N-CSRS 1 dncsrs.htm PACIFIC CAPITAL FUNDS Pacific Capital Funds

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-07454

 

 

 

 

 

 

 

Pacific Capital Funds

(Exact name of registrant as specified in charter)

 

3435 Stelzer Rd. Columbus, OH   43219
(Address of principal executive offices)   (Zip code)

 

 

Citi Fund Services 3435 Stelzer Rd. Columbus, OH 43219

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 614-470-8000

 

Date of fiscal year end: 07/31

 

Date of reporting period: 1/31/08


Item 1. Reports to Stockholders.


LOGO


Pacific Capital Family of Funds

 

                              Performance for the period ended 1/31/08
                              Aggregate Returns (%)    Average Annual Total Returns (%)

Fund Name

  

Class of Shares
(Max. Sales Charge%)

   Inception
Date
   Expense Ratios†    Six Months    One Year    Five Year    Ten Year    Since
Inception
                    Gross    w/Contractual
Waivers
   NAV*    Load**    NAV*    Load**    NAV*    Load**    NAV*    Load**    NAV*    Load**

New Asia

Growth Fund

   Class A    (5.25)    02/15/95    1.77    1.62    5.89    0.34    27.06    20.36    27.00    25.64    13.84    13.22    9.56    9.11
   Class B2    (5.00)    03/02/98    2.37    2.37    5.51    1.07    26.10    22.10    26.05    25.97    13.21    13.21    9.09    9.09
   Class C2    (1.00)    04/30/04    2.37    2.37    5.48    4.59    26.04    25.04    26.06    26.06    13.06    13.06    8.98    8.98
   Class Y       02/15/95    1.37    1.37    5.99    5.99    27.24    27.24    27.31    27.31    14.11    14.11    9.81    9.81

International

Stock Fund

   Class A3    (5.25)    12/08/98    1.60    1.35    -4.06    -9.08    6.04    0.50    18.67    17.41    —      —      6.06    5.44
   Class B3    (5.00)    12/20/98    2.20    2.10    -4.45    -8.91    5.20    1.28    17.81    17.71    —      —      5.43    5.43
   Class C3    (1.00)    04/30/04    2.20    2.10    -4.45    -5.35    5.21    4.23    17.78    17.78    —      —      5.31    5.31
   Class Y       12/02/98    1.20    1.10    -3.96    -3.96    6.33    6.33    18.98    18.98    —      —      6.37    6.37

Small Cap Fund

   Class A3    (5.25)    12/08/98    1.83    1.58    -11.80    -16.41    -14.33    -18.81    17.06    15.81    —      —      13.13    12.47
   Class B3    (5.00)    12/20/98    2.43    2.33    -12.12    -15.74    -14.98    -17.78    16.19    16.08    —      —      12.38    12.38
   Class C3    (1.00)    04/30/04    2.43    2.33    -12.12    -12.84    -14.97    -15.67    16.20    16.20    —      —      12.28    12.28
   Class Y       12/03/98    1.43    1.33    -11.70    -11.70    -14.15    -14.15    17.34    17.34    —      —      13.38    13.38

Mid-Cap Fund

   Class A    (5.25)    12/30/03    1.60    1.20    -11.72    -16.33    -9.80    -14.53    —      —      —      —      7.23    5.83
   Class C4    (1.00)    04/30/04    2.20    1.95    -12.06    -12.84    -10.48    -11.28    —      —      —      —      6.52    6.52
   Class Y       12/30/03    1.20    0.95    -11.59    -11.59    -9.62    -9.62    —      —      —      —      7.49    7.49

Growth Stock

Fund1

   Class A    (5.25)    10/14/94    1.51    1.16    -4.68    -9.71    -4.88    -9.88    7.25    6.09    2.08    1.53    9.08    8.88
   Class B2    (5.00)    03/02/98    2.11    1.91    -5.10    -9.84    -5.64    -9.41    6.41    6.25    1.50    1.50    8.88    8.88
   Class C2    (1.00)    04/30/04    2.11    1.91    -4.99    -5.94    -5.63    -6.58    6.44    6.44    1.37    1.37    8.83    8.83
   Class Y       10/14/94    1.11    0.91    -4.55    -4.55    -4.65    -4.65    7.49    7.49    2.35    2.35    9.21    9.21

Growth & Income

Fund1

   Class A    (5.25)    10/14/94    1.48    1.13    -5.10    -10.09    -7.22    -12.10    8.77    7.61    2.45    1.91    8.07    7.87
   Class B2    (5.00)    03/02/98    2.08    1.88    -5.47    -9.93    -7.96    -11.43    7.96    7.81    1.82    1.82    7.85    7.85
   Class C2    (1.00)    04/30/04    2.08    1.88    -5.55    -6.44    -7.97    -8.84    7.96    7.96    1.68    1.68    7.80    7.80
   Class Y       10/14/94    1.08    0.88    -5.08    -5.08    -7.06    -7.06    9.04    9.04    2.68    2.68    8.33    8.33

Value Fund

   Class A5    (5.25)    12/08/98    1.45    1.10    -6.69    -11.56    -7.50    -12.34    12.27    11.06    —      —      3.97    3.36
   Class B5    (5.00)    12/13/98    2.05    1.85    -7.11    -10.94    -8.20    -11.23    11.40    11.27    —      —      3.28    3.28
   Class C5    (1.00)    04/30/04    2.05    1.85    -7.05    -7.82    -8.13    -8.89    11.43    11.43    —      —      3.21    3.21
   Class Y       12/03/98    1.05    0.85    -6.56    -6.56    -7.25    -7.25    12.54    12.54    —      —      4.23    4.23

High Grade Core

Fixed Income

Fund1

   Class A    (4.00)    10/14/94    1.23    0.93    6.42    2.18    7.97    3.61    3.78    2.93    5.19    4.76    4.52    4.38
   Class B2    (5.00)    03/02/98    1.83    1.68    6.03    1.03    7.28    3.28    3.01    2.84    4.59    4.59    4.32    4.32
   Class C2    (1.00)    04/30/04    1.83    1.68    6.03    5.03    7.28    6.28    3.01    3.01    4.45    4.45    4.27    4.27
   Class Y       10/14/94    0.83    0.68    6.61    6.61    8.28    8.28    4.00    4.00    5.44    5.44    4.79    4.79

Tax-Free

Securities Fund1

   Class A    (4.00)    10/14/94    1.23    0.93    3.34    -0.80    4.44    0.29    3.33    2.49    4.15    3.72    3.42    3.28
   Class B2    (5.00)    03/02/98    1.83    1.68    2.96    -2.04    3.67    -0.33    2.56    2.39    3.56    3.56    3.23    3.23
   Class C2    (1.00)    04/30/04    1.83    1.68    3.05    2.05    3.76    2.76    2.58    2.58    3.43    3.43    3.18    3.18
   Class Y       10/14/94    0.83    0.68    3.46    3.46    4.68    4.68    3.58    3.58    4.40    4.40    3.68    3.68

High Grade Short

Intermediate Fixed

Income Fund

   Class A    (2.25)    12/13/93    1.22    0.77    5.63    3.25    7.55    5.13    3.06    2.59    4.37    4.14    4.39    4.22
   Class C4    (1.00)    04/30/04    1.82    1.52    5.13    4.13    6.75    5.75    2.46    2.46    4.07    4.07    4.18    4.18
   Class Y6       10/14/94    0.82    0.52    5.64    5.64    7.69    7.69    3.29    3.29    4.63    4.63    4.64    4.64

Tax-Free Short

Intermediate

Securities Fund1

   Class A    (2.25)    10/14/94    1.23    0.98    3.90    1.57    5.22    2.86    2.29    1.82    3.19    2.96    3.88    3.76
   Class C4    (1.00)    04/30/04    1.83    1.73    3.52    2.52    4.44    3.44    1.71    1.71    2.90    2.90    3.73    3.73
   Class Y       10/14/94    0.83    0.73    4.01    4.01    5.55    5.55    2.53    2.53    3.44    3.44    4.16    4.16

U.S. Government

Short Fixed

Income Fund

   Class A7    (2.25)    08/01/00    1.07    0.65    5.25    2.90    7.61    5.21    3.05    2.57    —      —      3.81    3.50
   Class B7    (5.00)    08/01/00    1.67    1.40    4.86    -0.14    6.82    2.82    2.28    2.10    —      —      3.06    3.06
   Class C7    (1.00)    04/30/04    1.67    1.40    4.86    3.86    6.81    5.81    2.28    2.28    —      —      3.06    3.06
   Class Y       06/01/00    0.67    0.40    5.38    5.38    7.98    7.98    3.32    3.32    —      —      4.08    4.08

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-258-9232, or visit the Funds’ website at pacificcapitalfunds.com.

 

The above expense ratios are from the Funds’ prospectus dated November 28, 2007. Additional information pertaining to the Funds’ expense ratios as of January 31, 2008 can be found in the financial highlights.

Investment Risk Considerations for the New Asia Growth, International Stock, Small Cap, Mid-Cap, Value, Tax-Free Securities and Tax-Free Short Intermediate Securities Funds, respectively:

International investing involves increased risk and volatility.

Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure and, historically, their stocks have experienced a greater degree of market volatility than stocks on average.

Mid-capitalization funds may involve greater risk than larger, more established companies as they may trade less frequently or in limited volume and have a higher risk of failure.

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Income earned on tax-free funds may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax.

See additional footnotes on following page.


Pacific Capital Family of Funds, continued

 

* Net Asset Value. No sales charge applied.

 

** Maximum applicable sales charge applied.

 

1

The quoted performance of noted Pacific Capital Funds includes the performance of certain common trust fund (“Commingled”) accounts advised by Pacific Century Trust and managed the same as the Fund in all material respects, for periods dating back to 10/31/77 for the Pacific Capital Growth Stock Fund, the Pacific Capital Growth & Income Fund, the Pacific Capital High Grade Core Fixed Income Fund and the Pacific Capital Tax-Free Securities Fund, and to 3/31/88 for the Pacific Capital Tax-Free Short Intermediate Securities Fund and prior to the Funds’ commencement of operations, by share class, noted above. The Commingled accounts were not registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and therefore were not subject to the investment restrictions imposed by law on registered mutual funds. If the Commingled accounts had been registered, the Commingled accounts’ performance may have been adversely affected.

 

2

Class C Shares performance prior to April 30, 2004 is based on the performance of the Class B Shares. Performance for any period prior to March 2, 1998, is based on the performance of the Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.

 

3

Class C Shares performance prior to April 30, 2004 is based on the performance of the Class B Shares. Performance for Class A, Class B and Class C Shares for any period before its inception date is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.

 

4

Class C Shares performance prior to April 30, 2004 is based on the performance of the Class A Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.

 

5

Class C Shares performance prior to April 30, 2004 is based on the performance of the Class B Shares. Performance for any period prior to December 13, 1998, is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.

 

6

Class Y Shares performance prior to October 14, 1994 is based on the performance of the Class A Shares.

 

7

Class C Shares performance prior to April 30, 2004 is based on the performance of the Class B Shares. Performance for any period prior to August 1, 2000, is based on the performance of the Class Y Shares, which does not reflect the higher 12b-1 fees. Had the higher 12b-1 fees been reflected, total return figures may have been adversely affected.


Table of Contents

Letter to Shareholders

Page 1

Portfolio Composition

Page 3

Statements of Assets and Liabilities

Page 4

Statements of Operations

Page 7

Statements of Changes in Net Assets

Page 10

Schedules of Portfolio Investments

Page 18

Notes to Financial Statements

Page 51

Financial Highlights

Page 61

Trustees and Officers

Page 73

Additional Information

Page 76


Letter to Shareholders

Dear Shareholders:

Thank you for investing with the Pacific Capital Funds. We value the trust you place in us, and we seek to provide world-class investment management to help you meet your financial goals.

The Pacific Capital Funds draw upon the investment expertise of the Bank of Hawaii. Bank of Hawaii’s investment management division was founded in 1898. It includes the Asset Management Group of Bank of Hawaii (AMG), which oversees the Pacific Capital Funds and has a total of $ 11.4 billion in assets under management. AMG has partnered with a select list of sub-advisors to provide Pacific Capital Funds’ shareholders with greater investment opportunities, broader diversification and access to an elite group of institutional money managers:

 

   

Chicago Equity Partners (CEP). CEP serves as Sub-Adviser on the Pacific Capital Mid-Cap Fund, Pacific Capital Growth Fund, Pacific Capital Growth and Income Fund and Pacific Capital Value Fund. CEP specializes in core domestic equity markets.

 

   

First State Investments (FSI), which specializes in single-country, regional and sector-specific investments, serves as Sub-Adviser to the Pacific Capital New Asia Growth Fund.

 

   

Hansberger Global Investors (HGI), founded in 1995 by former Templeton Worldwide President and CEO Thomas L. Hansberger, serves as Sub-Adviser to the Pacific Capital International Stock Fund.

 

   

Nicholas Applegate Capital Management (NACM), which specializes in global, international and domestic equity and special strategy management, serves as Sub-Adviser to the Pacific Capital Small Cap Fund.

Annual Review

Economic growth slowed considerably during the six months between August, 2007 and January, 2008. U.S. GDP1, which expanded at a healthy 4.9% rate during the third calendar quarter of 2007, grew only 0.6% during the fourth quarter.

The ongoing plunge in the housing market drove the broad economic slowdown. The housing slump weighed on a variety of housing-related businesses, such as homebuilders and home-improvement retailers. Furthermore, mortgage defaults rose rapidly, as overextended homeowners who could not meet their mortgage payments found themselves unable to sell their houses. Bonds backed by these mortgages defaulted, forcing many leading financial institutions to write down billions of dollars in investment losses.

Lenders, unsure how deep the default-related problems might run, became increasingly reluctant to extend credit, leading to a credit and liquidity crunch. Meanwhile, consumers facing higher energy and food prices and lower home values cut back their spending. Consumer spending accounts for more than two-thirds of U.S. economic activity, so weaker spending weighed on growth. The Federal Reserve Board (the “Fed”) responded to the problems in the credit market and the general economy by lowering its target short-term interest rate, the federal funds rate, from 5.25% in early September to 3.00% as of the end of January.

Corporate profits remained generally healthy throughout the period. Excluding banks and brokerage firms, which saw earnings decline dramatically as a result of write-downs and the troubles in the credit markets, the companies represented in the S&P 500 Index2 generated historically strong profit growth.

Stocks slide on economic concerns

Investor worries about a slowing economy and a credit squeeze caused the S&P 500 Index to decline 4.32% for this six-month period. Small-cap stocks as measured by the Russell 2000® Index3 fell 7.51 %, while the MSCI EAFE Index4 of 21 developed foreign stock markets lost 7.52%.

Large stocks generally outperformed smaller stocks, as the difference between the return of the S&P 500 Index and the Russell 2000® Index illustrates. Larger companies benefited from exposure to overseas markets, which appeared poised for stronger economic growth than the U.S. A weak dollar also strengthened shares of large firms during this six-month period, by helping make Americans firms’ products and services more competitive overseas and by increasing the value of revenues denominated in foreign currencies. Conversely, the troubles in the U.S. economy weighed on smaller firms.

 

Past performance does not guarantee future results.The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1 -800-258-9232, or visit the Funds’ website at pacificcapitalfunds.com.

 

1

Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States.

 

2

Standard & Poor’s 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. It is not possible to invest directly in any index.

 

3

The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000® Index. As of the latest reconstitution, the average market capitalization was approximately $664.9 million; the median market capitalization was approximately $539.5 million. The largest company in the index had an approximate market capitalization of $1.8 billion.

 

4

The Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index is an unmanaged, arithmetic, market value-weighted average of the performance of over 900 securities listed on the stock exchange of countries in Europe, Australia and the Far East.

 

1


Letter to Shareholders, continued

Financial stocks performed poorly. Investors sold shares of financial institutions as the companies struggled through the sub-prime mortgage crisis. Consumer discretionary stocks also suffered, due to investors’ concerns about the likely effects a decline in consumer spending would have on companies in the sector. Energy stocks posted strong gains during the first five months of the period on the strength of rising oil prices, before falling back in January as oil prices receded. Stocks in relatively defensive economic sectors, including utilities and consumer staples, performed well for the period as a whole.

Financial stocks’ weakness dragged down the performance of value indices, which hold large weightings in the financial sector. Growth stocks fared better than their value-oriented counterparts, but nevertheless finished the period with a loss. The Russell 3000® Value Index5, which tracks the performance of large, medium and small value stocks, lost 5.70%, while the Russell 3000® Growth Index6 fell 3.41%.

Foreign stocks surged early in the period, led by strong returns from emerging markets in Latin America and Asia. Foreign markets on the whole declined during the second half of the period, however, as investors worried that the U.S. economy’s troubles could crimp global growth.

A flight to quality in the bond markets

Bonds as a whole generated healthy returns during the period. The Lehman Brothers Aggregate Index7 gained 6.82% during the six months under review.

Investors concerned about the health of the economy and the credit markets flocked to Treasury bonds. That development caused prices on existing Treasury bonds to rise substantially, while yields, which move in the opposite direction of bond prices, declined considerably. Short-term government bonds saw the greatest yield declines, pushed down by investors’ desire for liquidity and the Fed’s interest rate reductions.

In other sectors of the bond market, higher-quality bonds outperformed lower-quality securities. Low-quality bonds had outperformed higher-quality securities for some time entering this period, causing the spread between the yields on high- and low-quality issues to shrink to historically low levels. Investors’ skittishness during this period led them to reassess credit risk, leading to substantial price declines on the lowest-quality bonds.

Our perspective

We expect economic weakness during at least the first half of 2008—whether or not the economy officially slides into recession. There is reason for economic optimism, however: In particular, we believe the proactive moves by the Fed and the economic stimulus package recently passed by Congress may help the economy recover later this year.

The stock and bond markets’ recent volatility seems likely to continue, given the uncertainty about the direction of the economy. Nevertheless, we believe that stock valuations are attractive following their recent declines, especially considering the general health of corporations outside of the financial sector.

The recently concluded six-month period should serve as a reminder of the value of building and maintaining diversified, long-term investment portfolios. No one can say with any certainty which investments will perform best or worst during the coming months—but a properly diversified portfolio can ensure that you hold investments that offer the potential for long-term growth, stability and income for your personal circumstances.

