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, CALIFORNIA 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
---------

Date of reporting period: FEBRUARY 29, 2008
-----------------

ITEM 1. REPORT TO STOCKHOLDERS.

The Purisima Funds
- ----------------------------------------
SEMI-ANNUAL REPORT (UNAUDITED)
FEBRUARY 29, 2008
The Purisima Total Return Fund

^------------------------------------------------------------------------------

TABLE OF CONTENTS

A Letter to Our Shareholders 2

Sector Breakdown 5

Expense Example 5

Schedule of Investments 7

Statement of Assets and Liabilities 18

Statement of Operations 19

Statement of Changes in Net Assets 20

Financial Highlights 21

Notes to Financial Statements 22

Other Information 28

Trustees and Officer Information 32

Privacy Notice 36

- -------------------------------------------------------------------------------^

INVESTMENT OBJECTIVES

PURISIMA TOTAL RETURN FUND
Seeks to provide investors with a high level of total return by considering both
domestic and foreign securities.

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.

^-------------------------------------------------------------------------------

A LETTER TO OUR SHAREHOLDERS

Welcome to the semi-annual report for the Purisima Total Return Fund for the
six-month period ended February 29, 2008. The primary investment objective of
the Fund is achieving high total return for shareholders.

MARKET REVIEW AND OUTLOOK:

Global equities finished the period with mildly negative returns. The MSCI World
Index fell -6.14%. Though stocks delivered a fifth straight positive year
overall in 2007, increased volatility and a negative fourth quarter depressed
already low market sentiment. While the same old economic worries dominate
headlines, we expect remaining in stocks in 2008 will again be the optimal
decision but again anticipate higher volatility than in 2003-2006.

Despite 2008's rocky start, we remain confident global stocks should perform
fine overall. We see the recent downturn as merely a continuation of a
correction started last year rather than an indication of poor forward-looking
results. History simply doesn't support the belief a rocky start to the year
must lead to terrible annual returns.

While we have been correct since 2003 that stocks would both be positive and
offer better returns than most bond or cash alternatives, the top end of our
forecast ranges were consistently over-optimistic. And that was true in 2007
when we forecasted a +10% to +40% market return and the MSCI World ended +9%.
Perhaps in 2008 sentiment will catch up with fundamentals and stocks will enjoy
a roaring good year. But it's also quite possible the historically long stretch
of cheerless sentiment persists and ho-hum returns will continue. Either way, we
believe staying in stocks is the right course.

Today's investment environment reminds us of a decade ago (1997-98, not
2000-02). The parallels are numerous. Today foreign stocks in general are what
US stocks were then, the leaders. Emerging Markets now stand in for what Tech
did then, and subprime and the credit crunch for the Asian Contagion and Long
Term Capital Management. Where ten years ago it was believed an Asian Contagion
would lead to a global recession, today it's an American Contagion. However, if
stock market returns repeat 1998 as well, 2008 could be a spectacular year.

The bullish drivers we highlighted in 2007 should carry over into 2008. We
believe the global economy has the potential to outpace today's meager
expectations. Corporate earnings are trending higher, save for Financials and
Homebuilders. Global interest rates remain benign, and credit is quietly
plentiful in most economic sectors, particularly for investment grade companies.
Stock valuations remain near historic lows relative to bond yields, and equity
supply should continue to diminish as share buybacks and acquisitions carry on.
We believe all these are powerfully positive forces.

- -------------------------------------------------------------------------------^

Current market jitters seem based on the same old pessimistic stories of the
past year. Housing woes, subprime, a credit crunch, high oil prices, US dollar
weakness, global imbalances, all rippling to economic weakness--none are news
anymore. The stock market is a discounter of widely known information, so
without a powerful, new negative force emerging we find it highly unlikely a
bear market will materialize. Instead, our view is the stock market seems primed
for upside surprise, especially if the global economy led by non-US forces
remains as resilient as we expect.

In our opinion, it is stylistically very odd for a bear market to begin today.
Historically, large capitalization stocks have outperformed for an extended time
in the later stages of a bull following a period of small cap dominance. In this
cycle, the transition began in mid-2006 and became more pronounced in the second
half of 2007. If history repeats, large cap dominance will have much further to
run before the end of the bull market, as skeptics fixate on fewer and fewer
stocks beating the market. We will look to keep re-posturing the Fund seeking to
take advantage of this stylistic evolution.

Furthermore, 2008 is a fourth year of the US presidential election
cycle--historically very positive for stocks globally. It's still far too early
for us to predict the November election outcome. In the meantime, we believe
Washington will prove legislatively feckless again this year. We think feckless
is good.

FUND POSITIONING

We maintain our positive outlook for the global stock markets and continue to be
fully invested in equities.

For most investors, 2007 and early 2008 were difficult to navigate. Aside from
taking wild bets in narrow categories and getting lucky, success required making
a few big decisions correctly to beat equity benchmarks.

For the six-month period ending February 29, 2008, the Fund's stock selection in
the United States and United Kingdom and overweights to Hong Kong and Emerging
Markets helped returns. Our overweight to Japan was detrimental.

Stock selection within and an overweight to Energy and Materials boosted
returns. Also favorable were stock selection in Telecommunications Services and
underweights to Consumer Discretionary and Financials. Stock selection in
Healthcare and Tech and an underweight to Consumer Staples detracted from
returns.

CLOSING REMARKS

Though the Fund outperformed the MSCI World benchmark over the six-month period
ending February 29, 2008, markets were mired in a typical bull market correction
(Purisima Total Return Fund: -4.29% vs. MSCI World Index: -6.14%). If dour
sentiment in the short-term catches up with solid long-term fundamentals, we
believe the Fund has the potential to perform well on both an absolute and
relative basis in the upcoming period.

^-------------------------------------------------------------------------------

Thank you for your continued interest and support.

Sincerely,

/s/ KENNETH L. FISHER
- ---------------------
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.

FUND HOLDINGS AND SECTOR ALLOCATIONS ARE SUBJECT TO CHANGE AND ARE NOT
RECOMMENDATIONS TO BUY OR SELL ANY SECURITY.

MUTUAL FUND INVESTING INVOLVES RISK OF LOSS. PRINCIPAL LOSS IS POSSIBLE. THE
FUND MAY USE SHORT SALES OF SECURITIES, WHICH INVOLVE THE RISK THAT LOSSES MAY
EXCEED THE ORIGINAL AMOUNT INVESTED. 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. INVESTMENTS IN DEBT SECURITIES TYPICALLY DECREASE IN VALUE WHEN INTEREST
RATES RISE. THIS RISK IS GREATER FOR LONGER-TERM DEBT SECURITIES.

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. One cannot invest directly in
an index.

THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS.

FISHER INVESTMENTS IS THE ADVISER TO THE PURISIMA FUNDS. THE PURISIMA FUNDS
ARE DISTRIBUTED BY QUASAR DISTRIBUTORS, LLC 04/08

- -------------------------------------------------------------------------------^

SECTOR BREAKDOWN(1) (UNAUDITED)

PURISIMA TOTAL RETURN FUND
-------------------------------------------------------
Energy 20.3%
Financials 16.9%
Industrials 14.9%
Materials 13.3%
Information Technology 13.1%
Health Care 5.6%
Telecommunication Services 5.5%
Consumer Discretionary 3.6%
Utilities 3.2%
Consumer Staples 2.9%
Mutual Funds 0.7%
-------------------------------------------------------
Total 100.0%

- -----------
(1) Percentage of Total Investments as of February 29, 2008.

IMPORTANT INFORMATION

The following disclosure provides important information regarding the Fund's
Expense Example. Please refer to this information when reviewing the Expense
Example for the Fund.

EXPENSE EXAMPLE (UNAUDITED)

As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees; and other fund expenses. This Example is intended to help
you understand your ongoing costs (in dollars) of investing in the Fund 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, 2007 to
February 29, 2008, for the Total Return Fund.

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 Fund's actual expense ratios and assumed
rates of return of 5% per year before expenses, which are not the Fund's 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
Fund 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), or redemption 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.

ACTUAL HYPOTHETICAL PERFORMANCE
PURISIMA TOTAL RETURN FUND PERFORMANCE (5% RETURN BEFORE EXPENSES)
- --------------------------------------------------------------------------------
Beginning Account Value (09/01/07) $ 1,000.00 $ 1,000.00
Ending Account Value (02/29/08) $ 957.10 $ 1,017.80
Expenses Paid During Period(1) $ 6.91 $ 7.12
- --------------------------------------------------------------------------------
- ------------
(1) Expenses are equal to the Fund's expense ratio for the six month period of
1.42% for the Total Return Fund multiplied by the average account value
over the period, multiplied by 182/366 (to reflect the one-half year
period).

The accompanying notes are an integral part of these financial statements.
6

- -------------------------------------------------------------------------------^

PURISIMA TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008 (UNAUDITED)

SHARES VALUE
- --------------------------------------------------------------------------------

COMMON STOCKS: 99.0%

AUSTRALIA: 1.6%
103,900 BHP Billiton Ltd. - ADR $ 7,603,402
------------

BRAZIL: 3.9%
11,000 Companhia Energetica de Minas Gerais - ADR 209,330
15,300 Companhia Siderurgica Nacional SA - ADR 572,067
157,400 Companhia Vale do Rio Doce - ADR 5,483,816
27,100 Companhia Vale do Rio Doce 794,572
7,800 Empresa Brasileira de Aeronautica SA
(Embraer) - ADR 345,696
12,900 Gerdau SA - ADR 422,733
83,900 Petroleo Brasileiro SA - ADR 9,844,826
40,200 Weg SA 540,802
------------
18,213,842
------------
CANADA: 3.4%
80,000 Canadian National Railway Co. 4,222,400
70,000 Canadian Natural Resources Ltd. 5,238,800
80,500 EnCana Corp. 6,134,905
------------
15,596,105
------------
CAYMAN ISLANDS: 1.3%
650 Baidu.com - ADR (a) 163,365
41,906 Transocean, Inc. 5,888,212
------------
6,051,577
------------
CHINA: 3.3%
1,600 Aluminum Corp. of China Ltd. - ADR 77,920
12,000 Anhui Conch Cement Co. Ltd. 94,920
35,000 China Communications Construction Co. Ltd. 93,333
183,500 China Cosco Holdings Co. Ltd. 555,360
165,500 China Mobile Hong Kong Ltd. - ADR 12,349,610
86,000 China Oilfield Services Ltd. 172,413
4,750 China Petroleum & Chemical Corp. - ADR 519,840
4,550 CNOOC Ltd. - ADR 754,254
96,000 Datang International Power
Generation Co. Ltd. 66,128
458,000 Industrial & Commercial Bank of China Ltd. 326,079
90,000 Lenovo Group Ltd. 62,457
180,000 Shanghai Electric Co. Ltd. 131,392
------------
15,203,706
------------
CZECH REPUBLIC: 0.0%
3,000 Cez AS 223,571
------------

