<Page>
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: 811-7062
PACIFIC GLOBAL FUND INC. D/B/A PACIFIC ADVISORS FUND INC.
(Exact name of registrant as specified in charter)
206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206
(Address of principal executive offices)
GEORGE A. HENNING 206 N. JACKSON ST., SUITE 301 GLENDALE, CA 91206
(Name and address of agent for service)
Registrant's telephone number, including area code: 818-242-6693
Date of fiscal year end: DECEMBER 31
Date of reporting period: JUNE 30, 2003
<Page>
[PACIFIC ADVISORS FUND INC. LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 2003
GOVERNMENT SECURITIES FUND
INCOME AND EQUITY FUND
BALANCED FUND
GROWTH FUND
MULTI-CAP VALUE FUND
SMALL CAP FUND
<Page>
PACIFIC ADVISORS
table of contents
SCHEDULE OF INVESTMENTS........................................................1
STATEMENT OF ASSETS AND LIABILITIES...........................................18
STATEMENT OF OPERATIONS.......................................................20
STATEMENT OF CHANGES IN NET ASSETS............................................22
NOTES TO FINANCIAL STATEMENTS.................................................26
FINANCIAL HIGHLIGHTS..........................................................31
<Page>
PACIFIC ADVISORS GOVERNMENT SECURITIES FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Principal
Amount Value
- ----------------------------------------------------------------
US GOVERNMENT SECURITIES - 89.55%
US Treasury Bonds
US Treasury Bond 6.00% 02/15/26 $ 800,000 $ 956,282
US Treasury Bond 6.25% 08/15/23 880,000 1,077,931
US Treasury Bond 6.375%
08/15/27 900,000 1,127,425
US Treasury Bond 6.50% 11/15/26 850,000 1,078,338
US Treasury Bond 6.75% 08/15/26 800,000 1,042,469
US Treasury Bond 6.875%
08/15/25 800,000 1,054,062
US Treasury Bond 7.125%
02/15/23 760,000 1,018,430
US Treasury Bond 7.50% 11/15/24 700,000 982,734
US Treasury Bond 7.625%
11/15/22 800,000 1,125,313
US Treasury Bond 7.625%
02/15/25 700,000 995,285
US Treasury Bond 7.875%
02/15/21 750,000 1,070,742
US Treasury Bond 8.00% 11/15/21 700,000 1,014,098
US Treasury Bond 8.125%
08/15/19 770,000 1,113,643
US Treasury Bond 8.125%
08/15/21 750,000 1,096,699
US Treasury Bond 8.75% 11/15/08 580,000 596,426
- ----------------------------------------------------------------
15,349,877
- ----------------------------------------------------------------
US Treasury Note
US Treasury Note 3.875%
07/31/03 100,000 100,238
- ----------------------------------------------------------------
US Government Agencies
Federal Farm Credit Bank 6.125%
12/29/15 520,000 617,670
- ----------------------------------------------------------------
TOTAL US GOVERNMENT SECURITIES
(Cost: $15,612,758) 16,067,785
-----------
<Caption>
Number of
Shares Value
- ----------------------------------------------------------------
COMMON STOCK - 4.66%
Utilities - Electric
Nisource, Inc. 14,700 279,300
Pepco Holding, Inc. 12,500 239,500
- ----------------------------------------------------------------
518,800
- ----------------------------------------------------------------
Utilities - Water
Philadelphia Suburban
Corporation 13,000 316,940
- ----------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $816,201) 835,740
-----------
TOTAL INVESTMENT SECURITIES - 94.21%
(Cost: $16,428,959) $16,903,525
-----------
SHORT-TERM INVESTMENTS - 4.25%
United Missouri Bank Money
Market Fund 761,954
OTHER ASSETS LESS LIABILITIES - 1.54% 276,590
-----------
TOTAL NET ASSETS - 100% $17,942,069
- ----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
1
<Page>
PACIFIC ADVISORS INCOME AND EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Principal
Amount Value
- -----------------------------------------------------------------
CORPORATE BONDS - 60.04%
Aerospace & Defense
McDonnell Douglas 9.75%
04/01/12 $ 75,000 $ 98,537
- -----------------------------------------------------------------
Banks - Regional
Bank of America Corporation
6.00% 03/15/06 70,000 76,530
First Union Corporation 6.824%
08/01/26 25,000 31,329
- -----------------------------------------------------------------
107,859
- -----------------------------------------------------------------
Communications
Citizens Utilities Company
7.45% 01/15/04 80,000 82,368
- -----------------------------------------------------------------
Cosmetic/Personal Care
Scott Paper Company 10.00%
03/15/05 60,000 68,170
- -----------------------------------------------------------------
Electrical
Northwestern Corporation 7.10%
08/01/05 125,000 123,125
- -----------------------------------------------------------------
Entertainment
Time Warner, Inc. 8.11%
08/15/06 100,000 114,969
- -----------------------------------------------------------------
Financial Services
Associates Corporation N.A.
8.55% 07/15/09 80,000 101,611
Ford Motor Credit Corporation
7.375% 10/28/09 50,000 52,416
General Motors Acceptance
Corporation 5.75% 11/10/03 120,000 121,654
- -----------------------------------------------------------------
275,681
- -----------------------------------------------------------------
Financial Services - Diversified
General Electric Capital
Corporation 8.50% 07/24/08 46,000 57,252
General Electric Capital
Corporation 8.65% 05/15/09 40,000 50,928
General Electric Capital
Corporation 8.875% 05/15/09 125,000 160,632
Norwest Financial Notes 6.00%
02/01/04 85,000 87,301
- -----------------------------------------------------------------
356,113
- -----------------------------------------------------------------
Food Retailers
Safeway, Inc. 9.875% 03/15/07 229,000 278,737
- -----------------------------------------------------------------
Heavy Machinery
Deere & Company 8.95% 06/15/19 55,000 69,996
- -----------------------------------------------------------------
Industrial
Caterpillar, Inc. 9.375%
08/15/11 84,000 114,116
Tyco International Group 4.95%
08/01/03 50,000 50,125
- -----------------------------------------------------------------
164,241
- -----------------------------------------------------------------
Insurance - Full Line
Cigna Corporation 8.25%
01/01/07 30,000 34,804
Transamerica Corporation 9.375%
03/01/08 100,000 123,778
- -----------------------------------------------------------------
158,582
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
2
<Page>
PACIFIC ADVISORS INCOME AND EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Principal
Amount Value
- -----------------------------------------------------------------
CORPORATE BONDS CONTINUED
Insurance - Life
American General Finance
Corporation 8.125% 08/15/09 $ 191,000 $ 237,004
- -----------------------------------------------------------------
Insurance - Specialty
MBIA, Inc. 9.375% 02/15/11 25,000 32,438
- -----------------------------------------------------------------
Oil - Integrated Majors
Enron Oil and Gas 6.50%
09/15/04 175,000 184,778
- -----------------------------------------------------------------
Retailers - Broadline
Dayton Hudson Company 10.00%
01/01/11 150,000 206,679
Wal-Mart Stores 8.00% 09/15/06 50,000 58,862
- -----------------------------------------------------------------
265,541
- -----------------------------------------------------------------
Telephone Systems
Ameritech Capital 6.30%
10/15/04 40,000 42,352
Bellsouth Capital Funding
Corporation 6.04% 11/15/26 85,000 94,728
GTE Hawaiian Telecom 6.75%
02/15/05 110,000 118,218
SBC Communications 6.59%
09/29/08 215,000 248,462
- -----------------------------------------------------------------
503,760
- -----------------------------------------------------------------
Utilities - Electric
Baltimore Gas & Electric 6.125%
07/01/03 32,000 32,000
Niagara Mohawk Power 9.75%
11/01/05 20,000 23,334
Public Service Electric & Gas
6.75% 03/01/06 50,000 55,928
Public Service Oklahoma 6.50%
06/01/05 50,000 53,861
Public Service Oklahoma 7.375%
12/01/04 30,000 32,221
- -----------------------------------------------------------------
197,344
- -----------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost: $3,093,429) 3,319,243
-----------
FOREIGN BONDS - 1.35%
Foreign Government
Ontario Province Canada 7.625%
06/22/04 70,000 74,402
- -----------------------------------------------------------------
TOTAL FOREIGN BONDS
(Cost: $72,723) 74,402
-----------
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK - 18.77%
Automobile Parts
Genuine Parts Company 2,000 64,020
- -----------------------------------------------------------------
Banks - Regional
Willmington Trust Company 1,000 29,350
- -----------------------------------------------------------------
Chemicals - Specialty
International Flavors and
Fragrances 1,000 31,930
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
3
<Page>
PACIFIC ADVISORS INCOME AND EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK CONTINUED
Diversified Companies
General Electric 2,000 $ 57,360
- -----------------------------------------------------------------
Electric
Dominion Resources 1,000 64,270
- -----------------------------------------------------------------
Financial Services - Specialty
Freddie Mac 1,000 50,770
- -----------------------------------------------------------------
Healthcare Provider
HCA, Inc. 1,000 32,040
- -----------------------------------------------------------------
Industrial Diversified
Tyco International, Ltd. 2,000 37,960
- -----------------------------------------------------------------
Insurance - Property
American International
Group, Inc. 1,000 55,180
Chubb Corporation 500 30,000
- -----------------------------------------------------------------
85,180
- -----------------------------------------------------------------
Insurance - Specialty
Caremark RX, Inc.* 2,000 51,360
- -----------------------------------------------------------------
Medical & Biotechnology
Johnson & Johnson 3,000 155,100
- -----------------------------------------------------------------
Mining - Diversified
Anglogold, Ltd. 1,000 31,900
Freeport McMoran 1,000 24,500
- -----------------------------------------------------------------
56,400
- -----------------------------------------------------------------
Pharmaceuticals
Pfizer, Inc. 2,500 85,375
- -----------------------------------------------------------------
Pipelines
El Paso Energy Corporation 1,000 8,080
- -----------------------------------------------------------------
Real Estate Investment Trusts
Hospitality Properties 5,000 156,250
- -----------------------------------------------------------------
Utilities
American Electric Power
Company, Inc. 1,000 29,830
Public Service Enterprise
Group, Inc. 1,000 42,250
- -----------------------------------------------------------------
72,080
- -----------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $1,195,894) 1,037,525
-----------
PREFERRED STOCK - 11.46%
Financial Services
Citigroup Capital VII 7.125%
07/31/31 2,000 54,400
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
4
<Page>
PACIFIC ADVISORS INCOME AND EQUITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
PREFERRED STOCK CONTINUED
Insurance - Full Line
ING Capital Funding Trust II 2,500 $ 70,975
- -----------------------------------------------------------------
Insurance - Life
American General Preferred C
7.875% 1,000 26,670
Northwestern Capital Financing 1,000 7,260
Phoenix Companies, Inc. 7.45%
01/15/32 3,500 91,630
Westpac Capital Trust I 8.00% 3,000 78,390
- -----------------------------------------------------------------
203,950
- -----------------------------------------------------------------
Insurance - Property
Farmers Group Capital II 8.25% 2,000 51,300
- -----------------------------------------------------------------
Real Estate Investment Trusts
Price Legacy Corporation
Preferred A 8.75% 15,000 252,750
- -----------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost: $605,960) 633,375
-----------