Thank you for your confidence in the Pacific Capital Funds. If you have any questions or would like a Fund prospectus, we encourage you to contact your registered investment professional, call Pacific Capital Funds at (800) 258-9232 or visit our website at www.pacificcapitalfunds.com.

 

Sincerely,
LOGO
Tobias M. Martyn

Senior Executive Vice President and Chief Investment Officer

Asset Management Group of Bank of Hawaii

 

Past performance does not guarantee future results.

 

5

The Russell 3000® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

 

6

The Russell 3000® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

 

7

The Lehman Brothers Aggregate Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

 

2


Portfolio Composition (as a percentage of total investments)*

January 31, 2008 (Unaudited)

 

New Asia Growth Fund

   %

Hong Kong

   28.4

Taiwan

   15.4

South Korea

   13.6

Malaysia

   13.4

Singapore

   11.2

Thailand

   4.2

Philippines

   3.7

China

   3.6

Papua New Guinea

   2.9

India

   1.8

Investment Companies

   1.8

International Stock Fund

   %

Japan

   14.6

United Kingdom

   13.7

France

   9.8

Switzerland

   9.5

Germany

   6.7

Brazil

   5.8

Italy

   4.1

Australia

   3.6

South Africa

   3.5

Canada

   3.3

Spain

   3.2

Russia

   2.8

China

   2.2

India

   2.1

Singapore

   1.9

Mexico

   1.8

Hong Kong

   1.7

Greece

   1.3

Norway

   1.3

Denmark

   1.2

Luxembourg

   1.0

Ireland

   0.8

Netherlands

   0.7

Taiwan

   0.6

Israel

   0.6

South Korea

   0.5

Austria

   0.5

Malaysia

   0.4

Thailand

   0.1

Investment Companies

   0.7

Small Cap Fund

   %

Industrials

   22.5

Information Technology

   16.1

Consumer Discretionary

   13.6

Health Care

   13.4

Financials

   9.6

Energy

   5.9

Consumer Staples

   4.5

Materials

   3.4

Real Estate Investment Trusts

   2.7

Telecommunication Services

   2.6

Utilities

   1.8

Transportation

   1.6

Mutual Funds

   1.3

Investment Companies

   1.0

Mid-Cap Fund

   %

Consumer Discretionary

   16.0

Industrials

   15.6

Health Care

   13.1

Financials

   10.9

Information Technology

   8.7

Energy

   6.4

Utilities

   6.3

Real Estate Investment Trusts

   5.6

Materials

   5.4

Consumer Staples

   4.2

Telecommunication Services

   2.8

Transportation

   2.0

Oil and Gas Services

   1.9

Entertainment

   0.7

Investment Companies

   0.4

Growth Stock Fund

   %

Information Technology

   21.6

Energy

   16.4

Health Care

   14.9

Consumer Discretionary

   11.7

Industrials

   9.3

Consumer Staples

   9.0

Financials

   8.8

Materials

   2.2

Oil and Gas Services

   2.0

Transportation

   1.0

Education

   0.7

Telecommunication Services

   0.5

Investment Companies

   1.9

Growth and Income Fund

   %

Financials

   17.8

Information Technology

   15.5

Energy

   13.8

Health Care

   12.2

Consumer Discretionary

   11.9

Industrials

   9.0

Consumer Staples

   8.0

Telecommunications

   3.4

Materials

   3.2

Transportation

   1.6

Utilities

   1.0

Real Estate Investment Trusts

   0.8

Investment Companies

   1.8

Value Fund

   %

Financials

   28.5

Energy

   17.9

Consumer Discretionary

   11.6

Industrials

   8.7

Health Care

   7.7

Telecommunications

   6.4

Consumer Staples

   6.0

Materials

   3.4

Utilities

   3.2

Information Technology

   2.5

Real Estate Investment Trusts

   1.9

Transportation

   0.8

Investment Companies

   1.4

High Grade Core Fixed Income Fund1

   %

Agency

   43.2

Treasury

   20.7

AAA

   9.4

BAA

   9.3

A

   9.2

AA

   8.2

Tax-Free Securities Fund1

   %

AAA/Prerefunded

   77.5

AA

   20.2

A

   1.2

BBB

   1.1

High Grade Short Intermediate Fixed Income Fund

   %

Federal Home Loan Bank

   29.4

Corporate Bonds

   23.4

Federal Home Loan Mortgage Corp.

   22.9

Federal National Mortgage Assoc.

   16.3

U.S. Treasury Obligations

   5.0

Federal Farm Credit Bank

   1.4

Investment Company

   1.6

Tax-Free Short Intermediate Securities Fund1

   %

AAA

   61.4

AA

   29.2

A

   5.7

BBB

   3.7

U.S. Government Short Fixed Income Fund

   %

Federal Home Loan Bank

   83.8

U.S. Treasury Obligations

   11.4

Federal Farm Credit Bank

   4.8

 

* The composition of the Funds’ portfolios is as of January 31, 2008 and subject to change.

 

1

Standard & Poor’s or Moody’s credit ratings are current opinions of the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings on medium term note programs and commercial paper programs). A rating takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. The issue credit rating is not a recommendation to purchase, sell, or hold a financial obligation, inasmuch as it does not comment as to market price or suitability for a particular investor.

 

3


PACIFIC CAPITAL FUNDS

 

Statements of Assets and Liabilities

January 31, 2008

(Unaudited)

 

     New Asia
Growth
Fund
    International
Stock
Fund
    Small Cap
Fund
    Mid-Cap
Fund
 
Assets:         

Investments, at cost

   $ 93,515,316     $ 211,342,834     $ 425,596,541     $ 67,180,824  
                                

Investments, at value

   $ 120,893,854     $ 237,772,475     $ 387,291,215     $ 64,265,988  

Foreign currency, at value (cost $744,476, $6, $— and $—, respectively)

     747,211       8              

Unrealized appreciation on forward foreign currency exchange contracts

           1,645              

Income receivable

     100,564       219,235       170,552       57,955  

Receivable for capital shares issued

     5,393       15,136       1,315,846       8  

Receivable for investments sold

     520,474       3,624,945       6,542,992       728,063  

Reclaims receivable

           212,996              

Segregated cash balances with brokers for futures contracts

                 42,000        

Net receivable for variation margin on futures contracts

                 23,000        

Prepaid expenses and other assets

     6,771       16,737       37,507       2,029  
                                

Total Assets

     122,274,267       241,863,177       395,423,112       65,054,043  
                                
Liabilities:         

Cash overdraft

                 201,997        

Payable for capital shares redeemed

     32,308       88,246       2,871,909       11,190  

Payable for investments purchased

     126,334       2,629,323       3,728,963       164,190  

Unrealized depreciation on foreign currency exchange contracts

           676              

Accrued expenses and other payables:

        

Investment advisory fees

     42,291       72,233       123,428       19,392  

Sub-investment advisory fees

     52,863       88,114       214,208       11,082  

Administration and sub-administration fees

     9,515       18,574       30,387       4,987  

Compliance service fees

     717       1,469       2,933       422  

Distribution fees

     1,944       1,328       56,575       477  

Other fees

     59,035       68,861       30,112       30,904  
                                

Total Liabilities

     325,007       2,968,824       7,260,512       242,644  
                                
Net Assets:         

Capital (no par value)

     88,393,965       206,738,494       455,149,420       70,186,684  

Undistributed (distributions in excess of) net investment income

     (160,334 )     (362,654 )     (1,340,041 )     2,108  

Accumulated net realized gains (losses) from investments

     6,334,678       6,060,238       (27,260,630 )     (2,462,557 )

Net unrealized appreciation (depreciation) on investments

     27,380,951       26,458,275       (38,386,149 )     (2,914,836 )
                                

Net Assets

   $ 121,949,260     $ 238,894,353     $ 388,162,600     $ 64,811,399  
                                

Net Assets

        

Class A

   $ 4,779,519     $ 1,611,125     $ 164,471,453     $ 588,919  

Class B

     573,792       507,596       1,824,638       N/A  

Class C

     688,712       560,553       21,007,380       425,427  

Class Y

     115,907,237       236,215,079       200,859,129       63,797,053  
                                

Total

   $ 121,949,260     $ 238,894,353     $ 388,162,600     $ 64,811,399  
                                

Outstanding units of beneficial interest (shares)

        

Class A

     241,565       132,205       12,192,643       61,479  

Class B

     30,808       44,195       148,483       N/A  

Class C

     37,030       48,858       1,708,060       45,554  

Class Y

     5,754,556       18,980,401       14,563,525       6,644,202  
                                

Total

     6,063,959       19,205,659       28,612,711       6,751,235  
                                

Net Asset Value*

        

Class A—redemption price per share

   $ 19.79     $ 12.19     $ 13.49     $ 9.58  
                                

Class A—maximum sales charge

     5.25 %     5.25 %     5.25 %     5.25 %
                                

Class A—Maximum offering price per share
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent)

   $ 20.89     $ 12.87     $ 14.24     $ 10.11  
                                

Class B—offering price per share**

   $ 18.63     $ 11.49     $ 12.29       N/A  
                                

Class C—offering price per share**

   $ 18.60     $ 11.47     $ 12.30     $ 9.34  
                                

Class Y—offering and redemption price per share

   $ 20.14     $ 12.45     $ 13.79     $ 9.60  
                                

 

* Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding.
** Redemption price per share varies based on length of time shares are held.

 

See notes to financial statements.

 

4


PACIFIC CAPITAL FUNDS

 

Statements of Assets and Liabilities, continued

January 31, 2008

(Unaudited)

 

     Growth
Stock
Fund
    Growth and
Income
Fund
    Value
Fund
    High Grade
Core Fixed Income
Fund
 
Assets:         

Investments, at cost

   $ 153,542,845     $ 142,153,746     $ 136,851,917     $ 290,086,574  
                                

Investments, at value

   $ 151,304,984     $ 139,119,697     $ 133,252,349     $ 299,201,522  

Income receivable

     50,775       107,094       168,827       3,353,414  

Receivable for capital shares issued

     47       42       16,908       1,520  

Receivable for investments sold

                       532,632  

Prepaid expenses and other assets

     12,982       12,899       4,224       9,675  
                                

Total Assets

     151,368,788       139,239,732       133,442,308       303,098,763  
                                
Liabilities:         

Distributions payable

                       36,110  

Payable for capital shares redeemed

     18,456       8,844       7,194       19,794  

Payable for investments purchased

                       2,000,000  

Accrued expenses and other payables:

        

Investment advisory fees

     45,672       41,316       39,124       115,298  

Sub-investment advisory fees

     32,623       29,511       27,946        

Administration and sub-administration fees

     11,744       10,624       10,060       23,060  

Compliance service fees

     976       886       839       1,706  

Distribution fees

     6,741       4,457       2,607       2,577  

Other fees

     36,314       31,430       35,272       53,215  
                                

Total Liabilities

     152,526       127,068       123,042       2,251,760  
                                
Net Assets:         

Capital (no par value)

     232,660,101       145,994,800       140,286,522       293,413,625  

Undistributed (distributions in excess of) net investment income

     (5,337 )     11,094       25,429       51,846  

Accumulated net realized losses from investments

     (79,200,641 )     (3,859,398 )     (3,393,117 )     (1,733,416 )

Net unrealized appreciation (depreciation) on investments

     (2,237,861 )     (3,034,049 )     (3,599,568 )     9,114,948  
                                

Net Assets

   $ 151,216,262     $ 139,112,447     $ 133,319,266     $ 300,847,003  
                                

Net Assets

        

Class A

   $ 7,371,337     $ 5,223,570     $ 2,297,788     $ 3,179,092  

Class B

     4,292,669       2,238,022       830,215       1,307,223  

Class C

     1,602,418       1,689,128       1,719,443       981,802  

Class Y

     137,949,838       129,961,727       128,471,820       295,378,886  
                                

Total

   $ 151,216,262     $ 139,112,447     $ 133,319,266     $ 300,847,003  
                                

Outstanding units of beneficial interest (shares)

        

Class A

     813,715       400,401       283,054       287,709  

Class B

     513,939       183,948       104,775       118,568  

Class C

     191,965       138,972       216,385       89,048  

Class Y

     14,739,586       9,879,960       15,785,011       26,573,058  
                                

Total

     16,259,205       10,603,281       16,389,225       27,068,383  
                                

Net Asset Value

        

Class A—redemption price per share

   $ 9.06     $ 13.05     $ 8.12     $ 11.05  
                                

Class A—maximum sales charge

     5.25 %     5.25 %     5.25 %     4.00 %
                                

Class A—Maximum offering price per share
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent)

   $ 9.56     $ 13.77     $ 8.57     $ 11.51  
                                

Class B—offering price per share*

   $ 8.35     $ 12.17     $ 7.92     $ 11.03  
                                

Class C—offering price per share*

   $ 8.35     $ 12.15     $ 7.95     $ 11.03  
                                

Class Y—offering and redemption price per share

   $ 9.36     $ 13.15     $ 8.14     $ 11.12  
                                

 

* Redemption price per share varies based on length of time shares are held.

 

See notes to financial statements.

 

5


PACIFIC CAPITAL FUNDS

 

Statements of Assets and Liabilities, continued

January 31, 2008

(Unaudited)

 

     Tax-Free
Securities
Fund
    High Grade
Short Intermediate
Fixed Income
Fund
    Tax-Free Short
Intermediate
Securities
Fund
    U.S. Government
Short Fixed
Income
Fund
 
Assets:         

Investments, at cost

   $ 259,748,007     $ 64,050,834     $ 46,969,028     $ 82,232,657  
                                

Investments, at value

   $ 274,879,588     $ 65,721,836     $ 48,122,939     $ 84,832,461  

Cash

           283,753             938  

Income receivable

     2,596,522       656,051       481,485       1,265,913  

Receivable for capital shares issued

           27             68  

Receivable for investments sold

           4,419              

Prepaid expenses and other assets

     8,407       2,897       1,419       2,123  
                                

Total Assets

     277,484,517       66,668,983       48,605,843       86,101,503  
                                
Liabilities:         

Cash overdraft

                 462,683        

Distributions payable

     32,313       7,822       4,222       9,238  

Payable for capital shares redeemed

     421,682       1,348       17,346       20,117  

Accrued expenses and other payables:

        

Investment advisory fees

     106,118       11,845       16,316       8,251  

Administration and sub-administration fees

     21,224       5,098       3,671       6,519  

Compliance service fees

     1,605       377       297       1,060  

Distribution fees

     1,874       626       442       1,899  

Other fees

     50,544       22,057       21,697       25,055  
                                

Total Liabilities

     635,360       49,173       526,674       72,139  
                                
Net Assets:         

Capital (no par value)

     262,170,696       66,976,714       47,663,979       86,226,520  

Undistributed (distributions in excess of) net investment income

     35       (3,717 )     762        

Accumulated net realized losses from investments

     (453,155 )     (2,024,189 )     (739,483 )     (2,796,960 )

Net unrealized appreciation on investments

     15,131,581       1,671,002       1,153,911       2,599,804  
                                

Net Assets

   $ 276,849,157     $ 66,619,810     $ 48,079,169     $ 86,029,364  
                                

Net Assets

        

Class A

   $ 5,419,226     $ 974,230     $ 2,034,412     $ 2,450,655  

Class B

     846,381       N/A       N/A       598,931  

Class C

     11,015       505,810       10,703       1,043,504  

Class Y

     270,572,535       65,139,770       46,034,054       81,936,274  
                                

Total

   $ 276,849,157     $ 66,619,810     $ 48,079,169     $ 86,029,364  
                                

Outstanding units of beneficial interest (shares)

        

Class A

     533,257       98,842       198,408       236,331  

Class B

     83,280       N/A       N/A       57,765  

Class C

     1,084       51,365       1,044       100,645  

Class Y

     26,515,905       6,597,159       4,464,957       7,895,969  
                                

Total

     27,133,526       6,747,366       4,664,409       8,290,710  
                                

Net Asset Value*

        

Class A—redemption price per share

   $ 10.16     $ 9.86     $ 10.25     $ 10.37  
                                

Class A—maximum sales charge

     4.00 %     2.25 %     2.25 %     2.25 %
                                

Class A—Maximum offering price per share
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent)

   $ 10.58     $ 10.09     $ 10.49     $ 10.61  
                                

Class B—offering price per share**

   $ 10.16       N/A       N/A     $ 10.37  
                                

Class C—offering price per share**

   $ 10.17     $ 9.85     $ 10.25     $ 10.37  
                                

Class Y—offering and redemption price per share

   $ 10.20     $ 9.87     $ 10.31     $ 10.38  
                                

 

* Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding.
** Redemption price per share varies based on length of time shares are held.

 

See notes to financial statements.

 

6


PACIFIC CAPITAL FUNDS

 

Statements of Operations

Period Ended January 31, 2008

(Unaudited)

 

     New Asia
Growth
Fund
    International
Stock
Fund
    Small Cap
Fund
    Mid-Cap
Fund
 
Investment Income:         

Dividend income

   $ 1,464,485     $ 2,110,600     $ 2,259,844     $ 495,945  

Interest income

                 20,018        

Foreign tax withholding

     (154,652 )     (119,836 )            
                                

Total Investment Income

     1,309,833       1,990,764       2,279,862       495,945  
                                
Expenses:         

Investment advisory fees

     252,584       584,816       1,132,044       216,750  

Sub-investment advisory fees

     315,729       549,332       1,541,960       72,251  

Administration and sub-administration fees

     56,832       116,965       218,785       32,513  

Distribution fees—Class A

     7,262       2,967       426,140       1,341  

Distribution fees—Class B

     3,158       3,020       11,260        

Distribution fees—Class C

     3,295       3,102       119,164       2,287  

Accounting fees

     37,917       68,001       107,755       16,802  

Compliance service fees

     4,411       9,108       17,507       2,551  

Custodian fees

     89,756       82,059       26,302       20,351  

Transfer agent fees

     29,136       29,086       209,334       25,275  

Trustee fees

     5,551       11,602       22,922       3,261  

Other fees

     38,779       78,560       212,662       21,994  
                                

Total expenses before reductions

     844,410       1,538,618       4,045,835       415,376  

Less expenses waived/reimbursed by the adviser

           (129,957 )     (266,129 )     (90,312 )

Less expenses waived by the distributor—Class A

     (2,723 )     (1,113 )     (159,803 )     (503 )
                                

Net Expenses

     841,687       1,407,548       3,619,903       324,561  
                                

Net Investment Income (Loss)

     468,146       583,216       (1,340,041 )     171,384  
                                
Realized/Unrealized Gains (Losses) from Investments, Futures and Foreign Currency Transactions:         

Net realized gains (losses) from investments and foreign currency transactions

     16,237,598       9,652,798       (24,649,866 )     (2,375,061 )

Net realized gains from futures transactions

                 14,612        

Change in unrealized depreciation on investments, futures and foreign currency transactions

     (9,202,634 )     (19,117,388 )     (28,518,711 )     (6,541,172 )
                                

Net realized/unrealized gains (losses) from investments, futures and foreign currency transactions

     7,034,964       (9,464,590 )     (53,153,965 )     (8,916,233 )
                                

Change in net assets resulting from operations

   $ 7,503,110     $ (8,881,374 )   $ (54,494,006 )   $ (8,744,849 )
                                

 

See notes to financial statements.

