As filed with the Securities and Exchange Commission on [date]
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 811-07737
THE PURISIMA FUNDS
(Exact name of registrant as specified in charter)
13100 SKYLINE BLVD.
WOODSIDE, CALIFORNIA 94062
(Address of principal executive offices) (Zip code)
U.S. BANCORP FUND SERVICES, LLC
2020 EAST FINANCIAL WAY, SUITE 100
GLENDORA, CA 91741
(Name and address of agent for service)
(650) 851-3334
Registrant's telephone number, including area code
Date of fiscal year end: AUGUST 31, 2005
Date of reporting period: FEBRUARY 28, 2005
ITEM 1. REPORT TO STOCKHOLDERS.
Semi-Annual report February 28, 2005.
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THE PURISIMA FUNDS
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SEMI-ANNUAL REPORT (UNAUDITED)
FEBRUARY 28, 2005
The Purisima Total Return Fund
The Purisima Pure American Fund
The Purisima Pure Foreign Fund
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TABLE OF CONTENTS
A Letter to Our Shareholders 2
Sector Breakdown 6
Expense Example 7
Schedule of Investments
Total Return Fund 9
Pure American Fund 13
Pure Foreign Fund 17
Statements of Assets and Liabilities 21
Statements of Operations 22
Statement of Changes in Net Assets
Total Return Fund 23
Pure American Fund 24
Pure Foreign Fund 25
Financial Highlights
Total Return Fund 26
Pure American Fund 27
Pure Foreign Fund 28
Notes to Financial Statements 29
Other Information 36
Privacy Notice 40
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INVESTMENT OBJECTIVES
PURISIMA TOTAL RETURN FUND
Seeks to provide investors with a high level of total return by considering both
domestic and foreign securities.
PURISIMA PURE AMERICAN FUND
Seeks to provide investors with a high level of total return, while
concentrating its holdings in U.S. securities.
PURISIMA PURE FOREIGN FUND
Seeks to provide investors with a high level of total return, while
concentrating its holdings in securities outside the U.S.
EACH FUND RESERVES THE RIGHT TO REJECT ANY ORDER FOR THE PURCHASE OF ITS SHARES
OR TO LIMIT OR SUSPEND, WITHOUT PRIOR NOTICE, THE OFFERING OF ITS SHARES. THE
REQUIRED MINIMUM INVESTMENTS MAY BE WAIVED IN THE CASE OF CERTAIN QUALIFIED
RETIREMENT PLANS. THE FUNDS WILL NOT ACCEPT YOUR ACCOUNT IF YOU ARE INVESTING
FOR ANOTHER PERSON AS ATTORNEY-IN-FACT. THE FUNDS ALSO WILL NOT ACCEPT ACCOUNTS
WITH A "POWER OF ATTORNEY" IN THE REGISTRATION SECTION OF THE PURCHASE
APPLICATION.
1
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A LETTER TO OUR SHAREHOLDERS
We are pleased to bring you the semi-annual report for the Purisima
Funds for the six-month period ended February 28, 2005.
MARKET REVIEW AND OUTLOOK:
Global equity markets appreciated significantly during the period,
ending what had been a docile 2004 before a fourth quarter rally began.
Investors appeared to be waiting out the uncertainty of the US
Presidential elections but responded positively once the result was
known. Continued economic growth provided a strong backdrop. Each of the
Funds remained fully invested in equities during the period, benefiting
from our bullish posture.
Prior to the last period, we had anticipated significant gains in the
major developed equity markets. This forecast was based largely on
beliefs that GDP growth and corporate earnings would exceed
expectations, interest rates would remain benign, the outcome of the
Presidential election would not be debated, the dollar would rise, and
that geopolitical/terrorism concerns would ease. These proved mostly
correct. For the six months, foreign markets rose over 20% in dollar
terms (as measured by the Morgan Stanley EAFE index (the benchmark for
the Pure Foreign Fund)), while domestically the S&P 500 (the benchmark
for the Pure American Fund) gained just about 10%. Most of these gains
occurred in the fourth quarter of 2004.
Growth in economic activity and a boost to consumer confidence allowed
economically sensitive industries in general to lead during the period,
although technology shares lagged as negative sentiment continued to
surround the sector. Energy and materials were the top performers. Each
of the Funds benefited from high exposure to cyclical industries but
also suffered from the poor relative performance in information
technology, where they were each overweight.
Small caps again outperformed large caps in the US and in most other
major markets. A rally in the euro relative to the dollar late in 2004
helped foreign markets to outperform the US in dollar terms. The yen and
British pound also appreciated relative to the dollar, but to a lesser
extent.
Regionally, within the developed foreign markets, continental Europe
showed the most strength during the period, followed by Japan, while the
UK posted slightly smaller gains. Strong economic growth in Europe
remains elusive, but companies there are finding ways to increase
profits, and pro-business reforms continue to progress. In the Funds
with global exposure, our foreign regional weightings added value
relative to their respective benchmarks, though this was offset in the
Total Return Fund because of an overweight to the US, which lagged.
Our outlook for the immediate future remains bullish. We expect strong
returns for the remainder of 2005 for both the US and global markets. In
contrast to last year, we expect increased volatility, however.
2
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This forecast is consistent with historical precedent. First years of
President's terms have typically been either negative or very positive - middle
ground is rare - and more pronounced for reelected presidents. If stocks rise,
we anticipate they will rise big.
We are very bullish primarily because we believe:
o Stocks are undervalued relative to bonds (based on expected earnings
yields compared to interest rates)
o Sentiment is guarded
o Earnings expectations are ripe for upside surprise
o Exceptionally strong corporate balance sheets provide significant
optimization opportunities through re-leveraging
o Monetary and fiscal conditions globally are conducive to rapid
economic growth
Stocks today are exceptionally attractive in our estimation compared to fixed
income securities and cash. Earnings yields on major global stock indices are
generally above comparable long term bond yields, an unusual but highly bullish
condition.
It is hard to find an outright screaming bull. Judging by our surveying efforts,
professional forecasters agree that 2005 stock market returns should be boring
at best -most likely delivering middling single-digit returns. In our view, this
guarded sentiment presents an excellent opportunity for above average gains as
strong corporate and economic conditions are realized.
One near-universal misperception, we think, is that corporate earnings will
decelerate dramatically. Forecasters generally believe profit margins can't
expand and earnings growth will be limited to revenue growth. We see further
productivity gains and resilient top line expansion, enabling earnings to
surpass relatively modest consensus expectations.
Corporate re-leveraging should also contribute to sizable stock gains. Overall,
company balance sheets are perhaps healthier than they have been in the last
century. Firms have the flexibility to redeploy cash and exercise unused
borrowing capacity to optimize their capital structures and improve returns on
invested capital. Methods will include buying back stock, paying higher
dividends, and pursuing acquisitions - all bullish moves.
Economic growth globally should continue responding to the huge amount of fiscal
and monetary stimulus remaining in force. The US government, for instance, has
been re-leveraging in the last several years, as evidenced by its big budget
deficits. Contrary to popular belief, periods following extreme federal budget
deficits have been above average for stock returns. While short-term interest
rates may increase, longer term bond yields should stay near current levels over
the coming months, a bullish surprise. We believe inflation pressures are more
contained than consensus expectations and will remain so as the Fed tightens
appropriately as expected.
3
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FUND POSITIONING
In the Total Return Fund, we are retaining an overweight to the US
equity market relative to the MSCI World Index. The three year streak of
foreign dominance should soon end, especially if the US dollar rebounds.
The US economy is better positioned than most other major regions to
lead in terms of economic growth immediately ahead, which will support
corporate earnings growth. In both the Total Return Fund and the Pure
Foreign Fund, continental European and Japanese stocks continue to also
be favored. The UK and Australia are facing more of an inflation
headwind and are underweighted.
Stylistically, the Funds feature a value oriented tilt relative to their
benchmarks. To the extent global yield curves flatten and the dollar
strengthens, we anticipate rotating toward larger and more
growth-oriented stocks. Already, each of the Funds is overweight
economically sensitive sectors such as Information Technology and
Energy.
Financials is the largest sector in each of the Funds' respective
benchmarks and will likely play a large role in determining returns in
the coming year. We ended the period overweight based on our views that
the world economy should exceed growth expectations, yield curves
generally remain steep, and long-term interest rates should stay
relatively low. Each of these suggests a good environment for financials
stocks. However, we also suspect that yield curves will flatten over the
coming months and quarters. In this scenario, we are likely to decrease
our financials weight, especially for yield curve sensitive categories
such as commercial banks.