COMMERCIAL PAPER - 1.01%
Financial Services
Citigroup Global Markets
Holdings, Inc. 56,000 56,019
- -----------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $56,000) 56,019
-----------
TOTAL INVESTMENT SECURITIES - 92.63%
(Cost: $5,024,006) $ 5,120,564
-----------
SHORT-TERM INVESTMENTS - 3.80%
United Missouri Bank Money
Market Fund 209,985
OTHER ASSETS LESS LIABILITIES - 3.57% 197,585
-----------
TOTAL NET ASSETS - 100% $ 5,528,134
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
5
<Page>
PACIFIC ADVISORS BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- ------------------------------------------------------------------
COMMON STOCK - 45.00%
Advertising
Interpublic Group* 15,000 $ 200,700
- ------------------------------------------------------------------
Banks
Banco International De
Exportes* 45,200 360,244
- ------------------------------------------------------------------
Biotechnology
Cambrex Corporation 20,000 460,400
- ------------------------------------------------------------------
Chemicals - Specialty
Cabot Corporation 4,000 114,800
Cabot Micro Electronics, Inc.* 2,500 126,175
- ------------------------------------------------------------------
240,975
- ------------------------------------------------------------------
Communications
Nokia Corporation ADR 10,000 164,300
- ------------------------------------------------------------------
Containers/Packaging
Sealed Air Corporation* 5,000 238,300
- ------------------------------------------------------------------
Diversified Companies
General Electric 15,000 430,200
- ------------------------------------------------------------------
Electric
Duke Energy Corporation 25,000 498,750
Sony Corporation* 5,000 140,000
- ------------------------------------------------------------------
638,750
- ------------------------------------------------------------------
Entertainment
AT&T - Liberty Media Group
Class A* 12,000 138,720
Viacom, Inc.* 5,000 218,300
- ------------------------------------------------------------------
357,020
- ------------------------------------------------------------------
Financial Services
H&R Block 10,000 432,500
- ------------------------------------------------------------------
Financial Services - Diversified
Convergys Corporation* 9,000 144,000
- ------------------------------------------------------------------
Financial Services - Specialty
Freddie Mac 5,000 253,850
- ------------------------------------------------------------------
Food
Cadbury Schweppes 9,000 217,620
JM Smucker Company 5,000 199,450
- ------------------------------------------------------------------
417,070
- ------------------------------------------------------------------
Forest Products
Rayonier, Inc. 9,000 297,000
- ------------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
6
<Page>
PACIFIC ADVISORS BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- ------------------------------------------------------------------
COMMON STOCK CONTINUED
Industrial - Diversified
Cubic Corporation* 6,000 $ 133,320
Tyco International, Ltd. 15,000 284,700
- ------------------------------------------------------------------
418,020
- ------------------------------------------------------------------
Industrial & Commercial Services
GATX Corporation 10,000 163,500
Reliance Steel 8,000 165,600
- ------------------------------------------------------------------
329,100
- ------------------------------------------------------------------
Insurance - Full Line
Berkshire Hathaway, Inc. -
Class A* 3 217,500
- ------------------------------------------------------------------
Insurance - Life
MetLife, Inc.* 7,500 212,400
- ------------------------------------------------------------------
Media
AOL Time Warner 18,000 289,620
- ------------------------------------------------------------------
Medical & Biotechnology
Bristol Myers Squibb Company 15,000 407,250
Inverness Medical Innovations* 15,000 289,500
Johnson & Johnson 5,000 258,500
Wyeth 5,000 227,750
- ------------------------------------------------------------------
1,183,000
- ------------------------------------------------------------------
Medical Equipment
Perkin Elmer 8,000 110,480
- ------------------------------------------------------------------
Mining - Diversified
Rio Tinto PLC 3,000 229,650
- ------------------------------------------------------------------
Pharmaceuticals
Pfizer, Inc. 6,000 204,900
Pharmaceutical
Resources, Inc.* 5,000 243,300
- ------------------------------------------------------------------
243,300
- ------------------------------------------------------------------
Pipelines
Williams Companies, Inc. 30,000 237,000
- ------------------------------------------------------------------
Pollution/Waste Management
Waste Management* 6,000 144,540
- ------------------------------------------------------------------
Publishing
Moodys Corporation 5,000 263,550
R H Donnelley Corporation* 6,000 218,820
Scholastic Corporation 6,000 178,680
- ------------------------------------------------------------------
661,050
- ------------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
7
<Page>
PACIFIC ADVISORS BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- ------------------------------------------------------------------
COMMON STOCK CONTINUED
Real Estate
Catellus Development
Corporation* 12,000 $ 264,000
- ------------------------------------------------------------------
Retailers - Specialty
Michaels Stores, Inc.* 6,000 228,360
- ------------------------------------------------------------------
Software & Computer Processing Equipment
Reynolds & Reynolds 8,000 228,480
- ------------------------------------------------------------------
Technology
Lucent Technologies* 20,000 40,600
- ------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $7,704,548) 9,877,309
------------
<Caption>
Principal
Amount Value
- ------------------------------------------------------------------
CORPORATE BONDS - 44.32%
Aerospace & Defense
McDonnell Douglas 9.75%
04/01/12 $ 386,000 507,136
- ------------------------------------------------------------------
Banks - Regional
Bank of America Corporation
6.00% 03/15/06 100,000 109,328
- ------------------------------------------------------------------
Financial Services
Beneficial Corporation 8.40%
05/15/08 95,000 114,830
General Electric Capital 7.875%
12/01/06 250,000 292,764
General Electric Capital 8.125%
05/15/02 450,000 570,315
General Motors Acceptance
Corporation 5.75% 11/10/03 200,000 202,756
General Motors Acceptance
Corporation 8.75% 07/15/05 649,000 697,325
National Rural Utilities 6.00%
01/15/04 179,000 183,552
- ------------------------------------------------------------------
2,061,542
- ------------------------------------------------------------------
Food Retailers
Albertsons, Inc 6.56% 07/26/27 150,000 166,481
Safeway, Inc. 9.30% 02/01/07 224,000 267,692
Safeway, Inc. 9.65% 01/15/04 49,000 50,920
Safeway, Inc. 9.875% 03/15/07 625,000 760,746
- ------------------------------------------------------------------
1,245,839
- ------------------------------------------------------------------
Industrial
Tenneco Packaging PTV 8.00%
04/15/07 60,000 68,628
Tyco International Group 4.95%
08/01/03 180,000 180,450
- ------------------------------------------------------------------
249,078
- ------------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
8
<Page>
PACIFIC ADVISORS BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Principal
Amount Value
- ------------------------------------------------------------------
CORPORATE BONDS CONTINUED
Insurance - Full Line
Cigna Corporation 7.40%
05/15/07 $ 145,000 $ 166,298
Cigna Corporation 8.25%
01/01/07 376,000 436,210
Transamerica Corporation 9.375%
03/01/08 100,000 123,778
- ------------------------------------------------------------------
726,286
- ------------------------------------------------------------------
Media
Seagrams & Sons 7.00% 04/15/08 310,000 343,194
- ------------------------------------------------------------------
Medical Equipment
Mallinckrodt 6.50% 11/15/07 400,000 405,000
- ------------------------------------------------------------------
Oil - Integrated Majors
Atlantic Richfield 10.875%
07/15/05 289,000 340,920
Enron Oil & Gas 6.70% 11/15/06 107,000 119,726
Phillips Petroleum 6.375%
03/30/09 65,000 75,734
Enron Oil & Gas 6.50% 09/15/04 325,000 343,158
- ------------------------------------------------------------------
879,538
- ------------------------------------------------------------------
Semiconductor & Related Products
Gerber Products 9.00% 10/15/06 110,000 130,996
- ------------------------------------------------------------------
Telephone Systems
Ameritech Capital 6.30%
10/15/04 85,000 89,998
NYNEX Capital Fund 8.23%
10/15/09 550,000 678,803
NYNEX Corporation 9.55%
05/01/10 8,153 9,978
Pacific Bell 5.875% 02/15/06 55,000 60,501
SBC Communications 6.55%
10/07/08 265,000 305,802
- ------------------------------------------------------------------
1,145,082
- ------------------------------------------------------------------
Utilities - Electric
Baltimore Gas & Electric 5.50%
04/15/04 77,000 79,572
Cleveland Electric Illuminating
9.50% 05/15/05 143,000 143,863
Niagara Mohawk Power 8.00%
06/01/04 30,000 31,708
Niagara Mohawk Power 9.75%
11/01/05 453,000 528,517
Northwestern Corporation 7.00%
08/15/23 250,000 219,062
Northwestern Corporation 7.10%
08/01/05 305,000 300,425
Potomac Electric Power 6.50%
03/15/08 82,000 93,580
Public Service Electric & Gas
6.25% 01/01/07 84,000 93,595
Public Service Electric & Gas
7.375% 03/01/14 373,000 393,683
Reliant Energy Mid Atlantic
9.237% 07/02/17 49,281 41,105
- ------------------------------------------------------------------
1,925,110
- ------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost: $9,332,021) 9,728,129
------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
9
<Page>
PACIFIC ADVISORS BALANCED FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Principal
Amount Value
- ------------------------------------------------------------------
US GOVERNMENT SECURITIES - 0.96%
US Government Agencies
Federal Home Loan Bank 6.75%
08/10/16 $ 200,000 $ 211,246
- ------------------------------------------------------------------
TOTAL US GOVERNMENT SECURITIES
(Cost: $209,285) 211,246
------------
<Caption>
Number of
Shares Value
- ------------------------------------------------------------------
PREFERRED STOCK - 2.30%
Real Estate Investment Trusts
Price Legacy Corporation
Preferred A 8.75% 30,000 505,500
- ------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost: $420,630) 505,500
------------
COMMERCIAL PAPER - 2.42%
Financial Services
Citigroup Global
Holdings, Inc. 531,000 531,181
- ------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost: $529,297) 531,181
------------
TOTAL INVESTMENT SECURITIES - 95.00%
(Cost: $18,195,780) $ 20,853,365
------------
SHORT-TERM INVESTMENTS - 2.84%
United Missouri Bank Money
Market Fund 623,426
- ------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - 2.16% 474,796
------------
TOTAL NET ASSETS - 100% $ 21,951,587
- ------------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
10
<Page>
PACIFIC ADVISORS GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- ----------------------------------------------------------------
COMMON STOCK - 81.14%
Biotechnology
Cambrex Corporation 500 $ 11,510
- ----------------------------------------------------------------
Commercial Services
Tetra Technologies, Inc.* 1,250 21,413
- ----------------------------------------------------------------
Communications
HSBC Holding PLC* 160 9,458
- ----------------------------------------------------------------
Computers & Related Equipment
International Business Machines
Corporation 200 16,500
- ----------------------------------------------------------------
