-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bjp0JNm06Eo4fNgyd1x8+EJvweJ0vEO/dgTN+uWFpf3jPwAU/u4ZuK/MN85A+nFU jDuvcOR7aZzWCJj8kTCMEA== 0000904046-04-000029.txt : 20041124 0000904046-04-000029.hdr.sgml : 20041124 20041124092535 ACCESSION NUMBER: 0000904046-04-000029 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041124 DATE AS OF CHANGE: 20041124 EFFECTIVENESS DATE: 20041124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC AMERICAN INCOME SHARES INC CENTRAL INDEX KEY: 0000075398 IRS NUMBER: 952808650 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02351 FILM NUMBER: 041165340 BUSINESS ADDRESS: STREET 1: 111 SOUTH CALVERT STREET CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 4105390000X2744 MAIL ADDRESS: STREET 1: 111 SOUTH CALVERT STREET CITY: BALTIMORE STATE: MD ZIP: 21202 N-Q 1 pais093004nq.txt PAIS SEPTEMBER 2004 NQ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-02351 Name of Fund: Pacific American Income Shares Fund Address: 100 Light Street Baltimore, MD 21202 Name and address of agent for service: Richard M. Wachterman, Esq. Legg Mason Wood Walker, Incorporated 100 Light Street Baltimore, MD 21202 Registrant's telephone number, including area code: (410) 539-0000 Date of fiscal year end: 12/31/2004 Date of reporting period: 9/30/2004 Item 1 - Schedule of Investments Portfolio of Investments Pacific American Income Shares September 30, 2004 (Amounts in Thousands) (Unaudited) Rate Maturity Date Shares/Par Value - ----------------------------------------------------------------------------------------------------------------------------------- Long-Term Securities -- 94.9% Corporate Bonds and Notes -- 67.4% Aerospace/Defense -- 2.3% Northrop Grumman Corporation 9.38% 10/15/2024 $2,000 $2,087 Raytheon Company 5.38% 04/01/2013 295 307/A/ Raytheon Company 6.40% 12/15/2018 610 664 Systems 2001 Asset Trust 6.66% 09/15/2013 502 558/B/ --------------- 3,616 --------------- Auto Parts and Equipment -- 0.3% American Axle & Manufacturing Inc. 5.25% 02/11/2014 300 296 Lear Corporation 8.11% 05/15/2009 200 231 --------------- 527 --------------- Automotive -- 1.9% Ford Motor Company 7.45% 07/16/1931 190 186/A/ Ford Motor Company 8.90% 01/15/1932 730 819 General Motors Corporation 8.25% 07/15/2023 190 200 General Motors Corporation 8.38% 07/15/1933 1,620 1,720/A/ --------------- 2,925 --------------- Banking and Finance -- 5.4% Boeing Capital Corporation 5.80% 01/15/2013 500 536 Ford Motor Credit Company 6.50% 01/25/2007 790 837 Ford Motor Credit Company 7.38% 10/28/2009 1,190 1,304 Ford Motor Credit Company 7.25% 10/25/2011 1,380 1,493 Ford Motor Credit Company 7.00% 10/01/2013 580 613/A/ Fuji Co., Ltd. 9.87% 12/31/1949 620 728/B/ General Motors Acceptance Corporation 6.13% 08/28/2007 1,050 1,106 General Motors Acceptance Corporation 6.88% 09/15/2011 1,000 1,049 SB Treasury Company LLC 9.40% 12/29/1949 600 706/B,C/ --------------- 8,372 --------------- Banks -- 2.7% Bank of America Corporation 7.40% 01/15/2011 1,075 1,253 Bank of America Corporation 7.80% 09/15/2016 250 306 BankAmerica Capital 2.17% 01/15/2027 215 208/D/ CBA Capital Trust I 5.81% 12/31/1949 1,390 1,439/A,B/ Chase Capital II 2.19% 02/01/2027 725 685/D/ UnionBanCal Corporation 5.25% 12/16/2013 295 301 --------------- 4,192 --------------- Building Materials -- 0.5% American Standard, Inc. 8.25% 06/01/2009 500 575 Nortek Holdings, Inc. 8.50% 09/01/2014 225 236/B/ --------------- 811 --------------- Cable -- 2.1% Comcast Corporation 7.05% 