $ | (1.80 | ) | $ | (1.83 | ) | $ | 11.93 | 14.73 | % | $ | 482 | 1.82 | % | (0.29 | %) | 2.20 | % | 117.44 | % | ||||||||||||||
Year Ended July 31, 2006 | 12.68 | (0.08 | ) | 0.22 | 0.14 | — | (0.75 | ) | (0.75 | ) | 12.07 | 1.07 | 547 | 1.80 | (0.64 | ) | 2.18 | 101.34 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.32 | (0.03 | ) | 2.39 | 2.36 | — | — | — | 12.68 | 22.87 | 509 | 1.80 | (0.50 | ) | 2.21 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004** | 10.23 | (0.01 | ) | 0.10 | 0.09 | — | — | — | 10.32 | 0.88 | 10 | 1.80 | (0.52 | ) | 2.35 | 47.75 | ||||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 12.23 | $ | 0.08 | $ | 1.76 | $ | 1.84 | $ | (0.08 | ) | $ | (1.80 | ) | $ | (1.88 | ) | $ | 12.19 | 15.87 | % | $ | 70,422 | 0.82 | % | 0.65 | % | 1.20 | % | 117.44 | % | |||||||||||||||
Year Ended July 31, 2006 | 12.76 | 0.04 | 0.22 | 0.26 | (0.04 | ) | (0.75 | ) | (0.79 | ) | 12.23 | 2.06 | 73,195 | 0.80 | 0.35 | 1.18 | 101.34 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.34 | 0.05 | 2.42 | 2.47 | (0.05 | ) | — | (0.05 | ) | 12.76 | 23.92 | 83,141 | 0.80 | 0.47 | 1.19 | 97.23 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.00 | 0.03 | 0.34 | 0.37 | (0.03 | ) | — | (0.03 | ) | 10.34 | 3.69 | 30,689 | 0.80 | 0.60 | 1.35 | 47.75 |
* | For the period from December 30, 2003 (commencement of operations) to July 31, 2004. |
** | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(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.
90
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 8.40 | $ | (0.01 | ) | $ | 1.14 | $ | 1.13 | $ | — | (f) | $ | — | $ | — | (f) | $ | 9.53 | 13.49 | % | $ | 7,957 | 1.34 | % | (0.03 | %) | 1.51 | % | 192.57 | % | ||||||||||||||||
Year Ended July 31, 2006 | 8.67 | (0.02 | )(g) | (0.25 | )(g) | (0.27 | ) | — | — | — | 8.40 | (3.11 | ) | 7,979 | 1.39 | (0.28 | ) | 1.73 | 191.06 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.87 | — | 0.81 | 0.81 | (0.01 | ) | — | (0.01 | ) | 8.67 | 10.29 | 9,997 | 1.40 | (0.06 | ) | 1.91 | 174.37 | (h) | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.60 | (0.05 | ) | 0.32 | 0.27 | — | — | — | 7.87 | 3.55 | 10,875 | 1.35 | (0.56 | ) | 1.85 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.90 | (0.04 | ) | 0.74 | 0.70 | — | — | — | 7.60 | 10.14 | 11,231 | 1.35 | (0.58 | ) | 1.85 | 33.11 | |||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 7.82 | $ | (0.09 | ) | $ | 1.08 | $ | 0.99 | $ | — | (f) | $ | — | $ | — | (f) | $ | 8.81 | 12.69 | % | $ | 5,956 | 2.09 | % | (0.78 | %) | 2.11 | % | 192.57 | % | ||||||||||||||||
Year Ended July 31, 2006 | 8.14 | (0.08 | )(g) | (0.24 | )(g) | (0.32 | ) | — | — | — | 7.82 | (3.93 | ) | 8,898 | 2.14 | (1.03 | ) | 2.20 | 191.06 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.43 | (0.07 | ) | 0.78 | 0.71 | — | — | — | 8.14 | 9.56 | 12,127 | 2.15 | (0.82 | ) | 2.16 | 174.37 | (h) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.23 | (0.11 | ) | 0.31 | 0.20 | — | — | — | 7.43 | 2.77 | 12,804 | 2.10 | (1.31 | ) | 2.10 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.62 | (0.09 | ) | 0.70 | 0.61 | — | — | — | 7.23 | 9.21 | 13,630 | 2.10 | (1.33 | ) | 2.10 | 33.11 | |||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 7.82 | $ | (0.08 | ) | $ | 1.06 | $ | 0.98 | $ | — | (f) | $ | — | $ | — | (f) | $ | 8.80 | 12.55 | % | $ | 1,851 | 2.09 | % | (0.78 | %) | 2.11 | % | 192.57 | % | ||||||||||||||||
Year Ended July 31, 2006 | 8.13 | (0.08 | )(g) | (0.23 | )(g) | (0.31 | ) | — | — | — | 7.82 | (3.81 | ) | 1,926 | 2.14 | (1.03 | ) | 2.20 | 191.06 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 7.43 | (0.05 | ) | 0.76 | 0.71 | (0.01 | ) | — | (0.01 | ) | 8.13 | 9.59 | 1,987 | 2.15 | (1.15 | ) | 2.18 | 174.37 | (h) | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 7.69 | (0.02 | ) | (0.24 | ) | (0.26 | ) | — | — | — | 7.43 | (3.38 | ) | 11 | 2.13 | (1.24 | ) | 2.13 | 60.70 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 8.66 | $ | 0.02 | $ | 1.17 | $ | 1.19 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 9.84 | 13.78 | % | $ | 153,583 | 1.09 | % | 0.22 | % | 1.11 | % | 192.57 | % | |||||||||||||||||
Year Ended July 31, 2006 | 8.92 | — | (g) | (0.26 | )(g) | (0.26 | ) | — | — | — | 8.66 | (2.91 | ) | 144,801 | 1.14 | (0.03 | ) | 1.20 | 191.06 | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 8.09 | 0.02 | 0.83 | 0.85 | (0.02 | ) | — | (0.02 | ) | 8.92 | 10.50 | 218,750 | 1.15 | 0.19 | 1.16 | 174.37 | (h) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.79 | (0.03 | ) | 0.33 | 0.30 | — | — | — | 8.09 | 3.85 | 237,799 | 1.10 | (0.31 | ) | 1.10 | 60.70 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.06 | (0.02 | ) | 0.75 | 0.73 | — | — | — | 7.79 | 10.34 | 251,310 | 1.10 | (0.33 | ) | 1.10 | 33.11 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Less than $0.005 per share. |
(g) | Amounts calculated using the daily average shares method. |
(h) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
91
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 13.32 | $ | 0.07 | $ | 1.27 | $ | 1.34 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 14.58 | 10.06 | % | $ | 6,022 | 1.31 | % | 0.51 | % | 1.48 | % | 170.64 | % | |||||||||||||||||
Year Ended July 31, 2006 | 13.32 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | 13.32 | 0.28 | 5,519 | 1.38 | 0.29 | 1.71 | 170.39 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.65 | 0.06 | 1.67 | 1.73 | (0.06 | ) | — | (0.06 | ) | 13.32 | 14.83 | 5,554 | 1.42 | 0.42 | 1.94 | 181.04 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.69 | 0.01 | 0.96 | 0.97 | (0.01 | ) | — | (0.01 | ) | 11.65 | 9.11 | 5,539 | 1.38 | 0.12 | 1.88 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.89 | 0.02 | 0.80 | 0.82 | (0.02 | ) | — | (0.02 | ) | 10.69 | 8.31 | 5,548 | 1.37 | 0.24 | 1.87 | 46.92 | |||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 12.51 | $ | (0.04 | ) | $ | 1.20 | $ | 1.16 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 13.66 | 9.24 | % | $ | 3,141 | 2.06 | % | (0.20 | %) | 2.08 | % | 170.64 | % | ||||||||||||||||
Year Ended July 31, 2006 | 12.57 | (0.07 | ) | 0.01 | (0.06 | ) | — | — | — | 12.51 | (0.48 | ) | 5,330 | 2.13 | (0.44 | ) | 2.19 | 170.39 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.06 | (0.04 | ) | 1.58 | 1.54 | (0.03 | ) | — | (0.03 | ) | 12.57 | 13.93 | 7,193 | 2.17 | (0.33 | ) | 2.19 | 181.04 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.21 | (0.07 | ) | 0.92 | 0.85 | — | — | — | 11.06 | 8.33 | 7,509 | 2.13 | (0.63 | ) | 2.13 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.50 | (0.05 | ) | 0.76 | 0.71 | — | — | — | 10.21 | 7.47 | 7,507 | 2.12 | (0.51 | ) | 2.12 | 46.92 | |||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 12.50 | $ | (0.03 | ) | $ | 1.19 | $ | 1.16 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 13.65 | 9.25 | % | $ | 1,774 | 2.06 | % | (0.23 | %) | 2.08 | % | 170.64 | % | ||||||||||||||||
Year Ended July 31, 2006 | 12.56 | (0.06 | ) | — | (0.06 | ) | — | — | — | 12.50 | (0.48 | ) | 1,913 | 2.13 | (0.45 | ) | 2.19 | 170.39 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.06 | (0.02 | ) | 1.57 | 1.55 | (0.05 | ) | — | (0.05 | ) | 12.56 | 14.00 | 1,911 | 2.17 | (0.74 | ) | 2.20 | 181.04 | (f) | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.17 | (0.02 | ) | (0.09 | ) | (0.11 | ) | — | — | — | 11.06 | (0.98 | ) | 10 | 2.17 | (0.78 | ) | 2.17 | 48.46 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 13.42 | $ | 0.12 | $ | 1.28 | $ | 1.40 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | $ | 14.70 | 10.39 | % | $ | 144,123 | 1.06 | % | 0.77 | % | 1.08 | % | 170.64 | % | |||||||||||||||||