Containers/Packaging
Pactiv Corporation* 500 9,855
- ----------------------------------------------------------------
Diversified Companies
General Electric 1,000 28,680
- ----------------------------------------------------------------
Health Care Provider
Anthem, Inc.* 500 38,575
- ----------------------------------------------------------------
Home Furnishings
Furniture Brands, Inc.* 500 13,050
- ----------------------------------------------------------------
Industrial - Diversified
Tyco International, Ltd. 1,000 18,980
- ----------------------------------------------------------------
Insurance - Specialty
Advance PCS* 1,000 38,230
- ----------------------------------------------------------------
Medical & Biotechnology
Amgen, Inc.* 250 16,745
Johnson & Johnson 800 41,360
McKesson Corporation
HBOC, Inc. 500 17,870
Quest Diagnostics, Inc.* 300 19,140
- ----------------------------------------------------------------
95,115
- ----------------------------------------------------------------
Medical Equipment, Devices & Supplies
Becton, Dickinson and Company 500 19,425
St. Jude Medical, Inc.* 1,000 57,500
Zimmer Holdings, Inc.* 500 22,525
- ----------------------------------------------------------------
99,450
- ----------------------------------------------------------------
Media
Cox Communications* 1,000 31,900
- ----------------------------------------------------------------
Mining - Diversified
Anglogold, Ltd. 1,000 31,900
- ----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
11
<Page>
PACIFIC ADVISORS GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- ----------------------------------------------------------------
COMMON STOCK CONTINUED
Oil - Integrated Majors
Apache Corporation 500 $ 32,530
Exxon Mobil Corporation 400 14,364
- ----------------------------------------------------------------
46,894
- ----------------------------------------------------------------
Pharmaceuticals
Pfizer, Inc. 1,200 40,980
- ----------------------------------------------------------------
Restaurants
AppleBee's International 750 23,572
- ----------------------------------------------------------------
Retailers - Specialty
Linens 'n Things, Inc.* 1,000 23,610
- ----------------------------------------------------------------
Software & Computer Processing Equipment
Oracle Corporation* 800 9,616
Siebel Systems, Inc.* 500 4,770
- ----------------------------------------------------------------
14,386
- ----------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $661,806) 614,058
----------
TOTAL INVESTMENT SECURITIES - 81.14%
(Cost: $661,806) $ 614,058
----------
SHORT-TERM INVESTMENTS - 20.12%
United Missouri Bank Money
Market Fund 152,261
OTHER ASSETS LESS LIABILITIES - (1.26%) (9,555)
----------
TOTAL NET ASSETS - 100% $ 756,764
- ----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
12
<Page>
PACIFIC ADVISORS MULTI-CAP VALUE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK - 90.51%
Banks - Regional
Bay View Capital Corporation* 5,000 $ 28,900
FleetBoston Financial
Corporation 2,500 74,275
- -----------------------------------------------------------------
103,175
- -----------------------------------------------------------------
Building Materials
Home Depot, Inc. 2,000 66,240
- -----------------------------------------------------------------
Communications
AT&T Corporation 900 17,325
Comcast Corporation* 1,455 43,912
- -----------------------------------------------------------------
61,237
- -----------------------------------------------------------------
Computers & Related Equipment
Cisco Systems, Inc.* 5,000 82,950
EMC Corporation* 10,000 104,700
Unisys Corporation* 5,000 61,400
- -----------------------------------------------------------------
249,050
- -----------------------------------------------------------------
Consumer Services
Cendant Corporation* 5,000 91,600
- -----------------------------------------------------------------
Electrical Components & Equipment
Arrow Electronics, Inc.* 4,000 60,960
Calpine Corporation* 10,000 66,000
Qualcomm, Inc. 1,500 53,625
- -----------------------------------------------------------------
180,585
- -----------------------------------------------------------------
Entertainment
Vivendi Universal* 5,000 92,200
- -----------------------------------------------------------------
Financial Services
Nationwide Financial
Services, Inc. 1,000 32,500
- -----------------------------------------------------------------
Investment Companies
Goldman Sachs Group, Inc. 1,000 83,750
- -----------------------------------------------------------------
Media
AOL Time Warner 5,000 80,450
- -----------------------------------------------------------------
Medical & Biotechnology
Bristol Myers Squibb Company 3,000 81,450
Serlogicals Corporation* 5,000 68,150
Watson Pharmaceutical* 1,500 60,555
- -----------------------------------------------------------------
210,155
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
13
<Page>
PACIFIC ADVISORS MULTI-CAP VALUE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK CONTINUED
Pharmaceuticals
Pfizer, Inc. 2,000 $ 68,300
Schering-Plough Corporation 2,400 44,640
- -----------------------------------------------------------------
112,940
- -----------------------------------------------------------------
Retailers - Broadline
Duane Reade, Inc.* 2,000 29,500
Pier 1 Imports, Inc. 3,000 61,200
Target Corporation 2,000 75,680
- -----------------------------------------------------------------
166,380
- -----------------------------------------------------------------
Retailers - Drug Based
Sola International, Inc.* 5,000 87,000
- -----------------------------------------------------------------
Retailers - Specialty
Gap, Inc. 5,000 93,800
Radio Shack* 2,500 65,775
- -----------------------------------------------------------------
159,575
- -----------------------------------------------------------------
Semiconductor & Related
Intel Corporation 3,000 62,352
- -----------------------------------------------------------------
Technology
Lucent Technologies* 50,000 101,500
- -----------------------------------------------------------------
Telephone Systems
AT&T Wireless Services, Inc.* 10,000 82,100
SBC Communications 2,000 51,100
- -----------------------------------------------------------------
133,200
- -----------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $1,787,767) 2,073,889
-----------
TOTAL INVESTMENT SECURITIES - 90.51%
(Cost: $1,787,767) $ 2,073,889
-----------
SHORT-TERM INVESTMENTS - 8.41%
United Missouri Bank Money
Market Fund 192,676
OTHER ASSETS LESS LIABILITIES - 1.08% 24,642
-----------
TOTAL NET ASSETS - 100% $ 2,291,207
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
14
<Page>
PACIFIC ADVISORS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK - 105.94%
Apparel
Ashworth, Inc.* 34,000 $ 241,060
- -----------------------------------------------------------------
Auto Parts
Keystone Automotive
Industries, Inc.* 8,000 146,080
- -----------------------------------------------------------------
Banks - Regional
East West Bancorp, Inc. 6,000 216,840
Nara Bank National Association 10,000 190,000
- -----------------------------------------------------------------
406,840
- -----------------------------------------------------------------
Building Materials
Elcor Corporation 10,000 225,000
- -----------------------------------------------------------------
Commercial Services
Team, Inc.* 10,000 80,000
- -----------------------------------------------------------------
Communications
Bell Microproducts, Inc.* 28,000 119,560
Clearone Communications, Inc.* 15,000 33,000
- -----------------------------------------------------------------
152,560
- -----------------------------------------------------------------
Computers & Related Equipment
Intervoice, Inc.* 130,000 642,200
Tyler Technologies* 40,000 170,000
- -----------------------------------------------------------------
812,200
- -----------------------------------------------------------------
Construction - Building
Modtech Holding, Inc.* 10,000 91,900
- -----------------------------------------------------------------
Consumer Services
Service Corporation
International* 15,000 58,050
- -----------------------------------------------------------------
Containers/Packaging
Mobile Mini, Inc.* 20,000 326,600
- -----------------------------------------------------------------
Financial Services
First Cash Financial
Services, Inc.* 17,000 241,570
- -----------------------------------------------------------------
Food
Monterey Pasta Company* 25,000 123,750
- -----------------------------------------------------------------
Footwear
Genesco, Inc.* 12,000 212,400
- -----------------------------------------------------------------
Gas - Integrated
Denbury Resources, Inc.* 11,000 147,730
- -----------------------------------------------------------------
Golfing Equipment
Callaway Golf Company 10,000 132,200
- -----------------------------------------------------------------
Healthcare Provider
America Service Group* 22,000 393,800
United American Health Care* 50,000 92,500
- -----------------------------------------------------------------
486,300
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
15
<Page>
PACIFIC ADVISORS SMALL CAP FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Number of
Shares Value
- -----------------------------------------------------------------
COMMON STOCK CONTINUED
Home Furnishings
Haverty Furniture 14,000 $ 245,000
- -----------------------------------------------------------------
Insurance - Full Line
Gainsco, Inc.* 20,000 5,600
- -----------------------------------------------------------------
Insurance - Specialty
Warrantech Corporation* 30,000 36,000
- -----------------------------------------------------------------
Oil - Integrated Majors
Chesapeake Energy Corporation 12,000 121,200
Remington Oil & Gas
Corporation* 10,000 183,800
- -----------------------------------------------------------------
305,000
- -----------------------------------------------------------------
Oilfield Equipment & Services
Carbo Ceramics, Inc. 6,000 223,500
Seitel, Inc.* 25,000 5,500
- -----------------------------------------------------------------
229,000
- -----------------------------------------------------------------
Railroads
Railamerica, Inc.* 70,000 591,500
- -----------------------------------------------------------------
Retail - Auto Sales/Parts
Sonic Automotive, Inc.* 23,000 503,930
- -----------------------------------------------------------------
Retail - Mail Order Direct
Summit America
Television, Inc.* 25,000 72,250
- -----------------------------------------------------------------
Semiconductor & Related
Camtek Limited* 85,000 80,750
- -----------------------------------------------------------------
Software & Processing
Carreker Corporation* 43,000 196,940
- -----------------------------------------------------------------
Toys/Games
Racing Champions 8,000 136,080
- -----------------------------------------------------------------
Transportation
SCS Transportation* 5,000 63,150
US Xpress Enterprises* 8,200 87,412
- -----------------------------------------------------------------
150,562
- -----------------------------------------------------------------
Technology
MKS Instruments, Inc.* 4,000 72,280
- -----------------------------------------------------------------
TOTAL COMMON STOCK
(Cost: $5,847,224) 6,509,132
-----------
TOTAL INVESTMENT SECURITIES - 105.94%
(Cost: $5,847,224) $ 6,509,132
-----------
OTHER ASSETS LESS LIABILITIES - (5.94%) (365,124)
-----------
TOTAL NET ASSETS - 100% $ 6,144,008
- -----------------------------------------------------------------
</Table>
* Non-income producing
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
16
<Page>
(This page has been left blank intentionally.)