The accompanying notes are an integral part of these financial statements.
7

^-------------------------------------------------------------------------------

SHARES VALUE
- --------------------------------------------------------------------------------

DENMARK: 0.0%
3,900 Danske Bank AS $ 150,208
------------

FINLAND: 1.8%
5,600 Konecranes Oyj 205,739
230,900 Nokia Oyj - ADR 8,314,709
------------
8,520,448
------------
FRANCE: 3.4%
173,550 AXA - ADR 5,841,693
8,600 BNP Paribas SA 777,747
1,400 Bouygues SA 96,578
2,300 Dassault Systemes SA 126,366
700 Eramet 534,718
5,350 Groupe Danone - ADR 84,434
7,100 Publicis Groupe 258,584
2,550 Technip SA 209,590
100,708 Total SA - ADR 7,592,376
900 Vallourec SA 188,922
5,300 Vivendi Universal SA 210,970
------------
15,921,978
------------
GERMANY: 6.5%
3,300 Adidas AG 210,114
4,500 Allianz AG 802,717
70,400 BASF AG - ADR 9,020,162
2,400 Celesio AG 138,163
1,000 DaimlerChrysler AG 84,697
1,100 E.ON AG 207,655
123,800 E.ON AG - ADR 7,786,710
5,000 Rhoen Klinikum AG 144,983
500 Salzgitter AG 88,948
4,600 SAP AG 220,747
90,250 Siemens AG - ADR 11,521,315
2,400 Stada Arzneimittel AG 169,133
------------
30,395,344
------------
HONG KONG: 1.1%
253,800 Cheung Kong Holdings Ltd. - ADR 3,881,719
21,500 CLP Holdings Ltd. 169,927
32,000 Hang Lung Properties Ltd. 118,232
9,500 Hang Seng Bank Ltd. 183,253
7,200 MTR Corp. Ltd. - ADR 271,597
106,000 Sun Hung Kai Co. Ltd. 103,394
47,000 Weichai Power Co. Ltd. 240,397
------------
4,968,519
------------
INDIA: 0.2%
3,000 HDFC Bank Ltd. - ADR 327,330
18,300 Sterlite Industries India Ltd. - ADR (a) 381,555
------------
708,885
------------

The accompanying notes are an integral part of these financial statements.
8

- -------------------------------------------------------------------------------^

SHARES VALUE
- --------------------------------------------------------------------------------

INDONESIA: 0.5%
379,500 Bank Rakyat Tbk PT $ 301,423
881,900 Bumi Resources Tbk PT 749,104
560,000 International Nickel Indonesia Tbk PT 583,784
632,000 Medco Energi Internasional Tbk PT 287,590
11,500 Telekomunikasi Indonesia Tbk PT - ADR 490,590
------------
2,412,491
------------
ISRAEL: 0.1%
6,200 Teva Pharmaceutical Industries,
Ltd. - ADR 304,234
------------

ITALY: 1.3%
6,000 Banco Popolare Societa Cooperativa (a) 114,225
4,200 ENI SpA 146,142
126,532 Intesa Sanpaolo SpA - ADR 5,128,747
4,500 Italcementi SpA 92,296
4,300 Luxottica Group SpA 119,528
7,800 Saipem SpA 321,260
------------
5,922,198
------------
JAPAN: 6.0%
4,200 Aeon Co. Ltd. 51,787
16,000 Asics Corp. 190,817
5,300 Bridgestone Corp. 89,022
4,400 Canon, Inc. 204,139
11 Central Japan Railway Co. 105,881
19,000 Daiwa Securities Group, Inc. 180,874
22 East Japan Railway Co. 177,669
1,400 Electric Power Development Co. Ltd. 51,343
7,800 Fanuc Ltd. 744,788
94,800 Fujitsu Ltd. - ADR 3,433,030
4,500 Hitachi Construction Machinery Co. Ltd. 126,913
24,000 Hitachi Metals Ltd. 342,824
10,200 Hoya Corp. - ADR 262,581
1,400 Ibiden Co. Ltd. 68,457
55,000 IHI Corp. 110,117
22 Inpex Holdings, Inc. 251,997
8,800 Isetan Co. Ltd. 105,966
1,600 Japan Petroleum Exploration Co. 113,043
12,000 JGC Corp. 199,711
4,000 Kao Corp. 123,977
24 KDDI Corp. 147,849
15,400 Kobe Steel Ltd. - ADR 245,559
2,000 Komatsu Ltd. - ADR 209,788
5,800 Kyushu Electric Power Co., Inc. 147,108
5,600 Makita Corp. 203,754
194,800 Matsushita Electric Industrial Co.
Ltd. - ADR 4,084,956
6,100 Millea Holdings, Inc. - ADR 229,691

The accompanying notes are an integral part of these financial statements.
9

^-------------------------------------------------------------------------------

SHARES VALUE
- --------------------------------------------------------------------------------

JAPAN: 6.0% (CONTINUED)
9,000 Mitsubishi Estate Co. Ltd. $ 226,105
28,000 Mitsubishi Heavy Industries Ltd. 134,488
289,800 Mitsubishi UFJ Financial Group,
Inc. - ADR 2,553,138
7,400 Mitsubishi Corp. 232,919
585 Mitsui & Co. Ltd. - ADR 261,694
31,000 Mitsui Engineering & Shipbuilding Co. 97,574
Ltd.
8,000 Mitsui Fudosan Co. Ltd. 167,870
15,000 Mitsui OSK Lines Ltd. 200,837
54 Mizuho Financial Group, Inc. 231,822
3,300 Modec, Inc. 110,540
21,000 Nippon Mining Holdings, Inc. 127,346
40,000 Nippon Steel Corp. 215,613
360,000 Nissan Motor Co. Ltd. 3,340,456
153,400 Nomura Holdings, Inc. 2,488,007
3,000 Olympus Corporation 89,518
2,000 ORIX Corp. - ADR 148,040
3,700 Seven & I Holdings Co. Ltd. 93,666
4,400 Shin-Etsu Chemical Co. Ltd. 243,103
3,000 Shiseido Co. Ltd. 69,015
800 SMC Corp. 86,322
52,000 Sony Corp. 2,497,642
12,000 Sumitomo Metal Mining Co. Ltd. 260,468
39,400 Sumitomo Mitsui Financial Group,
Inc. - ADR 292,174
6,000 Sumitomo Realty & Development Co. Ltd. 105,573
8,300 Suzuki Motor Corp. 228,492
2,300 Terumo Corp. 126,634
2,400 Tokyo Electron Ltd. 152,469
21,000 Toshiba Corp. 161,103
6,000 Toyota Motor Corp. 332,082
379 Yahoo Japan Corp. 171,643
2,500 Yamanouchi Pharmaceutical Co. Ltd. 110,694
8,000 Yamato Transport Co. Ltd. 118,279
------------
27,878,967
------------
LUXEMBOURG: 0.1%
8,000 Tenaris SA - ADR 355,600
------------

MALAYSIA: 0.2%
81,900 Bumiputra-Commerce Holding BHD 269,197
13,200 Digi.com BHD 98,757
47,300 Genting BHD 101,426
335,600 MMC Corp. BHD 399,211
29,200 Telekom Malaysia BHD 104,204
------------
972,795
------------
The accompanying notes are an integral part of these financial statements.
10

- -------------------------------------------------------------------------------^

SHARES VALUE
- --------------------------------------------------------------------------------

MEXICO: 1.2%
72,100 America Movil SA de CV - ADR $ 4,359,166
68,700 Grupo Mexico SA de CV 480,002
17,700 Industrias Penoles SA de CV 426,486
6,000 Wal-Mart De Mexico SA de CV - ADR 218,542
------------
5,484,196
------------
NETHERLANDS: 3.1%
2,850 Heineken NV 161,775
122,827 ING Groep NV - ADR 4,091,367
119,500 Schlumberger Ltd. 10,330,775
2,600 TPG NV 103,061
------------
14,686,978
------------
NORWAY: 0.1%
9,500 Aker Kvearner ASA 229,136
5,100 Norsk Hydro ASA 73,073
12,100 Orkla ASA 152,248
3,700 Petroleum Geo - Services ASA 89,952
4,397 Statoil ASA 135,705
------------
680,114
------------
PHILIPPINES: 0.1%
8,900 Philippine Long Distance
Telephone - ADR 631,455
------------

POLAND: 0.2%
1,900 Bank Pekao SA - GDR 143,875
900 Bre Bank SA (a) 160,745
2,800 KGHM Polska Miedz SA - GDR 255,080
5,400 Polski Koncern Naftowy Orlen SA - GDR (a) 183,600
------------
743,300
------------
PORTUGAL: 0.0%
16,700 Jeronimo Martins 123,722
------------

RUSSIAN FEDERATION: 0.1%
1,400 OAO Gazprom - ADR 70,000
9,900 OAO Gazprom - Spon ADR 502,920
------------
572,920
------------
SOUTH KOREA: 1.3%
10,700 Daewoo Securities Co. Ltd. 269,480
3,900 Daewoo Shipbuilding & Marine
Engineering Co. Ltd. 158,027
4,700 Daweoo Shipbuilding & Marine
Engineering Co. Ltd. - GDR 144A 381,272
2,800 Dongkuk Steel Mill Co. Ltd 128,215
4,500 Doosan Infracore Co. Ltd. 143,523
1,050 GS Engineering & Construction Corp. 164,927
10,100 Hynix Semiconductor GDR 144A (a) 263,138
1,825 Hyundai Heavy Industries Co. Ltd. 741,428
5,200 Kookmin Bank - ADR 318,396
2,200 Korea Electric Power Corp. 77,898

The accompanying notes are an integral part of these financial statements.
11

^-------------------------------------------------------------------------------

SHARES VALUE
- --------------------------------------------------------------------------------

SOUTH KOREA: 1.3% (CONTINUED)
4,200 LG Chem Ltd. - GDR 144A $ 178,287
800 LG Electronics, Inc. 87,748
350 NHN Corp. (a) 79,575
4,625 POSCO - ADR 625,762
1,700 Samsung Electronics Co. Ltd. - GDR 144A 500,687
1,700 Samsung Fire & Marine Insurance Co. 339,439
3,500 Samsung Securities Co. Ltd. 249,720
3,100 Shinhan Financial Group Co. Ltd. - ADR 329,034
125 Shinsegae Co. Ltd. 78,537
4,600 SK Energy Co. Ltd. 639,263
2,400 Woori Finance Holdings Co. Ltd. - ADR 128,016
11,300 Woori Investment & Securities Co. Ltd. 262,931
------------
6,145,303
------------
SINGAPORE: 0.2%
30,000 Capitaland Ltd. 135,494
43,000 Cosco Corp. Singapore Ltd. 125,772
13,000 DBS Group Holdings Ltd. 161,603
8,500 ICICI Bank Ltd. - ADR 440,640
73,000 Singapore Telecommunications Ltd. 201,484
------------
1,064,993
------------
SOUTH AFRICA: 0.2%
2,550 Anglo Platinum Ltd. - ADR 407,152
15,300 MTN Group Ltd. 241,999
5,500 Sasol Ltd. - ADR 281,655
------------
930,806
------------
SPAIN: 2.8%
3,300 Banco Bilbao Vizcaya Argentaria SA 68,936
440,375 Banco Santander Central Hispano
SA - ADR 7,829,867
57,400 Telefonica SA - ADR 4,978,876
------------
12,877,679
------------
SWEDEN: 0.1%
4,500 Scania AB-B Shares 109,835
9,000 Volvo AB-B Shares 135,377
------------
245,212
------------
SWITZERLAND: 4.4%
290,000 Abb Ltd - ADR 7,261,600
3,100 Adecco SA 163,385
600 Affichage Holding 137,608
7,200 Banco Bradesco SA 226,008
149,700 Credit Suisse Group - ADR 7,323,324
1,800 Julius Baer Holding AG 134,268
1,700 Nestle SA 815,197
4,300 Roche Holding AG 845,841
107,350 UBS AG 3,471,699
------------
20,378,930
------------