Year Ended July 31, 2006 | 13.42 | 0.07 | — | 0.07 | (0.07 | ) | — | (0.07 | ) | 13.42 | 0.52 | 152,521 | 1.13 | 0.54 | 1.19 | 170.39 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.73 | 0.09 | 1.68 | 1.77 | (0.08 | ) | — | (0.08 | ) | 13.42 | 15.12 | 136,311 | 1.17 | 0.67 | 1.19 | 181.04 | (f) | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.76 | 0.05 | 0.96 | 1.01 | (0.04 | ) | — | (0.04 | ) | 11.73 | 9.39 | 127,883 | 1.13 | 0.38 | 1.13 | 48.46 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 9.96 | 0.04 | 0.80 | 0.84 | (0.04 | ) | — | (0.04 | ) | 10.76 | 8.52 | 138,027 | 1.12 | 0.49 | 1.12 | 46.92 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
92
PACIFIC CAPITAL FUNDS
Value Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income (Loss) to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.69 | $ | 0.12 | $ | 1.15 | $ | 1.27 | $ | (0.12 | ) | $ | (1.29 | ) | $ | (1.41 | ) | $ | 10.55 | 12.10 | % | $ | 2,962 | 1.28 | % | 1.05 | % | 1.45 | % | 183.84 | % | ||||||||||||||
Year Ended July 31, 2006 | 9.87 | 0.09 | 0.83 | 0.92 | (0.10 | ) | — | (0.10 | ) | 10.69 | 9.39 | 2,991 | 1.34 | 0.91 | 1.67 | 141.07 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 8.37 | 0.08 | 1.50 | 1.58 | (0.08 | ) | — | (0.08 | ) | 9.87 | 18.75 | 2,910 | 1.36 | 0.78 | 1.87 | 129.24 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.37 | 0.06 | 1.00 | 1.06 | (0.06 | ) | — | (0.06 | ) | 8.37 | 14.52 | 2,477 | 1.33 | 0.63 | 1.83 | 73.48 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.02 | 0.07 | 0.35 | 0.42 | (0.07 | ) | — | (0.07 | ) | 7.37 | 6.07 | 2,146 | 1.32 | 1.05 | 1.82 | 77.62 | |||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.51 | $ | 0.03 | $ | 1.13 | $ | 1.16 | $ | (0.04 | ) | $ | (1.29 | ) | $ | (1.33 | ) | $ | 10.34 | 11.24 | % | $ | 1,102 | 2.03 | % | 0.32 | % | 2.05 | % | 183.84 | % | ||||||||||||||
Year Ended July 31, 2006 | 9.70 | 0.02 | 0.81 | 0.83 | (0.02 | ) | — | (0.02 | ) | 10.51 | 8.57 | 1,433 | 2.09 | 0.17 | 2.15 | 141.07 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 8.25 | — | 1.48 | 1.48 | (0.03 | ) | — | (0.03 | ) | 9.70 | 18.00 | 1,460 | 2.11 | 0.04 | 2.12 | 129.24 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.27 | — | 0.99 | 0.99 | (0.01 | ) | — | (0.01 | ) | 8.25 | 13.55 | 1,349 | 2.08 | (0.11 | ) | 2.08 | 73.48 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 6.93 | 0.02 | 0.34 | 0.36 | (0.02 | ) | — | (0.02 | ) | 7.27 | 5.22 | 1,291 | 2.07 | 0.31 | 2.07 | 77.62 | |||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.54 | $ | 0.03 | $ | 1.13 | $ | 1.16 | $ | (0.04 | ) | $ | (1.29 | ) | $ | (1.33 | ) | $ | 10.37 | 11.21 | % | $ | 1,831 | 2.03 | % | 0.31 | % | 2.05 | % | 183.84 | % | ||||||||||||||
Year Ended July 31, 2006 | 9.74 | 0.02 | 0.81 | 0.83 | (0.03 | ) | — | (0.03 | ) | 10.54 | 8.57 | 2,082 | 2.09 | 0.16 | 2.15 | 141.07 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 8.25 | — | 1.50 | 1.50 | (0.01 | ) | — | (0.01 | ) | 9.74 | 18.00 | 1,833 | 2.11 | (0.19 | ) | 2.14 | 129.24 | (f) | |||||||||||||||||||||||||||
Period Ended July 31, 2004* | 8.19 | — | 0.06 | 0.06 | — | — | — | 8.25 | 0.87 | 10 | 2.11 | (0.05 | ) | 2.11 | 73.48 | ||||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.71 | $ | 0.14 | $ | 1.15 | $ | 1.29 | $ | (0.14 | ) | $ | (1.29 | ) | $ | (1.43 | ) | $ | 10.57 | 12.33 | % | $ | 143,807 | 1.03 | % | 1.30 | % | 1.05 | % | 183.84 | % | ||||||||||||||
Year Ended July 31, 2006 | 9.89 | 0.13 | 0.82 | 0.95 | (0.13 | ) | — | (0.13 | ) | 10.71 | 9.64 | 145,676 | 1.09 | 1.18 | 1.15 | 141.07 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 8.39 | 0.10 | 1.50 | 1.60 | (0.10 | ) | — | (0.10 | ) | 9.89 | 19.12 | 182,279 | 1.11 | 1.05 | 1.12 | 129.24 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 7.38 | 0.08 | 1.01 | 1.09 | (0.08 | ) | — | (0.08 | ) | 8.39 | 14.76 | 178,389 | 1.08 | 0.89 | 1.08 | 73.48 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 7.03 | 0.09 | 0.35 | 0.44 | (0.09 | ) | — | (0.09 | ) | 7.38 | 6.32 | 210,881 | 1.07 | 1.30 | 1.07 | 77.62 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
93
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.61 | $ | 0.50 | $ | — | $ | 0.50 | $ | (0.49 | ) | $ | — | $ | (0.49 | ) | $ | 10.62 | 4.75 | % | $ | 3,115 | 0.93 | % | 4.67 | % | 1.23 | % | 66.38 | % | |||||||||||||||||
Year Ended July 31, 2006 | 11.02 | 0.44 | (0.41 | ) | 0.03 | (0.44 | ) | — | (f) | (0.44 | ) | 10.61 | 0.29 | 3,689 | 0.96 | 4.06 | 1.45 | 85.53 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.05 | 0.40 | — | 0.40 | (0.40 | ) | (0.03 | ) | (0.43 | ) | 11.02 | 3.67 | 4,577 | 1.00 | 3.58 | 1.67 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.28 | 0.42 | (0.03 | ) | 0.39 | (0.42 | ) | (0.20 | ) | (0.62 | ) | 11.05 | 3.46 | 5,222 | 0.98 | 3.72 | 1.63 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.22 | 0.47 | 0.17 | 0.64 | (0.47 | ) | (0.11 | ) | (0.58 | ) | 11.28 | 5.76 | 8,841 | 0.97 | 4.04 | 1.62 | 52.53 | ||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.59 | $ | 0.42 | $ | — | $ | 0.42 | $ | (0.41 | ) | $ | — | $ | (0.41 | ) | $ | 10.60 | 3.98 | % | $ | 1,634 | 1.68 | % | 3.91 | % | 1.83 | % | 66.38 | % | |||||||||||||||||
Year Ended July 31, 2006 | 11.00 | 0.36 | (0.41 | ) | (0.05 | ) | (0.36 | ) | — | (f) | (0.36 | ) | 10.59 | (0.45 | ) | 2,944 | 1.71 | 3.32 | 1.92 | 85.53 | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.03 | 0.32 | — | 0.32 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 11.00 | 2.90 | 4,019 | 1.75 | 2.83 | 1.92 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.26 | 0.33 | (0.03 | ) | 0.30 | (0.33 | ) | (0.20 | ) | (0.53 | ) | 11.03 | 2.70 | 4,397 | 1.73 | 2.97 | 1.88 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.20 | 0.38 | 0.17 | 0.55 | (0.38 | ) | (0.11 | ) | (0.49 | ) | 11.26 | 4.96 | 5,193 | 1.72 | 3.30 | 1.87 | 52.53 | ||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.59 | $ | 0.42 | $ | — | $ | 0.42 | $ | (0.41 | ) | $ | — | $ | (0.41 | ) | $ | 10.60 | 3.98 | % | $ | 964 | 1.68 | % | 3.90 | % | 1.83 | % | 66.38 | % | |||||||||||||||||
Year Ended July 31, 2006 | 11.00 | 0.36 | (0.41 | ) | (0.05 | ) | (0.36 | ) | — | (f) | (0.36 | ) | 10.59 | (0.45 | ) | 1,322 | 1.71 | 3.34 | 1.92 | 85.53 | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.02 | 0.32 | 0.01 | 0.33 | (0.32 | ) | (0.03 | ) | (0.35 | ) | 11.00 | 3.00 | 1,188 | 1.75 | 2.90 | 1.93 | 27.95 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 11.02 | 0.08 | — | 0.08 | (0.08 | ) | — | (0.08 | ) | 11.02 | 0.76 | 10 | 1.75 | 2.98 | 1.90 | 48.55 | |||||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.67 | $ | 0.53 | $ | — | $ | 0.53 | $ | (0.52 | ) | $ | — | $ | (0.52 | ) | $ | 10.68 | 4.98 | % | $ | 308,116 | 0.68 | % | 4.88 | % | 0.83 | % | 66.38 | % | |||||||||||||||||
Year Ended July 31, 2006 | 11.09 | 0.47 | (0.42 | ) | 0.05 | (0.47 | ) | — | (f) | (0.47 | ) | 10.67 | 0.45 | 287,360 | 0.71 | 4.30 | 0.92 | 85.53 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 11.12 | 0.43 | — | 0.43 | (0.43 | ) | (0.03 | ) | (0.46 | ) | 11.09 | 3.90 | 294,240 | 0.74 | 3.81 | 0.91 | 27.95 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 11.35 | 0.45 | (0.03 | ) | 0.42 | (0.45 | ) | (0.20 | ) | (0.65 | ) | 11.12 | 3.73 | 268,129 | 0.73 | 3.97 | 0.88 | 48.55 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 11.29 | 0.50 | 0.17 | 0.67 | (0.50 | ) | (0.11 | ) | (0.61 | ) | 11.35 | 6.00 | 235,902 | 0.72 | 4.30 | 0.87 | 52.53 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Less than $0.005 per share. |
See notes to financial statements.