17
<Page>
PACIFIC ADVISORS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
INCOME
GOVERNMENT AND
SECURITIES EQUITY
FUND FUND
------------ ------------
ASSETS
Investment Securities
At cost $16,428,959 $ 5,024,006
=========== ===========
At market value $16,903,525 $ 5,120,564
Short-term investments, at cost, which is
equal to market 761,954 209,985
Accrued income receivable 247,409 70,413
Receivable from investment manager (Note 3) 858 964
Receivable for investments sold - 71,596
Receivable for capital shares sold 119,195 68,679
Other assets 2 -
----------- -----------
Total assets 18,032,943 5,542,201
----------- -----------
LIABILITIES
Bank Overdraft - -
Payable for investments purchased - -
Payable for fund shares redeemed 73,897 9,362
Accounts payable 17,308 5,679
Accounts payable to related parties (Note 3) (331) (974)
Payable to Investment Manager (Note 3) - -
----------- -----------
Total liabilities 90,874 14,067
----------- -----------
NET ASSETS $17,942,069 $ 5,528,134
----------- -----------
SUMMARY OF SHAREHOLDERS' EQUITY
Paid in capital 17,421,654 5,553,737
Accumulated undistributed net investment
income (2,316) 1,627
Accumulated undistributed net realized gain
(losses) on security transaction 48,166 (123,788)
Net unrealized appreciation (depreciation) of
investments 474,565 96,558
----------- -----------
Net assets at June 30, 2003 $17,942,069 $ 5,528,134
----------- -----------
CLASS A:
Net assets $ 3,671,023 $ 1,979,755
=========== ===========
Shares authorized 50,000,000 50,000,000
Shares outstanding 352,926 195,865
Net asset value and redemption price per share $ 10.40 $ 10.11
=========== ===========
Maximum offering price per share $ 10.92 $ 10.61
Sales load 4.75% 4.75%
CLASS C:
Net assets $14,271,046 $ 3,548,379
=========== ===========
Shares authorized 50,000,000 50,000,000
Shares outstanding 1,409,129 362,269
Net asset value and redemption price per share $ 10.13 $ 9.79
=========== ===========
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
18
<Page>
- --------------------------------------------------------------------------------
<Table>
<Caption>
MULTI-CAP SMALL
BALANCED GROWTH VALUE CAP
FUND FUND FUND FUND
------------ ------------ ------------ ------------
ASSETS
Investment Securities
At cost $18,195,780 $ 661,806 $ 1,787,767 $ 5,847,224
=========== =========== =========== ===========
At market value $20,853,364 $ 614,057 $ 2,073,889 $ 6,509,132
Short-term investments, at cost, which is
equal to market 623,426 152,261 192,676 -
Accrued income receivable 203,093 592 1,223 1,017
Receivable from investment manager (Note 3) - 3,113 5,195 -
Receivable for investments sold 135,972 - - 107,662
Receivable for capital shares sold 167,357 355 21,125 1,304
Other assets - - - -
----------- ----------- ----------- -----------
Total assets 21,983,212 770,378 2,294,108 6,619,115
----------- ----------- ----------- -----------
LIABILITIES
Bank Overdraft - - - 322,755
Payable for investments purchased - 10,014 - 26,320
Payable for fund shares redeemed - 1,000 - 128,475
Accounts payable 9,954 1,443 2,353 (4,675)
Accounts payable to related parties (Note 3) 8,296 1,157 548 (1,501)
Payable to Investment Manager (Note 3) 13,375 - - 3,733
----------- ----------- ----------- -----------
Total liabilities 31,625 13,614 2,901 475,107
----------- ----------- ----------- -----------
NET ASSETS $21,951,587 $ 756,764 $ 2,291,207 $ 6,144,008
----------- ----------- ----------- -----------
SUMMARY OF SHAREHOLDERS' EQUITY
Paid in capital 18,924,015 1,570,293 2,164,145 7,064,182
Accumulated undistributed net investment
income 48,837 (56,439) (45,001) (2,042,730)
Accumulated undistributed net realized gain
(losses) on security transaction 321,150 (709,342) (114,058) 460,648
Net unrealized appreciation (depreciation) of
investments 2,657,585 (47,748) 286,121 661,908
----------- ----------- ----------- -----------
Net assets at June 30, 2003 $21,951,587 $ 756,764 $ 2,291,207 $ 6,144,008
----------- ----------- ----------- -----------
CLASS A:
Net assets $ 4,280,547 $ 560,036 $ 675,472 $ 5,525,850
=========== =========== =========== ===========
Shares authorized 50,000,000 50,000,000 50,000,000 50,000,000
Shares outstanding 288,211 90,824 69,696 438,493
Net asset value and redemption price per share $ 14.85 $ 6.17 $ 9.69 $ 12.60
=========== =========== =========== ===========
Maximum offering price per share $ 15.76 $ 6.55 $ 10.28 $ 13.37
Sales load 5.75% 5.75% 5.75% 5.75%
CLASS C:
Net assets $17,671,039 $ 196,728 $ 1,615,735 $ 618,158
=========== =========== =========== ===========
Shares authorized 50,000,000 50,000,000 50,000,000 50,000,000
Shares outstanding 1,221,753 33,248 167,991 52,628
Net asset value and redemption price per share $ 14.46 $ 5.92 $ 9.62 $ 11.75
=========== =========== =========== ===========
</Table>
19
<Page>
PACIFIC ADVISORS FUND INC.
STATEMENT OF OPERATIONS (UNAUDITED)
For the period ended June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
INCOME
GOVERNMENT AND
SECURITIES EQUITY
FUND FUND
----------- ----------
INVESTMENT INCOME
Dividends $ 19,712 $ 42,212
Interest 315,584 99,949
---------- ---------
Total Income 335,296 142,161
---------- ---------
EXPENSES
Investment Management
Fees 52,584 20,185
Transfer Agent Fees 18,639 14,764
Fund Accounting Fees 34,707 12,336
Legal Fees 10,665 4,527
Audit Fees 11,091 4,418
Registration Fees 7,072 3,589
Printing 2,960 1,935
Custody Fees 5,437 4,287
Director
Fees/Meetings 1,440 538
Distribution Fees
(Note 3) 64,640 19,449
Other Expense 1,957 4,384
---------- ---------
Total Expenses,
before
reimbursements 211,192 90,412
Less fees waived and
expenses
reimbursed
(Note 3) 32,361 27,751
---------- ---------
Net Expenses 178,831 62,661
---------- ---------
NET INVESTMENT INCOME
(LOSS) 156,465 79,500
---------- ---------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net Realized gain
(loss) on
investments 46,946 40,534
Net Unrealized
appreciation
(depreciation) of
investments 274,198 81,157
---------- ---------
321,144 121,691
---------- ---------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS $ 477,609 $ 201,191
---------- ---------
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
20
<Page>
- --------------------------------------------------------------------------------
<Table>
<Caption>
MULTI-CAP SMALL
BALANCED GROWTH VALUE CAP
FUND FUND FUND FUND
--------- ---------- ---------- ------------
INVESTMENT INCOME
Dividends $ 75,792 $ 2,785 $ 4,681 $ 9,695
Interest 307,786 178 295 5
-------- --------- --------- -----------
Total Income 383,578 2,963 4,976 9,700
-------- --------- --------- -----------
EXPENSES
Investment Management
Fees 72,090 2,557 9,589 19,088
Transfer Agent Fees 33,429 12,687 15,001 22,624
Fund Accounting Fees 52,166 7,950 8,828 17,014
Legal Fees 19,440 473 1,569 6,872
Audit Fees 17,615 631 1,721 1,869
Registration Fees 17,724 51 476 11,426
Printing 16,879 505 1,534 10,006
Custody Fees 5,767 3,474 3,447 8,227
Director
Fees/Meetings 2,897 49 191 810
Distribution Fees
(Note 3) 81,215 1,546 7,498 8,274
Other Expense 2,826 1,269 1,449 978
-------- --------- --------- -----------
Total Expenses,
before
reimbursements 322,049 31,191 51,303 107,188
Less fees waived and
expenses
reimbursed
(Note 3) - 21,745 22,296 -
-------- --------- --------- -----------
Net Expenses 322,049 9,446 29,007 107,188
-------- --------- --------- -----------
NET INVESTMENT INCOME
(LOSS) 61,529 (6,483) (24,031) (97,488)
-------- --------- --------- -----------
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net Realized gain
(loss) on
investments 390,369 8,318 - 293,765
Net Unrealized
appreciation
(depreciation) of
investments 1,135,642 79,211 423,689 938,383
-------- --------- --------- -----------
1,526,011 87,529 423,689 1,232,148
-------- --------- --------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING FROM
OPERATIONS $1,587,540 $ 81,046 $ 399,658 $ 1,134,660
-------- --------- --------- -----------
</Table>
21
<Page>
PACIFIC ADVISORS FUND INC.
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GOVERNMENT SECURITIES FUND
----------------------------------
Period ended Year ended
June 30, 2003 December 31, 2002
-------------- ------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss) $ 156,465 $ 246,914
Net realized gain
(loss) on
investments 46,946 20,145
Change in net
unrealized
appreciation
(depreciation) of
investments 274,198 39,088
------------- -------------
Increase (decrease)
in net assets
resulting from
operations 477,609 306,147
------------- -------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS
Class A:
Net investment
income (43,076) (102,475)
Net capital
gains - (5,601)
Class C:
Net investment
income (126,872) (132,819)
Net capital
gains - (14,669)
------------- -------------
Decrease in net
assets resulting
from distributions (169,948) (255,564)
------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS
(NOTE 5)
Proceeds from shares
sold 3,393,725 7,573,729
Proceeds from shares
purchased by
reinvestment of
dividends 157,274 212,774
Cost of shares
repurchased (899,583) (3,513,492)
------------- -------------
Increase (decrease)
in net assets
derived from
capital share
transactions 2,651,416 4,273,011
------------- -------------
INCREASE (DECREASE)
IN NET ASSETS 2,959,077 4,323,594
NET ASSETS
Beginning of period 14,982,992 10,659,398
------------- -------------
End of period $ 17,942,069 $ 14,982,992
------------- -------------
</Table>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
22
<Page>
- --------------------------------------------------------------------------------
<Table>
<Caption>
INCOME AND EQUITY FUND BALANCED FUND
---------------------------------- ----------------------------------
Period ended Year ended Period ended Year ended
June 30, 2003 December 31, 2002 June 30, 2003 December 31, 2002
-------------- ------------------ -------------- ------------------
INCREASE (DECREASE) IN
NET ASSETS
FROM OPERATIONS
Net investment income
(loss) $ 79,500 $ 145,083 $ 61,529 $ (1,817)
Net realized gain
(loss) on
investments 40,534 (92,116) 390,369 28,521
Change in net
unrealized
appreciation
(depreciation) of
investments 81,157 (88,820) 1,135,642 (716,764)
------------- ------------- ------------- -------------
Increase (decrease)
in net assets
resulting from
operations 201,191 (35,853) 1,587,540 (690,060)
------------- ------------- ------------- -------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS
Class A:
Net investment
income (36,997) (67,712) - (289)
Net capital
gains - - - -
Class C:
Net investment
income (54,665) (66,254) - (1,031)
Net capital
gains - - - -
------------- ------------- ------------- -------------
Decrease in net
assets resulting
from distributions (91,662) (133,966) - (1,320)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE
TRANSACTIONS
(NOTE 5)
Proceeds from shares
sold 341,103 2,399,131 3,156,216 8,404,741
Proceeds from shares
purchased by
reinvestment of
dividends 84,053 113,190 - 1,320
Cost of shares
repurchased (407,182) (1,014,874) (804,200) (2,119,375)
------------- ------------- ------------- -------------
Increase (decrease)
in net assets
derived from
capital share
transactions 17,974 1,497,447 2,352,016 6,286,686
------------- ------------- ------------- -------------
INCREASE (DECREASE)
IN NET ASSETS 127,503 1,327,628 3,939,556 5,595,306
NET ASSETS
Beginning of period 5,400,631 4,073,003 18,012,031 12,416,725
------------- ------------- ------------- -------------
End of period $ 5,528,134 $ 5,400,631 $ 21,951,587 $ 18,012,031
------------- ------------- ------------- -------------
</Table>
23
<Page>
PACIFIC ADVISORS FUND INC.