The accompanying notes are an integral part of these financial statements.
12

- -------------------------------------------------------------------------------^

SHARES VALUE
- --------------------------------------------------------------------------------

TAIWAN: 0.4%
63,379 Advanced Semiconductor Engineering,
Inc. - ADR $ 292,811
5,500 China Life Insurance Co. Ltd. - ADR 319,440
36,740 Hon Hai Precision - GDR 441,247
35,641 Siliconware Precision Industries
Ltd. - ADR 291,544
57,800 Taiwan Semiconductor Manufacturing
Co. Ltd. - ADR 562,972
------------
1,908,014
------------
TURKEY: 0.1%
10,000 Turkcell Iletisim Hizmet AS - ADR 252,300
------------

UNITED KINGDOM: 5.8%
11,130 3i Group Plc 180,907
13,003 Anglo American Plc 835,586
120,000 Anglo American Plc - ADR 3,806,400
95,100 AstraZeneca Plc - ADR 3,578,613
14,500 BG Group Plc 343,441
8,500 BP Plc 92,219
79,200 Cadbury Schweppes Plc - ADR 3,552,120
88,250 GlaxoSmithKline Plc - ADR 3,875,057
80,000 Imagination Technologies Group Plc (a) 151,810
14,300 International Power Plc 108,047
19,250 Man Group Plc 212,291
21,750 Rio Tinto Plc - ADR 9,884,287
8,700 Schroders Plc 165,699
39,300 Vodafone Group Plc 127,054
------------
26,913,531
------------
UNITED STATES: 44.2%
5,000 AGCO Corp. (a) 324,300
9,600 Alexandria Real Estate Equities, Inc. 881,280
14,650 AMB Property Corp. 735,137
22,000 American Electric Power Co., Inc. 900,240
87,370 Ameriprise Financial, Inc. 4,424,417
138,650 Anadarko Petroleum Corp. 8,837,551
6,100 Apache Corp. 699,731
10,400 Archer-Daniels-Midland Co. 469,040
9,200 Asustek Computer Inc - GDR 129,260
30,100 AT&T, Inc. 1,048,383
82,850 Baker Hughes, Inc. 5,574,976
50 Berkshire Hathaway, Inc. (a) 233,725
4,000 Biogen Idec, Inc. (a) 233,440
16,900 Bristol-Myers Squibb Co. 382,109
22,550 Camden Property Trust 1,070,899
95,600 Caterpillar, Inc. 6,914,748
11,800 Chesapeake Energy Corp. 533,596
170,200 Cisco Systems, Inc. (a) 4,147,774
23,000 The Coca-Cola Co. 1,344,580

The accompanying notes are an integral part of these financial statements.
13

^-------------------------------------------------------------------------------

SHARES VALUE
- --------------------------------------------------------------------------------

UNITED STATES: 44.2% (CONTINUED)
87,400 Computer Sciences Corp. (a) $ 3,797,530
94,500 ConocoPhillips 7,816,095
5,000 Deere & Co. 426,050
68,000 Devon Energy Corp. 6,984,960
31,600 Edison International 1,561,040
287,150 EMC Corp. (a) 4,462,311
14,200 Essex Property Trust, Inc. 1,491,568
14,700 Exxon Mobil Corp. 1,279,047
52,600 FedEx Corp. 4,635,638
20,550 FirstEnergy Corp. 1,388,974
88,400 Freeport-McMoRan Copper & Gold, Inc. 8,916,024
117,750 General Electric Co. 3,902,235
47,900 Genzyme Corp. (a) 3,397,068
100,000 Gilead Sciences, Inc. (a) 4,732,000
44,425 Goldman Sachs Group, Inc. 7,535,813
122,100 Hewlett-Packard Co. 5,832,717
89,900 Honeywell International, Inc. 5,172,846
119,700 Illinois Tool Works, Inc. 5,873,679
310,700 Intel Corp. 6,198,465
5,550 Invitrogen Corp. (a) 468,920
4,900 Jacobs Engineering Group, Inc. (a) 393,421
17,350 Janus Capital Group, Inc. 420,217
12,300 Johnson & Johnson 762,108
112,075 KLA-Tencor Corp. 4,708,271
78,950 Lehman Brothers Holdings, Inc. 4,025,661
47,800 Lockheed Martin Corp. 4,932,960
8,500 MEMC Electronic Materials, Inc. (a) 648,380
122,800 Merck & Co., Inc. 5,440,040
29,300 Microsoft Corp. 797,546
81,400 Morgan Stanley 3,428,568
176,600 Motorola, Inc. 1,760,702
101,500 Nucor Corp. 6,553,855
126,800 Occidental Petroleum Corp. 9,810,516
5,400 Oceaneering International, Inc. (a) 324,000
290,800 Oracle Corp. (a) 5,467,040
34,600 Pfizer, Inc. 770,888
5,900 PNC Financial Services Group 362,437
22,800 PPL Corp. 1,034,664
75,725 Procter & Gamble Co. 5,011,481
20,418 Public Storage, Inc. 1,661,208
13,000 Qualcomm, Inc. 550,810
3,500 Reliance Industries Ltd. - GDR 144A 428,879
17,400 Sempra Energy 924,462
75,000 The Sherwin-Williams Co. 3,883,500
7,650 Sigma-Aldrich Corp. 420,903

The accompanying notes are an integral part of these financial statements.
14

^-------------------------------------------------------------------------------

SHARES VALUE
- --------------------------------------------------------------------------------

UNITED STATES: 44.2% (CONTINUED)
10,375 Southern Copper Corp. $ 1,183,891
5,700 Techne Corp. (a) 389,823
6,550 Terex Corp. (a) 441,798
220,700 Texas Instruments, Inc. 6,612,172
8,750 Tiffany & Co. 329,350
3,300 Toray Industries, Inc. - ADR 207,310
25,100 Unilever NV - ADR 780,610
3,900 United States Steel Corp. 422,955
74,900 United Technologies Corp. 5,281,199
13,225 Verizon Communications, Inc. 480,332
6,875 XTO Energy, Inc. 424,256
------------
205,834,379
------------

TOTAL COMMON STOCKS
(cost $371,389,472) $460,877,702
------------

PREFERRED STOCKS: 0.2%
BRAZIL: 0.2%
10,600 Banco Itau Holding Financeira SA 268,604
3,100 Companhia de Bebidas das Americas
(AmBev) - ADR 252,588
21,000 Lojas Americanas SA 191,237
2,000 Uniao de Bancos Brasileiros SA 271,240
------------
983,669
------------
GERMANY: 0.0%
2,900 Henkel KGAA 128,600
------------

TOTAL PREFERRED STOCKS
(Cost $1,104,543) $ 1,112,269
------------

MUTUAL FUNDS: 0.8%
3,459,735 SEI Daily Income Trust Government Fund 3,459,735
------------

TOTAL MUTUAL FUNDS
(Cost $3,459,735) $ 3,459,735
------------

TOTAL INVESTMENTS
(Cost $375,943,442): 100% 465,449,706
Other Assets in Excess of Liabilities: 0.0% 15,910
------------
NET ASSETS: 100.0% $465,465,616
============

- -------------
ADR - American depositary receipt.
GRD - Global Depository Receipt.
(a)Non-income producing security.

The accompanying notes are an integral part of these financial statements.
15

^-------------------------------------------------------------------------------

INDUSTRY % OF NET ASSETS
- --------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels 15.2%
Metals & Mining 11.1%
Capital Markets 7.5%
Energy Equipment & Services 5.0%
Commercial Banks 5.0%
Semiconductors & Semiconductor Equipment 4.3%
Machinery 3.9%
Wireless Telecommunication Services 3.9%
Pharmaceuticals 3.5%
Industrial Conglomerates 3.4%
Aerospace & Defense 3.4%
Communications Equipment 3.2%
Computers & Peripherals 3.0%
Electric Utilities 2.9%
Chemicals 2.1%
Biotechnology 1.8%
Insurance 1.6%
Electrical Equipment 1.6%
Diversified Telecommunication Services 1.5%
Household Durables 1.5%
Software 1.4%
Real Estate Investment Trusts (REITs) 1.3%
Food Products 1.2%
Household Products 1.1%
Air Freight & Logistics 1.0%
Road & Rail 1.0%
Real Estate Management & Development 1.0%
Specialty Retail 0.9%
Diversified Financial Services 0.9%
Automobiles 0.9%
IT Services 0.8%
Beverages 0.4%
Electronic Equipment & Instruments 0.2%
Multi-Utilities 0.2%
Marine 0.2%
Life Sciences Tools & Services 0.2%
Construction & Engineering 0.2%
Textiles, Apparel & Luxury Goods 0.1%
Media 0.1%
Food & Staples Retailing 0.1%
Trading Companies & Distributors 0.1%
Internet Software & Services 0.1%
Multiline Retail 0.1%
Health Care Providers & Services 0.1%
Independent Power Producers & Energy Traders 0.1%

The accompanying notes are an integral part of these financial statements.
16

- -------------------------------------------------------------------------------^

INDUSTRY % OF NET ASSETS
- --------------------------------------------------------------------------------

Health Care Equipment & Supplies 0.1%
Office Electronics 0.0%
Construction Materials 0.0%
Commercial Services & Supplies 0.0%
Consumer Finance 0.0%
Hotels Restaurants & Leisure 0.0%
Auto Components 0.0%
Personal Products 0.0%
------
TOTAL INVESTMENT IN SECURITIES 99.2%
Other Assets in Excess of Liabilities 0.8%
------
Net Assets 100.0%
======

The accompanying notes are an integral part of these financial statements.
17

^-------------------------------------------------------------------------------

PURISIMA TOTAL RETURN FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2008 (UNAUDITED)

ASSETS
Investments in securities, at cost $ 375,943,442
=============

Investments in securities, at value $ 465,449,706
Receivables:
Dividends and interest 801,689
Fund shares sold 277,245
Investments sold 184,676
Other assets 72,731
-------------
Total Assets 466,786,047
-------------

LIABILITIES
Payables for fund shares redeemed 189,415
Payables for investments purchased 384,660
Payables to the custodian 17,277
Accrued advisory fees (Note 3) 361,293
Accrued distribution fees (Note 4) 217,510
Accrued administration fees (Note 3) 26,157
Accrued transfer agent fees 38,667
Other accrued expenses 85,452
-------------
Total Liabilities 1,320,431
-------------

NET ASSETS $ 465,465,616
=============

Number of shares issued and outstanding
(unlimited shares authorized, $0.01 par value) 21,191,850
=============

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 21.96
=============

COMPONENTS OF NET ASSETS
Paid-in capital $ 370,042,547
Accumulated net investment loss (2,553,926)
Accumulated net realized loss on investments 8,470,731
Net unrealized appreciation on investments 89,506,264
-------------
Net assets $ 465,465,616
=============

The accompanying notes are an integral part of these financial statements.
18

- -------------------------------------------------------------------------------^

PURISIMA TOTAL RETURN FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2008 (UNAUDITED)

INVESTMENT INCOME
Income
Dividends (net of foreign taxes withheld of $257,024) $ 3,303,607
Interest & other income 111,088
------------
Total income 3,414,695
------------