As the year progresses, we expect to make certain other style, sector,
and country shifts reflective of the evolution of the market cycle.
CLOSING REMARKS
For the period, the Funds all participated in a strong move upwards
after more flattish returns during the first three quarters of 2004.
The posture of the portfolio compositions remain largely unchanged.
While our stylistic allocations had mixed results during the period, for
now the major themes in place from last period are still of consequence.
Sectors leveraged to continued economic growth should witness relatively
higher returns. Our holdings in these areas are companies with strong
operating results but are also frequently selected for demonstrating an
ability to gain more than their peer group in a rising market
environment.
4
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We are excited for what we believe should be another rewarding, albeit bumpier,
period for equity investors. Each of the Funds is positioned to benefit from a
strong market environment. We believe each will appreciate beyond its respective
benchmark if our market outlook proves correct.
Thank you for your continued interest and support.
Sincerely,
Kenneth L. Fisher
Chairman and Chief Investment Officer
Fisher Investments
OPINIONS EXPRESSED ABOVE ARE THOSE OF KENNETH L. FISHER AND ARE SUBJECT TO
CHANGE, ARE NOT GUARANTEED AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY
OR SELL ANY SECURITY. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. FUND
HOLDINGS AND SECTOR ALLOCATIONS ARE SUBJECT TO CHANGE AND ARE NOT
RECOMMENDATIONS TO BUY OR SELL ANY SECURITY. THE MSCI WORLD INDEX IS A
BROAD-BASED UNMANAGED CAPITALIZATION-WEIGHTED STOCK INDEX DESIGNED TO MEASURE
GLOBAL DEVELOPED MARKET EQUITY PERFORMANCE. IT CONSISTS OF 23 DEVELOPED MARKET
COUNTRY INDICES. THE S&P 500 INDEX IS A BROAD-BASED UNMANAGED INDEX OF 500
STOCKS, WHICH IS WIDELY RECOGNIZED AS REPRESENTATIVE OF THE EQUITY MARKET IN
GENERAL. THE MSCI EAFE INDEX CONSISTS OF THE MORGAN STANLEY WORLD INDEX
COMPONENTS WITHOUT THE UNITED STATES AND CANADA. ONE CANNOT INVEST DIRECTLY IN
AN INDEX.
MUTUAL FUND INVESTING INVOLVES RISK OF LOSS. PRINCIPAL LOSS IS POSSIBLE. FOREIGN
INVESTING INVOLVES SPECIAL RISKS, INCLUDING A GREATER VOLATILITY AND POLITICAL,
ECONOMIC AND CURRENCY RISKS AND DIFFERENCES IN ACCOUNTING METHODS. SMALL- AND
MEDIUM-CAPITALIZATION COMPANIES TEND TO HAVE LIMITED LIQUIDITY AND GREATER PRICE
VOLATILITY THAN LARGE-CAPITALIZATION COMPANIES. GROWTH STOCKS TYPICALLY ARE MORE
VOLATILE THAN VALUE STOCKS; HOWEVER, VALUE STOCKS HAVE A LOWER EXPECTED GROWTH
RATE IN EARNINGS AND SALES.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. PLEASE READ IT
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
QUASAR DISTRIBUTORS, LLC, DISTRIBUTOR 04/05
PRIVACY NOTICE LISTED ON PAGE 40
5
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SECTOR BREAKDOWN(1)
PURISIMA TOTAL RETURN FUND
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Basic Materials 2.6%
Communications 6.3%
Consumer, Cyclical 10.0%
Consumer, Non-cyclical 10.9%
Energy 12.4%
Financial 28.3%
Industrial 14.1%
Technology 11.7%
Utilities 3.3%
Short-Term Investment 0.4%
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PURISIMA PURE AMERICAN FUND
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Basic Materials 3.2%
Communications 6.1%
Consumer, Cyclical 12.2%
Consumer, Non-cyclical 12.8%
Energy 13.8%
Financial 24.4%
Industrial 11.6%
Technology 14.1%
Utilities 1.5%
Short-Term Investment 0.3%
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PURISIMA PURE FOREIGN FUND
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Basic Materials 7.6%
Communications 6.6%
Consumer, Cyclical 13.9%
Consumer, Non-cyclical 8.8%
Energy 13.8%
Financial 30.7%
Industrial 10.6%
Technology 5.0%
Utilities 3.0%
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(1) % of Total Investments as of February 28, 2005.
6
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IMPORTANT INFORMATION
The following disclosure provides important information regarding the Funds'
Expense Example. Please refer to this information when reviewing the Expense
Example for the Funds.
EXPENSE EXAMPLE
As a shareholder of the Funds, you incur two types of costs: (1) transaction
costs, including exchange fees; and (2) ongoing costs, including management
fees; distribution and/or service (12b-1) fees (Total Return Fund only); and
other Fund expenses. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in the Funds and to compare these costs
with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period indicated and held for the entire period from September 1, 2004 to
February 28, 2005.
ACTUAL EXPENSES
The information in the table under the heading "Actual Performance" provides
information about actual account values and actual expenses. You may use the
information in these columns 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 row entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The information in the table under the heading "Hypothetical Performance (5%
return before expenses)" provides information about hypothetical account values
and hypothetical expenses based on the Funds' actual expense ratios and assumed
rates of return of 5% per year before expenses, which are not the Funds' actual
returns. 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 the ongoing costs of investing in the
Funds and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the information
under the heading "Hypothetical Performance (5% return before expenses)" 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.
7
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PURISIMA TOTAL RETURN FUND
ACTUAL HYPOTHETICAL PERFORMANCE
PERFORMANCE (5% RETURN BEFORE EXPENSES)
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Beginning Account
Value (09/01/04) $ 1,000 $ 1,000
Ending Account
Value (02/28/05) $ 1,131 $ 1,017
Expenses Paid
During Period(1) $ 7.92 $ 7.50
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PURISIMA PURE AMERICAN FUND
ACTUAL HYPOTHETICAL PERFORMANCE
PERFORMANCE (5% RETURN BEFORE EXPENSES)
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Beginning Account
Value (09/01/04) $ 1,000 $ 1,000
Ending Account
Value (02/28/05) $ 1,116 $ 1,017
Expenses Paid
During Period(1) $ 7.87 $ 7.50
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PURISIMA PURE FOREIGN FUND
ACTUAL HYPOTHETICAL PERFORMANCE
PERFORMANCE (5% RETURN BEFORE EXPENSES)
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Beginning Account
Value (09/01/04) $ 1,000 $ 1,000
Ending Account
Value (02/28/05) $ 1,200 $ 1,017
Expenses Paid
During Period(1) $ 8.18 $ 7.50
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- -------
(1) Expenses are equal to the Fund's annualized expense ratio of 1.50%
multiplied by the average account value over the period, multiplied by 181
days in most recent fiscal half-year /365 (to reflect the one-half year
period).