 

7


PACIFIC CAPITAL FUNDS

 

Statements of Operations, continued

Period Ended January 31, 2008

(Unaudited)

 

     Growth
Stock
Fund
    Growth and
Income
Fund
    Value
Fund
    High Grade
Core Fixed Income
Fund
 
Investment Income:         

Dividend income

   $ 1,311,161     $ 1,488,601     $ 1,771,401     $ 86,911  

Interest income

                       8,249,505  
                                

Total Investment Income

     1,311,161       1,488,601       1,771,401       8,336,416  
                                
Expenses:         

Investment advisory fees

     463,781       422,096       403,778       917,589  

Sub-investment advisory fees

     210,809       191,862       183,535        

Administration and sub-administration fees

     75,892       69,071       66,074       137,640  

Distribution fees—Class A

     16,408       11,790       5,399       6,370  

Distribution fees—Class B

     26,180       13,592       4,867       7,110  

Distribution fees—Class C

     9,178       9,047       9,155       4,869  

Accounting fees

     34,141       30,785       30,264       66,515  

Compliance service fees

     5,924       5,370       5,151       10,541  

Custodian fees

     14,044       11,840       17,284       11,842  

Transfer agent fees

     50,793       39,538       30,203       31,513  

Trustee fees

     7,645       6,968       6,752       13,580  

Other fees

     62,665       55,442       45,059       80,239  
                                

Total expenses before reductions

     977,460       867,401       807,521       1,287,808  

Less expenses waived/reimbursed by the adviser

     (168,655 )     (153,515 )     (146,830 )     (229,398 )

Less expenses waived by the distributor—Class A

     (6,153 )     (4,421 )     (2,025 )     (2,389 )
                                

Net Expenses

     802,652       709,465       658,666       1,056,021  
                                

Net Investment Income

     508,509       779,136       1,112,735       7,280,395  
                                
Realized/Unrealized Gains (Losses) from Investments:         

Net realized gains (losses) from investments

     (2,022,792 )     (3,686,497 )     (3,279,930 )     2,411,903  

Change in unrealized appreciation (depreciation) on investments

     (5,205,844 )     (4,254,071 )     (7,237,802 )     9,526,938  
                                

Net realized/unrealized gains (losses) from investments

     (7,228,636 )     (7,940,568 )     (10,517,732 )     11,938,841  
                                

Change in net assets resulting from operations

   $ (6,720,127 )   $ (7,161,432 )   $ (9,404,997 )   $ 19,219,236  
                                

 

See notes to financial statements.

 

8


PACIFIC CAPITAL FUNDS

 

Statements of Operations, continued

Period Ended January 31, 2008

(Unaudited)

 

     Tax-Free
Securities
Fund
    High Grade
Short Intermediate
Fixed Income
Fund
    Tax-Free Short
Intermediate
Securities
Fund
    U.S. Government
Short Fixed
Income
Fund
 
Investment Income:         

Dividend income

   $ 14,994     $ 17,677     $ 9,027     $ 422  

Interest income

     7,228,471       1,669,906       1,027,045       2,106,725  
                                

Total Investment Income

     7,243,465       1,687,583       1,036,072       2,107,147  
                                
Expenses:         

Investment advisory fees

     852,822       165,217       126,630       175,612  

Administration and sub-administration fees

     127,925       29,739       22,794       39,513  

Distribution fees—Class A

     11,006       1,993       4,329       4,868  

Distribution fees—Class B

     4,710                   3,284  

Distribution fees—Class C

     55       2,561       53       5,455  

Accounting fees

     63,321       16,980       14,346       18,812  

Compliance service fees

     9,829       2,277       1,779       2,572  

Custodian fees

     24,824       6,155       8,923       6,796  

Transfer agent fees

     26,868       24,950       24,340       27,701  

Trustee fees

     12,564       2,891       2,298       3,874  

Other fees

     73,678       19,546       16,141       27,232  
                                

Total expenses before reductions

     1,207,602       272,309       221,633       315,719  

Less expenses waived/reimbursed by the adviser

     (213,206 )     (96,226 )     (25,326 )     (127,005 )

Less expenses waived by the distributor—Class A

     (4,127 )     (748 )     (1,623 )     (1,825 )
                                

Net Expenses

     990,269       175,335       194,684       186,889  
                                

Net Investment Income

     6,253,196       1,512,248       841,388       1,920,258  
                                
Realized/Unrealized Gains (Losses) from Investments:         

Net realized gains (losses) from investments

     (453,211 )     273,741       23,469       68,513  

Change in unrealized appreciation on investments

     3,850,395       1,838,756       1,101,436       2,519,497  
                                

Net realized/unrealized gains from investments

     3,397,184       2,112,497       1,124,905       2,588,010  
                                

Change in net assets resulting from operations

   $ 9,650,380     $ 3,624,745     $ 1,966,293     $ 4,508,268  
                                

 

See notes to financial statements.

 

9


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets

 

     New Asia Growth Fund     International Stock Fund     Small Cap Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
From Investment Activities:             
Operations:             

Net investment income (loss)

   $ 468,146     $ 1,341,468     $ 583,216     $ 2,384,781     $ (1,340,041 )   $ (1,063,298 )

Net realized gains (losses) from investments, futures and foreign currency transactions

     16,237,598       13,445,612       9,652,798       25,040,337       (24,635,254 )     75,279,321  

Net change in unrealized appreciation (depreciation) on investments, futures and foreign currency transactions

     (9,202,634 )     22,968,229       (19,117,388 )     24,814,151       (28,518,711 )     (28,351,126 )
                                                

Change in net assets resulting from operations

     7,503,110       37,755,309       (8,881,374 )     52,239,269       (54,494,006 )     45,864,897  
                                                
Distributions to Class A Shareholders:             

From net investment income

     (16,748 )     (30,376 )     (3,469 )     (10,569 )            

From net realized gains

     (554,220 )     (233,425 )     (126,628 )           (32,778,648 )     (15,602,529 )
Distributions to Class B Shareholders:             

From net investment income

     (1,577 )     (3,523 )     (102 )     (2,162 )            

From net realized gains

     (101,202 )     (65,066 )     (36,630 )           (369,645 )     (251,200 )
Distributions to Class C Shareholders:             

From net investment income

     (1,774 )     (2,951 )     (184 )     (1,971 )            

From net realized gains

     (115,822 )     (47,463 )     (42,315 )           (4,182,152 )     (1,512,887 )
Distributions to Class Y Shareholders:             

From net investment income

     (695,611 )     (1,307,692 )     (718,094 )     (2,600,031 )            

From net realized gains

     (18,299,741 )     (8,514,850 )     (15,706,421 )           (36,706,704 )     (16,320,588 )
                                                

Change in net assets from shareholder distributions

     (19,786,695 )     (10,205,346 )     (16,633,843 )     (2,614,733 )     (74,037,149 )     (33,687,204 )
                                                
Capital Transactions:             

Change in net assets from capital share transactions

     16,374,543       1,263,213       15,861,160       (13,143,116 )     (19,754,250 )     93,297,720  
                                                

Change in net assets

     4,090,958       28,813,176       (9,654,057 )     36,481,420       (148,285,405 )     105,475,413  
                                                
Net Assets:             

Beginning of year

     117,858,302       89,045,126       248,548,410       212,066,990       536,448,005       430,972,592  
                                                

End of year

   $ 121,949,260     $ 117,858,302     $ 238,894,353     $ 248,548,410     $ 388,162,600     $ 536,448,005  
                                                

Distributions in excess of net investment income

   $ (160,334 )   $ (87,230 )   $ (362,654 )   $ (224,021 )   $ (1,340,041 )   $  
                                                

 

 

See notes to financial statements.

 

10


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     New Asia Growth Fund     International Stock Fund     Small Cap Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
Capital Transactions:             
Class A:             

Proceeds from shares issued

   $ 1,980,814     $ 783,956     $ 1,247,965     $ 496,878     $ 35,276,068     $ 114,314,923  

Dividends reinvested

     462,361       215,939       109,752       8,371       29,790,004       14,385,367  

Cost of shares redeemed

     (448,917 )     (664,241 )     (687,076 )     (534,460 )     (72,541,703 )     (120,465,234 )
                                                

Change in net assets from Class A

   $ 1,994,258     $ 335,654     $ 670,641     $ (29,211 )   $ (7,475,631 )   $ 8,235,056  
                                                
Class B:             

Proceeds from shares issued

   $ 29,107     $ 95,081     $ 7,195     $ 53,290     $     $ 58,069  

Dividends reinvested

     70,687       45,049       33,403       1,862       352,112       238,041  

Cost of shares redeemed

     (135,240 )     (274,934 )     (147,609 )     (209,441 )     (411,064 )     (986,558 )
                                                

Change in net assets from Class B

   $ (35,446 )   $ (134,804 )   $ (107,011 )   $ (154,289 )   $ (58,952 )   $ (690,448 )
                                                
Class C:             

Proceeds from shares issued

   $ 153,596     $ 166,184     $ 62,450     $ 102,387     $ 4,674,924     $ 10,931,408  

Dividends reinvested

     112,631       48,033       42,499       1,971       3,660,806       1,347,711  

Cost of shares redeemed

     (72,579 )     (179,524 )     (76,455 )     (242,606 )     (4,283,320 )     (3,079,199 )
                                                

Change in net assets from Class C

   $ 193,648     $ 34,693     $ 28,494     $ (138,248 )   $ 4,052,410     $ 9,199,920  
                                                
Class Y:             

Proceeds from shares issued

   $ 10,614,871     $ 15,558,241     $ 24,580,507     $ 37,672,252     $ 23,586,767     $ 144,851,595  

Dividends reinvested

     16,064,079       7,216,565       12,492,530       140,765       31,750,368       13,068,368  

Cost of shares redeemed

     (12,456,867 )     (21,747,136 )     (21,804,001 )     (50,634,385 )     (71,609,212 )     (81,366,771 )
                                                

Change in net assets from Class Y

   $ 14,222,083     $ 1,027,670     $ 15,269,036     $ (12,821,368 )   $ (16,272,077 )   $ 76,553,192  
                                                

Change in net assets from capital transactions

   $ 16,374,543     $ 1,263,213     $ 15,861,160     $ (13,143,116 )   $ (19,754,250 )   $ 93,297,720  
                                                
Share Transactions:             
Class A:             

Issued

     94,439       39,710       89,173       38,788       2,108,292       6,010,678  

Reinvested

     21,790       11,983       8,275       651       2,006,061       775,074  

Redeemed

     (20,034 )     (34,381 )     (55,191 )     (41,853 )     (4,439,273 )     (6,451,599 )
                                                

Change in Class A

     96,195       17,312       42,257       (2,414 )     (324,920 )     334,153  
                                                
Class B:             

Issued

     1,241       5,045       561       4,596             3,152  

Reinvested

     3,543       2,642       2,670       150       26,005       13,736  

Redeemed

     (6,315 )     (14,963 )     (11,170 )     (18,084 )     (25,228 )     (55,256 )
                                                

Change in Class B

     (1,531 )     (7,276 )     (7,939 )     (13,338 )     777       (38,368 )
                                                
Class C:             

Issued

     7,335       9,105       4,856       8,824       305,185       613,373  

Reinvested

     5,653       2,815       3,400       159       270,170       77,723  

Redeemed

     (3,602 )     (9,909 )     (6,106 )     (20,786 )     (283,599 )     (171,118 )
                                                

Change in Class C

     9,386       2,011       2,150       (11,803 )     291,756       519,978  
                                                
Class Y:             

Issued

     471,870       824,223       1,815,028       3,002,553       1,420,899       7,556,310  

Reinvested

     746,488       398,281       922,535       10,711       2,091,592       692,915  

Redeemed

     (528,127 )     (1,187,164 )     (1,540,840 )     (4,250,018 )     (4,039,468 )     (4,193,411 )
                                                

Change in Class Y

     690,231       35,340       1,196,723       (1,236,754 )     (526,977 )     4,055,814  
                                                

Change in shares

     794,281       47,387       1,233,191       (1,264,309 )     (559,364 )     4,871,577  
                                                

 

See notes to financial statements.

 

11


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     Mid-Cap Fund     Growth Stock Fund     Growth and Income Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
From Investment Activities:             
Operations:             

Net investment income

   $ 171,384     $ 413,804     $ 508,509     $ 232,635     $ 779,136     $ 1,205,086  

Net realized gains (losses) from investments

     (2,375,061 )     9,339,409       (2,022,792 )     14,282,281       (3,686,497 )     19,482,302  

Net change in unrealized
appreciation (depreciation) on investments

     (6,541,172 )     (1,353,818 )     (5,205,844 )     5,478,060       (4,254,071 )     (3,753,343 )
                                                

Change in net assets resulting from operations

     (8,744,849 )     8,399,395       (6,720,127 )     19,992,976       (7,161,432 )     16,934,045  
                                                
Distributions to Class A
Shareholders:
            

From net investment income

     (733 )     (3,457 )     (20,159 )     (2,392 )     (23,259 )     (33,411 )

From net realized gains

     (70,748 )     (105,113 )                 (307,734 )      
Distributions to Class B
Shareholders:
            

From net investment income

                 (5,399 )     (1,893 )     (2,163 )     (1,898 )

From net realized gains

                             (138,122 )      
Distributions to Class C
Shareholders:
            

From net investment income

           (1,481 )     (2,039 )     (345 )     (1,718 )     (782 )

From net realized gains

     (49,554 )     (76,582 )                 (102,454 )      
Distributions to Class Y
Shareholders:
            

From net investment income

     (168,543 )     (430,668 )     (502,161 )     (212,093 )     (740,902 )     (1,196,850 )

From net realized gains

     (7,523,616 )     (7,791,799 )                 (7,376,837 )      
                                                

Change in net assets from shareholder distributions

     (7,813,194 )     (8,409,100 )     (529,758 )     (216,723 )     (8,693,189 )     (1,232,941 )
                                                
Capital Transactions:             

Change in net assets from capital share transactions

     9,773,187       (3,021,801 )     (10,879,909 )     (14,034,119 )     (93,654 )     (25,923,455 )
                                                

Change in net assets

     (6,784,856 )     (3,031,506 )     (18,129,794 )     5,742,134       (15,948,275 )     (10,222,351 )
                                                
Net Assets:             

Beginning of year

     71,596,255       74,627,761       169,346,056       163,603,922       155,060,722       165,283,073  
                                                

End of year

   $ 64,811,399     $ 71,596,255     $ 151,216,262     $ 169,346,056     $ 139,112,447     $ 155,060,722  
                                                

Undistributed (distributions in excess of) net investment income

   $ 2,108     $     $ (5,337 )   $ 15,912     $ 11,094     $  
                                                

 

See notes to financial statements.

 

12


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     Mid-Cap Fund     Growth Stock Fund     Growth and Income Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
Capital Transactions:             
Class A:             

Proceeds from shares issued

   $ 29,509     $ 129,870     $ 854,644     $ 1,844,027     $ 466,929     $ 1,922,868  

Dividends reinvested

     58,347       90,453       18,610       2,255       318,363       31,550  

Cost of shares redeemed

     (40,666 )     (411,174 )     (1,080,649 )     (2,891,919 )     (959,367 )     (1,981,641 )
                                                

Change in net assets from Class A

   $ 47,190     $ (190,851 )   $ (207,395 )   $ (1,045,637 )   $ (174,075 )   $ (27,223 )
                                                
Class B:             

Proceeds from shares issued

   $     $     $ 5,382     $ 12,422     $ 71,441     $ 15,672  

Dividends reinvested

                 5,034       1,794       131,214       1,805  

Cost of shares redeemed

                 (1,476,475 )     (4,046,880 )     (851,502 )     (2,726,151 )
                                                

Change in net assets from Class B

   $     $     $ (1,466,059 )   $ (4,032,664 )   $ (648,847 )   $ (2,708,674 )
                                                
Class C:             

Proceeds from shares issued

   $ 53,270     $ 78,265     $ 138,200     $ 365,336     $ 177,885     $ 317,793  

Dividends reinvested

     49,083       75,348       2,039       345       104,172       782  

Cost of shares redeemed

     (51,371 )     (221,389 )     (311,292 )     (685,924 )     (162,823 )     (643,229 )
                                                

Change in net assets from Class C

   $ 50,982     $ (67,776 )   $ (171,053 )   $ (320,243 )   $ 119,234     $ (324,654 )
                                                
Class Y:             

Proceeds from shares issued

   $ 10,052,503     $ 22,491,892     $ 7,404,114     $ 42,744,571     $ 8,919,181     $ 19,646,624  

Dividends reinvested

     6,222,120       6,344,791       65,580       28,615       5,132,245       88,238  

Cost of shares redeemed

     (6,599,608 )     (31,599,857 )     (16,505,096 )     (51,408,761 )     (13,441,392 )     (42,597,766 )
                                                

Change in net assets from Class Y

   $ 9,675,015     $ (2,763,174 )   $ (9,035,402 )   $ (8,635,575 )   $ 610,034     $ (22,862,904 )
                                                

Change in net assets from capital transactions

   $ 9,773,187     $ (3,021,801 )   $ (10,879,909 )   $ (14,034,119 )   $ (93,654 )   $ (25,923,455 )
                                                
Share Transactions:             
Class A:             

Issued

     2,464       10,341       87,731       192,630       31,532       130,375  

Reinvested

     5,636       7,785       1,987       239       22,667       2,126  

Redeemed

     (3,539 )     (33,768 )     (111,279 )     (307,744 )     (66,858 )     (133,889 )
                                                

Change in Class A

     4,561       (15,642 )     (21,561 )     (114,875 )     (12,659 )     (1,388 )
                                                
Class B:             

Issued

                 614       1,450       5,253       1,079  

Reinvested

                 609       205       10,024       130  

Redeemed

                 (163,490 )     (463,051 )     (61,245 )     (197,390 )
                                                

Change in Class B

                 (162,267 )     (461,396 )     (45,968 )     (196,181 )
                                                
Class C:             

Issued

     4,980       6,522       15,510       42,283       13,446       23,234  

Reinvested

     4,864       6,593       247       39       7,965       56  

Redeemed

     (4,670 )     (18,054 )     (34,103 )     (78,394 )     (12,449 )     (46,381 )
                                                

Change in Class C

     5,174       (4,939 )     (18,346 )     (36,072 )     8,962       (23,091 )
                                                
Class Y:             

Issued

     873,862       1,831,688       752,868       4,484,580       618,261       1,337,411  

Reinvested

     599,952       544,557       6,695       2,866       362,639       5,899  

Redeemed

     (604,319 )     (2,584,614 )     (1,630,185 )     (5,595,111 )     (908,288 )     (2,901,496 )
                                                

Change in Class Y

     869,495       (208,369 )     (870,622 )     (1,107,665 )     72,612       (1,558,186 )
                                                

Change in shares

     879,230       (228,950 )     (1,072,796 )     (1,720,008 )     22,947       (1,778,846 )
                                                

 

See notes to financial statements.