94
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.11 | $ | 0.41 | $ | (0.05 | ) | $ | 0.36 | $ | (0.41 | ) | $ | (0.01 | ) | $ | (0.42 | ) | $ | 10.05 | 3.57 | % | $ | 5,513 | 0.93 | % | 4.02 | % | 1.23 | % | 19.29 | % | ||||||||||||||
Year Ended July 31, 2006 | 10.52 | 0.40 | (0.28 | ) | 0.12 | (0.40 | ) | (0.13 | ) | (0.53 | ) | 10.11 | 1.19 | 6,209 | 0.98 | 3.87 | 1.48 | 59.63 | (f) | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.41 | (0.04 | ) | 0.37 | (0.41 | ) | (0.16 | ) | (0.57 | ) | 10.52 | 3.49 | 8,973 | 1.00 | 3.83 | 1.67 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.75 | 0.44 | 0.02 | 0.46 | (0.44 | ) | (0.05 | ) | (0.49 | ) | 10.72 | 4.32 | 9,928 | 0.97 | 4.03 | 1.62 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.86 | 0.43 | (0.05 | ) | 0.38 | (0.43 | ) | (0.06 | ) | (0.49 | ) | 10.75 | 3.54 | 11,829 | 0.96 | 3.93 | 1.61 | 1.24 | ||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.11 | $ | 0.33 | $ | (0.05 | ) | $ | 0.28 | $ | (0.33 | ) | $ | (0.01 | ) | $ | (0.34 | ) | $ | 10.05 | 2.80 | % | $ | 1,103 | 1.68 | % | 3.24 | % | 1.83 | % | 19.29 | % | ||||||||||||||
Year Ended July 31, 2006 | 10.52 | 0.32 | (0.28 | ) | 0.04 | (0.32 | ) | (0.13 | ) | (0.45 | ) | 10.11 | 0.44 | 2,375 | 1.73 | 3.11 | 1.94 | 59.63 | (f) | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.33 | (0.04 | ) | 0.29 | (0.33 | ) | (0.16 | ) | (0.49 | ) | 10.52 | 2.71 | 3,344 | 1.75 | 3.08 | 1.92 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.75 | 0.35 | 0.02 | 0.37 | (0.35 | ) | (0.05 | ) | (0.40 | ) | 10.72 | 3.55 | 4,054 | 1.72 | 3.28 | 1.87 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.85 | 0.35 | (0.04 | ) | 0.31 | (0.35 | ) | (0.06 | ) | (0.41 | ) | 10.75 | 2.86 | 4,643 | 1.71 | 3.18 | 1.86 | 1.24 | ||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.11 | $ | 0.33 | $ | (0.05 | ) | $ | 0.28 | $ | (0.33 | ) | $ | (0.01 | ) | $ | (0.34 | ) | $ | 10.05 | 2.79 | % | $ | 11 | 1.68 | % | 3.27 | % | 1.83 | % | 19.29 | % | ||||||||||||||
Year Ended July 31, 2006 | 10.53 | 0.32 | (0.29 | ) | 0.03 | (0.32 | ) | (0.13 | ) | (0.45 | ) | 10.11 | 0.35 | 10 | 1.73 | 3.11 | 1.94 | 59.63 | (f) | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.72 | 0.33 | (0.03 | ) | 0.30 | (0.33 | ) | (0.16 | ) | (0.49 | ) | 10.53 | 2.83 | 10 | 1.74 | 3.09 | 1.90 | 8.65 | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.72 | 0.09 | — | 0.09 | (0.09 | ) | — | (0.09 | ) | 10.72 | 0.82 | 10 | 1.74 | 3.22 | 1.89 | 8.87 | ||||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.15 | $ | 0.43 | $ | (0.05 | ) | $ | 0.38 | $ | (0.43 | ) | $ | (0.01 | ) | $ | (0.44 | ) | $ | 10.09 | 3.81 | % | $ | 282,671 | 0.68 | % | 4.25 | % | 0.83 | % | 19.29 | % | ||||||||||||||
Year Ended July 31, 2006 | 10.57 | 0.42 | (0.29 | ) | 0.13 | (0.42 | ) | (0.13 | ) | (0.55 | ) | 10.15 | 1.34 | 287,126 | 0.73 | 4.09 | 0.94 | 59.63 | (f) | |||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.76 | 0.44 | (0.03 | ) | 0.41 | (0.44 | ) | (0.16 | ) | (0.60 | ) | 10.57 | 3.83 | 315,854 | 0.75 | 4.06 | 0.92 | 8.65 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.79 | 0.47 | 0.02 | 0.49 | (0.47 | ) | (0.05 | ) | (0.52 | ) | 10.76 | 4.59 | 343,890 | 0.72 | 4.28 | 0.87 | 8.87 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.90 | 0.46 | (0.05 | ) | 0.41 | (0.46 | ) | (0.06 | ) | (0.52 | ) | 10.79 | 3.80 | 397,157 | 0.71 | 4.18 | 0.86 | 1.24 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. The increase was attributable to cashflows into and out of the Fund as well as tactical portfolio adjustments made in response to rising short and intermediate interest rates. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed. |
See notes to financial statements.
95
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net Investment Income to Average Net Assets (c) | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 9.53 | $ | 0.42 | $ | 0.01 | $ | 0.43 | $ | (0.42 | ) | $ | — | $ | (0.42 | ) | $ | 9.54 | 4.61 | % | $ | 984 | 0.77 | % | 4.43 | % | 1.22 | % | 88.15 | % | ||||||||||||||||
Year Ended July 31, 2006 | 9.66 | 0.34 | (0.13 | ) | 0.21 | (0.34 | ) | — | (0.34 | ) | 9.53 | 2.21 | 1,261 | 0.78 | 3.49 | 1.43 | 74.37 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 9.80 | 0.26 | (0.14 | ) | 0.12 | (0.26 | ) | — | (f) | (0.26 | ) | 9.66 | 1.27 | 1,781 | 0.80 | 2.69 | 1.59 | 35.32 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.97 | 0.25 | (0.13 | ) | 0.12 | (0.25 | ) | (0.04 | ) | (0.29 | ) | 9.80 | 1.11 | 1,724 | 0.80 | 2.48 | 1.55 | 49.42 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.06 | 0.31 | 0.02 | 0.33 | (0.31 | ) | (0.11 | ) | (0.42 | ) | 9.97 | 3.28 | 5,327 | 0.80 | 2.93 | 1.55 | 17.50 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 9.52 | $ | 0.35 | $ | 0.02 | $ | 0.37 | $ | (0.35 | ) | $ | — | $ | (0.35 | ) | $ | 9.54 | 3.94 | % | $ | 511 | 1.52 | % | 3.67 | % | 1.82 | % | 88.15 | % | ||||||||||||||||
Year Ended July 31, 2006 | 9.65 | 0.27 | (0.13 | ) | 0.14 | (0.27 | ) | — | (0.27 | ) | 9.52 | 1.45 | 675 | 1.53 | 2.80 | 1.89 | 74.37 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 9.80 | 0.19 | (0.15 | ) | 0.04 | (0.19 | ) | — | (f) | (0.19 | ) | 9.65 | 0.40 | 631 | 1.55 | 1.99 | 1.84 | 35.32 | ||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 9.84 | 0.04 | (0.04 | ) | — | (0.04 | ) | — | (0.04 | ) | 9.80 | 0.04 | 10 | 1.55 | 1.75 | 1.82 | 49.42 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 9.55 | $ | 0.45 | $ | 0.01 | $ | 0.46 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 9.56 | 4.86 | % | $ | 62,808 | 0.52 | % | 4.68 | % | 0.82 | % | 88.15 | % | ||||||||||||||||
Year Ended July 31, 2006 | 9.68 | 0.36 | (0.13 | ) | 0.23 | (0.36 | ) | — | (0.36 | ) | 9.55 | 2.46 | 60,257 | 0.53 | 3.74 | 0.89 | 74.37 | |||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 9.82 | 0.29 | (0.14 | ) | 0.15 | (0.29 | ) | — | (f) | (0.29 | ) | 9.68 | 1.52 | 85,991 | 0.55 | 2.93 | 0.84 | 35.32 | ||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 9.99 | 0.27 | (0.13 | ) | 0.14 | (0.27 | ) | (0.04 | ) | (0.31 | ) | 9.82 | 1.38 | 81,346 | 0.55 | 2.73 | 0.81 | 49.42 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.09 | 0.33 | 0.01 | 0.34 | (0.33 | ) | (0.11 | ) | (0.44 | ) | 9.99 | 3.41 | 88,824 | 0.55 | 3.23 | 0.80 | 17.50 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | Less than $0.005 per share. |
See notes to financial statements.