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH FUND
----------------------------------
Period ended Year ended
June 30, 2003 December 31, 2002
-------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) $ (6,483) $ (18,437)
Net realized gain (loss) on
investments 8,318 (71,062)
Change in net unrealized
appreciation (depreciation) of
investments 79,211 (116,699)
------------- -------------
Increase (decrease) in net assets
resulting from operations 81,046 (206,198)
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Class A:
Net investment income - -
Net capital gains - -
Class C:
Net investment income - -
Net capital gains - -
------------- -------------
Decrease in net assets resulting
from distributions - -
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(NOTE 5)
Proceeds from shares sold 55,469 122,458
Proceeds from shares purchased by
reinvestment of dividends - -
Cost of shares repurchased (33,670) (289,881)
------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions 21,799 (167,423)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS 102,845 (373,621)
NET ASSETS
Beginning of period 653,919 1,027,540
------------- -------------
End of period $ 756,764 $ 653,919
------------- -------------
</Table>
(c) Commencement of Operations
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
24
<Page>
- --------------------------------------------------------------------------------
<Table>
<Caption>
MULTI-CAP VALUE FUND SMALL CAP FUND
---------------------------------- ----------------------------------
April 1, 2002 (c)
Period ended to Period ended Year ended
June 30, 2003 December 31, 2002 June 30, 2003 December 31, 2002
-------------- ------------------ -------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income (loss) $ (24,031) $ (20,970) $ (97,488) $ (295,608)
Net realized gain (loss) on
investments - (114,058) 293,765 (712)
Change in net unrealized
appreciation (depreciation) of
investments 423,689 (137,567) 938,383 (2,490,446)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
resulting from operations 399,658 (272,595) 1,134,660 (2,786,766)
------------- ------------- ------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Class A:
Net investment income - - - -
Net capital gains - - - (2,964)
Class C:
Net investment income - - - -
Net capital gains - - - (359)
------------- ------------- ------------- -------------
Decrease in net assets resulting
from distributions - - - (3,323)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(NOTE 5)
Proceeds from shares sold 225,820 2,141,908 187,381 1,054,134
Proceeds from shares purchased by
reinvestment of dividends - - - 3,323
Cost of shares repurchased (83,963) (119,621) (484,647) (1,561,561)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions 141,857 2,022,287 (297,266) (504,104)
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS 541,515 1,749,692 837,394 (3,294,193)
NET ASSETS
Beginning of period 1,749,692 - 5,306,614 8,600,807
------------- ------------- ------------- -------------
End of period $ 2,291,207 $ 1,749,692 $ 6,144,008 $ 5,306,614
------------- ------------- ------------- -------------
</Table>
(c) Commencement of Operations
25
<Page>
PACIFIC ADVISORS FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Pacific Advisors Fund Inc. (the "Company") is an open-end diversified
investment management company registered under the Investment Company Act of
1940, as amended. The currently offers six Funds: Government Securities Fund,
Income and Equity Fund, Balanced Fund, Growth Fund, Multi-Cap Value Fund and
Small Cap Fund. Each Fund is a separate investment portfolio of the Company with
a distinct investment objective, investment program, policies and restrictions.
The Government Securities Fund seeks to provide high current income,
preservation of capital, and rising future income, consistent with prudent
investment risk. The Income and Equity Fund seeks to provide current income and
secondarily, long-term capital appreciation. The Balanced Fund seeks to achieve
long-term capital appreciation and income consistent with reduced market risk.
The Growth Fund seeks to achieve long-term capital appreciation through
investment in medium to large capitalization companies. The Multi-Cap Value Fund
seeks long-term capital appreciation by investing in a diversified portfolio of
large to small capitalization companies. The Small Cap Fund seeks to provide
capital appreciation through investment in small capitalization companies.
Effective April 1, 1998, the Funds offer Class A and Class C shares,
each of which has equal rights as to assets and voting privileges except that
Class A and Class C each has exclusive voting rights with respect to its
distribution plan. Investment income, realized and unrealized capital gains and
losses, and the common expenses of each Fund are allocated on a pro rata basis
to each class based on the relative net assets of each class to the total net
assets of the Fund. Each Class of shares differs in its respective service and
distribution expenses and may differ in its transfer agent, registration, and
certain other class-specific fees and expenses.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A. SECURITY VALUATION. Securities listed on a national securities
exchange and certain over-the counter ("OTC") issues traded on the NASDAQ
national market system are valued at the last quoted sale price at the close of
the New York Stock Exchange. OTC issues not quoted on the NASDAQ system and
other equity securities for which no sale price is available, are valued at the
last bid price as obtained from published sources (including Quotron), where
available, and otherwise from brokers who are market makers for such securities.
Debt securities with a maturity of less than 60 days are valued on an amortized
cost basis. Premium or discount on debt securities are amortized.
B. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Security transactions
are accounted for on the trade date. The cost of investments sold is determined
by use of the specific identification method for both financial reporting and
Federal Income tax purposes. Dividends are recorded on the ex-dividend date.
Interest income is recorded on an accrual basis.
C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. The Government
Securities Fund and Income and Equity Fund declare and distribute dividends of
their net investment income, if any, quarterly. The Balanced Fund, Growth Fund,
Multi-Cap Value Fund and Small Cap Fund declare and distribute dividends of
their net investment income, if any, annually. The Board of Directors will
determine the amount and timing of such payments. Income dividends and capital
gains distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments of income and gain on
various investment securities held by the Funds, timing differences and
differing characterization of distributions made by the Fund.
E. USE OF ESTIMATES. The preparation of financial statements in
conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported
amounts in the financial statements and footnotes. Actual results could differ
from those estimates.
NOTE 3. INVESTMENT MANAGEMENT, DISTRIBUTOR AND OTHER RELATED PARTY TRANSACTIONS
The Company and the Funds have entered into investment management
agreements ("Management Agreements") with Pacific Global Investment Management
Company, Inc. ("Investment Manager").
The Management Agreements provide for investment management fees,
payable monthly, and calculated at the maximum annual rate of 0.65% of average
net assets for the Government Securities Fund, 0.75% of average net assets for
the Income and Equity, Balanced, Growth and Small Cap Funds and 1.00% of average
net assets for the Multi-Cap Value Fund. The Investment Manager has entered into
sub-advisory agreements ("Sub-Advisory Agreement") with Bache Capital
Management, Spectrum Asset Management, Inc. and Meyers Capital Management, LLC
("Advisors") for the Balanced, Government Securities and Multi-Cap Value Funds,
respectively. It has also entered into a co-management agreement ("Co-management
Agreement") with Bache Capital Management ("Advisor") for the Income and Equity
Fund. The Investment Manager is solely responsible for the payment of these fees
to the Advisors.
In accordance with Expense Limitation agreements with the Company, the
Investment Manager is required to waive fees and/or reimburse expenses in
amounts necessary to keep the total Fund operating expenses of certain Funds (as
a percentage of average net assets) at or below the percentages shown below:
<Table>
<Caption>
Class A Class C
Government Securities Fund 1.65% 2.40%
Income and Equity Fund 1.85% 2.60%
Growth Fund 2.50% 3.25%
Multi-Cap Value Fund 2.50% 3.25%
</Table>
These agreements may be terminated by either party. In addition, from
time to time, the Investment Manager and Advisors may voluntarily waive their
management and sub-advisory fees, and/or absorb certain expenses for the Funds.
Pursuant to the Expense Limitation Agreements, voluntary waiver of fees
and the assumption of expenses by the
26
<Page>
PACIFIC ADVISORS FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
Investment Manager, the following amounts were waived or reimbursed for the
period ended June 30, 2003.
<Table>
<Caption>
Management Expense
Fees Reimbursements
Government Securities Fund $ 29,503 $ 2,858
Income and Equity Fund 20,185 7,566
Growth Fund 2,557 19,188
Multi-Cap Value Fund 9,589 12,707
</Table>
With the exception of the Growth Fund and the Multi-Cap Value Fund,
these waived and reimbursed expenses may be subject to future recoupment by the
Investment Manager.
Fund operating expenses may not fall below the current expense levels in
subsequent years until the Investment Manager has fully recouped fees forgone
and expenses paid or assumed, as each fund will reimburse the Investment Manager
in subsequent years during which the Fund's total assets are greater than
$20,000,000. Such recoupments, if any, are limited to a period of five years
from the date on which the first reimbursement is made to the Investment Manager
on a fund by fund basis. As of June 30, 2003, no reimbursements have been made.
The cumulative amounts unrecouped by the Investment Manager since the
commencement of operations are:
<Table>
Government Securities Fund $946,844
Income and Equity Fund 692,900
Balanced Fund 330,893
Small Cap Fund 217,445
</Table>
For the period ended June 30, 2003, Pacific Global Fund
Distributors, Inc. ("PGFD"), the principal underwriter for the Company, received
commissions on sales of capital stock, after deducting amounts allowed to
authorized distributors as commissions. The amounts are as follows:
<Table>
<Caption>
Underwriting
Fees Commissions
Retained Paid
Government Securities Fund $ 515 $ 2,796
Income and Equity Fund 348 1,824
Balanced Fund 862 4,142
Growth Fund 285 1,074
Multi-Cap Value fund 435 2,072
Small Cap Fund 1,237 5,803
</Table>
PGFD is a wholly-owned subsidiary of the Investment Manager.
The Company and the Funds have entered into agreements with Pacific
Global Investor Services, Inc. ("PGIS") to provide fund accounting services at
the monthly fee of three basis points for the first one hundred million in net
assets or a minimum of $1,250. In addition, agreements to provide transfer agent
services has also been entered into at a rate of $18.00 per year per open
account and $2.00 per year per closed account with minimum charges of $1,250 per
month and $750 per month, respectively, for A and C share accounts. PGIS is a
wholly owned subsidiary of the Investment Manager.
Accounts payable to related parties consists of management fees payable
to the Investment Manager and fund accounting and transfer agent fees payable to
PGIS.
The Company has adopted a plan of distribution, whereby the Funds may
pay a service fee to qualified recipients in an amount up to 0.25% and 1.00% per
annum of each Fund's daily net net assets for A shares and C shares,
respectively. For the period ended June 30, 2003, total service fees were:
<Table>
Government Securities Fund $64,640
Income and Equity Fund 19,449
Balanced Fund 81,215
Growth Fund 1,546
Multi-Cap Value Fund 7,498
Small Cap Fund 8,274
</Table>
NOTE 4. PURCHASE AND SALES OF SECURITIES
The following summarizes purchases and sales of investment securities,
other than short-term investments, and aggregate gross unrealized appreciation
and depreciation on tax basis by each Fund for the period ended and as of
June 30, 2003.