 

13


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     Value Fund     High Grade Core Fixed
Income Fund
    Tax-Free Securities Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
From Investment Activities:             
Operations:             

Net investment income

   $ 1,112,735     $ 2,148,969     $ 7,280,395     $ 15,399,710     $ 6,253,196     $ 12,616,692  

Net realized gains (losses) from investments

     (3,279,930 )     29,881,198       2,411,903       848,286       (453,211 )     845,316  

Net change in unrealized appreciation (depreciation) on investments

     (7,237,802 )     (11,305,014 )     9,526,938       (912,112 )     3,850,395       (2,263,544 )
                                                

Change in net assets resulting from operations

     (9,404,997 )     20,725,153       19,219,236       15,335,884       9,650,380       11,198,464  
                                                
Distributions to Class A Shareholders:             

From net investment income

     (16,296 )     (32,135 )     (71,644 )     (150,712 )     (115,024 )     (240,129 )

From net realized gains

     (429,326 )     (334,935 )                 (5,521 )     (5,509 )
Distributions to Class B Shareholders:             

From net investment income

     (2,400 )     (5,454 )     (26,698 )     (87,910 )     (16,131 )     (52,039 )

From net realized gains

     (155,040 )     (163,267 )                 (850 )     (1,690 )
Distributions to Class C Shareholders:             

From net investment income

     (5,113 )     (8,156 )     (18,255 )     (43,523 )     (186 )     (347 )

From net realized gains

     (309,838 )     (239,941 )                 (11 )     (10 )
Distributions to Class Y Shareholders:             

From net investment income

     (1,063,498 )     (2,137,579 )     (7,070,755 )     (14,790,453 )     (6,121,855 )     (12,324,177 )

From net realized gains

     (23,050,183 )     (18,856,455 )                 (274,361 )     (264,559 )
                                                

Change in net assets from shareholder distributions

     (25,031,694 )     (21,777,922 )     (7,187,352 )     (15,072,598 )     (6,533,939 )     (12,888,460 )
                                                
Capital Transactions:             

Change in net assets from capital share transactions

     18,054,625       (1,427,365 )     (25,014,114 )     18,252,103       (15,564,732 )     (4,733,676 )
                                                

Change in net assets

     (16,382,066 )     (2,480,134 )     (12,982,230 )     18,515,389       (12,448,291 )     (6,423,672 )
                                                
Net Assets:             

Beginning of year

     149,701,332       152,181,466       313,829,233       295,313,844       289,297,448       295,721,120  
                                                

End of year

   $ 133,319,266     $ 149,701,332     $ 300,847,003     $ 313,829,233     $ 276,849,157     $ 289,297,448  
                                                

Undistributed (distributions in excess of) net investment income

   $ 25,429     $ 1     $ 51,846     $ (41,197 )   $ 35     $ 35  
                                                

 

See notes to financial statements.

 

14


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     Value Fund     High Grade Core Fixed
Income Fund
    Tax-Free Securities Fund  
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
Capital Transactions:             
Class A:             

Proceeds from shares issued

   $ 132,692     $ 761,040     $ 356,437     $ 826,490     $ 249,294     $ 476,532  

Dividends reinvested

     325,452       248,033       54,546       111,400       67,988       134,662  

Cost of shares redeemed

     (517,671 )     (1,006,964 )     (473,371 )     (1,523,238 )     (471,022 )     (1,276,278 )
                                                

Change in net assets from Class A

   $ (59,527 )   $ 2,109     $ (62,388 )   $ (585,348 )   $ (153,740 )   $ (665,084 )
                                                
Class B:             

Proceeds from shares issued

   $     $ 54,944     $ 3,943     $ 6,011     $     $  

Dividends reinvested

     144,951       145,556       21,216       73,836       10,829       33,971  

Cost of shares redeemed

     (196,450 )     (526,404 )     (406,923 )     (1,406,977 )     (277,644 )     (1,308,938 )
                                                

Change in net assets from Class B

   $ (51,499 )   $ (325,904 )   $ (381,764 )   $ (1,327,130 )   $ (266,815 )   $ (1,274,967 )
                                                
Class C:             

Proceeds from shares issued

   $ 177,989     $ 275,434     $ 123,354     $ 214,494     $     $  

Dividends reinvested

     314,951       247,629       17,975       43,144       197       359  

Cost of shares redeemed

     (156,375 )     (765,205 )     (161,817 )     (621,624 )            
                                                

Change in net assets from Class C

   $ 336,565     $ (242,142 )   $ (20,488 )   $ (363,986 )   $ 197     $ 359  
                                                
Class Y:             

Proceeds from shares issued

   $ 15,025,273     $ 45,085,240     $ 10,453,539     $ 70,474,420     $ 15,497,921     $ 48,411,120  

Dividends reinvested

     15,981,172       12,547,672       615,756       1,184,100       293,268       278,586  

Cost of shares redeemed

     (13,177,359 )     (58,494,340 )     (35,618,769 )     (51,129,953 )     (30,935,563 )     (51,483,690 )
                                                

Change in net assets from Class Y

   $ 17,829,086     $ (861,428 )   $ (24,549,474 )   $ 20,528,567     $ (15,144,374 )   $ (2,793,984 )
                                                

Change in net assets from capital transactions

   $ 18,054,625     $ (1,427,365 )   $ (25,014,114 )   $ 18,252,103     $ (15,564,732 )   $ (4,733,676 )
                                                
Share Transactions:             
Class A:             

Issued

     13,349       69,132       33,147       77,209       24,734       46,877  

Reinvested

     37,912       23,689       5,032       10,391       6,752       13,236  

Redeemed

     (48,914 )     (91,780 )     (43,793 )     (141,923 )     (46,759 )     (125,657 )
                                                

Change in Class A

     2,347       1,041       (5,614 )     (54,323 )     (15,273 )     (65,544 )
                                                
Class B:             

Issued

           5,017       365       563              

Reinvested

     17,327       14,225       1,963       6,896       1,076       3,336  

Redeemed

     (19,125 )     (49,005 )     (37,939 )     (131,317 )     (27,559 )     (128,458 )
                                                

Change in Class B

     (1,798 )     (29,763 )     (35,611 )     (123,858 )     (26,483 )     (125,122 )
                                                
Class C:             

Issued

     19,435       25,730       11,286       20,037              

Reinvested

     37,552       24,128       1,662       4,031       20       35  

Redeemed

     (17,170 )     (70,852 )     (14,831 )     (57,952 )            
                                                

Change in Class C

     39,817       (20,994 )     (1,883 )     (33,884 )     20       35  
                                                
Class Y:             

Issued

     1,609,785       4,167,772       961,158       6,546,520       1,537,950       4,745,845  

Reinvested

     1,862,280       1,199,266       56,456       109,808       29,083       26,967  

Redeemed

     (1,286,972 )     (5,367,005 )     (3,282,727 )     (4,738,273 )     (3,063,161 )     (5,042,615 )
                                                

Change in Class Y

     2,185,093       34       (2,265,113 )     1,918,055       (1,496,128 )     (269,803 )
                                                

Change in shares

     2,225,459       (49,682 )     (2,308,221 )     1,705,990       (1,537,864 )     (460,434 )
                                                

 

See notes to financial statements.

 

15


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     High Grade
Short Intermediate Fixed
Income Fund
    Tax-Free
Short Intermediate
Securities Fund
    U.S. Government
Short Fixed
Income Fund
 
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
From Investment Activities:             
Operations:             

Net investment income

   $ 1,512,248     $ 2,968,857     $ 841,388     $ 1,997,274     $ 1,920,258     $ 4,340,495  

Net realized gains (losses) from investments

     273,741       (273,219 )     23,469       (54,774 )     68,513       (38,674 )

Net change in unrealized appreciation (depreciation) on investments

     1,838,756       367,254       1,101,436       (94,705 )     2,519,497       288,968  
                                                

Change in net assets resulting from operations

     3,624,745       3,062,892       1,966,293       1,847,795       4,508,268       4,590,789  
                                                
Distributions to Class A Shareholders:             

From net investment income

     (21,642 )     (46,519 )     (33,605 )     (75,560 )     (50,567 )     (104,990 )
Distributions to Class B Shareholders:             

From net investment income

                             (11,242 )     (40,257 )
Distributions to Class C Shareholders:             

From net investment income

     (9,192 )     (21,528 )     (124 )     (241 )     (18,589 )     (53,618 )
Distributions to Class Y Shareholders:             

From net investment income

     (1,477,753 )     (2,884,130 )     (807,659 )     (1,921,473 )     (1,839,860 )     (4,148,773 )
                                                

Change in net assets from shareholder distributions

     (1,508,587 )     (2,952,177 )     (841,388 )     (1,997,274 )     (1,920,258 )     (4,347,638 )
                                                
Capital Transactions:             

Change in net assets from capital share transactions

     200,566       1,999,489       (6,065,961 )     (12,448,040 )     (6,582,658 )     (11,429,346 )
                                                

Change in net assets

     2,316,724       2,110,204       (4,941,056 )     (12,597,519 )     (3,994,648 )     (11,186,195 )
                                                
Net Assets:             

Beginning of year

     64,303,086       62,192,882       53,020,225       65,617,744       90,024,012       101,210,207  
                                                

End of year

   $ 66,619,810     $ 64,303,086     $ 48,079,169     $ 53,020,225     $ 86,029,364     $ 90,024,012  
                                                

Undistributed net investment income

   $ (3,717 )   $ (7,378 )   $ 762     $ 762     $     $  
                                                

 

See notes to financial statements.

 

16


PACIFIC CAPITAL FUNDS

 

Statements of Changes in Net Assets, continued

 

     High Grade
Short Intermediate Fixed
Income Fund
    Tax-Free
Short Intermediate
Securities Fund
    U.S. Government
Short Fixed
Income Fund
 
     Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
    Period Ended
January 31,
2008
    Year Ended
July 31,
2007
 
     (Unaudited)           (Unaudited)           (Unaudited)        
Capital Transactions:             
Class A:             

Proceeds from shares issued

   $ 19,997     $ 20,205     $     $ 42,943     $ 228,816     $ 132,054  

Dividends reinvested

     19,314       39,954       28,237       64,014       28,768       58,205  

Cost of shares redeemed

     (80,808 )     (340,020 )     (216,698 )     (719,044 )     (145,166 )     (285,647 )
                                                

Change in net assets from Class A

   $ (41,497 )   $ (279,861 )   $ (188,461 )   $ (612,087 )   $ 112,418     $ (95,388 )
                                                
Class B:             

Proceeds from shares issued

   $     $     $     $     $ 37,600     $ 4,275  

Dividends reinvested

                             10,461       37,740  

Cost of shares redeemed

                             (292,918 )     (458,927 )
                                                

Change in net assets from Class B

   $     $     $     $     $ (244,857 )   $ (416,912 )
                                                
Class C:             

Proceeds from shares issued

   $ 42,263     $ 98,451     $     $     $ 120,867     $ 302,132  

Dividends reinvested

     9,073       21,344       124       243       18,186       52,928  

Cost of shares redeemed

     (72,420 )     (286,055 )                 (243,872 )     (757,324 )
                                                

Change in net assets from Class C

   $ (21,084 )   $ (166,260 )   $ 124     $ 243     $ (104,819 )   $ (402,264 )
                                                
Class Y:             

Proceeds from shares issued

   $ 6,824,134     $ 18,637,875     $ 3,086,055     $ 6,723,639     $ 8,147,217     $ 18,585,051  

Dividends reinvested

     167,487       326,887       7,148       6,468       768,838       1,840,631  

Cost of shares redeemed

     (6,728,474 )     (16,519,152 )     (8,970,827 )     (18,566,303 )     (15,261,455 )     (30,940,464 )
                                                

Change in net assets from Class Y

   $ 263,147     $ 2,445,610     $ (5,877,624 )   $ (11,836,196 )   $ (6,345,400 )   $ (10,514,782 )
                                                

Change in net assets from capital transactions

   $ 200,566     $ 1,999,489     $ (6,065,961 )   $ (12,448,040 )   $ (6,582,658 )   $ (11,429,346 )
                                                
Share Transactions:             
Class A:             

Issued

     2,075       2,103             4,260       22,593       13,116  

Reinvested

     1,995       4,168       2,796       6,355       2,821       5,783  

Redeemed

     (8,352 )     (35,467 )     (21,403 )     (71,276 )     (14,221 )     (28,448 )
                                                

Change in Class A

     (4,282 )     (29,196 )     (18,607 )     (60,661 )     11,193       (9,549 )
                                                
Class B:             

Issued

                             3,723       425  

Reinvested

                             1,027       3,749  

Redeemed

                             (28,946 )     (45,582 )
                                                

Change in Class B

                             (24,196 )     (41,408 )
                                                
Class C:             

Issued

     4,358       10,275                   11,853       30,003  

Reinvested

     938       2,228       13       24       1,785       5,257  

Redeemed

     (7,474 )     (29,825 )                 (23,940 )     (75,186 )
                                                

Change in Class C

     (2,178 )     (17,322 )     13       24       (10,302 )     (39,926 )
                                                
Class Y:             

Issued

     706,266       1,939,987       305,774       664,404       800,271       1,843,594  

Reinvested

     17,270       34,045       702       639       75,415       182,747  

Redeemed

     (694,840 )     (1,718,044 )     (886,810 )     (1,833,587 )     (1,502,639 )     (3,071,568 )
                                                

Change in Class Y

     28,696       255,988       (580,334 )     (1,168,544 )     (626,953 )     (1,045,227 )
                                                

Change in shares

     22,236       209,470       (598,928 )     (1,229,181 )     (650,258 )     (1,136,110 )
                                                

 

See notes to financial statements.

 

17


PACIFIC CAPITAL FUNDS

New Asia Growth Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (97.3%)  
China (3.6%)  
Consumer Discretionary (3.1%)  
1,123,000  

China Resources Enterprise Ltd.

  3,785,331
     
Energy (0.5%)  
310,000  

China Oilfield Services Ltd., Class H

  564,713
     
    4,350,044
     
Hong Kong (27.9%)  
Consumer Discretionary (8.0%)  
352,000  

Cheung Kong Holdings Ltd.

  5,707,685
106,000  

China Merchants Holdings International Co. Ltd.

  517,831
85,600  

Esprit Holdings Ltd.

  1,114,829
637,200  

Li & Fung Ltd.

  2,399,399
     
    9,739,744
     
Energy (0.9%)  
753,500  

CNOOC Ltd.

  1,065,033
     
Financials (4.2%)  
775,000  

Hang Lung Group Ltd.

  3,596,903
119,000  

Wing Hang Bank Ltd.

  1,546,262
     
    5,143,165
     
Industrials (5.6%)  
161,742  

Kerry Properties Ltd.

  1,090,374
309,500  

Swire Pacific Ltd., Class A

  4,203,096
622,500  

Swire Pacific Ltd., Class B

  1,585,656
     
    6,879,126
     
Telecommunications (3.5%)  
3,950,000  

China Telecom Corp. Ltd., Class H

  2,764,186
1,108,000  

Hutchison Telecommunications International Ltd.

  1,574,125
     
    4,338,311
     
Utilities (5.7%)  
2,521,800  

Hong Kong & China Gas Co. Ltd.

  6,910,379
     
    34,075,758
     
India (1.8%)  
Financials (1.3%)  
12,900  

HDFC Bank Ltd., ADR

  1,539,486
     
Information Technology (0.5%)  
14,500  

Infosys Technologies Ltd., ADR

  600,300
     
    2,139,786
     
Malaysia (13.3%)  
Consumer Discretionary (2.3%)  
1,245,500  

Genting Berhad

  2,838,167
     
Financials (1.3%)  
512,000  

Bumiputra-Commerce Holdings Berhad

  1,644,807
     
Industrials (9.7%)  
938,600  

Gamuda Berhad

  1,498,377
2,565,950  

IOI Corp. Berhad

  5,701,405
1,602,200  

Tenaga Nasional Berhad

  4,567,477
     
    11,767,259
     
      16,250,233
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Papua New Guinea (2.9%)  
Metals and Mining (2.9%)  
1,103,075  

Lihir Gold Ltd. (a)

  3,589,964
     
Philippines (3.7%)  
Financials (1.2%)  
125,152  

Ayala Corp.

  1,481,759
     
Telecommunications (2.5%)  
16,122  

Philippine Long Distance Telephone Co.

  1,198,749
23,700  

Philippine Long Distance Telephone Co., ADR

  1,783,425
     
    2,982,174
     
    4,463,933
     
Singapore (11.1%)  
Consumer Staples (1.1%)  
381,000  

Fraser & Neave Ltd.

  1,305,877
     
Financials (3.4%)  
130,000  

Great Eastern Holdings Ltd.

  1,468,262
516,346  

Oversea-Chinese Banking Corp. Ltd.

  2,751,083
     
    4,219,345
     
Industrials (4.3%)  
442,000  

Keppel Corp. Ltd.

  3,598,083
497,000  

SembCorp Industries Ltd.

  1,629,840
     
    5,227,923
     
Telecommunications (2.3%)  
857,000  

Singapore Telecommunications Ltd.