8
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SCHEDULE OF INVESTMENTS PURISIMA TOTAL RETURN FUND
FEBRUARY 28, 2005 (UNAUDITED)
SHARES VALUE
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COMMON STOCKS: 99.6%
AEROSPACE/DEFENSE EQUIPMENT: 2.4%
49,600 Lockheed Martin Corp. $ 2,937,312
50,500 United Technologies Corp. 5,043,940
------------
7,981,252
------------
AIRLINES: 0.6%
134,500 Japan Airlines Corp. - ADR* 2,031,327
------------
AUTOMOTIVE: 2.2%
38,100 Fuji Heavy Industries Ltd. - ADR 1,782,882
246,000 Nissan Motor Co. Ltd. - ADR 5,271,780
------------
7,054,662
------------
BANKING: 15.8%
437,100 Banco Santander Central - ADR 5,376,330
100,700 Barclays Plc - ADR 4,425,765
39,500 Comerica, Inc. 2,254,660
158,500 Credit Suisse Group - ADR 6,894,750
52,000 HSBC Holdings Plc - ADR 4,341,480
425,600 Mitsubishi Tokyo Finance - ADR 3,902,752
52,275 National City Corp. 1,869,877
126,996 San Paolo - IMI SpA - ADR 3,705,743
374,000 Sumitomo Mitsui - ADR 2,603,676
38,100 SunTrust Banks, Inc. 2,759,964
48,600 UBS AG 4,216,050
79,800 Wachovia Corp. 4,230,198
118,300 Washington Mutual, Inc. 4,963,868
------------
51,545,113
------------
BIOMEDICINE: 1.0%
52,000 Amgen, Inc.* 3,203,720
------------
BIOTECHNOLOGY: 0.7%
48,000 Genentech, Inc.* 2,265,600
COMPUTERS: 3.7%
125,700 Dell Computer Corp.* 5,039,313
110,400 Electronic Data Systems Corp. 2,351,520
368,100 EMC Corp.* 4,660,146
------------
12,050,979
------------
See accompanying Notes to Financial Statements. 9
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SHARES VALUE
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT: 3.4%
71,700 General Electric Co. $ 2,523,840
79,800 Hitachi Ltd. - ADR 5,051,340
240,700 Matsushita Electric Industrial
Co., Ltd - ADR 3,596,058
------------
11,171,238
------------
FINANCIAL SERVICES: 8.0%
78,000 American Express Co. 4,223,700
43,600 Goldman Sachs Group, Inc. 4,743,680
137,771 ING Groep N.V. - ADR 4,226,814
71,600 Lehman Brothers Holdings, Inc. 6,528,488
234,000 Nomura Holdings, Inc. - ADR 3,240,900
47,700 Orix Corp. - ADR 3,112,425
------------
26,076,007
------------
FOODS: 1.1%
155,800 Sara Lee Corp. 3,489,920
------------
HOUSEHOLD AUDIO & VIDEO EQUIPMENT: 0.8%
66,200 Sony Corp. - ADR 2,501,698
------------
HOUSEHOLD PRODUCTS: 1.9%
54,700 Kimberly-Clark Corp. 3,609,106
49,200 Procter & Gamble Co. 2,612,028
------------
6,221,134
------------
IMPORT & EXPORT: 0.8%
11,900 Mitsui & Co. Ltd. - ADR 2,450,686
------------
INSURANCE: 4.5%
94,900 Allstate Corp. 5,094,232
81,544 American International Group, Inc. 5,447,139
159,600 Axa S.A. - ADR 4,280,472
------------
14,821,843
------------
MACHINERY: 2.5%
86,100 Caterpillar, Inc. 8,183,805
------------
MEDIA: 2.7%
40,000 Gannett Co. 3,150,000
201,900 Walt Disney Co. 5,641,086
------------
8,791,086
------------
MISCELLANEOUS MANUFACTURING: 5.2%
83,500 Honeywell International, Inc. 3,170,495
55,200 Illinois Tool Works 4,954,200
208,500 Lafarge S.A. - ADR 5,437,680
42,800 Siemens AG - ADR 3,340,112
------------
16,902,487
------------
10 See accompanying Notes to Financial Statements.
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SHARES VALUE
- --------------------------------------------------------------------------------
OIL & GAS: 14.1%
77,000 Anadarko Petroleum Corp. $ 5,918,220
124,900 Baker Hughes, Inc. 5,905,272
74,600 BASF AG - ADR 5,587,540
68,400 ChevronTexaco Corp. 4,246,272
54,100 ConocoPhillips 5,999,149
63,600 Occidental Petroleum Corp. 4,469,172
114,600 Royal Dutch Petroleum Co. - ADR 7,230,114
56,857 Total Fina S.A. - ADR 6,777,354
------------
46,133,093
------------
PAPER & FOREST PRODUCTS: 0.9%
77,600 International Paper Co. 2,898,360
------------
PHARMACEUTICALS: 5.4%
81,500 Astrazeneca Plc - ADR 3,238,810
90,400 GlaxoSmithKline Plc - ADR 4,359,088
57,100 Johnson & Johnson 3,745,760
42,200 Merck & Co., Inc. 1,337,740
121,280 Sanofi-Aventis - ADR* 4,840,285
------------
17,521,683
------------
RETAIL: 5.5%
126,900 Albertson's, Inc. 2,841,291
91,600 Costco Wholesale Corp. 4,267,644
175,000 Gap, Inc. 3,732,750
68,200 Ito Yokado Co., Ltd. - ADR 2,825,178
72,400 Lowe's Companies, Inc. 4,255,672
------------
17,922,535
------------
SEMICONDUCTORS: 3.7%
167,400 Intel Corp. 4,014,252
111,200 KLA-Tencor Corp.* 5,494,392
217,500 Micron Technology, Inc.* 2,501,250
------------
12,009,894
------------
SOFTWARE: 4.3%
108,400 First Data Corp. 4,446,568
115,200 Microsoft Corp. 2,900,736
324,200 Oracle Corp.* 4,185,422
308,000 Siebel Systems, Inc.* 2,627,240
------------
14,159,966
------------
TELECOMMUNICATIONS: 3.5%
59,700 Alltel Corp. 3,414,840
155,350 Bellsouth Corp. 4,008,030
103,600 BT Group Plc - ADR 4,171,972
------------
11,594,842
------------
TRANSPORTATION: 1.6%
53,400 Fedex Corp. 5,221,452
------------
See accompanying Notes to Financial Statements. 11
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SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES: 3.3%
93,400 Duke Energy Corp. $ 2,520,866
47,200 E. ON AG -ADR 4,248,000
85,700 Enel SpA - ADR 4,133,311
------------
10,902,177
------------
TOTAL COMMON STOCKS
(cost $270,182,600) 325,106,559
------------
SHORT-TERM INVESTMENT: 0.4%
1,308,376 SEI Daily Income Trust Government Class B
(cost $1,308,377) 1,308,377
------------
TOTAL INVESTMENTS IN SECURITIES
(cost $271,490,977): 100.0% 326,414,936
Other Assets less Liabilities: 0.0% 11,110
------------
NET ASSETS: 100.0% $326,426,046
============
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ADR- American depositary receipt.
* Non-income producing security.
12 See accompanying Notes to Financial Statements.
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SCHEDULE OF INVESTMENTS
PURISIMA PURE AMERICAN FUND
FEBRUARY 28, 2005 (UNAUDITED)
