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: 7/31/08
Item 1. | Reports to Stockholders. |
Table of Contents
Letter to Shareholders
Page 1
Fund Performance Review
Page 3
Statements of Assets and Liabilities
Page 31
Statements of Operations
Page 34
Statements of Changes in Net Assets
Page 37
Schedules of Portfolio Investments
Page 45
Notes to Financial Statements
Page 77
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 105
Proxy Voting and Portfolio Holdings Information
Page 108
Letter to Shareholders
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), which has approximately $5 billion in mutual fund assets under management. 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:
• | Chicago Equity Partners, LLC, which specializes in domestic equity markets, serves as Sub-Adviser to the Pacific Capital Mid-Cap Fund, Pacific Capital Growth Stock Fund, Pacific Capital Growth and Income Fund and Pacific Capital Value Fund. |
• | First State Investments International, Limited, a specialist in single-country, regional and sector-specific investments, serves as Sub-Adviser to the Pacific Capital New Asia Growth Fund. |
• | Hansberger Global Investors, Inc., a specialist in international equity investments, serves as Sub-Adviser to the Pacific Capital International Stock Fund. |
• | Nicholas-Applegate Capital Management, which specializes in global, international and domestic equity and special strategy management acts as one of three Sub-Advisers to the Pacific Capital Small Cap Fund, managing the U.S. Systematic Small Cap Core portion of the portfolio. |
• | Wellington Management Company, LLP, one of the largest independent investment management firms in the world with more than $550 billion in assets, also serves as a Sub-Adviser to the Pacific Capital Small Cap Fund, managing the Small Cap Growth portion of the portfolio. |
• | Mellon Capital Management Corporation, with more than $200 billion in assets, manages the Small Cap Value portion of the portfolio as the third Sub-Adviser for the Pacific Capital Small Cap Fund. |
Annual Review
The 12 months between August 2007 and July 2008 were difficult for the economy, as a number of headwinds led to a pronounced slowdown in U.S. economic growth. Gross domestic product expanded at a 4.8% rate during the third calendar quarter of 2007, but contracted slightly during 2007’s fourth quarter and remained sluggish in the early months of 2008.
Troubles in the credit markets contributed to economic weakness. Overextended homebuyers increasingly defaulted on mortgages, which in turn led to defaults on mortgage-backed bonds. Many leading financial institutions were forced to write down billions of dollars in investment losses as a result. Investors and policymakers, worried that some financial institutions may not be able to meet their obligations, became concerned about the stability of the financial system. Meanwhile, lenders became highly cautious about extending credit, and a credit and liquidity crunch resulted.
The Federal Reserve acted aggressively to restore liquidity and shore up the financial system. The Fed reduced its target short-term interest rate from 5.25% to 2.00% in order to make cash more readily available. It also extended credit to a wider range of financial institutions than it had in the past, orchestrated a buyout of troubled investment bank Bear Stearns, and acted to solidify investors’ confidence in faltering Government-Sponsored Enterprises Fannie Mae and Freddie Mac.
The housing market remained in a deep slump throughout this period. Falling home values reduced consumers’ purchasing power by diminishing their borrowing capacity and depressed parts of the economy related to housing. Meanwhile, prices on energy, food and other commodities shot higher through early July as demand outstripped supply. Consumers, squeezed by higher prices, lower home values and a weakening job market, cut back their spending, which accounts for two-thirds of U.S. economic activity, and thus weighed heavily on growth.
Not all economic news was negative during the fiscal year. A weakening dollar led to a surge in exports, as U.S. companies’ goods and services became more competitive abroad. Government stimulus checks, which Americans received beginning in May, provided a temporary boost to consumer spending. Those two factors helped propel GDP to 3.3% growth during the second quarter of 2008, according to preliminary figures.
Stocks enter bear territory
Investors’ worries about the economic slowdown and problems in the financial system caused the S&P 500 index to decline 11.09% for this 12-month period. Small-cap stocks as measured by the Russell 2000 fell 6.71%, while the MSCI EAFE Index of 21 developed foreign stock markets lost 14.58%.
During the early part of the period, through early October 2007, stocks climbed. Many investors believed the economy could escape the housing slowdown without serious harm, and were encouraged by strong profits from non-financial corporations. Declining oil prices during this early part of the period also boosted the stock market.
Stocks subsequently fell steadily, however, as the sub-prime mortgage crisis and the resulting credit crunch unfolded, commodity prices skyrocketed, the housing recession deepened and the job market weakened. The S&P 500 lost more than 20% of its value between its peak on October 9 and its low point on July 15, meeting the technical definition for a bear market.
Financial stocks led the decline. The financial sector in aggregate lost nearly a third of its value during the 12-month period, as investors, worried about large write-downs and the credit market’s troubles, fled financial stocks. Telecommunications, industrial and consumer discretionary stocks also performed poorly. Investors favored the defensive nature of consumer staples stocks, helping that sector lead the market for the period. Meanwhile, high commodity prices buoyed energy and materials stocks.
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.)
With regard to style, growth stocks generally outperformed value stocks. Financial stocks comprise a much larger portion of value indices than growth indices, so their losses dragged down value’s performance. The Russell 3000 Growth Index, which measures the returns of large, medium-sized and small growth-oriented stocks, lost 6.11% for the period, while its value counterpart fell 14.75%.
Small and large stocks traded market leadership multiple times during this period, as investors tried to gauge the effects of swirling market conditions on various types of companies. Large-cap stocks produced superior returns for much of the period, as investors favored shares of firms with exposure overseas and the ability to self-finance growth. Small stocks overtook their larger counterparts late in the fiscal year, however.
Foreign stocks surged early in the period, led by strong returns from emerging markets in Latin America and Asia, and then declined significantly for the rest of the fiscal year. Signs that the U.S. economic slowdown could spread to overseas markets caused investors to flee foreign stocks, as did a general aversion to risk.
Bond investors favor quality over all else
Concerns about the financial system and the economic outlook caused fixed-income investors to pile into the highest-quality bonds. The bond market as a whole, as measured by the Lehman Brothers Aggregate Bond Index, gained 6.15% during the 12 months under review— but that healthy overall return masked the degree of turmoil and volatility in the fixed-income markets.
Treasury bonds rallied throughout the period, as investors sought a safe haven. Treasury Inflation Protected Securities, which provide shelter from both credit risk and inflation risk, performed especially well. Prices on existing Treasury securities rose substantially, while yields, which move in the opposite direction of bond prices, declined considerably.
Short-term government securities experienced the greatest yield declines, pushed down by reductions in the Fed Funds target rate as well as investors’ desire for liquidity. Indeed, investor concerns about safety and liquidity caused demand for Treasury bills to reach a fever pitch at times.
In other sectors of the bond market, higher-quality sectors outperformed lower-quality sectors across the board. Agency issues outperformed high-quality corporate bonds, and high-quality corporates outperformed high-yield bonds.
Our perspective
We view the current environment with a great deal of caution, as we are concerned about both inflation and economic growth. We have focused on maintaining appropriate asset allocations for a slower economy, while emphasizing high quality in both equities and fixed-income securities.
We would like to take this opportunity to remind investors of the importance of diversification. Proper diversification for your financial goals can help you manage difficult periods in the markets, without sacrificing the growth potential you need to reach long-term objectives.
Thank you for your confidence in Pacific Capital Funds. If you have any questions or would like a Fund prospectus, we encourage you to contact your registered investment professional, call Pacific Capital Funds at (800) 258-9232 or visit our 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 Management (CFS GAM), the consolidated asset management business of the Commonwealth Bank of Australia (CBA) |
• | CFS GAM’S combined investment businesses manage approximately US$148 billion globally |
• | CFS GAM 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, 2008, the Fund returned -5.38% (Class A Shares without sales charge), outperforming its benchmark, the MSCI® AC Far East Free Index1 (excluding Japan), which returned -12.45%.
What were the major factors in the market that influenced the Fund’s performance?
The MSCI® AC Far East Free Index (excluding Japan) underperformed global indices for the year ended July 31, 2008. The MSCI World Index returned -10.38% and the MSCI Emerging Markets Index returned - -4.09% in U.S. dollar terms.
Asian markets were weak on concerns about rising inflationary pressures, driven by the oil price which hit new highs above $140 per barrel. Inflation data in the region was higher than expected and concerns emerged about the prospect of stagflation.
At a sector level Energy, Consumer Staples, Telecom Services and Utilities outperformed the MSCI Far East ex-Japan Index. Energy continued to rise in line with the price of oil while the other sectors benefited as investors moved into more defensive stocks. The cyclical Industrials sector underperformed and Information Technology lagged on poor demand and a weak outlook.
What helped the Fund’s performance?
Positions in Taiwan outperformed the MSCI Far East ex-Japan Index, in particular Uni-President Enterprises (Consumer Staples) and Chunghwa Telecom (Telecom Services) as investors anticipated that a presidential election victory by the KMT would be positive for relations with Mainland China and thus economic growth in Taiwan.†
Several positions in China also performed strongly during the period including Energy company CNOOC, which rallied as the price of oil reached record highs. China Telecom also outperformed as it benefited from the restructuring of the Chinese telecom industry and was expected to gain market share from China Mobile.†
What hurt the Fund’s performance?
On the negative side Lihir Gold (Australia: Materials) declined as the price of gold fell on profit taking and China Resources Enterprise (China: Consumer Discretionary) underperfomed the MSCI Far East ex-Japan Index on concerns over slowing beer consumption in China and loss of market share for its livestock distribution business in Hong Kong. Shinsegae (South Korea: Consumer Staples) lagged on worries about a slow down in the South Korean economy.†
In the Information Technology sector Delta Electronics (Taiwan) and Samsung Electronics (South Korea) both underperformed as demand continued to disappoint.†
What major changes have occurred in the portfolio during the period covered by this report?
Over the year we continued to increase our exposure to companies in the Telecom Services sector, purchasing Chunghwa Telecom (Taiwan), a strong stable integrated telecoms franchise with a growing dividend yield, and Singapore Telecom, which is growing earnings from its investments in emerging market telecom companies and has strong cash generation from Australia and Singapore.†
Elsewhere we purchased Lihir Gold (Australia: Materials) which we believe should benefit from the potential long-term rise in the price of gold, Yuhan Corporation (South Korea: Health Care), a leading pharmaceutical company conservatively run with a strong track record, and Taiwanese Information Technology company Mediatek which was attractively valued due to poor sentiment towards
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.)
technology stocks. We also bought Hong Kong utilities group CLP which we believe offers relatively predictable earnings in a difficult environment and President Chain Store (Taiwan: Consumer Staples) because of its attractive growth profile and the positive outlook following its recent award of Shanghai’s 7-11 franchise.†
We sold Sembcorp Industries (Singapore: Industrials) due to worries on whether the company can execute its growth strategy successfully. We also sold financial stocks Shinhan Financial (South Korea), Standard Chartered (UK) and Cathay Financial (Taiwan) as part of our strategy to reduce exposure to the sector.†
We took profits in China Shenhua (China: Energy) and Kingboard Chemicals (Hong Kong: Information Technology), and sold Hon Hai Precision (Taiwan: Information Technology) on valuation concerns.†
What is your outlook for the Fund?
We remain defensively positioned and are maintaining a strong focus on sustainable cash flows as well as long-term growth prospects.
We are beginning to see some evidence of a slowdown in growth in the region. Although earnings reports remain in line with expectations we anticipate some negative surprises as the year progresses.
Although the current economic outlook remains unclear, we believe the current problems in the credit markets may have a significant impact on the underlying global economy. We remain cautious in the short-term, as we are concerned about the potential for stagflation. However, we believe that careful stock selection in the region could provide positive long-term returns.
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, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -10.34 | % | 14.62 | % | 19.41 | % | 14.14 | % | ||||
Class B Shares** | -9.28 | % | 15.03 | % | 19.70 | % | 14.12 | % | ||||
Class C Shares** | -6.87 | % | 15.80 | % | 19.82 | % | 13.96 | % | ||||
Class Y Shares | -5.14 | % | 16.97 | % | 20.99 | % | 15.04 | % | ||||
MSCI® AC Far East Free Index (excluding Japan) | -12.45 | % | 16.39 | % | 20.42 | % | 13.78 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.77 | % | 2.37 | % | 2.37 | % | 1.37 | % | ||||
With Contractual Waivers | 1.62 | % | 2.37 | % | 2.37 | % | 1.37 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 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 B Shares.
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)
• | Headquartered in Ft. Lauderdale, Florida, with satellite offices in Hong Kong, Moscow, Toronto and Mumbai |
• | 22 investment professionals, 14 nationalities |
• | $8 billion in assets under management, includes $1.5 billion in Advised Managed Accounts of other firms based on HGI models |
• | HGI is an affiliated investment manager of Natixis Global Asset Management (“Natixis”). Natixis has an ownership position of 86%; HGI management and employees own the remaining 14% (both on a fully-diluted basis). |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund outperformed its benchmark, the MSCI® ACWI ex US Index1. The Fund (Class A shares without sales charge) returned -9.03%, while the MSCI® ACWI ex US Index returned -9.30%.
What were the major factors in the market that influenced the Fund’s performance?
Japanese holdings were down 13.4% while the MSCI Japan Index was down 14.8%. Positions in Sumitomo Trust (down 22.3%) and Nitto Denko (down 30.2%) had the largest negative impact on performance.†
European holdings performed better than the MSCI Europe Index, -7.2% to -11.5%.†
Swiss holdings were down 1.6% while the MSCI Switzerland Index was down 6.1%. The Fund benefitted from an average 3.2% overweighting to this market. The Fund’s investment in Roche Holdings had the largest positive impact with an 11.8% return.†
German stocks held by the Fund declined less than the MSCI Germany Index, -2.7% to -2.96%. The Fund’s position in SAP had the largest positive impact with a 16.9% return during the period.†
Holding a different basket of currencies than the MSCI ACWI ex US Index had a positive net effect on the relative return. A 2.2% average overweighting to the Brazilian Real had the largest impact on relative return.†
Cash Reserves, averaging 1.0% of assets, had a small positive net impact.
What major changes have occurred in the portfolio during the period covered by this report?
Change in absolute weights: On an absolute basis, the largest change in the regional weights was a 0.9% decrease to Europe.†
From a sector perspective, the Fund’s largest absolute weighting change was a 1.1% increase to Health Care.†
Change in benchmark-relative weights: Relative to the benchmark, the Fund’s Japanese weight decreased by 1.4% while the Emerging Markets weight increased by 1.0%.†
From a sector perspective, the Materials weight decreased by 1.4% while Industrials increased by 1.1%.†
What is your outlook for the Fund?
As expectations for global economic growth were revised downward for 2008, there may be some negative earnings revisions in the coming quarters. We believe, however, that these expectations may already be reflected in current stock prices. We anticipate that the fallout of the credit crisis, rising inflation, and slower economic growth in some regions may create challenges for equity investors.
Our investment process focuses on stock selection. In keeping with our long time horizon, we put a great deal of effort into researching individual companies: learning as much as possible about each company’s management, policies, challenges, markets, and competition. We believe our diligence leads us to invest in companies which create their own opportunities or that could enjoy improving fundamentals even during this volatile economic period. We believe this process may reward our investors over time.
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. |
† | The composition of the Fund’s portfolio is subject to change. |
6
Pacific Capital International Stock Fund (cont.)
Country Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | Since Inception (12/2/98) | |||||||||
Class A Shares* | -13.79 | % | 9.91 | % | 13.04 | % | 4.58 | % | ||||
Class B Shares** | -13.12 | % | 10.21 | % | 13.28 | % | 4.56 | % | ||||
Class C Shares** | -10.50 | % | 11.05 | % | 13.39 | % | 4.43 | % | ||||
Class Y Shares | -8.80 | % | 12.16 | % | 14.54 | % | 5.47 | % | ||||
MSCI® ACWI ex US Index | -9.30 | % | 13.38 | % | 17.93 | % | 7.74 | %*** | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.60 | % | 2.20 | % | 2.20 | % | 1.20 | % | ||||
With Contractual Waivers | 1.45 | % | 2.20 | % | 2.20 | % | 1.20 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 7/31/08. |
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 charged by the Class A and Class B Shares. 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 experience 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 Capital Management Corporation
• | Small cap value strategy: Utilizes a disciplined process that combines computer modeling techniques, fundamental analysis, and risk management to select stocks which Mellon Capital Management Corporation believes are undervalued |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund returned -11.86% (Class A Shares without sales charge), underperforming the Fund’s benchmark, the Russell 2000® Index1, which returned -6.71%.
What were the major factors in the market that influenced the Fund’s performance?
During the fiscal year, large caps (represented by the S&P 500) returned -11.09%, underperforming small caps (represented by the Russell 2000®) which returned -6.71%. Within the small cap universe, growth outperformed value (the Russell 2000® Value Index2 returned -9.95% versus a -3.76% return for the Russell 2000® Growth Index3). Within the Russell 2000® Growth Index, Energy and Utilities were the strongest performers, while Telecommunication Services, Consumer Discretionary, and Information Technology lagged.
During the past twelve months, volatility has persisted as significant consumer headwinds, continued pressure on corporate profits, lingering credit market distress, and investor perception that the central banks of the world must now combat inflation at the expense of growth, weighed on global markets. Momentum trends generally continued within the equity markets, as the Energy sector maintained its strong leadership on the further run-up in commodity prices. Within the United States, tax rebate checks will probably boost domestic spending temporarily, but have not provided significant relief to the consumer from higher energy, food, and debt costs, and eroding home values.
The Fund’s underperformance was primarily due to weak stock selection within the Financials, Industrials, and Health Care sectors of the market. To a limited extent, these weak sectors were counteracted by relative strength in Materials, Telecomm Services, Consumer Staples, and Consumer Discretionary.†
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 three different investment sub-advisers: small cap value strategy managed by Mellon Capital Management (“MCM”), systematic small cap core strategy managed by Nicholas-Applegate Capital Management (“NACM”), and small cap growth strategy managed by Wellington Management Company (“WMC”). Each sub-adviser utilizes distinct investment styles intended to complement one another, applying its own methodology for selecting investments.
MCM - Small Cap Value
There have been no major changes in this portion of the portfolio during the period. The portfolio remains diversified across many industry groups. Given the continued volatility in the financial markets, a strategy emphasizing strong fundamentals and sector diversification has served clients well over the long run.†
NACM - Systematic Small Cap
All buys and sells in this portion 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. During the period, there were minor changes in sector weights in this sleeve of the portfolio relative to the benchmark
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 | The 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. |
3 | The Russell 2000® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. |
† | 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 (since January 31, 2001)
• | Founded in 1984, Nicholas-Applegate is a diversified global investment firm with more than twenty years of experience delivering value to clients |
• | Nicholas-Applegate offers a broad array of investment solutions built on a consistent investment philosophy |
• | Income & Growth |
• | Systematic Equity |
• | Traditional Global, U.S. and non-U.S. |
• | $13.2 billion in assets under management |
Sub-Advised by Wellington Management Company, LLP (since June 14, 2006)
• | Tracing its roots to 1928, Wellington Management is one of the largest independent investment management firms in the world |
• | Serves as investment manager for clients in over 40 countries |
• | $550 billion in assets under management |
Sub-Advised by Mellon Capital Management Corporation (since January 1, 2008)
• | Founded in 1983, Mellon Capital is headquartered in San Francisco with offices in Pittsburgh, Philadelphia, Boston and Jersey City. |
• | Specializes in domestic and global asset allocation strategies, active and passive equity and fixed income strategies, alternative investments, currency strategies, and overlay strategies |
• | Over $204.2 billion in assets under management (including $25.9 billion in overlay assets) driven by stock selection model. Sector weightings in Industrials and Materials were increased, while the weighting in Consumer Staples was reduced.† |
• | Mellon Equity Associates, L.L.P. has managed a small cap portfolio on behalf of the Pacific Capital Small Cap Fund since June 26, 2007. As of January 1, 2008, Mellon Equity merged with its sister subsidiary Mellon Capital Management. |
WMC- Small Cap Growth Intersection
Changes in this portion 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 portion of the portfolio included Owens & Minor, a distributor of medical and surgical supplies to the acute-care market, WMS Industries, a global provider of gaming products to the legalized gaming industry, and Frontier Oil, a crude oil refiner and wholesale marketer of refined petroleum products. Our largest eliminations included Golden Telecom, a Russia-based telecommunication and internet provider which was acquired during the period, and apparel manufacturer, J. Crew Group.†
What is your outlook for the Fund?
Looking forward, the global economy is expected to slow materially in coming quarters. As surging oil and agricultural prices are boosting inflation rates globally, central banks have become increasingly determined to fight inflation at the expense of economic growth. These negative shocks have come on top of existing concerns about the state of the U.S. economy and the health of the global financial system. In the U.S., the Federal Reserve Bank can find solace in the fact that, thus far, longer-run inflationary expectations are still well anchored. As such, we believe inflation in the U.S. is likely to peak in coming months and should be held back in 2009 by the expected cyclical weakness.
Longer-term, company fundamentals drive stock prices, and we are maintaining our discipline and focus on fundamentals. The sub-advisers will continue to employ a combination of fundamental and quantitative research to identify the most attractive stocks, while maintaining appropriate risk controls relative to the benchmark. 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.†
† | The composition of the Fund’s portfolio is subject to change. |
9
Pacific Capital Small Cap Fund (cont.)
Sector Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | -16.48 | % | -0.79 | % | 9.78 | % | 11.79 | % | ||||
Class B Shares** | -15.36 | % | -0.46 | % | 10.00 | % | 11.70 | % | ||||
Class C Shares** | -13.26 | % | 0.25 | % | 10.12 | % | 11.56 | % | ||||
Class Y Shares | -11.64 | % | 1.26 | % | 11.23 | % | 12.66 | % | ||||
Russell 2000® Index | -6.71 | % | 2.92 | % | 9.75 | % | 7.68 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.83 | % | 2.43 | % | 2.43 | % | 1.43 | % | ||||
With Contractual Waivers | 1.68 | % | 2.43 | % | 2.43 | % | 1.43 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged by Class A and Class B Shares. 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 Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization). 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 Capital Management Corporation are each 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 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 19 years experience |
• | $9.3 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund underperformed its benchmark, the S&P MidCap 400 Index1. The Fund produced a total return of -13.60% (Class A Shares without sales charge), compared to the S&P MidCap 400 Index which returned -4.96% for the same period.
What were the major factors in the market that influenced the Fund’s performance?
The day-to-day turbulence experienced in the latter half of 2007 and the first quarter of 2008 subsided during the second quarter, while recession and inflation fears took hold of the worldwide economy. Gross Domestic Product2 (GDP) growth for the first quarter of 2008 was finalized at 0.9%, up from the fourth quarter 2007 reading of -0.2%. With the advent of stimulus checks in late April, retail sales spiked in May. This is expected to be a temporary elevation and is unlikely to stop another quarter of below-trend growth. The Index of Leading Economic Indicators, an amalgamation of 10 individual financial and economic variables, continued to fall and has not recorded a positive monthly reading since July 2007. Unemployment spiked to 5.5% in May, where it remained in June. This is the highest level since mid-2004, and is expected to continue to rise over the remainder of the year. Consumer confidence plunged to a five-year low, which is nearly half its July 2006 level. Rising food and energy costs continued to hit consumers hard, eroding the value of wage increases. Oil closed the second quarter at $140 per barrel, up approximately 50% in 2008 and the national average for a gallon of gasoline topped $4. The U.S. housing market continued to sag with year-over-year price depreciation of over 8.5% on existing homes, according to the S&P/Case-Schiller Home Price index.3 Housing starts hit their lowest levels since the recession of 1991.
Over the long term, our proprietary quantitative model shows strong discrimination between the lowest and highest rated stocks. The stocks in the highest deciles have an “intersection” of the following qualities:
• | They are trading at a reasonable price versus peer companies; |
• | They are growing at a faster rate; |
• | They have strong balance sheets and have a higher quality aspect to them; and |
• | They are responsible with their capital. |
An intersection of these factor groups was heavily punished during the second half of 2007 and the beginning of 2008. Stocks that had a combination of lower valuations, sustainable earnings growth and higher quality financials underperformed the S&P MidCap 400 Index in this market environment. The Fund held a majority of its weight in these types of stocks. The best performing combination of factors were stocks with high growth expectations, expensive valuations, and lower quality balance sheets. The Mid-Cap Fund holds none of its weight in these stocks. We believe that over the long term, portfolios with these characteristics do not outperform the market. We continue to stick with our discipline of buying companies with improving expectations, high quality balance sheets and reasonable valuations. Over the last several months, we have seen an improvement in our model’s discrimination between the highest ranked stocks and lowest ranked stocks, and have experienced a significant improvement in performance.†
What major changes have occurred in the portfolio during the period covered by the report?
Other than typical re-balancing, no major changes occurred during the period. We are maintaining our disciplined process that has delivered competitive returns. We have analyzed the current underperformance and firmly expect a reversion to characteristics that have worked in the past. In past periods of underperformance, we have “bounced back” as the cycle returned to reward our investment style.
11
Pacific Capital Mid-Cap Fund (cont.)
What is your outlook for the Fund?
We believe dislocations in the markets tend to create opportunity for our alpha4 model to outperform. We believe patient investors could be rewarded as these dislocations revert. Our stock selection model is dynamic and we have adjusted the portfolio to have greater exposures to quality and momentum, while maintaining the value factor exposure. In recessionary environments, we believe the following trends occur:
• | momentum tends to do well as a leading indicator for future performance; |
• | quality also does well as investors believe companies with strong balance sheets will outperform their weaker peers; |
• | value tends to underperform as investors prefer to own companies with the most favorable outlooks. |
Our portfolio is positioned to have a broad exposure to the various factor groups with a tilt toward momentum and quality, while maintaining a value exposure. We believe the cheaper stocks in the universe should begin to see more positive returns when the market believes the economy has hit an inflection point. Going forward, we anticipate that reasonably priced stocks should not detract from performance like they did in the second half of 2007. We believe the portfolio is positioned to do well as our strongest performance tends to follow periods of underperformance.†
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. |
2 | The Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States. |
3 | The S&P/Case-Shiller Home Price Index measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. |
4 | Alpha is a measure of risk, used for a mutual fund with regards to its relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk instead of accepting the market return. |
† | The composition of the Fund’s portfolio is subject to change. |
12
Pacific Capital Mid-Cap Fund (cont.)
Sector Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | Since Inception (12/30/03) | |||||||
Class A Shares* | -18.11 | % | -1.24 | % | 4.69 | % | |||
Class C Shares** | -14.99 | % | -0.18 | % | 5.22 | % | |||
Class Y Shares | -13.36 | % | 0.81 | % | 6.18 | % | |||
S&P MidCap 400 Index | -4.96 | % | 4.98 | % | 8.67 | % | |||
Expense Ratios | Class A | Class C | Class Y | ||||||
Gross | 1.60 | % | 2.20 | % | 1.20 | % | |||
With Contractual Waivers | 1.45 | % | 2.20 | % | 1.20 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged to Class C Shares. 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.
13
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 of other companies in their industries.
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
• | 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 (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 19 years experience |
• | $9.3 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund produced a -7.20% total return (Class A Shares without sales charge), underperforming its benchmark, the S&P 500/Citigroup Growth Index1 which returned -6.29%.
What were the major factors in the market that influenced the Fund’s performance?
The day-to-day turbulence experienced in the latter half of 2007 and the first quarter of 2008 subsided during the second quarter, while recession and inflation fears took hold of the worldwide economy. Gross Domestic Product2 growth for the first quarter of 2008 was finalized at 0.9%, up from the fourth quarter 2007 reading of -0.2%. With the advent of stimulus checks in late April, retail sales spiked in May. This is expected to be a temporary elevation and is unlikely to stop another quarter of below-trend growth. The Index of Leading Economic Indicators, an amalgamation of 10 individual financial and economic variables, continued to fall and has not recorded a positive monthly reading since July 2007. Unemployment spiked to 5.5% in May, where it remained in June. This is the highest level since mid-2004, and is expected to continue to rise over the remainder of the year. Consumer confidence plunged to a five-year low, which is nearly half its July 2006 level. Rising food and energy costs continued to hit consumers hard, eroding the value of wage increases. Oil closed the second quarter at $140 per barrel, up approximately 50% in 2008 and the national average for a gallon of gasoline topped $4. The U.S. housing market continued to sag with year-over-year price depreciation of over 8.5% on existing homes, according to the S&P/Case-Schiller Home Price Index.3 Housing starts hit their lowest levels since the recession of 1991.
During the trailing end of 2007 and the beginning of 2008, stocks that had a combination of lower valuations, sustainable earnings growth and higher quality financials underperformed the S&P 500/Citigroup Growth Index in this market environment. The Fund held a majority of its weight in these types of stocks, which was the primary factor that influenced the Fund’s performance. However, as concerns continued to mount regarding the growth of the economy, investors began to focus on companies that exhibited strong long-term investment fundamentals. Our long standing approach of selecting companies with favorable earnings outlooks, reasonable valuations, high quality financials and strong growth characteristics performed well during this time. The model’s performance was strong during the first quarter of 2008 led by our momentum factor. This factor favors stocks with good prospects for future earnings and strong price performance. The quality factor continued to add value as we expected in this difficult economy. This factor favors companies with good capital discipline and balance sheet quality. Value factors continued to lag as cheap companies have written down book value and cut earnings projections. The strength in the combination of factors in our model led to good discrimination between the highest rated names and the lowest rated stocks. Over 70% of the weight of the portfolio is in the top two ranked quintiles. Our overall relative performance benefited both from the stocks that we owned, as well as avoiding many lower quality names.†
What major changes have occurred in the portfolio during the period covered by the report?
Other than typical re-balancing, no major changes occurred during the period. We are maintaining our disciplined process that has historically helped the Fund to deliver competitive returns.
What is your outlook for the Fund?
The economy continues to slow and market volatility is up as uncertainty has risen. During periods of high uncertainty, we believe our portfolio should outperform the S&P 500/Citigroup Growth Index. Going forward, we believe that reasonably priced stocks should not detract from performance like they did in the second half of 2007. Dislocations in the markets tend to create opportunity for our alpha4 model to outperform. We believe patient investors will be rewarded as these dislocations revert.
Past performance does not guarantee future results.
1 | 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. |
2 | The Gross Domestic Product is the measure of the market value of the goods and services produced by labor and property in the United States. |
3 | The S&P/Case-Shiller Home Price Index measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. |
4 | Alpha is a measure of risk, used for a mutual fund with regards to its relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk instead of accepting the market return. |
† | The composition of the Fund’s portfolio is subject to change. |
14
Pacific Capital Growth Stock Fund (cont.)
Sector Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -12.09 | % | -1.12 | % | 2.00 | % | -0.23 | % | ||||
Class B Shares** | -11.62 | % | -1.12 | % | 2.15 | % | -0.28 | % | ||||
Class C Shares** | -8.87 | % | -0.12 | % | 2.33 | % | -0.43 | % | ||||
Class Y Shares | -6.98 | % | 0.91 | % | 3.35 | % | 0.56 | % | ||||
S&P 500/Citigroup Growth Index | -6.29 | % | 3.21 | % | 5.92 | % | 1.47 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.51 | % | 2.11 | % | 2.11 | % | 1.11 | % | ||||
With Contractual Waivers | 1.36 | % | 2.11 | % | 2.11 | % | 1.11 | % |
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, 2007 and excludes the impact of underlying fund fees and expenses. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 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 B Shares.
The performance of the Pacific Capital Growth Stock Fund is measured against the S&P 500/Citigroup Growth Index, which 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. The index is unmanaged and 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.
15
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 other companies in their industries.
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
• | 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 (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 19 years experience |
• | $9.3 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund returned -10.65% (Class A Shares without sales charge), outperforming its benchmark, the S&P 500 Index1, which returned -11.09%.
What were the major factors in the market that influenced the Fund’s performance?
The day-to-day turbulence experienced in the latter half of 2007 and the first quarter of 2008 subsided during the second quarter, while recession and inflation fears took hold of the worldwide economy. Gross Domestic Product2 (GDP) growth for the first quarter of 2008 was finalized at 0.9%, up from the fourth quarter 2007 reading of -0.2%. With the advent of stimulus checks in late April, retail sales spiked in May. This is expected to be a temporary elevation and is unlikely to stop another quarter of below-trend growth. The Index of Leading Economic Indicators, an amalgamation of 10 individual financial and economic variables, continued to fall and has not recorded a positive monthly reading since July 2007. Unemployment spiked to 5.5% in May, where it remained in June. This is the highest level since mid-2004, and is expected to continue to rise over the remainder of the year. Consumer confidence plunged to a five-year low, which is nearly half its July 2006 level. Rising food and energy costs continued to hit consumers hard, eroding the value of wage increases. Oil closed the second quarter at $140 per barrel, up approximately 50% in 2008 and the national average for a gallon of gasoline topped $4. The U.S. housing market continued to sag with year-over-year price depreciation of over 8.5% on existing homes, according to the S&P/Case-Schiller Home Price Index.3 Housing starts hit their lowest levels since the recession of 1991.
As concerns continued to mount regarding the growth of the economy, investors began to focus on companies that exhibited strong long-term investment fundamentals. Our long standing approach of selecting companies with favorable earnings outlooks, reasonable valuations, high quality financials and strong growth characteristics performed well during this period of uncertainty. The model’s performance was strong during the first quarter of 2008 led by our momentum factor. This factor favors stocks with good prospects for future earnings and strong price performance. The quality factor continued to add value as we expected in this difficult economy. This factor favors companies with good capital discipline and balance sheet quality. Value factors continued to lag as cheap companies have written down book value and cut earnings projections. The strength in the combination of factors in our model led to good discrimination between the highest rated names and the lowest rated stocks. Over 70% of the weight of the portfolio is in the top two ranked quintiles. Our overall relative performance benefited both from the stocks that we owned, as well as avoiding many lower quality names.†
What major changes have occurred in the portfolio during the period covered by the report?
Other than typical re-balancing, no major changes occurred during the period. We are maintaining our disciplined process that has historically helped the Fund to deliver competitive returns.
What is your outlook for the Fund?
The economy continues to slow and market volatility is up as uncertainty has risen. During periods of high uncertainty, we believe our portfolio should continue to outperform the S&P 500 Index. The cheaper stocks in the universe should begin to see more positive returns when the market believes the economy has hit an inflection point. Going forward, we believe that reasonably priced stocks should not detract from performance like they did in the second half of 2007.
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. |
2 | The Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States. |
3 | The S&P/Case-Shiller Home Price Index measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. |
† | The composition of the Fund’s portfolio is subject to change. |
16
Pacific Capital Growth and Income Fund (cont.)
Sector Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -15.36 | % | -2.24 | % | 3.20 | % | 0.00 | % | ||||
Class B Shares** | -14.72 | % | -2.17 | % | 3.35 | % | -0.08 | % | ||||
Class C Shares** | -12.21 | % | -1.23 | % | 3.54 | % | -0.23 | % | ||||
Class Y Shares | -10.48 | % | -0.22 | % | 4.58 | % | 0.77 | % | ||||
S&P 500 Index | -11.09 | % | 2.85 | % | 7.03 | % | 2.91 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.48 | % | 2.08 | % | 2.08 | % | 1.08 | % | ||||
With Contractual Waivers | 1.33 | % | 2.08 | % | 2.08 | % | 1.08 | % |
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, 2007 and excludes the impact of underlying fund fees and expenses. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 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 B Shares.
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.
17
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 whose stock prices, the Fund’s sub-adviser believes are 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
• | 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 (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 19 years experience |
• | $9.3 billion in assets under management |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund returned -14.09% (Class A Shares without sales charge), outperforming its benchmark, the Russell 1000® Value Index1, which returned -15.15%.
What were the major factors in the market that influenced the Fund’s performance?
The day-to-day turbulence experienced in the latter half of 2007 and the first quarter of 2008 subsided during the second quarter, while recession and inflation fears took hold of the worldwide economy. Gross Domestic Product2 (GDP) growth for the first quarter of 2008 was finalized at 0.9%, up from the fourth quarter 2007 reading of -0.2%. With the advent of stimulus checks in late April, retail sales spiked in May. This is expected to be a temporary elevation and is unlikely to stop another quarter of below-trend growth. The Index of Leading Economic Indicators, an amalgamation of 10 individual financial and economic variables, continued to fall and has not recorded a positive monthly reading since July 2007. Unemployment spiked to 5.5% in May, where it remained in June. This is the highest level since mid-2004, and is expected to continue to rise over the remainder of the year. Consumer confidence plunged to a five-year low, which is nearly half its July 2006 level. Rising food and energy costs continued to hit consumers hard, eroding the value of wage increases. Oil closed the second quarter at $140 per barrel, up approximately 50% in 2008 and the national average for a gallon of gasoline topped $4. The U.S. housing market continued to sag with year-over-year price depreciation of over 8.5% on existing homes, according to the S&P/Case-Schiller Home Price Index.3 Housing starts hit their lowest levels since the recession of 1991.
As concerns continued to mount regarding the growth of the economy, investors began to focus on companies that exhibited strong long-term investment fundamentals. Our long standing approach of selecting companies with favorable earnings outlooks, reasonable valuations, high quality financials and strong growth characteristics performed well during this period of uncertainty. The model’s performance was strong during the first quarter of 2008 led by our momentum factor. This factor favors stocks with good prospects for future earnings and strong price performance. The quality factor continued to add value as we expected in this difficult economy. This factor favors companies with good capital discipline and balance sheet quality. Value factors continued to lag as cheap companies have written down book value and cut earnings projections. The strength in the combination of factors in our model led to good discrimination between the highest rated names and the lowest rated stocks. Over 70% of the weight of the portfolio is in the top two ranked quintiles. Our overall relative performance benefited both from the stocks that we owned, as well as avoiding many lower quality names.†
What major changes have occurred in the portfolio during the period covered by the report?
Other than typical re-balancing, no major changes occurred during the period. We are maintaining our disciplined process that has historically helped the Fund to deliver competitive returns.