96
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net to Average | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.05 | $ | 0.31 | $ | (0.03 | ) | $ | 0.28 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 10.02 | 2.84 | % | $ | 2,175 | 0.99 | % | 3.10 | % | 1.23 | % | 68.09 | % | |||||||||||||||
Year Ended July 31, 2006 | 10.21 | 0.28 | (0.16 | ) | 0.12 | (0.28 | ) | — | (0.28 | ) | 10.05 | 1.22 | 2,792 | 1.00 | 2.78 | 1.44 | 112.73 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.30 | 0.23 | (0.09 | ) | 0.14 | (0.23 | ) | — | (0.23 | ) | 10.21 | 1.40 | 3,784 | 1.00 | 2.26 | 1.62 | 28.31 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.36 | 0.22 | (0.06 | ) | 0.16 | (0.22 | ) | — | (0.22 | ) | 10.30 | 1.53 | 4,781 | 0.97 | 2.09 | 1.58 | 11.30 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.39 | 0.25 | 0.02 | 0.27 | (0.25 | ) | (0.05 | ) | (0.30 | ) | 10.36 | 2.62 | 2,322 | 0.97 | 2.40 | 1.58 | 6.01 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.06 | $ | 0.24 | $ | (0.04 | ) | $ | 0.20 | $ | (0.24 | ) | $ | — | $ | (0.24 | ) | $ | 10.02 | 1.97 | % | $ | 10 | 1.74 | % | 2.35 | % | 1.83 | % | 68.09 | % | |||||||||||||||
Year Ended July 31, 2006 | 10.21 | 0.20 | (0.15 | ) | 0.05 | (0.20 | ) | — | (0.20 | ) | 10.06 | 0.55 | 10 | 1.75 | 2.03 | 1.91 | 112.73 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.31 | 0.16 | (0.10 | ) | 0.06 | (0.16 | ) | — | (0.16 | ) | 10.21 | 0.54 | 10 | 1.75 | 1.52 | 1.87 | 28.31 | |||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.32 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | — | (0.04 | ) | 10.31 | 0.26 | 10 | 1.72 | 1.41 | 1.83 | 11.30 | |||||||||||||||||||||||||||||
CLASS Y | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.11 | $ | 0.34 | $ | (0.03 | ) | $ | 0.31 | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | $ | 10.08 | 3.08 | % | $ | 50,835 | 0.74 | % | 3.33 | % | 0.83 | % | 68.09 | % | |||||||||||||||
Year Ended July 31, 2006 | 10.27 | 0.31 | (0.16 | ) | 0.15 | (0.31 | ) | — | (0.31 | ) | 10.11 | 1.47 | 62,816 | 0.75 | 3.03 | 0.91 | 112.73 | (f) | ||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.36 | 0.26 | (0.09 | ) | 0.17 | (0.26 | ) | — | (0.26 | ) | 10.27 | 1.65 | 65,070 | 0.74 | 2.51 | 0.86 | 28.31 | |||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.41 | 0.24 | (0.05 | ) | 0.19 | (0.24 | ) | — | (0.24 | ) | 10.36 | 1.87 | 67,606 | 0.72 | 2.34 | 0.83 | 11.30 | |||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.45 | 0.28 | 0.01 | 0.29 | (0.28 | ) | (0.05 | ) | (0.33 | ) | 10.41 | 2.78 | 63,449 | 0.72 | 2.64 | 0.83 | 6.01 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(e) | Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(f) | The portfolio turnover rate increased significantly during the period. This increase was primarily attributable to tactical portfolio adjustments made in response to rising short and intermediate interest rates and Hawaii municipal bond availability. The basic characteristics of the Fund in terms of style and diversification have not changed. |
See notes to financial statements.
97
PACIFIC CAPITAL FUNDS
U.S. Government Short Fixed Income Fund
Financial Highlights
(Selected data for a share of capital stock outstanding throughout the periods indicated)
Investment Activities | Distributions | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Dividends and Distributions | Net Asset Value, End of Period | Total Return (a)(b) | Net Assets, End of Period (000’s) | Ratio of Expenses to Average Net Assets (c) | Ratio of Net to Average | Ratio of Expenses to Average Net Assets (c)(d) | Portfolio Turnover (e) | ||||||||||||||||||||||||||||||||||
CLASS A | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.04 | $ | 0.45 | $ | 0.02 | $ | 0.47 | $ | (0.45 | ) | $ | — | $ | (0.45 | ) | $ | 10.06 | 4.80 | % | $ | 2,265 | 0.64 | % | 4.50 | % | 1.07 | % | 81.16 | % | |||||||||||||||||
Year Ended July 31, 2006 | 10.04 | 0.32 | — | 0.32 | (0.32 | ) | — | (0.32 | ) | 10.04 | 3.27 | 2,355 | 0.63 | 3.03 | 1.36 | 88.38 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.18 | (0.06 | ) | 0.12 | (0.18 | ) | — | (0.18 | ) | 10.04 | 1.19 | 6,552 | 0.62 | 1.76 | 1.47 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.24 | 0.18 | (0.14 | ) | 0.04 | (0.18 | ) | — | (0.18 | ) | 10.10 | 0.36 | 8,743 | 0.62 | 1.74 | 1.43 | 111.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.31 | 0.23 | (0.06 | ) | 0.17 | (0.23 | ) | (0.01 | ) | (0.24 | ) | 10.24 | 1.67 | 12,787 | 0.62 | 2.23 | 1.42 | 17.41 | |||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.04 | $ | 0.38 | $ | 0.02 | $ | 0.40 | $ | (0.38 | ) | $ | — | $ | (0.38 | ) | $ | 10.06 | 4.02 | % | $ | 825 | 1.39 | % | 3.75 | % | 1.67 | % | 81.16 | % | |||||||||||||||||
Year Ended July 31, 2006 | 10.04 | 0.25 | — | 0.25 | (0.25 | ) | — | (0.25 | ) | 10.04 | 2.50 | 1,238 | 1.38 | 2.44 | 1.77 | 88.38 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.10 | (0.06 | ) | 0.04 | (0.10 | ) | — | (0.10 | ) | 10.04 | 0.43 | 1,609 | 1.37 | 1.01 | 1.72 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.24 | 0.10 | (0.14 | ) | (0.04 | ) | (0.10 | ) | — | (0.10 | ) | 10.10 | (0.38 | ) | 1,965 | 1.37 | 0.99 | 1.68 | 111.13 | ||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.31 | 0.15 | (0.06 | ) | 0.09 | (0.15 | ) | (0.01 | ) | (0.16 | ) | 10.24 | 0.91 | 1,994 | 1.37 | 1.46 | 1.67 | 17.41 | |||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.04 | $ | 0.38 | $ | 0.02 | $ | 0.40 | $ | (0.38 | ) | $ | — | $ | (0.38 | ) | $ | 10.06 | 4.02 | % | $ | 1,116 | 1.39 | % | 3.75 | % | 1.67 | % | 81.16 | % | |||||||||||||||||
Year Ended July 31, 2006 | 10.04 | 0.25 | — | 0.25 | (0.25 | ) | — | (0.25 | ) | 10.04 | 2.50 | 1,514 | 1.38 | 2.45 | 1.77 | 88.38 | |||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.10 | 0.10 | (0.06 | ) | 0.04 | (0.10 | ) | — | (0.10 | ) | 10.04 | 0.43 | 1,834 | 1.37 | 1.20 | 1.72 | 64.16 | ||||||||||||||||||||||||||||||
Period Ended July 31, 2004* | 10.15 | 0.02 | (0.05 | ) | (0.03 | ) | (0.02 | ) | — | (0.02 | ) | 10.10 | (0.26 | ) | 10 | 1.37 | 0.85 | 1.58 | 111.13 | ||||||||||||||||||||||||||||
CLASS Y | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2007 | $ | 10.04 | $ | 0.48 | $ | 0.03 | $ | 0.51 | $ | (0.48 | ) | $ | — | $ | (0.48 | ) | $ | 10.07 | 5.17 | % | $ | 85,818 | 0.39 | % | 4.74 | % | 0.67 | % | 81.16 | % | |||||||||||||||||
Year Ended July 31, 2006 | 10.05 | 0.35 | (0.01 | ) | 0.34 | (0.35 | ) | — | (0.35 | ) | 10.04 | 3.42 | 96,102 | 0.38 | 3.43 | 0.77 | 88.38 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2005 | 10.11 | 0.20 | (0.06 | ) | 0.14 | (0.20 | ) | — | (0.20 | ) | 10.05 | 1.44 | 125,349 | 0.37 | 1.98 | 0.71 | 64.16 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2004 | 10.25 | 0.20 | (0.14 | ) | 0.06 | (0.20 | ) | — | (0.20 | ) | 10.11 | 0.61 | 215,124 | 0.37 | 1.99 | 0.68 | 111.13 | ||||||||||||||||||||||||||||||
Year Ended July 31, 2003 | 10.32 | 0.26 | (0.06 | ) | 0.20 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 10.25 | 1.92 | 240,916 | 0.37 | 2.47 | 0.67 | 17.41 |
* | For the period from April 30, 2004 (commencement of operations) to July 31, 2004. |
(a) | Excludes sales charge and/or redemption fees, if applicable. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated. |
(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.