Expenses
Advisory fees (Note 3) 2,396,349
Distribution fees (Note 4) 444,033
Administration fees (Note 3) 169,691
Transfer agent fees 106,520
Fund accounting fees 69,212
Custody fees 74,690
Insurance expense 42,934
Reports to shareholders 21,382
Registration fees 16,898
Audit fees 13,828
Legal fees 21,550
Trustee fees 11,800
Interest Expense 337
Miscellaneous 5,014
------------
Total expenses 3,394,238
------------

NET INVESTMENT INCOME 20,457
------------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 22,979,149
Change in net unrealized appreciation on investments (43,858,474)
------------
Net gain on investments (20,879,325)
------------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $(20,858,868)
============

The accompanying notes are an integral part of these financial statements.
19

^-------------------------------------------------------------------------------

PURISIMA TOTAL RETURN FUND
STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008* AUGUST 31, 2007
------------------ ---------------

INCREASE IN NET ASSETS FROM:

OPERATIONS
Net investment income $ 20,457 $ 1,589,923
Net realized gain on investments 22,979,149 22,935,435
Change in net unrealized appreciation
on investments (43,858,474) 36,347,412
------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS (20,858,868) 60,872,770
------------- -------------

DISTRIBUTION TO SHAREHOLDERS
From net investment income (1,298,261) (1,378,881)
From net realized gain from investments (34,522,389) --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (35,820,650) (1,378,881)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived
from net change
in outstanding shares (a) 56,421,152 18,931,734
------------- -------------

TOTAL INCREASE IN NET ASSETS (258,366) 78,425,623
------------- -------------

NET ASSETS
Beginning of Year 465,723,982 387,298,359
------------- -------------
END OF YEAR $ 465,465,616 $ 465,723,982
============= =============

Undistributed net investment income (loss) $ (2,553,926) $ (1,276,122)
============= =============

(a) A summary of capital share transactions is as follows:

SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008* AUGUST 31, 2007
------------------------- ---------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ---------- ------------

Shares sold 2,298,233 $ 54,932,578 3,607,216 $ 85,489,850

Shares issued on reinvestment
of distributions 1,428,514 33,170,091 56,352 1,288,215
Shares issued from merger -- -- -- --
Shares redeemed (1,319,607) (31,681,517) (2,884,946) (67,846,331)
---------- ------------ ---------- ------------
Net increase (decrease) 2,407,140 $ 56,421,152 778,622 $ 18,931,734
========== ============ ========== ============

* Unaudited.

The accompanying notes are an integral part of these financial statements.
20

- -------------------------------------------------------------------------------^

PURISIMA TOTAL RETURN FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH YEAR.

The following information should be read in conjunction with the financial
statements and notes thereto appearing elsewhere in this Semi-Annual Report.

SIX
MONTHS
ENDED YEAR ENDED AUGUST 31,
FEB. 29, -------------------------------------------------------
2008++ 2007 2006 2005 2004 2003
-------- ------- ------- -------- -------- ---------

Net asset value,
beginning of period $ 24.79 $ 21.51 $ 19.03 $ 16.58 $ 15.31 $ 14.06
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment 0.02 0.09 0.04 0.10 0.07 0.07
income (loss)
Net realized and
unrealized
gain (loss) on (0.98) 3.27 2.72 2.42 1.27 1.34
investments
Total from
investment
operations (0.96) 3.36 2.76 2.52 1.34 1.41
LESS DISTRIBUTIONS:
From net investment (0.07) (0.08) (0.28) (0.07) (0.07)
income
From net realized (1.80) -- -- -- -- (0.11)
gain
Total distributions (1.87) (0.08) (0.28) (0.07) (0.07) (0.16)
Net asset value, $ 21.96 $ 24.79 $ 21.51 $ 19.03 $ 16.58 $ 15.31
end of period

Total return (4.29%)* 15.63% 14.54% 15.20% 8.72% 10.22%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (millions) $ 465.5 $ 465.7 $ 387.3 $ 325.4 $ 298.6 $ 244.1
RATIO OF EXPENSES TO
AVERAGE NET ASSETS:
Before fees waived
and
expenses absorbed
or recouped 1.42%* 1.39% 1.49% 1.46% 1.49% 1.56%
After fees waived
and
expenses absorbed
or recouped 1.42%* 1.39% 1.49% 1.49% 1.50% 1.50%
RATIO OF NET
INVESTMENT
INCOME TO AVERAGE
NET ASSETS # 0.01%* 0.37% 0.21% 0.52% 0.42% 0.55%
Portfolio turnover 42.60%** 16.38% 43.47% 16.68% 19.50% 12.57%
rate

- ----------
* Annualized.
** Not annualized.
++ Unaudited.
# Net of fees waived.

The accompanying notes are an integral part of these financial statements.
21

^-------------------------------------------------------------------------------

PURISIMA TOTAL RETURN FUND
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (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 accompanying financial statements
include the Total Return Fund (the "Fund"), which commenced operations on
October 28, 1996, one of the two portfolios comprising the Trust. Fisher Asset
Management, LLC (doing business as Fisher Investments) (the "Adviser") serves as
the investment adviser to the Funds.

The investment objective of the Total Return Fund is as follows:

The Fund seeks a high total return. The Fund seeks to achieve its objective by
investing in a portfolio allocated between domestic and foreign common stocks,
fixed-income securities, money market instruments and other equity-type
securities. The Fund's investments in different types of securities may vary
significantly.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its 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. If on a particular
day, an exchange-listed security does not trade, then the mean between
the bid and asked prices will be used. Foreign exchange traded equity
securities are valued based upon the price on the exchange or market
on which they trade as of the close of business of such market or
exchange immediately preceding the time the Fund's net asset value is
determined. Investments in securities traded on the NASDAQ Global
Market, the NASDAQ Global Select Market and the NASDAQ Capital Market
will be valued at the NASDAQ Official Closing Price ("NOCP"), 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 price.
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 amortized cost
which, when combined with accrued interest, approximates market value.

- -------------------------------------------------------------------------------^

B. FOREIGN CURRENCY TRANSLATION. The Fund's records are maintained in
U.S. dollars. The value of securities, currencies and other assets and
liabilities denominated in currencies other than U.S. dollars are
translated into U.S. dollars based upon foreign exchange rates
prevailing at the end of the reporting period. Purchases and sales of
investment securities, income and expenses are translated on the
respective dates of such transactions.

The Fund does not isolate that portion of their net realized and
unrealized gains and losses on investments resulting from changes in
foreign exchange rates from the impact arising from changes in market
prices. Such fluctuations are included with net realized and
unrealized gain or loss from investments and foreign currency.

Net realized foreign currency transaction gains and losses arise from
sales of foreign currencies, currency gains or losses realized between
the trade and settlement dates on securities transactions, and the
differences between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Fund books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized
foreign currency translation gains and losses arise from changes in
the value of assets and liabilities, other than investments in
securities, resulting from changes in the exchange rates.

C. FEDERAL INCOME AND EXCISE TAXES. The Fund intends to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its income
to its shareholders. Therefore, no federal income or excise tax
provision is required. During the fiscal year ended August 31, 2007,
the Fund incurred a tax liability of $6,500. The Administrator has
agreed to reimburse the Fund for this tax liability. Accordingly,
there is no impact to the Fund or its shareholders.

The Fund may be subject to foreign taxes on income, gains on
investments or currency repatriation, a portion of which may be
recoverable. The Fund will accrue such taxes and recoveries as
applicable based upon its current interpretations of the tax rules and
regulation that exist in the markets in which it invests.

As of August 31, 2007, the Total Return Fund used its capital loss
carryforward of $1,540,425 to offset capital gains.

Effective 2007, the Fund adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 (FIN 48), Accounting for Uncertainty in
Income Taxes, a clarification of FASB Statement No. 109, Accounting
for Income Taxes. FIN 48 establishes financial reporting rules
regarding recognition and measurement of tax positions taken or
expected to be taken on a tax return. The adoption of FIN 48 had no
impact on the Fund's net assets or results of operations.

D. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS. Security
transactions are accounted for on 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.

^-------------------------------------------------------------------------------

E. 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.

F. 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.

G. SECURITIES SOLD SHORT. To the extent the Fund engages in selling
securities short, it is obligated to replace a security borrowed by
purchasing the same security at the current market value. The Fund
would incur a loss if the price of the security increases between the
date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund would realize a gain if the price of the
security declines between those dates.

The Fund is 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 Fund 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.

H. RECLASSIFICATION OF CAPITAL ACCOUNTS. Accounting principles generally
accepted in the United States of America require that certain
components of net assets relating to permanent difference be
reclassified between financial and tax reporting. These
reclassifications have no effect on net assets or net asset value per
share. For the year ended August 31, 2007, the Total Return Fund
decreased accumulated net investment loss by $1,076,936, and decreased
accumulated net realized gain on investments by $1,076,936.

I. INDEMNIFICATION OBLIGATIONS. Under the Fund's organizational
documents, its current and former officers and trustees are
indemnified against certain liabilities arising out of the performance
of their duties to the Fund. In addition, in the normal course of
business, the Fund enters into contracts that contain a variety of
representations and warranties that provide general indemnifications.
The Fund's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Fund
that have not yet occurred or that would be covered by other parties.

J. LINE OF CREDIT. The Fund has a Loan Agreement with U.S. Bank N.A.
Under the terms of the Loan Agreement, the Fund's borrowings cannot
exceed the lesser of $8,000,000 or 33 1/3% of the net assets of the
Fund. The interest rate paid on the Loan equals the prime rate per
annum, payable monthly.

- -------------------------------------------------------------------------------^

Borrowing activity under the Loan Agreement for the six months ended
February 29, 2008, was as follows:

MAXIMUM AMOUNT AVERAGE AVERAGE
AMOUNT INTEREST OUTSTANDING AT AMOUNT INTEREST
OUTSTANDING EXPENSE FEBRUARY 29, 2008 OUTSTANDING RATE
- ----------- ------- ----------------- ----------- ----
$ 454,000 $ 337 $ 0 $ 9,357 6.750%

NOTE 3 - COMMITMENTS, OTHER RELATED PARTY TRANSACTIONS AND
OTHER SERVICE PROVIDERS

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 Fund.
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 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
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 29, 2008, the Adviser had previously recouped all fees
previously waived and expenses absorbed from the Total Return Fund.

U.S. Bank, N.A. serves as the Fund's Custodian. U.S. Bancorp Fund Services, LLC
("USBFS"), an affiliate of U.S. Bank, N.A., serves as the Administrator, Fund
Accountant and Transfer Agent. Certain officers of the Trust, including the
Trust's Treasurer, are employees of the Administrator. In its capacity as the
Fund's Administrator, USBFS provides general fund management including corporate
secretarial services, coordinates the preparation of materials for the Board of
Trustees, assists with the annual audit of the Fund's financial statements,
monitors the Fund's compliance with federal and state regulations as well as
investment restrictions, coordinates the payment of Fund expenses and monitors
expense accruals, prepares financial statements and non-investment related
statistical data and makes required tax reporting calculations. During the six
months ended February 29, 2008, Purisima Total Return Fund paid USBFS $169,691
for services rendered in its capacity as the Trust's Administrator. Quasar
Distributors, LLC, an affiliate of U.S. Bank, N.A., and USBFS serves as
principal underwriter of the Fund and acts as the Fund's distributor in a
continuous public offering of the Fund's shares.