What is your outlook for the Fund?
The economy continues to slow and market volatility is up as uncertainty has risen. During periods of high uncertainty, we believe our portfolio should continue to outperform the Russell 1000® Value Index. The cheaper stocks in the universe should begin to see more positive returns when the market believes the economy has hit an inflection point. Going forward, we believe that reasonably priced stocks should not detract from performance like they did in the second half of 2007.
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. The Russell 1000® companies are the 1,000 largest companies in the Russell 3000® Index, which represents approximately 89% of its total market capitalization. Investors cannot invest directly in an index. |
2 | The Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States. |
3 | The S&P/Case-Shiller Home Price Index measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. |
† | The composition of the Fund’s portfolio is subject to change. |
18
Pacific Capital Value Fund (cont.)
Sector Weightings as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | Since Inception (12/3/98) | |||||||||
Class A Shares* | -18.56 | % | -0.07 | % | 6.30 | % | 2.31 | % | ||||
Class B Shares** | -17.47 | % | 0.27 | % | 6.51 | % | 2.23 | % | ||||
Class C Shares** | -15.39 | % | 0.99 | % | 6.68 | % | 2.13 | % | ||||
Class Y Shares | -13.83 | % | 2.00 | % | 7.72 | % | 3.14 | % | ||||
Russell 1000® Value Index | -15.15 | % | 2.42 | % | 8.52 | % | 5.22 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.45 | % | 2.05 | % | 2.05 | % | 1.05 | % | ||||
With Contractual Waivers | 1.30 | % | 2.05 | % | 2.05 | % | 1.05 | % |
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, 2007 and excludes the impact of underlying fund fees and expenses. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged to Class A and Class B Shares. 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 the large-cap value segment of the U.S. equity universe. It includes 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.
19
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 $5.3 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.0 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund returned 5.21% (Class A Shares without sales charge), underperforming its benchmark, the Merrill Lynch Domestic Master Index1, which returned 6.47%.
What were the major factors in the market that influenced the Fund’s performance?
The Fund’s underperformance versus the Merrill Lynch Domestic Master Index during this period was due to its relative underweight to direct Treasury issues and corresponding overweight to corporate issues versus the benchmark’s allocation. Rates rose a bit during the period under review and credit spreads widened as risk aversion continued to paralyze the credit markets. Our higher quality positions performed much better than lower quality bonds. Our underweight in mortgage-backed bonds helped preserve portfolio assets as mortgage-backed securities performed poorly. Wider spreads in U.S. Government Agencies provided opportunities to enhance yield. There was a meltdown in the Government Agency market as investors worried about the solvency of Freddie Mac and Fannie Mae. We have been underweight debentures issued by Freddie Mac and Fannie Mae, in favor of Tennessee Valley Authority (TVA), Federal Home Loan Bank and Federal Farm Credit Bank.
The U.S. Treasury calmed the markets by assuring investors that it will support Fannie Mae and Freddie Mac.
What major changes have occurred in the portfolio during the period covered by the report?
We continue to favor government bonds as the credit crisis continues; our corporate positions have been underweight finance issuers and overweight industrial names. Some of that overweight in industrials was reduced by selling Halliburton in favor of TVA as the Halliburton bonds had outperformed other issuers. The average duration of the portfolio is a bit shorter than the benchmark as Treasury rates look a bit expensive.†
What is your outlook for the Fund?
We expect continued volatility in the corporate markets which could give us some opportunities to position for the longer term at very attractive yields.†
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. |
20
Pacific Capital High Grade Core Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 1.03 | % | 1.99 | % | 2.62 | % | 4.41 | % | ||||
Class B Shares** | 0.34 | % | 1.67 | % | 2.51 | % | 4.22 | % | ||||
Class C Shares** | 3.34 | % | 2.60 | % | 2.68 | % | 4.05 | % | ||||
Class Y Shares | 5.44 | % | 3.60 | % | 3.69 | % | 5.07 | % | ||||
Merrill Lynch Domestic Master Index | 6.47 | % | 4.51 | % | 4.65 | % | 5.71 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.23 | % | 1.83 | % | 1.83 | % | 0.83 | % | ||||
With Contractual Waivers | 1.08 | % | 1.83 | % | 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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 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 B Shares.
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.
21
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 $5.3 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.0 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund gained 2.77% (Class A Shares without sales charge), underperforming its benchmark, the Lehman Brothers Municipal Hawaii Bond Index1, which returned 4.09%.
What were the major factors in the market that influenced the Fund’s performance?
This period saw the continuing impacts of the subprime crisis. More bond insurer downgrades (some former AAA are now below investment grade, such as FGIC, CIFG, XLCA). Even the “clean” bond issuers, FSA and Assured Guaranty, were put on AAA watch by Moody’s which led to another round of sell-offs in the money market and longer municipal space. Shorter municipal yields are now in the 90% of Treasury range while longer municipals are back to 100% or more.
Due to this volatility, many opportunities were created when rates on Variable Rate Demand Notes reset to very high levels and we purchased some of these for the portfolio at weekly reset yields of 6-8%.†
These purchases helped the portfolio in this period. The Fund’s (Class A Shares) performance was similar to the Fund’s Lipper Other States Intermediate Municipal Debt Funds2 peer group with a one-year percentile ranking of 60th (81 out of 135 funds) as of July 31, 2008.
The Fund’s exposure to slightly lower credit quality and non-Hawaii issues hurt the portfolio’s performance versus the benchmark in the recent period as the demand for high quality (State or County General Obligation backed) bonds was high during this volatile market period, but the Fund’s underweight exposure to long callable bonds was helpful over the one-year period versus the benchmark.†
What major changes have occurred in the portfolio during the period covered by the report?
The bond insurer downgrades lowered the credit ratings of the portfolio. Most notably were: AMBAC downgraded from (Aaa, AAA, AA) to (Aa3, AA, NR) and MBIA from (Aaa, AAA, AA) to (A2, AA, NR). The underlying ratings on the securities we hold are generally AA rated so underlying credit quality is good and they should not be as negatively impacted by further bond insurer downgrades.†
What is your outlook for the Fund?
We expect the market to continue to be volatile for the foreseeable future. The rating agencies are moving by both voluntary and involuntary forces to recognize the generally high credit quality and low default risk of municipal bonds and may be moving as early as October to upgrade municipal bonds to a “global rating scale”. We believe this could be positive for the municipal market and our portfolio.
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. |
2 | For the one-year period ended July 31, 2008, the Pacific Capital Tax-Free Securities Fund (Class A Shares) ranked 81 out of 135 funds within the Lipper Other States Intermediate Muni Debt Funds category. For the five- and 10-year periods ended July 31, 2008, the Fund ranked 64 out of 126 and 31 out of 90, respectively. The Lipper ranking is based on total return and does not reflect a sales charge. |
† | The composition of the Fund’s portfolio is subject to change. |
22
Pacific Capital Tax-Free Securities Fund (cont.)
Credit Quality as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | -1.35 | % | 1.12 | % | 2.22 | % | 3.53 | % | ||||
Class B Shares** | -1.94 | % | 0.82 | % | 2.13 | % | 3.35 | % | ||||
Class C Shares** | 1.12 | % | 1.74 | % | 2.32 | % | 3.21 | % | ||||
Class Y Shares | 3.02 | % | 2.72 | % | 3.31 | % | 4.21 | % | ||||
Lehman Brothers Municipal Hawaii Bond Index | 4.09 | % | 3.52 | % | 4.14 | % | 4.86 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.23 | % | 1.83 | % | 1.83 | % | 0.83 | % | ||||
With Contractual Waivers | 1.08 | % | 1.83 | % | 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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 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 B Shares.
The performance of the Pacific Capital Tax-Free Securities Fund is measured against the Lehman Brothers Municipal Hawaii Bond 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.
23
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 $5.3 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.0 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund gained 5.83% (Class A Shares without sales charge), and underperformed its benchmark, the Merrill Lynch Domestic Master 1-5 Year Index1, which returned 6.52%.
What were the major factors in the market that influenced the Fund’s performance?
The subprime Mortgage-Backed Security meltdown and credit market contagion of August 2007 and continuing through year-to-date 2008 was the dominant factor affecting performance. Our underweight to direct U.S. Treasury issues muted performance throughout the year as U.S. Treasury securities were the flight to quality debt instrument of choice in the markets. However, by fiscal year end our modest overweight to spread product—spread products are debt securities other than U.S. Treasury securities—enhanced performance particularly as the intense downward price pressure on Countrywide Financial Corp’s debt subsided in light of Bank of America’s acquisition which successfully closed on July 1, 2008.†
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 exposures in addition to our total portfolio duration as markets remain volatile.†
What is your outlook for the Fund?
With the Fed Funds target rate now at 2% we believe the bulk of Federal Open Market Committee rate cuts have already been handed to the market and we are nearing the end of that policy tool use for this cycle, particularly in light of the Federal government’s various actions to maintain liquidity and stimulate the economy for positive growth with the objective of averting a deep recession.†
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. |
24
Pacific Capital High Grade Short Intermediate Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 3.44 | % | 3.42 | % | 2.52 | % | 3.96 | % | ||||
Class C Shares** | 3.93 | % | 3.43 | % | 2.32 | % | 3.86 | % | ||||
Class Y Shares | 6.08 | % | 4.45 | % | 3.24 | % | 4.45 | % | ||||
Merrill Lynch Domestic Master 1-5-Year Index | 6.52 | % | 4.88 | % | 4.13 | % | 5.28 | % | ||||
Expense Ratios | Class A | Class C | Class Y | |||||||||
Gross | 1.22 | % | 1.82 | % | 0.82 | % | ||||||
With Contractual Waivers | 1.07 | % | 1.82 | % | 0.82 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged to Class C Shares. 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.
25
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 $5.3 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.0 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund gained 4.31% (Class A Shares without sales charge), underperforming its benchmark, the Lehman Brothers Municipal Hawaii 3-Year Index1, which returned 6.41%.
What were the major factors in the market that influenced the Fund’s performance?
Ongoing aftershocks of the subprime crisis and more bond insurer downgrades (some former AAA are now below investment grade, such as FGIC, CIFG, XLCA) influenced the Fund’s performance. Even the “clean” bond insurers, FSA and Assured Guaranty, were put on AAA watch by Moody’s which led to another round of sell-offs in the money market and longer municipal space. Shorter municipal yields are now in the 90% of Treasury range while longer municipals are back to 100% or more.
Due to this volatility, many opportunities were created when rates on Variable Rate Demand Notes reset to very high levels and we purchased some of these for the portfolio at weekly reset yields of 6-8%.†
These purchases helped the portfolio in this period. The Fund’s (Class A Shares) more conservative positioning versus the Other States Short Intermediate Municipal Debt Funds2 peer group has provided strong performance with a one-year percentile ranking of 18th (3 out 16 funds) as of July 31, 2008.
The Fund’s exposure to slightly lower credit quality and non-Hawaii issues hurt the portfolio’s performance versus the benchmark as the demand for high quality (State or County General Obligation backed) bonds has been high during this volatile market period.†
What major changes have occurred in the portfolio during the period covered by the report?
The bond insurer downgrades lowered the credit ratings of the portfolio. Most notably were: AMBAC downgraded from (Aaa, AAA, AA) to (Aa3, AA, NR) and MBIA from (Aaa, AAA, AA) to (A2, AA, NR). The underlying ratings on the securities we hold are generally AA rated so underlying credit quality is good and they would not be as negatively impacted by any further bond insurer downgrades.
What is your outlook for the Fund?
We expect the market to continue to be volatile for the foreseeable future. The rating agencies are moving by both voluntary and involuntary forces to recognize the generally high credit quality and low default risk of municipal bonds and may be moving as early as October to upgrade municipal bonds to a “global rating scale”. We believe this could be positive for the municipal market and our portfolio.
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. |
2 | For the one-year period ended July 31, 2008, the Pacific Capital Tax-Free Short Intermediate Securities Fund (Class A Shares) ranked 3 out of 16 funds within the Lipper Other States Short Intermediate Muni Debt Funds category. For the five- and 10-year periods ended July 31, 2008, the Fund ranked 10 out of 13 and 10 out of 11, respectively. The Lipper ranking is based on total return and does not reflect a sales charge. |
† | The composition of the Fund’s portfolio is subject to change. |
26
Pacific Capital Tax-Free Short Intermediate Securities Fund (cont.)
Credit Quality as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | 10 Year | |||||||||
Class A Shares* | 1.97 | % | 1.99 | % | 1.79 | % | 2.90 | % | ||||
Class C Shares** | 2.55 | % | 2.02 | % | 1.60 | % | 2.80 | % | ||||
Class Y Shares | 4.55 | % | 3.02 | % | 2.52 | % | 3.38 | % | ||||
Lehman Brothers Municipal Hawaii 3-Year Index | 6.41 | % | 3.92 | % | 3.13 | % | 4.10 | % | ||||
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged to Class C Shares. 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.
27
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 $5.3 billion in mutual fund assets. In addition, certain AMG personnel also manage approximately $2.0 billion in assets on behalf of Bank of Hawaii clients. |
How did the Fund perform compared to its benchmark?
For the 12-month period ended July 31, 2008, the Fund gained 5.89% (Class A Shares without sales charge), underperforming its benchmark, the Merrill Lynch 1-3-Year U.S. Treasury Index1, which returned 6.76%.
What were the major factors in the market that influenced the Fund’s performance?
The subprime Mortgage-Backed Security meltdown and credit market contagion of August 2007 and continuing through year-to-date 2008 was the dominant factor affecting performance. Our underweight to direct U.S. Treasury issues detracted from performance throughout the year as U.S. Treasury securities were the flight to quality debt instrument of choice in the bond markets. However, clearly the Fund was reasonably well positioned considering the outperformance of its universe compared to its underperformance of the benchmark: +1.25% versus -0.87%. In addition, as of July 31, 2008, both of the major independent fund ranking services Morningstar and Lipper currently have their top overall rating on the Fund’s Class Y Shares: 5 stars from Morningstar2 (out of 146 Short Government funds) and Lipper Leader3 designations for total return and preservation (out of 82 and 4,117 fixed income funds, respectively).
What major changes have occurred in the portfolio during the period covered by the report?
The Fund continues to maintain a slightly shorter duration than benchmark position in anticipation of rate increases for the short end of the curve. Additionally, the Fund increased its Treasury weighting in the period believing that the significantly wider spreads on Agency debt should allow the Fund to uphold its competitive performance while lowering its credit exposure.†
What is your outlook for the Fund?
With the Fed Funds target rate now at 2%, we believe the bulk of Federal Open Market Committee rate cuts have already been handed to the market and we are nearing the end of that policy tool use for this cycle, particularly in light of the Federal government’s various actions to maintain liquidity and stimulate the economy for positive growth with the objective of averting a deep recession.†
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. |
2 | For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The Fund’s Class Y Shares received 5 and 4 stars for the three- and five-year periods out of 146 and 137 funds respectively as of July 31, 2008. The Fund was not rated for the 10-year period. Each fund is rated exclusively against U.S. domiciled Short Government funds. Morningstar Rating™ is for Class Y Shares only; other classes may have different performance characteristics and may have different ratings. Ratings are subject to change every month and take into consideration the Fund’s full sales charge. |
3 | The Lipper Leader for Total Return designation reflects the degree of a fund’s historical total return performance relative to other funds within the same asset class overall for the period ended July 31, 2008. The ratings are subject to change every month. The top 20% of funds are named Lipper Leaders for Total Return. Total Return ratings are relative, rather than absolute, measures and funds named Lipper Leaders for Total Return may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. The Pacific Capital U.S. Government Short Fixed Income Fund (Class Y Shares) received a Lipper Leaders designation for total return among 82, 74 and 82 funds in the Fixed Income Funds asset class for the three-year, five-year and overall periods, respectively. The Lipper Leader for Preservation designation reflects the degree of a fund’s historical success in avoiding periods of losses relative to other funds within the same asset class overall for the period |
28
Pacific Capital U.S. Government Short Fixed Income Fund (cont.)
ended July 31, 2008. The Pacific Capital U.S. Government Short Fixed Income Fund was classified by Lipper among 4,117 Fixed Income funds. Each fund receives a score of 1 to 5, with the funds scoring 1 designated as a “Lipper Leader for Preservation.” The designation is subject to change every month and is not intended to predict future results. Preservation designations are relative, rather than absolute measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper Leader ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. Lipper Leader ratings copyright 2008, Reuters, All Rights Reserved. |
† | The composition of the Fund’s portfolio is subject to change. |
29
Pacific Capital U.S. Government Short Fixed Income Fund (cont.)
Portfolio Composition as of July 31, 2008 (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, 2008
1 Year | 3 Year | 5 Year | Since Inception (6/1/00) | |||||||||
Class A Shares* | 3.53 | % | 3.86 | % | 2.60 | % | 3.36 | % | ||||
Class B Shares** | 1.11 | % | 2.93 | % | 2.13 | % | 2.91 | % | ||||
Class C Shares** | 4.11 | % | 3.87 | % | 2.31 | % | 2.90 | % | ||||
Class Y Shares | 6.15 | % | 4.91 | % | 3.34 | % | 3.92 | % | ||||
Merrill Lynch 1-3-Year U.S. Treasury Index | 6.76 | % | 4.96 | % | 3.48 | % | 4.66 | % | ||||
Expense Ratios | Class A | Class B | Class C | Class Y | ||||||||
Gross | 1.07 | % | 1.67 | % | 1.67 | % | 0.67 | % | ||||
With Contractual Waivers | 0.92 | % | 1.67 | % | 1.67 | % | 0.67 | % |
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, 2007. Additional information pertaining to the Funds’ expense ratios for the year ended July 31, 2008 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 charged to the Class A, Class B and Class C Shares. 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.
30
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities
July 31, 2008
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 88,966,046 | $ | 184,204,994 | $ | 321,038,887 | $ | 57,732,279 | ||||||||
Investments, at value | $ | 97,992,649 | $ | 185,242,806 | $ | 313,294,520 | $ | 55,957,901 | ||||||||
Cash | — | — | 610 | — | ||||||||||||
Foreign currency, at value (Cost $591,660, $49,256, $— and $—, respectively) | 587,347 | 49,256 | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | 1,016 | — | — | ||||||||||||
Income receivable | 485,967 | 317,850 | 261,016 | 70,734 | ||||||||||||
Receivable for capital shares issued | 8,623 | 5,467 | 291,213 | 3,266 | ||||||||||||
Receivable for investments sold | 987,214 | 6,781,829 | 288,771 | — | ||||||||||||
Reclaims receivable | — | 344,514 | — | — | ||||||||||||
Prepaid expenses and other assets | 2,940 | 6,935 | 16,543 | 920 | ||||||||||||
Total Assets | 100,064,740 | 192,749,673 | 314,152,673 | 56,032,821 | ||||||||||||
Liabilities: | ||||||||||||||||
Cash overdraft | — | 5,043,397 | — | — | ||||||||||||
Payable for capital shares redeemed | 18,208 | 29,476 | 939,997 | 11,931 | ||||||||||||
Payable for investments purchased | 1,081,064 | 2,503,993 | — | — | ||||||||||||
Unrealized depreciation on foreign currency exchange contracts | — | 9,844 | — | — | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 34,504 | 58,166 | 91,459 | 16,672 | ||||||||||||
Sub-investment advisory fees | 43,130 | 74,046 | 170,027 | 9,527 | ||||||||||||
Administration and sub-administration fees | 7,763 | 14,957 | 23,484 | 4,287 | ||||||||||||
Compliance service fees | 819 | 1,653 | 2,350 | 413 | ||||||||||||
Distribution fees | 1,747 | 889 | 39,757 | 440 | ||||||||||||
Other fees | 57,995 | 65,227 | 97,114 | 25,121 | ||||||||||||
Total Liabilities | 1,245,230 | 7,801,648 | 1,364,188 | 68,391 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 78,084,033 | 164,592,565 | 378,083,028 | 62,404,950 | ||||||||||||
Undistributed (distributions in excess of) net investment income | (19,628 | ) | (243,491 | ) | — | — | ||||||||||
Accumulated net realized gains (losses) from investments | 11,736,744 | 19,538,970 | (57,550,176 | ) | (4,666,142 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments | 9,018,361 | 1,059,981 | (7,744,367 | ) | (1,774,378 | ) | ||||||||||
Net Assets | $ | 98,819,510 | $ | 184,948,025 | $ | 312,788,485 | $ | 55,964,430 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 4,986,355 | $ | 1,643,820 | $ | 120,495,236 | $ | 549,467 | ||||||||
Class B | 137,468 | 162,566 | 1,481,146 | — | ||||||||||||
Class C | 656,922 | 449,837 | 17,067,160 | 377,537 | ||||||||||||
Class Y | 93,038,765 | 182,691,802 | 173,744,943 | 55,037,426 | ||||||||||||
Total | $ | 98,819,510 | $ | 184,948,025 | $ | 312,788,485 | $ | 55,964,430 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 283,806 | 143,391 | 8,939,301 | 58,694 | ||||||||||||
Class B | 8,315 | 15,033 | 120,744 | — | ||||||||||||
Class C | 39,864 | 41,689 | 1,393,928 | 41,448 | ||||||||||||
Class Y | 5,198,245 | 15,602,113 | 12,591,286 | 5,865,176 | ||||||||||||
Total | 5,530,230 | 15,802,226 | 23,045,259 | 5,965,318 | ||||||||||||
Net Asset Value* | ||||||||||||||||
Class A—redemption price per share | $ | 17.57 | $ | 11.46 | $ | 13.48 | $ | 9.36 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A—maximum offering price per share | $ | 18.54 | $ | 12.10 | $ | 14.23 | $ | 9.88 | ||||||||
Class B—offering price per share** | $ | 16.54 | $ | 10.81 | $ | 12.27 | — | |||||||||
Class C—offering price per share** | $ | 16.48 | $ | 10.79 | $ | 12.24 | $ | 9.11 | ||||||||
Class Y—offering and redemption price per share | $ | 17.90 | $ | 11.71 | $ | 13.80 | $ | 9.38 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
** | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
See notes to financial statements.
31
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, continued
July 31, 2008
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 132,776,289 | $ | 121,827,302 | $ | 120,442,031 | $ | 282,018,442 | ||||||||
Investments, at value | $ | 128,352,478 | $ | 116,293,246 | $ | 108,398,315 | $ | 281,228,640 | ||||||||
Income receivable | 48,346 | 92,798 | 148,948 | 2,918,672 | ||||||||||||
Receivable for capital shares issued | 5,009 | 3,656 | 4,097 | 100,156 | ||||||||||||
Receivable for investments sold | 524,003 | 638,143 | 103,763 | 129,730 | ||||||||||||
Prepaid expenses and other assets | 3,761 | 1,976 | 549 | 1,241 | ||||||||||||
Total Assets | 128,933,597 | 117,029,819 | 108,655,672 | 284,378,439 | ||||||||||||
Liabilities: | ||||||||||||||||
Distributions payable | — | — | — | 100,295 | ||||||||||||
Payable for capital shares redeemed | 58,635 | 31,525 | 16,165 | 61,557 | ||||||||||||
Payable for investments purchased | 449,048 | 548,831 | 95,596 | 209,163 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 38,771 | 35,056 | 32,546 | 109,493 | ||||||||||||
Sub-investment advisory fees | 27,694 | 25,040 | 23,248 | — | ||||||||||||
Administration and sub-administration fees | 9,970 | 9,015 | 8,369 | 21,899 | ||||||||||||
Compliance service fees | 990 | 884 | 831 | 1,946 | ||||||||||||
Distribution fees | 4,772 | 3,245 | 2,018 | 2,182 | ||||||||||||
Other fees | 36,757 | 33,750 | 35,284 | 57,492 | ||||||||||||
Total Liabilities | 626,637 | 687,346 | 214,057 | 564,027 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 213,343,010 | 131,294,325 | 126,032,659 | 285,967,953 | ||||||||||||
Undistributed (distributions in excess of) net investment income | — | 45,835 | 1 | (41,189 | ) | |||||||||||
Accumulated net realized losses from investments | (80,612,239 | ) | (9,463,631 | ) | (5,547,329 | ) | (1,322,550 | ) | ||||||||
Net unrealized depreciation on investments | (4,423,811 | ) | (5,534,056 | ) | (12,043,716 | ) | (789,802 | ) | ||||||||
Net Assets | $ | 128,306,960 | $ | 116,342,473 | $ | 108,441,615 | $ | 283,814,412 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 7,868,382 | $ | 5,401,034 | $ | 2,156,958 | $ | 3,259,119 | ||||||||
Class B | 2,259,244 | 1,113,693 | 528,038 | 880,669 | ||||||||||||
Class C | 1,291,223 | 1,335,583 | 1,321,377 | 859,708 | ||||||||||||
Class Y | 116,888,111 | 108,492,163 | 104,435,242 | 278,814,916 | ||||||||||||
Total | $ | 128,306,960 | $ | 116,342,473 | $ | 108,441,615 | $ | 283,814,412 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 893,608 | 441,282 | 290,326 | 304,699 | ||||||||||||
Class B | 279,010 | 97,577 | 72,794 | 82,516 | ||||||||||||
Class C | 159,543 | 117,130 | 181,673 | 80,549 | ||||||||||||
Class Y | 12,848,353 | 8,790,828 | 14,020,707 | 25,911,636 | ||||||||||||
Total | 14,180,514 | 9,446,817 | 14,565,500 | 26,379,400 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 8.81 | $ | 12.24 | $ | 7.43 | $ | 10.70 | ||||||||
Class A—maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 4.00 | % | ||||||||
Class A—maximum offering price per share | $ | 9.30 | $ | 12.92 | $ | 7.84 | $ | 11.15 | ||||||||
Class B—offering price per share* | $ | 8.10 | $ | 11.41 | $ | 7.25 | $ | 10.67 | ||||||||
Class C—offering price per share* | $ | 8.09 | $ | 11.40 | $ | 7.27 | $ | 10.67 | ||||||||
Class Y—offering and redemption price per share | $ | 9.10 | $ | 12.34 | $ | 7.45 | $ | 10.76 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
32
PACIFIC CAPITAL FUNDS
Statements of Assets and Liabilities, continued
July 31, 2008
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 | $ | 250,646,792 | $ | 63,077,234 | $ | 48,428,476 | $ | 73,344,904 | ||||||||
Investments, at value | $ | 258,044,560 | $ | 63,351,006 | $ | 49,106,683 | $ | 74,429,651 | ||||||||
Income receivable | 2,653,377 | 555,496 | 490,534 | 960,637 | ||||||||||||
Receivable for capital shares issued | — | 93 | — | 89 | ||||||||||||
Receivable for investments sold | — | 2,243 | — | — | ||||||||||||
Prepaid expenses and other assets | 634 | 507 | 468 | 253 | ||||||||||||
Total Assets | 260,698,571 | 63,909,345 | 49,597,685 | 75,390,630 | ||||||||||||
Liabilities: | ||||||||||||||||
Cash overdraft | 341,122 | — | — | — | ||||||||||||
Distributions payable | 90,395 | 19,031 | 13,307 | 19,774 | ||||||||||||
Payable for capital shares redeemed | 24,033 | 8,128 | 21,917 | 1,050 | ||||||||||||
Payable for investments purchased | — | 149,676 | — | — | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 100,565 | 8,471 | 16,892 | 7,563 | ||||||||||||
Administration and sub-administration fees | 20,113 | 4,907 | 3,801 | 5,745 | ||||||||||||
Compliance service fees | 1,815 | 385 | 304 | 508 | ||||||||||||
Distribution fees | 1,719 | 609 | 422 | 1,761 | ||||||||||||
Other fees | 59,690 | 23,100 | 22,293 | 23,862 | ||||||||||||
Total Liabilities | 639,452 | 214,307 | 78,936 | 60,263 | ||||||||||||
Net Assets: | ||||||||||||||||
Capital (no par value) | 252,319,562 | 65,056,209 | 49,594,384 | 76,393,747 | ||||||||||||
Undistributed (distributions in excess of) net investment income | 91 | (7,382 | ) | 762 | — | |||||||||||
Accumulated net realized gains (losses) from investments | 341,698 | (1,627,561 | ) | (754,604 | ) | (2,148,127 | ) | |||||||||
Net unrealized appreciation on investments | 7,397,768 | 273,772 | 678,207 | 1,084,747 | ||||||||||||
Net Assets | $ | 260,059,119 | $ | 63,695,038 | $ | 49,518,749 | $ | 75,330,367 | ||||||||
Net Assets | ||||||||||||||||
Class A | $ | 5,135,809 | $ | 1,022,427 | $ | 1,955,827 | $ | 2,773,080 | ||||||||
Class B | 730,642 | — | — | 454,106 | ||||||||||||
Class C | 10,912 | 463,250 | 10,705 | 928,047 | ||||||||||||
Class Y | 254,181,756 | 62,209,361 | 47,552,217 | 71,175,134 | ||||||||||||
Total | $ | 260,059,119 | $ | 63,695,038 | $ | 49,518,749 | $ | 75,330,367 | ||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
Class A | 518,603 | 105,490 | 192,815 | 270,210 | ||||||||||||
Class B | 73,775 | — | — | 44,249 | ||||||||||||
Class C | 1,102 | 47,840 | 1,055 | 90,430 | ||||||||||||
Class Y | 25,561,957 | 6,407,236 | 4,662,244 | 6,929,683 | ||||||||||||
Total | 26,155,437 | 6,560,566 | 4,856,114 | 7,334,572 | ||||||||||||
Net Asset Value | ||||||||||||||||
Class A—redemption price per share | $ | 9.90 | $ | 9.69 | $ | 10.14 | $ | 10.26 | ||||||||
Class A—maximum sales charge | 4.00 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||
Class A—maximum offering price per share | $ | 10.31 | $ | 9.91 | $ | 10.37 | $ | 10.50 | ||||||||
Class B—offering price per share* | $ | 9.90 | — | — | $ | 10.26 | ||||||||||
Class C—offering price per share* | $ | 9.91 | $ | 9.68 | $ | 10.14 | $ | 10.26 | ||||||||
Class Y—offering and redemption price per share | $ | 9.94 | $ | 9.71 | $ | 10.20 | $ | 10.27 | ||||||||
* | Redemption price per share varies based on length of time shares are held. |
See notes to financial statements.
33
PACIFIC CAPITAL FUNDS
Statements of Operations
Year Ended July 31, 2008
New Asia Growth Fund | International Stock Fund | Small Cap Fund | Mid-Cap Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 3,455,456 | $ | 6,472,435 | $ | 3,881,843 | $ | 905,237 | ||||||||
Interest income | — | — | 7 | — | ||||||||||||
Foreign tax withholding | (354,565 | ) | (550,759 | ) | (689 | ) | — | |||||||||
Total Investment Income | 3,100,891 | 5,921,676 | 3,881,161 | 905,237 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 486,417 | 1,104,228 | 1,903,052 | 402,479 | ||||||||||||
Sub-investment advisory fees | 608,020 | 1,046,555 | 2,680,192 | 134,160 | ||||||||||||
Administration and sub-administration fees | 109,444 | 220,846 | 374,995 | 60,372 | ||||||||||||
Distribution fees—Class A | 16,809 | 6,368 | 701,850 | 2,495 | ||||||||||||
Distribution fees—Class B | 5,058 | 4,589 | 19,436 | — | ||||||||||||
Distribution fees—Class C | 6,882 | 5,799 | 213,377 | 4,301 | ||||||||||||
Accounting fees | 78,088 | 138,184 | 196,977 | 32,665 | ||||||||||||
Compliance service fees | 9,264 | 18,652 | 31,309 | 5,041 | ||||||||||||
Custodian fees | 186,545 | 161,525 | 88,773 | 36,585 | ||||||||||||
Transfer agent fees | 59,109 | 58,874 | 409,831 | 50,767 | ||||||||||||
Trustee fees | 11,671 | 23,681 | 42,738 | 6,543 | ||||||||||||
Other fees | 81,848 | 167,886 | 454,700 | 40,712 | ||||||||||||
Total expenses before reductions | 1,659,155 | 2,957,187 | 7,117,230 | 776,120 | ||||||||||||
Less expenses waived/reimbursed by the Adviser | — | (245,380 | ) | (439,693 | ) | (167,699 | ) | |||||||||
Less expenses waived by the distributor—Class A | (6,304 | ) | (2,388 | ) | (263,195 | ) | (936 | ) | ||||||||
Less expenses waived by the distributor—Class B | — | — | (4,024 | ) | — | |||||||||||
Net Expenses | 1,652,851 | 2,709,419 | 6,410,318 | 607,485 | ||||||||||||
Net Investment Income (Loss) | 1,448,040 | 3,212,257 | (2,529,157 | ) | 297,752 | |||||||||||
Realized/Unrealized Gains (Losses) from Investments, Futures and Foreign Currency Transactions: | ||||||||||||||||
Net realized gains (losses) from investments and foreign currency transactions | 21,491,476 | 22,613,383 | (54,823,424 | ) | (4,586,678 | ) | ||||||||||
Net realized losses from futures transactions | — | — | (116,732 | ) | — | |||||||||||
Change in unrealized appreciation/depreciation on investments and foreign currency transactions | (27,565,224 | ) | (44,515,682 | ) | 2,123,071 | (5,400,714 | ) | |||||||||
Net realized/unrealized losses from investments, futures and foreign currency transactions | (6,073,748 | ) | (21,902,299 | ) | (52,817,085 | ) | (9,987,392 | ) | ||||||||
Change in net assets resulting from operations | $ | (4,625,708 | ) | $ | (18,690,042 | ) | $ | (55,346,242 | ) | $ | (9,689,640 | ) | ||||
See notes to financial statements.
34
PACIFIC CAPITAL FUNDS
Statements of Operations, continued
Year Ended July 31, 2008
Growth Stock Fund | Growth and Income Fund | Value Fund | High Grade Core Fixed Income Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income | $ | 2,316,512 | $ | 2,738,765 | $ | 3,262,446 | $ | 124,061 | ||||||||
Interest income | — | — | — | 15,798,561 | ||||||||||||
Total Investment Income | 2,316,512 | 2,738,765 | 3,262,446 | 15,922,622 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 860,598 | 780,715 | 741,630 | 1,796,679 | ||||||||||||
Sub-investment advisory fees | 391,181 | 354,870 | 337,104 | — | ||||||||||||
Administration and sub-administration fees | 140,826 | 127,754 | 121,358 | 269,503 | ||||||||||||
Distribution fees—Class A | 31,868 | 22,556 | 9,839 | 12,799 | ||||||||||||
Distribution fees—Class B | 42,288 | 21,931 | 8,170 | 12,402 | ||||||||||||
Distribution fees—Class C | 16,812 | 16,945 | 17,040 | 9,576 | ||||||||||||
Accounting fees | 67,615 | 60,730 | 59,020 | 139,545 | ||||||||||||
Compliance service fees | 11,774 | 10,648 | 10,131 | 22,482 | ||||||||||||
Custodian fees | 24,625 | 23,079 | 29,290 | 25,766 | ||||||||||||
Transfer agent fees | 96,091 | 76,373 | 56,625 | 62,996 | ||||||||||||
Trustee fees | 15,291 | 13,949 | 13,391 | 28,472 | ||||||||||||
Other fees | 130,749 | 115,787 | 86,876 | 157,293 | ||||||||||||
Total expenses before reductions | 1,829,718 | 1,625,337 | 1,490,474 | 2,537,513 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (312,953 | ) | (283,922 | ) | (269,686 | ) | (449,173 | ) | ||||||||
Less expenses waived by the distributor—Class A | (11,951 | ) | (8,459 | ) | (3,690 | ) | (4,800 | ) | ||||||||
Net Expenses | 1,504,814 | 1,332,956 | 1,217,098 | 2,083,540 | ||||||||||||
Net Investment Income | 811,698 | 1,405,809 | 2,045,348 | 13,839,082 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains (losses) from investments | (3,434,390 | ) | (9,290,726 | ) | (5,434,126 | ) | 2,618,457 | |||||||||
Change in unrealized appreciation/depreciation on investments | (7,391,794 | ) | (6,754,078 | ) | (15,681,950 | ) | (377,812 | ) | ||||||||
Net realized/unrealized gains (losses) from investments | (10,826,184 | ) | (16,044,804 | ) | (21,116,076 | ) | 2,240,645 | |||||||||
Change in net assets resulting from operations | $ | (10,014,486 | ) | $ | (14,638,995 | ) | $ | (19,070,728 | ) | $ | 16,079,727 | |||||
See notes to financial statements.
35
PACIFIC CAPITAL FUNDS
Statements of Operations, continued
Year Ended July 31, 2008
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: | ||||||||||||||||
Dividend income | $ | 26,694 | $ | 36,871 | $ | 16,215 | $ | 6,227 | ||||||||
Interest income | 14,007,944 | 3,119,940 | 1,966,927 | 3,749,239 | ||||||||||||
Total Investment Income | 14,034,638 | 3,156,811 | 1,983,142 | 3,755,466 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,666,193 | 323,334 | 245,878 | 339,360 | ||||||||||||
Administration and sub-administration fees | 249,930 | 58,200 | 44,258 | 76,356 | ||||||||||||
Distribution fees—Class A | 21,349 | 3,956 | 8,309 | 10,100 | ||||||||||||
Distribution fees—Class B | 8,554 | — | — | 5,931 | ||||||||||||
Distribution fees—Class C | 109 | 5,014 | 106 | 10,389 | ||||||||||||
Accounting fees | 131,356 | 34,775 | 28,845 | 38,299 | ||||||||||||
Compliance service fees | 20,860 | 4,813 | 3,663 | 5,319 | ||||||||||||
Custodian fees | 52,764 | 17,105 | 18,701 | 10,513 | ||||||||||||
Transfer agent fees | 54,200 | 49,896 | 48,736 | 52,473 | ||||||||||||
Trustee fees | 26,397 | 6,136 | 4,725 | 8,274 | ||||||||||||
Other fees | 144,488 | 39,097 | 31,373 | 53,361 | ||||||||||||
Total expenses before reductions | 2,376,200 | 542,326 | 434,594 | 610,375 | ||||||||||||
Less expenses waived/reimbursed by the adviser | (416,551 | ) | (196,657 | ) | (49,175 | ) | (244,672 | ) | ||||||||
Less expenses waived by the distributor—Class A | (8,006 | ) | (1,483 | ) | (3,116 | ) | (3,787 | ) | ||||||||
Net Expenses | 1,951,643 | 344,186 | 382,303 | 361,916 | ||||||||||||
Net Investment Income | 12,082,995 | 2,812,625 | 1,600,839 | 3,393,550 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | ||||||||||||||||
Net realized gains from investments | 341,698 | 667,701 | 8,348 | 717,346 | ||||||||||||
Change in unrealized appreciation/depreciation on investments | (3,883,418 | ) | 441,526 | 625,732 | 1,004,440 | |||||||||||
Net realized/unrealized gains (losses) from investments | (3,541,720 | ) | 1,109,227 | 634,080 | 1,721,786 | |||||||||||
Change in net assets resulting from operations | $ | 8,541,275 | $ | 3,921,852 | $ | 2,234,919 | $ | 5,115,336 | ||||||||
See notes to financial statements.