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS: 98.5%
AEROSPACE/DEFENSE EQUIPMENT: 2.8%
300 Lockheed Martin Corp. $ 17,766
1,050 Northrop Grumman Corp. 55,545
----------
73,311
----------
BANKING: 10.4%
1,125 Bank of America Corp. 52,481
900 Banknorth Group, Inc. 32,481
900 Comerica, Inc. 51,372
1,750 National City Corp 62,597
600 UnionBanCal Corp. 37,140
750 Wachovia Corp. 39,757
----------
275,828
----------
BIOMEDICINE: 1.2%
525 Amgen, Inc.* 32,345
----------
BIOTECHNOLOGY: 0.8%
450 Genentech, Inc.* 21,240
----------
CHEMICALS: 1.4%
750 Rohm & Haas Co. 36,127
----------
COMPUTER COMPONENTS & SOFTWARE: 5.3%
1,800 BMC Software, Inc.* 26,910
2,475 Cisco Systems, Inc.* 43,114
1,000 Microsoft Corp. 25,180
2,500 Siebel Systems, Inc.* 21,325
1,000 Veritas Software Corp.* 24,220
----------
140,749
----------
COMPUTERS: 6.2%
825 Dell Computer Corp.* 33,074
1,350 Electronic Data Systems Corp. 28,755
3,200 EMC Corp.* 40,512
400 IBM Corp. 37,032
5,900 Sun Microsystems, Inc.* 24,898
----------
164,271
----------
See accompanying Notes to Financial Statements. 13
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SHARES VALUE
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS: 3.9%
725 Clorox Co. (The) $ 43,529
575 Coca-Cola Co. (The) 24,610
400 Nike, Inc. - Class B 34,780
----------
102,919
----------
DIVERSIFIED COMMERCIAL SERVICES: 0.9%
575 Cintas Corp. 25,173
----------
ELECTRICAL EQUIPMENT: 1.0%
450 Johnson Controls, Inc. 26,595
----------
ELECTRONICS: 1.0%
5,300 Solectron Corp.* 26,235
----------
FINANCIAL SERVICES: 9.4%
725 American Express Co. 39,259
891 Citigroup, Inc. 42,519
350 Goldman Sachs Group, Inc. 38,080
325 Lehman Brothers Holdings, Inc. 29,633
550 Merrill Lynch & Co., Inc. 32,219
1,125 T Rowe Price Group, Inc. 69,064
----------
250,774
----------
FOODS: 1.2%
1,400 Sara Lee Corp. 31,360
----------
HEALTH CARE EQUIPMENT: 0.9%
450 Medtronic, Inc. 23,454
----------
HOUSEHOLD PRODUCTS: 1.4%
700 Procter & Gamble Co. 37,163
----------
INSURANCE: 4.3%
412 American International Group 27,522
19 Berkshire Hathaway, Inc. - Class B* 57,285
600 Safeco Corp. 28,614
----------
113,421
----------
MACHINERY: 1.8%
500 Caterpillar, Inc. 47,525
----------
MEDIA: 2.0%
1,950 Walt Disney Co 54,483
----------
MISCELLANEOUS MANUFACTURING: 1.3%
425 3M Co. 35,675
----------
OFFICE SUPPLIES: 1.8%
1,550 Staples, Inc. 48,856
----------
14 See accompanying Notes to Financial Statements.
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SHARES VALUE
- --------------------------------------------------------------------------------
OIL & GAS: 13.6%
825 BJ Services Co. $ 41,217
1,200 Burlington Resources, Inc. 59,556
950 ChevronTexaco Corp. 58,976
775 ConocoPhillips 85,940
1,100 Ensco International, Inc. 44,308
1,125 Exxon Mobil Corp. 71,224
----------
361,221
----------
PAPER & FOREST PRODUCTS: 1.8%
1,250 International Paper Co. 46,688
----------
PHARMACEUTICALS: 4.6%
600 Johnson & Johnson 39,360
575 Lilly (Eli) & Co. 32,200
650 Merck & Co., Inc. 20,605
750 Wyeth 30,615
----------
122,780
----------
RESTAURANTS: 2.4%
1,900 McDonald's Corp. 62,852
----------
RETAIL: 4.6%
6675 Costco Wholesale Corp. 31,448
600 Federated Department Stores 33,870
2,400 Limited Brands 57,072
----------
122,390
----------
SEMICONDUCTORS: 4.1%
1,900 Intel Corp. 45,562
625 KLA-Tencor Corp. 30,881
2,825 Micron Technology, Inc.* 32,488
----------
108,931
----------
TELECOMMUNICATIONS: 2.3%
1,175 BellSouth Corp. 30,315
1,000 Scientific-Atlanta, Inc. 30,900
----------
61,215
----------
TRANSPORTATION: 4.6%
1,500 Burlington Northern Santa Fe Corp. 75,405
475 Fedex Corp 46,446
----------
121,851
----------
UTILITIES: 1.5%
1,250 Southern Co. 40,150
----------
See accompanying Notes to Financial Statements. 15
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(cost $2,220,198) $2,615,582
----------
SHORT-TERM INVESTMENT: 0.2%
6,516 SEI Daily Income Trust
Government Class B
(cost $6,516) 6,516
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $2,226,714): 98.7% 2,622,098
Other Assets less Liabilities: 1.3% 34,195
----------
NET ASSETS: 100.0% $2,656,293
==========
- --------------
* Non-income producing security.
16 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
PURISIMA PURE FOREIGN FUND
FEBRUARY 28, 2005 (UNAUDITED)
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS: 98.4%
AUSTRALIA: 5.3%
5,925 BHP Billiton Ltd. - ADR $ 182,253
450 National Australia Bank Ltd. - ADR 51,390
----------
233,643
----------
FRANCE: 11.3%
4,150 Axa S.A. - ADR 111,303
950 Dassault Systemes S.A. - ADR 44,650
4,300 Groupe Danone - ADR 85,570
1,100 Publicis Groupe - ADR 33,275
1,740 Sanofi-Synthelabo SA - ADR* 69,443
1,272 Total Fina S.A. - ADR 151,622
----------
495,863
----------
GERMANY: 9.0%
900 BASF AG - ADR 67,410
3,200 Bayerische Hypo-Und
Vereinsbank AG - ADR 77,815
675 DaimlerChrysler AG 31,117
1,600 Deutsche Telekom AG - ADR* 33,392
4,500 Infineon Technologies AG - ADR* 46,530
1,325 SAP AG - ADR 53,729
1,025 Siemens AG - ADR 79,991
----------
389,984
----------
HONG KONG: 0.9%
2,400 China Mobile HK Ltd. - ADR 38,880
----------
ITALY: 6.5%
2,000 Enel SpA - ADR 96,460
600 Eni SpA - ADR 78,600
2,506 San Paolo - IMI SpA - ADR 73,125
965 Telecom Italia SpA - ADR 37,413
----------
285,598
----------
JAPAN: 24.8%
1,350 Canon, Inc. - ADR 71,199
375 Fuji Heavy Industries Ltd. - ADR 17,548
1,675 Hitachi, Ltd. - ADR 106,027
1,800 Ito Yokado Co., Ltd. - ADR 74,565
1,300 Japan Airlines Corp. - ADR 19,634
4,000 Komatsu Ltd. - ADR 120,286
See accompanying Notes to Financial Statements. 17
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
JAPAN: 24.8% (CONTINUED)
750 Kyocera Corp. - ADR $ 55,950
6,500 Matsushita Electric
Industrial Co., Ltd. - ADR 97,110
1,350 Millea Holdings, Inc. - ADR 99,049
100 Mitsui & Co. Ltd. - ADR 20,594
5,100 NEC Corp. - ADR 32,895
3,400 Nissan Motor Co. Ltd. - ADR 72,862
3,000 Nomura Holdings, Inc. - ADR 41,550
1,475 Orix Corp. - ADR 96,244
2,275 Sony Corp. - ADR 85,972
11,100 Sumitomo Mitsui - ADR 77,275
----------
1,088,760
----------
NETHERLANDS: 7.9%
3,970 ABN Amro Holding N.V. - ADR 109,493
2,206 ING Groep N.V. - ADR 67,680
1,700 Royal Dutch Petroleum Co. - ADR 107,253
2,300 TPG N.V. - ADR 64,147
----------
348,573
----------
NORWAY: 1.7%
850 Norsk Hydro A/S - ADR 73,363
----------
PORTUGAL: 1.0%
3,632 Portugal Telecom S.A. - ADR 44,129
----------
SPAIN: 6.2%
4,500 Banco Bilbao Vizcaya
Argentaria S.A. - ADR 77,805
6,375 Banco Santander Central
Hispano S.A. - ADR 78,412
2,650 Repsol S.A. - ADR 72,424
801 Telefonica S.A. - ADR 44,175
----------
272,816
----------
SWEDEN: 3.2%
3,050 Volvo AB - ADR 139,934
----------
SWITZERLAND: 5.4%
1,250 Novartis AG - ADR 62,463
2,000 UBS AG - ADR 173,500
----------
235,963
----------
18 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
UNITED KINGDOM: 15.2%
500 AstraZeneca Plc - ADR $ 19,870
2,350 Barclays Plc - ADR 103,283
1,700 BP Plc - ADR 110,364
1,325 BT Group Plc - ADR 53,358
2,950 Cadbury Schweppes Plc - ADR 117,027
550 GlaxoSmithKline Plc - ADR 26,521
1,025 HSBC Holdings Plc - ADR 85,577
700 National Grid Group - ADR 34,391
550 Rio Tinto Plc - ADR 77,864
1,800 Signet Group Plc - ADR 39,600
----------
667,855
----------
TOTAL COMMON STOCKS
(cost $3,359,731) 4,315,361
----------
TOTAL INVESTMENTS IN SECURITIES
(cost $3,359,731): 98.4% 4,315,361
Other Assets less Liabilities: 1.6% 72,330
----------
NET ASSETS: 100.0% $4,387,691
==========
- -----------
ADR - American depositary receipt.
* Non-income producing security.