^-------------------------------------------------------------------------------

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 29, 2008, the
Fund incurred $444,033 in distribution fees. Quasar Distributors, LLC, an
affiliate of the Administrator, serves as distributor of the Fund pursuant to a
Distribution Agreement with the Trust.

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 29, 2008 were as follows:

FUND PURCHASES SALES
---- --------- -----
Total Return Fund $226,231,411 $203,583,139

NOTE 6 - FEDERAL INCOME TAX MATTERS

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. These differences are primarily attributable to the
tax deferral of losses on wash sales, the realization for tax purposes of
unrealized gains on passive foreign investment companies and return of capital
distributions and income adjustments recognized for tax purposes on real estate
investment trusts. 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 August 31, 2007, the components of distributable earnings on a tax basis
were as follows:

TOTAL RETURN
-------------
Cost of investments for tax purposes $ 334,292,686
=============
Gross tax unrealized appreciation $ 143,653,280
Gross tax unrealized depreciation $ (12,553,508)
-------------
Net tax unrealized appreciation $ 131,099,772
-------------
Undistributed ordinary income $ 767,824
Undistributed Long Term Capital Gains $ 20,235,777
-------------
Total distributable earnings $ 21,003,601
-------------
Other accumulated earnings $ (786)
-------------
Total accumulated earnings $ 152,102,587
=============

- -------------------------------------------------------------------------------^

The tax composition of dividends are as follows:

ORDINARY LONG TERM
INCOME CAPITAL GAINS
------ -------------
Total Return Fund
2/29/2008 $ 1,298,261 $ 34,522,389
8/31/2007 $ 1,378,881 --

NOTE 7 - RECENT ACCOUNTING PRONOUNCEMENTS

In September, 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards ("SFAS") No. 157, "Fair Value
Measurements", which will expand the disclosure requirements for fair value
measurements. The new standard defines fair value as the price that would be
received upon the sale of an asset or transfer of a liability in an orderly
transaction between market participants. As a basis for considering market
participant assumptions in fair value measurements, this Statement also
establishes a fair value hierarchy that distinguishes between (1) market
participant assumptions developed based on market data obtained from sources
independent of the reporting entity (observable inputs) and (2) the reporting
entity's own assumptions about marketing participant assumptions developed based
on the best information available in the circumstances (unobservable inputs).
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and earlier adoption is permitted.
(Management is currently evaluating the impact of adoption of SFAS No. 157 on
its financial statements.)

^-------------------------------------------------------------------------------

PURISIMA TOTAL RETURN FUND
OTHER INFORMATION

BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT
ADVISORY AGREEMENT (UNAUDITED)

On October 25, 2007, the Board of Trustees performed its annual review and
renewal of the Investment Management Agreement for the Total Return Fund. The
Board of Trustees, including the Independent Trustees, took into consideration
information provided at the meeting, as well as a wide variety of materials
relating to the services provided by the Adviser, including reports on the
Fund's investment results; portfolio composition; portfolio trading practices;
and other information relating to the nature, extent and quality of services
provided by the Adviser to the Fund. In addition, the Board discussed and
reviewed information regarding the Fund's investment results, advisory fee and
expense comparisons, descriptions of various functions such as compliance
monitoring and portfolio trading practices, and information about the personnel
providing investment management and administrative services to the Fund. The
Board's Independent Trustees met separately to discuss the various factors
summarized below, both without and then with legal counsel to the Fund, who is
not independent legal counsel.

In deciding to renew the Agreement, the Board of Trustees did not identify any
single factor or particular information that, in isolation, was the controlling
factor. This summary describes the most important, but not all, of the factors
considered by the Board.

1. Nature, Extent and Quality of Services

THE ADVISER, ITS PERSONNEL AND ITS RESOURCES. The Board considered the
depth and quality of the Adviser's investment management process,
including its sophisticated methodology; the experience, capability and
integrity of its senior management and other personnel; the low turnover
rates of its key personnel; and the overall financial strength and
stability of its organization. The Board discussed the quality of the
services provided by the Adviser and noted that the Quarterly Report from
the Adviser was extremely sophisticated and thorough. The Board commented
on the high quality of the independent capital markets research conducted
by the Adviser and reported to the Board on a regular basis. The Board's
consensus was that the Adviser was open about its thinking on the
management of the Fund and very available to address any questions or
concerns the Board may have from time to time. The Board also considered
that the Adviser made available to its investment professionals a variety
of resources and systems relating to investment management, compliance,
trading, performance and portfolio accounting. The Board further
considered the Adviser's continuing need to attract and retain qualified
personnel and to maintain and enhance its resources and systems. The Board
also observed that there had been no decline in the quality of services
provided to the Fund despite the growth of the Adviser's other client
business and the continued relative decline of the Fund as a percentage of
the Adviser's assets under management.

^-------------------------------------------------------------------------------

OTHER SERVICES. The Board considered the Adviser's policies, procedures and
systems to ensure compliance with applicable laws and regulations and its
commitment to these programs; its efforts to keep the Trustees informed; and
its attention to matters that may involve conflicts of interest with the
Fund.

The Board concluded that the nature, extent and quality of the services
provided by the Adviser has benefited and should continue to benefit the
Fund and its shareholders.

2. Investment Performance

The Board considered the Fund's pursuit of its investment objective and the
investment results of the Fund in light of its objective. The Trustees
compared the Fund's total returns with various independent securities price
indexes (the Standard & Poor's 500 Stock Price Index, the Morgan Stanley
Capital Institutional World Index and the Morgan Stanley Capital
International EAFE Index) and mutual fund peer groups objectively compiled
using data from Morningstar, Inc., and noted the favorable performance of
the Fund during various periods compared to those indexes, notably the most
recent quarter, the year-to-date performance and performance since
inception. The Fund underperformed its peer group average of funds for the
1-, 3- and 5-year periods, but has shown improved relative performance for
the recent quarter, and maintains a 10-year performance record just 0.22%
under its peer average.

The Board concluded that the Adviser's performance record in managing the
Fund indicates that its continued management has benefited and should
continue to benefit the Fund and its shareholders.

3. Advisory Fees and Total Expenses

The Board reviewed the advisory fees and total expenses of the Fund and
compared such amounts with the average fee and expense levels of other funds
in an applicable group of peer funds compiled using data from Morningstar,
Inc. The Board observed that the Fund's advisory fees and total expenses
were reasonable compared to the median fee and expense levels of the
comparable funds in the indices (meaning at or below the median). The Board
noted that, in the past, the Adviser had waived significant fees in respect
of the Fund to maintain an overall expense limitation, which the Adviser
would not be able to recoup, thus indicating a substantial investment by the
Adviser in that Fund. The Board noted that the Fund is currently operating
slightly below its expense limit. The Board concluded that the reasonable
level of the fees charged by the Adviser benefits the Fund and its
shareholders. The Board then considered the fees charged to the Fund versus
the Adviser's private clients. The Board considered the extra burden of
administration, compliance, deadlines, risk and regulations associated with
the Fund that do not apply to the private accounts. The Board determined
that the respective peer groups provided a better comparison and it found
the Fund's fees reasonable.

^-------------------------------------------------------------------------------

4. Adviser, Costs, Level of Profits and Economies of Scale

The Board discussed the Adviser's costs of providing services to the Fund,
as well as the resulting level of profits to the Adviser. The Board
considered the Adviser's need to invest in technology, infrastructure and
staff to reinforce and offer new services and to accommodate changing
regulatory requirements. The Trustees noted that at its present asset size,
breakpoints in the Fund's advisory fee structure were not practicable, but
that economies of scale in the cost of operations, to the extent they exist,
effectively were being shared given the Adviser's past waiver of fees in
respect of the Fund. The Board did not specifically examine the Adviser's
level of profitability on the Fund given the Fund's relatively small size
compared to the rest of the Adviser's assets under management and the
reasonability of the Fund's fees and expenses compared to peer funds. The
Board concluded that the Fund's cost structure is reasonable.

5. Ancillary Benefits

The Board considered a variety of other benefits received by the Adviser,
including possible ancillary benefits to itself or its institutional
management business. The Board noted that the Adviser ceased the use of
third-party soft dollar products from trades by the Fund, and noted that the
small relative size of the Fund compared to the Adviser's other business
would suggest minimal possible fallout benefits.

6. Conclusions

Based on its review, including consideration of each of the factors referred
to above, the Board concluded that the Agreement is fair and reasonable to
the Fund and its shareholders, that the Fund's shareholders received, and
should receive, reasonable value in return for the advisory fees paid to the
Adviser by the Fund, and that the renewal of the Agreement was in the best
interests of the Fund and its shareholders.

- -------------------------------------------------------------------------------^

PROXY VOTING PROCEDURES (UNAUDITED)

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
1-800-841-0199. This information is also available through the Securities and
Exchange Commission's website at http://www.sec.gov.

Information regarding how the Fund voted proxies relating to the portfolio
securities during the most recent 12-month period ended June 30 is available
without charge, upon request, by calling toll-free 1-800-841-0199. This
information is also available through the Securities and Exchange Commission's
website at http://www.sec.gov.

FORM N-Q DISCLOSURE (UNAUDITED)

The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third fiscal quarters on Form N-Q. The Fund's Form N-Q is 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.

^-------------------------------------------------------------------------------

PURISIMA TOTAL RETURN FUND
TRUSTEES AND OFFICER INFORMATION (UNAUDITED)

The Board of Trustees is responsible for the overall management of the Trust's
business. The Board of Trustees approves all significant agreements between the
Trust and persons or companies furnishing services to it, including all
agreements with the Adviser, Administrator, Custodian and Transfer Agent. The
Board of Trustees delegates the day-to-day operations of the Trust to its
Officers, subject to the Fund's investment objective and policies and to general
supervision by the Board of Trustees. The Statement of Additional Information
includes additional information about the Trust's Trustees and is available,
without charge, by calling 1-800-841-0199.

The Trustees and Officers of the Trust, their business addresses and principal
occupations during the past five years are:

Name, Address, Position(s) Held
Date of Birth with Trust Year Elected(1)
- --------------------------------------------------------------------------------
Kenneth L. Fisher* (born 1950) President and Trustee 1996
13100 Skyline Blvd.
Woodside, CA 94062

- --------------------------------------------------------------------------------
Pierson E. Clair III (born 1948) Trustee 1996
13100 Skyline Blvd.
Woodside, CA 94062

- --------------------------------------------------------------------------------
Scott LeFevre (born 1957) Trustee 2001
13100 Skyline Blvd.
Woodside, CA 94062

- --------------------------------------------------------------------------------
Alfred D. McKelvy, Jr. (born 1948) Trustee 2003
13100 Skyline Blvd.
Woodside, CA 94062:

- --------------------------------------------------------------------------------
Bryan F. Morse (born 1952) Trustee 1996
13100 Skyline Blvd.
Woodside, CA 94062

- --------------------------------------------------------------------------------
Grover T. Wickersham (born 1949) Trustee 1996
13100 Skyline Blvd.
Woodside, CA 94062

- --------------------------------------------------------------------------------

^-------------------------------------------------------------------------------

Number of
Portfolios in
Fund Complex Other
Principal Occupation(s) Overseen by Directorships
During Past Five Years Director Held
- --------------------------------------------------------------------------------
Chief Executive Officer and majority 2 None
shareholder of Fisher Investment, Inc.,
the sole 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 1979.
- --------------------------------------------------------------------------------
President and Chief Executive Officer of 2 Signature
Brown & Haley since 1998 (fine confectioners); Foods, Inc.
Vice President of Blummer Chocolate Company
from 1980 to 1997, where he had been
employed since 1970.
- --------------------------------------------------------------------------------
Sole proprietor of LeFevre Capital 2 None
Management, a registered investment
adviser.
- --------------------------------------------------------------------------------
Executive Director of the law firm of 2 Bay BOMA;
Berding & Weil, LLP since 1990. BOMA California;
Heritage Bank
(Advisory Board).
- --------------------------------------------------------------------------------
Sole proprietor of Bryan F. Morse, RIA, 2 None
a registered investment adviser since 1990.
- --------------------------------------------------------------------------------
Attorney in private practice in Palo Alto, 2 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.
- --------------------------------------------------------------------------------

^-------------------------------------------------------------------------------

Position(s) Held
Name, Address, Age with Trust Year Elected(1)
- --------------------------------------------------------------------------------
Tom Fishel (born 1960) Chief 2005
13100 Skyline Blvd. Compliance
Woodside, CA 94062 Officer

- --------------------------------------------------------------------------------
Keith Shintani (born 1963) Secretary and 2006
2020 East Financial Way Assistant
Glendora, CA 91741 Treasurer

- --------------------------------------------------------------------------------
Michael Ricks (born 1977) Treasurer 2006
2020 East Financial Way
Glendora, CA 91741
- --------------------------------------------------------------------------------

- ---------------
(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.