36
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,448,040 | $ | 1,341,468 | $ | 3,212,257 | $ | 2,384,781 | $ | (2,529,157 | ) | $ | (1,063,298 | ) | ||||||||||
Net realized gains (losses) from investments and foreign currency transactions | 21,491,476 | 13,445,612 | 22,613,383 | 25,040,337 | (54,823,424 | ) | 75,100,717 | |||||||||||||||||
Net realized gains (losses) from futures | — | — | — | — | (116,732 | ) | 178,604 | |||||||||||||||||
Change in unrealized appreciation/ | (27,565,224 | ) | 22,968,229 | (44,515,682 | ) | 24,814,151 | 2,123,071 | (28,351,126 | ) | |||||||||||||||
Change in net assets resulting from operations | (4,625,708 | ) | 37,755,309 | (18,690,042 | ) | 52,239,269 | (55,346,242 | ) | 45,864,897 | |||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (49,236 | ) | (30,376 | ) | (17,830 | ) | (10,569 | ) | — | — | ||||||||||||||
From net realized gains | (554,220 | ) | (233,425 | ) | (126,628 | ) | — | (32,778,648 | ) | (15,602,529 | ) | |||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,960 | ) | (3,523 | ) | (875 | ) | (2,162 | ) | — | — | ||||||||||||||
From net realized gains | (101,202 | ) | (65,066 | ) | (36,630 | ) | — | (369,645 | ) | (251,200 | ) | |||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (4,998 | ) | (2,951 | ) | (2,605 | ) | (1,971 | ) | — | — | ||||||||||||||
From net realized gains | (115,822 | ) | (47,463 | ) | (42,315 | ) | — | (4,182,152 | ) | (1,512,887 | ) | |||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,349,279 | ) | (1,307,692 | ) | (2,692,270 | ) | (2,600,031 | ) | — | — | ||||||||||||||
From net realized gains | (18,299,741 | ) | (8,514,850 | ) | (15,706,421 | ) | — | (36,706,704 | ) | (16,320,588 | ) | |||||||||||||
Change in net assets from shareholder distributions | (20,476,458 | ) | (10,205,346 | ) | (18,625,574 | ) | (2,614,733 | ) | (74,037,149 | ) | (33,687,204 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 6,063,374 | 1,263,213 | (26,284,769 | ) | (13,143,116 | ) | (94,276,129 | ) | 93,297,720 | |||||||||||||||
Change in net assets | (19,038,792 | ) | 28,813,176 | (63,600,385 | ) | 36,481,420 | (223,659,520 | ) | 105,475,413 | |||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 117,858,302 | 89,045,126 | 248,548,410 | 212,066,990 | 536,448,005 | 430,972,592 | ||||||||||||||||||
End of year | $ | 98,819,510 | $ | 117,858,302 | $ | 184,948,025 | $ | 248,548,410 | $ | 312,788,485 | $ | 536,448,005 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (19,628 | ) | $ | 87,230 | $ | (243,491 | ) | $ | (224,021 | ) | $ | — | $ | — | |||||||||
See notes to financial statements.
37
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
New Asia Growth Fund | International Stock Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 3,638,780 | $ | 783,956 | $ | 1,711,745 | $ | 496,878 | $ | 54,485,249 | $ | 114,314,923 | ||||||||||||
Dividends reinvested | 491,158 | 215,939 | 121,615 | 8,371 | 29,790,004 | 14,385,367 | ||||||||||||||||||
Cost of shares redeemed | (1,346,583 | ) | (664,241 | ) | (1,024,267 | ) | (534,460 | ) | (134,813,450 | ) | (120,465,234 | ) | ||||||||||||
Change in net assets from Class A | $ | 2,783,355 | $ | 335,654 | $ | 809,093 | $ | (29,211 | ) | $ | (50,538,197 | ) | $ | 8,235,056 | ||||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 29,107 | $ | 95,081 | $ | 7,195 | $ | 53,290 | $ | — | $ | 58,069 | ||||||||||||
Dividends reinvested | 70,940 | 45,049 | 34,059 | 1,862 | 352,112 | 238,041 | ||||||||||||||||||
Cost of shares redeemed | (553,207 | ) | (274,934 | ) | (487,378 | ) | (209,441 | ) | (749,008 | ) | (986,558 | ) | ||||||||||||
Change in net assets from Class B | $ | (453,160 | ) | $ | (134,804 | ) | $ | (446,124 | ) | $ | (154,289 | ) | $ | (396,896 | ) | $ | (690,448 | ) | ||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 294,199 | $ | 166,184 | $ | 118,886 | $ | 102,387 | $ | 5,709,916 | $ | 10,931,408 | ||||||||||||
Dividends reinvested | 115,782 | 48,033 | 44,920 | 1,971 | 3,660,806 | 1,347,711 | ||||||||||||||||||
Cost of shares redeemed | (162,325 | ) | (179,524 | ) | (219,349 | ) | (242,606 | ) | (9,110,895 | ) | (3,079,199 | ) | ||||||||||||
Change in net assets from Class C | $ | 247,656 | $ | 34,693 | $ | (55,543 | ) | $ | (138,248 | ) | $ | 259,827 | $ | 9,199,920 | ||||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 15,043,651 | $ | 15,558,241 | $ | 32,508,758 | $ | 37,672,252 | $ | 40,232,542 | $ | 144,851,595 | ||||||||||||
Dividends reinvested | 16,269,905 | 7,216,565 | 12,911,597 | 140,765 | 31,750,368 | 13,068,368 | ||||||||||||||||||
Cost of shares redeemed | (27,828,033 | ) | (21,747,136 | ) | (72,012,550 | ) | (50,634,385 | ) | (115,583,773 | ) | (81,366,771 | ) | ||||||||||||
Change in net assets from Class Y | $ | 3,485,523 | $ | 1,027,670 | $ | (26,592,195 | ) | $ | (12,821,368 | ) | $ | (43,600,863 | ) | $ | 76,553,192 | |||||||||
Change in net assets from capital transactions | $ | 6,063,374 | $ | 1,263,213 | $ | (26,284,769 | ) | $ | (13,143,116 | ) | $ | (94,276,129 | ) | $ | 93,297,720 | |||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 180,451 | 39,710 | 126,598 | 38,788 | 3,543,506 | 6,010,678 | ||||||||||||||||||
Reinvested | 23,416 | 11,983 | 9,282 | 651 | 2,006,061 | 775,074 | ||||||||||||||||||
Redeemed | (65,431 | ) | (34,381 | ) | (82,437 | ) | (41,853 | ) | (9,127,829 | ) | (6,451,599 | ) | ||||||||||||
Change in Class A | 138,436 | 17,312 | 53,443 | (2,414 | ) | (3,578,262 | ) | 334,153 | ||||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 1,241 | 5,045 | 561 | 4,596 | — | 3,152 | ||||||||||||||||||
Reinvested | 3,558 | 2,642 | 2,729 | 150 | 26,005 | 13,736 | ||||||||||||||||||
Redeemed | (28,823 | ) | (14,963 | ) | (40,391 | ) | (18,084 | ) | (52,967 | ) | (55,256 | ) | ||||||||||||
�� | ||||||||||||||||||||||||
Change in Class B | (24,024 | ) | (7,276 | ) | (37,101 | ) | (13,338 | ) | (26,962 | ) | (38,368 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 14,913 | 9,105 | 9,721 | 8,824 | 390,136 | 613,373 | ||||||||||||||||||
Reinvested | 5,843 | 2,815 | 3,620 | 159 | 270,170 | 77,723 | ||||||||||||||||||
Redeemed | (8,536 | ) | (9,909 | ) | (18,360 | ) | (20,786 | ) | (682,682 | ) | (171,118 | ) | ||||||||||||
Change in Class C | 12,220 | 2,011 | (5,019 | ) | (11,803 | ) | (22,376 | ) | 519,978 | |||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 692,522 | 824,223 | 2,448,112 | 3,002,553 | 2,639,823 | 7,556,310 | ||||||||||||||||||
Reinvested | 757,898 | 398,281 | 957,057 | 10,711 | 2,091,592 | 692,915 | ||||||||||||||||||
Redeemed | (1,316,500 | ) | (1,187,164 | ) | (5,586,734 | ) | (4,250,018 | ) | (7,230,631 | ) | (4,193,411 | ) | ||||||||||||
Change in Class Y | 133,920 | 35,340 | (2,181,565 | ) | (1,236,754 | ) | (2,499,216 | ) | 4,055,814 | |||||||||||||||
Change in shares | 260,552 | 47,387 | (2,170,242 | ) | (1,264,309 | ) | (6,126,816 | ) | 4,871,577 | |||||||||||||||
See notes to financial statements.
38
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 297,752 | $ | 413,804 | $ | 811,698 | $ | 232,635 | $ | 1,405,809 | $ | 1,205,086 | ||||||||||||
Net realized gains (losses) from investments | (4,586,678 | ) | 9,339,409 | (3,434,390 | ) | 14,282,281 | (9,290,726 | ) | 19,482,302 | |||||||||||||||
Change in unrealized appreciation/ | (5,400,714 | ) | (1,353,818 | ) | (7,391,794 | ) | 5,478,060 | (6,754,078 | ) | (3,753,343 | ) | |||||||||||||
Change in net assets resulting from operations | (9,689,640 | ) | 8,399,395 | (10,014,486 | ) | 19,992,976 | (14,638,995 | ) | 16,934,045 | |||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (1,731 | ) | (3,457 | ) | (29,746 | ) | (2,392 | ) | (43,313 | ) | (33,411 | ) | ||||||||||||
From net realized gains | (70,748 | ) | (105,113 | ) | — | — | (307,734 | ) | — | |||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | — | — | (5,399 | ) | (1,893 | ) | (2,163 | ) | (1,898 | ) | ||||||||||||||
From net realized gains | — | — | — | — | (138,122 | ) | — | |||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | — | (1,481 | ) | (2,039 | ) | (345 | ) | (1,755 | ) | (782 | ) | |||||||||||||
From net realized gains | (49,554 | ) | (76,582 | ) | — | — | (102,454 | ) | — | |||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (344,034 | ) | (430,668 | ) | (798,007 | ) | (212,093 | ) | (1,312,747 | ) | (1,196,850 | ) | ||||||||||||
From net realized gains | (7,523,615 | ) | (7,791,799 | ) | — | — | (7,376,837 | ) | — | |||||||||||||||
Change in net assets from shareholder distributions | (7,989,682 | ) | (8,409,100 | ) | (835,191 | ) | (216,723 | ) | (9,285,125 | ) | (1,232,941 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 2,047,497 | (3,021,801 | ) | (30,189,419 | ) | (14,034,119 | ) | (14,794,129 | ) | (25,923,455 | ) | |||||||||||||
Change in net assets | (15,631,825 | ) | (3,031,506 | ) | (41,039,096 | ) | 5,742,134 | (38,718,249 | ) | (10,222,351 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 71,596,255 | 74,627,761 | 169,346,056 | 163,603,922 | 155,060,722 | 165,283,073 | ||||||||||||||||||
End of year | $ | 55,964,430 | $ | 71,596,255 | $ | 128,306,960 | $ | 169,346,056 | $ | 116,342,473 | $ | 155,060,722 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | — | $ | — | $ | — | $ | 15,912 | $ | 45,835 | $ | — | ||||||||||||
See notes to financial statements.
39
PACIFIC CAPITAL FUNDS
Statements of Changes in Net Assets, continued
Mid-Cap Fund | Growth Stock Fund | Growth and Income Fund | ||||||||||||||||||||||
Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 75,916 | $ | 129,870 | $ | 2,694,225 | $ | 1,844,027 | $ | 1,509,204 | $ | 1,922,868 | ||||||||||||
Dividends reinvested | 59,165 | 90,453 | 27,639 | 2,255 | 337,535 | 31,550 | ||||||||||||||||||
Cost of shares redeemed | (115,068 | ) | (411,174 | ) | (2,202,836 | ) | (2,891,919 | ) | (1,492,254 | ) | (1,981,641 | ) | ||||||||||||
Change in net assets from Class A | $ | 20,013 | $ | (190,851 | ) | $ | 519,028 | $ | (1,045,637 | ) | $ | 354,485 | $ | (27,223 | ) | |||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 14,185 | $ | 12,422 | $ | 71,441 | $ | 15,672 | ||||||||||||||||
Dividends reinvested | 5,034 | 1,794 | 131,214 | 1,805 | ||||||||||||||||||||
Cost of shares redeemed | (3,445,106 | ) | (4,046,880 | ) | (1,887,739 | ) | (2,726,151 | ) | ||||||||||||||||
Change in net assets from Class B | $ | (3,425,887 | ) | $ | (4,032,664 | ) | $ | (1,685,084 | ) | $ | (2,708,674 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 128,344 | $ | 78,265 | $ | 236,790 | $ | 365,336 | $ | 294,079 | $ | 317,793 | ||||||||||||
Dividends reinvested | 49,083 | 75,348 | 2,039 | 345 | 104,209 | 782 | ||||||||||||||||||
Cost of shares redeemed | (162,507 | ) | (221,389 | ) | (682,628 | ) | (685,924 | ) | (537,375 | ) | (643,229 | ) | ||||||||||||
Change in net assets from Class C | $ | 14,920 | $ | (67,776 | ) | $ | (443,799 | ) | $ | (320,243 | ) | $ | (139,087 | ) | $ | (324,654 | ) | |||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 11,415,749 | $ | 22,491,892 | $ | 11,899,047 | $ | 42,744,571 | $ | 13,351,033 | $ | 19,646,624 | ||||||||||||
Dividends reinvested | 6,269,439 | 6,344,791 | 190,834 | 28,615 | 5,354,562 | 88,238 | ||||||||||||||||||
Cost of shares redeemed | (15,672,624 | ) | (31,599,857 | ) | (38,928,642 | ) | (51,408,761 | ) | (32,030,038 | ) | (42,597,766 | ) | ||||||||||||
Change in net assets from Class Y | $ | 2,012,564 | $ | (2,763,174 | ) | $ | (26,838,761 | ) | $ | (8,635,575 | ) | $ | (13,324,443 | ) | $ | (22,862,904 | ) | |||||||
Change in net assets from capital transactions | $ | 2,047,497 | $ | (3,021,801 | ) | $ | (30,189,419 | ) | $ | (14,034,119 | ) | $ | (14,794,129 | ) | $ | (25,923,455 | ) | |||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 7,213 | 10,341 | 290,428 | 192,630 | 112,475 | 130,375 | ||||||||||||||||||
Reinvested | 5,722 | 7,785 | 3,007 | 239 | 24,202 | 2,126 | ||||||||||||||||||
Redeemed | (11,159 | ) | (33,768 | ) | (235,103 | ) | (307,744 | ) | (108,455 | ) | (133,889 | ) | ||||||||||||
Change in Class A | 1,776 | (15,642 | ) | 58,332 | (114,875 | ) | 28,222 | (1,388 | ) | |||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 1,648 | 1,450 | 5,253 | 1,079 | ||||||||||||||||||||
Reinvested | 609 | 205 | 10,024 | 130 | ||||||||||||||||||||
Redeemed | (399,454 | ) | (463,051 | ) | (147,616 | ) | (197,390 | ) | ||||||||||||||||
Change in Class B | (397,197 | ) | (461,396 | ) | (132,339 | ) | (196,181 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 12,717 | 6,522 | 27,220 | 42,283 | 23,176 | 23,234 | ||||||||||||||||||
Reinvested | 4,864 | 6,593 | 247 | 39 | 7,968 | 56 | ||||||||||||||||||
Redeemed | (16,513 | ) | (18,054 | ) | (78,233 | ) | (78,394 | ) | (44,024 | ) | (46,381 | ) | ||||||||||||
Change in Class C | 1,068 | (4,939 | ) | (50,766 | ) | (36,072 | ) | (12,880 | ) | (23,091 | ) | |||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,013,542 | 1,831,688 | 1,229,182 | 4,484,580 | 961,111 | 1,337,411 | ||||||||||||||||||
Reinvested | 604,906 | 544,557 | 20,245 | 2,866 | 380,211 | 5,899 | ||||||||||||||||||
Redeemed | (1,527,979 | ) | (2,584,614 | ) | (4,011,283 | ) | (5,595,111 | ) | (2,357,842 | ) | (2,901,496 | ) | ||||||||||||
Change in Class Y | 90,469 | (208,369 | ) | (2,761,856 | ) | (1,107,665 | ) | (1,016,520 | ) | (1,558,186 | ) | |||||||||||||
Change in shares | 93,313 | (228,950 | ) | (3,151,487 | ) | (1,720,008 | ) | (1,133,517 | ) | (1,778,846 | ) | |||||||||||||
See notes to financial statements.
40
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, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,045,348 | $ | 2,148,969 | $ | 13,839,082 | $ | 15,399,710 | $ | 12,082,995 | $ | 12,616,692 | ||||||||||||
Net realized gains (losses) from investments | (5,434,126 | ) | 29,881,198 | 2,618,457 | 848,286 | 341,698 | 845,316 | |||||||||||||||||
Change in unrealized appreciation/ | (15,681,950 | ) | (11,305,014 | ) | (377,812 | ) | (912,112 | ) | (3,883,418 | ) | (2,263,544 | ) | ||||||||||||
Change in net assets resulting from operations | (19,070,728 | ) | 20,725,153 | 16,079,727 | 15,335,884 | 8,541,275 | 11,198,464 | |||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (32,755 | ) | (32,135 | ) | (139,029 | ) | (150,712 | ) | (220,589 | ) | (240,129 | ) | ||||||||||||
From net realized gains | (429,326 | ) | (334,935 | ) | — | — | (5,521 | ) | (5,509 | ) | ||||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | (4,487 | ) | (5,454 | ) | (44,972 | ) | (87,910 | ) | (28,928 | ) | (52,039 | ) | ||||||||||||
From net realized gains | (155,040 | ) | (163,267 | ) | — | — | (850 | ) | (1,690 | ) | ||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (10,382 | ) | (8,156 | ) | (34,469 | ) | (43,523 | ) | (367 | ) | (347 | ) | ||||||||||||
From net realized gains | (309,838 | ) | (239,941 | ) | — | — | (11 | ) | (10 | ) | ||||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,049,266 | ) | (2,137,579 | ) | (13,416,292 | ) | (14,790,453 | ) | (11,833,111 | ) | (12,324,177 | ) | ||||||||||||
From net realized gains | (23,050,183 | ) | (18,856,455 | ) | — | — | (274,361 | ) | (264,559 | ) | ||||||||||||||
Change in net assets from shareholder distributions | (26,041,277 | ) | (21,777,922 | ) | (13,634,762 | ) | (15,072,598 | ) | (12,363,738 | ) | (12,888,460 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | 3,852,288 | (1,427,365 | ) | (32,459,786 | ) | 18,252,103 | (25,415,866 | ) | (4,733,676 | ) | ||||||||||||||
Change in net assets | (41,259,717 | ) | (2,480,134 | ) | (30,014,821 | ) | 18,515,389 | (29,238,329 | ) | (6,423,672 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 149,701,332 | 152,181,466 | 313,829,233 | 295,313,844 | 289,297,448 | 295,721,120 | ||||||||||||||||||
End of year | $ | 108,441,615 | $ | 149,701,332 | $ | 283,814,412 | $ | 313,829,233 | $ | 260,059,119 | $ | 289,297,448 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 1 | $ | 1 | $ | (41,189 | ) | $ | (41,197 | ) | $ | 91 | $ | 35 | ||||||||||
See notes to financial statements.
41
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, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 456,292 | $ | 761,040 | $ | 826,735 | $ | 826,490 | $ | 498,673 | $ | 476,532 | ||||||||||||
Dividends reinvested | 338,110 | 248,033 | 105,649 | 111,400 | 127,806 | 134,662 | ||||||||||||||||||
Cost of shares redeemed | (796,094 | ) | (1,006,964 | ) | (808,729 | ) | (1,523,238 | ) | (927,100 | ) | (1,276,278 | ) | ||||||||||||
Change in net assets from Class A | $ | (1,692 | ) | $ | 2,109 | $ | 123,655 | $ | (585,348 | ) | $ | (300,621 | ) | $ | (665,084 | ) | ||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | 54,944 | $ | 3,943 | $ | 6,011 | $ | — | $ | — | ||||||||||||
Dividends reinvested | 146,800 | 145,556 | 35,224 | 73,836 | 18,618 | 33,971 | ||||||||||||||||||
Cost of shares redeemed | (445,215 | ) | (526,404 | ) | (813,173 | ) | (1,406,977 | ) | (380,239 | ) | (1,308,938 | ) | ||||||||||||
Change in net assets from Class B | $ | (298,415 | ) | $ | (325,904 | ) | $ | (774,006 | ) | $ | (1,327,130 | ) | $ | (361,621 | ) | $ | (1,274,967 | ) | ||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 380,806 | $ | 275,434 | $ | 213,276 | $ | 214,494 | $ | — | $ | — | ||||||||||||
Dividends reinvested | 320,220 | 247,629 | 34,016 | 43,144 | 376 | 359 | ||||||||||||||||||
Cost of shares redeemed | (628,394 | ) | (765,205 | ) | (358,844 | ) | (621,624 | ) | — | — | ||||||||||||||
Change in net assets from Class C | $ | 72,632 | $ | (242,142 | ) | $ | (111,552 | ) | $ | (363,986 | ) | $ | 376 | $ | 359 | |||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 19,168,810 | $ | 45,085,240 | $ | 28,701,064 | $ | 70,474,420 | $ | 36,520,216 | $ | 48,411,120 | ||||||||||||
Dividends reinvested | 16,321,574 | 12,547,672 | 2,884,573 | 1,184,100 | 855,113 | 278,586 | ||||||||||||||||||
Cost of shares redeemed | (31,410,621 | ) | (58,494,340 | ) | (63,283,520 | ) | (51,129,953 | ) | (62,129,329 | ) | (51,483,690 | ) | ||||||||||||
Change in net assets from Class Y | $ | 4,079,763 | $ | (861,428 | ) | $ | (31,697,883 | ) | $ | 20,528,567 | $ | (24,754,000 | ) | $ | (2,793,984 | ) | ||||||||
Change in net assets from capital transactions | $ | 3,852,288 | $ | (1,427,365 | ) | $ | (32,459,786 | ) | $ | 18,252,103 | $ | (25,415,866 | ) | $ | (4,733,676 | ) | ||||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 54,574 | 69,132 | 76,384 | 77,209 | 49,591 | 46,877 | ||||||||||||||||||
Reinvested | 39,581 | 23,689 | 9,754 | 10,391 | 12,772 | 13,236 | ||||||||||||||||||
Redeemed | (84,535 | ) | (91,780 | ) | (74,762 | ) | (141,923 | ) | (92,290 | ) | (125,657 | ) | ||||||||||||
Change in Class A | 9,620 | 1,041 | 11,376 | (54,323 | ) | (29,927 | ) | (65,544 | ) | |||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | — | 5,017 | 365 | 563 | — | — | ||||||||||||||||||
Reinvested | 17,576 | 14,225 | 3,259 | 6,896 | 1,860 | 3,336 | ||||||||||||||||||
Redeemed | (51,354 | ) | (49,005 | ) | (75,287 | ) | (131,317 | ) | (37,848 | ) | (128,458 | ) | ||||||||||||
Change in Class B | (33,778 | ) | (29,763 | ) | (71,663 | ) | (123,858 | ) | (35,988 | ) | (125,122 | ) | ||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 45,653 | 25,730 | 19,541 | 20,037 | — | — | ||||||||||||||||||
Reinvested | 38,260 | 24,128 | 3,147 | 4,031 | 38 | 35 | ||||||||||||||||||
Redeemed | (78,808 | ) | (70,852 | ) | (33,070 | ) | (57,952 | ) | — | — | ||||||||||||||
Change in Class C | 5,105 | (20,994 | ) | (10,382 | ) | (33,884 | ) | 38 | 35 | |||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 2,135,840 | 4,167,773 | 2,630,979 | 6,546,520 | 3,634,039 | 4,745,845 | ||||||||||||||||||
Reinvested | 1,906,746 | 1,199,266 | 265,539 | 109,808 | 85,379 | 26,967 | ||||||||||||||||||
Redeemed | (3,621,798 | ) | (5,367,005 | ) | (5,823,053 | ) | (4,738,273 | ) | (6,169,494 | ) | (5,042,615 | ) | ||||||||||||
Change in Class Y | 420,788 | 34 | (2,926,535 | ) | 1,918,055 | (2,450,076 | ) | (269,803 | ) | |||||||||||||||
Change in shares | 401,735 | (49,682 | ) | (2,997,204 | ) | 1,705,990 | (2,515,953 | ) | (460,434 | ) | ||||||||||||||
See notes to financial statements.
42
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, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
From Investment Activities: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,812,625 | $ | 2,968,857 | $ | 1,600,839 | $ | 1,997,274 | $ | 3,393,550 | $ | 4,340,495 | ||||||||||||
Net realized gains (losses) from investments | 667,701 | (273,219 | ) | 8,348 | (54,774 | ) | 717,346 | (38,674 | ) | |||||||||||||||
Change in unrealized appreciation/ | 441,526 | 367,254 | 625,732 | (94,705 | ) | 1,004,440 | 288,968 | |||||||||||||||||
Change in net assets resulting from operations | 3,921,852 | 3,062,892 | 2,234,919 | 1,847,795 | 5,115,336 | 4,590,789 | ||||||||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||||||||||
From net investment income | (40,697 | ) | (46,519 | ) | (63,059 | ) | (75,560 | ) | (94,683 | ) | (104,990 | ) | ||||||||||||
Distributions to Class B Shareholders: | ||||||||||||||||||||||||
From net investment income | — | — | — | — | (18,221 | ) | (40,257 | ) | ||||||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||||||||||
From net investment income | (16,899 | ) | (21,528 | ) | (243 | ) | (241 | ) | (31,569 | ) | (53,618 | ) | ||||||||||||
Distributions to Class Y Shareholders: | ||||||||||||||||||||||||
From net investment income | (2,752,365 | ) | (2,884,130 | ) | (1,537,537 | ) | (1,921,473 | ) | (3,249,077 | ) | (4,148,773 | ) | ||||||||||||
Change in net assets from shareholder distributions | (2,809,961 | ) | (2,952,177 | ) | (1,600,839 | ) | (1,997,274 | ) | (3,393,550 | ) | (4,347,638 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital share transactions | (1,719,939 | ) | 1,999,489 | (4,135,556 | ) | (12,448,040 | ) | (16,415,431 | ) | (11,429,346 | ) | |||||||||||||
Change in net assets | (608,048 | ) | 2,110,204 | (3,501,476 | ) | (12,597,519 | ) | (14,693,645 | ) | (11,186,195 | ) | |||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year | 64,303,086 | 62,192,882 | 53,020,225 | 65,617,744 | 90,024,012 | 101,210,207 | ||||||||||||||||||
End of year | $ | 63,695,038 | $ | 64,303,086 | $ | 49,518,749 | $ | 53,020,225 | $ | 75,330,367 | $ | 90,024,012 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (7,382 | ) | $ | (7,378 | ) | $ | 762 | $ | 762 | $ | — | $ | — | ||||||||||
See notes to financial statements.
43
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, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | Year Ended July 31, 2008 | Year Ended July 31, 2007 | |||||||||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 96,490 | $ | 20,205 | $ | 19,987 | $ | 42,943 | $ | 858,808 | $ | 132,054 | ||||||||||||
Dividends reinvested | 36,453 | 39,954 | 51,745 | 64,014 | 54,613 | 58,205 | ||||||||||||||||||
Cost of shares redeemed | (109,635 | ) | (340,020 | ) | (317,241 | ) | (719,044 | ) | (451,758 | ) | (285,647 | ) | ||||||||||||
Change in net assets from Class A | $ | 23,308 | $ | (279,861 | ) | $ | (245,509 | ) | $ | (612,087 | ) | $ | 461,663 | $ | (95,388 | ) | ||||||||
Class B: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 45,565 | $ | 4,275 | ||||||||||||||||||||
Dividends reinvested | 16,895 | 37,740 | ||||||||||||||||||||||
Cost of shares redeemed | (446,815 | ) | (458,927 | ) | ||||||||||||||||||||
Change in net assets from Class B | $ | (384,355 | ) | $ | (416,912 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 86,028 | $ | 98,451 | $ | — | $ | — | $ | 225,776 | $ | 302,132 | ||||||||||||
Dividends reinvested | 16,723 | 21,344 | 241 | 243 | 31,069 | 52,928 | ||||||||||||||||||
Cost of shares redeemed | (158,013 | ) | (286,055 | ) | — | — | (466,888 | ) | (757,324 | ) | ||||||||||||||
Change in net assets from Class C | $ | (55,262 | ) | $ | (166,260 | ) | $ | 241 | $ | 243 | $ | (210,043 | ) | $ | (402,264 | ) | ||||||||
Class Y: | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 18,166,175 | $ | 18,637,875 | $ | 10,990,527 | $ | 6,723,639 | $ | 23,194,578 | $ | 18,585,051 | ||||||||||||
Dividends reinvested | 544,487 | 326,887 | 78,588 | 6,468 | 1,347,356 | 1,840,631 | ||||||||||||||||||
Cost of shares redeemed | (20,398,647 | ) | (16,519,152 | ) | (14,959,403 | ) | (18,566,303 | ) | (40,824,630 | ) | (30,940,464 | ) | ||||||||||||
Change in net assets from Class Y | $ | (1,687,985 | ) | $ | 2,445,610 | $ | (3,890,288 | ) | $ | (11,836,196 | ) | $ | (16,282,696 | ) | $ | (10,514,782 | ) | |||||||
Change in net assets from capital transactions | $ | (1,719,939 | ) | $ | 1,999,489 | $ | (4,135,556 | ) | $ | (12,448,040 | ) | $ | (16,415,431 | ) | $ | (11,429,346 | ) | |||||||
Share Transactions: | ||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||
Issued | 9,913 | 2,103 | 1,966 | 4,260 | 83,669 | 13,116 | ||||||||||||||||||
Reinvested | 3,755 | 4,168 | 5,114 | 6,355 | 5,330 | 5,783 | ||||||||||||||||||
Redeemed | (11,302 | ) | (35,467 | ) | (31,280 | ) | (71,276 | ) | (43,927 | ) | (28,448 | ) | ||||||||||||
Change in Class A | 2,366 | (29,196 | ) | (24,200 | ) | (60,661 | ) | 45,072 | (9,549 | ) | ||||||||||||||
Class B: | ||||||||||||||||||||||||
Issued | 4,490 | 425 | ||||||||||||||||||||||
Reinvested | 1,651 | 3,749 | ||||||||||||||||||||||
Redeemed | (43,853 | ) | (45,582 | ) | ||||||||||||||||||||
Change in Class B | (37,712 | ) | (41,408 | ) | ||||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Issued | 8,842 | 10,275 | — | — | 22,011 | 30,003 | ||||||||||||||||||
Reinvested | 1,724 | 2,228 | 24 | 24 | 3,034 | 5,257 | ||||||||||||||||||
Redeemed | (16,269 | ) | (29,825 | ) | — | — | (45,562 | ) | (75,186 | ) | ||||||||||||||
Change in Class C | (5,703 | ) | (17,322 | ) | 24 | 24 | (20,517 | ) | (39,926 | ) | ||||||||||||||
Class Y: | ||||||||||||||||||||||||
Issued | 1,874,839 | 1,939,987 | 1,081,831 | 664,404 | 2,254,832 | 1,843,594 | ||||||||||||||||||
Reinvested | 56,045 | 34,045 | 7,712 | 639 | 131,548 | 182,747 | ||||||||||||||||||
Redeemed | (2,092,111 | ) | (1,718,044 | ) | (1,472,590 | ) | (1,833,587 | ) | (3,979,619 | ) | (3,071,568 | ) | ||||||||||||
Change in Class Y | (161,227 | ) | 255,988 | (383,047 | ) | (1,168,544 | ) | (1,593,239 | ) | (1,045,227 | ) | |||||||||||||
Change in shares | (164,564 | ) | 209,470 | (407,223 | ) | (1,229,181 | ) | (1,606,396 | ) | (1,136,110 | ) | |||||||||||||
See notes to financial statements.
44
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks (98.3%) | ||||
China (6.3%) | ||||
Consumer Discretionary (2.8%) | ||||
1,093,000 | China Resources Enterprise Ltd. | 2,780,083 | ||
Energy (0.5%) | ||||
310,000 | China Oilfield Services Ltd., Class H | 459,286 | ||
Telecommunications (3.0%) | ||||
5,426,000 | China Telecom Corp. Ltd., Class H | 2,960,134 | ||
6,199,503 | ||||
Hong Kong (25.0%) | ||||
Consumer Discretionary (7.3%) | ||||
369,000 | Cheung Kong Holdings Ltd. | 5,162,597 | ||
150,000 | China Merchants Holdings International Co. Ltd. | 572,167 | ||
85,600 | Esprit Holdings Ltd. | 910,847 | ||
177,200 | Li & Fung Ltd. | 598,604 | ||
7,244,215 | ||||
Energy (1.1%) | ||||
696,500 | CNOOC Ltd. | 1,027,609 | ||
Financials (3.9%) | ||||
630,000 | Hang Lung Group Ltd. | 2,794,176 | ||
82,000 | Wing Hang Bank Ltd. | 1,096,639 | ||
3,890,815 | ||||
Industrials (6.3%) | ||||
117,242 | Kerry Properties Ltd. | 619,201 | ||
437,500 | Swire Pacific Ltd., Class A | 4,673,052 | ||
450,000 | Swire Pacific Ltd., Class B | 956,621 | ||
6,248,874 | ||||
Utilities (6.4%) | ||||
138,000 | CLP Holdings Ltd. | 1,129,319 | ||
2,349,680 | Hong Kong & China Gas Co. Ltd. | 5,171,137 | ||
6,300,456 | ||||
24,711,969 | ||||
India (0.6%) | ||||
Information Technology (0.6%) | ||||
14,500 | Infosys Technologies Ltd., ADR | 571,155 | ||
Malaysia (11.1%) | ||||
Consumer Discretionary (1.9%) | ||||
1,048,900 | Genting Berhad | 1,887,488 | ||
Financials (1.4%) | ||||
513,700 | Bumiputra-Commerce Holdings Berhad | 1,372,305 | ||
Industrials (7.8%) | ||||
2,381,750 | IOI Corp. Berhad | 4,183,596 | ||
1,387,800 | Tenaga Nasional Berhad | 3,562,022 | ||
7,745,618 | ||||
11,005,411 | ||||
Papua New Guinea (7.6%) | ||||
Metals and Mining (7.6%) | ||||
2,890,215 | Lihir Gold Ltd. (b) | 7,509,338 | ||
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Philippines (3.1%) | ||||
Financials (1.4%) | ||||
207,538 | Ayala Corp. | 1,369,613 | ||
Telecommunications (1.7%) | ||||
14,708 | Philippine Long Distance Telephone Co. | 834,401 | ||
14,700 | Philippine Long Distance Telephone Co., ADR | 835,695 | ||
1,670,096 | ||||
3,039,709 | ||||
Singapore (11.2%) | ||||
Consumer Staples (1.2%) | ||||
381,000 | Fraser & Neave Ltd. | 1,224,793 | ||
Financials (4.2%) | ||||
98,000 | Great Eastern Holdings Ltd. | 1,114,133 | ||
498,346 | Oversea-Chinese Banking Corp. Ltd. | 3,048,024 | ||
4,162,157 | ||||
Industrials (2.6%) | ||||
325,000 | Keppel Corp. Ltd. | 2,509,921 | ||
Telecommunications (3.2%) | ||||
769,000 | Singapore Telecommunications Ltd. | 2,001,469 | ||
577,290 | Starhub Ltd. | 1,175,136 | ||
3,176,605 | ||||
11,073,476 | ||||
South Korea (12.6%) | ||||
Consumer Discretionary (3.7%) | ||||
8,980 | LG Corp. | 573,656 | ||
5,969 | Shinsegae Co. Ltd. | 3,073,291 | ||
3,646,947 | ||||
Financials (2.0%) | ||||
9,856 | Samsung Fire & Marine Insurance Co. Ltd. | 1,945,112 | ||
Information Technology (5.3%) | ||||
11,420 | S1 Corp. | 600,950 | ||
8,440 | Samsung Electronics Co. Ltd. | 4,670,641 | ||
5,271,591 | ||||
Pharmaceuticals (1.6%) | ||||
7,569 | Yuhan Corp. | 1,571,157 | ||
12,434,807 | ||||
Taiwan (16.8%) | ||||
Consumer Staples (2.7%) | ||||
322,000 | President Chain Store Corp. | 991,670 | ||
1,262,280 | Uni-President Enterprises Corp. | 1,672,824 | ||
2,664,494 | ||||
Electrical Components & Equipment (2.2%) | ||||
849,111 | Delta Electronics, Inc. | 2,161,292 | ||
Financials (0.4%) | ||||
1,022,200 | E.SUN Financial Holding Co. Ltd. (b) | 446,253 | ||
See accompanying notes to financial statements.