See accompanying Notes to Financial Statements. 19
SCHEDULE OF INVESTMENTS BY INDUSTRY
PURISIMA PURE FOREIGN FUND
FEBRUARY 28, 2005 (UNAUDITED)
INDUSTRY % OF NET ASSETS
- --------------------------------------------------------------------------------
Advertising 0.8%
Airlines 0.5%
Automobile Manufacturers 6.0%
Banks 20.7%
Chemicals 1.6%
Diversified Manufacturing 1.8%
Electric 5.4%
Electronics 3.1%
Finance 3.1%
Food 4.6%
Home Furnishings 4.2%
Import & Export 0.5%
Insurance 6.3%
Machinery 2.7%
Mining 5.9%
Office/Business Equipment 1.6%
Oil & Gas 13.5%
Pharmaceuticals 4.1%
Retail 2.6%
Software 2.2%
Telecommunications 5.7%
Transportation 1.5%
------
TOTAL COMMON STOCKS 98.4%
------
TOTAL INVESTMENTS IN SECURITIES 98.4%
Other Assets less Liabilities 1.6%
------
NET ASSETS 100.0%
======
20 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
PURISIMA FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 28, 2005 (UNAUDITED)
TOTAL RETURN PURE AMERICAN PURE FOREIGN
FUND FUND FUND
------------ ------------- ------------
ASSETS
Investments in securities,
at cost $ 271,490,977 $ 2,226,714 $ 3,359,731
============= ============= =============
Investments in securities,
at value $ 326,414,936 $ 2,622,098 $ 4,315,361
Receivables:
Securities sold -- -- 92,903
Dividends and interest 662,142 4,264 7,704
Fund shares sold 276,990 32,924 49,386
Other assets 70,410 -- --
------------- ------------- -------------
Total Assets 327,424,478 2,659,286 4,465,354
------------- ------------- -------------
LIABILITIES
Cash overdraft -- -- 72,710
Payables for fund shares 389,501 -- --
redeemed
Accrued advisory fees (Note 3) 253,179 2,993 4,953
Accrued distribution fees 230,732 -- --
(Note 4)
Accrued administration fees 21,197 -- --
(Note 3)
Accrued transfer agent fees 25,850 -- --
Other accrued expenses 77,973 -- --
------------- ------------- -------------
Total Liabilities 998,432 2,993 77,663
------------- ------------- -------------
NET ASSETS $ 326,426,046 $ 2,656,293 $ 4,387,691
============= ============= =============
Number of shares issued
and outstanding
(unlimited shares authorized,
$0.01 par value) 17,471,311 203,521 230,096
============= ============= =============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 18.68 $ 13.05 $ 19.07
============= ============= =============
COMPONENTS OF
NET ASSETS
Paid-in capital $ 282,955,555 $ 2,463,020 $ 3,710,112
Accumulated net
investment income 550,951 8,050 (26,668)
Accumulated net realized
loss on investments (12,004,419) (210,161) (251,383)
Net unrealized appreciation
on investments 54,923,959 395,384 955,630
------------- ------------- -------------
Net assets $ 326,426,046 $ 2,656,293 $ 4,387,691
============= ============= =============
See accompanying Notes to Financial Statements. 21
- --------------------------------------------------------------------------------
PURISIMA FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2005 (UNAUDITED)
TOTAL RETURN PURE AMERICAN PURE FOREIGN
FUND FUND FUND
------------ ------------- -----------
INVESTMENT INCOME
Income
Dividends (net of foreign
taxes witheld of $136,986,
$0, and $2,407, respectively) $ 2,892,421 $ 27,316 $ 30,892
Interest & other income 5,964 84 256
----------- ----------- -----------
Total income 2,898,385 27,400 31,148
----------- ----------- -----------
Expenses
Advisory fees 1,566,732 19,350 29,209
Distribution fees 391,683 -- --
Administration fees 127,926 -- --
Transfer agent fees 64,782 -- --
Fund accounting fees 43,639 -- --
Custody fees 30,944 -- --
Insurance expense 31,858 -- --
Reports to shareholders 16,581 -- --
Registration fees 12,470 -- --
Audit fees 9,421 -- --
Legal fees 8,107 -- --
Trustee fees 1,653 -- --
Miscellaneous 207 -- --
----------- ----------- -----------
Total expenses 2,306,003 19,350 29,209
Add: expenses recouped
by Adviser (Note 3) 44,095 -- --
----------- ----------- -----------
Net expenses 2,350,098 19,350 29,209
----------- ----------- -----------
NET INVESTMENT INCOME 548,287 8,050 1,939
----------- ----------- -----------
CHANGE IN REALIZED AND
UNREALIZED GAIN ON
INVESTMENTS
Net realized gain on 253,361 20,001 31,860
investments
Net unrealized appreciation
on investments 37,957,132 259,956 671,893
----------- ----------- -----------
Net realized and unrealized
gain on investments 38,210,493 279,957 703,753
----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $38,758,780 $ 288,007 $ 705,692
=========== =========== ===========
22 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
PURISIMA FUNDS
STATEMENT OF CHANGES IN NET ASSETS
TOTAL RETURN FUND
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
------------------ ---------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income $ 548,287 $ 1,193,740
Net realized gain on investments
Securities 251,442 1,326,029
Other 1,919 --
Net unrealized appreciation on 37,957,132 18,232,293
------------- -------------
investments
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 38,758,780 20,752,0620
------------- -------------
DISTRIBUTION TO SHAREHOLDERS
From net investment income (1,194,233) (1,073,580)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,194,233) (1,073,580)
------------- -------------
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net
assets derived from net change
in outstanding shares (a) (9,760,719) 34,807,495
------------- -------------
TOTAL INCREASE IN NET ASSETS 27,803,828 54,485,977
NET ASSETS
Beginning of period 298,622,218 244,136,241
------------- -------------
END OF PERIOD $ 326,426,046 $ 298,622,218
============= =============
Accumulated net investment income $ 550,951 $ 1,196,897
============= =============
(a) A summary of capital share transactions is as follows:
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
------------------------- --------------------------
SHARES VALUE SHARES VALUE
Shares sold 1,394,478 $ 24,833,089 5,098,409 $ 85,836,402
Shares issued on
reinvestment
of distributions 63,323 1,149,948 62,124 1,035,611
Shares redeemed (1,998,046) (35,743,756) (3,094,870) (52,064,518)
---------- ------------ ---------- ------------
Net increase (decrease) (540,245) $ (9,760,719) 2,065,663 $ 34,807,495
========== ============ ========== ============
- -----------
* Unaudited.
See accompanying Notes to Financial Statements. 23
- --------------------------------------------------------------------------------
PURISIMA FUNDS
STATEMENT OF CHANGES IN NET ASSETS
PURE AMERICAN FUND
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
----------------- ---------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income $ 8,050 $ 4,631
Net realized gain on investments
Securities 20,001 4,726
Net unrealized appreciation on 259,956 217,852
investments
----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 288,007 227,209
----------- -----------
DISTRIBUTION TO SHAREHOLDERS
From net investment income (4,632) (12,757)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,632) (12,757)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived
from net change in outstanding
shares (a) (199,097) (461,116)
----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 84,278 (246,664)
NET ASSETS
Beginning of period 2,572,015 2,818,679
----------- -----------
END OF PERIOD $ 2,656,293 $ 2,572,015
=========== ===========
Accumulated net investment income $ 8,050 $ 4,632
=========== ===========
(a) A summary of capital share transactions is as follows:
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
------------------ ---------------------
SHARES VALUE SHARES VALUE
------ ----- ------ -----
Shares sold 5,796 $ 75,263 22,297 $ 257,872
Shares issued on
reinvestment
of distributions 358 4,631 1,094 12,756
Shares redeemed (22,250) (278,991) (61,309) (731,744)
------- --------- ------- ---------
Net increase (decrease) (16,096) $(199,097) (37,918) $(461,116)
======= ========= ======= =========
* Unaudited.
24 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
PURISIMA FUNDS
STATEMENT OF CHANGES IN NET ASSETS
PURE FOREIGN FUND
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
----------------- ---------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment income $ 1,939 $ 66,706
Net realized gain on investments
Securities 31,860 82,432
Net unrealized appreciation on 671,893 312,226
investments
----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 705,692 461,364
----------- -----------
DISTRIBUTION TO SHAREHOLDERS
From net investment income (70,648) (79,025)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (70,648) (79,025)
----------- -----------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived
from net change in outstanding
shares (a) 351,025 293,757
----------- -----------
TOTAL INCREASE IN NET 986,069 676,096
ASSETS
NET ASSETS
Beginning of period 3,401,622 2,725,526
----------- -----------
END OF PERIOD $ 4,387,691 $ 3,401,622
=========== ===========
Accumulated net investment $ (26,668) $ 42,041
income (loss)
=========== ===========
(a) A summary of capital share transactions is as follows:
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2005* AUGUST 31, 2004
-------------------- ---------------------
SHARES VALUE SHARES VALUE
------ ----- ------ -----
Shares sold 23,964 $ 434,701 36,377 $ 591,470
Shares issued on
reinvestment
of distributions 3,917 70,357 5,041 78,733
Shares redeemed (8,263) (154,033) (24,217) (376,446)
------ --------- ------- ---------
Net increase 19,618 $ 351,025 17,201 $ 293,757
====== ========= ======= =========
- --------
* Unaudited.
See accompanying Notes to Financial Statements. 25
- --------------------------------------------------------------------------------
PURISIMA FUNDS
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Semi-Annual Report.