03/15/1933 160 176 Cox Communications, Inc. 7.13% 10/01/2012 1,120 1,215 CSC Holdings Inc. 7.25% 07/15/2008 700 728 CSC Holdings Inc. 7.63% 07/15/2018 500 510 TCI Communications, Inc. 8.75% 08/01/2015 160 199 Tele-Communications, Inc. 9.80% 02/01/2012 375 478 --------------- 3,306 --------------- Casino Resorts -- 0.4% Harrah's Operating Company, Inc. 5.50% 07/01/2010 340 351/B/ Park Place Entertainment Corporation 8.13% 05/15/2011 250 289 --------------- 640 --------------- Chemicals -- 1.5% FMC Corporation 10.25% 11/01/2009 265 310 The Dow Chemical Company 6.00% 10/01/2012 1,000 1,080 The Dow Chemical Company 7.38% 11/01/2029 800 929 --------------- 2,319 --------------- Computer Services and Systems -- 0.7% Electronic Data Systems Corporation 7.13% 10/15/2009 600 645/A/ Electronic Data Systems Corporation 7.45% 10/15/2029 420 420/A/ --------------- 1,065 --------------- Containers and Packaging -- 0.2% Graphic Packaging International Corp. 9.50% 08/15/2013 200 228 --------------- Diversified Financial Services -- 0.8% Capital One Financial Corporation 8.75% 02/01/2007 350 391/A/ Capital One Financial Corporation 7.13% 08/01/2008 90 99/A/ CIT Group Inc. 3.88% 11/03/2008 5 5/A/ CIT Group Inc. 7.75% 04/02/2012 220 260 IBJ Preferred Capital Corp. LLC 8.79% 12/29/1949 110 126/B/ Wells Fargo & Company 5.00% 11/15/2014 405 411 --------------- 1,292 --------------- Diversified Services -- 0.3% SPX Corporation 7.50% 01/01/2013 505 513 --------------- Electric -- 2.2% AEP Texas Central Company 5.50% 02/15/2013 420 437/A/ American Electric Power Company, Inc. 5.25% 06/01/2015 490 492 Dominion Resources, Inc. 5.13% 12/15/2009 210 218/A/ FirstEnergy Corp. 6.45% 11/15/2011 60 66 FirstEnergy Corp. 7.38% 11/15/1931 350 393 General Electric Company 5.00% 02/01/2013 500 514 Southern California Edison Company 8.00% 02/15/2007 375 415 System Energy Resources, Inc. 4.88% 10/01/2007 380 390 Tampa Electric Company 6.38% 08/15/2012 145 158 The AES Corporation 9.50% 06/01/2009 39 44 The Cleveland Electric Illuminating Company 5.65% 12/15/2013 300 310 --------------- 3,437 --------------- Energy -- 8.0% Alabama Power Company 3.13% 05/01/2008 360 354 Calpine Corporation 8.50% 02/15/2011 228 146/A/ Calpine Corporation 8.75% 07/15/2013 280 211/A,B/ Calpine Generating Co. LLC 11.50% 04/01/2011 20 17/B/ CenterPoint Energy, Inc. 6.85% 06/01/2015 750 811 DTE Energy Company 6.38% 04/15/1933 630 640 Duke Energy Corporation 5.63% 11/30/2012 70 73 Exelon Corporation 6.75% 05/01/2011 1,500 1,675 MidAmerican Energy Holdings Company 5.88% 10/01/2012 500 528 Pacific Gas and Electric Company 6.05% 03/01/1934 1,570 1,598 Peabody Energy Corporation 6.88% 03/15/2013 285 308 Progress Energy, Inc. 7.10% 03/01/2011 510 576 Sempra Energy 2.21% 05/21/2008 635 634/D/ Sithe Independence Funding Corporation 9.00% 12/30/2013 1,500 1,701 TXU Co. 6.38% 06/15/2006 1,500 1,577 TXU Energy Co. 2.38% 01/17/2006 270 271/B,D/ TXU Energy Co. 6.13% 03/15/2008 500 535 TXU Energy Co. 7.00% 03/15/2013 370 418 Xcel Energy, Inc. 7.00% 12/01/2010 350 396 --------------- 12,469 --------------- Environmental Services -- 0.7% Allied Waste North America Incorporated 8.88% 04/01/2008 250 271 Safety-Kleen Corp. 9.25% 05/15/2009 346 19/E/ Waste Management, Inc. 7.38% 05/15/2029 715 822 --------------- 1,112 --------------- Food, Beverage and Tobacco -- 3.2% Altria Group, Inc. 6.38% 02/01/2006 75 77/A/ Altria Group, Inc. 7.00% 11/04/2013 985 1,028 Altria Group, Inc. 7.75% 01/15/2027 40 42 Domino's, Inc. 