98
PACIFIC CAPITAL FUNDS
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
Pacific Capital Funds:
We have audited the accompanying statements of assets and liabilities of Pacific Capital Funds—New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, Value Fund, High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund (the Funds), including the schedules of portfolio investments, as of July 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each year in the two-year period then ended and the financial highlights for each year in the three-year period then ended. 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. The accompanying financial highlights for the periods ended July 31, 2004 and prior were audited by other auditors whose report thereon dated September 1, 2004, expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. Our procedures included confirmation of securities owned as of July 31, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. 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 the Funds as of July 31, 2007, and the results of their operations for the year then ended, the changes in their net assets for each year in the two-year period then ended and their financial highlights for each year in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
September 24, 2007
99
PACIFIC CAPITAL FUNDS
Additional Tax Information (unaudited)
For the year ended July 31, 2007, the following percentages of the total ordinary income distributions paid by the Funds during the year represent qualified dividend income paid:
Qualified Dividend Income (%) | ||
New Asia Growth Fund | 12.30 | |
International Stock Fund | 100.00 | |
Small Cap Fund | 13.73 | |
Mid-Cap Fund | 41.67 | |
Growth Stock Fund | 100.00 | |
Growth and Income Fund | 100.00 | |
Value Fund | 18.19 |
For corporate shareholders, the following percentages of the total ordinary income distributions paid by the Funds during the year ended July 31, 2007 qualify for the corporate dividends received deduction:
Dividend Received Deduction (%) | ||
Small Cap Fund | 22.12 | |
Mid-Cap Fund | 46.10 | |
Growth Stock Fund | 100.00 | |
Growth and Income Fund | 100.00 | |
Value Fund | 18.87 |
The Funds may elect to pass through foreign taxes paid by the Funds to their shareholders under Code 853 of the Internal Revenue Code. The following Funds intend to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per share outstanding on July 31, 2007 are as follows:
Foreign Source Income ($) | Foreign Tax Expense ($) | |||
New Asia Growth Fund | 0.34 | 0.03 | ||
International Stock Fund | 0.19 | 0.02 |
The Tax-Free Securities Fund and the Tax-Free Short Intermediate Securities Fund designate 100% of their income dividends as exempt-interest dividends.
The accompanying table below details distributions designated from long-term capital gains for the following funds for the fiscal year ended July 31, 2007 (amounts in thousands):
Amount ($) | ||
New Asia Growth Fund | 7,883 | |
International Stock Fund | 98 | |
Small Cap Fund | 15,839 | |
Mid-Cap Fund | 7,155 | |
Growth and Income Fund | 28 | |
Value Fund | 19,141 | |
Tax-Free Securities Fund | 272 |
100
PACIFIC CAPITAL FUNDS
Trustees and Officers
July 31, 2007
Interested Trustees. The table below sets forth certain information about each of the Trustees of the Trust who is an “interested person” of the Trust as defined by the Investment Company Act of 1940, as amended (the “1940 Act”).
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) | Number of Portfolios in Fund Complex Overseen | Other Directorships | |||||
Peter S. Ho* 130 Merchant Street, 22nd Floor Honolulu, Hawaii 96813 Age: 42 | Trustee | Indefinite; Since 5/04 | Vice Chairman and Chief Banking Officer, Bank of Hawaii—Retail Banking (since 2007), Commercial Banking (since 2006) and Investment Services Group (since 2004); Executive Vice President, Bank of Hawaii—Commercial Group (2003-2004); Executive Vice President/Senior Vice President/Vice President, Bank of Hawaii—Corporate Banking (1996-2003). | 12 | Member of the Board of: Rehabilitation Hospital Foundation, Hawaii Chapter of the American Red Cross, Special Olympics of Hawaii, Oceanic Institute, Hawaii Pacific University, Hanahau’oli School, Frederic Duclos Barstow Foundation, Historic Hawaii Foundation, Hawaii Community Foundation, McInerny Foundation, Nature Conservancy of Hawaii, Strong Foundation and University of Hawaii Ahahui Koa Anuenue. |
* | Mr. Ho is an “interested person” of the Trust, as identified by the 1940 Act, because of his employment with the Bank of Hawaii. |
Independent Trustees. The table below sets forth certain information about the Trustees of the Trust who are not “interested persons” of the Trust as defined in the 1940 Act.
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) | Number of Portfolios in Fund Complex Overseen | Other Directorships | |||||
Stanley W. Hong 4976 Poola Street Honolulu, Hawaii 96821 Age: 71 | Trustee | Indefinite; Since 10/92 | Trustee of The King William Charles Lunalilo Trust Estate (since 2001); President of Waste Management of Hawaii, Inc. (2001-2005); Corporate Vice President, Hawaii Area Waste Management (2001-2005); Trustee, President and Chief Executive Officer, The Chamber of Commerce of Hawaii (1996-2001). | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Member of the Board of: First Insurance Co. of Hawaii, Ltd., Lanihau Properties, LLC and Westye Group (Subzero Wolf Hawaii Advisory); Member of the Board of the following non-profit organizations: Chaminade University of Honolulu, Nature Conservancy of Hawaii, PBS Hawaii Foundation, Heald Education, LLC, Child and Family Service, and East West Center Foundation. | |||||
Richard L. Humphreys 970 N Kalaheo Avenue, Suite C110 Kailua, Hawaii 96734 Age: 63 | Trustee | Indefinite; Since 3/05 | President of Hawaii Receivables Management LLC (since 2001); President of Lynk Payment Systems Hawaii LLC (since 2002). | 12 | Member of the Board of: The Castle Group, Inc. and other charitable and civic organizations. |
101
PACIFIC CAPITAL FUNDS
Trustees and Officers, continued
July 31, 2007
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) | Number of Portfolios in Fund Complex Overseen | Other Directorships | |||||
Russell K. Okata 888 Mililani Street, Suite 601 Honolulu, Hawaii 96813 Age: 63 | Trustee and (Since 3/05) Chairman | Indefinite; Since 10/92 | Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO (since 1981); International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO (since 1981). | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (since 1993) and Aquila Three Peaks High Income Fund (since September 2007) (registered investment companies), Chairman of the Royal State Group (since 1988); Member of the Board of: Blood Bank of Hawaii, Public Schools of Hawaii Foundation, and other community organizations. | |||||
Douglas Philpotts 55 Dowsett Avenue Honolulu, Hawaii 96817 Age: 75 | Trustee | Indefinite; Since 10/92 | Retired. Formerly Director, Chairman of the Board and President of Hawaiian Trust Co., Ltd. (until 1994), a predecessor of the Asset Management Group of Bank of Hawaii. | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Trustee of the Strong Foundation (support of programs for Hawaiian youth) (since 1974). | |||||
Oswald K. Stender 711 Kapiolani Boulevard, Suite 1250 Honolulu, Hawaii 96813 Age: 76 | Trustee | Indefinite; Since 10/92 | Trustee, Office of Hawaiian Affairs (since 1999); Director, Hawaiian Electric Industries, Inc. (public utility holding company) (1993-2004). | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Director of Grace Pacific Corp.; Member of Advisory Board of Hawaiian Telecom Communications, Inc.; former Trustee of the Bernice Pauahi Bishop Estate (operation of school for children of Hawaiian ancestry) (1990-1999); Board member of various housing and real estate associations and community organizations. |
The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling (800) 258-9232.
102
PACIFIC CAPITAL FUNDS
Trustees and Officers, continued
July 31, 2007
Officers. The table below sets forth certain information about each of the Trust’s officers.