45
PACIFIC CAPITAL FUNDS
New Asia Growth Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Taiwan, continued | ||||
Information Technology (8.0%) | ||||
117,160 | MediaTek, Inc. | 1,214,996 | ||
522,645 | Powertech Technology, Inc. | 1,480,982 | ||
2,874,991 | Taiwan Semiconductor Manufacturing Co. Ltd. | 5,194,114 | ||
7,890,092 | ||||
Telecommunications (3.5%) | ||||
1,382,454 | Chunghwa Telecom Co. Ltd. (b) | 3,499,231 | ||
16,661,362 | ||||
Thailand (4.0%) | ||||
Energy (1.7%) | ||||
225,100 | PTT Public Co. Ltd. | 1,694,807 | ||
Financials (1.2%) | ||||
580,100 | Kasikornbank Public Co. Ltd. | 1,152,560 | ||
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Thailand, continued | ||||
Telecommunications (1.1%) | ||||
527,900 | Advanced Info Service Public Co. Ltd. | 1,072,519 | ||
3,919,886 | ||||
Total Common Stocks (Cost $88,100,013) | 97,126,616 | |||
Investment Companies (0.9%) | ||||
866,033 | Victory Federal Money Market Fund, Investor Shares, 1.93% (c) | 866,033 | ||
Total Investment Companies (Cost $866,033) | 866,033 | |||
Total Investments (Cost $88,966,046) (d)—99.2% | 97,992,649 | |||
Other assets in excess of liabilities—0.8% | 826,861 | |||
Net Assets—100.0% | 98,819,510 | |||
(a) | Securities were fair valued on July 31, 2008. |
(b) | Non-income producing security. |
(c) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(d) | Cost for federal income tax purposes is $89,020,060. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 15,769,493 | ||
Unrealized depreciation | (6,796,904 | ) | ||
Net unrealized appreciation | $ | 8,972,589 | ||
ADR—American Depositary Receipt
See accompanying notes to financial statements.
46
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks (99.5%) | ||||
Australia (3.1%) | ||||
Energy (0.5%) | ||||
18,598 | Woodside Petroleum Ltd. | 933,498 | ||
Financials (0.5%) | ||||
50,059 | Westpac Banking Corp. | 1,004,768 | ||
Materials (2.1%) | ||||
52,480 | BHP Billiton Ltd. | 1,957,913 | ||
15,936 | Rio Tinto Ltd. | 1,865,016 | ||
3,822,929 | ||||
5,761,195 | ||||
Austria (0.8%) | ||||
Financials (0.8%) | ||||
22,577 | Erste Bank de Oesterreichischen Sparkassen AG | 1,439,444 | ||
Brazil (4.9%) | ||||
Energy (1.6%) | ||||
30,045 | Petroleo Brasileiro SA, ADR | 1,679,816 | ||
29,200 | Petroleo Brasileiro SA, ADR, Preferred Shares | 1,338,528 | ||
3,018,344 | ||||
Financials (0.6%) | ||||
55,078 | Banco Itau Holding Financeira SA, ADR | 1,173,161 | ||
Materials (2.0%) | ||||
63,260 | Companhia Vale do Rio Doce (CVRD), ADR | 1,899,698 | ||
64,253 | Companhia Vale do Rio Doce (CVRD), ADR, Preferred Shares | 1,681,501 | ||
3,581,199 | ||||
Utilities (0.7%) | ||||
56,049 | Companhia Energetica de Minas Gerais SA, ADR | 1,331,164 | ||
9,103,868 | ||||
Canada (4.6%) | ||||
Energy (2.0%) | ||||
55,154 | Cameco Corp. | 1,981,683 | ||
30,999 | Suncor Energy, Inc. | 1,689,446 | ||
3,671,129 | ||||
Financials (2.1%) | ||||
24,846 | Bank of Nova Scotia | 1,213,054 | ||
23,460 | IGM Financial, Inc. | 979,467 | ||
44,107 | Manulife Financial Corp. | 1,624,461 | ||
3,816,982 | ||||
Telecommunications (0.5%) | ||||
28,593 | Rogers Communications, Inc. | 966,134 | ||
8,454,245 | ||||
China (5.4%) | ||||
Consumer Discretionary (1.3%) | ||||
2,196,000 | Denway Motors Ltd. | 777,094 | ||
53,033 | Focus Media Holding Ltd., ADR (b) | 1,575,610 | ||
2,352,704 | ||||
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
China, continued | ||||
Energy (0.6%) | ||||
303,500 | China Shenhua Energy Co. Ltd. | 1,119,979 | ||
Financials (1.3%) | ||||
1,548,000 | Agile Property Holdings Ltd. | 1,441,465 | ||
272,500 | China Merchants Bank Co. Ltd. | 982,003 | ||
2,423,468 | ||||
Health Care (0.3%) | ||||
14,255 | China Medical Technologies, Inc. | 683,100 | ||
Industrials (1.4%) | ||||
850,000 | China Communications Construction Co. Ltd., Class H | 1,583,898 | ||
196,000 | Weichai Power Co. Ltd. | 981,356 | ||
2,565,254 | ||||
Telecommunications (0.5%) | ||||
68,000 | China Mobile Ltd. | 908,515 | ||
10,053,020 | ||||
Denmark (1.2%) | ||||
Industrials (1.2%) | ||||
17,442 | Vestas Wind Systems A/S (b) | 2,275,016 | ||
France (9.8%) | ||||
Consumer Discretionary (1.5%) | ||||
9,742 | LVMH Moet Hennessy Louis Vuitton SA | 1,071,308 | ||
7,124 | PPR | 772,769 | ||
23,193 | Vivendi Universal SA | 969,617 | ||
2,813,694 | ||||
Consumer Staples (1.3%) | ||||
26,667 | Carrefour SA | 1,361,869 | ||
13,593 | Groupe DANONE | 1,008,097 | ||
2,369,966 | ||||
Energy (1.5%) | ||||
21,767 | GDF SUEZ | 1,362,146 | ||
18,363 | Total SA, ADR | 1,404,402 | ||
2,766,548 | ||||
Financials (1.6%) | ||||
51,226 | AXA, ADR | 1,505,532 | ||
14,560 | BNP Paribas SA | 1,435,218 | ||
2,940,750 | ||||
Industrials (0.7%) | ||||
11,586 | Schneider Electric SA | 1,282,781 | ||
Materials (0.9%) | ||||
18,243 | ArcelorMittal | 1,613,664 | ||
Media (0.5%) | ||||
50,920 | Societe Television Francaise 1 | 872,252 | ||
Telecommunications (1.1%) | ||||
19,289 | Iliad SA | 2,125,841 | ||
Utilities (0.7%) | ||||
15,185 | Electricite de France | 1,319,322 | ||
18,104,818 | ||||
See accompanying notes to financial statements.
47
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Germany (8.5%) | ||||
Consumer Discretionary (1.4%) | ||||
42,819 | Adidas | 2,617,747 | ||
Consumer Staples (0.5%) | ||||
21,900 | Henkel AG & Co. KGaA | 872,922 | ||
Financials (1.3%) | ||||
40,180 | Commerzbank AG | 1,282,562 | ||
10,628 | Deutsche Boerse AG | 1,202,756 | ||
2,485,318 | ||||
Health Care (0.5%) | ||||
7,131 | Merck KGaA | 861,175 | ||
Industrials (1.1%) | ||||
10,235 | Q-Cells AG (b) | 989,475 | ||
9,060 | Siemens AG | 1,101,201 | ||
2,090,676 | ||||
Information Technology (1.8%) | ||||
56,200 | SAP AG, ADR | 3,248,922 | ||
Materials (1.2%) | ||||
14,437 | Bayer AG | 1,240,991 | ||
5,106 | Wacker Chemie AG | 1,055,618 | ||
2,296,609 | ||||
Utilities (0.7%) | ||||
6,450 | E.ON AG | 1,232,171 | ||
15,705,540 | ||||
Greece (1.2%) | ||||
Consumer Discretionary (0.3%) | ||||
20,432 | Folli-Follie SA, Registered Shares | 513,878 | ||
Financials (0.9%) | ||||
28,966 | National Bank of Greece SA | 1,364,337 | ||
15,410 | Piraeus Bank SA | 460,162 | ||
1,824,499 | ||||
2,338,377 | ||||
Hong Kong (2.2%) | ||||
Consumer Discretionary (1.6%) | ||||
192,700 | Esprit Holdings Ltd. | 2,050,470 | ||
290,000 | Li & Fung Ltd. | 979,657 | ||
3,030,127 | ||||
Information Technology (0.6%) | ||||
1,087,000 | Foxconn International Holdings Ltd. (b) | 1,030,579 | ||
4,060,706 | ||||
India (2.1%) | ||||
Financials (0.6%) | ||||
13,025 | HDFC Bank Ltd., ADR | 1,018,295 | ||
Information Technology (1.5%) | ||||
72,636 | Infosys Technologies Ltd., ADR | 2,861,132 | ||
3,879,427 | ||||
Israel (0.7%) | ||||
Health Care (0.7%) | ||||
27,616 | Teva Pharmaceutical Industries Ltd., ADR | 1,238,301 | ||
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Italy (2.8%) | ||||
Energy (2.1%) | ||||
38,413 | ENI SpA | 1,296,108 | ||
68,673 | Saipem SpA | 2,654,799 | ||
3,950,907 | ||||
Financials (0.7%) | ||||
211,136 | UniCredito Italiano SpA | 1,257,784 | ||
5,208,691 | ||||
Japan (12.7%) | ||||
Chemicals (1.2%) | ||||
38,000 | Shin-Etsu Chemical Co. Ltd. | 2,325,254 | ||
Consumer Discretionary (1.1%) | ||||
36,700 | Denso Corp. | 953,572 | ||
16,300 | Yamada Denki Co. Ltd. | 1,104,758 | ||
2,058,330 | ||||
Financials (3.7%) | ||||
205,000 | Bank of Yokohama Ltd. (The) | 1,322,108 | ||
85,500 | Nomura Holdings, Inc. | 1,234,045 | ||
8,950 | ORIX Corp. | 1,355,212 | ||
46,900 | Promise Co. Ltd. | 1,194,652 | ||
243,000 | Sumitomo Trust & Banking Co. Ltd. (The) | 1,673,471 | ||
6,779,488 | ||||
Health Care (0.5%) | ||||
52,000 | Shionogi & Co. Ltd. | 1,018,545 | ||
Industrials (2.1%) | ||||
11,500 | FANUC Ltd. | 913,364 | ||
67,000 | NGK Insulators Ltd. | 974,918 | ||
68,900 | Sumitomo Corp. | 930,168 | ||
55,300 | THK Co. Ltd. | 986,739 | ||
3,805,189 | ||||
Information Technology (3.6%) | ||||
19,550 | Canon, Inc. | 893,662 | ||
14,600 | Nidec Corp. | 1,031,385 | ||
7,800 | Nintendo Co. Ltd. | 3,784,976 | ||
107,000 | Yaskawa Electric Corp. | 900,804 | ||
6,610,827 | ||||
Materials (0.0%) | ||||
2,100 | Nitto Denko Corp. | 60,130 | ||
Telecommunications (0.5%) | ||||
160 | KDDI Corp. | 916,697 | ||
23,574,460 | ||||
Luxembourg (0.8%) | ||||
Telecommunications (0.8%) | ||||
18,035 | Millicom International Cellular SA | 1,395,548 | ||
Malaysia (0.5%) | ||||
Financials (0.5%) | ||||
323,000 | Bumiputra-Commerce Holdings Berhad | 862,867 | ||
See accompanying notes to financial statements.
48
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Mexico (1.3%) | ||||
Consumer Staples (0.5%) | ||||
23,853 | Wal-Mart de Mexico SA de CV, ADR | 970,953 | ||
Telecommunications (0.8%) | ||||
27,363 | America Movil SAB de CV, Series L | 1,381,558 | ||
2,352,511 | ||||
Netherlands (0.6%) | ||||
Consumer Discretionary (0.6%) | ||||
33,190 | Koninklijke (Royal) Philips Electronics NV | 1,104,563 | ||
Norway (1.5%) | ||||
Energy (0.8%) | ||||
61,300 | Subsea 7, Inc. (b) | 1,441,182 | ||
Industrials (0.7%) | ||||
47,276 | Renewable Energy Corp. AS (b) | 1,369,761 | ||
2,810,943 | ||||
Russia (4.8%) | ||||
Consumer Staples (0.4%) | ||||
7,576 | Wimm-Bill-Dann Foods, ADR (b) | 737,145 | ||
Energy (2.1%) | ||||
16,670 | LUKOIL, ADR | 1,391,945 | ||
51,652 | OAO Gazprom, ADR | 2,488,077 | ||
3,880,022 | ||||
Materials (1.8%) | ||||
18,631 | Evraz Group SA, GDR (c) | 1,788,576 | ||
72,767 | JSC MMC Norilsk Nickel, ADR | 1,535,383 | ||
3,323,959 | ||||
Telecommunications (0.5%) | ||||
11,775 | Mobile TeleSystems ADR | 840,735 | ||
8,781,861 | ||||
Singapore (1.9%) | ||||
Financials (1.3%) | ||||
108,000 | DBS Group Holdings Ltd. | 1,502,539 | ||
280,000 | Keppel Land Ltd. | 991,963 | ||
2,494,502 | ||||
Industrials (0.6%) | ||||
138,000 | Keppel Corp. Ltd. | 1,065,751 | ||
3,560,253 | ||||
South Africa (0.7%) | ||||
Telecommunications (0.7%) | ||||
78,945 | MTN Group Ltd. | 1,353,139 | ||
South Korea (1.9%) | ||||
Financials (0.4%) | ||||
13,945 | Kookmin Bank | 790,967 | ||
Information Technology (1.5%) | ||||
5,037 | Samsung Electronics Co. Ltd. | 2,787,443 | ||
3,578,410 | ||||
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
Spain (3.3%) | ||||
Financials (2.5%) | ||||
73,289 | Banco Bilbao Vizcaya Argentaria SA | 1,346,713 | ||
170,226 | Banco Santander Central Hispano SA | 3,313,453 | ||
4,660,166 | ||||
Telecommunications (0.8%) | ||||
57,020 | Telefonica SA | 1,479,388 | ||
6,139,554 | ||||
Switzerland (8.1%) | ||||
Consumer Staples (1.2%) | ||||
52,228 | Nestle SA | 2,291,417 | ||
Financials (1.5%) | ||||
55,318 | Credit Suisse Group | 2,763,112 | ||
Health Care (4.2%) | ||||
5,999 | Lonza Group AG, Registered Shares | 869,690 | ||
34,452 | Nobel Biocare Holding AG | 1,059,318 | ||
44,435 | Novartis AG | 2,638,417 | ||
17,177 | Roche Holding AG, Genusschien | 3,174,260 | ||
7,741,685 | ||||
Industrials (0.6%) | ||||
44,192 | ABB Ltd. (b) | 1,158,784 | ||
Materials (0.6%) | ||||
3,500 | Syngenta AG | 1,018,993 | ||
14,973,991 | ||||
Taiwan (0.6%) | ||||
Information Technology (0.6%) | ||||
594,903 | Taiwan Semiconductor Manufacturing Co. Ltd. | 1,074,783 | ||
United Kingdom (13.5%) | ||||
Consumer Discretionary (1.0%) | ||||
199,033 | British Sky Broadcasting Group PLC | 1,783,678 | ||
Consumer Staples (1.3%) | ||||
349,738 | Tesco PLC | 2,483,895 | ||
Energy (0.8%) | ||||
59,666 | Wellstream Holdings PLC (b)(c) | 1,409,252 | ||
Financials (4.6%) | ||||
226,213 | HBOS PLC | 1,290,726 | ||
82,509 | HSBC Holdings PLC | 1,357,802 | ||
237,414 | ICAP PLC | 2,341,779 | ||
146,239 | Man Group PLC | 1,766,195 | ||
158,550 | Prudential Corp. PLC | 1,697,658 | ||
8,454,160 | ||||
Health Care (1.5%) | ||||
16,086 | AstraZeneca PLC | 781,726 | ||
185,939 | Smith & Nephew PLC | 1,985,293 | ||
2,767,019 | ||||
See accompanying notes to financial statements.
49
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($)(a) | ||
Common Stocks, continued | ||||
United Kingdom, continued | ||||
Industrials (1.2%) | ||||
234,111 | Michael Page International PLC | 1,192,713 | ||
25,394 | Vedanta Resources PLC | 1,004,021 | ||
2,196,734 | ||||
Information Technology (1.7%) | ||||
603,786 | ARM Holdings PLC | 1,138,634 | ||
96,772 | Autonomy Corp. PLC (b) | 2,038,585 | ||
3,177,219 | ||||
Materials (0.7%) | ||||
41,712 | BHP Billiton Ltd. PLC | 1,380,282 | ||
Telecommunications (0.7%) | ||||
48,659 | Vodafone Group PLC, ADR | 1,305,521 | ||
24,957,760 | ||||
Total Common Stocks (Cost $183,096,047) | 184,143,291 | |||
Rights (0.1%) | ||||
France (0.1%) | ||||
Water (0.1%) | ||||
22,804 | Suez Environnement SA (b) | 163,966 | ||
Total Rights (Cost $162,081) | 163,966 | |||
Shares | Security | Value ($)(a) | |||
Exchange Traded Funds (0.5%) | |||||
United States (0.5%) | |||||
Equity Fund (0.5%) | |||||
11,294 | iShares MSCI EAFE Index Fund | 749,808 | |||
4,355 | iShares MSCI Emerging Markets Index Fund | 185,741 | |||
Total Exchange Traded Funds (Cost $946,866) | 935,549 | ||||
Total Investments (Cost $184,204,994) (d)—100.1% | 185,242,806 | ||||
Liabilities in excess of other assets—(0.1)% | (294,781 | ) | |||
Net Assets—100.0% | 184,948,025 | ||||
(a) | Securities were fair valued on July 31, 2008. |
(b) | Non-income producing security. |
(c) | Restricted security. |
(d) | Cost for federal income tax purposes is $185,293,724. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 19,635,775 | ||
Unrealized depreciation | (19,686,693 | ) | ||
Net unrealized appreciation | $ | (50,918 | ) | |
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
PLC—Public Liability Co.
See accompanying notes to financial statements.
50
PACIFIC CAPITAL FUNDS
International Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2008
At July 31, 2008 the Fund’s foreign exchange contracts were as follows:
Currency | Delivery Date | Contract Amount in Local Currency | Contract Value in USD | Value | Unrealized Appreciation/ Depreciation | ||||||||||||
Short: | |||||||||||||||||
Australian Dollar | 8/5/08 | (113,256 | ) | $ | (106,630 | ) | $ | (106,545 | ) | $ | 85 | ||||||
Canadian Dollar | 8/1/08 | (48,514 | ) | (47,257 | ) | (47,391 | ) | (134 | ) | ||||||||
Swiss Franc | 8/4/08 | (545,892 | ) | (521,088 | ) | (521,311 | ) | (223 | ) | ||||||||
Euro | 8/1/08 | (565,528 | ) | (879,961 | ) | (882,052 | ) | (2,091 | ) | ||||||||
8/4/08 | (27,741 | ) | (43,080 | ) | (43,259 | ) | (179 | ) | |||||||||
Japanese Yen | 8/1/08 | (19,510,836 | ) | (180,206 | ) | (180,874 | ) | (668 | ) | ||||||||
8/4/08 | (87,451,330 | ) | (807,415 | ) | (810,902 | ) | (3,487 | ) | |||||||||
Malaysian Riggit | 8/4/08 | (62,057 | ) | (19,015 | ) | (19,068 | ) | (53 | ) | ||||||||
Singapore Dollar | 8/4/08 | (100,389 | ) | (73,266 | ) | (73,448 | ) | (182 | ) | ||||||||
Total Short Contracts |
| $ | (2,677,918 | ) | $ | (2,684,850 | ) | $ | (6,932 | ) | |||||||
Long: | |||||||||||||||||
Great British Pound | 8/1/08 | 196,143 | $ | 391,560 | $ | 388,733 | $ | (2,827 | ) | ||||||||
South African Rand | 8/4/08 | 323,505 | 43,179 | 44,110 | 931 | ||||||||||||
Total Long Contracts |
| $ | 434,739 | $ | 432,843 | $ | (1,896 | ) | |||||||||
See accompanying notes to financial statements.
51
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks (98.7%) | ||||
Commercial Services (2.4%) | ||||
33,012 | ATC Technology Corp. (a) | 829,261 | ||
17,600 | Heartland Payment Systems, Inc. | 404,976 | ||
32,400 | Houston Wire & Cable Co. | 637,632 | ||
103,000 | Navigant Consulting, Inc. (a) | 1,903,440 | ||
13,100 | United Rentals, Inc. (a) | 211,958 | ||
15,900 | ValueClick, Inc. (a) | 189,210 | ||
46,122 | Watson Wyatt & Co. Holdings | 2,672,309 | ||
14,300 | WESCO International, Inc. (a) | 538,395 | ||
7,387,181 | ||||
Consumer Discretionary (13.7%) | ||||
24,900 | Aaron Rents, Inc. | 684,003 | ||
63,472 | Aeropostale, Inc. (a) | 2,046,972 | ||
14,800 | American Eagle Outfitters, Inc. | 207,200 | ||
14,800 | American Greetings Corp., Class A | 219,336 | ||
16,500 | AnnTaylor Stores Corp. (a) | 372,075 | ||
18,499 | Apogee Enterprises, Inc. | 319,663 | ||
9,600 | Barnes & Noble, Inc. | 227,136 | ||
39,100 | Big Lots, Inc. (a) | 1,190,986 | ||
21,100 | Brown Shoe Co., Inc. | 340,554 | ||
21,800 | Buckeye Technologies, Inc. (a) | 212,550 | ||
24,189 | Cato Corp. (The) | 432,741 | ||
16,700 | CEC Entertainment, Inc. (a) | 582,162 | ||
4,231 | Central European Media Enterprises Ltd., Class A (a) | 352,231 | ||
25,002 | Charlotte Russe Holding, Inc. (a) | 324,026 | ||
26,000 | Chattem, Inc. (a) | 1,676,220 | ||
14,200 | Choice Hotels International, Inc. | 352,870 | ||
7,700 | Consolidated Graphics, Inc. (a) | 257,950 | ||
9,000 | CPI Corp. | 123,930 | ||
24,467 | Deckers Outdoor Corp. (a) | 2,765,016 | ||
22,400 | DeVry, Inc. | 1,272,544 | ||
24,110 | Elizabeth Arden, Inc. (a) | 393,716 | ||
32,500 | Fresh Del Monte Produce, Inc. (a) | 685,100 | ||
7,600 | Fuel Systems Solutions, Inc. (a) | 284,392 | ||
134,600 | Furniture Brands International, Inc. | 1,597,702 | ||
20,400 | Genesco, Inc. (a) | 599,760 | ||
25,000 | Gymboree Corp. (The) (a) | 935,000 | ||
16,100 | Helen of Troy Ltd. (a) | 331,016 | ||
42,100 | Hot Topic, Inc. (a) | 264,809 | ||
51,642 | ICF International, Inc. (a) | 978,099 | ||
59,300 | IKON Office Solutions, Inc. | 847,990 | ||
13,053 | International Speedway Corp., Class A | 480,220 | ||
17,927 | ITT Educational Services, Inc. (a) | 1,587,974 | ||
9,048 | Jack in the Box, Inc. (a) | 195,256 | ||
53,799 | JAKKS Pacific, Inc. (a) | 1,182,502 | ||
9,700 | Lear Corp. (a) | 139,777 | ||
16,961 | Live Nation, Inc. (a) | 214,048 | ||
39,600 | Martha Stewart Living Omnimedia, Inc., Class A (a) | 288,684 | ||
22,600 | Marvel Entertainment, Inc. (a) | 784,220 | ||
6,100 | MAXIMUS, Inc. | 226,371 | ||
27,700 | Meritage Homes Corp. (a) | 499,985 | ||
15,349 | Movado Group, Inc. | 330,003 | ||
24,683 | Netflix, Inc. (a) | 762,458 | ||
19,300 | Pactiv Corp. (a) | 465,323 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Consumer Discretionary, continued | ||||
10,490 | Papa John’s International, Inc. (a) | 296,762 | ||
22,700 | PeopleSupport, Inc. (a) | 210,656 | ||
9,600 | Perry Ellis International, Inc. (a) | 208,800 | ||
10,800 | Phillips Van Heusen Corp. | 382,320 | ||
5,700 | Polaris Industries, Inc. | 243,960 | ||
10,000 | Pre-Paid Legal Services, Inc. (a) | 420,200 | ||
11,747 | Priceline.com, Inc. (a) | 1,350,317 | ||
40,700 | Quiksilver, Inc. (a) | 312,169 | ||
43,555 | Rent-A-Center, Inc. (a) | 923,366 | ||
15,200 | Rick’s Cabaret International, Inc. (a) | 232,560 | ||
40,107 | Sally Beauty Holdings, Inc. (a) | 296,792 | ||
17,385 | Scholastic Corp. | 448,359 | ||
67,113 | Skechers USA, Inc., Class A (a) | 1,268,436 | ||
18,635 | Sotheby’s Holdings, Inc. | 516,935 | ||
97,352 | Source Interlink Cos., Inc. (a) | 165,498 | ||
31,700 | Spartan Motors, Inc. | 171,814 | ||
18,483 | Steven Madden Ltd. (a) | 415,683 | ||
2,200 | Strayer Education, Inc. | 489,940 | ||
13,764 | Tenneco, Inc. (a) | 198,477 | ||
76,200 | True Religion Apparel, Inc. (a) | 1,969,008 | ||
95,700 | Valassis Communications, Inc. (a) | 844,074 | ||
28,100 | Warnaco Group, Inc. (The) (a) | 1,178,795 | ||
13,400 | Winn-Dixie Stores, Inc. (a) | 212,926 | ||
54,800 | WMS Industries, Inc. (a) | 1,544,264 | ||
14,459 | Wolverine World Wide, Inc. | 386,489 | ||
42,723,170 | ||||
Consumer Staples (6.2%) | ||||
15,800 | Andersons, Inc. (The) | 718,110 | ||
23,700 | BJ’s Wholesale Club, Inc. (a) | 889,461 | ||
27,100 | Central European Distribution Corp. (a) | 1,977,216 | ||
54,300 | Children’s Place Retail Stores, Inc. (The) (a) | 2,066,115 | ||
26,000 | Chiquita Brands International, Inc. (a) | 399,100 | ||
49,736 | Comfort Systems USA, Inc. | 659,499 | ||
1,489 | Corn Products International, Inc. | 69,253 | ||
156,400 | Darling International, Inc. (a) | 2,530,552 | ||
122,100 | Del Monte Foods Co. | 1,036,629 | ||
29,100 | Diamond Foods, Inc. | 707,712 | ||
16,321 | Ennis, Inc. | 252,160 | ||
158,400 | Finish Line, Inc. (The), Class A (a) | 1,718,640 | ||
10,200 | Hansen Natural Corp. (a) | 233,172 | ||
45,800 | Jones Apparel Group, Inc. | 766,692 | ||
25,798 | Longs Drug Stores Corp. | 1,206,057 | ||
24,067 | Mannatech, Inc. | 159,564 | ||
82,800 | Nu Skin Enterprises, Inc., Class A | 1,338,048 | ||
58,838 | Pantry, Inc. (a) | 940,820 | ||
10,200 | Ralcorp Holdings, Inc. (a) | 550,392 | ||
22,600 | Stage Stores, Inc. | 334,932 | ||
12,600 | Tupperware Brands Corp. | 491,400 | ||
106,800 | Wet Seal, Inc. (The), Class A (a) | 468,852 | ||
19,514,376 | ||||
Energy (5.8%) | ||||
16,110 | Atmos Energy Corp. | 426,432 | ||
14,700 | Atwood Oceanics, Inc. (a) | 674,877 | ||
11,600 | Berry Petroleum Co., Class A | 499,264 |
See accompanying notes to financial statements.
52
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Energy, continued | ||||
28,163 | Callon Petroleum Co. (a) | 647,468 | ||
19,376 | Cleco Corp. | 486,919 | ||
15,500 | Comstock Resources, Inc. (a) | 945,655 | ||
19,100 | CVR Energy, Inc. (a) | 302,735 | ||
29,791 | Delek US Holdings, Inc. | 238,030 | ||
28,500 | Frontier Oil Corp. | 520,125 | ||
17,682 | Great Plains Energy, Inc. | 446,647 | ||
53,100 | Grey Wolf, Inc. (a) | 453,474 | ||
6,800 | Gulf Island Fabrication, Inc. | 301,580 | ||
54,747 | Headwaters, Inc. (a) | 717,733 | ||
15,800 | Holly Corp. | 451,564 | ||
9,300 | Mariner Energy, Inc. (a) | 246,078 | ||
39,532 | Parker Drilling Co. (a) | 319,023 | ||
26,000 | Petroleum Development Corp. (a) | 1,438,060 | ||
45,418 | Pioneer Drilling Co. (a) | 721,692 | ||
82,000 | Rosetta Resources, Inc. (a) | 1,936,840 | ||
20,901 | Southwest Gas Corp. | 604,039 | ||
22,718 | St. Mary Land & Exploration Co. | 966,878 | ||
25,700 | Stone Energy Corp. (a) | 1,311,214 | ||
37,916 | Swift Energy Co. (a) | 1,926,891 | ||
16,004 | Trico Marine Services, Inc. (a) | 408,422 | ||
45,054 | Union Drilling, Inc. (a) | 867,740 | ||
8,300 | W&T Offshore, Inc. | 367,358 | ||
18,226,738 | ||||
Financials (9.6%) | ||||
21,262 | Allied World Assurance Co. Holdings Ltd. | 884,712 | ||
33,800 | American Equity Investment Life Holding Co. | 295,412 | ||
18,700 | American Physicians Capital, Inc. | 930,886 | ||
82,706 | Amerisafe, Inc. (a) | 1,502,768 | ||
25,500 | AmTrust Financial Services, Inc. | 371,535 | ||
10,959 | Argo Group International Holdings Ltd. (a) | 373,044 | ||
25,800 | Aspen Insurance Holdings Ltd. | 655,062 | ||
17,000 | Calamos Asset Management, Inc. | 347,820 | ||
13,600 | Cash America International, Inc. | 573,376 | ||
19,200 | Cohen & Steers, Inc. | 480,384 | ||
22,000 | Community Bank System, Inc. | 519,200 | ||
4,000 | Cullen/Frost Bankers, Inc. | 210,960 | ||
69,410 | CVB Financial Corp. | 785,721 | ||
23,396 | Deluxe Corp. | 334,563 | ||
63,700 | Dime Community Bancshares | 1,065,701 | ||
17,467 | Dollar Financial Corp. (a) | 337,812 | ||
23,200 | EZCORP, Inc., Class A (a) | 417,136 | ||
24,949 | F.N.B. Corp. | 282,672 | ||
16,800 | FCStone Group, Inc. (a) | 323,568 | ||
73,046 | First Commonwealth Financial Corp. | 832,724 | ||
48,347 | First Niagara Financial Group, Inc. | 676,375 | ||
12,600 | FPIC Insurance Group, Inc. (a) | 629,370 | ||
13,600 | Glacier Bancorp, Inc. | 294,712 | ||
5,700 | Greenhill & Co., Inc. | 350,151 | ||
6,800 | Hancock Holding Co. | 305,252 | ||
14,500 | Interactive Brokers Group, Inc., Class A (a) | 406,870 | ||
54,768 | Knight Capital Group, Inc. (a) | 897,647 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
35,400 | National Penn Bancshares, Inc. | 475,422 | ||
8,600 | Navigators Group, Inc. (a) | 409,016 | ||
38,300 | Old National Bancorp | 581,394 | ||
20,100 | optionsXpress Holdings, Inc. | 498,681 | ||
27,200 | Oriental Financial Group, Inc. | 472,464 | ||
13,100 | Platinum Underwriters Holdings Ltd. | 472,910 | ||
14,140 | ProAssurance Corp. (a) | 692,012 | ||
33,400 | Provident Financial Services, Inc. | 487,306 | ||
20,100 | Provident New York Bancorp | 246,828 | ||
11,900 | S&T Bancorp, Inc. | 399,126 | ||
17,567 | Safety Insurance Group, Inc. | 746,070 | ||
29,500 | SeaBright Insurance Holdings, Inc. (a) | 339,250 | ||
23,737 | Selective Insurance Group, Inc. | 512,719 | ||
18,600 | Sterling Bancorp | 261,144 | ||
98,657 | Sterling Bancshares, Inc. | 958,946 | ||
128,183 | Susquehanna Bancshares, Inc. | 1,835,581 | ||
5,069 | SVB Financial Group (a) | 291,924 | ||
23,200 | SWS Group, Inc. | 438,944 | ||
25,000 | thinkorswim Group, Inc. (a) | 200,750 | ||
27,097 | UMB Financial Corp. | 1,492,232 | ||
10,514 | Umpqua Holdings Corp. | 142,780 | ||
47,309 | Waddell & Reed Financial, Inc., Class A | 1,580,121 | ||
7,900 | Westamerica Bancorp | 410,800 | ||
6,754 | Wilmington Trust Corp. | 159,192 | ||
9,100 | World Acceptance Corp. (a) | 298,116 | ||
14,745 | Zenith National Insurance Corp. | 507,375 | ||
29,996,536 | ||||
Health Care (13.0%) | ||||
46,690 | Acadia Pharmaceuticals, Inc. (a) | 139,136 | ||
86,100 | Adolor Corp. (a) | 345,261 | ||
89,800 | Alkermes, Inc. (a) | 1,414,350 | ||
153,719 | American Oriental Bioengineering, Inc. (a) | 1,452,645 | ||
21,921 | Amerigroup Corp. (a) | 556,793 | ||
31,500 | AngioDynamics, Inc. (a) | 500,220 | ||
93,515 | Arena Pharmaceuticals, Inc. (a) | 634,032 | ||
11,100 | Auxilium Pharmaceuticals, Inc. (a) | 411,810 | ||
49,100 | Bruker Corp. (a) | 678,562 | ||
71,243 | Celera Corp. (a) | 972,467 | ||
22,600 | Centene Corp. (a) | 504,206 | ||
14,500 | Chindex International, Inc. (a) | 224,895 | ||
8,100 | CONMED Corp. (a) | 246,159 | ||
17,700 | Cubist Pharmaceuticals, Inc. (a) | 401,082 | ||
149,459 | CV Therapeutics, Inc. (a) | 1,400,431 | ||
99,130 | Cytokinetics, Inc. (a) | 523,406 | ||
51,800 | Exelixis, Inc. (a) | 362,600 | ||
58,138 | Healthspring, Inc. (a) | 1,130,784 | ||
16,200 | Herbalife Ltd. | 699,678 | ||
17,300 | Hill-Rom Holdings, Inc. | 485,957 | ||
87,252 | Human Genome Sciences, Inc. (a) | 578,481 | ||
16,097 | ICU Medical, Inc. (a) | 457,638 | ||
129,055 | Incyte Pharmaceuticals, Inc. (a) | 1,195,049 | ||
16,800 | InterMune, Inc. (a) | 288,624 | ||
91,033 | Invacare Corp. | 2,142,007 | ||
17,000 | Kendle International, Inc. (a) | 699,550 |
See accompanying notes to financial statements.