  2,232,969
292,290  

Starhub Ltd.

  613,473
     
    2,846,442
     
    13,599,587
     
South Korea (13.5%)  
Consumer Discretionary (3.2%)  
8,980  

LG Corp. (a)

  520,873
5,172  

Shinsegae Co. Ltd.

  3,377,714
     
    3,898,587
     
Financials (2.6%)  
9,856  

Samsung Fire & Marine Insurance Co. Ltd.

  1,969,903
21,780  

Shinhan Financial Group Co. Ltd. (a)

  1,166,127
     
    3,136,030
     
Industrials (0.4%)  
4,368  

Doosan Heavy Industries and Construction Co. Ltd. (a)

  432,783
     
Information Technology (5.8%)  
18,750  

S1 Corp.

  1,091,413
9,411  

Samsung Electronics Co. Ltd.

  5,997,001
     
    7,088,414
     
Pharmaceuticals (1.5%)  
9,228  

Yuhan Corp. (a)

  1,857,374
     
      16,413,188
     

 

See accompanying notes to financial statements.

 

18


PACIFIC CAPITAL FUNDS

New Asia Growth Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Taiwan (15.3%)  
Consumer Staples (1.1%)  
1,131,280  

Uni-President Enterprises Corp.

  1,397,831
     
Electrical Components & Equipment (1.7%)  
839,462  

Delta Electronics, Inc.

  2,150,218
     
Financials (1.3%)  
1,294,000  

Chinatrust Financial Holding Company Ltd. (a)

  1,042,921
1,022,200  

E.SUN Financial Holding Co. Ltd. (a)

  541,874
     
    1,584,795
     
Industrials (0.4%)  
215,000  

Formosa Plastics Corp.

  493,093
     
Information Technology (7.5%)  
522,406  

Asustek Computer, Inc.

  1,362,813
60,000  

MediaTek, Inc.

  597,940
545,132  

Powertech Technology, Inc.

  1,594,545
2,959,688  

Taiwan Semiconductor Manufacturing Co. Ltd.

  5,547,392
     
    9,102,690
     
Telecommunications (3.3%)  
1,872,454  

Chunghwa Telecom Co. Ltd.

  3,986,666
     
      18,715,293
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Thailand (4.2%)  
Energy (1.8%)  
225,100  

PTT Public Co. Ltd.

  2,196,430
     
Financials (1.2%)  
565,700  

Kasikornbank Public Co. Ltd.

  1,482,427
     
Telecommunications (1.2%)  
511,700  

Advanced Info Service Public Co. Ltd.

  1,457,424
     
    5,136,281
     
Total Common Stocks (Cost $91,355,529)   118,734,067
     
Investment Companies (1.8%)  
2,159,787  

Victory Federal Money Market Fund, Investor Shares, 3.10% (b)

  2,159,787
     
Total Investment Companies (Cost $2,159,787)   2,159,787
     
Total Investments (Cost $93,515,316)
(c)—99.1%
  120,893,854
Other assets in excess of liabilities—0.9%   1,055,406
     
Net Assets—100.0%   121,949,260
     

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $93,569,483. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 29,607,411  

Unrealized depreciation

     (2,283,040 )
        

Net unrealized appreciation

   $ 27,324,371  
        

 

ADR—American Depositary Receipt

 

See accompanying notes to financial statements.

 

19


PACIFIC CAPITAL FUNDS

International Stock Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (98.8%)  
Australia (3.6%)  
Energy (0.9%)  
49,560  

Woodside Petroleum Ltd.

  2,093,792
     
Financials (0.9%)  
93,869  

Westpac Banking Corp.

  2,188,691
     
Materials (1.8%)  
56,985  

BHP Billiton Ltd.

  1,910,266
21,680  

Rio Tinto Ltd.

  2,445,186
     
    4,355,452
     
        8,637,935
     
Austria (0.5%)  
Financials (0.5%)  
23,645  

Erste Bank de Oesterreichischen Sparkassen AG

  1,285,702
     
Brazil (5.8%)  
Consumer Staples (0.6%)  
19,690  

Companhia De Bebidas das Americas (AmBev)

  1,399,565
     
Energy (2.1%)  
45,014  

Petroleo Brasileiro SA, ADR

  5,002,856
     
Financials (0.6%)  
58,340  

Banco Itau Holding Financeira SA, ADR

  1,358,155
     
Materials (2.0%)  
75,820  

Companhia Vale do Rio Doce (CVRD), ADR

  2,273,084
96,779  

Companhia Vale do Rio Doce (CVRD), ADR, Preferred Shares

  2,519,157
     
    4,792,241
     
Utilities (0.5%)  
79,135  

Companhia Energetica de Minas Gerais SA, ADR

  1,260,621
     
    13,813,438
     
Canada (3.3%)  
Energy (1.4%)  
56,146  

Cameco Corp.

  1,900,542
15,445  

Suncor Energy, Inc.

  1,451,521
     
    3,352,063
     
Financials (1.9%)  
25,901  

Bank of Nova Scotia

  1,243,444
26,013  

IGM Financial, Inc.

  1,149,827
57,701  

Manulife Financial Corp.

  2,168,404
     
    4,561,675
     
    7,913,738
     
China (2.2%)  
Consumer Discretionary (1.4%)  
2,898,000  

Denway Motors Ltd.

  1,709,507
28,171  

Focus Media Holding Ltd., ADR (a)

  1,353,616
65,000  

Weichai Power Co. Ltd.

  327,833
     
    3,390,956
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
China, continued  
Health Care (0.3%)  
17,500  

China Medical Technologies, Inc.

  834,225
     
Industrials (0.5%)  
   552,000  

Cosco Pacific Ltd.

  1,107,017
     
    5,332,198
     
Denmark (1.2%)  
Industrials (1.2%)  
28,820  

Vestas Wind Systems A/S (a)

  2,799,699
     
France (9.8%)  
Consumer Discretionary (1.5%)  
11,715  

LVMH Moet Hennessy Louis Vuitton SA

  1,202,890
7,243  

PPR

  1,019,254
31,317  

Vivendi Universal SA

  1,261,769
     
        3,483,913
     
Consumer Staples (1.2%)  
41,339  

Carrefour SA

  2,910,684
     
Energy (1.4%)  
45,234  

Total SA, ADR

  3,292,131
     
Financials (2.2%)  
50,914  

AXA

  1,748,530
50,439  

AXA, ADR

  1,731,066
16,559  

BNP Paribas SA

  1,642,340
     
    5,121,936
     
Industrials (0.7%)  
15,192  

Schneider Electric SA

  1,757,063
     
Media (0.5%)  
50,336  

Societe Television Francaise 1

  1,275,131
     
Telecommunications (0.9%)  
24,633  

Iliad SA

  2,221,798
     
Utilities (1.4%)  
18,199  

Electricite de France

  1,897,824
22,409  

Suez SA

  1,372,455
     
    3,270,279
     
    23,332,935
     
Germany (6.7%)  
Consumer Discretionary (1.8%)  
65,436  

Adidas

  4,176,962
     
Financials (0.5%)  
37,857  

Commerzbank AG

  1,148,660
     
Health Care (0.8%)  
8,632  

Fresenius SE, Preferred Shares

  679,558
9,900  

Merck KGaA

  1,225,919
     
    1,905,477
     
Industrials (1.0%)  
18,463  

Siemens AG

  2,389,800
     

 

See accompanying notes to financial statements.

 

20


PACIFIC CAPITAL FUNDS

International Stock Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Germany, continued  
Information Technology (1.3%)  
65,805  

SAP AG, ADR

  3,145,479
     
Materials (0.8%)  
7,567  

Bayer AG

  624,407
6,117  

Wacker Chemie AG

  1,337,176
     
    1,961,583
     
Utilities (0.5%)  
6,485  

E.ON AG

  1,200,282
     
    15,928,243
     
Greece (1.3%)  
Consumer Discretionary (0.5%)  
36,258  

Folli-Follie SA, Registered Shares

  1,129,570
     
Financials (0.8%)  
30,938  

National Bank of Greece SA

  1,890,676
     
        3,020,246
     
Hong Kong (1.7%)  
Consumer Discretionary (1.2%)  
   211,000  

Esprit Holdings Ltd.

  2,748,002
     
Information Technology (0.5%)  
775,000  

Foxconn International Holdings Ltd. (a)

  1,296,885
     
    4,044,887
     
India (2.1%)  
Financials (0.8%)  
17,004  

HDFC Bank Ltd., ADR

  2,029,257
     
Information Technology (1.3%)  
74,727  

Infosys Technologies Ltd., ADR

  3,093,698
     
    5,122,955
     
Ireland (0.8%)  
Airlines (0.4%)  
30,801  

Ryanair Holdings PLC, ADR (a)

  1,029,369
     
Financials (0.4%)  
66,923  

Anglo Irish Bank Corp.

  954,326
     
    1,983,695
     
Israel (0.6%)  
Health Care (0.6%)  
32,815  

Teva Pharmaceutical Industries Ltd., ADR

  1,510,803
     
Italy (4.1%)  
Energy (2.4%)  
67,059  

ENI SpA

  2,167,896
104,860  

Saipem SpA

  3,641,021
     
    5,808,917
     
Financials (1.7%)  
544,929  

UniCredito Italiano SpA

  4,038,005
     
    9,846,922
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Japan (14.2%)  
Chemicals (0.7%)  
30,200  

Shin-Etsu Chemical Co., Ltd.

  1,597,565
     
Consumer Discretionary (2.5%)  
36,300  

Denso Corp.

  1,313,505
298,000  

Isuzu Motors Ltd.

  1,277,435
34,300  

Toyota Motor Corp.

  1,857,301
14,700  

Yamada Denki Co. Ltd.

  1,574,722
     
    6,022,963
     
Financials (3.4%)  
204,000  

Bank of Yokohama Ltd. (The)

  1,336,975
76,900  

Nomura Holdings, Inc.

  1,124,095
11,350  

ORIX Corp.

  1,960,275
52,800  

Promise Co. Ltd.

  1,732,727
   311,000  

Sumitomo Trust & Banking Co. Ltd. (The)

  2,002,457
     
    8,156,529
     
Health Care (0.5%)  
63,000  

Shionogi & Co. Ltd.

  1,183,433
     
Industrials (2.6%)  
65,000  

NGK Insulators Ltd.

  1,688,620
11,300  

SMC Corp.

  1,268,564
137,300  

Sumitomo Corp.

  1,918,931
67,300  

THK Co. Ltd.

  1,338,485
     
        6,214,600
     
Information Technology (3.8%)  
26,150  

Canon, Inc.

  1,108,735
17,700  

Nidec Corp.

  1,165,445
8,800  

Nintendo Co. Ltd.

  4,450,639
192,000  

Toshiba Corp.

  1,312,261
98,000  

Yaskawa Electric Corp.

  1,048,295
     
    9,085,375
     
Materials (0.7%)  
35,300  

Nitto Denko Corp.

  1,739,732
     
    34,000,197
     
Luxembourg (1.0%)  
Telecommunications (1.0%)  
21,645  

Millicom International Cellular SA (a)

  2,293,071
     
Malaysia (0.4%)  
Financials (0.4%)  
326,000  

Bumiputra-Commerce Holdings Berhad

  1,047,279
     
Mexico (1.8%)  
Consumer Staples (0.6%)  
37,771  

Wal-Mart de Mexico SA de CV, ADR

  1,355,465
     
Materials (0.3%)  
30,688  

Cemex SA de CV, ADR

  831,952
     

 

See accompanying notes to financial statements.

 

21


PACIFIC CAPITAL FUNDS

International Stock Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Mexico, continued  
Telecommunications (0.9%)  
34,646  

America Movil SAB de CV, Series L

  2,075,642
     
    4,263,059
     
Netherlands (0.7%)  
Consumer Discretionary (0.7%)  
42,684  

Koninklijke (Royal) Philips Electronics NV

  1,681,749
     
Norway (1.3%)  
Industrials (0.7%)  
62,421  

Renewable Energy Corp. AS (a)

  1,632,248
     
Materials (0.2%)  
82,000  

Norske Skogsindustrier ASA

  472,010
     
Oil & Gas Services (0.4%)  
47,700  

Subsea 7, Inc. (a)

  908,582
     
        3,012,840
     
Russia (2.8%)  
Energy (1.2%)  
23,330  

LUKOIL, ADR

  1,574,775
28,163  

OAO Gazprom, ADR

  1,353,232
     
    2,928,007
     
Materials (1.6%)  
30,355  

Evraz Group SA, GDR (b)

  2,206,809
6,410  

JSC MMC Norilsk Nickel, ADR

  1,522,375
     
    3,729,184
     
    6,657,191
     
Singapore (1.9%)  
Financials (0.7%)  
   140,000  

DBS Group Holdings Ltd.

  1,747,279
     
Industrials (0.6%)  
183,000  

Keppel Corp. Ltd.

  1,489,704
     
Real Estate (0.6%)  
300,000  

Keppel Land Ltd.

  1,329,962
     
    4,566,945
     
South Africa (0.5%)  
Telecommunications (0.5%)  
75,451  

MTN Group Ltd.

  1,206,281
     
South Korea (3.5%)  
Consumer Discretionary (1.2%)  
34,652  

Hyundai Motor Co.

  2,729,872
     
Financials (0.5%)  
18,918  

Kookmin Bank (a)

  1,244,614
     
Information Technology (1.8%)  
6,734  

Samsung Electronics Co. Ltd.

  4,291,128
     
    8,265,614
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Spain (3.2%)  
Financials (2.4%)  
96,040  

Banco Bilbao Vizcaya Argentaria SA

  2,020,004
205,840  

Banco Santander Central Hispano SA

  3,619,763
     
    5,639,767
     
Telecommunications (0.8%)  
68,020  

Telefonica SA

  1,988,204
     
    7,627,971
     
Switzerland (9.5%)  
Consumer Staples (1.3%)  
7,324  

Nestle SA

  3,279,830
     
Financials (1.3%)  
20,795  

Credit Suisse Group

  1,184,343
45,179  

UBS AG, Registered Shares

  1,877,432
     
    3,061,775
     
Health Care (3.7%)  
6,497  

Nobel Biocare Holding AG

  1,613,668
54,875  

Novartis AG

  2,780,922
16,010  

Roche Holding AG, Genusschien

  2,907,763
11,867  

Synthes, Inc.

  1,520,253
     
        8,822,606
     
Industrials (0.9%)  
86,025  

ABB Ltd.

  2,152,206
     
Materials (2.3%)  
18,159  

Holcim Ltd.

  1,774,025
15,177  

Lonza Group AG, Registered Shares

  1,948,351
6,567  

Syngenta AG

  1,732,314
     
    5,454,690
     
    22,771,107
     
Taiwan (0.6%)  
Information Technology (0.6%)  
   789,764  

Taiwan Semiconductor Manufacturing Co. Ltd.

  1,480,268
     
Thailand (0.1%)  
Financials (0.1%)  
59,800  

Bangkok Bank PCL

  223,038
     
United Kingdom (13.6%)  
Consumer Discretionary (1.1%)  
242,133  

British Sky Broadcasting Group PLC

  2,659,949
     
Consumer Staples (1.9%)  
24,608  

Reckitt Benckiser Group PLC

  1,288,811
401,755  

Tesco PLC

  3,358,088
     
    4,646,899
     
Financials (4.1%)  
102,106  

HBOS PLC

  1,422,580
106,676  

HSBC Holdings PLC

  1,582,397
115,197  

ICAP PLC

  1,559,426
194,649  

Man Group PLC

  2,142,836
369,755  

Old Mutual PLC

  922,343
172,467  

Prudential Corp. PLC

  2,210,707
     
    9,840,289
     

 

See accompanying notes to financial statements.

 

22


PACIFIC CAPITAL FUNDS

International Stock Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
United Kingdom, continued  
Health Care (2.1%)  
19,595  

AstraZeneca PLC

  822,828
54,228  

GlaxoSmithKline PLC

  1,285,074
   219,395  

Smith & Nephew PLC

  2,982,774
     
    5,090,676
     
Industrials (0.6%)  
281,823  

Michael Page International PLC

  1,455,463
     
Information Technology (1.6%)  
648,448  

ARM Holdings PLC

  1,517,342
119,606  

Autonomy Corp. PLC (a)

  2,185,626
     
    3,702,968
     
Materials (1.0%)  
58,971  

BHP Billiton Ltd. PLC

  1,783,043
32,544  

Eurasian Natural
Resources Corp. (a)

  498,248
     
        2,281,291
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
United Kingdom, continued  
Telecommunications (1.2%)  
78,927  

Vodafone Group PLC, ADR

  2,746,660
     
    32,424,195
     
Total Common Stocks (Cost $209,664,560)   236,094,201
     
Investment Companies (0.7%)  
1,678,274  

Victory Federal Money Market Fund, Investor Shares, 3.10% (c)

  1,678,274
     
Total Investment Companies (Cost $1,678,274)   1,678,274
     
Total Investments (Cost $211,342,834)
(d)—99.5%
  237,772,475
Other assets in excess of liabilities—0.5%   1,121,878
     
Net Assets—100.0%   238,894,353
     

 

(a) Non-income producing security.
(b) Restricted security.
(c) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(d) Cost for federal income tax purposes is $211,642,119. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 40,757,219  

Unrealized depreciation

     (14,626,863 )
        

Net unrealized appreciation

   $ 26,130,356  
        

 

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

PLC—Public Liability Co.

 

At January 31, 2008 the Fund’s open forward foreign currency contracts against the United States Dollar were as follows:

 

Currency

   Delivery date    Contract amount
in local currency
    Contract value
in USD
    Value    

Unrealized
appreciation/
depreciation

 

Short:

           

Thai Bahts

   02/01/08    (5,108,543 )   $ (154,337 )   $ (154,804 )   $ (467 )
   02/04/08    (4,594,691 )     (139,022 )     (139,231 )     (209 )
                             

Total Short Contracts

 

  $ (293,359 )   $ (294,035 )   $ (676 )
                             

Long:

           

Hong Kong Dollar

   02/01/08    708,011     $ 90,759     $ 90,802     $ 43  

Japanese Yen

   02/04/08    23,586,711       220,437       221,888       1,451  

Singapore Dollar

   02/04/08    554,812       391,540       391,734       194  
                             

Total Long Contracts

 

  $ 702,736     $ 704,424     $ 1,688  
                             

 

See accompanying notes to financial statements.