Name, Address and Age | Position(s) Held | Term of Office | Principal Occupation(s) | |||
Robert I. Crowell 130 Merchant Street Suite 240 Honolulu, Hawaii 96813 Age: 59 | President | Indefinite; Since 7/06 | Executive Vice President, Bank of Hawaii (since 2002); Senior Vice President, Bank of Hawaii (1993-2002). | |||
Jennifer Lam 130 Merchant Street Suite 240 Honolulu, Hawaii 96813 Age: 30 | Senior Vice President | Indefinite; Since 9/05 | Vice President, Bank of Hawaii (since 2005); Investment Analyst, International Finance Corporation, World Bank Group (2002-2005); Investment Banking Analyst, Credit Suisse First Boston (2000-2002). | |||
George Stevens 3435 Stelzer Road Columbus, Ohio 43219 Age: 56 | Chief Compliance Officer | Indefinite; Since 2/06 | Vice President, CCO Services, Citi Fund Services (since 1996). | |||
Christopher E. Sabato 3435 Stelzer Road Columbus, Ohio 43219 Age: 38 | Treasurer | Indefinite; Since 9/05 | Vice President, Fund Administration, Citi Fund Services (since 1993). | |||
Kinga Kapuscinski 100 Summer Street, Suite 1500 Boston, Massachusetts 02110 Age: 35 | Secretary | Indefinite; Since 9/06 | Senior Counsel, Citi Fund Services (since 2004); Associate, Goodwin Procter LLP (2001-2004). |
* | Each officer may have served in various other capacities for the same organization during the length of time served. |
103
PACIFIC CAPITAL FUNDS
Board Determinations
Sub-Advisory Agreements Approvals
During the period from February 2007 through July 2007, the Board of Trustees approved two Sub-Advisory Agreements among the Trust, the Asset Management Group of Bank of Hawaii (the “Adviser” or “AMG”) and a sub-adviser (each a “Sub-Advisory Agreement”). In March 2007 the Board approved a new Sub-Advisory Agreement with Chicago Equity Partners, LLC (“CEP”) to sub-advise the Growth Stock Fund, the Growth and Income Fund, and the Value Fund. In May 2007 the Board approved a new Sub-Advisory Agreement with Mellon Equity Associates, LLP (“Mellon Equity”) to sub-advise the “value” portion of the Small Cap Fund. Each Sub-Advisory Agreement has an initial two-year term. The agreements were approved following the recommendation of the Trust’s Independent Trustees. The information, material facts and conclusions that formed the basis for the Independent Trustees’ recommendations and the Board’s subsequent approvals are described below.
In determining whether to approve the new Sub-Advisory Agreements, the Independent Trustees evaluated information provided by the Adviser and the Sub-Advisers in accordance with section 15(c) of the Investment Company Act as described below. The Board considered among other things various data and information regarding (i) the nature, extent and quality of services to be provided to the Funds and their shareholders by the respective Sub-Advisers; (ii) the investment performance of the Funds and the Sub-Advisers; (iii) the costs of services to be provided and profits to be realized by the Sub-Advisers and their affiliates from their relationships with the relevant Funds; (iv) the extent to which economies of scale would be realized by the Sub-Advisers as the Funds’ assets grow; and (v) whether fee levels reflect any such economies of scale for the benefit of the Funds’ shareholders.
The Independent Trustees received assistance and advice regarding legal and industry standards from their independent counsel. They discussed the approvals with management representatives and in private sessions with independent legal counsel at which no representatives of management were present. In deciding to recommend approval of the new Sub-Advisory Agreements, the Independent Trustees and the Board did not identify any single or particular information that, in isolation, was the controlling factor. This summary describes the most important, but not all, of the factors considered by the Independent Trustees and the Board.
Based on their reviews, including consideration of each of the factors referred to above, the Board (including all of the Independent Trustees) determined in each case, in the exercise of their business judgment, that the relevant sub-advisory fees of the Funds were fair, and that entering into the new Sub-Advisory Agreements was in the best interest of the relevant Fund’s shareholders.
Chicago Equity Partners, LLC
After considerable discussion, the Board of Trustees and management of the Trust and AMG jointly concluded that the past performance of the Growth Stock, Growth and Income and Value Funds had not met expectations. This determination coincided with an internal assessment by management of AMG’s services to the Trust. After a thorough review of these matters, management of AMG determined that its staff should focus on providing advisory services with respect to the Trust’s fixed income portfolios and should discontinue direct day-to-day management of equity portfolios in favor of selecting and monitoring equity sub-advisers. Accordingly, management of the Trust and AMG recommended to the Board that the Trust enter into a Sub-Advisory Agreement with CEP with respect to the Funds.
On March 19, 2007, the Board, including a majority of the Independent Trustees, met in person at a meeting called for the purpose of considering, among other things, the proposed Sub-Advisory Agreement for the Funds. At the meeting, representatives of AMG and CEP met in person with the Board and described the proposed
104
PACIFIC CAPITAL FUNDS
Board Determinations, continued
services under the Sub-Advisory Agreement, the anticipated benefits to the Funds and the proposed fees. The Board also evaluated a variety of information provided by CEP in accordance with Section 15(c) of the Investment Company Act; a report prepared by AMG based on its review of CEP’s performance record and capabilities; the Board’s past experience with CEP since October 2006 as the sole sub-adviser to the Mid-Cap Fund series of the Trust and from July 2003 to October 2006 as a participant in Bankoh Investment Partners, LLC (a joint venture with Bank of Hawaii), which acted as the sub-adviser to the Mid-Cap Fund; and information provided to the Board by CEP in June 2006 and in December 2006 (in connection with the Board’s consideration of Affiliated Managers Group, Inc.’s acquisition of a majority interest in CEP).
The Board considered the nature, extent and quality of the services expected to be provided by CEP to the Funds. In reviewing such services, the Board considered information regarding the experience and professional background of the portfolio management team at CEP; the track record of CEP in managing institutional large cap value, core and growth strategies; the qualifications and capabilities of the portfolio managers and other personnel who would have the principal investment responsibility for the Funds’ investments; the investment philosophy and decision-making processes of those professionals; the capability and integrity of CEP’s senior management and staff; the quality of CEP’s services with respect to regulatory compliance and compliance with client investment policies and restrictions; and the business reputation, financial condition and operational stability of CEP. The Board also considered management’s and AMG’s familiarity with and respect for the CEP organization and the close working relationship that had evolved between AMG and CEP as a result of their previous collaboration in managing the Mid-Cap Fund. The Board determined that CEP could provide high quality services to the Funds and that CEP’s resources and the investment expertise of its professionals in managing large-cap equities could benefit each Fund.
The Trustees also reviewed the investment performance of each Fund over the one-year, three-year, five-year, and ten-year periods (or since inception period, as applicable) ended December 31, 2006 (the “Equity Performance Periods”), as compared to the total returns of each Fund’s relevant benchmark index and a peer group of comparable funds selected by eVestment Alliance (an industry research firm that ranks strategies based on total return performance). They compared this information with CEP’s composite returns for accounts utilizing the styles that CEP proposed to apply in managing the Funds.
With respect to the Growth Stock Fund, the Board noted that the Fund underperformed its proposed benchmark (the S&P 500/Citigroup Growth Index), and was in the bottom 50% of a peer group of comparable funds selected by eVestment Alliance, for each of the Equity Performance Periods. The Board also noted that CEP’s large-cap growth strategy outperformed the S&P 500/Citigroup Growth Index and was in the top 50% of the eVestment Alliance peer group during each of the Equity Performance Periods.
With respect to the Growth and Income Fund, the Board noted that the Fund underperformed its benchmark, the S&P 500 Index, and was in the bottom 75% of its eVestment Alliance peer group, for each of the Equity Performance Periods. The Board also noted that CEP’s large-cap core select strategy outperformed the S&P 500 Index for each of the Equity Performance Periods and was in the top 25% of its eVestment Alliance peer group for most of the Equity Performance Periods.
With respect to the Value Fund, the Board noted that the Fund underperformed its benchmark, the Russell 1000 Value Index, for most of the Equity Performance Periods (except for the one-year Equity Performance Period), and was in the top 50% of its eVestment Alliance peer group during the recent Equity Performance Periods but in the bottom 50% of its eVestment Alliance peer group during the longer-term Equity Performance Periods. The Board also noted that CEP’s large-cap value strategy outperformed the Russell 1000 Value Index, and was near the top 25% of its eVestment Alliance peer group, during most of the Equity Performance Periods.
105
PACIFIC CAPITAL FUNDS
Board Determinations, continued
Based on this review, the Board determined that the short-term and longer-term performance record of CEP indicated that CEP’s management of the Funds could benefit each Fund and its shareholders. The Board also noted CEP’s discipline and consistency over time in applying its investment approach in managing portfolios, and concluded that CEP’s investment approach and philosophy could potentially enhance each Fund’s performance.
In considering the proposed sub-advisory fee, the Board noted that the total management fee to be paid by each Fund would not be affected as a result of the addition of CEP, as the current advisory fee paid by each Fund to AMG would be reduced to ensure that the total management fees previously approved by each Fund’s shareholders would be unchanged. The Board noted that the management fees paid by the Funds had been compared to fees paid by other similarly managed mutual funds in connection with its approval of the Investment Advisory Agreement with AMG in September 2006. The Board also reviewed a sample CEP fee schedule that reflected the standard fees other institutional accounts with similar objectives and policies would expect to pay for a portfolio invested in CEP’s large-cap and mid-cap core strategies, and noted that CEP’s proposed fees represented a discount from its published fee schedule. After reviewing these matters, the Board concluded that the proposed sub-advisory fee to be paid to CEP was fair and reasonable to each Fund and its shareholders.
The Board also evaluated the projected benefits to CEP of the Funds’ sub-advisory relationship, including the projected profitability of its relationship with the Funds. The Board noted that although CEP’s sub-advisory fee did not have breakpoints and thus would not reflect economies of scale, if any, the fees CEP would receive from each Fund would be only one step higher than its lowest breakpoint for other institutional clients and would thus reflect the economies of scale of its overall investment management business. The Board considered that CEP does not generally compute profitability on an account or fund basis and that CEP would not receive significant ancillary benefits as a result of its relationship with the Funds, other than the benefit of bundled research of the type normally provided by brokers executing transactions on behalf of its clients and the ability to refer to its sub-advisory relationship with the Funds. The Board concluded that CEP’s projected profit margin with respect to its relationship with the Funds would be within the range of acceptable industry standards.