8.25% 07/01/2011 200 217 Fosters Finance Corporation 4.88% 10/01/2014 240 238/B/ Kraft Foods Inc. 6.25% 06/01/2012 75 82 Nabisco Incorporated 7.55% 06/15/2015 1,250 1,495/A/ R.J. Reynolds Tobacco Holdings, Inc. 7.25% 06/01/2012 1,360 1,333/A/ Tyson Foods, Inc. 7.00% 01/15/2028 500 530 --------------- 5,042 --------------- Gas and Pipeline Utilities -- 2.5% CenterPoint Energy Resources Corp. 7.88% 04/01/2013 390 460 Dynegy Holdings Inc. 6.88% 04/01/2011 1,300 1,238/A/ Dynegy Holdings Inc. 8.75% 02/15/2012 735 765/A/ The Williams Companies, Inc. 7.50% 01/15/1931 102 102 The Williams Companies, Inc. 8.75% 03/15/1932 1,250 1,397 --------------- 3,962 --------------- Health Care -- 1.0% Tenet Healthcare Corporation 7.38% 02/01/2013 1,410 1,325/A/ Tenet Healthcare Corporation 6.88% 11/15/1931 250 198 --------------- 1,523 --------------- Homebuilding -- 0.2% Centex Corporation 5.13% 10/01/2013 160 159/A/ Pulte Homes, Inc. 6.25% 02/15/2013 145 155/A/ --------------- 314 --------------- Insurance -- 0.8% Loews Corporation 7.00% 10/15/2023 1,000 1,015 Provident Companies, Inc. 7.00% 07/15/2018 230 226/A/ --------------- 1,241 --------------- Investment Banking/Brokerage -- 1.2% J.P. Morgan Capital Trust II 7.95% 02/01/2027 150 167 J.P. Morgan Chase & Co. 5.75% 01/02/2013 145 154 J.P. Morgan Chase & Co. 5.13% 09/15/2014 845 850 The Goldman Sachs Group, Inc. 6.35% 02/15/1934 755 757 --------------- 1,928 --------------- Lodging/Hotels -- 0.3% Hilton Hotels Corporation 7.63% 12/01/2012 450 523/A/ --------------- Machinery -- 0.4% Case New Holland Incorporated 9.25% 08/01/2011 275 308/B/ Case New Holland Incorporated 9.25% 08/01/2011 200 224/B/ --------------- 532 --------------- Media -- 3.2% AMFM Inc. 8.00% 11/01/2008 210 238 AOL Time Warner Inc. 6.15% 05/01/2007 450 478 AOL Time Warner Inc. 6.88% 05/01/2012 310 346 AOL Time Warner Inc. 7.70% 05/01/1932 670 779 Liberty Media Corporation 3.38% 09/17/2006 1,035 1,046/D/ Liberty Media Corporation 8.50% 07/15/2029 330 374/A/ Liberty Media Corporation 8.25% 02/01/1930 165 183/A/ Readers Digest Association, Inc. 6.50% 03/01/2011 300 309 Sinclair Broadcast Group, Inc. 8.75% 12/15/2011 210 228 Time Warner Entertainment Company, L.P. 8.38% 07/15/1933 770 943 Viacom Inc. 5.63% 08/15/2012 90 94/A/ --------------- 5,018 --------------- Medical Care Facilities -- 0.9% HCA Inc. 5.25% 11/06/2008 105 107 HCA Inc. 7.88% 02/01/2011 250 283 HCA Inc. 6.30% 10/01/2012 180 187 HCA Inc. 5.75% 03/15/2014 395 391 Health Care REIT, Inc. 8.00% 09/12/2012 370 428 --------------- 1,396 --------------- Oil and Gas -- 5.6% Amerada Hess Corporation 7.30% 08/15/1931 1,440 1,570 Conoco Inc. 6.95% 04/15/2029 90 104 ConocoPhillips 4.75% 10/15/2012 250 254/A/ Devon Energy Corporation 7.95% 04/15/1932 350 434 El Paso Corporation 7.80% 08/01/1931 1,000 878 Occidental Petroleum Corporation 6.75% 01/15/2012 2,000 2,267 Ocean Energy Inc. 4.38% 10/01/2007 430 439/A/ Panhandle Eastern Pipe Line Company 4.80% 08/15/2008 445 456 Sonat Inc. 7.63% 07/15/2011 1,000 985 Valero Energy Corporation 6.88% 04/15/2012 215 242 Vintage Petroleum, Inc. 7.88% 05/15/2011 250 268 XTO Energy, Inc. 6.25% 04/15/2013 830 909 --------------- 8,806 --------------- Paper and Forest Products -- 1.8% Georgia Pacific Corp 8.00% 01/15/2024 250 285 Georgia-Pacific Corp 9.50% 12/01/2011 325 402/A/ International Paper Company 5.50% 01/15/2014 490 502 MeadWestvaco Corporation 6.85% 04/01/2012 415 462 Weyerhaeuser Company 6.75% 03/15/2012 580 650 Weyerhaeuser Company 