 

23


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (97.5%)  
Consumer Discretionary (13.6%)  
22,520  

ABM Industries, Inc.

  466,614
85,472  

Aeropostale, Inc. (a)

  2,407,746
59,194  

AFC Enterprises, Inc. (a)

  548,728
33,012  

Aftermarket Technology Corp. (a)

  838,835
26,700  

American Greetings Corp., Class A

  547,884
18,499  

Apogee Enterprises, Inc.

  322,808
25,600  

Bally Technologies, Inc. (a)

  1,219,584
13,710  

Barnes & Noble, Inc.

  465,455
4,900  

Blue Nile, Inc. (a)

  270,725
25,800  

Bob Evans Farms, Inc.

  767,292
21,100  

Brown Shoe Co., Inc.

  362,920
21,800  

Buckeye Technologies, Inc. (a)

  286,670
4,100  

Buffalo Wild Wings, Inc. (a)

  103,197
24,189  

Cato Corp. (The)

  395,974
4,231  

Central European Media Enterprises Ltd., Class A (a)

  401,057
25,002  

Charlotte Russe Holding, Inc. (a)

  450,786
49,200  

Chattem, Inc. (a)

  3,774,624
75,448  

Chemed Corp.

  3,865,201
18,500  

Cooper Tire & Rubber Co.

  315,795
9,000  

CPI Corp.

  182,700
17,104  

Crocs, Inc. (a)

  595,048
5,667  

Deckers Outdoor Corp. (a)

  687,067
16,958  

Dollar Thrifty Automotive Group, Inc. (a)

  413,945
11,845  

Dollar Tree Stores, Inc. (a)

  331,778
24,110  

Elizabeth Arden, Inc. (a)

  483,406
110,117  

Fossil, Inc. (a)

      3,741,776
58,300  

Fresh Del Monte Produce, Inc. (a)

  1,867,932
20,100  

FTD Group, Inc.

  255,873
61,100  

Hot Topic, Inc. (a)

  339,105
51,600  

Hubbell, Inc., Class B

  2,460,288
   130,242  

ICF International, Inc. (a)

  3,374,570
9,700  

Iconix Brand Group, Inc. (a)

  201,663
15,200  

IPC Holdings Ltd.

  391,096
28,027  

ITT Educational Services, Inc. (a)

  2,560,267
30,622  

J. Crew Group, Inc. (a)

  1,400,038
41,248  

Jack in the Box, Inc. (a)

  1,205,679
47,099  

JAKKS Pacific, Inc. (a)

  1,109,652
9,700  

Lear Corp. (a)

  284,792
16,961  

Live Nation, Inc. (a)

  184,875
21,308  

LoJack Corp. (a)

  262,941
20,691  

Maidenform Brands, Inc. (a)

  256,568
15,300  

Marvel Entertainment, Inc. (a)

  431,460
8,510  

Men’s Wearhouse, Inc. (The)

  216,920
35,849  

Movado Group, Inc.

  868,263
24,683  

Netflix, Inc. (a)

  620,777
37,100  

New York & Co., Inc. (a)

  206,276
22,577  

O’Charley’s, Inc.

  313,143
24,500  

P.F. Chang’s China Bistro, Inc. (a)

  696,780
19,300  

Pactiv Corp. (a)

  552,173
10,490  

Papa John’s International, Inc. (a)

  265,292
36,265  

Prestige Brands Holdings, Inc. (a)

  270,900
20,047  

Priceline.com, Inc. (a)

  2,175,500
23,355  

Rent-A-Center, Inc. (a)

  399,371
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Consumer Discretionary, continued  
40,107  

Sally Beauty Holdings, Inc. (a)

  327,273
8,085  

Scholastic Corp. (a)

  277,073
17,600  

Select Comfort Corp. (a)

  138,336
43,913  

Skechers USA, Inc., Class A (a)

  879,138
13,655  

Sonic Automotive, Inc.

  273,783
23,335  

Sotheby’s Holdings, Inc.

  725,018
97,352  

Source Interlink Cos., Inc. (a)

  210,280
18,483  

Steven Madden Ltd. (a)

  315,505
40,140  

Tempur-Pedic International, Inc.

  795,575
18,264  

Tenneco, Inc. (a)

  483,448
12,049  

United Stationers, Inc. (a)

  665,828
14,459  

Wolverine World Wide, Inc.

  365,957
     
      52,877,023
     
Consumer Staples (4.5%)  
11,900  

BJ’s Wholesale Club, Inc. (a)

  386,036
75,000  

Central European Distribution Corp. (a)

  3,942,750
65,236  

Comfort Systems USA, Inc.

  800,446
5,600  

Corn Products International, Inc.

  189,280
52,200  

Diamond Foods, Inc.

  990,234
44,321  

Ennis, Inc.

  701,601
15,300  

G-III Apparel Group Ltd. (a)

  204,561
47,800  

Green Mountain Coffee Roasters, Inc. (a)

  1,841,256
4,800  

IHOP Corp.

  255,552
26,475  

Longs Drug Stores Corp.

  1,218,115
49,667  

Mannatech, Inc.

  303,962
11,775  

Nash Finch Co.

  420,132
24,200  

Nu Skin Enterprises, Inc., Class A

  397,606
25,738  

Pantry, Inc. (a)

  747,946
6,449  

Performance Food Group Co. (a)

  203,982
27,880  

Premier Exhibitions, Inc. (a)

  169,510
39,485  

Ralcorp Holdings, Inc. (a)

  2,148,379
31,086  

Red Robin Gourmet Burgers, Inc. (a)

  1,084,280
12,900  

Spartan Stores, Inc.

  226,782
37,300  

Tupperware Brands Corp.

  1,380,100
     
    17,612,510
     
Energy (5.9%)  
   152,926  

Alon USA Energy, Inc.

  2,783,253
16,110  

Atmos Energy Corp.

  462,679
36,500  

Atwood Oceanics, Inc. (a)

  3,032,785
17,400  

BPZ Resources, Inc. (a)

  223,068
37,063  

Callon Petroleum Co. (a)

  571,141
18,524  

Cimarex Energy Co.

  755,965
19,376  

Cleco Corp.

  500,870
6,700  

Comstock Resources, Inc. (a)

  212,390
5,272  

CVR Energy, Inc. (a)

  139,708
34,291  

Delek US Holdings, Inc.

  563,401
15,280  

Empire District Electric Co. (The)

  338,758
15,000  

Encore Acquisition Co. (a)

  489,000
32,982  

Great Plains Energy, Inc.

  919,538
21,900  

Gulfport Energy Corp. (a)

  331,785
54,747  

Headwaters, Inc. (a)

  616,999

 

See accompanying notes to financial statements.

 

24


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Energy, continued  
9,700  

Holly Corp.

  469,674
5,197  

Lufkin Industries, Inc.

  274,765
81,600  

Mariner Energy, Inc. (a)

  2,044,896
52,332  

Parker Drilling Co. (a)

  363,707
11,800  

Petroleum Development Corp. (a)

  678,500
42,318  

Pioneer Drilling Co. (a)

  440,530
5,000  

SEACOR Holdings, Inc. (a)

  441,000
20,901  

Southwest Gas Corp.

  596,724
23,818  

St. Mary Land & Exploration Co.

  839,108
36,300  

Stone Energy Corp. (a)

  1,488,300
33,716  

Swift Energy Co. (a)

  1,454,845
23,504  

Trico Marine Services, Inc. (a)

  754,243
     77,054  

Union Drilling, Inc. (a)

  1,185,091
     
      22,972,723
     
Financials (9.6%)  
60,028  

Advanta Corp., Class B

  599,680
11,262  

Allied World Assurance Holdings Ltd.

  536,409
33,800  

American Equity Investment Life Holding Co.

  279,526
29,200  

American Physicians Capital, Inc.

  1,206,544
42,706  

Amerisafe, Inc. (a)

  587,207
14,059  

Argo Group International Holdings Ltd. (a)

  574,169
47,497  

Aspen Insurance Holdings Ltd.

  1,340,365
18,546  

ASTA Funding, Inc.

  387,055
21,722  

Boston Private Financial Holdings, Inc.

  495,913
31,880  

Calamos Asset Management, Inc.

  695,622
28,182  

Cascade Bancorp

  363,548
57,209  

CBIZ, Inc. (a)

  538,337
22,589  

Citizens Republic Bancorp, Inc.

  319,408
15,071  

CompuCredit Corp. (a)

  221,544
22,532  

Corus Bankshares, Inc.

  286,607
22,810  

CVB Financial Corp.

  254,331
29,036  

Delphi Financial Group, Inc.

  911,150
23,396  

Deluxe Corp.

  568,991
15,067  

Dollar Financial Corp. (a)

  379,387
20,154  

East West Bancorp, Inc.

  484,905
19,311  

Euronet Worldwide, Inc. (a)

  510,583
24,949  

F.N.B. Corp.

  388,456
25,746  

First Commonwealth Financial Corp.

  298,654
27,081  

First Community Bancorp

  962,188
48,347  

First Niagara Financial Group, Inc.

  614,974
13,684  

First State Bancorp

  171,871
17,730  

FirstFed Financial Corp. (a)

  743,773
6,900  

FPIC Insurance Group, Inc. (a)

  290,559
20,900  

Frontier Financial Corp.

  425,524
7,300  

Greenhill & Co., Inc.

  492,969
24,184  

Hanmi Financial Corp.

  207,982
7,300  

Hilb Rogal & Hobbs Co.

  264,114
22,566  

Investment Technology Group, Inc. (a)

  1,059,925
38,668  

Knight Capital Group, Inc. (a)

  647,689
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Financials, continued  
29,839  

National Financial Partners Corp.

  1,077,188
35,400  

National Penn Bancshares, Inc.

  612,774
10,500  

Navigators Group, Inc. (a)

  606,165
12,100  

optionsXpress Holdings, Inc.

  328,152
39,000  

Philadelphia Consolidated Holding Corp. (a)

  1,396,200
23,367  

Safety Insurance Group, Inc.

  911,780
85,319  

SeaBright Insurance Holdings, Inc. (a)

  1,253,336
44,337  

Selective Insurance Group, Inc.

  1,060,098
98,657  

Sterling Bancshares, Inc.

  989,530
10,430  

Sterling Financial Corp.

  185,550
21,000  

Strategic Hotels & Resorts, Inc.

  301,350
   101,092  

Sunstone Hotel Investors, Inc.

  1,682,171
32,983  

Susquehanna Bancshares, Inc.

  699,899
19,369  

SVB Financial Group (a)

  937,460
41,700  

Texas Capital Bancshares, Inc. (a)

  726,831
58,100  

UCBH Holdings, Inc.

  820,372
28,534  

UMB Financial Corp.

  1,202,137
10,514  

Umpqua Holdings Corp.

  172,430
54,687  

Universal American Financial Corp. (a)

  1,144,599
45,209  

Wadell & Reed Financial, Inc., Class A

  1,500,035
16,954  

Wilmington Trust Corp.

  591,186
24,145  

Zenith National Insurance Corp.

  961,454
     
      37,270,656
     
Health Care (13.4%)  
46,690  

Acadia Pharmaceuticals, Inc. (a)

  553,743
12,307  

Air Methods Corp. (a)

  564,645
10,200  

Alexion Pharmaceuticals, Inc. (a)

  666,264
58,700  

Alkermes, Inc. (a)

  781,884
26,567  

Alpharma, Inc., Class A (a)

  545,155
35,419  

American Oriental Bioengineering, Inc. (a)

  346,044
21,921  

Amerigroup Corp. (a)

  822,476
44,243  

Applera Corp.—Celera Genomics Group (a)

  677,803
93,515  

Arena Pharmaceuticals, Inc. (a)

  677,049
16,700  

ArthroCare Corp. (a)

  668,501
15,000  

Auxilium Pharmaceuticals, Inc. (a)

  513,000
75,400  

BioScrip, Inc. (a)

  585,104
84,800  

Centene Corp. (a)

  2,030,112
57,800  

Cepheid, Inc. (a)

  1,765,212
6,500  

Cerner Corp. (a)

  340,600
18,740  

CONMED Corp. (a)

  455,382
51,900  

Cubist Pharmaceuticals, Inc. (a)

  881,781
16,900  

Cutera, Inc. (a)

  211,081
122,759  

CV Therapeutics, Inc. (a)

  1,028,720
26,378  

Cynosure, Inc., Class A (a)

  654,966
83,530  

Cytokinetics, Inc. (a)

  278,155
241,700  

Encysive Pharmaceuticals, Inc. (a)

  186,109
29,796  

Gentiva Health Services, Inc. (a)

  550,630
8,864  

Haemonetics Corp. (a)

  530,422
71,238  

Healthspring, Inc. (a)

  1,473,914

 

See accompanying notes to financial statements.

 

25


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Health Care, continued  
1,700  

Hologic, Inc. (a)

  109,412
76,952  

Human Genome Sciences, Inc. (a)

  429,392
16,097  

ICU Medical, Inc. (a)

  456,994
72,755  

Incyte Pharmaceuticals, Inc. (a)

  871,605
102,233  

Invacare Corp.

  2,488,351
43,200  

King Pharmaceuticals, Inc. (a)

  453,168
42,310  

Kosan Biosciences, Inc. (a)

  114,237
55,106  

LifePoint Hospitals, Inc. (a)

  1,487,862
30,461  

Magellan Health Services, Inc. (a)

  1,332,364
48,200  

Martek Biosciences Corp. (a)

  1,373,700
5,700  

Matria Healthcare, Inc. (a)

  164,502
18,500  

MedCath Corp. (a)

  460,280
30,100  

Merit Medical Systems, Inc. (a)

  484,008
32,300  

Molina Healthcare, Inc. (a)

  1,101,753
14,543  

Noven Pharmaceuticals, Inc. (a)

  195,312
146,168  

NPS Pharmaceuticals, Inc. (a)

  577,364
22,012  

Obagi Medical Products, Inc. (a)

  327,539
35,000  

Onyx Pharmaceuticals, Inc. (a)

  1,663,550
46,700  

OSI Pharmaceuticals, Inc. (a)

  1,862,396
23,800  

Owens & Minor, Inc.

  983,416
56,000  

Pain Therapeutics, Inc. (a)

  484,960
16,600  

Pediatrix Medical Group, Inc. (a)

  1,130,294
96,073  

Perrigo Co.

  2,962,891
55,400  

Pharmanet Development Group, Inc. (a)

  2,258,104
28,195  

Phoenix Cos, Inc. (The)

  305,352
13,900  

Progenics Pharmaceuticals, Inc. (a)

  227,126
55,962  

Regeneron Pharmaceuticals, Inc. (a)

  1,134,909
   113,996  

Renovis, Inc. (a)

  298,669
60,589  

Rigel Pharmaceuticals, Inc. (a)

  1,668,015
20,200  

Salix Pharmaceuticals Ltd. (a)

  140,390
37,002  

Sciele Pharma, Inc. (a)

  885,088
68,852  

STERIS Corp.

  1,706,153
14,463  

SurModics, Inc. (a)

  631,455
29,006  

Symmetry Medical, Inc. (a)

  527,909
36,949  

TriZetto Group, Inc. (The) (a)

  721,244
35,422  

ViroPharma, Inc. (a)

  313,839
21,886  

XenoPort, Inc. (a)

  1,342,925
60,347  

Zymogenetics, Inc. (a)

  608,901
     
      52,074,181
     
Industrials (22.3%)  
10,401  

A.O. Smith Corp.

  364,035
95,214  

Actuant Corp., Class A

  2,602,199
47,055  

Acuity Brands, Inc.

  2,141,473
4,000  

Analogic Corp.

  236,240
45,906  

Applied Industrial Technologies

  1,385,902
30,646  

Arch Chemicals, Inc.

  1,031,851
13,700  

BE Aerospace, Inc. (a)

  528,957
12,870  

Briggs & Stratton Corp.

  268,340
6,700  

Bucyrus International, Inc.

  621,157
14,469  

Cabot Microelectronics Corp. (a)

  500,338
36,918  

Ceradyne, Inc. (a)

  1,777,602
13,312  

CF Industries Holdings, Inc.

  1,423,452
16,886  

Checkpoint Systems, Inc. (a)

  401,211
23,341  

Cohu, Inc.

  348,948
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Industrials, continued  
41,117  

Complete Production Services, Inc. (a)

  653,760
42,510  

COMSYS IT Partners, Inc. (a)

  456,982
30,632  

Cox Radio, Inc., Class A (a)

  365,746
22,563  

CTS Corp.

  239,168
34,000  

Curtiss-Wright Corp.

  1,417,800
14,470  

Cymer, Inc. (a)

  390,835
29,661  

Dawson Geophysical Co. (a)

  1,698,982
10,158  

Drew Industries, Inc. (a)

  275,180
10,659  

Ducommun, Inc. (a)

  336,824
42,300  

Dycom Industries, Inc. (a)

  999,126
119,200  

DynCorp International, Inc., Class A (a)

  2,451,944
40,256  

EMCOR Group, Inc. (a)

  882,814
96,453  

Encore Wire Corp.

  1,608,836
16,950  

EnerSys (a)

  390,528
24,126  

EnPro Industries, Inc. (a)

  723,780
39,300  

Esterline Technologies Corp. (a)

  1,830,987
11,231  

First Advantage Corp., Class A (a)

  182,391
63,181  

FLIR Systems, Inc. (a)

  1,913,121
15,716  

Flowers Foods, Inc.

  377,184
8,094  

Freightcar America, Inc.

  305,225
96,530  

Gardner Denver Machinery, Inc. (a)

  3,131,433
13,700  

Global Industries Ltd. (a)

  241,942
10,734  

Graco, Inc.

  367,317
   259,000  

GrafTech International Ltd. (a)

      3,897,950
26,562  

Greatbatch, Inc. (a)

  599,770
41,886  

H.B. Fuller Co.

  869,553
11,249  

Heidrick & Struggles International, Inc.

  309,123
23,325  

Horace Mann Educators Corp.

  428,480
32,363  

Hub Group, Inc. (a)

  942,734
113,256  

Intevac, Inc. (a)

  1,233,358
39,900  

ION Geophysical Corp. (a)

  494,760
48,200  

Kaydon Corp.

  2,105,858
41,786  

Knight Transportation, Inc.

  717,048
8,900  

Koppers Holdings, Inc.

  297,794
5,600  

Layne Christensen Co. (a)

  206,640
13,505  

Lennox International, Inc.