Based on its review, including its consideration of each of the factors referred to above, the Board (including all of the Independent Trustees) determined, in the exercise of its business judgment, that CEP was capable of providing high quality investment sub-advisory services to each Fund that would be beneficial to each Fund and its shareholders, that CEP’s proposed sub-advisory fee was fair, and that approval of the Sub-Advisory Agreement with CEP is in the best interest of each Fund and its shareholders.
Mellon Equity Associates, LLP
In early 2007, Nicholas-Applegate Capital Management (“Nicholas-Applegate”), the sub-adviser for the “value” portion of the Small Cap Fund (the “Value Sleeve”), informed the Adviser that management of Nicholas-Applegate had decided to exit the “value” style equity management business. Accordingly, the Board instructed the Adviser to conduct a search for a new manager for the Value Sleeve and, based on its review of potential sub-advisers (which included on-site due diligence visits to the final three candidates), the Adviser recommended to the Board that Mellon Equity be appointed as a sub-adviser to the Fund.
The Board, including the Independent Trustees, approved the Sub-Advisory Agreement with Mellon Equity at a meeting of the Board held on May 21, 2007. The Board approved the new Sub-Advisory Agreement based on a variety of factors relating to Mellon Equity’s ability to provide services to the Value Sleeve. In reviewing the nature, extent and quality of the services expected to be provided by Mellon Equity with respect to the Value Sleeve, the Board considered information regarding the experience and professional background of the portfolio management team at Mellon Equity; the track record of Mellon Equity in managing institutional portfolios with
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PACIFIC CAPITAL FUNDS
Board Determinations, continued
its small cap value strategy; the qualifications and capabilities of the portfolio managers and other personnel who would have principal investment responsibility for the Value Sleeve’s investments; the investment philosophy and decision-making processes of those professionals; the capability and integrity of Mellon Equity’s senior management and staff; the quality of Mellon Equity’s services with respect to regulatory compliance and compliance with client investment policies and restrictions; and the financial condition and operational stability of Mellon Equity, Mellon Financial Corporation (its parent at the time), and its anticipated parent The Bank of New York Mellon Corporation.
The Board considered a report prepared by the Adviser based on its due diligence examination of Mellon Equity. The Trustees noted that the services Mellon Equity would provide pursuant to the Sub-Advisory Agreement were substantially the same as those currently provided by Nicholas-Applegate with respect to the Value Sleeve, and that the Adviser would retain primary responsibility for oversight of the Fund’s investment sub-advisers and the allocation of assets to and among such sub-advisers. The Board concluded that Mellon Equity could provide high quality services to the Fund and that Mellon Equity’s resources and the investment expertise of its professionals in managing small cap value equities could benefit the Fund.
The Board also considered the then-pending merger between the parent company of Mellon Equity, Mellon Financial Corporation, and The Bank of New York Company, Inc. (the “Mellon Transaction”). The Board noted that no changes were planned to the portfolio management team or investment approach upon completion of the Mellon Transaction. In addition, the Board noted that, in accordance with the requirements of the Investment Company Act applicable to assets in the custody of an affiliate of a fund’s sub-adviser, the Fund’s independent public accountants would conduct an examination of the Value Sleeve’s securities at least three times during each fiscal year and that the cost of such examination was reasonable. The Board concluded that the Mellon Transaction would not adversely impact the Fund.
The Trustees also compared the investment performance over the one-year, three-year and five-year periods ended December 31, 2006 (the “Small Cap Performance Periods”) of the small cap value strategy portion of the Fund’s portfolio with the total returns of the Russell 2000 Value Index, returns of a peer group of comparable funds selected by eVestment Alliance, composite returns of small cap value accounts managed by Mellon Equity, and composite returns of small cap value accounts managed by the other two finalists. The Trustees noted that Mellon Equity outperformed the peer group median and the Russell 2000 Value Index over the longer-term, although it underperformed the peer group median and the Russell 2000 Value Index over the shorter-term period. The Trustees further noted that Mellon Equity’s small cap value strategy achieved the highest risk-adjusted returns of the three final candidates. The Board also noted Mellon Equity’s discipline and consistency over time in applying its investment approach in managing portfolios. Based on this review, the Board determined that Mellon Equity’s management of the Fund could benefit the Fund and its shareholders.
In considering Mellon Equity’s proposed sub-advisory fee, the Board noted that the addition of Mellon Equity would not change the total management fee paid by the Fund. The Board noted that the total management fees paid by the Fund had been compared to fees paid by other similarly managed mutual funds in connection with the Board’s annual approval of the Investment Advisory Agreement with AMG and the Sub-Advisory Agreement with Nicholas-Applegate in September 2006. The Board also noted that Mellon Equity’s proposed fees represented a significant discount from its published fee schedule for other equity accounts managed using mid-cap and small-cap strategies. After reviewing these matters, the Board concluded that the proposed sub-advisory fee to be paid to Mellon Equity with respect to the Value Sleeve was fair and reasonable to the Fund and its shareholders.
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PACIFIC CAPITAL FUNDS
Board Determinations, continued
The Board also evaluated the projected benefits to Mellon Equity of its sub-advisory relationship with the Fund, including the projected profitability of its relationship with the Fund. The Board noted that Mellon Equity’s sub-advisory fee included breakpoints and, therefore, would reflect economies of scale (if any). The Board considered that Mellon Equity would not receive significant ancillary benefits as a result of its relationship with the Fund, other than the benefit of bundled research of the type normally provided by brokers executing transactions on behalf of its clients and the ability to refer to its sub-advisory relationship with the Fund. The Board concluded that Mellon Equity’s projected profit margin with respect to its relationship with the Fund would be within the range of acceptable industry standards.
Based on its review of the materials presented at the meeting, including its consideration of each of the factors referred to above, the Board (including all of the Independent Trustees) determined, in the exercise of its business judgment, that Mellon Equity was capable of providing high quality investment sub-advisory services to the Fund that would be beneficial to the Fund and its shareholders, that Mellon Equity’s proposed sub-advisory fee was fair, and that approval of the Sub-Advisory Agreement was in the best interest of the Fund and its shareholders.
Concurrently with its approval of the new Sub-Advisory Agreement with Mellon Equity, the Board approved (i) an amendment to the Sub-Advisory Agreement with Nicholas-Applegate to reflect the termination of Nicholas-Applegate’s management services for the Value Sleeve, and (ii) an amendment to the Investment Advisory Agreement with AMG to reflect the engagement of Mellon Equity and AMG’s revised fees with respect to the Value Sleeve.
108
PACIFIC CAPITAL FUNDS
Additional Information
July 31, 2007
Expense Examples
As a shareholder of the Pacific Capital Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and/or service fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Pacific Capital Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from February 1, 2007 through July 31, 2007.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 2/1/07 | Ending Account Value 7/31/07 | Expense Paid During Period* 2/1/07 - 7/31/07 | Expense Ratio During Period** 2/1/07 - 7/31/07 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 1,199.90 | $ | 8.73 | 1.60 | % | |||||
Class B | 1,000.00 | 1,195.20 | 12.79 | 2.35 | ||||||||||
Class C | 1,000.00 | 1,194.90 | 12.79 | 2.35 | ||||||||||
Class Y | 1,000.00 | 1,200.60 | 7.37 | 1.35 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 1,105.20 | 6.94 | 1.33 | |||||||||
Class B | 1,000.00 | 1,101.00 | 10.84 | 2.08 | ||||||||||
Class C | 1,000.00 | 1,101.20 | 10.84 | 2.08 | ||||||||||
Class Y | 1,000.00 | 1,107.10 | 5.64 | 1.08 | ||||||||||
Small Cap Fund | Class A | 1,000.00 | 971.30 | 7.77 | 1.59 | |||||||||
Class B | 1,000.00 | 967.50 | 11.37 | 2.33 | ||||||||||
Class C | 1,000.00 | 967.60 | 11.37 | 2.33 | ||||||||||
Class Y | 1,000.00 | 972.30 | 6.50 | 1.33 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 1,021.80 | 5.46 | 1.09 | |||||||||
Class C | 1,000.00 | 1,017.90 | 9.21 | 1.84 | ||||||||||
Class Y | 1,000.00 | 1,022.30 | 4.21 | 0.84 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 997.90 | 6.44 | 1.30 | |||||||||