7.38% 03/15/1932 390 448 --------------- 2,749 --------------- Pharmaceuticals -- 0.3% Eli Lilly and Company 6.00% 03/15/2012 400 441 --------------- Photo Equipment and Supplies -- 0.5% Eastman Kodak Company 3.63% 05/15/2008 375 368/A/ Eastman Kodak Company 7.25% 11/15/2013 345 380/A/ --------------- 748 --------------- Real Estate -- 0.2% Forest City Enterprises, Inc. 7.63% 06/01/2015 225 236 Socgen Real Estate Co. LLC 7.64% 12/29/1949 80 89/B/ --------------- 325 --------------- Retail -- 0.2% Toys "R" Us, Inc. 6.88% 08/01/2006 350 365/A/ --------------- Special Purpose -- 11.2% Ahold Finance USA, Inc. 8.25% 07/15/2010 355 400 Conoco Funding Company 6.35% 10/15/2011 420 469 DaimlerChrysler NA Holding Corporation 2.34% 09/10/2007 1,570 1,572/D/ DaimlerChrysler NA Holding Corporation 7.30% 01/15/2012 415 471 DaimlerChrysler NA Holding Corporation 6.50% 11/15/2013 160 174 Devon Financing Corporation ULC 6.88% 09/30/2011 520 587 Duke Capital Corporation 6.25% 02/15/2013 1,200 1,291/A/ H.J. Heinz Finance Company 6.00% 03/15/2012 300 327 NiSource Finance Corp. 3.20% 11/01/2006 375 374 PNPP II Funding Corporation 9.12% 05/30/2016 2,457 2,900/A/ Qwest Capital Funding, Inc. 7.25% 02/15/2011 2,000 1,785/A/ Sprint Capital Corporation 4.78% 08/17/2006 470 483/C/ Sprint Capital Corporation 8.38% 03/15/2012 200 242 Sprint Capital Corporation 8.75% 03/15/1932 910 1,155 TCI Communications Financing III 9.65% 03/31/2027 3,000 3,513 The Williams Companies, Inc. Credit Linked Certificates 6.75% 04/15/2009 1,740 1,814/B/ --------------- 17,557 --------------- Telecommunications -- 1.7% Citizens Communications Company 8.50% 05/15/2006 540 579 Emmis Operating Company 6.88% 05/15/2012 250 259 L-3 Communications Corp. 7.63% 06/15/2012 275 303 Qwest Corporation 6.88% 09/15/1933 1,000 843/A/ SBC Communications Inc. 5.88% 08/15/2012 260 278 Verizon New York Inc. 6.88% 04/01/2012 340 378/A/ --------------- 2,640 --------------- Telecommunications (Cellular/Wireless) -- 1.3% AT&T Wireless Services Inc. 7.50% 05/01/2007 500 551 AT&T Wireless Services Inc. 8.13% 05/01/2012 95 115 AT&T Wireless Services Inc. 8.75% 03/01/1931 475 623 Motorola, Inc. 7.63% 11/15/2010 350 410/A/ Nextel Communications, Inc. 7.38% 08/01/2015 365 392 --------------- 2,091 --------------- Transportation -- 0.9% Continental Airlines, Inc. 6.55% 02/02/2019 84 81 Continental Airlines, Inc. 7.26% 03/15/2020 250 247 Delta Air Lines, Inc. 7.57% 11/18/2010 160 144 Delta Air Lines, Inc. 6.42% 07/02/2012 400 406 Delta Air Lines, Inc. 6.72% 07/02/2024 302 310 Northwest Airlines Corporation 7.58% 03/01/2019 85 85 United Airlines, Inc. 7.78% 01/01/2014 102 84/E/ --------------- 1,357 --------------- Total Corporate Bonds and Notes (Identified Cost -- $100,188) 105,382 - ----------------------------------------------------------------------------------------------------------------------------------- Mortgage-Backed Securities -- 0.8% Fixed Rate Securities -- 0.8% Glendale Federal Savings Bank 1978-A 9.13% 01/25/2008 11 11 Nomura Asset Securities Corporation 1996-MD5 7.12% 04/13/1939 1,170 1,239 --------------- 1,250 Total Mortgage-Backed Securities (Identified Cost -- $1,180) 1,250 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Government and Agency Obligations -- 0.2% Fixed Rate Securities -- 0.2% United States Treasury Bonds 5.38% 02/15/1931 300 322 --------------- Total U.S. Government and Agency Obligations (Identified Cost -- $327) 322 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities -- 0.1% Fixed Rate Securities - -- 0.1% Fannie Mae 8.00% 04/25/2006 57 58 Fannie Mae 11.50% 11/01/2017 25 29 Fannie Mae 14.00% 02/01/2018 46 54 Freddie Mac 10.25% 05/01/2009 35 38 --------------- 179 --------------- Total U.S. Government Agency Mortgage-Backed Securities (Identified Cost -- $166) 179 - ----------------------------------------------------------------------------------------------------------------------------------- Yankee Bonds /F/ -- 26.4% Banking and Finance -- 1.5% Corporacion Andina de Fomento 2.01% 01/26/2007 470 471/D/ HBOS Capital Funding LP 6.07% 06/30/1949 560 592/B/ HBOS Treasury Services plc 4.00% 09/15/2009 420 421/B/ Mizuho Financial Group, Inc. 5.79% 04/15/2014 750 774/B/ --------------- 2,258 --------------- Banks -- 2.3% ABN Amro Bank Nv 4.65% 06/04/2018 580 546/A/ HSBC Holdings plc 5.25% 12/12/2012 970 1,006 Korea Exchange Bank 13.75% 06/30/2010 1,000 1,076/B,C/ Royal Bank of Scotland Group plc 8.82% 03/31/1949 1,000 1,031 --------------- 3,659 --------------- Cable -- 0.2% British Sky Broadcasting Group plc 6.88% 02/23/2009 330 365 --------------- Diversified Financial Services -- 0.4% Encana Holdings Finance Corp 5.80% 05/01/2014 515 547 --------------- Electric -- 0.5% Empresa Nacional de Electricidad S.A. 8.50% 04/01/2009 670 756/A/ --------------- Foreign Governments -- 8.9% Federative Republic of Brazil 14.50% 10/15/2009 180 232 Federative Republic of Brazil 12.00% 04/15/2010 210 250/A/ Federative Republic of Brazil 2.13% 04/15/2012 169 157/D/ Federative Republic of Brazil 2.13% 04/15/2012 264 244/D/ Federative Republic of Brazil 8.00% 04/15/2014 305 302/A/ Federative Republic of Brazil 11.00% 08/17/1940 340 381/A/ Province of Manitoba 9.50% 09/15/2018 730 1,071 Quebec Province 7.22% 07/22/1936 980 1,371/C/ Republic of Bulgaria 8.25% 01/15/2015 20 25/B/ Republic of Bulgaria 8.25% 01/15/2015 508 626 Republic of Chile 2.06% 01/28/2008 320 321/D/ Republic of Colombia 10.50% 07/09/2010 200 230/A/ Republic of Colombia 11.75% 02/25/2020 260 318/A/ Republic of Panama 9.63% 02/08/2011 170 195 Republic of Panama 9.38% 07/23/2012 110 125 Republic of Panama 10.75% 05/15/2020 100 120 Republic of Panama 9.38% 01/16/2023 110 120 Republic of Peru 5.00% 03/07/2017 463 426 Republic of Peru 8.75% 11/21/1933 90 89/A/ Republic of South Africa 7.38% 04/25/2012 250 282 Republic of South Africa 6.50% 06/02/2014 260 278/A/ Russian Federation 5.00% 03/31/1930 1,650 1,587/C/ Russian Ministry of Finance 3.00% 05/14/2006 80 78 United Mexican States 8.38% 01/14/2011 1,460 1,712 United Mexican States 11.50% 05/15/2026 2,260 3,401/A/ --------------- 13,941 --------------- Insurance -- 1.0% Axa 8.60% 12/15/1930 550 712 Oil Insurance Ltd 5.15% 08/15/1933 220 223/B/ XL Capital plc 6.50% 01/15/2012 500 549 --------------- 1,484 --------------- Investment Banking/Brokerage -- 2.1% Credit Suisse First Boston, London 7.90% 05/29/1949 3,000 3,311/B/ --------------- Manufacturing (Diversified) -- 1.2% Tyco International Group SA 6.38% 02/15/2006 300 314 Tyco International Group SA 6.38% 10/15/2011 1,450 1,603 --------------- 1,917 --------------- Oil and Gas -- 1.3% Gazprom 9.63% 03/01/2013 20 22 Petrobras International Finance Company (PIFCO) 9.75% 07/06/2011 345 402 Petroliam Nasional Berhad 7.13% 08/15/2005 150 154/B/ Petroliam Nasional Berhad 7.63% 10/15/2026 1,260 1,486/B/ --------------- 2,064 --------------- Special Purpose -- 4.0% Aries Vermogensverwaltungs 9.60% 10/25/2014 250 281/B/ Deutsche Telekom International