TOTAL RETURN FUND
----------------------------------------------------------------------
SIX YEAR ENDED AUGUST 31,
MONTHS ENDED -----------------------------------------------------
FEB. 28, 2005++ 2004 2003 2002 2001 2000
--------------- ---- ---- ---- ---- ----
Net asset value,
beginning of period $ 16.58 $ 15.31 $ 14.06 $ 18.73 $ 19.65 $ 17.46
------- ------- ------- ------- ------- -------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment 0.03 0.07 0.07 0.09 0.31^ (0.01)
income (loss)
Net realized and
unrealized
gain (loss) on 2.14 1.27 1.34 (2.91) (0.61)^ 2.22
investments
------- ------- ------- ------- ------- -------
Total from
investment
operations 2.17 1.34 1.41 (2.82) (0.30)^ 2.21
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment (0.07) (0.07) (0.05) (0.19) -- (0.02)
income
From net realized -- -- (0.11) (1.66) (0.62) --
gain
------- ------- ------- ------- ------- -------
Total distributions (0.07) (0.07) (0.16) (1.85) (0.62) (0.02)
------- ------- ------- ------- ------- -------
Net asset value, $ 18.68 $ 16.58 $ 15.31 $ 14.06 $ 18.73 $ 19.65
======= ======= ======= ======= ======= =======
end of period
Total return 13.08%** 8.72% 10.22% (16.72%) (1.33%) 12.64%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (millions) $ 326.4 $ 298.6 $ 244.1 $ 181.6 $ 122.4 $89.8
RATIO OF EXPENSES TO
AVERAGE NET ASSETS:
Before fees waived
and
expenses absorbed
or recouped 1.47%* 1.49% 1.56% 1.51%+ 1.61%+ 1.62%
After fees waived
and
expenses absorbed
or recouped 1.50%* 1.50% 1.50% 1.50%+ 1.50%+ 1.50%
RATIO OF NET
INVESTMENT
INCOME (LOSS) TO
AVERAGE
NET ASSETS # 0.35%* 0.42% 0.55% 1.03% 1.68% (0.04%)
Portfolio turnover 2.21%** 19.50% 12.57% 60.76% 105.90% 38.42%
rate
<FN>
- ----------
* Annualized.
** Not annualized.
++ Unaudited.
# Net of fees waived.
^ Calculations are based on average shares outstanding for the period.
+ With dividend expense on securities sold short, which was 0.10% for 2002
and 0.05% for 2001. Otherwise, ratio of net expenses to average net assets
would be 1.50% for 2002 and 2001.
</FN>
26 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
PURISIMA FUNDS
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Semi-Annual Report.
PURE AMERICAN FUND
----------------------------------------------------------------------
SIX YEAR ENDED AUGUST 31,
MONTHS ENDED -----------------------------------------------------
FEB. 28, 2005++ 2004 2003 2002 2001 2000
--------------- ---- ---- ---- ---- ----
Net asset value,
beginning of period $ 11.71 $ 10.94 $ 10.21 $ 12.45 $ 13.49 $ 13.00
--------- --------- --------- --------- ---------- ---------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment 0.04 0.02 0.05 0.43 0.28^ (0.03)
income (loss)
Net realized and
unrealized
gain (loss) on 1.32 0.80 0.84 (2.07) (0.02)^ 0.52
investments
--------- --------- --------- --------- ---------- ---------
Total from
investment
operations 1.36 0.82 0.89 (1.64) 0.26^ 0.49
--------- --------- --------- --------- ---------- ---------
LESS DISTRIBUTIONS:
From net (0.02) (0.05) (0.16) (0.58) (0.28) --
investment income
From net realized -- -- -- (0.02) (1.02) (0.00)++
gain
--------- --------- --------- --------- ---------- ---------
Total distributions (0.02) (0.05) (0.16) (0.60) (1.30) (0.00)++
--------- --------- --------- --------- ---------- ---------
Net asset value, $ 13.05 $ 11.71 $ 10.94 $ 10.21 $ 12.45 $ 13.49
end of period
========= ========= ========= ========= ========== =========
Total return 11.64%** 7.49% 8.91% (13.90%) 1.96% (13.79%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (millions) $ 2.7 $ 2.6 $ 2.8 $ 2.6 $ 4.5 $ 1.1
RATIO OF EXPENSES
TO
AVERAGE NET ASSETS:
Before fees waived 1.50%* 1.50% 1.50% 1.56%+ 1.58%+ 1.50%
After fees waived n/a n/a n/a 1.19%+(1) 0.08%+ n/a
RATIO OF NET
INVESTMENT
INCOME (LOSS) TO
AVERAGE
NET ASSETS # 0.62%* 0.16% 0.52% 1.35% 4.09% (0.13%)
Portfolio turnover 1.10%** 34.99% 31.47% 75.54% 265.29% 45.48%
rate
<FN>
- ----------
* Annualized.
** Not annualized.
++ Unaudited.
++ Amount represents less than $0.01 per share.
^ Calculations are based on average shares outstanding for the period.
+ With dividend expense on securities sold short, which was Otherwise, 0.06%
for 2002 and 0.08% for 2001. ratio of expenses (before fees waived) to
average net assets would be 1.50% for 2002 and 2001.
1 The Adviser voluntarily waived all of its management fees for the period
December 21, 2000 to December 1, 2001.
</FN>
See accompanying Notes to Financial Statements. 27
- --------------------------------------------------------------------------------
PURISIMA FUNDS
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Semi-Annual Report.
PURE FOREIGN FUND
----------------------------------------------------------------------
SIX YEAR ENDED AUGUST 31,
MONTHS ENDED -----------------------------------------------------
FEB. 28, 2005++ 2004 2003 2002 2001 2000
--------------- ---- ---- ---- ---- ----
Net asset value,
beginning of period $ 16.16 $ 14.10 $ 13.07 $ 15.37 $ 16.39 $ 13.52
--------- --------- --------- --------- ---------- ---------
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment (0.12) 0.35 0.28 0.84 0.33^ 0.01
income (loss)
Net realized and
unrealized
gain (loss) on 3.34 2.14 1.21 (2.47) (0.45)^ 3.69
investments
--------- --------- --------- --------- ---------- ---------
Total from
investment
operations 3.22 2.49 1.49 (1.63) (0.12)^ 3.70
--------- --------- --------- --------- ---------- ---------
LESS DISTRIBUTIONS:
From net (0.31) (0.43) (0.46) (0.67) (0.35) (0.03)
investment income
From net realized -- -- -- -- (0.55) (0.80)
gain
--------- --------- --------- --------- ---------- ---------
Total distributions (0.31) (0.43) (0.46) (0.67) (0.90) (0.83)
--------- --------- --------- --------- ---------- ---------
Net asset value, $ 19.07 $ 16.16 $ 14.10 $ 13.07 $ 15.37 $ 16.39
end of period
========= ========= ========= ========= ========== =========
Total return 20.04%** 17.76% 10.95% (11.14%) (0.45%) 28.04%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (millions) $ 4.4 $ 3.4 $ 2.7 $ 3.4 $ 8.9 $ 2.8
RATIO OF EXPENSES
TO
AVERAGE NET ASSETS:
Before fees waived 1.50%* 1.50% 1.50% 1.50%+ 1.50%+ 1.50%
After fees waived n/a n/a n/a 1.07%+ 0.00%+ n/a
RATIO OF NET
INVESTMENT
INCOME TO AVERAGE
NET ASSETS 0.10%* 2.09% 2.06% 4.02% 4.21% 0.26%
Portfolio turnover 3.62%** 34.02% 22.02% 69.59% 258.66% 51.60%
rate
<FN>
- --------
* Annualized.
** Not annualized.
++ Unaudited.
^ Calculations are based on average shares outstanding for the period.
+ With dividend expense on securities sold short, which was 0.05% for 2002
and 0.08% for 2001. Otherwise, ratio of expense average net assets would be
1.50% for 2002 (before fees waived) to and 2001.
1 The Adviser voluntarily waived all of its management fees for the period
December 21, 2000 to December 1, 2001.
</FN>
28 See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
PURISIMA FUNDS
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2005 (UNAUDITED)
NOTE 1 - ORGANIZATION
The Purisima Funds (the "Trust") was organized as a Delaware business trust on
June 27, 1996 and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act") as an open-end management investment company issuing
its shares in series. Each series represents a distinct portfolio with its own
investment objectives and policies. The Trust consists of three diversified
series (the "Funds"): Purisima Total Return Fund (the "Total Return Fund"),
representing the initial series of the Trust which commenced operations on
October 28, 1996, and Purisima Pure American Fund (the "Pure American Fund") and
Purisima Pure Foreign Fund (the "Pure Foreign Fund") both of which commenced
operations on September 29, 1998. Fisher Asset Management, LLC (formerly, Fisher
Investments, Inc.) (the "Adviser") serves as the investment adviser to the
Funds.