  501,846
39,500  

Matthews International Corp., Class A

  1,930,365
7,744  

Middleby Corp. (The) (a)

  461,620
47,374  

MKS Instruments, Inc. (a)

  881,156
14,526  

Monarch Casino & Resort, Inc. (a)

  310,421
34,613  

MPS Group, Inc. (a)

  347,861
23,326  

Mueller Industries, Inc.

  653,128
53,282  

Oil States International, Inc. (a)

  1,868,067
114,900  

Olin Corp.

  2,354,301
115,657  

ON Semiconductor Corp. (a)

  749,457
59,788  

Perini Corp. (a)

  2,089,591
23,399  

Pilgrim’s Pride Corp.

  571,638
20,140  

ProAssurance Corp. (a)

  1,162,078
257,800  

QLogic Corp. (a)

  3,686,540
24,800  

Regal-Beloit Corp.

  940,416
19,470  

Resources Connection, Inc.

  407,507
34,095  

Robbins & Myers, Inc.

  2,259,817

 

See accompanying notes to financial statements.

 

26


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Industrials, continued  
17,800  

Rock-Tenn Co.

  508,902
5,600  

Schnitzer Steel Industries, Inc.

  317,296
152,200  

Silicon Motion Technology Corp., ADR (a)

  2,343,880
43,876  

SkyWest, Inc.

  1,141,654
8,861  

Speedway Motorsports, Inc.

  268,931
49,102  

Spherion Corp. (a)

  328,001
31,030  

Steelcase, Inc.

  475,690
33,984  

Sun Hydraulic Corp.

  781,632
49,619  

Technitrol, Inc.

  1,124,367
66,840  

Teledyne Technologies, Inc. (a)

  3,450,949
24,124  

TreeHouse Foods, Inc. (a)

  503,468
46,871  

Triumph Group, Inc.

  2,531,034
54,241  

Ultra Clean Holdings, Inc. (a)

  531,019
45,876  

Varian Semiconductor Equipment Associates, Inc. (a)

  1,477,666
15,383  

W.R. Grace & Co. (a)

  347,963
44,022  

Watson Wyatt & Co. Holdings

  2,163,681
10,350  

Zep, Inc.

  170,982
     
    86,619,602
     
Information Technology (16.1%)  
89,182  

Advanced Energy Industries, Inc. (a)

  964,057
12,124  

American Reprographics Co. (a)

  190,711
89,000  

Amkor Technology, Inc. (a)

  679,960
96,248  

ANSYS, Inc. (a)

  3,360,018
   102,448  

Arris Group, Inc. (a)

  900,518
10,474  

Avid Technology, Inc. (a)

  271,486
23,614  

Avocent Corp. (a)

  391,992
17,896  

Benchmark Electronics, Inc. (a)

  317,654
17,324  

Blue Coat Systems, Inc. (a)

  465,496
105,500  

BluePhoenix Solutions Ltd. (a)

      1,573,005
115,792  

Brocade Communications Systems, Inc. (a)

  797,807
28,668  

Chordiant Software, Inc. (a)

  249,985
6,800  

Comtech Telecommunications Corp. (a)

  304,640
39,297  

CSG Systems International, Inc. (a)

  501,430
4,723  

Cubic Corp.

  126,860
27,000  

CyberSource Corp. (a)

  452,250
7,873  

DealerTrack Holdings, Inc. (a)

  212,256
41,000  

DRS Technologies, Inc.

  2,200,470
18,554  

Eagle Test Systems, Inc. (a)

  220,607
206,300  

EarthLink, Inc. (a)

  1,404,903
137,000  

EMCORE Corp. (a)

  1,872,790
15,292  

EMS Technologies, Inc. (a)

  420,224
199,396  

Emulex Corp. (a)

  3,110,578
22,521  

Exar Corp. (a)

  184,897
19,224  

FactSet Research Systems, Inc.

  1,075,198
17,184  

Fairchild Semiconductor International, Inc. (a)

  210,504
45,300  

FARO Technologies, Inc. (a)

  1,081,764
11,300  

Global Sources Ltd. (a)

  149,725
39,700  

Hutchinson Technology, Inc. (a)

  626,069
26,594  

Imation Corp.

  689,051
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Information Technology, continued  
20,594  

Immersion Corp. (a)

  201,821
204,919  

Interwoven, Inc. (a)

  2,596,324
41,906  

Ixia (a)

  310,104
38,669  

J2 Global Communications, Inc. (a)

  847,238
12,703  

JDA Software Group, Inc. (a)

  225,986
71,496  

Magma Design Automation, Inc. (a)

  815,054
59,900  

Mantech International Corp. (a)

  2,449,910
32,800  

Measurement Specialties, Inc. (a)

  646,160
41,689  

Mentor Graphics Corp. (a)

  343,934
26,585  

Methode Electronics, Inc.

  322,210
30,564  

Micrel, Inc.

  186,440
7,300  

MicroStrategy, Inc., Class A (a)

  532,316
10,425  

MTS Systems Corp.

  350,384
31,069  

Net 1 UEPS Technologies, Inc. (a)

  891,059
18,300  

NETGEAR, Inc. (a)

  487,878
12,300  

Novatel Wireless, Inc. (a)

  196,800
17,228  

Nuance Communications, Inc. (a)

  273,753
8,778  

Omniture, Inc. (a)

  216,992
   199,700  

OmniVision Technologies, Inc. (a)

  2,827,752
61,921  

Orbitz Worldwide, Inc. (a)

  388,864
15,300  

OSI Systems, Inc. (a)

  356,949
56,351  

Perot Systems Corp., Class A (a)

  684,101
45,018  

Plexus Corp. (a)

  1,016,957
105,300  

Progress Software Corp. (a)

  3,108,456
23,348  

Rofin-Sinar Technologies, Inc. (a)

  992,524
28,200  

Rudolph Technologies, Inc. (a)

  289,050
41,100  

SAIC, Inc. (a)

  776,790
29,400  

Shutterfly, Inc. (a)

  571,830
63,600  

Sigma Designs, Inc. (a)

  2,875,992
140,743  

Skyworks Solutions, Inc. (a)

  1,132,981
79,412  

Smart Modular Technologies (WWH), Inc. (a)

  655,149
82,176  

Sohu.com, Inc. (a)

  3,823,649
49,947  

Sonicwall, Inc. (a)

  438,535
16,721  

SPSS, Inc. (a)

  552,629
17,300  

SRA International, Inc., Class A (a)

  474,539
24,188  

Sybase, Inc. (a)

  682,585
8,900  

Synaptics, Inc. (a)

  235,850
6,200  

Synchronoss Technologies, Inc. (a)

  132,060
14,700  

Taleo Corp., Class A (a)

  310,611
88,567  

TIBCO Software, Inc. (a)

  658,938
16,200  

Travelzoo, Inc. (a)

  256,608
53,497  

United Online, Inc.

  597,562
10,377  

VASCO Data Security International, Inc. (a)

  196,852
23,328  

Vignette Corp. (a)

  328,225
55,732  

Vishay Intertechnology, Inc. (a)

  584,629
19,299  

Websense, Inc. (a)

  395,630
7,200  

Wright Express Corp. (a)

  215,568
     
      62,463,133
     
Materials (3.4%)  
42,671  

A. Schulman, Inc.

  870,062
30,783  

Belden CDT, Inc.

  1,302,121
17,400  

Brush Engineered Materials, Inc. (a)

  497,988
16,482  

Carpenter Technology Corp.

  1,015,950

 

See accompanying notes to financial statements.

 

27


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

    
Security
Description

  Value ($)
Common Stocks, continued  
Materials, continued  
8,512  

Century Aluminum Co. (a)

  442,539
13,651  

Cleveland Cliffs, Inc.

  1,390,218
30,300  

Columbus McKinnon Corp. (a)

  774,771
100,119  

Entegris, Inc. (a)

  770,916
19,285  

Greif, Inc., Class A

  1,268,953
9,700  

Olympic Steel, Inc.

  327,763
16,072  

OM Group, Inc. (a)

  922,211
21,700  

Park Electrochemical Corp.

  513,856
53,970  

PolyOne Corp. (a)

  332,455
8,103  

Silgan Holdings, Inc.

  383,758
42,856  

Terra Industries, Inc. (a)

  1,931,520
7,300  

Universal Stainless & Alloy Products, Inc. (a)

  180,602
17,711  

USEC, Inc. (a)

  142,928
     
    13,068,611
     
Real Estate Investment Trusts (2.7%)  
1,773  

Alexander’s, Inc. (a)

  620,727
61,236  

Ashford Hospitality Trust

  382,725
47,631  

BioMed Realty Trust, Inc.

  1,099,323
     47,000  

Brandywine Realty Trust

  885,950
83,300  

Capstead Mortgage Corp.

  1,245,335
18,400  

CBL & Associates Properties, Inc.

  489,072
41,913  

Cedar Shopping Centers, Inc.

  466,492
17,689  

Entertainment Properties Trust

  875,605
38,619  

FelCor Lodging Trust, Inc.

  521,743
15,278  

First Industrial Realty Trust, Inc.

  532,133
44,320  

Medical Properties Trust, Inc.

  560,205
29,836  

National Retail Properties, Inc.

  677,874
26,537  

Omega Healthcare Investors, Inc.

  437,861
21,791  

Pennsylvania Real Estate Investment Trust

  580,730
19,317  

Realty Income Corp.

  470,948
4,900  

Taubman Centers, Inc.

  245,735
53,400  

U-Store-It Trust

  508,368
     
      10,600,826
     
Telecommunications (2.6%)  
14,500  

ADC Telecommunications, Inc. (a)

  214,455
23,464  

Atlantic Tele-Network, Inc.

  738,881
93,402  

Cincinnati Bell, Inc. (a)

  362,400
34,991  

CommScope, Inc. (a)

  1,551,851
20,116  

Consolidated Communications Holdings, Inc.

  314,614
24,200  

DSP Group, Inc. (a)

  277,090
Shares or
Principal
Amount ($)
 

    
Security
Description

  Value ($)
Common Stocks, continued  
Telecommunications, continued  
13,894  

Golden Telecom, Inc. (a)

  1,427,053
13,300  

NeuStar, Inc., Class A (a)

  395,143
11,759  

NTELOS Holdings Corp.

  250,232
21,700  

Oplink Communications, Inc. (a)

  277,109
301,500  

Premiere Global Services, Inc. (a)

  3,675,285
15,300  

RCN Corp.

  178,245
60,405  

RF Micro Devices, Inc. (a)

  195,108
25,400  

Virgin Mobile USA, Inc., Class A (a)

  203,962
     
    10,061,428
     
Transportation (1.6%)  
4,000  

Bristow Group, Inc. (a)

  201,400
24,700  

GulfMark Offshore, Inc. (a)

  1,032,954
26,862  

Landstar System, Inc.

  1,343,906
194,600  

Navios Maritime Holdings, Inc.

  2,245,684
22,586  

Pacer International, Inc.

  386,898
20,934  

Saia, Inc. (a)

  295,379
34,629  

Werner Enterprises, Inc.

  705,393
     
    6,211,614
     
Utilities (1.8%)  
14,529  

El Paso Electric Co. (a)

  340,415
8,046  

IDACORP, Inc.

  262,621
12,055  

New Jersey Resources Corp.

  565,259
61,283  

Northwest Natural Gas Co.

  2,901,137
35,453  

PNM Resources, Inc.

  684,952
64,209  

Westar Energy, Inc.

  1,564,131
13,658  

WGL Holdings, Inc.

  440,334
     
    6,758,849
     
Total Common Stocks (Cost $417,033,043)   378,591,156
     
Mutual Funds (1.3%)  
68,800  

iShares Russell 2000 Index Fund

  4,876,544
     
Total Mutual Funds (Cost $4,739,983)   4,876,544
     
Cash Sweep (1.0%)  
3,823,515  

Bank of New York Cash Reserve Fund, 0.15% (b)

  3,823,515
     
Total Cash Sweep (Cost $3,823,515)   3,823,515
     
Total Investments (Cost $425,596,541)
(c)—99.8%
  387,291,215
Other assets in excess of liabilities—0.2%   871,385
     
Net Assets—100.0%   388,162,600
     

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $430,743,547. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation.

   $ 14,252,342  

Unrealized depreciation

     (57,704,674 )
        

Net unrealized depreciation

   $ (43,452,332 )
        

 

See accompanying notes to financial statements.

 

28


PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

ADR—American Depositary Receipt

 

Open Futures Contracts at January 31, 2008:

 

Description

   Type    Expiration
month
   Contracts    Unrealized
appreciation/
depreciation
 

Russell 2000 Index

   Long    03/2008    10    $ (80,823 )

 

See accompanying notes to financial statements.

 

29


PACIFIC CAPITAL FUNDS

Mid-Cap Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (98.8%)  
Consumer Discretionary (15.8%)  
5,800  

Advance Auto Parts, Inc.

  206,944
17,650  

Aeropostale, Inc. (a)

  497,200
10,900  

American Greetings Corp., Class A

  223,668
12,600  

AutoNation, Inc. (a)

  205,128
15,600  

Barnes & Noble, Inc.

  529,620
11,900  

Big Lots, Inc. (a)

  206,584
1,100  

Black & Decker Corp. (The)

  79,794
15,600  

Blyth, Inc.

  339,924
8,700  

Bob Evans Farms, Inc.

  258,738
3,400  

BorgWarner, Inc.

  172,074
5,500  

Burger King Holdings, Inc.

  144,925
18,800  

DeVry, Inc.

  1,037,572
5,000  

Dollar Tree Stores, Inc. (a)

  140,050
4,000  

Fossil, Inc. (a)

  135,920
6,900  

Hanesbrands, Inc. (a)

  176,709
10,200  

Hewitt Associates, Inc., Class A (a)

  379,134
3,000  

HNI Corp.

  100,980
12,000  

ITT Educational Services, Inc. (a)

  1,096,200
28,300  

Lear Corp. (a)

  830,888
11,900  

Manpower, Inc.

  669,494
4,600  

Owens-Illinois, Inc. (a)

  231,840
5,500  

Priceline.com, Inc. (a)

  596,860
12,800  

RadioShack Corp.

  222,080
7,700  

Rollins, Inc.

  136,983
10,900  

Sherwin-Williams Co. (The)

  623,589
17,900  

Tech Data Corp. (a)

  615,402
4,000  

Tempur-Pedic International, Inc.

  79,280
7,700  

Warnaco Group, Inc. (The) (a)

  276,353
     
    10,213,933
     
Consumer Staples (4.2%)  
  20,200  

BJ’s Wholesale Club, Inc. (a)

  655,288
5,300  

Chipotle Mexican Grill, Inc.,
Class A (a)

  645,222
4,300  

GameStop Corp., Class A (a)

  222,439
2,300  

Hansen Natural Corp. (a)

  88,688
14,700  

Tupperware Brands Corp.

  543,900
29,700  

Tyson Foods, Inc., Class A

  423,225
2,300  

Universal Corp.

  114,563
     
    2,693,325
     
Energy (6.3%)  
6,200  

Cimarex Energy Co.

  253,022
33,400  

CMS Energy Corp.

  523,378
8,600  

Denbury Resources, Inc. (a)

  217,580
9,900  

Energy East Corp.

  249,975
8,000  

ENSCO International, Inc.

  408,960
12,900  

Frontier Oil Corp.

  454,983
7,200  

Holly Corp.

  348,624
14,900  

Noble Energy, Inc.

  1,081,442
14,800  

Reliant Energy, Inc. (a)

  314,796
4,500  

Tidewater, Inc.

  238,320
     
    4,091,080
     
Entertainment (0.7%)  
25,600  

Regal Entertainment Group

  474,624
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Financials (10.8%)  
13,050  

American Financial Group, Inc.

  361,877
16,500  

Associated Banc-Corp.

  464,970
28,000  

Axis Capital Holdings Ltd.

  1,121,120
5,900  

Broadridge Financial Solutions, Inc.

  127,794
8,100  

City National Corp.

  460,728
14,400  

Deluxe Corp.

  350,208
9,700  

Eaton Vance Corp.

  361,519
1,800  

Everest Re Group Ltd.

  183,042
24,700  

Hospitality Properties Trust

  838,565
8,000  

Interactive Data Corp.

  231,600
8,600  

KKR Financial Holdings LLC

  139,664
12,700  

PartnerRe Ltd.

  1,006,856
2,100  

SVB Financial Group (a)

  101,640
10,300  

Wadell & Reed Financial, Inc., Class A

  341,754
14,400  

Webster Financial Corp.

  487,728
13,000  

Wilmington Trust Corp.

  453,310
     
    7,032,375
     
Health Care (13.0%)  
27,100  

Apria Healthcare Group, Inc. (a)

  575,062
3,600  

Charles River Laboratories International, Inc. (a)

  223,560
9,225  

Coventry Health Care, Inc. (a)

  521,951
16,600  

DENTSPLY International, Inc.

  685,746
17,100  

Health Net, Inc. (a)

  794,979
15,200  

Herbalife Ltd.

  603,136
7,900  

HLTH Corp. (a)

  88,401
4,000  

Intuitive Surgical, Inc. (a)

  1,016,000
13,000  

Invitrogen Corp. (a)

    1,113,710
17,300  

Kindred Healthcard, Inc. (a)

  476,442
9,200  

Kinetic Concepts, Inc. (a)

  457,976
  15,600  

King Pharmaceuticals, Inc. (a)

  163,644
5,600  

Lincare Holdings, Inc. (a)

  187,096
14,300  

Millennium Pharmaceuticals (a)

  216,931
7,800  

NBTY, Inc. (a)

  188,916
4,900  

Par Pharmaceutical Cos., Inc. (a)

  93,982
10,500  

Perrigo Co.

  323,820
12,700  

STERIS Corp.

  314,706
6,300  

Techne Corp. (a)

  409,500
     
    8,455,558
     
Industrials (15.5%)  
23,400  

Agco Corp. (a)

  1,409,148
7,000  

AGL Resources, Inc.

  264,950
3,600  

Alliant Techsystems, Inc. (a)

  381,060
1,800  

Brink’s Co. (The)

  109,134
4,700  

CF Industries Holdings, Inc.

  502,571
22,200  

Cummins, Inc.

  1,071,816
8,700  

Dresser-Rand Group, Inc. (a)

  275,790
11,200  

Global Industries Ltd. (a)

  197,792
11,100  

Jacobs Engineering Group, Inc. (a)

  848,484
9,400  

Kennametal, Inc.