Class B | 1,000.00 | 994.40 | 10.19 | 2.06 | ||||||||||
Class C | 1,000.00 | 993.20 | 10.18 | 2.06 | ||||||||||
Class Y | 1,000.00 | 999.00 | 5.20 | 1.05 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 977.70 | 6.33 | 1.29 | |||||||||
Class B | 1,000.00 | 973.60 | 9.98 | 2.04 | ||||||||||
Class C | 1,000.00 | 974.30 | 9.99 | 2.04 | ||||||||||
Class Y | 1,000.00 | 979.10 | 5.10 | 1.04 | ||||||||||
Value Fund | Class A | 1,000.00 | 991.30 | 6.17 | 1.25 | |||||||||
Class B | 1,000.00 | 988.30 | 9.91 | 2.01 | ||||||||||
Class C | 1,000.00 | 988.40 | 9.91 | 2.01 | ||||||||||
Class Y | 1,000.00 | 992.60 | 4.99 | 1.01 |
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PACIFIC CAPITAL FUNDS
Additional Information, continued
July 31, 2007
Beginning Account Value 2/1/07 | Ending Account Value 7/31/07 | Expense Paid During Period* 2/1/07 - 7/31/07 | Expense Ratio During Period** 2/1/07 - 7/31/07 | |||||||||||
High Grade Core Fixed Income Fund | Class A | $ | 1,000.00 | $ | 1,014.50 | $ | 4.65 | 0.93 | % | |||||
Class B | 1,000.00 | 1,011.80 | 8.33 | 1.67 | ||||||||||
Class C | 1,000.00 | 1,011.80 | 8.33 | 1.67 | ||||||||||
Class Y | 1,000.00 | 1,015.70 | 3.35 | 0.67 | ||||||||||
Tax-Free Securities Fund | Class A | 1,000.00 | 1,010.60 | 4.59 | 0.92 | |||||||||
Class B | 1,000.00 | 1,006.90 | 8.31 | 1.67 | ||||||||||
Class C | 1,000.00 | 1,006.90 | 8.31 | 1.67 | ||||||||||
Class Y | 1,000.00 | 1,011.80 | 3.34 | 0.67 | ||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | 1,000.00 | 1,018.20 | 3.85 | 0.77 | |||||||||
Class C | 1,000.00 | 1,015.50 | 7.60 | 1.52 | ||||||||||
Class Y | 1,000.00 | 1,019.40 | 2.60 | 0.52 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,012.60 | 4.94 | 0.99 | |||||||||
Class C | 1,000.00 | 1,008.90 | 8.62 | 1.73 | ||||||||||
Class Y | 1,000.00 | 1,014.80 | 3.65 | 0.73 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,022.40 | 3.26 | 0.65 | |||||||||
Class B | 1,000.00 | 1,018.70 | 7.01 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,018.70 | 7.01 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,024.70 | 2.01 | 0.40 |
* | Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
** | Annualized. |
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PACIFIC CAPITAL FUNDS
Additional Information, continued
July 31, 2007
Hypothetical Example
The table below provides information about hypothetical account values and hypothetical expenses based on each Pacific Capital Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 2/1/07 | Ending Account Value 7/31/07 | Expense Paid During Period* 2/1/07 - 7/31/07 | Expense Ratio During Period** 2/1/07 - 7/31/07 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 1,016.86 | $ | 8.00 | 1.60 | % | |||||
Class B | 1,000.00 | 1,013.14 | 11.73 | 2.35 | ||||||||||
Class C | 1,000.00 | 1,013.14 | 11.73 | 2.35 | ||||||||||
Class Y | 1,000.00 | 1,018.10 | 6.76 | 1.35 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 1,018.20 | 6.66 | 1.33 | |||||||||
Class B | 1,000.00 | 1,014.48 | 10.39 | 2.08 | ||||||||||
Class C | 1,000.00 | 1,014.48 | 10.39 | 2.08 | ||||||||||
Class Y | 1,000.00 | 1,019.44 | 5.41 | 1.08 | ||||||||||
Small Cap Fund | Class A | 1,000.00 | 1,016.91 | 7.95 | 1.59 | |||||||||
Class B | 1,000.00 | 1,013.24 | 11.63 | 2.33 | ||||||||||
Class C | 1,000.00 | 1,013.24 | 11.63 | 2.33 | ||||||||||
Class Y | 1,000.00 | 1,018.20 | 6.66 | 1.33 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 1,019.39 | 5.46 | 1.09 | |||||||||
Class C | 1,000.00 | 1,015.67 | 9.20 | 1.84 | ||||||||||
Class Y | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 1,018.35 | 6.51 | 1.30 | |||||||||
Class B | 1,000.00 | 1,014.58 | 10.29 | 2.06 | ||||||||||
Class C | 1,000.00 | 1,014.58 | 10.29 | 2.06 | ||||||||||
Class Y | 1,000.00 | 1,019.59 | 5.26 | 1.05 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 1,018.40 | 6.46 | 1.29 | |||||||||
Class B | 1,000.00 | 1,014.68 | 10.19 | 2.04 | ||||||||||
Class C | 1,000.00 | 1,014.68 | 10.19 | 2.04 | ||||||||||
Class Y | 1,000.00 | 1,019.64 | 5.21 | 1.04 | ||||||||||
Value Fund | Class A | 1,000.00 | 1,018.60 | 6.26 | 1.25 | |||||||||
Class B | 1,000.00 | 1,014.83 | 10.04 | 2.01 | ||||||||||
Class C | 1,000.00 | 1,014.83 | 10.04 | 2.01 | ||||||||||
Class Y | 1,000.00 | 1,019.79 | 5.06 | 1.01 | ||||||||||
High Grade Core Fixed Income Fund | Class A | 1,000.00 | 1,020.18 | 4.66 | 0.93 | |||||||||
Class B | 1,000.00 | 1,016.51 | 8.35 | 1.67 | ||||||||||
Class C | 1,000.00 | 1,016.51 | 8.35 | 1.67 | ||||||||||
Class Y | 1,000.00 | 1,021.47 | 3.36 | 0.67 |
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PACIFIC CAPITAL FUNDS
Additional Information, continued
July 31, 2007
Beginning Account Value 2/1/07 | Ending Account Value 7/31/07 | Expense Paid During Period* 2/1/07 - 7/31/07 | Expense Ratio During Period** 2/1/07 - 7/31/07 | |||||||||||
Tax-Free Securities Fund | Class A | $ | 1,000.00 | $ | 1,020.23 | $ | 4.61 | 0.92 | % | |||||
Class B | 1,000.00 | 1,016.51 | 8.35 | 1.67 | ||||||||||
Class C | 1,000.00 | 1,016.51 | 8.35 | 1.67 | ||||||||||
Class Y | 1,000.00 | 1,021.47 | 3.36 | 0.67 | ||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | 1,000.00 | 1,020.98 | 3.86 | 0.77 | |||||||||
Class C | 1,000.00 | 1,017.26 | 7.60 | 1.52 | ||||||||||
Class Y | 1,000.00 | 1,022.22 | 2.61 | 0.52 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,019.89 | 4.96 | 0.99 | |||||||||
Class C | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||
Class Y | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,021.57 | 3.26 | 0.65 | |||||||||
Class B | 1,000.00 | 1,017.85 | 7.00 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,017.85 | 7.00 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,022.81 | 2.01 | 0.40 |
* | Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. |
** | Annualized. |
Proxy Voting
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-258-9232. The information also is included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.pacificcapitalfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds’ website at www.pacificcapitalfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov.
Portfolio Holdings Information
The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission’s website at www.sec.gov. You may also review, or for a fee, copy those documents by visiting the Securities and Exchange Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-202-551-8090.
112
Item 2. | Code of Ethics. |
(a) The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.
(b) During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.
Item 3. | Audit Committee Financial Expert. |
3(a)(1) The Registrant’s Board of Trustees has determined that no member of the Board’s audit committee qualifies as an audit committee financial expert (“ACFE”).
3(a)(2) The audit committee has determined that no member is “independent” for purposes of this Item 3 of Form N-CSR.
3(a)(3) After evaluating the matter, the Board concluded that it was not necessary to add a Trustee to the Board who qualified as an ACFE, as the business experience of the current independent members of the Board was adequate to exercise their oversight responsibilities.
Item 4. | Principal Accountant Fees and Services. |
2007 | 2006 | |||||
Audit Fees | $ | 133,500 | $ | 139,725 | ||
Audit-Related Fees | $ | 6,500 | $ | 4,300 | ||
Tax Fees | $ | 56,400 | $ | 54,090 | ||
All Other Fees | $ | 0 | $ | 0 |
Nature of services regarding Audit-Related Fees:
2007: | Consent on N-1A charges: $4,500 plus $2,000 for 17f-2 count | |
2006: | Consent on N-1A charges |
Nature of services regarding Tax Fees:
2007: | Preparation of federal income tax and U.S. excise tax returns; preparation of Hawaiian corporate tax returns; excise tax distribution review. | |
2006: | Preparation of federal income tax and U.S. excise tax returns; preparation of Hawaiian corporate tax returns; excise tax distribution review. |
(e)(1) Registrant’s audit committee meets with the principal accountants and management to review and pre-approve all audit services to be provided by the principal accountants. The audit committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Funds by the auditor, including the fees therefore and has not adopted pre-approval policies and procedures as described in Rule 2-01 (c)(7)(i)(B) of Reg. S-X.
(e)(2) None of the services summarized in (a)-(d), above, were approved by the Audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) For the fiscal years ended July 31, 2007 and July 31, 2006, Non-Audit Fees billed to the Funds for services provided to the Funds and any of the Funds’ investment advisers and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Funds for each of the last two fiscal years of the Funds, totaled approximately $62,900 for 2007 and $58,390 for 2006.
(h) Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
Not applicable.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11. | Controls and Procedures. |
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Exhibits. |
(a)(1) | The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) are attached hereto. | |
(a)(3) | Not applicable. | |
(b) | Certifications pursuant to Rule 30a-2(b) are furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Pacific Capital Funds | |
By (Signature and Title)* | /s/ Robert I. Crowell | |
Robert I. Crowell, President |
Date 9/26/07
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Robert I. Crowell | |
Robert I. Crowell, President |
Date 9/26/07
By (Signature and Title)* | /s/ Christopher E. Sabato | |
Christopher E. Sabato, Treasurer |
Date 9/26/07
* | Print the name and title of each signing officer under his or her signature. |