The investment objectives of the Funds are as follows:
The Total Return Fund seeks to produce a high level of total return. It invests
primarily in common stocks and other equity-type securities, or securities
acquired primarily to produce income, or a combination of both depending on the
assessment of market conditions.
The Pure American Fund seeks to provide investors with a high level of total
return. The Fund may emphasize investments in common stocks and other
equity-type securities acquired primarily to produce income, or a combination of
both, depending on the assessment of market conditions by the Fund's Investment
Adviser. The Fund will concentrate its portfolio holdings to those securities
issued by issuers domiciled in the United States.
The Pure Foreign Fund seeks to provide investors with a high level of total
return. The Fund may emphasize investments in common stocks and other
equity-type securities acquired primarily to produce income, or a combination of
both, depending on the assessment of market conditions by the Fund's Investment
Adviser. Under normal market conditions, the Fund will concentrate its portfolio
holdings to those securities issued by issuers domiciled outside of the United
States.
29
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with accounting principles generally accepted in the
United States of America.
A. Security Valuation. Investments in securities traded on a national
securities exchange are valued at the last sales price on the business
day as of which such value is being determined. Investments in
securities traded on the Nasdaq Stock Market, Inc. ("Nasdaq") will be
valued at the Nasdaq Official Closing Price, which may not necessarily
represent the last sale price. Securities traded on an exchange or
Nasdaq for which there have been no sales and other over-the- counter
securities are valued at the closing bid. Securities for which
quotations are not readily available are valued at their respective
fair values as determined in good faith by the Board of Trustees or
their designee, taking into consideration:
(I) fundamental analytical data relating to the investment; (II) the
nature and duration of restrictions on disposition of the securities;
and (III) an evaluation of the forces which influence the market in
which these securities are purchased and sold. Debt securities with
remaining maturities of 60 days or less are valued at cost which, when
combined with accrued interest, approximates market value. Discounts
and Premiums on securities purchased are amortized over the lives of
the respective securities using the straight-line method.
B. Federal Income and Excise Taxes. The Funds intend to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of their
income to its shareholders. Therefore, no federal income or excise tax
provision is required.
The Funds may be subject to foreign taxes on income, gains on
investments or currency repatriation, a portion of which may be
recoverable. The Funds will accrue such taxes and recoveries as
applicable based upon their current interpretations of the tax rules
and regulation that exist in the markets in which they invest.
As of August 31, 2004, the Total Return Fund has a capital loss
carryforward available to offset future capital gains, if any, of
$11,958,728, of which $11,619,847 expires in 2011 and $338,881 expires
in 2012. The Pure American Fund has a capital loss carryforward
available to offset future capital gains, if any, of $205,896, of
which $174,478 expires in 2012, $19,013 expires in 2011 and $12,405
expires in 2010, and the Pure Foreign Fund has a capital loss
30
- --------------------------------------------------------------------------------
carryforward available to offset future capital gains, if any, of
$280,093, of which $135,135 expires in 2012, $144,188 expires in 2011
and $770 expires in 2010. In addition, the Pure American Fund had net
realized capital losses of $9,421 during the period November 1, 2003
through August 31, 2004, which are treated for federal income tax
purposes as arising during the Fund's tax year ending August 31, 2005.
These "post-October" losses may be utilized in future years to offset
net realized capital gains prior to distributing such gains to
shareholders.
C. Security Transactions, Investment Income and Distributions. Security
transactions are accounted for on the trade date. Dividend income and
distributions to shareholders are recorded on the ex-dividend date and
interest income is recognized on the accrual basis. Realized gains and
losses are evaluated on the bases of identified costs.
D. Use of estimates. The presentation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. Actual results could
differ from those estimates and assumptions.
E. Concentration of Risk. Investments in securities of non-U.S. issues in
certain countries involve special investment risks. These risks may
include but are not limited to, investment restrictions, adverse
political, social and economic developments, government involvement in
the private sector, limited and less reliable investor information,
lack of liquidity, certain local tax law considerations, and limited
regulation of the securities markets.
F. Options. Exchange traded options are valued at the last reported sale
price at the close of the exchange on which the security is primarily
traded. Certain markets are not closed at the time that a Fund prices
portfolio securities. In these situations, snapshot prices are
provided by the individual pricing services or other alternate sources
at the close of the NYSE as appropriate. If no sales are reported, the
mean between the last reported bid and asked prices will be used. Non-
exchange traded options will also be valued at the mean between bid
and asked prices. "Fair value" of other private options are valued
after consulting with the Adviser using a mathematical model.
Options purchased are recorded as investments; options written (sold)
are accounted for as liabilities. When an option expires, the premium
(original option value) is realized as a gain if the option was
31
- --------------------------------------------------------------------------------
written or as a loss if the option was purchased. When the exercise of
an option result in a cash settlement, the difference between the
premium and the settlement proceeds is realized as a gain or loss.
When securities are acquired or delivered upon exercise of an option,
the acquisition cost or sale proceeds are adjusted by the amount of
the premium. When an option is closed, the difference between the
premium and the cost to close the position is realized as a gain or
loss. The Trust may purchase options which are included in the Trust's
Schedules of Investments and subsequently marked to market to reflect
the current value of the option. At February 28, 2005, the Trust had
no options outstanding.
G. Securities Sold Short. To the extent the Funds engage in selling
securities short, they are obligated to replace a security borrowed by
purchasing the same security at the current market value. The Funds
would incur a loss if the price of the security increases between the
date of the short sale and the date on which the Funds replace the
borrowed security. The Funds would realize a gain if the price of the
security declines between those dates.
The Funds are required to establish a margin account with the broker
lending the security sold short. While the short sale is outstanding,
the broker retains the proceeds of the short sale and the Funds must
also maintain a deposit with the broker consisting of cash having a
value equal to a specified percentage of the value of the securities
sold short.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS
The Total Return Fund (the "Fund") has an Investment Management Agreement with
the Adviser to provide investment advisory services to the Fund. The Adviser
furnishes all investment advice, office space, facilities, and most of the
personnel needed by the Funds. As compensation for its services, the Adviser is
entitled to a monthly fee at the annual rate of 1.00% of the Fund's average
daily net assets.
The Fund is responsible for its own operating expenses. The Adviser has agreed
to limit the Fund's total expenses (exclusive of brokerage, interest, taxes,
dividends on securities sold short and extraordinary expenses) to not more than
1.50% of the average daily net assets.
Any fee withheld or voluntarily reduced and/or any Fund expense absorbed by the
Adviser pursuant to an agreed upon expense cap shall be reimbursed by the Fund
to the Adviser, if so requested by the Adviser, anytime before the end of the
third fiscal year following the year to which the fee reduction, waiver, or
expense absorption relates, provided the aggregate amount of the Fund's current
operating expenses for such fiscal
32
- --------------------------------------------------------------------------------
year does not exceed the applicable limitation on Fund expenses. Any such
reimbursement is also contingent upon Board of Trustees review and approval
prior to the time the reimbursement is also initiated. The Fund must pay its
current ordinary operating expenses before the Adviser is entitled to any
reimbursement of fees and/or expenses. For the six months ended February 28,
2005, the Adviser recouped fees previously waived and expenses absorbed of
$44,095.
At February 28, 2005, the cumulative unreimbursed amount paid and/or waived by
the Adviser on behalf of the Fund is $51,712 which the Adviser may recapture no
later than August 31, 2006.
The Pure American and Pure Foreign Funds have a Comprehensive Management
Agreement with the Adviser to provide advisory and other ordinary services,
including administration, transfer agency, custody and auditing services. For
providing these services, the Pure American and Pure Foreign Funds each pay the
Adviser a monthly fee at the annual rate of 1.50% of the respective Funds'
average daily net assets. This comprehensive fee arrangement requires the
Adviser to absorb and pay out of its own resources all operating expenses of the
Pure American and Pure Foreign Funds.
U.S. Bancorp Fund Services, LLC (the "Administrator") acts as the Trust's
Administrator under an Administration Agreement. The Administrator prepares
various federal and state regulatory filings, reports and returns for the Funds;
prepares reports and materials to be supplied to the trustees; monitors the
activities of the Funds' custodian, transfer agent and accountants; coordinates
the preparation and payment of Fund expenses and reviews the Funds' expense
accruals.
For its services, the Administrator receives a monthly fee based on the value of
the total average net assets of the Trust at an annual rate of 0.10% of the
first $200 million of such net assets, 0.05% of the next $300 million, and 0.03%
thereafter, subject to a minimum fee of $40,000 per Fund. The Pure American and
Pure Foreign Funds' administration fees are paid by the Adviser under the
Comprehensive Management Agreement.