Finance BV 8.75% 06/15/1930 1,000 1,293 Gaz Capital S.A. 8.63% 04/28/1934 50 53/B/ Gemstone Investors Limited 7.71% 10/31/2004 375 375/B/ HSBC Capital Funding LP 4.61% 12/29/1949 780 749/A,B/ Petrozuata Finance, Inc. 8.22% 04/01/2017 3,205 3,157/B/ UFJ Finance Aruba AEC 6.75% 07/15/2013 355 394 --------------- 6,302 --------------- Telecommunications -- 2.4% British Telecommunications plc 8.88% 12/15/1930 330 434 France Telecom SA 9.25% 03/01/1931 1,060 1,405 INTELSAT 6.50% 11/01/2013 505 414 Tele Norte Leste Participacoes S.A. 8.00% 12/18/2013 410 398/B/ Telecom Italia S.p.A. 5.25% 11/15/2013 750 764/B/ Telecom Italia S.p.A. 4.95% 09/30/2014 70 69/B/ Telus Corporation 7.50% 06/01/2007 250 274 --------------- 3,758 --------------- Telecommunications (Cellular/Wireless) -- 0.2% Rogers Wireless Communications Inc. 6.38% 03/01/2014 300 276 --------------- Utilities -- 0.4% United Utilities plc 5.38% 02/01/2019 580 571 --------------- Total Yankee Bonds (Identified Cost -- $37,769) 41,209 Total Long-Term Securities (Identified Cost -- $139,630) 148,342 - ----------------------------------------------------------------------------------------------------------------------------------- Investment of Proceeds from Securities Lending 16.0% State Street Navigator Securities Lending Prime Portfolio Total Investment of Proceeds From Securities Lending (Identified Cost - $24,989) 24,989shs $24,989 - ----------------------------------------------------------------------------------------------------------------------------------- Short-Term Securities -- 3.8% Repurchase Agreements -- 3.8% Deutsche Bank AG 1.85%, dated 9/30/04, to be repurchased at $2,987 on 10/1/04 (Collateral: $2,992 Fannie Mae notes, 4.61%, due 10/10/13, value $3,112) $2,987 2,987 Goldman, Sachs & Company 1.85%, dated 9/30/04, to be repurchased at $2,900 on 10/1/04 (Collateral: $2,750 Fannie Mae notes, 5.25%, due 3/15/11, value $2,969) 2,900 2,900 --------------- Total Short-Term Securities (Identified Cost -- $5,887) 5,887 - ----------------------------------------------------------------------------------------------------------------------------------- Total Investments -- 114.7% (Identified Cost -- $170,506) 179,218 Obligation to Return Collateral for Securities Loaned - (16.0%) (24,989) Other Assets Less Liabilities -- 1.3% 2,063 --------------- Net Assets -- 100.0% $156,292 - -----------------------------------------------------------------------------------------------------------------------------------
/A/ All or a portion of these securities are on loan. /B/ Rule 144a Security - A security purchased pursuant to Rule 144a under the Securities Act of 1933 which may not be resold subject to that rule except to qualified institutional buyers. These securities represent 13.6% of net assets. /C/ Stepped coupon security - A security with a predetermined schedule of interest or dividend rate changes. /D/ Indexed Security - The rates of interest earned on these securities are tied to the London Interbank Offered Rate ("LIBOR"). The coupon rates are the rates as of September 30, 2004. /E/ Bond is in default at September 30, 2004. /F/ Yankee Bond - A dollar-denominated bond issued in the U.S. by foreign entities. Security Valuation In valuing portfolio securities, securities listed or traded on a national securities exchange are valued at the last sales price. Each security traded in the over-the-counter market, including listed debt securities whose primary market is believed