53
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Health Care, continued | ||||
24,000 | King Pharmaceuticals, Inc. (a) | 276,240 | ||
62,906 | LifePoint Hospitals, Inc. (a) | 1,800,999 | ||
15,800 | Martek Biosciences Corp. (a) | 594,238 | ||
18,500 | MedCath Corp. (a) | 345,395 | ||
106,200 | Medicines Co. (The) (a) | 2,358,702 | ||
57,500 | Merit Medical Systems, Inc. (a) | 1,162,075 | ||
118,268 | NPS Pharmaceuticals, Inc. (a) | 632,734 | ||
22,012 | Obagi Medical Products, Inc. (a) | 209,554 | ||
14,400 | Onyx Pharmaceuticals, Inc. (a) | 583,200 | ||
51,000 | Owens & Minor, Inc. | 2,341,920 | ||
48,373 | Perrigo Co. | 1,704,181 | ||
28,195 | Phoenix Cos, Inc. (The) | 274,337 | ||
13,900 | Progenics Pharmaceuticals, Inc. (a) | 229,350 | ||
72,962 | Regeneron Pharmaceuticals, Inc. (a) | 1,597,138 | ||
88,689 | Rigel Pharmaceuticals, Inc. (a) | 2,256,248 | ||
53,800 | Salix Pharmaceuticals Ltd. (a) | 429,324 | ||
35,402 | Sciele Pharma, Inc. | 660,247 | ||
22,081 | STERIS Corp. | 754,508 | ||
32,106 | Symmetry Medical, Inc. (a) | 536,491 | ||
17,700 | Theravance, Inc. (a) | 282,846 | ||
23,900 | Vertex Pharmaceuticals, Inc. (a) | 824,550 | ||
37,822 | ViroPharma, Inc. (a) | 465,589 | ||
12,100 | VNUS Medical Technologies, Inc. (a) | 246,356 | ||
8,300 | Watson Pharmaceuticals, Inc. (a) | 239,953 | ||
17,586 | XenoPort, Inc. (a) | 805,791 | ||
60,347 | ZymoGenetics, Inc. (a) | 518,984 | ||
40,576,773 | ||||
Industrials (16.9%) | ||||
10,401 | A.O. Smith Corp. | 412,920 | ||
52,014 | Actuant Corp., Class A | 1,584,346 | ||
47,055 | Acuity Brands, Inc. | 1,922,667 | ||
4,000 | Analogic Corp. | 292,720 | ||
49,706 | Applied Industrial Technologies | 1,328,144 | ||
6,200 | AZZ, Inc. (a) | 283,774 | ||
9,500 | Be Aerospace, Inc. (a) | 243,960 | ||
10,400 | Bucyrus International, Inc. | 728,104 | ||
11,869 | Cabot Microelectronics Corp. (a) | 463,366 | ||
40,818 | Ceradyne, Inc. (a) | 1,891,914 | ||
1,862 | CF Industries Holdings, Inc. | 304,363 | ||
16,886 | Checkpoint Systems, Inc. (a) | 355,788 | ||
77,717 | Complete Production Services, Inc. (a) | 2,474,509 | ||
13,210 | COMSYS IT Partners, Inc. (a) | 135,403 | ||
30,632 | Cox Radio, Inc., Class A (a) | 302,950 | ||
22,563 | CTS Corp. | 290,160 | ||
14,470 | Cymer, Inc. (a) | 383,310 | ||
17,100 | Dawson Geophysical Co. (a) | 1,122,273 | ||
11,300 | Ducommun, Inc. (a) | 309,733 | ||
40,256 | EMCOR Group, Inc. (a) | 1,212,511 | ||
32,200 | Encore Wire Corp. | 587,006 | ||
16,426 | EnPro Industries, Inc. (a) | 591,500 | ||
35,800 | Esterline Technologies Corp. (a) | 1,746,324 | ||
11,231 | First Advantage Corp., Class A (a) | 170,262 | ||
10,481 | FLIR Systems, Inc. (a) | 426,996 | ||
13,400 | Flowers Foods, Inc. | 402,938 | ||
41,730 | Gardner Denver, Inc. (a) | 1,902,888 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Industrials, continued | ||||
15,534 | Graco, Inc. | 562,797 | ||
134,500 | GrafTech International Ltd. (a) | 3,154,025 | ||
4,800 | Graham Corp. | 427,200 | ||
8,500 | Granite Construction, Inc. | 268,855 | ||
41,886 | H.B. Fuller Co. | 1,047,150 | ||
13,100 | HEICO Corp. | 456,142 | ||
11,249 | Heidrick & Struggles International, Inc. | 319,022 | ||
32,363 | Hub Group, Inc. (a) | 1,257,626 | ||
16,500 | Insteel Industries, Inc. | 291,555 | ||
17,000 | Intevac, Inc. (a) | 181,050 | ||
22,100 | ION Geophysical Corp. (a) | 352,937 | ||
13,600 | Koppers Holdings, Inc. | 587,656 | ||
8,900 | Layne Christensen Co. (a) | 406,463 | ||
16,005 | Lennox International, Inc. | 571,378 | ||
40,100 | Matthews International Corp., Class A | 2,001,391 | ||
59,374 | MKS Instruments, Inc. (a) | 1,223,104 | ||
53,213 | MPS Group, Inc. (a) | 613,014 | ||
15,326 | Mueller Industries, Inc. | 393,418 | ||
17,000 | NCI Building Systems, Inc. (a) | 636,820 | ||
9,000 | Nordson Corp. | 635,940 | ||
30,800 | Oil States International, Inc. (a) | 1,690,304 | ||
61,300 | Olin Corp. | 1,823,062 | ||
40,688 | Perini Corp. (a) | 1,113,224 | ||
151,500 | QLogic Corp. (a) | 2,854,260 | ||
15,300 | Regal-Beloit Corp. | 638,775 | ||
44,990 | Robbins & Myers, Inc. | 2,284,142 | ||
9,600 | Rock-Tenn Co. | 341,280 | ||
14,200 | Schnitzer Steel Industries, Inc. | 1,281,408 | ||
8,861 | Speedway Motorsports, Inc. | 171,106 | ||
49,102 | Spherion Corp. (a) | 240,109 | ||
31,030 | Steelcase, Inc. | 309,059 | ||
16,184 | Sun Hydraulic Corp. | 666,781 | ||
21,731 | Technitrol, Inc. | 304,669 | ||
11,940 | Teledyne Technologies, Inc. (a) | 751,026 | ||
3,571 | Triumph Group, Inc. | 189,120 | ||
54,241 | Ultra Clean Holdings, Inc. (a) | 355,279 | ||
11,876 | Varian Semiconductor Equipment Associates, Inc. (a) | 347,017 | ||
15,383 | W.R. Grace & Co. (a) | 396,420 | ||
53,015,413 | ||||
Information Technology (15.9%) | ||||
75,682 | Advanced Energy Industries, Inc. (a) | 1,045,925 | ||
33,724 | American Reprographics Co. (a) | 539,921 | ||
139,800 | Amkor Technology, Inc. (a) | 1,224,648 | ||
60,248 | ANSYS, Inc. (a) | 2,764,178 | ||
11,300 | Argon ST, Inc. (a) | 280,014 | ||
59,600 | Arris Group, Inc. (a) | 570,372 | ||
105,400 | Art Technology Group, Inc. (a) | 386,818 | ||
26,300 | AsiaInfo Holdings, Inc. (a) | 362,151 | ||
10,474 | Avid Technology, Inc. (a) | 231,580 | ||
58,714 | Avocent Corp. (a) | 1,396,219 | ||
34,700 | Axsys Technologies, Inc. (a) | 2,548,368 | ||
33,496 | Benchmark Electronics, Inc. (a) | 490,381 | ||
42,392 | Brocade Communications Systems, Inc. (a) | 286,146 |
See accompanying notes to financial statements.
54
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Information Technology, continued | ||||
46,900 | Brooks Automation, Inc. (a) | 366,289 | ||
31,900 | CMGI, Inc. (a) | 390,456 | ||
116,100 | Compuware Corp. (a) | 1,277,100 | ||
39,297 | CSG Systems International, Inc. (a) | 697,129 | ||
8,123 | Cubic Corp. | 217,047 | ||
15,000 | CyberSource Corp. (a) | 266,250 | ||
39,400 | EarthLink, Inc. (a) | 354,600 | ||
23,692 | EMS Technologies, Inc. (a) | 490,661 | ||
142,796 | Emulex Corp. (a) | 1,609,311 | ||
36,800 | Epicor Software Corp. (a) | 248,768 | ||
4,724 | FactSet Research Systems, Inc. | 272,433 | ||
41,600 | InfoSpace, Inc. | 392,704 | ||
23,300 | Ingram Micro, Inc. (a) | 429,419 | ||
72,900 | Insight Enterprises, Inc. (a) | 930,204 | ||
72,100 | Integrated Device Technology, Inc. (a) | 722,442 | ||
122,119 | Interwoven, Inc. (a) | 1,719,436 | ||
41,906 | Ixia (a) | 367,097 | ||
27,969 | J2 Global Communications, Inc. (a) | 670,417 | ||
12,703 | JDA Software Group, Inc. (a) | 216,840 | ||
25,500 | Kenexa Corp. (a) | 476,595 | ||
32,100 | Mantech International Corp. (a) | 1,792,464 | ||
18,400 | Measurement Specialties, Inc. (a) | 317,584 | ||
26,585 | Methode Electronics, Inc. | 297,486 | ||
30,564 | Micrel, Inc. | 290,969 | ||
8,200 | MicroStrategy, Inc., Class A (a) | 495,608 | ||
10,425 | MTS Systems Corp. | 436,703 | ||
17,900 | Multi-Fineline Electronix, Inc (a) | 477,572 | ||
25,569 | Net 1 UEPS Technologies, Inc. (a) | 602,917 | ||
21,600 | NETGEAR, Inc. (a) | 327,240 | ||
48,200 | OmniVision Technologies, Inc. (a) | 527,790 | ||
15,300 | OSI Systems, Inc. (a) | 322,371 | ||
47,800 | Parametric Technology Corp. (a) | 925,886 | ||
30,700 | Perficient, Inc. (a) | 309,149 | ||
20,351 | Perot Systems Corp., Class A (a) | 340,269 | ||
14,218 | Plexus Corp. (a) | 405,213 | ||
59,000 | Rackable Systems, Inc. (a) | 746,350 | ||
16,400 | Radiant Systems, Inc. (a) | 187,124 | ||
6,248 | Rofin-Sinar Technologies, Inc. (a) | 211,557 | ||
74,000 | Sapient Corp. (a) | 478,040 | ||
20,400 | Sigma Designs, Inc. (a) | 357,816 | ||
206,300 | Silicon Image, Inc. (a) | 1,446,163 | ||
147,943 | Skyworks Solutions, Inc. (a) | 1,399,541 | ||
37,176 | Sohu.com, Inc. (a) | 2,806,045 | ||
27,700 | Solera Holdings, Inc. (a) | 803,023 | ||
49,947 | Sonicwall, Inc. (a) | 291,691 | ||
16,721 | SPSS, Inc. (a) | 552,629 | ||
26,388 | Sybase, Inc. (a) | 886,901 | ||
23,700 | Sykes Enterprises, Inc. (a) | 418,542 | ||
16,800 | Take-Two Interactive Software, Inc. (a) | 383,040 | ||
203,967 | TIBCO Software, Inc. (a) | 1,674,569 | ||
60,000 | Trident Microsystems, Inc. (a) | 178,200 | ||
162,500 | Triquint Semiconductor, Inc. (a) | 914,875 | ||
33,300 | TTM Technologies, Inc. (a) | 374,625 | ||
24,100 | Ultratech, Inc. (a) | 355,234 | ||
97,797 | United Online, Inc. | 1,062,075 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Information Technology, continued | ||||
23,328 | Vignette Corp. (a) | 262,673 | ||
65,332 | Vishay Intertechnology, Inc. (a) | 586,028 | ||
64,900 | Volterra Semiconductor Corp. (a) | 1,064,360 | ||
20,900 | Zoran Corp. (a) | 172,843 | ||
49,725,084 | ||||
Materials (3.8%) | ||||
30,371 | A. Schulman, Inc. | 705,518 | ||
18,000 | Aventine Renewable Energy Holdings, Inc. (a) | 122,400 | ||
14,183 | Belden, Inc. | 523,636 | ||
9,682 | Carpenter Technology Corp. | 374,694 | ||
8,512 | Century Aluminum Co. (a) | 505,783 | ||
2,802 | Cleveland Cliffs, Inc. | 303,765 | ||
32,100 | Columbus McKinnon Corp. (a) | 825,291 | ||
5,600 | Compass Minerals International, Inc. | 423,360 | ||
61,200 | Entegris, Inc. (a) | 387,396 | ||
27,685 | Greif, Inc., Class A | 1,684,356 | ||
14,800 | L.B. Foster Co., Class A (a) | 569,356 | ||
8,400 | Massey Energy Co. | 623,700 | ||
28,100 | National Coal Corp. (a) | 196,700 | ||
5,700 | NewMarket Corp. | 352,032 | ||
14,300 | Olympic Steel, Inc. | 727,155 | ||
16,072 | OM Group, Inc. (a) | 540,019 | ||
17,000 | Park Electrochemical Corp. | 430,780 | ||
75,700 | PolyOne Corp. (a) | 567,750 | ||
27,700 | ShengdaTech, Inc. (a) | 269,798 | ||
15,900 | Stillwater Mining Co. (a) | 151,050 | ||
12,656 | Terra Industries, Inc. | 683,424 | ||
7,300 | Universal Stainless & Alloy Products, Inc. (a) | 278,568 | ||
6,500 | Walter Industries, Inc. | 681,655 | ||
11,928,186 | ||||
Oil & Gas (2.1%) | ||||
19,000 | ATP Oil & Gas Corp. (a) | 540,550 | ||
15,300 | Brigham Exploration Co. (a) | 214,200 | ||
60,100 | Concho Resources, Inc. (a) | 1,968,275 | ||
13,400 | GeoResources, Inc. (a) | 216,946 | ||
84,000 | Gran Tierra Energy, Inc. (a) | 425,880 | ||
87,100 | McMoRan Exploration Co. (a) | 2,336,893 | ||
10,500 | Rex Energy Corp. (a) | 208,950 | ||
79,800 | VAALCO Energy, Inc. (a) | 522,690 | ||
6,434,384 | ||||
Real Estate Investment Trusts (4.2%) | ||||
1,173 | Alexander’s, Inc. (a) | 416,110 | ||
176,500 | Anworth Mortgage Asset Corp. | 1,050,175 | ||
61,236 | Ashford Hospitality Trust | 243,107 | ||
25,731 | BioMed Realty Trust, Inc. | 663,860 | ||
35,300 | Brandywine Realty Trust | 566,565 | ||
41,913 | Cedar Shopping Centers, Inc. | 534,810 | ||
10,200 | Corporate Office Property Trust | 396,576 | ||
17,689 | Entertainment Properties Trust | 948,838 | ||
45,900 | Extra Space Storage, Inc. | 650,403 | ||
15,278 | First Industrial Realty Trust, Inc. | 378,742 | ||
53,400 | HRPT Properties Trust | 374,334 | ||
38,500 | Lexington Realty Trust | 554,400 |
See accompanying notes to financial statements.
55
PACIFIC CAPITAL FUNDS
Small Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Real Estate Investment Trusts, continued | ||||
44,320 | Medical Properties Trust, Inc. | 491,509 | ||
54,700 | MFA Mortgage Investments, Inc. | 352,815 | ||
4,700 | Mid-America Apartment Communities, Inc. | 270,109 | ||
29,836 | National Retail Properties, Inc. | 630,733 | ||
46,800 | NorthStar Realty Finance Corp. | 392,184 | ||
26,537 | Omega Healthcare Investors, Inc. | 458,294 | ||
21,791 | Pennsylvania Real Estate Investment Trust | 401,390 | ||
119,300 | RAIT Financial Trust | 793,345 | ||
19,317 | Realty Income Corp. | 486,595 | ||
29,900 | Senior Housing Properties Trust | 629,395 | ||
118,692 | Sunstone Hotel Investors, Inc. | 1,535,874 | ||
13,220,163 | ||||
Telecommunications (1.9%) | ||||
22,100 | ADC Telecommunications, Inc. (a) | 209,066 | ||
23,464 | Atlantic Tele-Network, Inc. | 717,764 | ||
47,300 | Centennial Communications Corp. (a) | 380,292 | ||
93,402 | Cincinnati Bell, Inc. (a) | 364,268 | ||
17,659 | NTELOS Holdings Corp. | 422,226 | ||
21,700 | Oplink Communications, Inc. (a) | 235,879 | ||
19,700 | Plantronics, Inc. | 479,695 | ||
128,400 | Premiere Global Services, Inc. (a) | 1,940,124 | ||
25,000 | RCN Corp. (a) | 304,250 | ||
23,700 | tw telecom, Inc. (a) | 378,726 | ||
44,100 | UTStarcom, Inc. (a) | 208,152 | ||
66,800 | Virgin Mobile USA, Inc., Class A (a) | 182,364 | ||
5,822,806 | ||||
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Transportation (1.4%) | |||||
14,500 | Arkansas Best Corp. | 538,530 | |||
13,400 | Genesee & Wyoming, Inc. (a) | 542,298 | |||
8,400 | GulfMark Offshore, Inc. (a) | 421,512 | |||
26,862 | Landstar System, Inc. | 1,358,680 | |||
3,500 | Overseas Shipholding Group, Inc. | 275,625 | |||
23,200 | Pacer International, Inc. | 550,768 | |||
34,629 | Werner Enterprises, Inc. | 824,516 | |||
4,511,929 | |||||
Utilities (1.8%) | |||||
15,300 | Avista Corp. | 346,086 | |||
14,529 | El Paso Electric Co. (a) | 300,169 | |||
10,800 | Laclede Group, Inc. (The) | 458,028 | |||
18,082 | New Jersey Resources Corp. | 616,415 | |||
19,800 | Nicor, Inc. | 788,436 | |||
28,183 | Northwest Natural Gas Co. | 1,275,281 | |||
26,700 | UniSource Energy Corp. | 815,685 | |||
27,158 | WGL Holdings, Inc. | 937,766 | |||
5,537,866 | |||||
Total Common Stocks (Cost $316,364,972) | 308,620,605 | ||||
Cash Equivalents (1.5%) | |||||
4,673,915 | Bank of New York Cash Reserve | 4,673,915 | |||
Total Cash Equivalents (Cost $4,673,915) | 4,673,915 | ||||
Total Investments (Cost $321,038,887) (c)—100.2% | 313,294,520 | ||||
Liabilities in excess of other assets—(0.2)% | (506,035 | ) | |||
Net Assets—100.0% | 312,788,485 | ||||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Cost for federal income tax purposes is $325,862,208. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 27,548,049 | ||
Unrealized depreciation | (40,115,737 | ) | ||
Net unrealized depreciation | $ | (12,567,688 | ) | |
See accompanying notes to financial statements.
56
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks (98.7%) | ||||
Consumer Discretionary (18.5%) | ||||
8,450 | Aeropostale, Inc. (a) | 272,512 | ||
13,000 | American Greetings Corp., Class A | 192,660 | ||
6,600 | Autoliv, Inc. | 257,664 | ||
19,300 | Barnes & Noble, Inc. | 456,638 | ||
9,500 | Big Lots, Inc. (a) | 289,370 | ||
19,100 | Blyth, Inc. | 277,905 | ||
17,500 | Bob Evans Farms, Inc. | 501,200 | ||
12,000 | DeVry, Inc. | 681,720 | ||
10,400 | Fresh Del Monte Produce, Inc. (a) | 219,232 | ||
28,000 | Furniture Brands International, Inc. | 332,360 | ||
3,000 | Hanesbrands, Inc. (a) | 64,320 | ||
11,000 | Hasbro, Inc. | 425,920 | ||
20,900 | Hewitt Associates, Inc., Class A (a) | 770,165 | ||
1,900 | ITT Educational Services, Inc. (a) | 168,302 | ||
12,400 | Lear Corp. (a) | 178,684 | ||
12,100 | Leggett & Platt, Inc. | 235,950 | ||
7,300 | Manpower, Inc. | 350,400 | ||
8,800 | Netflix, Inc. (a) | 271,832 | ||
650 | NVR, Inc. (a) | 359,008 | ||
2,200 | Owens-Illinois, Inc. (a) | 92,928 | ||
3,700 | Priceline.com, Inc. (a) | 425,315 | ||
6,100 | Rollins, Inc. | 104,188 | ||
23,200 | Ross Stores, Inc. | 880,672 | ||
12,100 | Scholastic Corp. | 312,059 | ||
4,100 | Strayer Education, Inc. | 913,070 | ||
27,600 | Tech Data Corp. (a) | 962,412 | ||
8,200 | Warnaco Group, Inc. (The) (a) | 343,990 | ||
10,340,476 | ||||
Consumer Staples (3.7%) | ||||
3,400 | AptarGroup, Inc. | 131,580 | ||
20,500 | BJ’s Wholesale Club, Inc. (a) | 769,365 | ||
20,600 | Crown Holdings, Inc. (a) | 577,418 | ||
5,400 | Tupperware Brands Corp. | 210,600 | ||
13,400 | Tyson Foods, Inc., Class A | 199,660 | ||
3,400 | Universal Corp. | 175,508 | ||
2,064,131 | ||||
Energy (6.2%) | ||||
20,100 | Cimarex Energy Co. | 1,047,411 | ||
3,300 | Encore Acquisition Co. (a) | 204,171 | ||
9,000 | Energy East Corp. | 224,910 | ||
6,800 | ENSCO International, Inc. | 470,152 | ||
10,600 | Noble Energy, Inc. | 783,022 | ||
12,900 | Reliant Energy, Inc. (a) | 233,619 | ||
10,500 | Southwestern Energy Co. (a) | 381,255 | ||
2,000 | Unit Corp. (a) | 135,100 | ||
3,479,640 | ||||
Financials (9.7%) | ||||
5,200 | Allied Capital Corp. | 71,500 | ||
4,300 | Allied World Assurance Co. Holdings Ltd. | 178,923 | ||
9,400 | Arch Capital Group Ltd. (a) | 655,462 | ||
14,800 | Associated Banc-Corp. | 247,012 | ||
16,900 | Axis Capital Holdings Ltd. | 535,392 | ||
9,800 | Broadridge Financial Solutions, Inc. | 202,860 | ||
3,500 | Capitol Federal Financial | 141,540 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
4,000 | ChoicePoint, Inc. (a) | 191,400 | ||
6,000 | First American Corp. | 151,200 | ||
25,400 | Hospitality Properties Trust | 541,020 | ||
12,300 | New York Community Bancorp, Inc. | 204,426 | ||
3,700 | PartnerRe Ltd. | 260,184 | ||
20,900 | Raymond James Financial, Inc. | 604,010 | ||
7,900 | StanCorp Financial Group, Inc. | 390,181 | ||
8,900 | Waddell & Reed Financial, Inc., Class A | 297,260 | ||
9,300 | Westamerica Bancorp | 483,600 | ||
11,600 | Wilmington Trust Corp. | 273,412 | ||
5,429,382 | ||||
Health Care (10.2%) | ||||
1,400 | Cephalon, Inc. (a) | 102,424 | ||
9,100 | Edwards Lifesciences Corp. (a) | 570,388 | ||
11,100 | Endo Pharmaceuticals Holdings, Inc. (a) | 256,965 | ||
12,700 | Health Net, Inc. (a) | 355,092 | ||
16,700 | Herbalife Ltd. | 721,273 | ||
11,300 | Invitrogen Corp. (a) | 501,155 | ||
24,400 | Kindred Healthcard, Inc. (a) | 658,068 | ||
10,400 | Kinetic Concepts, Inc. (a) | 363,480 | ||
12,700 | King Pharmaceuticals, Inc. (a) | 146,177 | ||
15,900 | LifePoint Hospitals, Inc. (a) | 455,217 | ||
4,900 | Lincare Holdings, Inc. (a) | 157,878 | ||
2,500 | OSI Pharmaceuticals, Inc. (a) | 131,575 | ||
16,600 | Par Pharmaceutical Cos., Inc. (a) | 287,180 | ||
9,000 | Patterson Cos., Inc. (a) | 281,070 | ||
17,400 | PDL BioPharma, Inc. | 194,358 | ||
5,000 | STERIS Corp. | 170,850 | ||
4,400 | Techne Corp. (a) | 349,888 | ||
5,703,038 | ||||
Industrials (14.6%) | ||||
20,700 | Agco Corp. (a) | 1,238,895 | ||
2,300 | Alliant Techsystems, Inc. (a) | 227,677 | ||
7,500 | Brink’s Co. (The) | 517,200 | ||
2,200 | Bucyrus International, Inc. | 154,022 | ||
6,000 | CF Industries Holdings, Inc. | 980,760 | ||
16,300 | Cummins, Inc. | 1,081,342 | ||
2,800 | Dresser-Rand Group, Inc. (a) | 106,680 | ||
10,800 | Flowserve Corp. | 1,440,072 | ||
2,200 | Gardner Denver, Inc. (a) | 100,320 | ||
4,600 | Jacobs Engineering Group, Inc. (a) | 355,764 | ||
4,400 | Joy Global, Inc. | 317,768 | ||
23,000 | KBR, Inc. | 655,500 | ||
7,100 | Lennox International, Inc. | 253,470 | ||
6,800 | Semtech Corp. (a) | 99,076 | ||
2,800 | Shaw Group, Inc. (The) (a) | 161,840 | ||
1,400 | SPX Corp. | 177,492 | ||
18,100 | Worthington Industries, Inc. | 321,094 | ||
8,188,972 | ||||
Information Technology (11.1%) | ||||
11,400 | Activision Blizzard, Inc. (a) | 410,172 | ||
2,300 | Affiliated Computer Services, Inc. (a) | 110,860 | ||
33,600 | Amkor Technology, Inc. (a) | 294,336 |
See accompanying notes to financial statements.
57
PACIFIC CAPITAL FUNDS
Mid-Cap Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Information Technology, continued | ||||
27,000 | Applied Biosystems, Inc. | 997,110 | ||
14,200 | Avnet, Inc. (a) | 387,092 | ||
11,000 | BMC Software, Inc. (a) | 361,790 | ||
9,700 | Compuware Corp. (a) | 106,700 | ||
2,700 | Dun & Bradstreet Corp. (The) | 260,928 | ||
26,400 | Ingram Micro, Inc. (a) | 486,552 | ||
26,100 | Integrated Device Technology, Inc. (a) | 261,522 | ||
10,400 | Intersil Corp., Class A | 250,952 | ||
7,200 | Lexmark International, Inc., Class A (a) | 252,576 | ||
4,500 | Metavante Technologies, Inc. (a) | 100,170 | ||
12,200 | National Semiconductor Corp. | 255,590 | ||
8,200 | Parametric Technology Corp. (a) | 158,834 | ||
7,100 | Silicon Laboratories, Inc. (a) | 232,241 | ||
10,500 | Sybase, Inc. (a) | 352,905 | ||
7,300 | Synopsys, Inc. (a) | 175,346 | ||
30,700 | Triquint Semiconductor, Inc. (a) | 172,841 | ||
19,200 | Western Digital Corp. (a) | 552,768 | ||
6,181,285 | ||||
Materials (5.3%) | ||||
10,900 | AK Steel Holding Corp. | 692,150 | ||
1,100 | Alpha Natural Resources, Inc. (a) | 108,845 | ||
9,400 | Celanese Corp., Series A | 362,182 | ||
2,000 | Cleveland Cliffs, Inc. | 216,820 | ||
1,700 | Compass Minerals International, Inc. | 128,520 | ||
4,100 | Eastman Chemical Co. | 245,836 | ||
2,200 | Massey Energy Co. | 163,350 | ||
2,900 | Minerals Technologies, Inc. | 187,079 | ||
14,000 | Terra Industries, Inc. | 756,000 | ||
1,100 | Walter Industries, Inc. | 115,357 | ||
2,976,139 | ||||
Oil & Gas Services (2.5%) | ||||
18,000 | FMC Technologies, Inc. (a) | 1,112,040 | ||
4,500 | Pride International, Inc. (a) | 174,420 | ||
1,400 | Whiting Petroleum Corp. (a) | 131,138 | ||
1,417,598 | ||||
Real Estate Investment Trusts (5.5%) | ||||
18,400 | AMB Property Corp. | 900,864 | ||
32,900 | Annaly Capital Management, Inc. | 495,803 | ||
16,100 | First Industrial Realty Trust, Inc. | 399,119 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Real Estate Investment Trusts, continued | ||||
50,900 | HRPT Properties Trust | 356,809 | ||
9,000 | Mack-Cali Realty Corp. | 345,420 | ||
12,700 | Potlatch Corp. | 591,439 | ||
3,089,454 | ||||
Telecommunications (2.7%) | ||||
17,500 | ADC Telecommunications, Inc. (a) | 165,550 | ||
5,700 | CenturyTel, Inc. | 211,983 | ||
1,600 | Harris Corp. | 77,040 | ||
26,900 | Plantronics, Inc. | 655,015 | ||
9,600 | Telephone & Data Systems, Inc. | 407,040 | ||
1,516,628 | ||||
Transportation (1.8%) | ||||
6,000 | ArvinMeritor, Inc. | 82,860 | ||
4,600 | Frontline Ltd. | 295,182 | ||
7,900 | Ryder System, Inc. | 521,084 | ||
4,100 | UTi Worldwide, Inc. | 74,579 | ||
973,705 | ||||
Utilities (6.9%) | ||||
16,300 | Alliant Energy Corp. | 525,349 | ||
14,500 | DPL, Inc. | 368,010 | ||
15,900 | Energen Corp. | 957,180 | ||
10,000 | Integrys Energy Group, Inc. | 510,600 | ||
8,350 | MDU Resources Group, Inc. | 266,449 | ||
3,400 | Nicor, Inc. | 135,388 | ||
10,900 | WGL Holdings, Inc. | 376,377 | ||
15,700 | Wisconsin Energy Corp. | 708,384 | ||
3,847,737 | ||||
Total Common Stocks (Cost $56,982,563) | 55,208,185 | |||
Investment Companies (1.3%) | ||||
749,716 | Victory Federal Money Market | 749,716 | ||
Total Investment Companies (Cost $749,716) | 749,716 | |||
Total Investments (Cost $57,732,279) (c)—100.0% | 55,957,901 | |||
Other assets in excess of liabilities—0.0% | 6,529 | |||
Net Assets—100.0% | 55,964,430 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Cost for federal income tax purposes is $57,910,797. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 4,212,203 | ||
Unrealized depreciation | (6,165,099 | ) | ||
Net unrealized depreciation | $ | (1,952,896 | ) | |
See accompanying notes to financial statements.
58
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks (98.7%) | ||||
Consumer Discretionary (10.6%) | ||||
8,100 | Avon Products, Inc. | 343,440 | ||
10,200 | Bunge Ltd. | 1,008,984 | ||
59,840 | CBS Corp., Class B | 978,982 | ||
31,840 | Colgate-Palmolive Co. | 2,364,757 | ||
20,365 | Expedia, Inc. (a) | 398,543 | ||
4,420 | Manpower, Inc. | 212,160 | ||
32,190 | McDonald’s Corp. | 1,924,640 | ||
13,970 | NIKE, Inc., Class B | 819,760 | ||
17,140 | Omnicom Group, Inc. | 731,707 | ||
11,800 | Owens-Illinois, Inc. (a) | 498,432 | ||
78,010 | TJX Cos., Inc. (The) | 2,629,717 | ||
16,100 | Wal-Mart Stores, Inc. | 943,782 | ||
20,000 | Yum! Brands, Inc. | 716,400 | ||
13,571,304 | ||||
Consumer Staples (9.4%) | ||||
9,200 | Altria Group, Inc. | 187,220 | ||
15,700 | Anheuser-Busch Cos., Inc | 1,063,832 | ||
18,800 | Best Buy Co., Inc. | 746,736 | ||
21,600 | Costco Wholesale Corp. | 1,353,888 | ||
65,770 | Kroger Co. (The) | 1,859,976 | ||
2,822 | Lorillard, Inc. (a) | 189,384 | ||
62,004 | PepsiCo, Inc. | 4,126,986 | ||
23,757 | Procter & Gamble Co. (The) | 1,555,608 | ||
37,100 | Sysco Corp. | 1,052,156 | ||
12,135,786 | ||||
Energy (17.0%) | ||||
8,200 | Apache Corp. | 919,794 | ||
47,360 | Chevron Corp. | 4,004,762 | ||
3,420 | Constellation Energy Group | 284,407 | ||
11,590 | Devon Energy Corp. | 1,099,775 | ||
132,040 | Exxon Mobil Corp. | 10,619,977 | ||
4,400 | Hess Corp. (a) | 446,160 | ||
35,500 | McDermott International, Inc. (a) | 1,692,285 | ||
6,400 | Murphy Oil Corp. | 510,272 | ||
18,400 | Noble Energy, Inc. | 1,359,208 | ||
9,600 | Sunoco, Inc. | 389,856 | ||
15,670 | Valero Energy Corp. | 523,535 | ||
21,850,031 | ||||
Financials (7.3%) | ||||
2,700 | Aflac, Inc. | 150,147 | ||
6,900 | Axis Capital Holdings Ltd. | 218,592 | ||
22,400 | Charles Schwab Corp. (The) | 512,736 | ||
16,350 | Chubb Corp. (The) | 785,454 | ||
10,860 | CIGNA Corp. | 402,037 | ||
9,745 | Discover Financial Services | 142,764 | ||
4,200 | Franklin Resources, Inc. | 422,562 | ||
6,400 | Freddie Mac | 52,288 | ||
12,500 | Goldman Sachs Group, Inc. (The) | 2,300,500 | ||
18 | Loews Corp. | 802 | ||
6,430 | MasterCard, Inc., Class A | 1,569,885 | ||
18,690 | Morgan Stanley | 737,881 | ||
29,700 | New York Community Bancorp, Inc. | 493,614 | ||
34,540 | Travelers Cos., Inc. (The) | 1,523,905 | ||
9,313,167 | ||||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Health Care (13.9%) | ||||
30,070 | AmerisourceBergen Corp. | 1,259,031 | ||
6,740 | Amgen, Inc. (a) | 422,126 | ||
45,060 | Baxter International, Inc. | 3,091,567 | ||
36,520 | Biogen Idec, Inc. (a) | 2,547,635 | ||
19,100 | Express Scripts, Inc. (a) | 1,347,314 | ||
5,800 | Genentech, Inc. (a) | 552,450 | ||
14,900 | Humana, Inc. (a) | 654,259 | ||
4,200 | Intuitive Surgical, Inc. (a) | 1,307,418 | ||
59,260 | Johnson & Johnson | 4,057,532 | ||
18,240 | Medco Health Solutions, Inc. (a) | 904,339 | ||
88,720 | Pfizer, Inc. | 1,656,403 | ||
17,800,074 | ||||
Industrials (9.2%) | ||||
4,900 | Agco Corp. (a) | 293,265 | ||
28,900 | Boeing Co. (The) | 1,766,079 | ||
34,660 | Cummins, Inc. | 2,299,344 | ||
16,000 | Emerson Electric Co. | 779,200 | ||
11,700 | Fluor Corp. | 951,795 | ||
24,890 | Honeywell International, Inc. | 1,265,408 | ||
14,850 | Lockheed Martin Corp. | 1,549,301 | ||
29,580 | National-Oilwell Varco, Inc. (a) | 2,325,875 | ||
2,500 | Parker Hannifin Corp. | 154,200 | ||
8,100 | Raytheon Co. | 461,133 | ||
11,845,600 | ||||
Information Technology (24.0%) | ||||
55,370 | Accenture Ltd., Class A | 2,312,251 | ||
12,600 | Activision Blizzard, Inc. (a) | 453,348 | ||
6,800 | Amazon.com, Inc. (a) | 519,112 | ||
9,100 | Analog Devices, Inc. | 277,641 | ||
25,160 | Apple Computer, Inc. (a) | 3,999,182 | ||
35,000 | Applied Biosystems, Inc. | 1,292,550 | ||
18,100 | Applied Materials, Inc. | 313,492 | ||
4,200 | Avnet, Inc. (a) | 114,492 | ||
27,890 | BMC Software, Inc. (a) | 917,302 | ||
31,300 | CA, Inc. | 746,818 | ||
58,490 | Cisco Systems, Inc. (a) | 1,286,195 | ||
32,800 | eBay, Inc. (a) | 825,576 | ||
64,050 | Hewlett-Packard Co. | 2,869,440 | ||
87,000 | Intel Corp. | 1,930,530 | ||
10,380 | International Business Machines Corp. | 1,328,432 | ||
62,300 | Juniper Networks, Inc. (a) | 1,621,669 | ||
12,100 | MEMC Electronic Materials, Inc. (a) | 559,141 | ||
185,130 | Microsoft Corp. | 4,761,544 | ||
34,200 | QUALCOMM, Inc. | 1,892,628 | ||
28,100 | Symantec Corp. (a) | 592,067 | ||
31,690 | Texas Instruments, Inc. | 772,602 | ||
28,600 | Western Digital Corp. (a) | 823,394 | ||
29,100 | Yahoo!, Inc. (a) | 578,799 | ||
30,788,205 | ||||
Materials (3.2%) | ||||
28,000 | AK Steel Holding Corp. | 1,778,000 | ||
8,400 | Celanese Corp., Series A | 323,652 | ||
5,520 | Eastman Chemical Co. | 330,979 |
See accompanying notes to financial statements.
59
PACIFIC CAPITAL FUNDS
Growth Stock Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Materials, continued | ||||
5,300 | Monsanto Co. | 631,283 | ||
6,600 | Mosaic Co. (The) (a) | 839,586 | ||
9,600 | Southern Copper Corp. | 266,688 | ||
4,170,188 | ||||
Oil & Gas Services (2.2%) | ||||
32,900 | FMC Technologies, Inc. (a) | 2,032,562 | ||
3,900 | Occidental Petroleum Corp. | 307,437 | ||
3,600 | Transocean, Inc. (a) | 489,708 | ||
2,829,707 | ||||
Real Estate Investment Trusts (0.1%) | ||||
9,500 | Annaly Capital Management, Inc. | 143,165 | ||
Telecommunications (0.4%) | ||||
9,600 | Ciena Corp. (a) | 198,432 | ||
8,300 | Verizon Communications, Inc. | 282,532 | ||
480,964 | ||||
Shares | Security | Value ($) | |||
Common Stocks, continued | |||||
Transportation (1.4%) | |||||
12,800 | Ryder System, Inc. | 844,288 | |||
14,300 | United Parcel Service, Inc., Class B | 902,044 | |||
1,746,332 | |||||
Total Common Stocks (Cost $131,098,334) | 126,674,523 | ||||
Investment Companies (1.3%) | |||||
1,677,955 | Victory Federal Money Market | 1,677,955 | |||
Total Investment Companies (Cost $1,677,955) | 1,677,955 | ||||
Total Investments (Cost $132,776,289) (c)—100.0% | 128,352,478 | ||||
Liabilities in excess of other assets—0.0% | (45,518 | ) | |||
Net Assets—100.0% | 128,306,960 | ||||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Cost for federal income tax purposes is $133,027,129. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 8,203,660 | ||
Unrealized depreciation | (12,878,311 | ) | ||
Net unrealized depreciation | $ | (4,674,651 | ) | |
See accompanying notes to financial statements.