<Table>
<Caption>
Period ended June 30, 2003
Period ended June 30, 2003 Gross Gross Net Unrealized
Cost of Proceeds Unrealized Unrealized Appreciation
Purchases From Sales Appreciation Depreciation (Depreciation)
Government Securities
Fund $9,479,910 $12,226,046 $ 655,914 $ 181,348 $ 474,566
Income and Equity Fund 1,464,147 1,842,116 312,838 216,280 96,558
Balanced Fund 6,873,874 5,907,717 2,903,144 245,560 2,657,584
Growth Fund 180,451 177,588 69,824 117,572 (47,748)
Multi-Cap Value Fund 56,050 - 365,782 79,661 286,121
Small Cap Fund 650,795 1,029,243 2,268,191 1,606,283 661,908
</Table>
27
<Page>
PACIFIC ADVISORS FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
NOTE 5. CAPITAL SHARE TRANSACTIONS
<Table>
<Caption>
Period ended Year ended
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
GOVERNMENT SECURITIES FUND
CLASS A
Shares Sold 8,161 $ 85,639 34,514 $ 344,746
Reinvestment of Distributions 3,012 30,912 6,725 67,376
-------- ---------- -------- ----------
11,173 116,551 41,239 412,122
Shares Repurchased (62,675) (642,331) (275,743) (2,761,975)
-------- ---------- -------- ----------
Net Increase (decrease) (51,502) $ (525,780) (234,504) $(2,349,853)
======== ========== ======== ==========
CLASS C
Shares Sold 330,639 $3,308,086 734,170 $7,228,983
Reinvestment of Distributions 12,620 126,362 14,769 145,398
-------- ---------- -------- ----------
343,259 3,434,448 748,939 7,374,381
Shares Repurchased (25,794) (257,252) (76,231) (751,517)
-------- ---------- -------- ----------
Net Increase 317,465 $3,177,196 672,708 $6,622,864
======== ========== ======== ==========
</Table>
<Table>
<Caption>
Period ended Year ended
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
INCOME AND EQUITY FUND
CLASS A
Shares Sold 4,554 $ 46,204 21,069 $ 212,796
Reinvestment of Distributions 3,054 30,255 4,889 48,737
-------- ---------- -------- ----------
7,608 76,459 25,958 261,533
Shares Repurchased (25,334) (252,898) (75,086) (759,225)
-------- ---------- -------- ----------
Net Increase (decrease) (17,726) $ (176,439) (49,128) $ (497,692)
======== ========== ======== ==========
CLASS C
Shares Sold 30,604 $ 294,899 225,675 $2,186,335
Reinvestment of Distributions 5,608 53,798 6,684 64,453
-------- ---------- -------- ----------
36,212 348,697 232,359 2,250,788
Shares Repurchased (15,945) (154,284) (26,493) (255,649)
-------- ---------- -------- ----------
Net Increase 20,267 $ 194,413 205,866 $1,995,139
======== ========== ======== ==========
</Table>
28
<Page>
PACIFIC ADVISORS FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
Period ended Year ended
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
BALANCED FUND
CLASS A
Shares Sold 25,583 $ 352,604 26,018 $ 361,430
Reinvestment of Distributions - - 21 289
-------- ---------- -------- ----------
25,583 352,604 26,039 361,719
Shares Repurchased (27,839) (379,918) (83,109) (1,156,538)
-------- ---------- -------- ----------
Net Decrease (2,256) $ (27,314) (57,070) $ (794,819)
======== ========== ======== ==========
CLASS C
Shares Sold 206,107 $2,803,612 597,800 $8,043,311
Reinvestment of Distributions - - 77 1,031
-------- ---------- -------- ----------
206,107 2,803,612 597,877 8,044,342
Shares Repurchased (31,805) (424,282) (72,607) (962,837)
-------- ---------- -------- ----------
Net Increase 174,302 $2,379,330 525,270 $7,081,505
======== ========== ======== ==========
</Table>
<Table>
<Caption>
Period ended Year ended
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
GROWTH FUND
CLASS A
Shares Sold 9,306 $ 52,995 15,090 $ 93,215
Reinvestment of Distributions - - - -
-------- ---------- -------- ----------
9,306 52,995 15,090 93,215
Shares Repurchased (3,091) (18,279) (14,076) (91,777)
-------- ---------- -------- ----------
Net Increase (decrease) 6,215 $ 34,716 1,014 $ 1,438
======== ========== ======== ==========
CLASS C
Shares Sold 447 $ 2,474 4,662 $ 29,243
Reinvestment of Distributions - - - -
-------- ---------- -------- ----------
447 2,474 4,662 29,243
Shares Repurchased (2,820) (15,391) (32,761) (198,104)
-------- ---------- -------- ----------
Net Decrease (2,373) $ (12,917) (28,099) $ (168,861)
======== ========== ======== ==========
</Table>
29
<Page>
PACIFIC ADVISORS FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
April 1, 2002 (c)
Period ended to
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
MULTI-CAP VALUE FUND
CLASS A
Shares Sold 14,091 $ 118,296 66,523 $ 603,547
Reinvestment of Distributions - - - -
-------- ---------- -------- ----------
14,091 $ 118,296 66,523 603,547
Shares Repurchased (7,576) (63,979) (3,342) (27,691)
-------- ---------- -------- ----------
Net Increase 6,515 $ 54,317 63,181 $ 575,856
======== ========== ======== ==========
CLASS C
Shares Sold 12,663 $ 107,524 169,379 $1,538,361
Reinvestment of Distributions - - - -
-------- ---------- -------- ----------
12,663 $ 107,523 169,379 1,538,361
Shares Repurchased (2,413) (19,984) (11,638) (91,930)
-------- ---------- -------- ----------
Net Increase 10,250 $ 87,539 157,741 $1,446,431
======== ========== ======== ==========
</Table>
<Table>
<Caption>
Period ended Year ended
June 30, 2003 December 31, 2002
-------------------- --------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
SMALL CAP FUND
CLASS A
Shares Sold 17,258 $ 175,383 60,959 $ 843,468
Reinvestment of Distributions - - 283 2,964
-------- ---------- -------- ----------
17,258 $ 175,383 61,242 846,432
Shares Repurchased (40,494) (436,181) (105,947) (1,342,073)
-------- ---------- -------- ----------
Net Increase (decrease) (23,236) $ (260,798) (44,705) $ (495,641)
======== ========== ======== ==========
CLASS C
Shares Sold 1,281 $ 11,998 16,170 $ 210,665
Reinvestment of Distributions - - 37 359
-------- ---------- -------- ----------
1,281 $ 11,998 16,207 211,024
Shares Repurchased (4,933) (48,466) (21,161) (219,488)
-------- ---------- -------- ----------
Net Increase (decrease) (3,652) $ (36,468) (4,954) $ (8,464)
======== ========== ======== ==========
</Table>
(c) Commencement of operations
30
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GOVERNMENT SECURITIES FUND
------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 10.20 $ 10.15 $ 10.88 $ 9.74 $ 10.59
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment income 0.15 0.31 0.31 0.35 0.30
Net realized and unrealized gains
(losses) on securities 0.17 (0.04) (0.37) 1.41 (0.84)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 0.32 0.27 (0.06) 1.76 (0.54)
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income (0.12) (0.21) (0.29) (0.34) (0.29)
From net capital gains - (0.01) (0.38) (0.28) (0.02)
----------------- ------------ ------------ ------------ ------------
Total distributions (0.12) (0.22) (0.67) (0.62) (0.31)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 10.40 $ 10.20 $ 10.15 $ 10.88 $ 9.74
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 3.15% 2.78% (0.49)% 18.42% (5.04)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 3,671 $ 4,125 $ 6,487 $ 6,071 $ 5,220
Ratio of net investment income to
average net assets
With expense reductions 1.20% 2.57% 3.01% 3.46% 2.99%
Without expense reductions 1.01% 1.42% 2.22% 2.08% 1.02%
Ratio of expenses to average net assets
With expense reductions 0.82% 1.65% 1.65% 1.65% 1.60%
Without expense reductions 1.01% 2.80% 2.43% 3.03% 3.57%
Fund portfolio turnover rate 71.49% 212.10% 75.81% 22.21% 147.01%
</Table>
<Table>
<Caption>
Class C
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 9.95 $ 9.96 $ 10.74 $ 9.63 $ 10.50
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment income 0.08 0.23 0.25 0.29 0.27
Net realized and unrealized gains
(losses) on securities 0.20 (0.04) (0.38) 1.38 (0.88)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 0.28 0.19 (0.13) 1.67 (0.61)
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income (0.10) (0.19) (0.27) (0.28) (0.24)
From net capital gains - (0.01) (0.38) (0.28) (0.02)
----------------- ------------ ------------ ------------ ------------
Total distributions (0.10) (0.20) (0.65) (0.56) (0.26)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 10.13 $ 9.95 $ 9.96 $ 10.74 $ 9.63
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 2.78% 1.98% (1.21)% 17.57% (5.77)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 14,271 $ 10,858 $ 4,172 $ 2,682 $ 1,923
Ratio of net investment income to
average net assets
With expense reductions 0.88% 1.90% 2.25% 2.79% 2.18%
Without expense reductions 0.68% 0.81% 1.28% 1.23% 0.22%
Ratio of expenses to average net assets
With expense reductions 1.18% 2.40% 2.40% 2.36% 2.38%
Without expense reductions 1.38% 3.49% 3.37% 3.92% 4.34%
</Table>
- --------------------------------------------------------------------------------
(a) The Fund's maximum sales charge is not included in the total return
computation.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
31
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
INCOME AND EQUITY FUND
------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 9.91 $ 10.31 $ 10.43 $ 10.39 $ 10.74
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment Income 0.19 0.39 0.42 0.52 0.43
Net realized and unrealized gains
(losses) on securities 0.20 (0.49) (0.14) 0.07 (0.39)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 0.39 (0.10) 0.28 0.59 0.04
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income (0.19) (0.30) (0.40) (0.55) (0.37)
From net capital gains - - - - (0.02)
----------------- ------------ ------------ ------------ ------------
Total distributions (0.19) (0.30) (0.40) (0.55) (0.39)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 10.11 $ 9.91 $ 10.31 $ 10.43 $ 10.39
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 3.91% (0.92)% 2.63% 6.03% 0.19%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 1,980 $ 2,117 $ 2,708 $ 2,217 $ 2,664
Ratio of net investment income to
average net assets
With expense reductions 1.71% 3.43% 4.28% 4.67% 4.08%
Without expense reductions 1.17% 1.75% 2.66% 2.76% 1.86%
Ratio of expenses to average net assets
With expense reductions 0.92% 1.85% 1.85% 1.83% 1.85%
Without expense reductions 1.46% 3.53% 3.47% 3.75% 4.06%
Fund portfolio turnover rate 32.21% 91.50% 43.38% 21.83% 37.34%
</Table>
<Table>
<Caption>
Class C
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 9.60 $ 10.03 $ 10.26 $ 10.15 $ 10.62
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment Income 0.13 0.34 0.42 0.35 0.41
Net realized and unrealized gains