- -------------------------------------------------------------------------------^

Number of
Portfolios in
Fund Complex Other
Principal Occupation(s) Overseen by Directorships
During Past Five Years Director Held
- --------------------------------------------------------------------------------
Vice President and Chief Compliance N/A None
Officer of the Adviser. Vice President
of Charles Schwab & Co., Inc. from
1995 to 2004, where he had been employed
since 1983.
- --------------------------------------------------------------------------------
Vice President of U.S. Bancorp Fund N/A None
Services, LLC and its predecessor,
Investment Company Administration,
LLC since 1998.
- --------------------------------------------------------------------------------
Assistant Vice President of U.S. N/A None
Bancorp Fund Services, LLC since 2001.

- --------------------------------------------------------------------------------

^-------------------------------------------------------------------------------

PRIVACY NOTICE

FISHER ASSET MANAGEMENT, LLC (doing business as Fisher Investments) and
THE PURISIMA FUNDS 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 or others.

We are committed to protecting your privacy and your non-public personal
information. We do not sell or market your non-public personal information to
unaffiliated organizations. We maintain physical, electronic and procedural
safeguards to guard your non-public personal information. We hold our employees
to strict standards of conduct regarding confidentiality, and employees who
violate our Privacy Policy are subject to disciplinary process. We restrict
access to your information to those employees who need to know that information
to carry out their duties.

We do not disclose any non-public personal information about our clients or
former clients without the client's authorization, except as permitted by law.
We may disclose the non-public information we collect to employees and
affiliates, and unaffiliated third parties as permitted by law. Third parties
may include law enforcement agencies, government and regulatory authorities, and
professionals such as our legal counsel and auditors, and we may disclose
information for reasons such as audit purposes, prevention of fraud or money
laundering, protection of confidentiality, compliance with laws, and to provide
agreed upon products and services to you. Third parties may also include service
providers performing financial services for us (such as brokers and custodians)
and service providers performing non-financial services for us (such as third
parties performing computer related or data maintenance, marketing or other
services for us or to assist us in offering our products and services to you).
It is our policy to require all third party service providers that will receive
information to sign strict confidentiality agreements agreeing to safeguard such
information and use it only for the purpose it was provided.

This page is intentionally left blank.

- --------------------------------------------------------------------------------

THE PURISIMA FUNDS
- --------------------------------------------------------------------------------
Semi-Annual Report (Unaudited)
February 29, 2008
The Purisima All-Purpose Fund

- --------------------------------------------------------------------------------

A LETTER TO OUR SHAREHOLDERS

Welcome to the semi-annual report for the Purisima All-Purpose Fund for the
six-month period ended February 29, 2008. The Fund seeks to provide protection
against declines in t h e value of the U.S. and foreign equity markets. During
the period, the Fund was primarily invested in US government securities.

Thank you for your continued interest and support.

Sincerely,

/s/ KENNETH L. FISHER
- ---------------------
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.

FUND HOLDINGS AND SECTOR ALLOCATIONS ARE SUBJECT TO CHANGE AND ARE NOT
RECOMMENDATIONS TO BUY OR SELL ANY SECURITY.

MUTUAL FUND INVESTING INVOLVES RISK. PRINCIPAL LOSS IS POSSIBLE. THE FUND MAY
USE SHORT SALES OF SECURITIES, WHICH INVOLVE THE RISK THAT LOSSES MAY EXCEED THE
ORIGINAL AMOUNT INVESTED. THE FUND MAY ALSO USE OPTIONS AND FUTURES CONTRACTS,
WHICH HAVE THE RISKS OF UNLIMITED LOSSES OF THE UNDERLYING HOLDINGS DUE TO
UNANTICIPATED MARKET MOVEMENTS AND FAILURE TO CORRECTLY PREDICT THE DIRECTION OF
SECURITIES PRICES, INTEREST RATES AND CURRENCY EXCHANGE RATES. THE FUND MAY
INVEST IN FOREIGN SECURITIES WHICH INVOLVE GREATER VOLATILITY AND POLITICAL,
ECONOMIC AND CURRENCY RISKS AND DIFFERENCES IN ACCOUNTING METHODS. THE FUND MAY
INVEST IN DEBT SECURITIES WHICH TYPICALLY DECREASE IN VALUE WHEN I NT EREST
RATES RISE. THIS RISK IS GREATER FOR LONGER-TERM DEBT SECURITIES.

THE FUND IS NON-DIVERSIFIED, MEANING IT MAY CONCENTRATE ITS ASSETS IN FEWER
INDIVIDUAL HOLDINGS THAN A DIVERSIFIED FUND. THEREFORE, THE FUND IS MORE EXPOSED
TO INDIVIDUAL STOCK VOLATILITY THAN A DIVERSIFIED UND F . AN INVESTMENT IN THE
FUND IS NOT SUITABLE FOR ALL INVESTORS.

THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS.

FISHER INVESTMENTS IS THE ADVISER TO THE PURISIMA FUNDS. THE PURISIMA FUNDS ARE
DISTRIBUTED BY QUASAR DISTRIBUTORS, LLC. 04/08

-1-

SECTOR BREAKDOWN(1)
(Unaudited)

PURISIMA ALL-PURPOSE FUND

- --------------------------------------------------------------------------------
U.S. Treasury Obligations 78.1%
Mutual Funds 21.9%
- --------------------------------------------------------------------------------
Total 100.0%

(1)Percentage of Total Investments as of February 29, 2008.

-2-

IMPORTANT INFORMATION

The following disclosure provides important information regarding the Fund's
Expense Example. Please refer to this information when reviewing the Expense
Example for the Fund.

EXPENSE EXAMPLE (UNAUDITED)

As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs; and (2) ongoing costs, i n cluding management fees; and other fund
expenses. This Example is intended to help you understand your ongoing costs (in
dollars) of investing in the Fund 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, 2007 to
February 29, 2008 for the Purisima All-Purpose Fund.

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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), or redemption fees. Therefore, the n i formation 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.

-3-

EXPENSE EXAMPLE (UNAUDITED)

PURISIMA ALL-PURPOSE FUND ACUTAL HYPOTHETICAL PERFORMANCE
(Inception date: 11/01/2005) PERFORMANCE (5% RETURN BEFORE EXPENSES)
- --------------------------------------------------------------------------------
Beginning Account Value (09/01/07) $1,000.00 $1,000.00

Ending Account Value (02/29/08) $1,031.90 $1,017.40

Expenses Paid During Period(1) $ 7.58 $ 7.52
- --------------------------------------------------------------------------------

(1) Expenses are equal to the Fund's expense ratio for the four month period of
1.50% for the Purisima All-Purpose Fund multiplied by the average account value
over the period, multiplied by 182/366 (to reflect the one half year period).

-4-

PURISIMA ALL-PURPOSE FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2008 (UNAUDITED)

PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------

U.S. TREASURY BILLS - 17.0%
5,000 3.839%, 04/17/2008 $ 4,974
----------
TOTAL U.S. TREASURY BILLS (COST $4,974)

U.S. TREASURY NOTE - 120.5%
10,000 4.875%, 08/31/2008 10,151
25,000 2.625%, 05/15/2008 25,043
----------
TOTAL U.S. TREASURY NOTES (COST $35,051) $ 35,194
----------

SHARES
- -------

MUTUAL FUNDS - 38.6%
11,292 SEI Daily Income Trust Government Fund 11,292

TOTAL MUTUAL FUNDS (COST $11,292) $ 11,292
----------

TOTAL INVESTMENTS (COST $51,317) - 176.1% 51,460
LIABILITIES IN EXCESS OF OTHER ASSETS - (76.1)% (22,248)
----------
TOTAL NET ASSETS - 100.0% $ 29,219
==========

The accompanying notes are an integral part of these financial statements

-5-

PURISIMA ALL-PURPOSE FUND

STATEMENT OF ASSETS AND LIABILITIES AT FEBRUARY 29, 2008
================================================================================

ALL-PURPOSE FUND
----------------
ASSETS

Investments in securities, at cost $ 51,317
============

Investments in securities, at value $ 51,460
Receivables:
Dividends and interest 247
Due from Adviser (Note 3) 6,977
Prepaid expenses 3,859
------------
Total Assets 62,543
------------

LIABILITIES
Accrued administration fees (Note 3) 2,264
Accrued transfer agent fees 4,642
Accrued audit fees 19,550
Accrued fund accounting fees 5,108
Other accrued expenses 1,760
------------
Total Liabilities 33,324
------------

NET ASSETS $ 29,219
============

Number of shares issued and outstanding
(unlimited shares authorized, $0.01 par value) 2,877
============

NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $ 10.16
============

COMPONENTS OF NET ASSETS
Paid-in capital $ 28,764
Accumulated net investment income 303
Accumulated net realized gain on investments 9
Net unrealized appreciation on investments 143
------------
Net assets $ 29,219
============

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

-6-

PURISIMA ALL-PURPOSE FUND

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2008
================================================================================

ALL-PURPOSE
FUND
-----------
INVESTMENT INCOME

Income
Interest $ 1,039
-------
Total income 1,039
-------

Expenses
Advisory fees 143
Administration fees 19,691
Transfer agent fees 9,214
Fund accounting fees 14,928
Custody fees 1,556
Insurance expense 4
Reports to shareholders 1,791
Registration fees 8,979
Audit fees 6,552
Legal fees 99
Trustee fees 10,462
Miscellaneous 274
-------
Total expenses 73,693
Less: Reimbursement by Adviser (Note 3) 73,479
-------
Net expenses 214
-------

NET INVESTMENT INCOME 825
-------

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments 10
Change in net unrealized appreciation
on investments 47
-------
Net gain on investments 57
-------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 882
=======

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

-7-

PURISIMA ALL-PURPOSE FUND

STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, AUGUST 31,
2008 * 2007
------------ ----------

DECREASE IN NET ASSETS FROM:

OPERATIONS

Net investment income $ 825 $ 1,820
Net realized gain/loss on investments 10 5
Change in net unrealized appreciation on investments 47 96
-------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 882 1,921
-------- --------

DISTRIBUTION TO SHAREHOLDERS
From net investment income (1,717) (1,899)
-------- --------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (1,717) (1,899)
-------- --------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net
change in outstanding shares (a) 1,717 1,899
-------- --------

TOTAL INCREASE IN NET ASSETS 882 1,921
-------- --------

NET ASSETS
Beginning of period 28,337 26,416
-------- --------
END OF PERIOD $ 29,219 $ 28,337
======== ========

Undistributed net investment income $ 303 $ 1,195
======== ========

(a) A summary of capital share transactions is as follows:

SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2008 AUGUST 31, 2007
----------------- ---------------
SHARES VALUE SHARES VALUE
------ ------ ------- -------
Shares sold -- $ -- -- $ --
Shares issued on reinvestment
of distributions 172 1,717 190 1,899
Shares redeemed -- -- -- --
---- ------ ---- ------
Net increase 172 $1,717 190 $1,899
==== ====== ==== ======

* Unaudited.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

-8-

PURISIMA ALL-PURPOSE FUND

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 ANNUAL REPORT.