NOTE 4 - SERVICE AND DISTRIBUTION PLAN
The Trust has adopted a Service and Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act. Under the Plan, the Total Return Fund is
authorized to pay expenses incurred for the purpose of financing activities,
including the employment of other dealers, intended to result in the sale of
shares of the Fund. The fee accrues at an annual rate not to exceed 0.25% of the
Fund's average daily net assets. For the six months ended February 28, 2005, the
Fund incurred $391,683 in distribution fees. Quasar Distributors, LLC, an
affiliate of the Administrator, serves as distributor of the Funds pursuant to a
Distribution Agreement with the Trust.
33
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NOTE 5 - INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of securities, excluding U.S.
Government securities and short-term investments, for the six months ended
February 28, 2005 were as follows:
FUND PURCHASES SALES
---- --------- -----
Total Return Fund $ 6,927,738 $17,456,028
Pure American Fund 28,445 247,270
Pure Foreign Fund 373,036 141,041
NOTE 6 - DISTRIBUTION TO SHAREHOLDERS
The difference between the book and tax basis components of the distributable
earnings relate principally to the timing of recognition of income and gains for
federal income tax purposes. Short-term gains distributions reported in the
Statements of Changes of Net Assets, if any, are reported as ordinary income for
federal tax purposes.
As of February 28, 2005, the components of distributable earnings on a tax basis
were as follows:
TOTAL RETURN PURE AMERICAN PURE FOREIGN
------------ ------------- ------------
Cost of investments
for tax purposes $ 271,790,029 $ 2,241,238 $ 3,362,881
------------- ------------- -------------
Gross tax unrealized
appreciation $ 65,639,073 $ 475,984 $ 1,015,640
Gross tax unrealized
depreciation $ (11,014,166) $ (95,124) $ (63,160)
------------- ------------- -------------
Net tax unrealized
appreciation $ 54,624,907 $ 380,860 $ 952,480
------------- ------------- -------------
34
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NOTE 7 - PROXY VOTING PROCEDURES
The Adviser votes proxies relating to portfolio securities in accordance with
procedures that have been approved by the Trust's Board of Trustees. You may
obtain a description of these procedures, free of charge, by calling toll-free
800-841-0199. This information is also available through the Securities and
Exchange Commission's website at http://www.sec.gov.
NOTE 8 - FORM N-Q DISCLOSURE
Beginning with its first and third fiscal quarters ending on or after July 9,
2004, Purisima Funds will file the Funds' complete schedules of portfolio
holdings with the SEC on form N-Q. The Funds' Form N-Q will be available without
charge, upon request, by calling 1-800-841-0199. Furthermore, you can obtain the
Form N-Q on the SEC's website at www.sec.gov.
35
- --------------------------------------------------------------------------------
OTHER INFORMATION - TRUSTEES AND
OFFICER INFORMATION (UNAUDITED)
Position(s) Held
Name, Address, Age with Trust Year Elected(1)
- --------------------------------------------------------------------------------
Kenneth L. Fisher* (54) President and Trustee 1996
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
Michelle Bryan Senior Vice President 2004
Oroschakoff* (44) and Chief
Fisher Investments, Inc. Compliance Officer
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
Rita Dam (38) Treasurer 2004
615 E. Michigan Street
Milwaukee, WI 53202
- --------------------------------------------------------------------------------
Joy Ausili (38) Secretary 2004
615 E. Michigan Street
Milwaukee, WI 53202
- --------------------------------------------------------------------------------
Pierson E. Clair III (56) Trustee 1996
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
Bryan F. Morse (52) Trustee 1996
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
36
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex Other
Principal Occupation(s) Overseen by Directorships
During Past Five Years Director Held
- --------------------------------------------------------------------------------
Chief Executive Officer and majority 3 None
shareholder of the Adviser, and has served
in such capacities since the incorporation
of the Adviser in 1986. Prior thereto, he
was the founder of Fisher Investments,
a sole proprietorship which commenced
operations in 1978.
- --------------------------------------------------------------------------------
Senior Vice President and Chief Legal N/A None
Officer of the Adviser. Executive
Director/Senior Vice President of Morgan
Stanley from 2001 to 2004, Vice President
& Compliance Manager of Morgan Stanley
Dean Witter from 1999 to 2001.
From 1994 to Present, Vice President N/A None
of U.S. Bancorp Fund Services, LLC.
- --------------------------------------------------------------------------------
From 1997 to Present, Vice President N/A None
of U.S. Bancorp Fund Services, LLC.
- --------------------------------------------------------------------------------
President and Chief Executive Officer 3 Signature
of Brown & Haley since 1998 Foods, Inc.
(fine confectioners); Vice President of
Blummer Chocolate Company from 1980
to 1997, where he had been employed
since 1970.
- --------------------------------------------------------------------------------
Sole proprietor of Bryan F. Morse, RIA, 3 None
a registered investment adviser
since 1990.
- --------------------------------------------------------------------------------
37
- --------------------------------------------------------------------------------
Position(s) Held
Name, Address, Age with Trust Year Elected(1)
- --------------------------------------------------------------------------------
Grover T. Wickersham (55) Trustee 1996
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
Scott LeFevre (47) Trustee 2001
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062
- --------------------------------------------------------------------------------
Alfred D. McKelvy, Jr. (55) Trustee 2003
Fisher Investments, Inc.
13100 Skyline Blvd.
Woodside, CA 94062:
- --------------------------------------------------------------------------------
- -------
1 Trustees and officers of the Funds serve until their resignation, removal
or retirement.
* "Interested person" of the Trust, as defined in the 1940 Act.
38
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex Other
Principal Occupation(s) Overseen by Directorships
During Past Five Years Director Held
- --------------------------------------------------------------------------------
Attorney in private practice in Palo Alto, 3 None
California. Prior to entering private
practice in June of 1981, served
as a Branch Chief of the Los Angeles
Regional Office of the U.S.
Securities and Exchange Commission.
- --------------------------------------------------------------------------------
Sole proprietor of LeFevre 3 None
Capital Management.
- --------------------------------------------------------------------------------
Executive Director of the law firm 3 Diablo
of Berding & Weil, LLP since 1990. Valley Bank;
East Bay
BOMA.
- --------------------------------------------------------------------------------
39
- --------------------------------------------------------------------------------
PRIVACY NOTICE
FISHER ASSET MANAGEMENT, LLC (formerly, Fisher Investments, Inc.) and
THE PURISIMA FUNDS may collect non-public information about you from the
following sources:
o Information we receive about you on applications or other forms;
o Information you give us orally; and
o Information about your transactions with us.
We do not disclose any non-public personal information about our shareholders or
former shareholders without the shareholder's authorization, except as required
by law or in response to inquiries from governmental authorities. We restrict
access to your personal and account information to those employees who need to
know that information to provide products and services to you. We also may
disclose that information to unaffiliated third parties (such as to brokers or
custodians) only as permitted by law and only as needed for us to provide agreed
services to you. We maintain physical, electronic and procedural safeguards to
guard your non-public personal information.
40
This page is intentionally left blank.
ITEM 2. CODE OF ETHICS.
NOT APPLICABLE FOR SEMI-ANNUAL REPORTS.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
NOT APPLICABLE FOR SEMI-ANNUAL REPORTS.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
NOT APPLICABLE FOR SEMI-ANNUAL REPORTS.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASES.
Not applicable to open-end investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant's President/Chief Executive Officer and Treasurer/Chief
Financial Officer have concluded that the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940 (the "1940 Act")) are effective as of a date within 90 days of
the filing date of the report that includes the disclosure required by this
paragraph, based on the evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act and Rules 15d-15(b) under the
Securities Exchange Act of 1934, as amended.
(b) There were no significant changes in the Registrant's internal controls
over financial reporting that occurred during the Registrant's last fiscal
half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable.
(2) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF
2002. Filed herewith.
(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23C-1 UNDER
THE ACT SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON
BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS. Not applicable to open-end
investment companies.
(B) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.
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) THE PURISIMA FUNDS
By (Signature and Title) /S/ KENNETH L. FISHER
----------------------
Kenneth L. Fisher, President
Date May 6, 2005
------------
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/ KENNETH L. FISHER
----------------------
Kenneth L. Fisher, President
Date May 6, 2005
------------
By (Signature and Title)* /S/ RITA DAM
------------
Rita Dam, Treasurer
Date May 9, 2005
-----------
* PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.