(losses) on securities 0.21 (0.51) (0.22) 0.10 (0.43)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 0.34 (0.17) 0.20 0.45 (0.02)
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income (0.15) (0.26) (0.43) (0.34) (0.43)
From net capital gains - - - - (0.02)
----------------- ------------ ------------ ------------ ------------
Total distributions (0.15) (0.26) (0.43) (0.34) (0.45)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 9.79 $ 9.60 $ 10.03 $ 10.26 $ 10.15
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 0.98% (1.60)% 1.81% 4.32% (0.02)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 3,548 $ 3,284 $ 1,365 $ 815 $ 1,850
Ratio of net investment income to
average net assets
With expense reductions 1.32% 2.95% 3.58% 3.90% 3.45%
Without expense reductions 0.79% 1.15% 1.65% 1.88% 1.65%
Ratio of expenses to average net assets
With expense reductions 1.29% 2.60% 2.60% 2.55% 2.51%
Without expense reductions 1.83% 4.39% 4.54% 4.57% 4.30%
</Table>
- --------------------------------------------------------------------------------
(a) The Fund's maximum sales charge is not included in the total return
computation.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
32
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
BALANCED FUND
------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 13.69 $ 14.42 $ 15.22 $ 14.04 $ 12.69
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment income 0.09 0.06 0.10 0.21 0.12
Net realized and unrealized gains
(losses) on securities 1.07 (0.79) (0.81) 1.19 1.47
----------------- ------------ ------------ ------------ ------------
Total from investment operations 1.16 (0.73) (0.71) 1.40 1.59
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income - - (0.09) (0.15) (0.12)
From net capital gains - - - (0.07) (0.12)
----------------- ------------ ------------ ------------ ------------
Total distributions - - (0.09) (0.22) (0.24)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 14.85 $ 13.69 $ 14.42 $ 15.22 $ 14.04
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 8.47% (5.05)% (4.69)% 9.99% 12.61%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 4,281 $ 3,977 $ 5,013 $ 5,942 $ 7,008
Ratio of net investment income to
average net assets
With expense reductions 0.62% 0.30% 0.55% 1.15% 0.91%
Without expense reductions 0.62% 0.30% 0.55% 0.74% 0.51%
Ratio of expenses to average net assets
With expense reductions 1.37% 3.47% 3.22% 2.88% 3.22%
Without expense reductions 1.37% 3.47% 3.22% 3.28% 3.62%
Fund portfolio turnover rate 33.88% 57.74% 42.20% 43.30% 52.47%
</Table>
<Table>
<Caption>
Class C
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 13.40 $ 14.18 $ 14.99 $ 13.91 $ 12.61
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment income 0.04 0.01 0.01 0.07 0.03
Net realized and unrealized gains
(losses) on securities 1.02 (0.79) (0.80) 1.17 1.42
----------------- ------------ ------------ ------------ ------------
Total from investment operations 1.06 (0.78) (0.79) 1.24 1.45
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income - - (0.02) (0.09) (0.03)
From net capital gains - - - (0.07) (0.12)
----------------- ------------ ------------ ------------ ------------
Total distributions - - (0.02) (0.16) (0.15)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 14.46 $ 13.40 $ 14.18 $ 14.99 $ 13.91
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 7.91% (5.49)% (5.25)% 8.92% 11.57%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 17,671 $ 14,035 $ 7,404 $ 4,559 $ 1,552
Ratio of net investment income to
average net assets
With expense reductions 0.24% (0.16)% (0.08)% 0.39% 0.01%
Without expense reductions 0.24% (0.16)% (0.08)% (0.01)% (0.39)%
Ratio of expenses to average net assets
With expense reductions 1.74% 4.15% 3.99% 3.63% 4.07%
Without expense reductions 1.74% 4.15% 3.99% 4.03% 4.47%
</Table>
- --------------------------------------------------------------------------------
(a) The Fund's maximum sales charge is not included in the total return
computation.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
33
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
GROWTH FUND
-----------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------
For the six months For the year ended December 31, May 3, 1999(c)
ended ------------------------------------------- to
June 30, 2003 2002 2001 2000 December 31, 1999
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 5.48 $ 7.04 $ 9.83 $ 11.67 $ 10.00
----------------- ------------ ------------ ------------ ----------------
Income from investing operations
Net investment expense (0.03) (0.12) (0.11) (0.01) (0.02)
Net realized and unrealized gains
(losses) on securities 0.72 (1.44) (2.68) (1.83) 1.69
----------------- ------------ ------------ ------------ ----------------
Total from investment operations 0.69 (1.56) (2.79) (1.84) 1.67
----------------- ------------ ------------ ------------ ----------------
Less distributions
From net investment income - - - - -
From net capital gains - - - - -
----------------- ------------ ------------ ------------ ----------------
Total distributions - - - - -
----------------- ------------ ------------ ------------ ----------------
Net asset value, end of period $ 6.17 $ 5.48 $ 7.04 $ 9.83 $ 11.67
----------------- ------------ ------------ ------------ ----------------
TOTAL INVESTMENT RETURN (b) 12.59% (22.16)% (28.38)% (15.77)% 16.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 560 $ 464 $ 588 $ 825 $ 328
Ratio of net investment income to
average net assets
With expense reductions (0.84)% (1.97)% (1.26)% (0.24)% (0.27)%(a)
Without expense reductions (3.98)% (8.25)% (5.44)% (3.98)% (8.40)%(a)
Ratio of expenses to average net assets
With expense reductions 1.27% 2.50% 2.44% 2.50% 1.63%(a)
Without expense reductions 4.41% 8.77% 6.62% 6.23% 9.75%(a)
Fund portfolio turnover rate 30.24% 78.06% 57.61% 16.00% 0.00%
</Table>
<Table>
<Caption>
Class C
-----------------------------------------------------------------------------------
For the six months For the year ended December 31, May 3, 1999(c)
ended ------------------------------------------- to
June 30, 2003 2002 2001 2000 December 31, 1999
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 5.33 $ 6.89 $ 9.70 $ 11.61 $ 10.00
----------------- ------------ ------------ ------------ ----------------
Income from investing operations
Net investment expense (1.68) (0.44) (0.22) (0.06) (0.04)
Net realized and unrealized gains
(losses) on securities 2.27 (1.12) (2.59) (1.85) 1.65
----------------- ------------ ------------ ------------ ----------------
Total from investment operations 0.59 (1.56) (2.81) (1.91) 1.61
----------------- ------------ ------------ ------------ ----------------
Less distributions
From net investment income - - - - -
From net capital gains - - - - -
----------------- ------------ ------------ ------------ ----------------
Total distributions - - - - -
----------------- ------------ ------------ ------------ ----------------
Net asset value, end of period $ 5.92 $ 5.33 $ 6.89 $ 9.70 $ 11.61
----------------- ------------ ------------ ------------ ----------------
TOTAL INVESTMENT RETURN (b) 11.07% (22.64)% (28.97)% (16.45)% 16.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 197 $ 190 $ 439 $ 728 $ 278
Ratio of net investment income to
average net assets
With expense reductions (1.21)% (2.75)% (2.04)% (0.97)% (0.61)%(a)
Without expense reductions (4.36)% (8.67)% (5.59)% (4.04)% (8.74)%(a)
Ratio of expenses to average net assets
With expense reductions 1.64% 3.25% 3.23% 3.25% 2.16%(a)
Without expense reductions 4.79% 9.17% 6.77% 6.32% 10.28%(a)
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized
(b) The Fund's maximum sales charge is not included in the total return
computation.
(c) Commencement of operations
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
34
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
MULTI-CAP VALUE FUND
--------------------------------------
Class A
--------------------------------------
For the six months April 1, 2002(c)
ended to
June 30, 2003 December 31, 2002
--------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 7.95 $ 10.00
----------------- ----------------
Income from investing operations
Net investment expense (0.07) (0.07)
Net realized and unrealized gains
(losses) on securities 1.81 (1.98)
----------------- ----------------
Total from investment operations 1.74 (2.05)
----------------- ----------------
Less distributions
From net investment income - -
From net capital gains - -
----------------- ----------------
Total distributions - -
----------------- ----------------
Net asset value, end of period $ 9.69 $ 7.95
----------------- ----------------
TOTAL INVESTMENT RETURN (b) 21.89% (20.50)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 675 $ 503
Ratio of net investment income to
average net assets
With expense reductions (0.98)% (1.09)%(a)
Without expense reductions (2.13)% (4.27)%(a)
Ratio of expenses to average net assets
With expense reductions 1.24% 1.88%(a)
Without expense reductions 2.39% 5.06%(a)
Fund portfolio turnover rate 0.00% 6.22%(a)
</Table>
<Table>
<Caption>
Class C
--------------------------------------
For the six months April 1, 2002 (c)
ended to
June 30, 2003 December 31, 2002
--------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 7.91 $ 10.00
----------------- ----------------
Income from investing operations
Net investment expense 0.31 (0.52)
Net realized and unrealized gains
(losses) on securities 1.40 (1.57)
----------------- ----------------
Total from investment operations 1.71 (2.09)
----------------- ----------------
Less distributions
From net investment income - -
From net capital gains - -
----------------- ----------------
Total distributions - -
----------------- ----------------
Net asset value, end of period $ 9.62 $ 7.91
----------------- ----------------
TOTAL INVESTMENT RETURN (b) 21.62% (20.90)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 1,616 $ 1,247
Ratio of net investment income to
average net assets
With expense reductions (1.35)% (1.66)%(a)
Without expense reductions (2.50)% (4.60)%(a)
Ratio of expenses to average net assets
With expense reductions 1.61% 2.44%(a)
Without expense reductions 2.76% 5.38%(a)
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized
(b) The Fund's maximum sales charge is not included in the total return
computation.