FOR THE
SIX MONTHS FOR THE NOVEMBER 1,
ENDED YEAR ENDED 2005^ THRU
FEBRUARY 29, AUGUST 31, AUGUST 31,
2008++ 2007 2006
------------- ---------- -----------

Net asset value, beginning of period $ 10.47 $ 10.50 $ 10.00
---------- ----------- ----------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.30 0.76 0.56
Net realized and unrealized gain
(loss) on investments 0.02 (0.03) 0.00
---------- ----------- ----------
Total from investment operations 0.32 0.73 0.56
---------- ----------- ----------

LESS DISTRIBUTIONS:
From net investment income (0.63) (0.76) (0.06)
---------- ----------- ----------
Total distributions (0.63) (0.76) (0.06)
---------- ----------- ----------

Net asset value, end of period $ 10.16 $ 10.47 $ 10.50
========== =========== ==========

Total return 3.19%** 7.27% 5.62%**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $ 29.2 $ 28.3 $ 26.4
(thousands)

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived 516.21%* 1046.51% 620.25%*
After fees waived 1.50%* 2.87% 1.50%*

RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS # 5.78%* 12.78% 6.71%*

Portfolio turnover rate 0.00%** 0.00% 0.00%**

* Annualized.
** Not annualized.
++ Unaudited.
# Net of fees waived.
^ Commencement of operations.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

-9-

PURISIMA ALL-PURPOSE FUND

NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2008 (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 accompanying financial statements
include the Purisima All-Purpose Fund (the "Fund"), a non-diversified fund which
commenced operations on November 1, 2005. The Fund is one of the two portfolios
comprising the Trust. Fisher Asset Management, LLC (doing business as Fisher
Investments) (the "Adviser") serves as the investment adviser to the Fund.

The investment objective of the Purisima All-Purpose Fund is as follows:

The Fund seeks to provide protection against declines in the value of the U.S.
and foreign equity markets. It invests in derivative securities, money market
instruments and other securities, including U.S. and foreign common stocks, and
fixed income securities.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of the 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. If on a particular day,
an exchange-listed security does not trade, then the mean between the
bid and asked prices will be used. Foreign exchange traded equity
securities are valued based upon the price on the exchange or market on
which they trade as of the close of business of such market or exchange
immediately preceding the time the Fund's net asset value is determined.
Investments in securities traded on the NASDAQ Global Market, the NASDAQ
Global Select Market and the NASDAQ Capital Market will be valued at the
NASDAQ Official Closing Price ("NOCP"), 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 price. 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 i n fluence the market in which these securities are purchased and
sold. Debt securities with remaining maturities of 60 days or less are
valued at amortized cost which, when combined with accrued interest,
approximates market value.

-10-

PURISIMA ALL-PURPOSE FUND

B. FOREIGN CURRENCY TRANSLATION. The Fund's records are maintained in U.S.
dollars. The value of securities, currencies and other assets and
liabilities denominated in currencies other than U.S. dollars are
translated into U.S. dollars based upon foreign exchange rates
prevailing at t h e end of the reporting period. Purchases and sales of
investment securities, income and expenses are translated on the
respective dates of such transactions.

The Fund does not isolate that portion of their net realized and
unrealized gains and losses on nv i estments resulting from changes in
foreign exchange rates from the impact arising from changes in market
prices. Such fluctuations are included with net realized and unrealized
gain or loss from investments and foreign currency.

Net realized foreign currency transaction gains and losses arise from
sales of foreign currencies, currency gains or losses realized between
the trade and settlement dates on securities transactions, and the
differences between the amounts of dividends, interest, and f o reign
withholding taxes recorded on the Fund books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized
foreign currency translation gains and l o sses arise from changes in
the value of assets and liabilities, other than investments in
securities, resulting from changes in the exchange rates.

C. FEDERAL INCOME AND EXCISE TAXES. The Fund has elected to be taxed as a
"regulated i nv estment company" and intends to distribute substantially
all taxable income to its shareholders and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies. Therefore, no federal income or excise tax
provision is required.

In order to avoid imposition of the excise tax applicable to regulated
investment companies, h t e Fund intends to declare each year as
dividends in each calendar year at least 98% of its net investment
income (earned during the calendar year) and 98% of its net realized
capital gains (earned during the twelve months ended October 31) plus
undistributed amounts, if any, from prior years.

The Fund may be subject to foreign taxes on income, gains on investments
or currency repatriation, a portion of which may be recoverable. The
Fund will accrue such taxes and recoveries as applicable based upon its
current interpretations of the tax rules and regulation t h at exist in
the markets in which it invests.

As of August 31, 2007, the Fund had a capital loss carryforward of $1
which expires in 2015.

Effective 2007, the Fund adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 (FIN 48), Accounting for Uncertainty in
Income Taxes, a clarification of FASB No. 109, Accounting for Income
Taxes. FIN 48 establishes financial reporting rules regarding the
recognition and measurement of tax positions taken or expected to be
taken on a tax return. The adoption of FIN 48 had no impact on the
Fund's net assets or results of operations.

-11-

PURISIMA ALL-PURPOSE FUND

D. 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.

E. 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.

F. CONCENTRATION OF RISK. Investments in securities of non-U.S. issues in
certain countries n i volve special investment risks. These risks may
include, but are not limited to, investment restrictions, adverse political,
social and economic developments, government involvement i n the private
sector, limited and less reliable investor information, lack of liquidity,
certain l o cal tax law considerations, and limited regulation of the
securities markets.

G. 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 t im e 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 l i abilities. When an option expires, the premium (original
option value) is realized as a gain i f the option was 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 Fund may purchase options which are n i cluded in the Fund's Schedules of
Investments and subsequently marked to market to reflect the current value of
the option. At August 31, 2007, the Fund had no options outstanding.

H. SECURITIES SOLD SHORT. To the extent the Fund engages in selling securities
short, they are obligated to replace a security borrowed by purchasing the
same security at the current market value. The Fund would incur a loss if the
price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund would realize
a gain if the price of the security declines between those dates.

-12-

PURISIMA ALL-PURPOSE FUND

The Fund is 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 Fund 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.

I . INDEMNIFICATION OBLIGATIONS. Under the Fund's organizational documents, its
current and o f rmer officers and trustees are indemnified against certain
liabilities arising out of the performance of their duties to the Fund. In
addition, in the normal course of business, the Fund enters into contracts
that contain a variety of representations and warranties that provide general
indemnifications. The Fund's maximum exposure under these arrangements i s
unknown as this would involve future claims that may be made against the Fund
that have not yet occurred or that would be covered by other parties.

NOTE 3 - COMMITMENTS, OTHER RELATED PARTY TRANSACTIONS AND OTHER
SERVICE PROVIDERS

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 t h e personnel needed by the
Fund. 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.

As of February 29, 2008, the Adviser has reimbursed the Fund $73,479 to limit
its total expenses to not more than 1.50% of the average daily net assets.

-13-

PURISIMA ALL-PURPOSE FUND

t a x reporting calculations. During the six months ended February 29, 2008,
Purisima All-Purpose Fund paid USBFS $19,691 for services rendered in its
capacity as the Fund's Administrator.

Quasar Distributors, LLC, an affiliate of U.S. Bank, N.A., and USBFS serves as
principal underwriter of t h e Fund and acts as the Fund's distributor, pursuant
to a Distribution Agreement with the Trust, in a continuous public offering of
the Fund's shares.

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 Fund is authorized to pay
expenses incurred for the purpose of distribution activities, including the
engagement 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 29, 2008, the Fund
did not utilize the Plan.

NOTE 5 - INVESTMENT TRANSACTIONS

The cost of purchases and the proceeds from sales of securities, excluding
short-term investments, for t h e year ended August 31, 2007, were as follows:

FUND PURCHASES SALES
- ---- --------- -----
Purisima All-Purpose Fund $ 0 $ 0

NOTE 6 - FEDERAL INCOME TAX MATTERS

The difference between the book and tax basis components of the distributable
earnings relates principally to the timing of recognition of income and gains
for federal income tax purposes. These differences are primarily attributable to
the tax deferral of losses on wash sales, the realization for tax purposes of
unrealized gains on passive foreign investment companies and return of capital
distributions and income adjustments recognized for tax purposes on real estate
investment trusts. Short-term gains distributions reported in the Statements of
Changes of Net Assets, if any, are reported as ordinary i n come for federal tax
purposes.

As of August 31, 2007, the components of distributable earnings on a tax basis
were as follows:

All-Purpose
-----------

Cost of investments for tax purposes $ 40,661
========
Gross tax unrealized appreciation $ 96
Gross tax unrealized depreciation $ --
--------
Net tax unrealized appreciation $ 96
Undistributed ordinary income $ 1,195
Capital loss carryforward * $ (1)
--------
Total accumulated earnings (losses) $ 1,290
========

-14-

PURISIMA ALL-PURPOSE FUND

The tax compositions of dividends are as follows:

Ordinary Long Term
Income Capital Gains
------ -------------
Purisima All-Purpose
Fund
2/29/2008 $1,717 --
8/31/2007 $1,899 --

* Under current tax law capital losses realized after October 31 and prior to
the Fund's fiscal year end may be deferred as occurring on the first day of the
following fiscal year.

NOTE 7 - RECENT ACCOUNTING PRONOUNCEMENTS

In September, 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards ("SFAS") No. 157, "Fair Value
Measurements", which will expand the disclosure requirements for fair value
measurements. The new standard defines fair value as the price that would be
received upon the sale of an asset or transfer of a liability in an orderly
transaction between market participants. As a basis for considering market
participant assumptions in fair value measurements, this Statement also
establishes a fair value hierarchy that distinguishes between (1) market
participant assumptions developed based on market data obtained from sources
independent of the reporting entity (observable inputs) and (2) the reporting
entity's own assumptions about market participant assumptions developed based on
the best information available in the circumstances (unobservable inputs). SFAS
157 is effective for financial statements issued for fiscal years beginning
after November 15, 2007 and earlier adoption is permitted. Management is
currently evaluating the impact of adoption of SFAS No. 157 on its financial
statements.