60
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks (98.6%) | ||||
Consumer Discretionary (12.4%) | ||||
10,700 | Bunge Ltd. | 1,058,444 | ||
32,530 | CBS Corp., Class B | 532,191 | ||
32,760 | Colgate-Palmolive Co. | 2,433,085 | ||
8,010 | Manpower, Inc. | 384,480 | ||
37,585 | McDonald’s Corp. | 2,247,207 | ||
14,800 | NIKE, Inc., Class B | 868,464 | ||
25,360 | Omnicom Group, Inc. | 1,082,618 | ||
15,800 | Owens-Illinois, Inc. (a) | 667,392 | ||
22,420 | Philip Morris International, Inc. | 1,157,993 | ||
51,400 | TJX Cos., Inc. (The) | 1,732,694 | ||
20,500 | Wal-Mart Stores, Inc. | 1,201,710 | ||
35,730 | Walt Disney Co. (The) | 1,084,406 | ||
14,450,684 | ||||
Consumer Staples (7.2%) | ||||
21,820 | Altria Group, Inc. | 444,037 | ||
7,300 | Anheuser-Busch Cos., Inc | 494,648 | ||
27,000 | Costco Wholesale Corp. | 1,692,360 | ||
70,450 | Kroger Co. (The) | 1,992,326 | ||
3,412 | Lorillard, Inc. (a) | 228,980 | ||
35,995 | PepsiCo, Inc. | 2,395,827 | ||
7,200 | Procter & Gamble Co. (The) | 471,456 | ||
45,800 | Tyson Foods, Inc., Class A | 682,420 | ||
8,402,054 | ||||
Energy (15.2%) | ||||
42,020 | ConocoPhillips | 3,429,672 | ||
27,280 | Constellation Energy Group | 2,268,605 | ||
17,930 | Devon Energy Corp. | 1,701,378 | ||
10,280 | ENSCO International, Inc. | 710,759 | ||
60,740 | Exxon Mobil Corp. | 4,885,318 | ||
4,200 | Hess Corp. | 425,880 | ||
35,900 | McDermott International, Inc. (a) | 1,711,353 | ||
63,400 | Reliant Energy, Inc. (a) | 1,148,174 | ||
20,110 | Valero Energy Corp. | 671,875 | ||
24,400 | Williams Cos., Inc. (The) | 782,020 | ||
17,735,034 | ||||
Financials (15.6%) | ||||
16,300 | Aflac, Inc. | 906,443 | ||
20,010 | Allstate Corp. (The) | 924,862 | ||
34,320 | Bank of America Corp. | 1,129,128 | ||
14,050 | Citigroup, Inc. | 262,595 | ||
11,000 | Freddie Mac | 89,870 | ||
9,300 | Goldman Sachs Group, Inc. (The) | 1,711,572 | ||
28,900 | Hudson City Bancorp, Inc. | 527,714 | ||
37,500 | Invesco Ltd. | 873,375 | ||
40,200 | Janus Capital Group, Inc. | 1,219,668 | ||
84,675 | JP Morgan Chase & Co. | 3,440,345 | ||
46 | Loews Corp. | 2,050 | ||
5,550 | MasterCard, Inc., Class A | 1,355,033 | ||
6,100 | Morgan Stanley | 240,828 | ||
11,600 | Northern Trust Corp. | 906,772 | ||
15,500 | State Street Corp. | 1,110,420 | ||
56,260 | Travelers Cos., Inc. (The) | 2,482,191 | ||
31,100 | U.S. Bancorp | 951,971 | ||
18,134,837 | ||||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Health Care (12.3%) | ||||
14,630 | Aetna, Inc. | 599,976 | ||
14,600 | AmerisourceBergen Corp. | 611,302 | ||
13,810 | Baxter International, Inc. | 947,504 | ||
24,830 | Biogen Idec, Inc. (a) | 1,732,141 | ||
26,000 | Express Scripts, Inc. (a) | 1,834,040 | ||
65,126 | Johnson & Johnson | 4,459,177 | ||
27,510 | Merck & Co., Inc. | 905,079 | ||
174,438 | Pfizer, Inc. | 3,256,758 | ||
14,345,977 | ||||
Industrials (9.6%) | ||||
11,700 | Agco Corp. (a) | 700,245 | ||
19,940 | Cummins, Inc. | 1,322,820 | ||
46,150 | Emerson Electric Co. | 2,247,505 | ||
12,000 | Fluor Corp. | 976,200 | ||
35,730 | Honeywell International, Inc. | 1,816,513 | ||
19,560 | Lockheed Martin Corp. | 2,040,695 | ||
17,660 | Northrop Grumman Corp. | 1,190,107 | ||
9,190 | W.W. Grainger, Inc. | 822,597 | ||
11,116,682 | ||||
Information Technology (14.9%) | ||||
73,000 | Accenture Ltd., Class A | 3,048,480 | ||
15,400 | Activision Blizzard, Inc. (a) | 554,092 | ||
24,500 | Analog Devices, Inc. | 747,495 | ||
12,100 | Apple Computer, Inc. (a) | 1,923,295 | ||
16,950 | Avnet, Inc. (a) | 462,057 | ||
28,930 | BMC Software, Inc. (a) | 951,508 | ||
84,820 | Hewlett-Packard Co. | 3,799,936 | ||
53,600 | Juniper Networks, Inc. (a) | 1,395,208 | ||
7,500 | MEMC Electronic Materials, Inc. (a) | 346,575 | ||
97,790 | Microsoft Corp. | 2,515,159 | ||
53,270 | Texas Instruments, Inc. | 1,298,722 | ||
14,200 | Yahoo!, Inc. (a) | 282,438 | ||
17,324,965 | ||||
Materials (3.7%) | ||||
24,500 | AK Steel Holding Corp. | 1,555,750 | ||
7,400 | Eastman Chemical Co. | 443,704 | ||
17,900 | Mosaic Co. (The) (a) | 2,277,059 | ||
4,276,513 | ||||
Oil & Gas Services (1.0%) | ||||
18,500 | FMC Technologies, Inc. (a) | 1,142,930 | ||
Real Estate Investment Trusts (1.1%) | ||||
23,300 | Annaly Capital Management, Inc. | 351,131 | ||
18,800 | ProLogis | 918,944 | ||
1,270,075 | ||||
Telecommunications (3.9%) | ||||
97,846 | AT&T, Inc. | 3,014,635 | ||
12,700 | CenturyTel, Inc. | 472,313 | ||
93,800 | JDS Uniphase Corp. (a) | 1,025,234 | ||
4,512,182 | ||||
See accompanying notes to financial statements.
61
PACIFIC CAPITAL FUNDS
Growth and Income Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Transportation (1.7%) | ||||
15,900 | Ryder System, Inc. | 1,048,764 | ||
59,500 | Southwest Airlines Co. | 927,605 | ||
1,976,369 | ||||
Total Common Stocks (Cost $120,222,358) | 114,688,302 | |||
Investment Companies (1.4%) | ||||
1,601,125 | Victory Federal Money Market Fund, Investor Shares, 1.93% (b) | 1,601,125 | ||
3,819 | Victory Institutional Money Market Fund, Investor Shares, 2.19% (b) | 3,819 | ||
Total Investment Companies (Cost $1,604,944) | 1,604,944 | |||
Total Investments (Cost $121,827,302) (c)—100.0% | 116,293,246 | |||
Other assets in excess of liabilities—0.0% | 49,227 | |||
Net Assets—100.0% | 116,342,473 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Cost for federal income tax purposes is $122,007,381. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 7,187,553 | ||
Unrealized depreciation | (12,901,688 | ) | ||
Net unrealized depreciation | $ | (5,714,135 | ) | |
See accompanying notes to financial statements.
62
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks (99.1%) | ||||
Consumer Discretionary (10.3%) | ||||
4,700 | Autoliv, Inc. | 183,488 | ||
16,200 | Bunge Ltd. | 1,602,504 | ||
53,990 | CBS Corp., Class B | 883,276 | ||
9,050 | Goodyear Tire & Rubber Co. (The) (a) | 177,652 | ||
18,000 | Hewitt Associates, Inc., Class A (a) | 663,300 | ||
19,200 | McDonald’s Corp. | 1,147,968 | ||
8,400 | NIKE, Inc., Class B | 492,912 | ||
13,580 | Omnicom Group, Inc. | 579,730 | ||
21,900 | Owens-Illinois, Inc. (a) | 925,056 | ||
11,904 | Philip Morris International, Inc. | 614,842 | ||
21,100 | Tech Data Corp. (a) | 735,757 | ||
30,580 | TJX Cos., Inc. (The) | 1,030,852 | ||
8,400 | Wal-Mart Stores, Inc. | 492,408 | ||
53,940 | Walt Disney Co. (The) | 1,637,079 | ||
11,166,824 | ||||
Consumer Staples (5.4%) | ||||
4,900 | Anheuser-Busch Cos., Inc | 332,024 | ||
19,100 | Archer-Daniels-Midland Co. | 546,833 | ||
12,100 | BJ’s Wholesale Club, Inc. (a) | 454,113 | ||
11,000 | Coca-Cola Enterprises, Inc. | 186,230 | ||
12,000 | Costco Wholesale Corp. | 752,160 | ||
53,770 | Kroger Co. (The) | 1,520,616 | ||
76 | Lorillard, Inc. (a) | 5,100 | ||
10,910 | PepsiCo, Inc. | 726,170 | ||
12,600 | Procter & Gamble Co. (The) | 825,048 | ||
30,800 | Tyson Foods, Inc., Class A | 458,920 | ||
5,807,214 | ||||
Energy (17.8%) | ||||
13,100 | Apache Corp. | 1,469,427 | ||
6,890 | Atmos Energy Corp. | 182,378 | ||
58,690 | Chevron Corp. | 4,962,826 | ||
4,100 | Cimarex Energy Co. | 213,651 | ||
21,100 | ConocoPhillips | 1,722,182 | ||
8,210 | Devon Energy Corp. | 779,047 | ||
89,300 | Duke Energy Corp. | 1,569,894 | ||
3,900 | Encore Acquisition Co. (a) | 241,293 | ||
69,608 | Exxon Mobil Corp. | 5,598,572 | ||
13,500 | McDermott International, Inc. (a) | 643,545 | ||
9,200 | Noble Energy, Inc. | 679,604 | ||
55,620 | Reliant Energy, Inc. (a) | 1,007,278 | ||
7,060 | Valero Energy Corp. | 235,875 | ||
19,305,572 | ||||
Financials (24.4%) | ||||
15,590 | ACE Ltd. | 790,413 | ||
23,020 | Allstate Corp. (The) | 1,063,984 | ||
11,600 | Arch Capital Group Ltd. (a) | 808,868 | ||
20,800 | Axis Capital Holdings Ltd. | 658,944 | ||
65,440 | Bank of America Corp. | 2,152,976 | ||
19,100 | BB&T Corp. | 535,182 | ||
23,600 | Charles Schwab Corp. (The) | 540,204 | ||
19,170 | Chubb Corp. (The) | 920,927 | ||
83,160 | Citigroup, Inc. | 1,554,260 | ||
12,550 | Discover Financial Services | 183,858 |
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Financials, continued | ||||
14,600 | Endurance Specialty Holdings Ltd. | 446,760 | ||
7,700 | Fannie Mae | 88,550 | ||
1,700 | Franklin Resources, Inc. | 171,037 | ||
15,700 | Freddie Mac | 128,269 | ||
9,440 | Goldman Sachs Group, Inc. (The) | 1,737,338 | ||
25,100 | Hudson City Bancorp, Inc. | 458,326 | ||
96,799 | JP Morgan Chase & Co. | 3,932,943 | ||
50 | Loews Corp. | 2,228 | ||
3,200 | MasterCard, Inc., Class A | 781,280 | ||
23,800 | Morgan Stanley | 939,624 | ||
5,600 | Northern Trust Corp. | 437,752 | ||
10,700 | PartnerRe Ltd. | 752,424 | ||
12,400 | Raymond James Financial, Inc. | 358,360 | ||
8,300 | State Street Corp. | 594,612 | ||
15,870 | SunTrust Banks, Inc. | 651,622 | ||
6,300 | T. Rowe Price Group, Inc. | 377,055 | ||
47,600 | Travelers Cos., Inc. (The) | 2,100,112 | ||
49,100 | U.S. Bancorp | 1,502,951 | ||
60,700 | Wells Fargo & Co. | 1,837,389 | ||
26,508,248 | ||||
Health Care (12.9%) | ||||
24,430 | AmerisourceBergen Corp. | 1,022,884 | ||
9,300 | Express Scripts, Inc. (a) | 656,022 | ||
41,100 | Herbalife Ltd. | 1,775,109 | ||
10,500 | Humana, Inc. (a) | 461,055 | ||
15,900 | Invitrogen Corp. (a) | 705,165 | ||
55,000 | Johnson & Johnson | 3,765,850 | ||
47,900 | King Pharmaceuticals, Inc. (a) | 551,329 | ||
17,700 | LifePoint Hospitals, Inc. (a) | 506,751 | ||
220,300 | Pfizer, Inc. | 4,113,001 | ||
7,000 | WellPoint, Inc. (a) | 367,150 | ||
13,924,316 | ||||
Industrials (8.1%) | ||||
14,200 | Agco Corp. (a) | 849,870 | ||
18,800 | Boeing Co. (The) | 1,148,868 | ||
14,140 | Cummins, Inc. | 938,047 | ||
23,560 | Emerson Electric Co. | 1,147,372 | ||
11,120 | Fluor Corp. | 904,612 | ||
31,460 | General Electric Co. | 890,003 | ||
18,570 | Honeywell International, Inc. | 944,099 | ||
3,000 | Raytheon Co. | 170,790 | ||
4,270 | SPX Corp. | 541,351 | ||
8,600 | TRW Automotive Holdings Corp. (a) | 159,530 | ||
3,700 | Tyco International Ltd. | 164,872 | ||
10,700 | W.W. Grainger, Inc. | 957,757 | ||
8,817,171 | ||||
Information Technology (2.9%) | ||||
23,650 | Accenture Ltd., Class A | 987,624 | ||
2,300 | Adobe Systems, Inc. (a) | 95,105 | ||
8,600 | Hewlett-Packard Co. | 385,280 | ||
16,100 | Intel Corp. | 357,259 | ||
8,600 | Juniper Networks, Inc. (a) | 223,858 | ||
2,600 | Microsoft Corp. | 66,872 | ||
248,400 | Sanmina-SCI Corp. (a) | 439,668 |
See accompanying notes to financial statements.
63
PACIFIC CAPITAL FUNDS
Value Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Information Technology, continued | ||||
21,900 | Western Digital Corp. (a) | 630,501 | ||
3,186,167 | ||||
Materials (3.3%) | ||||
26,800 | AK Steel Holding Corp. | 1,701,800 | ||
13,810 | Celanese Corp., Series A | 532,099 | ||
10,700 | Mosaic Co. (The) (a) | 1,361,147 | ||
3,595,046 | ||||
Oil & Gas Services (0.1%) | ||||
2,200 | FMC Technologies, Inc. (a) | 135,916 | ||
Real Estate Investment Trusts (3.1%) | ||||
15,450 | AMB Property Corp. | 756,432 | ||
60,300 | Annaly Capital Management, Inc. | 908,721 | ||
3,200 | Boston Properties, Inc. | 307,808 | ||
4,800 | Equity Residential | 207,216 | ||
10,550 | Hospitality Properties Trust | 224,715 | ||
57,740 | HRPT Properties Trust | 404,757 | ||
5,800 | ProLogis | 283,504 | ||
7,900 | Weingarten Realty Investors | 240,871 | ||
3,334,024 | ||||
Telecommunications (6.6%) | ||||
58,411 | AT&T, Inc. | 1,799,643 | ||
19,360 | CenturyTel, Inc. | 719,998 | ||
12,900 | DIRECTV Group, Inc. (The) (a) | 348,558 | ||
14,400 | Telephone & Data Systems, Inc. | 610,560 | ||
95,620 | Verizon Communications, Inc. | 3,254,905 | ||
15,100 | Viacom, Inc., Class B (a) | 421,743 | ||
7,155,407 | ||||
Shares | Security | Value ($) | ||
Common Stocks, continued | ||||
Transportation (0.7%) | ||||
5,600 | Expeditors International of Washington, Inc. | 198,856 | ||
5,200 | Frontline Ltd. | 333,684 | ||
2,500 | Ryder System, Inc. | 164,900 | ||
697,440 | ||||
Utilities (3.5%) | ||||
32,400 | Dominion Resources, Inc. | 1,431,432 | ||
36,490 | Edison International | 1,763,927 | ||
10,300 | Energen Corp. | 620,060 | ||
3,815,419 | ||||
Total Common Stocks (Cost $119,599,240) | 107,448,764 | |||
Warrants (0.1%) | ||||
Industrials (0.1%) | ||||
5,180 | Raytheon Co. | 106,760 | ||
Total Warrants (Cost $—) | 106,760 | |||
Investment Companies (0.8%) | ||||
842,791 | Victory Federal Money Market Fund, Investor Shares, 1.93% (b) | 842,791 | ||
Total Investment Companies (Cost $842,791) | 842,791 | |||
Total Investments (Cost $120,442,031) (c)—100.0% | 108,398,315 | |||
Other assets in excess of liabilities—0.0% | 43,300 | |||
Net Assets—100.0% | 108,441,615 | |||
(a) | Non-income producing security. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Cost for federal income tax purposes is $121,301,175. Unrealized appreciation/depreciation on a tax basis is as follows: |
Unrealized appreciation | $ | 5,482,017 | ||
Unrealized depreciation | (18,384,877 | ) | ||
Net unrealized depreciation | $ | (12,902,860 | ) | |
See accompanying notes to financial statements.
64
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds (29.2%) | ||||
Consumer Discretionary (3.3%) | ||||
1,388,000 | Colgate-Palmolive Co., Series B, 7.60%, 5/19/25, MTN | 1,623,544 | ||
2,990,000 | Comcast Corp., 5.85%, 11/15/15 | 2,928,089 | ||
4,672,000 | Harvard President & Fellows of Harvard, 6.30%, 10/1/37, Callable 4/1/16 @ 100 | 4,724,691 | ||
9,276,324 | ||||
Consumer Staples (2.7%) | ||||
625,000 | Bestfoods, Series F, 6.63%, 4/15/28, MTN | 638,356 | ||
2,240,000 | Bottling Group LLC, 4.63%, 11/15/12 | 2,272,845 | ||
106,000 | General Mills, Inc., Series E, 2.58% (a), 11/4/78, Callable 11/4/28 @ 105, MTN | 104,910 | ||
1,660,000 | Starbucks Corp., 6.25%, 8/15/17 | 1,614,881 | ||
3,000,000 | Wal-Mart Stores, Inc., 6.50%, 8/15/37 | 3,025,401 | ||
7,656,393 | ||||
Energy (3.0%) | ||||
1,800,000 | Apache Finance Canada, 7.75%, 12/15/29 | 2,107,476 | ||
2,125,000 | Duke Capital LLC, 8.00%, 10/1/19 | 2,212,975 | ||
1,675,000 | Kinder Morgan Energy Partners LP, 5.85%, 9/15/12 | 1,695,276 | ||
2,625,000 | Smith International, Inc., 6.00%, 6/15/16 | 2,601,585 | ||
8,617,312 | ||||
Financials (9.0%) | ||||
Banking (1.4%) | ||||
552,258 | Fifth Third Bancorp, Series BKNT, 2.87%, 8/10/09 | 535,009 | ||
1,500,000 | US Bank NA, 6.30%, 2/4/14 | 1,585,363 | ||
1,980,000 | Wells Fargo & Co., 5.63%, 12/11/17 | 1,890,433 | ||
4,010,805 | ||||
Financial Services (7.6%) | ||||
2,390,000 | Bear Stearns Co., Inc., 5.50%, 8/15/11 | 2,368,060 | ||
930,000 | Bear Stearns Co., Inc., 7.25%, 2/1/18 | 968,430 | ||
1,225,000 | Charles Schwab Corp., Series A, 6.38%, 9/1/17, MTN | 1,218,667 | ||
1,000,000 | CIT Group Funding Co. Canada, 4.65%, 7/1/10 | 851,820 | ||
1,050,000 | General Electric Capital Corp., 5.72%, 8/22/11, Callable 1/22/09 @ 100 | 1,054,591 | ||
500,000 | Genworth Financial, Inc., 5.75%, 6/15/14 | 467,704 | ||
1,000,000 | International Lease Finance Corp., Series P, 3.19% (a), 1/15/10, MTN | 945,100 |
Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds, continued | ||||
Financial Services, continued | ||||
3,450,000 | International Lease Finance Corp., 3.14% (a), 7/13/12 | 3,076,223 | ||
1,200,000 | Merrill Lynch & Co., Series C, 4.50% (a), 5/20/09, MTN | 1,189,117 | ||
3,700,000 | Merrill Lynch & Co., Series C, 2.90% (a), 6/5/12, MTN | 3,195,801 | ||
1,100,000 | Merrill Lynch & Co., 5.70%, 5/2/17 | 942,592 | ||
3,025,000 | PartnerRe Finance A LLC, 6.88%, 6/1/18 | 2,709,656 | ||
825,000 | Textron Financial Corp., 5.13%, 11/1/10 | 838,075 | ||
1,713,233 | Toyota Motor Credit Corp., 2.75%, 8/6/09, MTN | 1,671,939 | ||
21,497,775 | ||||
25,508,580 | ||||
Industrials (1.8%) | ||||
2,950,000 | Dominion Resources, Inc., 5.25%, 8/1/33 | 2,848,638 | ||
2,300,000 | General Electric Co., 5.00%, 2/1/13 | 2,314,991 | ||
5,163,629 | ||||
Information Technology (0.2%) | ||||
625,000 | Pitney Bowes, Inc., 5.25%, 1/15/37, MTN | 609,886 | ||
Pharmaceuticals (0.7%) | ||||
950,000 | Abbott Laboratories, 5.60%, 5/15/11 | 993,311 | ||
872,000 | Pharmacia Corp., 6.75%, 12/15/27 | 934,251 | ||
1,927,562 | ||||
Supranational Agency (1.1%) | ||||
3,000,000 | Inter-American Development Bank, 4.75%, 10/19/12 | 3,099,939 | ||
Technology (0.9%) | ||||
1,340,000 | Science Applications International Corp., 7.13%, 7/1/32 | 1,344,721 | ||
1,385,000 | Science Applications International Corp., 5.50%, 7/1/33 | 1,102,861 | ||
2,447,582 | ||||
Telecommunications (4.4%) | ||||
4,325,000 | AT&T, Inc., 4.13%, 9/15/09 | 4,339,307 | ||
4,075,000 | GTE Southwest, Inc., First Mortgage Bond, 8.50%, 11/15/31 | 4,602,427 | ||
1,550,000 | Harris Corp., 5.00%, 10/1/15 | 1,491,503 | ||
2,000,000 | Harris Corp., 5.95%, 12/1/17 | 1,996,266 | ||
12,429,503 | ||||
Transportation (1.7%) | ||||
777,203 | Burlington Northern & Santa Fe Railway Co. (The), 5.14%, 1/15/21 | 738,778 |
See accompanying notes to financial statements.
65
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds, continued | ||||
Transportation, continued | ||||
3,985,232 | FedEx Corp., Pass Thru Certificates, 7.50%, 1/15/18 | 4,113,756 | ||
4,852,534 | ||||
Utilities (0.4%) | ||||
1,295,000 | Alabama Power Co., Series 1, 5.65%, 3/15/35, Callable 3/15/15 @ 100 | 1,165,298 | ||
Total Corporate Bonds (Cost $85,689,262) | 82,754,542 | |||
Municipal Bonds (2.5%) | ||||
California (0.3%) | ||||
750,000 | California Housing Finance Agency Revenue, Series K, 2.71% (a), 8/1/31, FSA | 750,000 | ||
Hawaii (1.2%) | ||||
2,000,000 | Hawaii State Airports System Revenue, 5.75%, 7/1/16, Callable 7/1/11 @ 100, FGIC, AMT | 2,022,220 | ||
1,410,000 | Hawaii State GO, Series DM, 3.68%, 5/1/10 | 1,403,838 | ||
3,426,058 | ||||
Michigan (1.0%) | ||||
3,000,000 | Michigan Municipal Bond Authority Revenue, Series A-3, | 3,000,000 | ||
Total Municipal Bonds (Cost $7,227,003) | 7,176,058 | |||
U.S. Government Agency Mortgage-Backed Obligations (32.7%) | ||||
Federal Home Loan Mortgage Corp. (10.3%) | ||||
2,339,993 | 5.50%, 4/1/21 | 2,353,475 | ||
2,089,909 | 4.50%, 8/1/33 | 1,929,639 | ||
2,433,930 | 5.00%, 5/1/34 | 2,323,288 | ||
4,451,395 | 5.50%, 3/1/35 | 4,367,189 | ||
1,585,477 | 6.00%, 4/1/36 | 1,596,576 | ||
5,685,217 | 5.83%, 12/1/36 | 5,749,684 | ||
5,612,871 | 6.00%, 12/1/36 | 5,652,161 | ||
2,988,585 | 5.50%, 1/1/37 | 2,898,915 | ||
2,426,940 | 6.50%, 5/1/37 | 2,495,830 | ||
29,366,757 | ||||
Federal National Mortgage Assoc. (21.7%) | ||||
1,702,698 | 4.50%, 6/1/14 | 1,697,671 | ||
2,811,096 | 4.50%, 3/1/19 | 2,728,849 | ||
759,699 | 4.50%, 10/1/33 | 701,202 | ||
2,493,629 | 5.00%, 1/1/34 | 2,384,948 | ||
705,223 | 5.00%, 3/1/34 | 674,487 | ||
3,392,463 | 5.08% (a), 9/1/34 | 3,388,324 | ||
3,273,428 | 5.09% (a), 10/1/34 | 3,293,475 | ||
2,644,999 | 5.50%, 2/1/35 | 2,600,337 | ||
6,201,171 | 5.50%, 2/1/35 | 6,096,461 | ||
2,399,779 | 5.00%, 4/1/35 | 2,289,189 | ||
2,294,676 | 6.00%, 4/1/35 | 2,314,324 | ||
8,188,000 | 5.50%, 7/25/35 | 8,076,370 |
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agency Mortgage-Backed Obligations, continued | ||||
Federal National Mortgage Assoc., continued | ||||
1,350,227 | 5.00%, 8/1/35 | 1,287,161 | ||
3,081,474 | 5.00%, 8/1/35 | 2,937,543 | ||
3,653,184 | 5.50%, 10/1/35 | 3,587,503 | ||
2,282,293 | 6.00%, 12/1/35 | 2,298,983 | ||
1,600,892 | 6.50%, 6/1/36 | 1,646,334 | ||
2,547,477 | 6.50%, 6/1/36 | 2,619,788 | ||
2,035,651 | 6.00%, 10/1/36 | 2,048,310 | ||
2,928,742 | 5.50%, 12/1/36 | 2,843,613 | ||
5,927,085 | 5.58% (a), 1/1/37 | 5,943,470 | ||
61,458,342 | ||||
Government National Mortgage Assoc. (0.7%) | ||||
2,105,630 | 5.50%, 11/15/35 | 2,093,895 | ||
Total U.S. Government Agency Mortgage- Backed Obligations (Cost $91,953,321) | 92,918,994 | |||
U.S. Government Agencies (14.1%) | ||||
Federal Farm Credit Bank (0.3%) | ||||
1,000,000 | 4.90%, 11/21/12, Callable 11/21/08 @ 100 | 1,005,670 | ||
Federal Home Loan Bank (3.1%) | ||||
3,000,000 | 7.63%, 5/14/10 | 3,233,490 | ||
400,000 | 5.00% (a), 5/26/10 | 413,252 | ||
1,610,000 | 5.25%, 10/6/11, Callable 10/6/08 @ 100 | 1,615,464 | ||
2,000,000 | 4.45%, 2/12/13, Callable 8/12/08 @ 100 | 2,001,220 | ||
795,000 | 4.88%, 11/27/13 | 824,638 | ||
1,000,000 | 4.60%, 1/14/15, Callable 1/14/10 @ 100 | 994,220 | ||
9,082,284 | ||||
Federal Home Loan Mortgage Corp. (2.4%) | ||||
3,025,000 | 5.40%, 6/15/10, Callable 6/15/09 @ 100 | 3,091,592 | ||
1,000,000 | 4.13%, 7/14/11, Callable 7/14/09 @ 100, MTN | 1,005,558 | ||
540,000 | 5.00%, 4/30/15, Callable 10/30/08 @ 100, MTN | 540,030 | ||
2,000,000 | 5.75%, 1/23/17, Callable 1/23/09 @ 100, MTN | 2,015,464 | ||
6,652,644 | ||||
Federal National Mortgage Assoc. (4.0%) | ||||
1,350,000 | 5.50%, 7/9/10, Callable 1/9/09 @ 100 | 1,366,565 | ||
1,000,000 | 4.38%, 6/30/11, Callable 12/30/08 @ 100 | 1,005,631 | ||
625,000 | 4.25%, 4/24/13, Callable 4/24/09 @ 100 | 626,205 | ||
2,900,000 | 5.55%, 3/29/19, Callable 9/8/08 @ 100 | 2,883,354 | ||
5,191,721 | 6.50%, 4/1/38 | 5,337,467 | ||
11,219,222 | ||||
See accompanying notes to financial statements.
66
PACIFIC CAPITAL FUNDS
High Grade Core Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agencies, continued | ||||
Overseas Private Investment Corp. (1.8%) | ||||
5,000,000 | 4.11%, 12/15/13, MTN (b) | 4,992,644 | ||
Small Business Administration Corp. (0.2%) | ||||
501,119 | 6.34%, 8/1/11 | 512,331 | ||
Tennessee Valley Authority (1.3%) | ||||
2,880,000 | 5.50%, 7/18/17 | 3,054,067 | ||
600,000 | 4.50%, 4/1/18 | 592,754 | ||
3,646,821 | ||||
U.S. Department of Housing & Urban Development (1.0%) | ||||
2,770,000 | 3.44%, 8/1/11 | 2,759,975 | ||
Total U.S. Government Agencies (Cost $39,698,749) | 39,871,591 | |||
U.S. Treasury Obligations (19.6%) | ||||
U.S. Treasury Bonds (1.6%) | ||||
2,850,000 | 7.88%, 2/15/21 | 3,793,840 | ||
700,000 | 5.50%, 8/15/28 | 775,467 | ||
4,569,307 | ||||
Shares or Principal Amount ($) | Security | Value ($) | ||
U.S. Treasury Obligations, continued | ||||
U.S. Treasury Notes (18.0%) | ||||
5,100,000 | 6.50%, 2/15/10 | 5,422,738 | ||
13,700,000 | 4.75%, 3/31/11 | 14,397,851 | ||
2,516,000 | 4.63%, 7/31/12 | 2,662,046 | ||
8,675,000 | 4.25%, 8/15/15 | 9,057,915 | ||
3,000,000 | 4.63%, 11/15/16 | 3,171,330 | ||
16,000,000 | 4.25%, 11/15/17 | 16,363,760 | ||
51,075,640 | ||||
Total U.S. Treasury Obligations (Cost $54,587,599) | 55,644,947 | |||
Investment Companies (1.0%) | ||||
2,862,508 | Victory Federal Money Market Fund, Investor Shares, 1.93% (c) | 2,862,508 | ||
Total Investment Companies (Cost $2,862,508) | 2,862,508 | |||
Total Investments (Cost $282,018,442) (d)—99.1% | 281,228,640 | |||
Other assets in excess of liabilities—0.9% | 2,585,772 | |||
Net Assets—100.0% | 283,814,412 | |||
(a) | Rate periodically changes. Rate disclosed is the rate in effect on July 31, 2008. |
(b) | Security valued at fair value using methods approved by the Board of Trustees and represents 1.8% of net assets as of July 31, 2008. |
(c) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(d) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 3,194,606 | ||
Unrealized depreciation | (3,984,408 | ) | ||
Net unrealized depreciation | $ | (789,802 | ) | |
AMT—Subject to alternative minimum tax
FGIC—Insured by Financial Guaranty Insurance Co.
FSA—Insured by Federal Security Assurance
GO—General Obligation
LLC—Limited Liability Co.
LP—Limited Partnership
MTN—Medium Term Note
PLC—Public Liability Co.
SPA—Standby Purchase Agreement
See accompanying notes to financial statements.
67
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds (99.2%) | ||||
Arizona (2.8%) | ||||
7,255,000 | Phoenix Civic Improvement Corp., Civic Plaza, Convertible CAB, 0.00% (a), 7/1/31, 5.50% effective 7/1/13, FGIC | 5,650,049 | ||
1,605,000 | Scottsdale GO, 5.38%, 7/1/16, Callable 7/1/11 @ 101 | 1,700,546 | ||
7,350,595 | ||||
Arkansas (0.6%) | ||||
1,785,000 | Arkansas State Development Finance Authority, AMT, 4.80%, 7/1/26, | 1,607,143 | ||
California (1.9%) | ||||
2,000,000 | California State Variable Purpose GO, 4.75%, 12/1/27, Callable 12/1/17 @ 100 | 1,933,560 | ||
1,275,000 | California State Variable Purpose GO, 5.00%, 8/1/33, Callable 8/1/15 @ 100 | 1,246,529 | ||
5,000,000 | Norwalk-La Mirada California Unified School District GO, CAB, Series B, 5.21% (b), 8/1/27, FSA-CR | 1,794,450 | ||
4,974,539 | ||||
Colorado (0.7%) | ||||
1,700,000 | Interlocken Metropolitan District GO, Series A, 5.75%, 12/15/19, Callable 12/15/09 @ 101, Insured by Radian | 1,743,639 | ||
Connecticut (0.8%) | ||||
2,000,000 | Connecticut State Health & Educational Facility Authority Revenue, University of Hartford, Series G, 5.25%, 7/1/26, Callable 7/1/16 @ 100 | 1,983,860 | ||
Florida (4.7%) | ||||
3,500,000 | Florida State Turnpike Authority Revenue, Department of Transportation, Series A, | 3,765,475 | ||
2,000,000 | Hillsborough County Aviation Authority Revenue, AMT, | 2,006,120 | ||
2,000,000 | Miami-Dade County Expressway Authority Toll System Revenue, 6.00%, 7/1/20, Prerefunded | 2,153,160 | ||
3,725,000 | Orlando Utilities Community Water & Electric Revenue, Series D, 6.75%, 10/1/17, ETM | 4,314,146 | ||
12,238,901 | ||||
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Georgia (4.0%) | ||||
2,330,000 | Metropolitan Atlanta Rapid Transportation Authority Sales Tax Revenue, Series P, | 2,512,905 | ||
390,000 | Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/1/18, ETM, MBIA | 475,320 | ||
6,415,000 | Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/1/18, Unrefunded Portion, MBIA | 7,435,370 | ||
10,423,595 | ||||
Hawaii (51.1%) | ||||
3,000,000 | Hawaii Airport System Revenue, AMT, 5.63%, 7/1/18, Callable 7/1/11 @ 100, FGIC | 3,003,390 | ||
12,640,000 | Hawaii Airport System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM, MBIA | 13,660,933 | ||
605,000 | Hawaii County GO, Series A, 5.60%, 5/1/13, FGIC | 666,105 | ||
2,000,000 | Hawaii County GO, Series A, 5.50%, 5/15/16, Prerefunded 5/15/09 @ 101, FSA | 2,081,020 | ||
3,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., | 3,039,810 | ||
3,000,000 | Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, AMT, 4.95%, 4/1/12, MBIA | 3,195,630 | ||
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 | 2,084,800 | ||
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 | 5,208,788 | ||
2,340,000 | Hawaii Housing Finance & Development Corp., University of Hawaii Faculty Housing Project Revenue, 5.70%, 10/1/25, Callable 10/1/08 @ 100, AMBAC | 2,343,884 | ||
2,000,000 | Hawaii State GO, Series BZ, 6.00%, 10/1/12, FGIC | 2,223,600 | ||
1,350,000 | Hawaii State GO, Series CH, 4.75%, 11/1/11, MBIA | 1,426,626 |
See accompanying notes to financial statements.
68
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
1,335,000 | Hawaii State GO, Series CH, 4.75%, 11/1/13, MBIA | 1,434,017 | ||
3,000,000 | Hawaii State GO, Series CM, 6.50%, 12/1/13, FGIC | 3,479,190 | ||
2,000,000 | Hawaii State GO, Series CT, 5.88%, 9/1/16, Prerefunded 9/1/09 @ 101, FSA | 2,111,940 | ||
2,000,000 | Hawaii State GO, Series CT, 5.88%, 9/1/17, Prerefunded 9/1/09 @ 101, FSA | 2,111,940 | ||
500,000 | Hawaii State GO, Series CY, 5.75%, 2/1/15, FSA | 566,970 | ||
1,000,000 | Hawaii State GO, Series DD, 5.00%, 5/1/17, Callable 5/1/14 @ 100, MBIA | 1,055,490 | ||
2,680,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Prerefunded 5/1/14 @ 100, MBIA | 2,923,612 | ||
1,560,000 | Hawaii State GO, Series DD, 5.00%, 5/1/18, Callable 5/1/14 @ 100, MBIA | 1,649,029 | ||
4,000,000 | Hawaii State GO, Series DK, 5.00%, 5/1/17 | 4,356,960 | ||
1,105,000 | Hawaii State Harbor System Revenue, Series A, AMT, 5.25%, 7/1/16, FSA | 1,158,825 | ||
1,500,000 | Hawaii State Harbor System Revenue, Series B, AMT, 5.50%, 7/1/19, Callable 7/1/12 @ 100, AMBAC | 1,568,400 | ||
1,350,000 | Hawaii State Highway Revenue, 5.38%, 7/1/17, Prerefunded 7/1/10 @ 100, FSA | 1,430,055 | ||
2,530,000 | Hawaii State Highway Revenue, 5.38%, 7/1/18, Prerefunded 7/1/10 @ 100, FSA | 2,680,029 | ||
2,000,000 | Hawaii State Housing Finance & Development Corp., Single Family Mortgage Purchase Revenue, Series A, AMT, 5.40%, 7/1/29, Callable 7/1/09 @ 101.75, FNMA | 1,939,000 | ||
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 | 3,026,519 | ||
5,865,000 | Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/31, Callable 7/1/16 @ 100, MBIA | 5,760,310 | ||
2,320,000 | Honolulu City & County GO, 6.00%, 12/1/11, ETM, FGIC | 2,560,839 | ||
3,500,000 | Honolulu City & County GO, Series A, 5.38%, 9/1/18, Prerefunded 9/1/11 @ 100, FSA | 3,757,040 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
2,125,000 | Honolulu City & County GO, Series A, 6.00%, 1/1/11, ETM, FGIC | 2,291,324 | ||
875,000 | Honolulu City & County GO, Series A, 6.00%, 1/1/11, FGIC | 940,730 | ||
4,820,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/11, ETM, FGIC | 5,204,395 | ||
1,865,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/12, FGIC | 2,037,848 | ||
850,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, ETM, FGIC | 948,082 | ||
3,345,000 | Honolulu City & County GO, Series A, 5.75%, 4/1/13, FGIC | 3,695,824 | ||
6,250,000 | Honolulu City & County GO, Series A, 5.00%, 7/1/19, Callable 7/1/15 @ 100, MBIA | 6,577,375 | ||
640,000 | Honolulu City & County GO, Series B, 5.25%, 10/1/12, FGIC | 692,979 | ||
2,500,000 | Honolulu City & County GO, Series C, 5.13%, 7/1/16, Callable 7/1/09 @ 101, FGIC | 2,567,525 | ||
5,000,000 | Honolulu City & County GO, Series D, 5.00%, 7/1/20, Callable 7/1/15 @ 100, MBIA | 5,222,200 | ||
2,000,000 | Honolulu City & County Waste Water System Revenue, Junior Series, 5.00%, 7/1/23, Callable 7/1/09 @ 101, FGIC | 2,019,800 | ||
2,680,000 | Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/21, Callable 7/1/17 @100, FSA | 2,827,641 | ||
5,000,000 | Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/26, Callable 7/1/15 @ 100, MBIA | 5,102,150 | ||
2,315,000 | Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/29, Callable 7/1/17 @ 100, FSA | 2,356,531 | ||
2,155,000 | Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable 5/20/10 @ 102, FHA | 2,231,373 | ||
1,340,000 | Kauai County GO, Series C, 5.90%, 8/1/09, AMBAC | 1,391,858 | ||
1,000,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC | 1,095,060 | ||
1,205,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/22, Prerefunded 7/15/12 @ 100, FGIC | 1,319,547 | ||
1,000,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/29, Prerefunded 7/15/12 @ 100, FGIC | 1,095,060 |
See accompanying notes to financial statements.