to be over-the-counter, is generally valued at the mean of the bid and asked prices at the time of computation. Prices are obtained from at least two dealers regularly making a market in the security, unless such prices can be obtained from only a single market maker. The difference between cost and market value is reflected separately as unrealized appreciation or depreciation of investments. Short-term securities are generally stated at cost plus interest earned, which approximates market value. Securities Lending The Company lends its securities to approved brokers to earn additional income and receives cash and U.S government securities as collateral against the loans. Cash collateral received is invested in a money market pooled account by the Company's lending agent. Collateral is maintained over the life of the loan in an amount not less than 100% of the value of loaned securities. At September 30, 2004, the market value of the securities on loan to broker-dealers was $24,989, for which the Company received collateral of $25,549 in cash. Such collateral is in the possession of the Company's custodian. The cash was invested in the State Street Navigator Securities Lending Prime Portfolio and is included in the Company's schedule of investments. As with other extensions of credit, the Company may bear the risk of delay in recovery or even loss of rights to the collateral should the borrower of the securities fail financially. Other information regarding the Fund is available in the Fund's most recent Report to Shareholders. This information is available on the Securities and Exchange Commission's website (www.sec.gov). Item 2 - Controls and Procedures (a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. (b) There were no changes in the Registrant's internal control over financial reporting during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting. Item 3 - Exhibits Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. 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 American Income Shares By: /s/ James W. Hirschmann - --------------------------------- James W. Hirschmann President, Pacific American Income Shares Date: November 22, 2004 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/ James W. Hirschmann - ------------------------------- James W. Hirschmann President, Pacific American Income Shares Date: November 22, 2004 By: /s/ Marie K. Karpinski - ---------------------------------- Marie K. Karpinski Treasurer and Principal Financial and Accounting Officer, Pacific American Income Shares Date: November 22, 2004
EX-31 2 pais302.txt PAIS 302 CERTIFICATION Certification Filed as Exhibit 3 to Form N-Q CERTIFICATION I, James W. Hirschmann, certify that: 1. I have reviewed this report on Form N-Q of Pacific American Income Shares; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 11/22/04 ----------------------------------- /s/ James W. Hirschmann - ------------------------ James W. Hirschmann President Pacific American Income Shares Certification Filed as Exhibit 3 to Form N-Q CERTIFICATION I, Marie K. Karpinski, certify that: 1. I have reviewed this report on Form N-Q of Pacific American Income Shares; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 11/22/04 ----------------------------------- /s/ Marie K. Karpinski - ------------------------ Marie K.Karpinski Treasurer and Principal Financial and Accounting Officer Pacific American Income Shares
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