(c) Commencement of operations
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
35
<Page>
PACIFIC ADVISORS FUND INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SMALL CAP FUND
------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 10.32 $ 15.23 $ 13.42 $ 11.98 $ 14.23
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment expense (0.41) (0.85) (0.42) (0.79) (0.61)
Net realized and unrealized gains
(losses) on securities 2.69 (4.05) 3.11 2.32 (1.63)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 2.28 (4.90) 2.69 1.53 (2.24)
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income - - - - -
From net capital gains - (0.01) (0.88) (0.09) (0.01)
----------------- ------------ ------------ ------------ ------------
Total distributions - (0.01) (0.88) (0.09) (0.01)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 12.60 $ 10.32 $ 15.23 $ 13.42 $ 11.98
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 22.09% (32.20)% 20.23% 12.83% (15.75)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 5,526 $ 4,763 $ 7,715 $ 6,541 $ 6,976
Ratio of net investment income to
average net assets
With expense reductions (1.86)% (4.01)% (3.44)% (3.20)% (3.36)%
Without expense reductions (1.86)% (4.01)% (3.44)% (3.20)% (3.36)%
Ratio of expenses to average net assets
With expense reductions 2.05% 4.52% 3.74% 3.58% 3.92%
Without expense reductions 2.05% 4.52% 3.74% 3.58% 3.92%
Fund portfolio turnover rate 11.79% 23.39% 43.89% 44.82% 68.18%
</Table>
<Table>
<Caption>
Class C
------------------------------------------------------------------------------
For the six months For the year ended December 31,
ended ----------------------------------------------------------
June 30, 2003 2002 2001 2000 1999
------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 9.65 $ 14.47 $ 13.04 $ 11.93 $ 14.24
----------------- ------------ ------------ ------------ ------------
Income from investing operations
Net investment expense (0.37) (0.88) (0.08) (0.78) (0.18)
Net realized and unrealized gains
(losses) on securities 2.47 (3.93) 2.39 1.98 (2.12)
----------------- ------------ ------------ ------------ ------------
Total from investment operations 2.10 (4.81) 2.31 1.20 (2.30)
----------------- ------------ ------------ ------------ ------------
Less distributions
From net investment income - - - - -
From net capital gains - (0.01) (0.88) (0.09) (0.01)
----------------- ------------ ------------ ------------ ------------
Total distributions - (0.01) (0.88) (0.09) (0.01)
----------------- ------------ ------------ ------------ ------------
Net asset value, end of period $ 11.75 $ 9.65 $ 14.47 $ 13.04 $ 11.93
----------------- ------------ ------------ ------------ ------------
TOTAL INVESTMENT RETURN (a) 21.76% (33.27)% 17.91% 10.11% (16.16)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 618 $ 543 $ 886 $ 454 $ 459
Ratio of net investment income to
average net assets
With expense reductions (2.23)% (5.47)% (5.48)% (5.52)% (3.78)%
Without expense reductions (2.23)% (5.47)% (5.48)% (5.52)% (3.78)%
Ratio of expenses to average net assets
With expense reductions 2.42% 5.97% 5.78% 5.90% 4.38%
Without expense reductions 2.42% 5.97% 5.78% 5.90% 4.38%
</Table>
- --------------------------------------------------------------------------------
(a) The Fund's maximum sales charge is not included in the total return
computation.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
36
<Page>
PACIFIC ADVISORS FUND INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX
HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------------
Thomas M. Brinker (69) Director Since 1992 1970 - Present: Chairman 6 Pacific Advisors None
1 North Ormond Avenue Fringe Benefits,Inc/ Mutual Funds
Havertown, PA 19083 Financial Foresight,
Ltd.,
d/b/a The Brinker
Organization (Financial
Services Companies)
Victoria Breen (52) Director Since 1992 1992 - Present: Assistant 6 Pacific Advisors None
603 West Ojai Avenue and Assistant Secretary and Director, Mutual Funds
Ojai, CA 93023 Secretary Pacific Global Investment
Management Company,
Pacific Global Investor
Services, Inc.
1994 - Present: General
Agent, Transamerica Life
Companies and Registered
Principal, Transamerica
Financial
Resources, Inc.
1986 - Present: Branch
Manager, Derby & Derby
Inc. (Financial Services
Company)
Thomas H. Hanson (53) Vice Since 1992 1992 - Present: Executive 6 Pacific Advisors None
206 North Jackson Street President Vice President and Mutual Funds
Suite 301 and Secretary Director, Pacific Global
Glendale, CA 91206 Investment Management
Company; President and
Director, Pacific Global
Fund Distributors, Inc.;
President and Director,
Pacific Global Investor
Services, Inc.
1997 - 2001: Vice
President and Director,
Pacific Global Investment
Fund Ltd.
1993 - Present: Owner,
Director, Chairman,
President and CEO of
TriVest Capital
Management, Inc.
</Table>
37
<Page>
PACIFIC ADVISORS FUND INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX
HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------------
Catherine L. Henning (25) Assistant Since 2002 2002 - Present: Assistant 6 Pacific Advisors None
206 North Jackson Street Secretary Secretary, Pacific Global Mutual Funds
Suite 301 Investment Management
Glendale, CA 91206 Company, Pacific Global
Fund Distributors, Inc.
and Pacific Global
Investor Services, Inc.
1999 - Present: Marketing
Coordinator, Pacific
Global Investment
Management Company
George A. Henning (56) President and Since 1992 1991 - Present: Chairman, 6 Pacific Advisors None
206 North Jackson Street Chairman President, and Director, Mutual Funds
Suite 301 Pacific Global Investment
Glendale, CA 91206 Management Company;
Chairman and Director,
Pacific Global Fund
Distributors, Inc.;
Chairman and Director,
Pacific Global Investor
Services, Inc.
1997 - 2001: Chairman and
Director, Pacific Global
Investment Fund, Ltd.
Barbara A. Kelley (50) Treasurer Since 2001 2001 - Present: Executive 6 Pacific Advisors None
206 North Jackson Street Vice President, Mutual Funds
Suite 301 Treasurer, Pacific Global
Glendale, CA 91206 Investment Management
Company; Treasurer and
Director, Pacific Global
Fund Distributors, Inc.;
President and Treasurer,
Pacific Global Investor
Services, Inc.
1999 - Present: Director,
Pacific Global Investment
Management Company
1990 - 1999: President,
Transamerica Financial
Resources
</Table>
38
<Page>
PACIFIC ADVISORS FUND INC.
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS IN
POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX
HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
- ---------------------------------------------------------------------------------------------------------------------------------
L. Michael Haller (59) Director Since 1992 2002 - Present: Executive 6 Pacific Advisors None
5924 Colodny Vice President, Sammy Mutual Funds
Agoura, CA 91301 Studios, Inc.
(Entertainment Company)
2001 - 2002: Vice
President and Executive
Producer, Electronic
Arts; President,
International Media
Group, Inc.
(Entertainment Company)
1978 - 2001: Consultant,
Asahi Broadcasting Corp.
(Entertainment Company)
Takashi Makinodan, Ph.D Director Since 1995 1992 - Present: Director, 6 Pacific Advisors None
(78) Medical Treatment Mutual Fund
107 S. Barrington Place Effectiveness Program
Los Angeles, CA 90049 (MEDTEP), Center on Asian
and Pacific Islanders
1991 - Present: Associate
Director of Research,
Geriatric Research
Education Clinic Center,
VA Medical Center
Gerald E. Miller (73) Director Since 1992 1992 - Present: Retired 6 Pacific Advisors None
5262 Bridgetown Place Mutual Funds
Westlake Village, CA 91362
Louise K. Taylor, Ph.D (57) Director Since 1992 1991 - Present: 6 Pacific Advisors None
325 East Huntington Dr. Superintendent, Monrovia Mutual Funds
Monrovia, CA 91016 Unified School District
</Table>
Each director is elected to serve until the next annual shareholders meeting and
until his or her successor is elected or appointed. The Companydoes not hold
regular annual shareholders meetings to elect Directors. Vacancies on the Board
can be filled by the action of a majority of the Directors, provided that at
least two-thirds of the Directors have been elected by the shareholders. Certain
Directors are considered "interested persons" of the Company as defined in the
1940 Act. All directors oversee all five Funds of the Company.
39
<Page>
PACIFIC ADVISORS
Fund Inc
[GRAPHIC]
DIRECTORS
GEORGE A. HENNING, CHAIRMAN
VICTORIA L. BREEN
THOMAS M. BRINKER
L. MICHAEL HALLER III
TAKASHI MAKINODAN, PH.D.
GERALD E. MILLER
LOUISE K. TAYLOR, PH.D.
OFFICERS
GEORGE A. HENNING, PRESIDENT
THOMAS H. HANSON, VICE PRESIDENT AND
SECRETARY
VICTORIA L. BREEN, ASSISTANT SECRETARY
CATHERINE L. HENNING, ASSISTANT SECRETARY
BARBARA A. KELLEY, TREASURER
INVESTMENT MANAGER
PACIFIC GLOBAL INVESTMENT MANAGEMENT
COMPANY
206 NORTH JACKSON STREET, SUITE 301
GLENDALE, CALIFORNIA 91206
BALANCED FUND ADVISER
BACHE CAPITAL MANAGEMENT, INC.
206 NORTH JACKSON STREET, SUITE 201
GLENDALE, CALIFORNIA 92106
GOVERNMENT SECURITIES FUND ADVISER
SPECTRUM ASSET MANAGEMENT, INC.
1301 DOVE STREET, SUITE 970
NEWPORT BEACH, CALIFORNIA 92660
MULTI-CAP VALUE FUND ADVISER
MEYERS CAPITAL MANAGEMENT LLC
8901 WILSHIRE BOULEVARD
BEVERLY HILLS, CALIFORNIA 90211
TRANSFER AGENT AND ADMINISTRATOR
PACIFIC GLOBAL INVESTOR SERVICES, INC.
206 NORTH JACKSON STREET, SUITE 301
GLENDALE, CALIFORNIA 91206
DISTRIBUTOR
PACIFIC GLOBAL FUND DISTRIBUTORS, INC.
206 NORTH JACKSON STREET, SUITE 301
GLENDALE, CALIFORNIA 91206
(800) 989-6693
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless
accompanied or preceded by a current effective prospectus of the Fund, which
contains information concerning the investment policies of the Fund as well as
other pertinent information.
<Page>
<Table>
PACIFIC GLOBAL FUND DISTRIBUTORS, INC.
[GRAPHIC] 206 NORTH JACKSON STREET, SUITE 301
GLENDALE, CALIFORNIA 91206
</Table>
pg101.898
<Page>
Item 1. Report to Shareholders (filed herewith).
Item 2. Not applicable.
Item 3. Not applicable.
Item 4. Not applicable.
Item 5. Not applicable.
Item 6. (Reserved)
Item 7. (Reserved)
Item 8. Not applicable.
Item 9. Controls and Procedures.
(a) Based upon their evaluation of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940) as conducted within 90 days of the
filing date of this Form N-CSR, the registrant's principal executive
officer and principal financial officer have concluded that those
disclosure controls and procedures provide reasonable assurance that
the material information required to be disclosed by the registrant on
this report is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's
rules and forms.
(b) There have been no significant changes in the registrant's
internal controls or in other factors that could significantly affect
these controls subsequent to the date of the most recent evaluation as
indicated, including no significant deficiencies or material
weaknesses that required corrective action.
Item 10. Exhibits
(a)(1) Not applicable.
(a)(2) Certifications required by Item 10(a) of Form N-CSR and Section
302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
(b) Certification required by Section 906 of the Sarbanes-Oxley Act of
2002 (filed herewith).
<Page>
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.
Pacific Global Fund Inc. d/b/a Pacific Advisors Fund Inc.
By: /s/ George A. Henning
---------------------
George A. Henning
Chairman, Pacific Advisors Fund Inc.
Date: September 2, 2003
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: /s/ George A. Henning
---------------------
George A. Henning
Chief Executive Officer
Date: September 2, 2003
By: /s/ Barbara A. Henning
----------------------
Barbara A. Henning
Chief Financial Officer
Date: September 2, 2003