69
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
750,000 | University of Hawaii System Revenue, Series A, 5.13%, 7/15/32, Prerefunded | 810,893 | ||
132,932,946 | ||||
Illinois (4.5%) | ||||
2,000,000 | Chicago Midway Airport Revenue, Series C, 5.50%, 1/1/15, MBIA | 2,164,440 | ||
4,665,000 | Illinois Municipal Electric Agency Power Supply Revenue, Series C, 5.25%, 2/1/21, FGIC | 4,914,297 | ||
5,505,000 | Kane & De Kalb Counties Illinois Community Unit School District GO, CAB, 4.89% (b), 2/1/23, FGIC | 2,533,016 | ||
5,000,000 | Kendall, Kane & Will Counties Illinois Community Unit School District No. 308 GO, CAB, | 2,113,850 | ||
11,725,603 | ||||
Indiana (0.4%) | ||||
1,000,000 | Tri-Creek High School Building Corp. Revenue, 5.00%, 7/15/15, Prerefunded 7/15/13 @ 100, FSA | 1,087,900 | ||
Kentucky (0.5%) | ||||
1,250,000 | Kentucky State Property & Buildings Commission Revenue, Second Series, AMT, 5.50%, 11/1/16, Callable 11/1/12 @ 100, FSA | 1,359,950 | ||
Massachusetts (0.4%) | ||||
1,000,000 | Massachusetts State GO, Series C, 5.75%, 10/1/20, Prerefunded 10/1/10 @ 100 | 1,066,010 | ||
Michigan (2.2%) | ||||
3,000,000 | Michigan Municipal Building Authority Revenue, Clean Water Revolving Fund, 5.50%, 10/1/21, Prerefunded 10/1/10 @ 101 | 3,233,850 | ||
2,245,000 | Michigan State Strategic Fund Ltd. Obligation Revenue, 6.95%, 5/1/11, FGIC | 2,427,743 | ||
5,661,593 | ||||
Missouri (0.8%) | ||||
2,000,000 | University of Missouri Revenue, Series B, 5.38%, 11/1/16, Callable 11/1/11 @ 100 | 2,110,000 | ||
New York (4.8%) | ||||
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 | 2,142,440 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
New York, continued | ||||
5,165,000 | New York, New York GO, Series J, 5.00%, 6/1/21, Callable 6/1/16 @ 100 | 5,336,840 | ||
5,000,000 | New York, New York GO, Series J, 5.00%, 6/1/24, Callable 6/1/16 @ 100 | 5,106,750 | ||
12,586,030 | ||||
Ohio (0.8%) | ||||
795,000 | Hamilton County Sales Tax Revenue, Series B, 5.25%, 12/1/18, Prerefunded | 847,708 | ||
205,000 | Hamilton County Sales Tax Revenue, Series B, 5.25%, 12/1/18, Callable | 212,091 | ||
1,000,000 | Ohio State Building Authority, Adult Correction Facility Revenue, Series A, 5.50%, 10/1/14, Callable 10/1/11 @ 100, FSA | 1,074,380 | ||
2,134,179 | ||||
Oregon (2.1%) | ||||
5,000,000 | Portland Sewer System Revenue, Series A, 5.75%, 8/1/18, Prerefunded 8/1/10 @ 100, FGIC | 5,340,500 | ||
Pennsylvania (2.8%) | ||||
6,000,000 | East Stroudsburg Area School District GO, Series A, 7.75%, 9/1/27, Callable | 7,348,680 | ||
Puerto Rico (1.4%) | ||||
2,010,000 | Puerto Rico Commonwealth Infrastructure Financing Authority, CAB, Series A, 4.66% (b), 7/1/30, FGIC | 542,097 | ||
3,000,000 | Puerto Rico Electric Power Authority Power Revenue, Series TT, 5.00%, 7/1/26, Callable 7/1/17 @ 100 | 2,957,970 | ||
3,500,067 | ||||
Texas (4.3%) | ||||
2,395,000 | Barbers Hill Independent School District GO, 5.00%, 2/15/24, Callable 2/15/15 @ 100, PSF-GTD | 2,455,234 | ||
2,345,000 | Grapevine GO, Series A, 5.00%, 8/15/24, Callable 2/15/15 @ 100, MBIA | 2,403,977 | ||
2,000,000 | Houston Independent School District GO, Series A, 5.00%, 2/15/24, Callable 2/15/15 @ 100 | 2,050,300 |
See accompanying notes to financial statements.
70
PACIFIC CAPITAL FUNDS
Tax-Free Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Texas, continued | ||||
1,365,000 | New Braunfels GO, 5.00%, 10/1/16, Callable 10/1/14 @ 100, AMBAC | 1,457,943 | ||
10,000,000 | North Texas Tollway Authority Revenue, CAB, Series D, 5.40% (b), 1/1/30, Insured by Assured Guaranty Ltd. | 2,838,800 | ||
11,206,254 | ||||
Washington (7.6%) | ||||
3,475,000 | Douglas County School District No. 206 Eastmont GO, 5.00%, 12/1/17, Callable 6/1/11 @ 100, FGIC | 3,694,550 | ||
2,000,000 | Port Seattle Washington Revenue, 5.00%, 2/1/25, Callable 2/1/16 @ 100, XLCA | 2,027,420 | ||
1,125,000 | Skagit County Public Hospital District GO, Series A, 5.38%, 12/1/17, Callable 12/1/14 @ 100, MBIA | 1,194,458 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Washington, continued | ||||
1,000,000 | Snohomish County GO, 5.70%, 12/1/14, Prerefunded 12/1/09 @ 100, MBIA | 1,050,840 | ||
2,880,000 | Snohomish County Limited Tax GO, 5.25%, 12/1/12, Callable 12/1/11 @ 100, MBIA | 3,062,678 | ||
4,000,000 | Washington State GO, Series A, 5.63%, 7/1/19, Prerefunded 7/1/10 @ 100 | 4,251,880 | ||
5,000,000 | Washington State GO, CAB, Series 03-C, 4.81% (b), 6/1/20, MBIA | 2,837,450 | ||
5,000,000 | Washington State GO, CAB, Series C, 5.32% (b), 6/1/30, FGIC | 1,543,300 | ||
19,662,576 | ||||
Total Investments (Cost $250,646,792) (c)—99.2% | 258,044,560 | |||
Other assets in excess of liabilities—0.8% | 2,014,559 | |||
Net Assets—100.0% | 260,059,119 | |||
(a) | Rate periodically changes. Rate disclosed is rate effective 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 | $ | 10,290,953 | ||
Unrealized depreciation | (2,893,185 | ) | ||
Net unrealized appreciation | $ | 7,397,768 | ||
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
FNMA—Insured by Federal National Mortgage Association
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 accompanying notes to financial statements.
71
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds (20.1%) | ||||
Consumer Discretionary (5.8%) | ||||
1,250,000 | Comcast Corp., 5.45%, 11/15/10 | 1,270,606 | ||
1,000,000 | Daimler Chrysler NA Holding Corp., 5.88%, 3/15/11 | 1,005,537 | ||
1,250,000 | Newell Rubbermaid, Inc., 4.00%, 5/1/10 | 1,228,744 | ||
175,000 | Whirlpool Corp., 5.50%, 3/1/13, MTN | 169,874 | ||
3,674,761 | ||||
Consumer Staples (2.6%) | ||||
45,000 | Diageo Capital PLC, 5.20%, 1/30/13 | 45,107 | ||
150,000 | General Mills, Inc., 5.25%, 8/15/13 | 149,676 | ||
175,000 | Kellogg Co., 4.25%, 3/6/13 | 170,757 | ||
225,000 | Kroger Co., 5.50%, 2/1/13 | 225,485 | ||
165,000 | Kroger Co., 5.00%, 4/15/13 | 162,311 | ||
250,000 | PepsiCo, Inc., 5.15%, 5/15/12 | 260,245 | ||
160,000 | Sysco Corp., 4.20%, 2/12/13 | 157,062 | ||
150,000 | Wal-Mart Stores, Inc., 4.25%, 4/15/13 | 149,356 | ||
300,000 | Walgreen Co., 4.88%, 8/1/13 | 299,721 | ||
1,619,720 | ||||
Electrical Utility (0.8%) | ||||
500,000 | Exelon Generation Co., LLC, 6.95%, 6/15/11 | 517,463 | ||
Financials (7.2%) | ||||
325,000 | American General Finance, Series J, 5.63%, 8/17/11, MTN | 302,116 | ||
300,000 | Caterpillar Financial Services Corp., 4.25%, 2/8/13, MTN | 294,687 | ||
500,000 | Citigroup, Inc., 5.50%, 4/11/13 | 488,904 | ||
1,000,000 | Countrywide Financial Corp., 4.50%, 6/15/10 | 940,763 | ||
525,000 | General Electric Capital Corp., 5.72%, 8/22/11, Callable 1/22/09 @ 100 | 527,295 | ||
90,000 | General Electric Capital Corp., Series A, 5.25%, 10/19/12, MTN | 90,540 | ||
255,000 | Genworth Financial, Inc., 5.23%, 5/16/09 | 255,786 | ||
45,000 | Goldman Sachs Group, Inc., 5.45%, 11/1/12 | 44,907 | ||
175,000 | Merrill Lynch & Co., Series C, 4.50% (a), 5/20/09, MTN | 173,413 | ||
500,000 | Morgan Stanley, 5.63%, 1/9/12 | 489,917 | ||
1,000,000 | Toyota Motor Credit Corp., 5.50%, 9/22/11, Callable 9/22/08 @ 100 | 1,001,668 | ||
4,609,996 | ||||
Health Care (0.3%) | ||||
200,000 | Johnson & Johnson, 5.15%, 8/15/12 | 209,271 | ||
Industrials (0.5%) | ||||
125,000 | ConocoPhillips Canada, 5.30%, 4/15/12 | 128,973 |
Principal Amount ($) | Security | Value ($) | ||
Corporate Bonds, continued | ||||
Industrials continued | ||||
160,000 | Dominion Resource, Inc., 4.75%, 12/15/10 | 159,938 | ||
288,911 | ||||
Information Technology (0.5%) | ||||
325,000 | Hewlett-Packard Co., 4.50%, 3/1/13 | 322,409 | ||
Real Estate Investment Trust (1.6%) | ||||
1,000,000 | Simon Property Group LP, 4.88%, 3/18/10 | 993,899 | ||
Telecommunications (0.3%) | ||||
215,000 | Verizon Communications, Inc., 4.35%, 2/15/13 | 207,725 | ||
Transportation (0.5%) | ||||
325,000 | United Parcel Service, Inc., 4.50%, 1/15/13 | 326,878 | ||
Total Corporate Bonds (Cost $12,813,875) | 12,771,033 | |||
U.S. Government Agency Mortgage-Backed Obligations (25.9%) | ||||
Federal Home Loan Mortgage Corp. (13.2%) | ||||
2,500,000 | 3.25%, 2/25/11 | 2,491,725 | ||
525,397 | 5.00%, 1/1/19 | 521,036 | ||
1,043,418 | 4.50%, 4/1/19 | 1,016,154 | ||
905,744 | 4.50%, 12/1/19 | 879,242 | ||
791,846 | 6.00%, 6/1/21 | 808,665 | ||
1,355,808 | 5.15% (a), 11/1/35 | 1,360,188 | ||
1,321,232 | 6.50%, 9/1/36 | 1,359,151 | ||
8,436,161 | ||||
Federal National Mortgage Assoc. (12.7%) | ||||
502,143 | 5.00%, 5/1/19 | 497,820 | ||
1,350,613 | 6.50%, 6/1/36 | 1,388,957 | ||
3,698,305 | 5.47% (a), 4/1/37 | 3,723,379 | ||
2,447,595 | 6.00%, 10/1/37 | 2,461,913 | ||
8,072,069 | ||||
Total U.S. Government Agency Mortgage-Backed Obligations (Cost $16,408,469) | 16,508,230 | |||
U.S. Government Agencies (27.1%) | ||||
Federal Home Loan Bank (27.1%) | ||||
1,500,000 | 3.75%, 8/18/09 | 1,515,461 | ||
1,000,000 | 5.00%, 11/3/09 | 1,024,895 | ||
875,000 | 5.00%, 3/12/10 | 901,706 | ||
1,000,000 | 4.88%, 5/14/10 | 1,030,431 | ||
750,000 | 4.13%, 8/13/10 | 763,574 | ||
4,200,000 | 5.25%, 6/10/11 | 4,396,783 | ||
5,000,000 | 3.38%, 6/24/11 | 4,979,295 | ||
1,000,000 | 4.88%, 11/18/11 | 1,035,459 | ||
550,000 | 4.75%, 3/5/12 | 567,823 | ||
1,000,000 | 5.13%, 8/14/13 | 1,048,520 | ||
17,263,947 | ||||
Total U.S. Government Agencies (Cost $17,075,102) | 17,263,947 | |||
See accompanying notes to financial statements.
72
PACIFIC CAPITAL FUNDS
High Grade Short Intermediate Fixed Income Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
U.S. Treasury Obligations (25.6%) | ||||
U.S. Treasury Notes (25.6%) | ||||
5,000 | 3.25%, 8/15/08 | 5,003 | ||
37,000 | 3.13%, 10/15/08 | 37,116 | ||
20,000 | 3.00%, 2/15/09 | 20,116 | ||
1,225,000 | 3.13%, 4/15/09 | 1,233,519 | ||
980,000 | 3.88%, 5/15/09 | 993,398 | ||
875,000 | 4.88%, 5/15/09 | 893,525 | ||
500,000 | 4.88%, 6/30/09 | 511,836 | ||
1,500,000 | 3.63%, 7/15/09 | 1,519,336 | ||
500,000 | 2.13%, 1/31/10 | 498,789 | ||
2,000,000 | 2.13%, 4/30/10 | 1,992,188 | ||
3,800,000 | 3.88%, 5/15/10 | 3,901,236 | ||
158,000 | 3.63%, 6/15/10 | 161,469 | ||
4,000,000 | 3.38%, 6/30/13 | 4,020,628 | ||
465,000 | 4.13%, 5/15/15 | 482,801 | ||
16,270,960 | ||||
Total U.S. Treasury Obligations (Cost $16,242,952) | 16,270,960 | |||
Shares | Security | Value ($) | ||
Investment Companies (0.8%) | ||||
156,533 | Dreyfus Cash Management, Institutional Shares, 2.52% (b) | 156,533 | ||
380,303 | Victory Federal Money Market Fund, Investor Shares, 1.93% (b) | 380,303 | ||
Total Investment Companies (Cost $536,836) | 536,836 | |||
Total Investments (Cost $63,077,234) (c)—99.5% | 63,351,006 | |||
Other assets in excess of liabilities—0.5% | 344,032 | |||
Net Assets—100.0% | 63,695,038 | |||
(a) | Rate periodically changes. Rate disclosed is the rate in effect on July 31, 2008. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 531,850 | ||
Unrealized depreciation | (258,078 | ) | ||
Net unrealized appreciation | $ | 273,772 | ||
LLC—Limited Liability Co.
LP—Limited Partnership
MTN—Medium Term Note
PLC—Public Liability Co.
See accompanying notes to financial statements.
73
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds (98.5%) | ||||
Arizona (1.0%) | ||||
500,000 | Vistancia Community Facilities District GO, 4.00%, 7/15/13 | 483,205 | ||
California (4.0%) | ||||
2,000,000 | Bay Area Toll Authority California, Toll Bridge Revenue, Series D-2, 7.60% (a), 4/1/47, Callable 8/28/08 @ 100, AMBAC | 2,000,000 | ||
Florida (1.6%) | ||||
780,000 | Highlands County Florida Health Facilities, 5.00%, 11/15/11 | 811,723 | ||
Guam (4.8%) | ||||
860,000 | Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series A, 5.00%, 5/15/09 | 882,016 | ||
1,350,000 | Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series B, 5.40%, 5/15/15 | 1,499,202 | ||
2,381,218 | ||||
Hawaii (49.8%) | ||||
2,000,000 | City & County of Honolulu, Hawaii Waste Water, 5.25%, 7/1/18, Callable 7/1/09 @ 101, FGIC | 2,050,240 | ||
520,000 | Hawaii Airport System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM, MBIA | 562,000 | ||
1,000,000 | Hawaii County GO, Series A, 5.38%, 5/15/13, Prerefunded 5/15/09 @ 101, FSA | 1,039,550 | ||
705,000 | Hawaii County GO, Series B, 5.00%, 7/15/09 | 725,015 | ||
805,000 | Hawaii State Airports System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM | 870,020 | ||
1,000,000 | Hawaii State GO, Series BW, 6.40%, 3/1/09, ETM, FSA-CR | 1,027,680 | ||
1,000,000 | Hawaii State GO, Series CU, 5.75%, 10/1/10, MBIA | 1,070,800 | ||
1,550,000 | Hawaii State GO, Series CV, 5.50%, 8/1/10, FGIC | 1,646,813 | ||
1,000,000 | Hawaii State GO, Series CZ, 5.25%, 7/1/12, FSA | 1,085,000 | ||
3,700,000 | Hawaii State GO, Series DG, 5.00%, 7/1/09, AMBAC | 3,804,784 | ||
750,000 | Hawaii State Highway Revenue, 4.85%, 7/1/09, FSA | 770,100 | ||
500,000 | Hawaii State Highway Revenue, 6.00%, 7/1/09 | 518,310 | ||
1,055,000 | Hawaii State Housing & Community Development Revenue, Series A, 3.70%, 7/1/13, FSA | 1,034,691 | ||
800,000 | Honolulu City & County GO, Series B, 5.25%, 10/1/12, ETM | 872,088 |
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Hawaii, continued | ||||
1,150,000 | Honolulu City & County Waste Water System Revenue, 5.00%, 7/1/09, FGIC | 1,181,315 | ||
1,000,000 | Honolulu City & County Waste Water System Revenue, 5.25%, 7/1/15, Callable 7/1/09 @ 101, FGIC | 1,027,570 | ||
2,000,000 | Honolulu Hawaii City & County GO, Series C, 5.13%, 7/1/11, Callable 7/1/09 @ 101, FGIC | 2,061,480 | ||
1,000,000 | Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable 5/20/10 @ 102, FHA | 1,035,440 | ||
1,000,000 | State of Hawaii GO, Series DG, 5.00%, 7/1/12, AMBAC | 1,073,930 | ||
1,090,000 | University of Hawaii System Revenue, Series A, 5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC | 1,193,615 | ||
24,650,441 | ||||
Illinois (3.2%) | ||||
500,000 | Chicago Illinois Midway Airport Revenue, Series B, 5.00%, 1/1/12, AMBAC | 526,000 | ||
1,000,000 | Illinois State GO, 5.25%, 8/1/10, MBIA | 1,055,830 | ||
1,581,830 | ||||
Indiana (3.0%) | ||||
1,500,000 | Indianapolis Local Public Improvement Bond Bank Revenue, Series F-1, 9.00% (a), 2/1/20, MBIA | 1,500,000 | ||
Michigan (1.6%) | ||||
750,000 | Michigan State Hospital Finance Authority Revenue, 5.50%, 11/1/12 | 788,040 | ||
Minnesota (3.2%) | ||||
1,500,000 | Minnesota State GO, 5.00%, 8/1/16, Callable 8/1/12 @ 100 | 1,579,650 | ||
New Jersey (2.1%) | ||||
1,000,000 | New Jersey State Certificate of Participation, 5.00%, 6/15/09 | 1,025,460 | ||
New York (6.3%) | ||||
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 | 1,001,190 | ||
1,000,000 | New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series B, 5.25%, 4/1/12, AMBAC | 1,075,520 |
See accompanying notes to financial statements.
74
PACIFIC CAPITAL FUNDS
Tax-Free Short Intermediate Securities Fund
Schedule of Portfolio Investments, continued
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
New York, continued | ||||
1,000,000 | New York, New York GO, Series C, 4.25%, 1/1/12 | 1,035,890 | ||
3,112,600 | ||||
Oklahoma (4.1%) | ||||
625,000 | McClain County Oklahoma Economic Development Authority Educational Facilities Lease Revenue, Newcastle Public Schools Project, 5.00%, 9/1/10 | 648,900 | ||
1,345,000 | Tulsa Oklahoma Industrial Authority Educational Facilities Revenue, Series B, 5.00%, 12/1/14, | 1,364,072 | ||
2,012,972 | ||||
Pennsylvania (2.2%) | ||||
1,030,000 | Philadelphia Water & Wastewater Revenue, Series B, 5.50%, 11/1/11, FGIC | 1,099,339 | ||
Puerto Rico (6.0%) | ||||
1,200,000 | Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, 6.25%, 7/1/13, MBIA | 1,375,452 | ||
500,000 | Puerto Rico Commonwealth Highway & Transportation Authority Revenue, Series D, 5.75%, 7/1/41, Prerefunded 7/1/12 @ 100 | 545,870 | ||
1,000,000 | University Puerto Rico University Revenue, Series P, 5.00%, 6/1/12 | 1,025,790 | ||
2,947,112 | ||||
Shares or Principal Amount ($) | Security | Value ($) | ||
Municipal Bonds, continued | ||||
Tennessee (3.5%) | ||||
480,000 | Sullivan County Tennessee Health Educational & Housing Facilities Board Revenue, Wellmont Health Systems Project, 6.25%, 9/1/32, Prerefunded 9/1/12 @ 101 | 542,040 | ||
1,135,000 | Wilson County Tennessee GO, 5.00%, 4/1/12, MBIA | 1,210,160 | ||
1,752,200 | ||||
Washington (2.1%) | ||||
1,000,000 | Washington State Health Care Facilities Authority Revenue, Providence Health System, | 1,061,070 | ||
Total Municipal Bonds (Cost $48,108,653) | 48,786,860 | |||
Investment Companies (0.7%) | ||||
319,823 | Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 2.12% (b) | 319,823 | ||
Total Investment Companies (Cost $319,823) | 319,823 | |||
Total Investments (Cost $48,428,476) (c)—99.2% | 49,106,683 | |||
Other assets in excess of liabilities—0.8% | 412,066 | |||
Net Assets—100.0% | 49,518,749 | |||
(a) | Rate periodically changes. Rate disclosed is the rate in effect on July 31, 2008. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 730,131 | ||
Unrealized depreciation | (51,924 | ) | ||
Net unrealized appreciation | $ | 678,207 | ||
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 accompanying notes to financial statements.
75
PACIFIC CAPITAL FUNDS
U.S. Government Short Fixed Income Fund
Schedule of Portfolio Investments
July 31, 2008
Principal Amount ($) | Security | Value ($) | ||
U.S. Government Agencies (55.9%) | ||||
Federal Home Loan Bank (55.9%) | ||||
8,000,000 | 5.00%, 2/20/09 | 8,098,696 | ||
3,825,000 | 5.25%, 8/5/09 | 3,913,250 | ||
1,825,000 | 5.00%, 9/18/09 | 1,866,871 | ||
7,865,000 | 4.25%, 11/20/09 | 7,992,421 | ||
2,500,000 | 4.38%, 3/17/10 | 2,553,317 | ||
4,650,000 | 4.38%, 9/17/10 | 4,758,057 | ||
1,985,000 | 4.85%, 2/4/11 | 2,054,594 | ||
4,000,000 | 4.63%, 2/18/11 | 4,145,792 | ||
4,000,000 | 5.25%, 6/10/11 | 4,187,412 | ||
2,000,000 | 5.60%, 6/28/11 | 2,113,416 | ||
400,000 | 5.38%, 8/19/11 | 421,262 | ||
42,105,088 | ||||
Total U.S. Government Agencies (Cost $41,026,918) | 42,105,088 | |||
U.S. Treasury Obligations (42.0%) | ||||
U.S. Treasury Bills (3.9%) | ||||
3,000,000 | 2.46% (a), 6/4/09 | 2,945,892 | ||
U.S. Treasury Notes (38.1%) | ||||
2,895,000 | 3.25%, 8/15/08 | 2,896,557 | ||
5,300,000 | 3.13%, 9/15/08 | 5,312,178 | ||
1,000,000 | 4.38%, 11/15/08 | 1,007,735 |
Shares or Principal Amount ($) | Security | Value ($) | ||
U.S. Treasury Obligations, continued | ||||
U.S. Treasury Notes, continued | ||||
3,800,000 | 4.88%, 5/15/09 | 3,880,454 | ||
2,875,000 | 4.88%, 6/30/09 | 2,943,057 | ||
3,800,000 | 4.88%, 8/15/09 | 3,900,347 | ||
1,300,000 | 3.13%, 11/30/09 | 1,314,728 | ||
2,800,000 | 2.13%, 4/30/10 | 2,789,063 | ||
1,500,000 | 2.63%, 5/31/10 | 1,504,920 | ||
200,000 | 4.13%, 8/15/10 | 206,391 | ||
2,800,000 | 4.88%, 7/31/11 | 2,964,063 | ||
28,719,493 | ||||
Total U.S. Treasury Obligations (Cost $31,658,808) | 31,665,385 | |||
Investment Companies (0.9%) | ||||
659,178 | American Performance U.S. Treasury Fund, Administrative Class, 1.25% (b) | 659,178 | ||
Total Investment Companies (Cost $659,178) | 659,178 | |||
Total Investments (Cost $73,344,904) (c)—98.8% | 74,429,651 | |||
Other assets in excess of liabilities—1.2% | 900,716 | |||
Net Assets—100.0% | 75,330,367 | |||
(a) | Rate disclosed represents effective yield at purchase. |
(b) | Rate periodically changes. Rate disclosed is the daily yield on July 31, 2008. |
(c) | Represents cost for financial reporting and federal income tax purposes. Unrealized appreciation/depreciation is as follows: |
Unrealized appreciation | $ | 1,130,781 | ||
Unrealized depreciation | (46,034 | ) | ||
Net unrealized appreciation | $ | 1,084,747 | ||
See accompanying notes to financial statements.
76
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Notes to Financial Statements
July 31, 2008
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 or sales price (whichever is less) 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, the 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 (the “Board”). 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 value as reported by such companies. The differences between cost and fair value of investments are reflected as either unrealized appreciation or depreciation.
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Notes to Financial Statements, continued
July 31, 2008
In cases where market prices for portfolio securities are not readily available, a Pricing Committee established and appointed by the Trust’s Board 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. 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 contracts (typically a contract of one week or less) or forward contracts (contract term over one week). 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. In addition, the use of forward currency contracts does not eliminate fluctuations in the underlying prices of the securities.
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
78
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, continued
July 31, 2008
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. Not all restricted securities are considered illiquid. At July 31, 2008, the International Stock Fund held restricted securities representing 1.7% of net assets. The restricted securities held as of July 31, 2008 are identified below:
Issue Description | Acquisition Date | Shares | Cost ($) | Value ($) | ||||
International Stock Fund: | ||||||||
Evraz Group SA, GDR | * | 18,631 | 519,745 | 1,788,576 | ||||
Wellstream Holdings PLC | ** | 59,666 | 1,481,945 | 1,409,252 |
* | Purchased on various dates beginning 4/25/06. |
** | Purchased on various dates beginning 2/8/08. |
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 if the trade was 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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Notes to Financial Statements, continued
July 31, 2008
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 of 2.00% on redemptions and exchanges of Fund shares within 30 days from the date the Fund shares were acquired. Prior to October 16, 2007, the fee could be assessed on redemptions and exchanges of Fund shares within 90 days from the date the Fund shares were acquired. 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, 2008 and July 31, 2007 were as follows:
Year Ended 7/31/08 ($) | Year Ended 7/31/07 ($) | |||
New Asia Growth Fund | 1,105 | 375 | ||
International Stock Fund | 2,369 | 813 |
New Accounting Pronouncements:
In September 2006, the Financial Accounting Standards Board (“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. As of July 31, 2008, the Funds do not believe the adoption of SFAS No. 157 impacts the financial statement amounts; however, additional disclosures will 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.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities”. SFAS 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds’ financial statements and related disclosures.
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Notes to Financial Statements, continued
July 31, 2008
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, 2008 were as follows:
Purchases ($) | Sales ($) | |||
New Asia Growth Fund | 54,485,865 | 65,504,139 | ||
International Stock Fund | 127,123,049 | 164,067,627 | ||
Small Cap Fund | 543,609,780 | 712,457,747 | ||
Mid-Cap Fund | 85,850,860 | 91,444,819 | ||
Growth Stock Fund | 120,203,347 | 150,615,473 | ||
Growth and Income Fund | 84,710,824 | 107,231,038 | ||
Value Fund | 123,202,957 | 142,309,552 | ||
High Grade Core Fixed Income Fund | 85,366,917 | 71,237,392 | ||
Tax-Free Securities Fund | 83,963,198 | 110,947,883 | ||
High Grade Short Intermediate Fixed Income Fund | 7,081,077 | 6,326,170 | ||
Tax-Free Short Intermediate Securities Fund | 19,018,060 | 21,374,118 |
Purchases and sales of long-term U.S. Government securities for the year ended July 31, 2008 were as follows:
Purchases ($) | Sales ($) | |||
High Grade Core Fixed Income Fund | 107,154,439 | 152,395,515 | ||
High Grade Short Intermediate Fixed Income Fund | 83,341,536 | 84,811,072 | ||
U.S. Government Short Fixed Income Fund | 46,502,442 | 74,257,676 |
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. The Adviser may voluntarily waive a portion of its fees. Voluntary waivers may be terminated at any time and are not subject to recoupment by the Adviser. Fee rates for the year ended July 31, 2008 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 | 0.35 | |||
Growth Stock Fund | 0.55 | 0.35 | |||
Growth and Income Fund | 0.55 | 0.35 | |||
Value Fund | 0.55 | 0.35 | |||
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 | 0.20 | |||
Tax-Free Short Intermediate Securities Fund | 0.50 | 0.40 | |||
U.S. Government Short Fixed Income Fund | 0.40 | 0.11 |
1 | The Adviser has voluntarily agreed to waive a portion of its fees for the Small Cap Fund so that the total combined advisory and sub-advisory fees will not exceed 1.00%. |
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PACIFIC CAPITAL FUNDS
Notes to Financial Statements, continued
July 31, 2008
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 managed by the Sub-Adviser 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 Capital Management Corp. | 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 million1 | ||
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 million3 | |||
Mid-Cap Fund | Chicago Equity Partners, LLC | 0.20% | ||
Growth Stock Fund | Chicago Equity Partners, LLC | 0.25% | ||
Growth and Income Fund | Chicago Equity Partners, LLC | 0.25% | ||
Value Fund | Chicago Equity Partners, LLC | 0.25% |
1 | On assets managed by Mellon Capital Management Corp. using a “small cap value” strategy. Prior to January 1, 2008, Mellon Equity Associates, LLP acted as Sub-Adviser to these assets and received the same fees as listed in the table. |
2 | On assets managed by Nicholas-Applegate Capital Management using a “systematic small cap” strategy. |
3 | On assets managed by Wellington Management Company, LLP using a “small cap growth” strategy. |
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.
Citi Fund Services Ohio, Inc. (“Citi”) serves the Trust as Sub-Administrator pursuant to an agreement among the Trust, the Administrator and Citi. Citi receives fees from the Trust at the annual rate of 0.05% of the average daily net assets of the Trust, subject to reduction if certain standards are not met, and $10,000 annually for providing additional regulatory services, plus out-of-pocket expenses.
In addition, Citi provides an employee to serve as Chief Compliance Officer for the Trust and performs certain related services. Citi receives a fee for this service and reimbursement for certain related out-of-pocket expenses.
Citi also serves the Trust as Fund Accountant and Transfer Agent. Under the terms of the fund accounting and transfer agency agreements, Citi is entitled to receive fees, subject to reduction if certain standards are not met, and reimbursement for certain out-of-pocket expenses.
Foreside Distribution Services, L.P. (the “Distributor”) serves the Trust as principal underwriter and distributor. The Trust has adopted for the Class A, Class B and Class C Shares of each of the Funds the Class A Distribution Plan, Class B Distribution Plan and Class C Distribution Plan (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plans, each Fund pays the Distributor a fee which will not exceed on an annual basis, 0.40%, 1.00% and 1.00%, respectively, of the average daily net assets attributable to the Class A, Class B and Class C Shares of each Fund. The Distributor is
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PACIFIC CAPITAL FUNDS
Notes to Financial Statements, continued
July 31, 2008
contractually limiting the 12b-1 fee for Class A Shares to 0.25% through November 30, 2008. These fees are for payments the Distributor makes to banks, other institutions and broker dealers, including certain affiliates of the Administrator and for expenses the Distributor and any of its affiliates or subsidiaries incur for providing distribution or shareholder service assistance. The following table shows amounts received by the Distributor on commissions from sales and the amounts paid to affiliated broker dealers of the Funds during the year ended July 31, 2008:
Received ($) | Paid to Affiliates ($) | |||
Class A | 106,032 | 791 | ||
Class C | 68,743 | 541 |
Certain Officers and Trustees of the Trust are affiliated with the Administrator, the Adviser or Citi. 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 their 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 the shares of 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.
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.
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 Fund’s and Tax-Free Short Intermediate Securities Fund’s 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 amounts 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
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Notes to Financial Statements, continued
July 31, 2008
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.
Effective January 31, 2008, the Funds adopted 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 a taxing authority based on the technical merits of the position. A tax position that meets the more-than-likely-than-not recognition threshold is measured to determine the amount to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal tax and the state of Hawaii (i.e. the last 4 tax year ends and the interim tax period since then). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations.