-15-

OTHER INFORMATION - ALL PURPOSE FUND

BOARD CONSIDERATION OF AND CONTINUATION OF INVESTMENT ADVISORY AGREEMENT
(UNAUDITED)

On October 25, 2007, the Board of Trustees performed its
annual review and renewal of the Investment Management Agreement for the All
Purpose Fund. The Board of Trustees, including the Independent Trustees, took
into consideration information provided at the meeting, as well as a wide
variety of materials relating to the services provided by the Adviser, i n
cluding reports on the Fund's investment results; portfolio composition;
portfolio trading practices; and other information relating to the nature,
extent and quality of services provided by t h e Adviser to the Fund. In
addition, the Board discussed and reviewed information regarding t h e Fund's
investment results, advisory fee and expense comparisons, descriptions of
various functions such as compliance monitoring and portfolio trading practices,
and information about t h e personnel providing investment management and
administrative services to the Fund. The Board's Independent Trustees met
separately to discuss the various factors summarized below, both without and
then with legal counsel to the Fund, who is not independent legal counsel.

In deciding to renew the Agreement, the Board of Trustees did
not identify any single factor or particular information that, in isolation, was
the controlling factor. This summary describes the most important, but not all,
of the factors considered by the Board.

The Board recognized that the Fund has engaged in only minimal
investment activities since its inception because its primary use has been
reserved as an investment when the Adviser takes a defensive posture with
respect to the securities markets. To date, the Fund has remained invested in
U.S. Treasury securities and cash, with only an executive officer of the Adviser
as its shareholder.

1. Nature, Extent and Quality of Services

THE ADVISER, ITS PERSONNEL AND ITS RESOURCES. The Board
considered the depth and quality of the Adviser's investment management process,
including its sophisticated methodology; the experience, capability and
integrity of its senior management and other personnel; the low turnover rates
of its key personnel; and the overall financial strength and stability of its
organization. The Board discussed the quality of the services provided by the
Adviser and noted that the Quarterly Report from the Adviser was extremely
sophisticated and t h orough. The Board commented on the high quality of the
independent capital markets research conducted by the Adviser and reported to
the Board on a regular basis. The Board's consensus was that the Adviser was
open about its thinking on the management of the Fund and very available to
address any questions or concerns the Board may have from time to time. The
Board also considered that the Adviser made available to its investment
professionals a variety of resources and systems relating to investment
management, compliance, trading, performance and portfolio accounting. The Board
further considered the Adviser's continuing need to attract and retain qualified
personnel and to maintain and enhance its resources and systems. The Board also
observed that there had been no decline in the quality of services provided to
the Fund despite the growth of the Adviser's other client business and the
continued relative decline of the Fund as a percentage of the Adviser's assets
under management.

-16-

OTHER SERVICES. The Board considered the Adviser's policies,
procedures and systems to ensure compliance with applicable laws and regulations
and its commitment to these programs; its efforts to keep the Trustees informed;
and its attention to matters that may involve conflicts of interest with the
Fund.

The Board concluded that the nature, extent and quality of the
services provided by the Adviser has benefited and should continue to benefit
the Fund and its shareholders, especially upon its broader use under the
circumstances contemplated by the Adviser.

2. Investment Performance

The Board considered the Fund's pursuit of its investment
objective and the i nv estment results of the Fund in light of its objective.
The Trustees compared the Fund's total returns with a peer group of mutual funds
objectively compiled using data from Morningstar, Inc., and noted the favorable
performance of the Fund during various periods compared to those peer averages.
The Board recognized that the Fund's proposed defensive posture has not yet been
implemented and the peer group funds, referred to as specialty equity funds,
would serve as a better comparison at that time. Despite that limitation, the
Fund's performance was comparable t o the peer group average for the one-year
period and most recent quarter.

The Board concluded that the Adviser's performance record in
managing the Fund indicates that its continued management has benefited and
should continue to benefit the Fund and its shareholders.

3. Advisory Fees and Total Expenses

The Board reviewed the advisory fees and total expenses of the
Fund and compared such amounts with the average fee and expense levels of other
funds in an applicable group of peer funds compiled using data from Morningstar,
Inc. The Board observed that the Fund's advisory fees and total expenses were
reasonable compared to the median fee and expense levels of the comparable funds
in the indices (meaning at or below the median). The Board noted that the
Adviser had waived (and its continuing to waive) significant fees in respect of
the Fund to maintain an overall expense limitation, thus indicating a
substantial investment by t h e Adviser in that Fund. The Board concluded that
the reasonable level of the fees charged by t h e Adviser benefits the Fund and
its shareholders. The Board then considered the fees charged t o the Fund versus
the Adviser's private clients, but agreed it was not an applicable comparison
given the unique nature of the fund and the extra burden of administration,
compliance, deadlines, risk and regulations associated with the Fund that do not
apply to the private accounts. The Board determined that the respective peer
groups provided a better comparison and it found t h e Fund's fees reasonable.

4. Adviser, Costs, Level of Profits and Economies of Scale

-17-

5. Ancillary Benefits

The Board considered a variety of other benefits received by
the Adviser, i n cluding possible ancillary benefits to itself or its
institutional management business. The Board noted that the Adviser ceased the
use of third-party soft dollar products from trades by the Fund, and noted that
the small relative size of the Fund compared to the Adviser's other business
would suggest minimal possible fallout benefits.

6. Conclusions

Based on its review, including consideration of each of the
factors referred to above, the Board concluded that the Agreement is fair and
reasonable to the Fund and its shareholders, that the Fund's shareholders
received, and should receive, reasonable value in return for the advisory fees
paid to the Adviser by the Fund, and that the renewal of the Agreement was in
the best interests of the Fund and its shareholders.

-18-

OTHER INFORMATION -

PROXY VOTING PROCEDURES (UNAUDITED)

Information regarding how the Fund voted proxies relating to the portfolio
securities during the most recent 12-month period ended June 30 is available
without charge, upon request, by calling t o ll-free 1-800-841-0199. This
information is also available through the Securities and Exchange Commission's
website at HTTP://WWW.SEC.GOV.

FORM N-Q DISCLOSURE (UNAUDITED)

-19-

TRUSTEES AND OFFICER INFORMATION (Unaudited)

The Board of Trustees is responsible for the overall management of the
Trust's business. The Board of Trustees approves all significant agreements
between the Trust and persons or companies furnishing services to it, including
all agreements with the Adviser, Administrator, Custodian and Transfer Agent.
The Board of Trustees delegates the day-to-day operations of the Trust to its
Officers, subject to the Fund's investment objective and policies and to general
supervision by the Board of Trustees. The Statement of Additional Information
includes additional information about the Trust's Trustees and is available,
without charge, by calling 1-800-841-0199.

The Trustees and Officers of the Trust, their business addresses and
principal occupations during the past five years are:

NUMBER OF
PORTFOLIOS IN
FUND
COMPLEX OTHER
NAME, ADDRESS, POSITION(S) HELD YEAR PRINCIPAL OVERSEEN BY DIRECTOR-
DATE OF BIRTH WITH TRUST ELECTED(1) OCCUPATION(S) DURING PAST FIVE YEARS DIRECTOR HELD
- ---------------------------------------------------------------------------------------------------------------------------------

Kenneth L. Fisher* President 1996 Chief Executive Officer and majority 2 None
(born 1950) and Trustee shareholder of Fisher Investments, Inc.,
13100 Skyline Blvd. the sole shareholder of the Adviser,
Woodside, CA 94062 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 1979.

Pierson E. Clair III Trustee 1996 President and Chief Executive Officer 2 Signature
(born 1948) of Brown & Haley since 1998 (fine Foods, Inc.
13100 Skyline Blvd. confectioners); Vice President of Blummer
Woodside, CA 94062 Chocolate Company from 1980 to 1997,
where he had been employed since 1970.

Scott LeFevre Trustee 2001 Sole proprietor of LeFevre Capital 2 None
(born 1957) Management, a registered investment
13100 Skyline Blvd. adviser.
Woodside, CA 94062

Alfred D. McKelvy, Jr. Trustee 2003 Executive Director of the law firm of 2 East Bay
(born 1948) Berding & Weil, LLP since 1990. BOMA;
13100 Skyline Blvd. California;
Woodside, CA 94062: Heritage
(Advisory
Board).

Bryan F. Morse Trustee 1996 Sole proprietor of Bryan F. Morse, RIA, a 2 None
(born 1952) registered investment adviser since 1990.
13100 Skyline Blvd.
Woodside, CA 94062

Grover T. Wickersham Trustee 1996 Attorney in private practice in 2 None
(born 1949) Palo Alto, California. Prior to entering
13100 Skyline Blvd. private practice in June of 1981, served
Woodside, CA 94062 as a Branch Chief of the Los Angeles
Regional Office of the U.S. Securities and
Exchange Commission.

Tom Fishel Chief 2005 Vice President and Chief Compliance N/A None
(born 1960) Compliance Officer of the Adviser. Vice President
13100 Skyline Blvd. Officer of Charles Schwab & Co., Inc. from 1995
Woodside, CA 94062 to 2004, where he had been employed since 1983.

Keith Shintani Secretary and 2006 Vice President of U.S. Bancorp Fund N/A None
(born 1963) Assistant Services, LLC and its predecessor,
2020 East Financial Way Treasurer Investment Company Administration, LLC
Glendora, CA 91741 since 1998.

- -----------------
(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.

-20-

Michael Ricks Treasurer 2006 Assistant Vice President of U.S. N/A None
(born 1977) Bancorp Fund Services, LLC since 2001.
2020 East Financial Way
Glendora, CA 91741

- ----------------
(2) Trustees and officers of the Funds serve until their resignation, removal or
retirement.

-21-

PRIVACY NOTICE

Fisher Asset Management, LLC (doing business as Fisher Investments) and the
Purisima Funds 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 or others.

We do not disclose any non-public personal information about our clients or
former clients without the client's authorization, except as permitted by law.
We may disclose t h e non-public information we collect to employees and
affiliates, and unaffiliated third parties as permitted by law. Third parties
may include law enforcement agencies, government and regulatory authorities, and
professionals such as our legal counsel and auditors, and we may disclose
information for reasons such as audit purposes, prevention of fraud or money
laundering, protection of confidentiality, compliance with laws, and to provide
agreed upon products and services to you. Third parties may also include service
providers performing financial services for us (such as brokers and custodians)
and service providers performing non-financial services for us (such as third
parties performing computer related or data maintenance, marketing or other
services for us or to assist us in offering our products and services to you).
It is our policy to require all third party service providers that will receive
information to sign strict confidentiality agreements agreeing to safeguard such
information and use it only for the purpose it was provided.

-22-

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 registrants who are not listed issuers (as defined in Rule
10A-3 under the Securities Exchange Act of 1934).

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 PURCHASERS.

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.

-2-

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant's President and Treasurer have reviewed the Registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (the "Act")) as of a date within 90 days of
the filing of this report, as required by Rule 30a-3(b) under the Act and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.
Based on their review, such officers have concluded that the disclosure
controls and procedures are effective in ensuring that information required
to be disclosed in this report is appropriately recorded, processed,
summarized and reported and made known to them by others within the
Registrant and by the Registrant's service provider.

(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during
the second fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) ANY CODE OF ETHICS OR AMENDMENT THERETO, THAT IS SUBJECT OF THE
DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO
SATISFY ITEM 2 REQUIREMENTS THROUGH FILING AN EXHIBIT. Incorporated by
reference to the Registrant's Form N-CSR filed November 10, 2003.

(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.

-3-

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 1, 2008
---------------

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 1, 2008
-----------

By (Signature and Title)* /s/ Michael Ricks
---------------------------------
Michael Ricks, Treasurer

Date 04/30/08
--------

-4-