The tax character of distributions paid during the year ended July 31, 2008 were as follows (amounts in thousands):
Distributions Paid From | ||||||||||||
Net Investment Income ($) | Net Long-Term Capital Gains ($) | Total Taxable Distributions ($) | Return of Capital ($) | Tax Exempt Distributions ($) | Total Distributions Paid ($)* | |||||||
New Asia Growth Fund | 5,594 | 14,882 | 20,476 | — | — | 20,476 | ||||||
International Stock Fund | 2,714 | 15,912 | 18,626 | — | — | 18,626 | ||||||
Small Cap Fund | 33,243 | 40,794 | 74,037 | — | — | 74,037 | ||||||
Mid-Cap Fund | 2,130 | 5,804 | 7,934 | 56 | — | 7,990 | ||||||
Growth Stock Fund | 828 | — | 828 | 7 | — | 835 | ||||||
Growth and Income Fund | 1,360 | 7,925 | 9,285 | — | — | 9,285 | ||||||
Value Fund | 18,946 | 7,044 | 25,990 | 51 | — | 26,041 | ||||||
High Grade Core Fixed Income Fund | 13,576 | — | 13,576 | — | — | 13,576 | ||||||
Tax-Free Securities Fund | 576 | 189 | 765 | — | 11,544 | 12,309 | ||||||
High Grade Short Intermediate Fixed Income Fund | 2,799 | — | 2,799 | — | — | 2,799 | ||||||
Tax-Free Short Intermediate Securities Fund | 21 | — | 21 | — | 1,571 | 1,592 | ||||||
U.S. Government Short Fixed Income Fund | 3,385 | — | 3,385 | — | — | 3,385 |
* | Total Distributions Paid differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid. |
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Notes to Financial Statements, continued
July 31, 2008
The tax character of distributions paid during the year ended July 31, 2007 were as follows (amounts in thousands):
Distributions Paid From | ||||||||||||
Net Investment Income ($) | Net Long-Term Capital Gains ($) | Total Taxable Distributions ($) | Return of Capital ($) | Tax Exempt Distributions ($) | Total Distributions Paid ($)* | |||||||
New Asia Growth Fund | 2,322 | 7,883 | 10,205 | — | — | 10,205 | ||||||
International Stock Fund | 2,517 | 98 | 2,615 | — | — | 2,615 | ||||||
Small Cap Fund | 17,848 | 15,839 | 33,687 | — | — | 33,687 | ||||||
Mid-Cap Fund | 1,254 | 7,155 | 8,409 | — | — | 8,409 | ||||||
Growth Stock Fund | 217 | — | 217 | — | — | 217 | ||||||
Growth and Income Fund | 1,205 | 28 | 1,233 | — | — | 1,233 | ||||||
Value Fund | 2,637 | 19,141 | 21,778 | — | — | 21,778 | ||||||
High Grade Core Fixed Income Fund | 15,170 | — | 15,170 | 13 | — | 15,183 | ||||||
Tax-Free Securities Fund | 418 | 272 | 690 | — | 12,294 | 12,984 | ||||||
High Grade Short Intermediate Fixed Income Fund | 2,973 | — | 2,973 | — | — | 2,973 | ||||||
Tax-Free Short Intermediate Securities Fund | 122 | — | 122 | — | 1,893 | 2,015 | ||||||
U.S. Government Short Fixed Income Fund | 4,389 | — | 4,389 | — | — | 4,389 |
* | Total Distributions Paid differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid. |
As of July 31, 2008, the components of accumulated earnings/(deficit) on a tax basis were as follows (amounts in thousands):
Undistributed | Accumulated Capital & Other Losses ($) | Unrealized Appreciation/ (Depreciation) ($)** | Total Accumulated Earnings/ (Deficit) ($) | |||||||||||||||
Ordinary Income ($) | Long-Term Capital Gain ($) | Accumulated Earnings ($) | Distributions Payable ($) | |||||||||||||||
New Asia Growth Fund | 1,772 | 10,124 | 11,896 | — | (125 | ) | 8,964 | 20,735 | ||||||||||
International Stock Fund | 792 | 20,012 | 20,804 | — | (429 | ) | (20 | ) | 20,355 | |||||||||
Small Cap Fund | — | 801 | 801 | — | (53,528 | ) | (12,568 | ) | (65,295 | ) | ||||||||
Mid-Cap Fund | — | — | — | — | (4,488 | ) | (1,953 | ) | (6,441 | ) | ||||||||
Growth Stock Fund | — | — | — | — | (80,361 | ) | (4,675 | ) | (85,036 | ) | ||||||||
Growth and Income Fund | 46 | — | 46 | — | (9,284 | ) | (5,714 | ) | (14,952 | ) | ||||||||
Value Fund | — | — | — | — | (4,688 | ) | (12,903 | ) | (17,591 | ) | ||||||||
High Grade Core Fixed Income Fund | 59 | — | 59 | (100 | ) | (1,323 | ) | (790 | ) | (2,154 | ) | |||||||
High Grade Short Intermediate Fixed Income Fund | 12 | — | 12 | (19 | ) | (1,628 | ) | 274 | (1,361 | ) | ||||||||
U.S. Government Short Fixed Income Fund | 20 | — | 20 | (20 | ) | (2,148 | ) | 1,085 | (1,063 | ) |
** | 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. |
85
PACIFIC CAPITAL FUNDS
Notes to Financial Statements, continued
July 31, 2008
Undistributed | Accumulated Capital & Other Losses ($) | Unrealized Appreciation/ (Depreciation) ($) | Total Accumulated Earnings/ (Deficit) ($) | ||||||||||||||||
Tax-Exempt Income ($) | Ordinary Income ($) | Long-Term Capital Gain ($) | Accumulated Earnings ($) | Distributions Payable ($) | |||||||||||||||
Tax-Free Securities Fund | 90 | — | 342 | 432 | (90 | ) | — | 7,398 | 7,740 | ||||||||||
Tax-Free Short Intermediate Securities Fund | 14 | — | — | 14 | (13 | ) | (755 | ) | 678 | (76 | ) |
As of the latest tax year end of July 31, 2008, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by 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 ($) | 2016 ($) | |||||||
Mid-Cap Fund | — | — | — | — | — | 739,471 | ||||||
Growth Stock Fund | 76,835,141 | — | — | — | — | 3,055,247 | ||||||
Growth and Income Fund | — | — | — | — | — | 5,239,853 | ||||||
Value Fund | — | — | — | — | — | 4,646,679 | ||||||
High Grade Core Fixed Income Fund | — | — | — | — | 1,322,549 | — | ||||||
High Grade Short Intermediate Fixed Income Fund | — | — | — | 55,901 | 1,571,661 | — | ||||||
Tax-Free Short Intermediate Securities Fund | — | — | 14,258 | 18,908 | 657,223 | 49,093 | ||||||
U.S. Government Short Fixed Income Fund | — | — | 590,139 | 889,880 | 668,108 | — |
During the year ended July 31, 2008, the High Grade Core Fixed Income Fund, High Grade Short Intermediate Fixed Income Fund and U.S. Government Short Fixed Income Fund utilized $2,823, $604 and $711 in capital loss carryforwards (amounts in thousands), respectively.
Under current tax law, capital and foreign currency losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. The following Funds have deferred losses, which will be treated as arising on the first day of the fiscal year to end July 31, 2009:
Post-October Capital Losses ($) | Post-October Foreign Currency Losses ($) | |||
New Asia Growth Fund | — | 125,275 | ||
International Stock Fund | — | 428,564 | ||
Small Cap Fund | 53,528,120 | — | ||
Mid-Cap Fund | 3,748,155 | — | ||
Growth Stock Fund | 471,012 | — | ||
Growth and Income Fund | 4,043,699 | — | ||
Value Fund | 41,507 | — | ||
Tax-Free Short Intermediate Securities Fund | 15,122 | — |
7. | Legal and Regulatory Matters |
Citi 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.
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 | 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, 2008 | $ | 22.06 | $ | 0.20 | $ | (0.76 | ) | $ | (0.56 | ) | $ | (0.23 | ) | $ | (3.70 | ) | $ | (3.93 | ) | $ | 17.57 | (5.38 | %) | $ | 4,986 | 1.59 | % | 1.04 | % | 1.74 | % | 45.92 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 20.99 | $ | 0.01 | (f) | $ | (0.66 | )(f) | $ | (0.65 | ) | $ | (0.10 | ) | $ | (3.70 | ) | $ | (3.80 | ) | $ | 16.54 | (6.13 | %) | $ | 137 | 2.34 | % | 0.04 | % | 2.34 | % | 45.92 | % | ||||||||||||||
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 | ||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 20.97 | $ | 0.05 | $ | (0.70 | ) | $ | (0.65 | ) | $ | (0.14 | ) | $ | (3.70 | ) | $ | (3.84 | ) | $ | 16.48 | (6.09 | %) | $ | 657 | 2.34 | % | 0.26 | % | 2.34 | % | 45.92 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||
Year 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, 2008 | $ | 22.39 | $ | 0.27 | $ | (0.80 | ) | $ | (0.53 | ) | $ | (0.26 | ) | $ | (3.70 | ) | $ | (3.96 | ) | $ | 17.90 | (5.14 | %) | $ | 93,039 | 1.34 | % | 1.21 | % | 1.34 | % | 45.92 | % | |||||||||||||||
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 |
* | 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 | 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 Average | Portfolio Turnover (e) | |||||||||||||||||||||||||||||||||||
CLASS A | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 13.57 | $ | 0.12 | $ | (1.23 | ) | $ | (1.11 | ) | $ | (0.12 | ) | $ | (0.88 | ) | $ | (1.00 | ) | $ | 11.46 | (9.03 | %) | $ | 1,644 | 1.35 | % | 1.10 | % | 1.60 | % | 52.32 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 12.87 | $ | 0.01 | (f) | $ | (1.15 | )(f) | $ | (1.14 | ) | $ | (0.04 | ) | $ | (0.88 | ) | $ | (0.92 | ) | $ | 10.81 | (9.76 | %) | $ | 163 | 2.10 | % | 0.09 | % | 2.20 | % | 52.32 | % | ||||||||||||||
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 | ||||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 12.85 | $ | 0.04 | $ | (1.16 | ) | $ | (1.12 | ) | $ | (0.06 | ) | $ | (0.88 | ) | $ | (0.94 | ) | $ | 10.79 | (9.66 | %) | $ | 450 | 2.10 | % | 0.31 | % | 2.20 | % | 52.32 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||
Year 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, 2008 | $ | 13.84 | $ | 0.18 | $ | (1.28 | ) | $ | (1.10 | ) | $ | (0.15 | ) | $ | (0.88 | ) | $ | (1.03 | ) | $ | 11.71 | (8.80 | %) | $ | 182,692 | 1.10 | % | 1.32 | % | 1.20 | % | 52.32 | % | |||||||||||||||
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 |
* | 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.
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 (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, 2008 | $ | 18.29 | $ | (0.13 | ) | $ | (1.77 | ) | $ | (1.90 | ) | $ | — | $ | (2.91 | ) | $ | (2.91 | ) | $ | 13.48 | (11.86 | %) | $ | 120,495 | 1.63 | % | (0.68 | %) | 1.88 | % | 130.78 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 16.99 | $ | (0.19 | ) | $ | (1.62 | ) | $ | (1.81 | ) | $ | — | $ | (2.91 | ) | $ | (2.91 | ) | $ | 12.27 | (12.48 | %) | $ | 1,481 | 2.18 | % | (1.22 | %) | 2.48 | % | 130.78 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 17.00 | $ | (0.22 | ) | $ | (1.63 | ) | $ | (1.85 | ) | $ | — | $ | (2.91 | ) | $ | (2.91 | ) | $ | 12.24 | (12.54 | %) | $ | 17,067 | 2.38 | % | (1.47 | %) | 2.48 | % | 130.78 | % | ||||||||||||||
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 | ||||||||||||||||||||||||||||
Year 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, 2008 | $ | 18.61 | $ | (0.08 | ) | $ | (1.82 | ) | $ | (1.90 | ) | $ | — | $ | (2.91 | ) | $ | (2.91 | ) | $ | 13.80 | (11.64 | %) | $ | 173,745 | 1.38 | % | (0.45 | %) | 1.48 | % | 130.78 | % | ||||||||||||||
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 |
* | 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.
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 (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, 2008 | $ | 12.17 | $ | 0.02 | $ | (1.56 | ) | $ | (1.54 | ) | $ | (0.03 | ) | $ | (1.24 | ) | $ | (1.27 | ) | $ | 9.36 | (13.60 | %) | $ | 549 | 1.15 | % | 0.21 | % | 1.55 | % | 130.00 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Year 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, 2008 | $ | 11.93 | $ | (0.06 | ) | $ | (1.52 | ) | $ | (1.58 | ) | $ | — | $ | (1.24 | ) | $ | (1.24 | ) | $ | 9.11 | (14.22 | %) | $ | 378 | 1.90 | % | (0.54 | %) | 2.15 | % | 130.00 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Year 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, 2008 | $ | 12.19 | $ | 0.05 | $ | (1.56 | ) | $ | (1.51 | ) | $ | (0.06 | ) | $ | (1.24 | ) | $ | (1.30 | ) | $ | 9.38 | (13.36 | %) | $ | 55,037 | 0.90 | % | 0.46 | % | 1.15 | % | 130.00 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Year 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 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.
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 | Rations/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, 2008 | $ | 9.53 | $ | 0.03 | $ | (0.71 | ) | $ | (0.68 | ) | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 8.81 | (7.20 | %) | $ | 7,868 | 1.16 | % | 0.30 | % | 1.51 | % | 77.71 | % | |||||||||||||||
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 | |||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 8.81 | $ | (0.07 | ) | $ | (0.63 | ) | $ | (0.70 | ) | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 8.10 | (7.94 | %) | $ | 2,259 | 1.91 | % | (0.38 | )% | 2.11 | % | 77.71 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 8.80 | $ | (0.05 | ) | $ | (0.65 | ) | $ | (0.70 | ) | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 8.09 | (7.95 | %) | $ | 1,291 | 1.91 | % | (0.42 | )% | 2.11 | % | 77.71 | % | ||||||||||||||
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) | ||||||||||||||||||||||||||||
Year 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, 2008 | $ | 9.84 | $ | 0.06 | $ | (0.74 | ) | $ | (0.68 | ) | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 9.10 | (6.98 | %) | $ | 116,888 | 0.91 | % | 0.57 | % | 1.11 | % | 77.71 | % | |||||||||||||||
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 |
* | 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) | 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, 2008 | $ | 14.58 | $ | 0.10 | $ | (1.55 | ) | $ | (1.45 | ) | $ | (0.10 | ) | $ | (0.79 | ) | $ | (0.89 | ) | $ | 12.24 | (10.65 | %) | $ | 5,401 | 1.15 | % | 0.77 | % | 1.50 | % | 60.54 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 13.66 | $ | 0.01 | $ | (1.46 | ) | $ | (1.45 | ) | $ | (0.01 | ) | $ | (0.79 | ) | $ | (0.80 | ) | $ | 11.41 | (11.37 | %) | $ | 1,114 | 1.90 | % | 0.08 | % | 2.10 | % | 60.54 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 13.65 | $ | — | (g) | $ | (1.45 | ) | $ | (1.45 | ) | $ | (0.01 | ) | $ | (0.79 | ) | $ | (0.80 | ) | $ | 11.40 | (11.38 | %) | $ | 1,336 | 1.90 | % | 0.03 | % | 2.10 | % | 60.54 | % | ||||||||||||||
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) | |||||||||||||||||||||||||||||
Year 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, 2008 | $ | 14.70 | $ | 0.15 | $ | (1.58 | ) | $ | (1.43 | ) | $ | (0.14 | ) | $ | (0.79 | ) | $ | (0.93 | ) | $ | 12.34 | (10.48 | %) | $ | 108,492 | 0.90 | % | 1.03 | % | 1.10 | % | 60.54 | % | |||||||||||||||
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 |
* | 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) | 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. |
(g) | Less than $0.005 per share. |
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 (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, 2008 | $ | 10.55 | $ | 0.12 | $ | (1.37 | ) | $ | (1.25 | ) | $ | (0.12 | ) | $ | (1.75 | ) | $ | (1.87 | ) | $ | 7.43 | (14.09 | %) | $ | 2,157 | 1.13 | % | 1.28 | % | 1.48 | % | 92.94 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.34 | $ | 0.05 | $ | (1.34 | ) | $ | (1.29 | ) | $ | (0.05 | ) | $ | (1.75 | ) | $ | (1.80 | ) | $ | 7.25 | (14.66 | %) | $ | 528 | 1.88 | % | 0.57 | % | 2.08 | % | 92.94 | % | ||||||||||||||
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 | 0.33 | 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 | ||||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.37 | $ | 0.05 | $ | (1.34 | ) | $ | (1.29 | ) | $ | (0.06 | ) | $ | (1.75 | ) | $ | (1.81 | ) | $ | 7.27 | (14.69 | %) | $ | 1,321 | 1.88 | % | 0.55 | % | 2.08 | % | 92.94 | % | ||||||||||||||
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) | |||||||||||||||||||||||||||||
Year 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, 2008 | $ | 10.57 | $ | 0.15 | $ | (1.37 | ) | $ | (1.22 | ) | $ | (0.15 | ) | $ | (1.75 | ) | $ | (1.90 | ) | $ | 7.45 | (13.83 | %) | $ | 104,435 | 0.88 | % | 1.54 | % | 1.08 | % | 92.94 | % | ||||||||||||||
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 |
* | 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) | 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, 2008 | $ | 10.62 | $ | 0.48 | $ | 0.07 | $ | 0.55 | $ | (0.47 | ) | $ | — | $ | (0.47 | ) | $ | 10.70 | 5.21 | % | $ | 3,259 | 0.94 | % | 4.42 | % | 1.24 | % | 65.72 | % | |||||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS B | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.60 | $ | 0.40 | $ | 0.06 | $ | 0.46 | $ | (0.39 | ) | $ | — | $ | (0.39 | ) | $ | 10.67 | 4.34 | % | $ | 881 | 1.69 | % | 3.70 | % | 1.84 | % | 65.72 | % | |||||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.60 | $ | 0.40 | $ | 0.06 | $ | 0.46 | $ | (0.39 | ) | $ | — | $ | (0.39 | ) | $ | 10.67 | 4.34 | % | $ | 860 | 1.69 | % | 3.67 | % | 1.84 | % | 65.72 | % | |||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Year 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, 2008 | $ | 10.68 | $ | 0.51 | $ | 0.07 | $ | 0.58 | $ | (0.50 | ) | $ | — | $ | (0.50 | ) | $ | 10.76 | 5.44 | % | $ | 278,815 | 0.69 | % | 4.64 | % | 0.84 | % | 65.72 | % | |||||||||||||||||
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 |
* | 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) | 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, 2008 | $ | 10.05 | $ | 0.41 | $ | (0.14 | ) | $ | 0.27 | $ | (0.41 | ) | $ | (0.01 | ) | $ | (0.42 | ) | $ | 9.90 | 2.77 | % | $ | 5,136 | 0.95 | % | 4.14 | % | 1.25 | % | 30.61 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.05 | $ | 0.34 | $ | (0.14 | ) | $ | 0.20 | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.35 | ) | $ | 9.90 | 2.00 | % | $ | 731 | 1.70 | % | 3.39 | % | 1.85 | % | 30.61 | % | ||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.05 | $ | 0.34 | $ | (0.13 | ) | $ | 0.21 | $ | (0.34 | ) | $ | (0.01 | ) | $ | (0.35 | ) | $ | 9.91 | 2.10 | % | $ | 11 | 1.70 | % | 3.38 | % | 1.85 | % | 30.61 | % | ||||||||||||||
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 | ||||||||||||||||||||||||||||
Year 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, 2008 | $ | 10.09 | $ | 0.44 | $ | (0.14 | ) | $ | 0.30 | $ | (0.44 | ) | $ | (0.01 | ) | $ | (0.45 | ) | $ | 9.94 | 3.02 | % | $ | 254,182 | 0.70 | % | 4.36 | % | 0.85 | % | 30.61 | % | ||||||||||||||
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 |
* | 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) | The portfolio turnover rate increased significantly during the period. This 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, 2008 | $ | 9.54 | $ | 0.40 | $ | 0.15 | $ | 0.55 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | $ | 9.69 | 5.83 | % | $ | 1,022 | 0.77 | % | 4.12 | % | 1.23 | % | 143.94 | % | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 9.54 | $ | 0.33 | $ | 0.14 | $ | 0.47 | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | 9.68 | 4.93 | % | $ | 463 | 1.52 | % | 3.38 | % | 1.83 | % | 143.94 | % | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Year 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, 2008 | $ | 9.56 | $ | 0.42 | $ | 0.15 | $ | 0.57 | $ | (0.42 | ) | $ | — | $ | (0.42 | ) | $ | 9.71 | 6.08 | % | $ | 62,209 | 0.52 | % | 4.37 | % | 0.83 | % | 143.94 | % | ||||||||||||||||
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 |
* | 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) | 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 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, 2008 | $ | 10.02 | $ | 0.31 | $ | 0.12 | $ | 0.43 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 10.14 | 4.31 | % | $ | 1,956 | 1.02 | % | 3.04 | % | 1.27 | % | 39.29 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||
CLASS C | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.02 | $ | 0.23 | $ | 0.12 | $ | 0.35 | $ | (0.23 | ) | $ | — | $ | (0.23 | ) | $ | 10.14 | 3.55 | % | $ | 11 | 1.77 | % | 2.30 | % | 1.87 | % | 39.29 | % | |||||||||||||||
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 | ||||||||||||||||||||||||||||
Year 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, 2008 | $ | 10.08 | $ | 0.33 | $ | 0.12 | $ | 0.45 | $ | (0.33 | ) | $ | — | $ | (0.33 | ) | $ | 10.20 | 4.55 | % | $ | 47,552 | 0.77 | % | 3.27 | % | 0.87 | % | 39.29 | % | |||||||||||||||
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 |
* | 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) | 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 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, 2008 | $ | 10.06 | $ | 0.39 | $ | 0.20 | $ | 0.59 | $ | (0.39 | ) | $ | — | $ | (0.39 | ) | $ | 10.26 | 5.89 | % | $ | 2,773 | 0.65 | % | 3.75 | % | 1.09 | % | 62.20 | % | ||||||||||||||||
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 | |||||||||||||||||||||||||||||
CLASS B | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.06 | $ | 0.31 | $ | 0.20 | $ | 0.51 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 10.26 | 5.11 | % | $ | 454 | 1.40 | % | 3.08 | % | 1.69 | % | 62.20 | % | ||||||||||||||||
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 | |||||||||||||||||||||||||||
CLASS C | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended July 31, 2008 | $ | 10.06 | $ | 0.31 | $ | 0.20 | $ | 0.51 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 10.26 | 5.11 | % | $ | 928 | 1.40 | % | 3.04 | % | 1.69 | % | 62.20 | % | ||||||||||||||||
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 | |||||||||||||||||||||||||||||
Year 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, 2008 | $ | 10.07 | $ | 0.41 | $ | 0.20 | $ | 0.61 | $ | (0.41 | ) | $ | — | $ | (0.41 | ) | $ | 10.27 | 6.15 | % | $ | 71,175 | 0.40 | % | 4.03 | % | 0.69 | % | 62.20 | % | ||||||||||||||||
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 |
* | 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, 2008, 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 four-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 period ended July 31, 2004 were audited by other auditors whose report thereon dated September 1, 2004, expressed an unqualified opinion on those 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, 2008, by correspondence with 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, 2008, 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 four-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
September 25, 2008
99
PACIFIC CAPITAL FUNDS
Additional Tax Information
(Unaudited)
For the year ended July 31, 2008, the following percentages of the total ordinary income distributions paid by the Funds during the year represent qualified dividend income:
Qualified Dividend Income (%) | ||
New Asia Growth Fund | 12.11 | |
International Stock Fund | 100.00 | |
Small Cap Fund | 12.58 | |
Mid-Cap Fund | 41.00 | |
Growth Stock Fund | 100.00 | |
Growth and Income Fund | 100.00 | |
Value Fund | 27.02 |
For corporate shareholders, the following percentages of the total ordinary income distributions paid by the Funds during the year ended July 31, 2008 qualify for the corporate dividends received deduction:
Dividend Received Deduction (%) | ||
Small Cap Fund | 14.22 | |
Mid-Cap Fund | 42.29 | |
Growth Stock Fund | 100.00 | |
Growth and Income Fund | 100.00 | |
Value Fund | 27.63 |
The Funds may elect to pass through foreign taxes paid by the Funds to their shareholders under Section 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, 2008 are as follows:
Foreign Source Income ($) | Foreign Tax Expense ($) | |||
New Asia Growth Fund | 0.39 | 0.04 | ||
International Stock Fund | 0.30 | 0.03 |
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, 2008 (amounts in thousands):
Amount ($) | ||
New Asia Growth Fund | 14,882 | |
International Stock Fund | 15,912 | |
Small Cap Fund | 40,794 | |
Mid-Cap Fund | 5,803 | |
Growth and Income Fund | 7,925 | |
Value Fund | 7,044 | |
Tax-Free Securities Fund | 189 |
100
PACIFIC CAPITAL FUNDS
Trustees and Officers (Unaudited)
July 31, 2008
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) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Peter S. Ho* 130 Merchant Street, 22nd Floor Honolulu, Hawaii 96813 Age: 43 | Trustee | Indefinite; Since 5/04 | President, Bank of Hawaii (04/08-Present), Vice Chairman & Chief Banking Officer—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, Teach for America—Hawaii, GIFT 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) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Stanley W. Hong 4976 Poola Street Honolulu, Hawaii 96821 Age: 72 | Trustee | Indefinite; Since 11/92 | Chairman of the Board of Trustees, The King William Charles Lunalilo Trust Estate (since 2001); President of Waste Management of Hawaii, Inc. (2001-2005); Corporate Vice President of Waste Management (Houston) (2001-2006). | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1992); Member of the Board of: First Insurance Co. of Hawaii, Ltd., Lanihau Properties, LLC and Heald Education, LLC; Member of the Board of the following non-profit organizations: Chaminade University of Honolulu, Nature Conservancy of Hawaii, St. Louis School, Blue Planet Foundation, Child and Family Service and East West Center Foundation. | |||||
Richard L. Humphreys 970 N Kalaheo Avenue, Suite C110 Kailua, Hawaii 96734 Age: 64 | 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 (Unaudited), continued
July 31, 2008
Name, Address and Age | Position(s) | Term of | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held by Trustee | |||||
Russell K. Okata 1015 Wilder Avenue, #203 Honolulu, Hawaii 96822 Age: 64 | Trustee and (Since 3/ 05) Chairman | Indefinite; Since 11/92 | Retired. Formerly Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO (1981-2007); International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO (1981-2007). | 12 | Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (since 1992) and Aquila Three Peaks High Income Fund (since 2007) (registered investment companies); former Chairman of the Royal State Group (1988-2007); Trustee of: Blood Bank of Hawaii, Bishop Museum, Judicial Council of Hawaii and other community organizations. | |||||
Douglas Philpotts 55 Dowsett Avenue Honolulu, Hawaii 96817 Age: 76 | Trustee | Indefinite; Since 11/92 | 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 1992); 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: 77 | Trustee | Indefinite; Since 11/92 | 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 1992); Director of Grace Pacific Corp. (since 1995); Member of Advisory Board of Hawaiian Telecom Communications, Inc.; 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 (Unaudited), continued
July 31, 2008
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 12th Floor Honolulu, Hawaii 96813 Age: 60 | President | Indefinite; Since 7/06 | Executive Vice President, Bank of Hawaii (since 2002). | |||
Jennifer Lam 130 Merchant Street 12th Floor Honolulu, Hawaii 96813 Age: 31 | Senior Vice President | Indefinite; Since 9/05 | Vice President, Bank of Hawaii (since 2005); Investment Analyst, International Finance Corporation, World Bank Group (2002-2005). | |||
Frederick J. Schmidt 1 Rexcorp Plaza Uniondale, NY 11556 Age: 49 | Chief Compliance Officer | Term expires 2009; Since 5/08 | Senior Vice President and Chief Compliance Officer, CCO Services of Citi Fund Services Ohio, Inc. (since 2004). | |||
Christopher E. Sabato 3435 Stelzer Road Columbus, Ohio 43219 Age: 39 | Treasurer | Indefinite; Since 9/05 | Senior Vice President, Fund Administration of Citi Fund Services (since 1993). | |||
Jennifer A. English 100 Summer Street, Suite 1500 Boston, Massachusetts 02110 Age: 35 | Secretary | Indefinite; Since 12/07 | Vice President, Citi Fund Services, Inc. (since 2005), Assistant Counsel, PFPC, Inc. (2002-2005). |
* | 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 (Unaudited)
In March 2008, the Board of Trustees approved two amendments of the Trust’s investment sub-advisory arrangements, neither of which required consideration of the substance of those arrangements in the same manner as the Board’s annual review of their renewal. The Board approved an amendment to the Trust’s Sub-Advisory Agreement with Mellon Equity Associates (“MEA”) with respect to the Small Cap Fund, to reflect the merger of MEA into its affiliate Mellon Capital Management Corporation. In addition, the Board approved an amendment to the Trust’s Sub-Advisory Agreement with Chicago Equity Partners, LLC (“CEP”) with respect to the Growth Stock, Growth and Income, and Value Funds, reducing CEP’s annual sub-advisory fees to 0.20% of the combined average daily net assets of all three Funds in excess of $500 million.
104
PACIFIC CAPITAL FUNDS
Additional Information (Unaudited)
July 31, 2008
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, 2008 through July 31, 2008.
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 “Expense Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 2/1/08 | Ending Account Value 7/31/08 | Expense Paid During Period* 2/1/08 - 7/31/08 | Expense Ratio During Period** 2/1/08 - 7/31/08 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 893.60 | $ | 7.63 | 1.62 | % | |||||
Class B | 1,000.00 | 889.70 | 11.14 | 2.37 | ||||||||||
Class C | 1,000.00 | 890.30 | 11.14 | 2.37 | ||||||||||
Class Y | 1,000.00 | 895.00 | 6.45 | 1.37 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 948.20 | 6.64 | 1.37 | |||||||||
Class B | 1,000.00 | 944.40 | 10.25 | 2.12 | ||||||||||
Class C | 1,000.00 | 945.50 | 10.25 | 2.12 | ||||||||||
Class Y | 1,000.00 | 949.60 | 5.43 | 1.12 | ||||||||||
Small Cap Fund | Class A | 1,000.00 | 999.30 | 8.45 | 1.70 | |||||||||
Class B | 1,000.00 | 995.90 | 9.68 | 1.95 | ||||||||||
Class C | 1,000.00 | 995.10 | 12.15 | 2.45 | ||||||||||
Class Y | 1,000.00 | 1,000.70 | 7.21 | 1.45 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 978.70 | 5.71 | 1.16 | |||||||||
Class C | 1,000.00 | 975.40 | 9.38 | 1.91 | ||||||||||
Class Y | 1,000.00 | 980.00 | 4.48 | 0.91 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 973.60 | 5.79 | 1.18 | |||||||||
Class B | 1,000.00 | 970.10 | 9.45 | 1.93 | ||||||||||
Class C | 1,000.00 | 968.90 | 9.45 | 1.93 | ||||||||||
Class Y | 1,000.00 | 974.50 | 4.57 | 0.93 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 941.40 | 5.65 | 1.17 | |||||||||
Class B | 1,000.00 | 937.60 | 9.25 | 1.92 | ||||||||||
Class C | 1,000.00 | 938.30 | 9.25 | 1.92 | ||||||||||
Class Y | 1,000.00 | 943.00 | 4.44 | 0.92 | ||||||||||
Value Fund | Class A | 1,000.00 | 920.80 | 5.44 | 1.14 | |||||||||
Class B | 1,000.00 | 918.70 | 9.02 | 1.89 | ||||||||||
Class C | 1,000.00 | 917.80 | 9.01 | 1.89 | ||||||||||
Class Y | 1,000.00 | 922.10 | 4.25 | 0.89 |
105
PACIFIC CAPITAL FUNDS
Additional Information (Unaudited), continued
July 31, 2008
Beginning Account Value 2/1/08 | Ending Account Value 7/31/08 | Expense Paid During Period* 2/1/08 - 7/31/08 | Expense Ratio During Period** 2/1/08 - 7/31/08 | |||||||||||
High Grade Core Fixed Income Fund | Class A | $ | 1,000.00 | $ | 988.70 | $ | 4.70 | 0.95 | % | |||||
Class B | 1,000.00 | 984.10 | 8.39 | 1.70 | ||||||||||
Class C | 1,000.00 | 984.10 | 8.39 | 1.70 | ||||||||||
Class Y | 1,000.00 | 989.10 | 3.46 | 0.70 | ||||||||||
Tax-Free Securities Fund | Class A | 1,000.00 | 994.50 | 4.71 | 0.95 | |||||||||
Class B | 1,000.00 | 990.80 | 8.41 | 1.70 | ||||||||||
Class C | 1,000.00 | 990.80 | 8.41 | 1.70 | ||||||||||
Class Y | 1,000.00 | 995.70 | 3.47 | 0.70 | ||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | 1,000.00 | 1,001.90 | 3.83 | 0.77 | |||||||||
Class C | 1,000.00 | 998.20 | 7.55 | 1.52 | ||||||||||
Class Y | 1,000.00 | 1,004.10 | 2.59 | 0.52 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,004.00 | 5.13 | 1.03 | |||||||||
Class C | 1,000.00 | 1,000.30 | 8.85 | 1.78 | ||||||||||
Class Y | 1,000.00 | 1,005.20 | 3.89 | 0.78 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,006.10 | 3.24 | 0.65 | |||||||||
Class B | 1,000.00 | 1,002.40 | 6.97 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,002.40 | 6.97 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,007.40 | 2.00 | 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. |
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 2/1/08 | Ending Account Value 7/31/08 | Expense Paid During Period* 2/1/08 - 7/31/08 | Expense Ratio During Period** 2/1/08 - 7/31/08 | |||||||||||
New Asia Growth Fund | Class A | $ | 1,000.00 | $ | 1,016.81 | $ | 8.12 | 1.62 | % | |||||
Class B | 1,000.00 | 1,013.08 | 11.86 | 2.37 | ||||||||||
Class C | 1,000.00 | 1,013.08 | 11.86 | 2.37 | ||||||||||
Class Y | 1,000.00 | 1,018.05 | 6.87 | 1.37 | ||||||||||
International Stock Fund | Class A | 1,000.00 | 1,018.05 | 6.87 | 1.37 | |||||||||
Class B | 1,000.00 | 1,014.32 | 10.62 | 2.12 | ||||||||||
Class C | 1,000.00 | 1,014.32 | 10.62 | 2.12 | ||||||||||
Class Y | 1,000.00 | 1,019.29 | 5.62 | 1.12 |
106
PACIFIC CAPITAL FUNDS
Additional Information (Unaudited), continued
July 31, 2008
Beginning Account Value 2/1/08 | Ending Account Value 7/31/08 | Expense Paid During Period* 2/1/08 - 7/31/08 | Expense Ratio During Period** 2/1/08 - 7/31/08 | |||||||||||
Small Cap Fund | Class A | $ | 1,000.00 | $ | 1,016.41 | $ | 8.52 | 1.70 | % | |||||
Class B | 1,000.00 | 1,015.17 | 9.77 | 1.95 | ||||||||||
Class C | 1,000.00 | 1,012.68 | 12.26 | 2.45 | ||||||||||
Class Y | 1,000.00 | 1,017.65 | 7.27 | 1.45 | ||||||||||
Mid-Cap Fund | Class A | 1,000.00 | 1,019.10 | 5.82 | 1.16 | |||||||||
Class C | 1,000.00 | 1,015.37 | 9.57 | 1.91 | ||||||||||
Class Y | 1,000.00 | 1,020.34 | 4.57 | 0.91 | ||||||||||
Growth Stock Fund | Class A | 1,000.00 | 1,019.00 | 5.92 | 1.18 | |||||||||
Class B | 1,000.00 | 1,015.27 | 9.67 | 1.93 | ||||||||||
Class C | 1,000.00 | 1,015.27 | 9.67 | 1.93 | ||||||||||
Class Y | 1,000.00 | 1,020.24 | 4.67 | 0.93 | ||||||||||
Growth and Income Fund | Class A | 1,000.00 | 1,019.05 | 5.87 | 1.17 | |||||||||
Class B | 1,000.00 | 1,015.32 | 9.62 | 1.92 | ||||||||||
Class C | 1,000.00 | 1,015.32 | 9.62 | 1.92 | ||||||||||
Class Y | 1,000.00 | 1,020.29 | 4.62 | 0.92 | ||||||||||
Value Fund | Class A | 1,000.00 | 1,019.19 | 5.72 | 1.14 | |||||||||
Class B | 1,000.00 | 1,015.47 | 9.47 | 1.89 | ||||||||||
Class C | 1,000.00 | 1,015.47 | 9.47 | 1.89 | ||||||||||
Class Y | 1,000.00 | 1,020.44 | 4.47 | 0.89 | ||||||||||
High Grade Core Fixed Income Fund | Class A | 1,000.00 | 1,020.14 | 4.77 | 0.95 | |||||||||
Class B | 1,000.00 | 1,016.41 | 8.52 | 1.70 | ||||||||||
Class C | 1,000.00 | 1,016.41 | 8.52 | 1.70 | ||||||||||
Class Y | 1,000.00 | 1,021.38 | 3.52 | 0.70 | ||||||||||
Tax-Free Securities Fund | Class A | 1,000.00 | 1,020.14 | 4.77 | 0.95 | |||||||||
Class B | 1,000.00 | 1,016.41 | 8.52 | 1.70 | ||||||||||
Class C | 1,000.00 | 1,016.41 | 8.52 | 1.70 | ||||||||||
Class Y | 1,000.00 | 1,021.38 | 3.52 | 0.70 | ||||||||||
High Grade Short Intermediate Fixed Income Fund | Class A | 1,000.00 | 1,021.03 | 3.87 | 0.77 | |||||||||
Class C | 1,000.00 | 1,017.30 | 7.62 | 1.52 | ||||||||||
Class Y | 1,000.00 | 1,022.28 | 2.61 | 0.52 | ||||||||||
Tax-Free Short Intermediate Securities Fund | Class A | 1,000.00 | 1,019.74 | 5.17 | 1.03 | |||||||||
Class C | 1,000.00 | 1,016.01 | 8.92 | 1.78 | ||||||||||
Class Y | 1,000.00 | 1,020.98 | 3.92 | 0.78 | ||||||||||
U.S. Government Short Fixed Income Fund | Class A | 1,000.00 | 1,021.63 | 3.27 | 0.65 | |||||||||
Class B | 1,000.00 | 1,017.90 | 7.02 | 1.40 | ||||||||||
Class C | 1,000.00 | 1,017.90 | 7.02 | 1.40 | ||||||||||
Class Y | 1,000.00 | 1,022.87 | 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. |
107
PACIFIC CAPITAL FUNDS
Additional Information (Unaudited), continued
July 31, 2008
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.
108
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. |
2008 | 2007 | |||||
Audit Fees | $ | 141,000 | $ | 133,500 | ||
Audit-Related Fees | $ | 14,750 | $ | 6,500 | ||
Tax Fees | $ | 59,220 | $ | 56,400 | ||
All Other Fees | $ | 0 | $ | 0 |
Nature of services regarding Audit-Related Fees:
2008: | Consent on N-1A charges: $4,750 plus $10,000 for 17f-2 count | |
2007: | Consent on N-1A charges: $4,500 plus $2,000 for 17f-2 count |
Nature of services regarding Tax Fees:
2008: | Preparation of federal income tax and U.S. excise tax returns; preparation of Hawaiian corporate tax returns; excise tax distribution review. | |
2007: | 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, 2008 and July 31, 2007, 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 $773,970 for 2008 and $62,900 for 2007.
(h) Not applicable
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
(a) | Not applicable. |
(b) | 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 10/3/08 |
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 10/3/08 | ||
By (Signature and Title)* | /s/ Christopher E. Sabato | |
Christopher E. Sabato, Treasurer | ||
Date 10/6/08 |
* | Print the name and title of each signing officer under his or her signature. |