  287,922
12,200  

Lennox International, Inc.

  453,352
21,500  

Manitowoc Company, Inc. (The)

  819,580
2,200  

Mettler-Toledo International, Inc. (a)

  218,460
30,600  

Olin Corp.

  626,994
10,650  

Republic Services, Inc.

  319,500

 

See accompanying notes to financial statements.

 

30


PACIFIC CAPITAL FUNDS

Mid-Cap Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Industrials, continued  
45,200  

Semtech Corp. (a)

  577,204
3,500  

SPX Corp.

  352,100
4,400  

Teleflex, Inc.

  260,128
26,300  

Triquint Semiconductor (a)

  124,662
13,800  

URS Corp. (a)

  605,820
20,800  

Worthington Industries, Inc.

  340,912
     
    10,047,379
     
Information Technology (8.6%)  
15,900  

Avnet, Inc. (a)

  566,199
12,400  

BMC Software, Inc. (a)

  397,296
12,200  

Compuware Corp. (a)

  103,700
8,000  

Dun & Bradstreet Corp. (The)

  735,840
30,400  

Foundry Networks, Inc. (a)

  419,520
  29,200  

Ingram Micro, Inc. (a)

  519,176
23,300  

Intersil Corp., Class A

  536,599
8,500  

Lexmark International, Inc., Class A (a)

  307,785
22,600  

McAfee, Inc. (a)

  760,716
30,200  

Novell, Inc. (a)

  192,072
20,100  

Synopsys, Inc. (a)

  442,602
23,000  

Western Digital Corp. (a)

  608,350
     
    5,589,855
     
Materials (5.4%)  
10,900  

AK Steel Holding Corp. (a)

  520,802
16,000  

Celanese Corp., Series A

  594,880
5,300  

Cleveland Cliffs, Inc.

  539,752
8,400  

Lubrizol Corp. (The)

  441,924
18,800  

Packaging Corp. of America

  455,712
6,900  

Sensient Technologies Corp.

  183,264
10,700  

Terra Industries, Inc. (a)

  482,249
4,600  

Waters Corp. (a)

  264,270
     
    3,482,853
     
Oil & Gas Services (1.9%)  
11,400  

Cameron International Corp. (a)

  458,964
15,800  

FMC Technologies, Inc. (a)

  760,928
     
    1,219,892
     
Real Estate Investment Trusts (5.6%)  
20,900  

AMB Property Corp.

  1,057,540
37,000  

Annaly Capital Management, Inc.

  729,640
23,800  

Douglas Emmett, Inc.

  543,830
9,500  

First Industrial Realty Trust, Inc.

  330,885
16,200  

HRPT Properties Trust

  128,790
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Real Estate Investment Trusts, continued  
6,200  

Mack-Cali Realty Corp.

  220,224
14,400  

Potlatch Corp.

  618,192
     
    3,629,101
     
Telecommunications (2.8%)  
31,900  

ADC Telecommunications, Inc. (a)

  471,801
6,700  

CenturyTel, Inc.

  247,297
5,700  

Ciena Corp. (a)

  154,641
1,900  

Harris Corp.

  103,911
15,000  

Plantronics, Inc.

  286,500
33,100  

RF Micro Devices, Inc. (a)

  106,913
8,300  

Telephone & Data Systems, Inc.

  437,742
     
    1,808,805
     
Transportation (2.0%)  
21,700  

ArvinMeritor, Inc.

  294,686
13,900  

Continental Airlines, Inc., Class B (a)

  378,219
5,400  

Frontline Ltd.

  229,878
10,300  

Kansas City Southern (a)

  369,564
     
    1,272,347
     
Utilities (6.2%)  
18,500  

Alliant Energy Corp.

  682,650
4,700  

Energen Corp.

  295,630
10,400  

Forest Oil Corp. (a)

  470,288
16,350  

MDU Resources Group, Inc.

  423,792
3,900  

Nicor, Inc.

  159,900
  28,900  

Northeast Utilities

  801,108
8,300  

NSTAR

  269,169
6,900  

OGE Energy Corp.

  225,837
4,500  

ONEOK, Inc.

  211,500
15,100  

WGL Holdings, Inc.

  486,824
     
    4,026,698
     
Total Common Stocks (Cost $66,952,661)   64,037,825
     
Investment Companies (0.4%)  
228,163  

Victory Federal Money Market Fund, Investor Shares, 3.10% (b)

  228,163
     
Total Investment Companies (Cost $228,163)   228,163
     
Total Investments (Cost $67,180,824)
(c)—99.2%
  64,265,988
Other assets in excess of liabilities—0.8%   545,411
     
Net Assets—100.0%   64,811,399
     

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $67,284,299. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 3,878,084  

Unrealized depreciation

     (6,896,395 )
        

Net unrealized depreciation

   $ (3,018,311 )
        

 

LLC—Limited Liability Co.

 

See accompanying notes to financial statements.

 

31


PACIFIC CAPITAL FUNDS

Growth Stock Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (98.2%)  
Consumer Discretionary (11.7%)  
7,800  

Bunge Ltd.

  924,066
67,940  

CBS Corp., Class B

  1,711,409
36,440  

Colgate-Palmolive Co.

  2,805,880
70,265  

Expedia, Inc. (a)

  1,617,500
5,500  

Kimberly-Clark Corp.

  361,075
5,320  

Manpower, Inc.

  299,303
53,790  

McDonald’s Corp.

  2,880,454
26,170  

NIKE, Inc., Class B

  1,616,259
19,540  

Omnicom Group, Inc.

  886,530
87,710  

TJX Companies, Inc. (The)

  2,768,128
35,700  

Wal-Mart Stores, Inc.

  1,816,416
     
      17,687,020
     
Consumer Staples (9.0%)  
3,900  

Coca-Cola Co. (The)

  230,763
9,700  

Coca-Cola Enterprises, Inc.

  223,779
9,560  

ConAgra Foods, Inc.

  205,827
25,600  

Costco Wholesale Corp.

  1,739,264
45,000  

Eastman Kodak Co.

  896,850
25,540  

International Paper Co.

  823,665
82,770  

Kroger Co. (The)

  2,106,496
63,504  

PepsiCo, Inc.

  4,330,338
30,357  

Procter & Gamble Co. (The)

  2,002,044
22,300  

Sara Lee Corp.

  313,538
22,900  

Sysco Corp.

  665,245
     
    13,537,809
     
Education (0.7%)  
12,900  

Apollo Group, Inc., Class A (a)

  1,028,646
     
Energy (16.4%)  
48,260  

Chevron Corp.

  4,077,970
12,120  

Constellation Energy Group

  1,138,795
13,390  

Devon Energy Corp.

  1,137,882
  117,540  

Exxon Mobil Corp.

  10,155,456
42,690  

Marathon Oil Corp.

  2,000,027
40,600  

McDermott International, Inc. (a)

  1,915,508
21,800  

Murphy Oil Corp.

  1,603,172
17,000  

Noble Energy, Inc.

  1,233,860
6,610  

Tesoro Corp.

  258,121
21,070  

Valero Energy Corp.

  1,247,133
     
    24,767,924
     
Financials (8.8%)  
14,100  

American Express Co.

  695,412
13,300  

Axis Capital Holdings Ltd.

  532,532
26,400  

Charles Schwab Corp. (The)

  588,720
18,550  

Chubb Corp. (The)

  960,704
12,360  

CIGNA Corp.

  607,618
12,945  

Discover Financial Services

  226,538
4,900  

Franklin Resources, Inc.

  510,727
6,400  

Freddie Mac

  194,496
11,200  

Goldman Sachs Group, Inc. (The)

  2,248,624
26,040  

JPMorgan Chase & Co.

  1,238,202
8,150  

Loews Corp.

  380,523
6,030  

MasterCard, Inc., Class A

  1,248,210
33,090  

Morgan Stanley

  1,635,639
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Financials, continued  
43,640  

Travelers Cos., Inc. (The)

  2,099,084
3,330  

XL Capital Ltd., Class A

  149,850
     
      13,316,879
     
Health Care (14.9%)  
35,570  

AmerisourceBergen Corp.

  1,659,340
7,840  

Amgen, Inc. (a)

  365,266
51,360  

Baxter International, Inc.

  3,119,606
37,820  

Biogen Idec, Inc. (a)

  2,305,129
7,700  

Genzyme Corp. (a)

  601,601
25,100  

Humana, Inc. (a)

  2,015,530
3,800  

Intuitive Surgical, Inc. (a)

  965,200
91,560  

Johnson & Johnson

  5,792,086
7,720  

McKesson Corp.

  484,739
38,740  

Medco Health Solutions, Inc. (a)

  1,940,099
  104,020  

Pfizer, Inc.

  2,433,028
18,270  

UnitedHealth Group, Inc.

  928,847
     
    22,610,471
     
Industrials (9.3%)  
33,100  

Boeing Co. (The)

  2,753,258
4,700  

Cooper Industries Ltd., Class A

  209,338
39,460  

Cummins, Inc.

  1,905,129
9,150  

Fluor Corp.

  1,113,281
35,890  

Honeywell International, Inc.

  2,120,022
16,950  

Lockheed Martin Corp.

  1,829,244
33,780  

National-Oilwell Varco, Inc. (a)

  2,034,569
3,300  

Parker Hannifin Corp.

  223,113
9,500  

Raytheon Co.

  618,830
5,480  

Republic Services, Inc.

  164,400
18,800  

Rockwell Automation, Inc.

  1,071,976
     
    14,043,160
     
Information Technology (21.7%)  
63,270  

Accenture Ltd., Class A

  2,190,407
17,500  

Amazon.com, Inc. (a)

  1,359,750
28,660  

Apple Computer, Inc. (a)

  3,879,418
5,100  

Automatic Data Processing, Inc.

  206,907
6,000  

Avnet, Inc. (a)

  213,660
32,290  

BMC Software, Inc. (a)

  1,034,572
53,800  

CA, Inc.

  1,185,214
164,690  

Cisco Systems, Inc. (a)

  4,034,905
22,440  

Computer Sciences Corp. (a)

  949,661
99,800  

Compuware Corp. (a)

  848,300
12,800  

eBay, Inc. (a)

  344,192
54,650  

Hewlett-Packard Co.

  2,390,937
88,600  

Intel Corp.

  1,878,320
11,980  

International Business Machines Corp.

  1,285,933
47,900  

Juniper Networks, Inc. (a)

  1,300,485
13,800  

MEMC Electronic Materials, Inc. (a)

  986,148
205,630  

Microsoft Corp.

  6,703,538
29,570  

Novell, Inc. (a)

  188,065
30,550  

NVIDIA Corp. (a)

  751,225
36,590  

Texas Instruments, Inc.

  1,131,729
     
    32,863,366
     

 

See accompanying notes to financial statements.

 

32


PACIFIC CAPITAL FUNDS

Growth Stock Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Materials (2.2%)  
25,900  

Celanese Corp., Series A

  962,962
6,920  

Eastman Chemical Co.

  457,204
11,400  

Southern Copper Corp.

  1,069,776
8,080  

United States Steel Corp.

  825,049
     
        3,314,991
     
Oil & Gas Services (2.0%)  
7,800  

FMC Technologies, Inc. (a)

  375,648
  20,500  

Occidental Petroleum Corp.

  1,391,335
10,400  

Transocean, Inc. (a)

  1,275,040
     
    3,042,023
     
Telecommunications (0.5%)  
12,600  

Ciena Corp. (a)

  341,838
9,900  

Verizon Communications, Inc.

  384,516
     
    726,354
     
Shares  

Security
Description

  Value ($)  
Common Stocks, continued  
Transportation (1.0%)  
54,310  

AMR Corp. (a)

  757,081  
4,200  

Union Pacific Corp.

  525,126  
3,100  

United Parcel Service, Inc., Class B

  226,796  
       
    1,509,003  
       
Total Common Stocks (Cost $150,685,507)   148,447,646  
       
Investment Companies (1.9%)  
2,857,338  

Victory Federal Money Market Fund, Investor Shares, 3.10% (b)

  2,857,338  
     
Total Investment Companies (Cost $2,857,338)   2,857,338  
     
Total Investments (Cost $153,542,845)
(c)—100.1%
  151,304,984  
Liabilities in excess of other assets—(0.1)%   (88,722 )
     
Net Assets—100.0%   151,216,262  
     

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $153,876,026. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 10,159,999  

Unrealized depreciation

     (12,731,041 )
        

Net unrealized depreciation

   $ (2,571,042 )
        

 

See accompanying notes to financial statements.

 

33


PACIFIC CAPITAL FUNDS

Growth and Income Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (98.2%)  
Consumer Discretionary (11.9%)  
9,000  

Bunge Ltd.

  1,066,230
35,830  

CBS Corp., Class B

  902,558
36,960  

Colgate-Palmolive Co.

  2,845,920
  10,400  

Kimberly-Clark Corp.

  682,760
9,010  

Manpower, Inc.

  506,903
42,885  

McDonald’s Corp.

  2,296,492
16,500  

NIKE, Inc., Class B

  1,019,040
42,560  

Omnicom Group, Inc.

  1,930,947
50,210  

RadioShack Corp.

  871,143
12,460  

Sherwin-Williams Co. (The)

  712,836
79,700  

TJX Companies, Inc. (The)

  2,515,332
40,630  

Walt Disney Co. (The)

  1,216,056
     
      16,566,217
     
Consumer Staples (8.0%)  
25,320  

Altria Group, Inc.

  1,919,762
30,400  

Costco Wholesale Corp.

  2,065,376
26,600  

International Paper Co.

  857,850
14,921  

Kraft Foods, Inc.

  436,588
80,150  

Kroger Co. (The)

  2,039,818
44,395  

PepsiCo, Inc.

  3,027,295
54,400  

Sara Lee Corp.

  764,864
     
    11,111,553
     
Energy (13.8%)  
32,620  

ConocoPhillips

  2,620,039
31,080  

Constellation Energy Group

  2,920,277
17,430  

Devon Energy Corp.

  1,481,201
29,380  

ENSCO International, Inc.

  1,501,906
58,740  

Exxon Mobil Corp.

  5,075,136
38,180  

Marathon Oil Corp.

  1,788,733
33,600  

McDermott International, Inc. (a)

  1,585,248
44,260  

NiSource, Inc.

  840,497
23,010  

Valero Energy Corp.

  1,361,962
     
    19,174,999
     
Financials (17.8%)  
22,210  

Allstate Corp. (The)

  1,094,287
37,720  

Bank of America Corp.

  1,672,882
15,240  

Bear Stearns Cos., Inc. (The)

  1,376,172
55,350  

Citigroup, Inc.

  1,561,977
24,100  

Freddie Mac

  732,399
10,400  

Goldman Sachs Group, Inc. (The)

  2,088,008
35,600  

Janus Capital Group, Inc.

  961,556
105,875  

JPMorgan Chase & Co.

  5,034,356
6,300  

MasterCard, Inc., Class A

  1,304,100
6,900  

Morgan Stanley

  341,067
13,890  

Prudential Financial, Inc.

  1,171,899
31,300  

State Street Corp.

  2,570,356
63,460  

Travelers Cos., Inc. (The)

  3,052,426
32,500  

Wells Fargo & Co.

  1,105,325
15,740  

XL Capital Ltd., Class A

  708,300
     
    24,775,110
     
Health Care (12.2%)  
50,330  

Aetna, Inc.

  2,680,576
60,510  

Baxter International, Inc.

  3,675,377
17,430  

Biogen Idec, Inc. (a)

  1,062,358
39,126  

Johnson & Johnson

  2,475,111
Shares  

Security
Description

  Value ($)  
Common Stocks, continued  
Health Care, continued  
49,710  

McKesson Corp.

  3,121,291  
30,110  

Merck & Co., Inc.

  1,393,491  
  111,438  

Pfizer, Inc.

  2,606,535  
       
    17,014,739  
       
Industrials (9.0%)  
22,740  

Cummins, Inc.

  1,097,887  
51,950  

Emerson Electric Co.

  2,641,138  
40,130  

Honeywell International, Inc.

  2,370,479  
21,960  

Lockheed Martin Corp.

  2,369,923  
23,960  

Northrop Grumman Corp.

  1,901,466  
11,370  

Terex Corp. (a)

  668,101  
18,390  

W.W. Grainger, Inc.

  1,463,293  
       
    12,512,287  
       
Information Technology (15.5%)  
82,200  

Accenture Ltd., Class A

  2,845,764  
13,600  

Apple Computer, Inc. (a)

  1,840,896  
19,650  

Avnet, Inc. (a)

  699,736  
21,530  

BMC Software, Inc. (a)

  689,821  
82,860  

Cisco Systems, Inc. (a)

  2,030,070  
16,480  

Computer Sciences Corp. (a)

  697,434  
85,820  

Hewlett-Packard Co.

  3,754,625  
61,400  

Juniper Networks, Inc. (a)

  1,667,010  
8,600  

MEMC Electronic Materials, Inc. (a)

  614,556  
137,890  

Microsoft Corp.

  4,495,214  
29,000  

NVIDIA Corp. (a)

  713,110  
50,770  

Texas Instruments, Inc.

  1,570,316  
       
      21,618,552  
       
Materials (3.2%)  
31,400  

Mosaic Co. (The) (a)

  2,857,714  
16,400  

Southern Copper Corp.

  1,538,976  
       
    4,396,690  
       
Real Estate Investment Trusts (0.8%)  
12,260  

Simon Property Group, Inc.

  1,070,666  
       
Telecommunications (3.4%)  
121,546  

AT&T, Inc.

  4,678,306  
       
Transportation (1.6%)  
40,150  

AMR Corp. (a)

  559,691  
13,870  

Union Pacific Corp.

  1,734,166  
       
    2,293,857  
       
Utilities (1.0%)  
34,780  

PG&E Corp.

  1,427,371  
       
Total Common Stocks (Cost $139,674,396)   136,640,347  
       
Investment Companies (1.8%)  
2,475,530  

Victory Federal Money Market Fund, Investor Shares, 3.10% (b)

  2,475,530  
3,820  

Victory Institutional Money Market Fund, Investor Shares, 3.57% (b)

  3,820  
       
Total Investment Companies (Cost $2,479,350)   2,479,350  
       
Total Investments (Cost $142,153,746)
(c)—100.0%
  139,119,697  
Liabilities in excess of other assets—0.0%   (7,250 )
       
Net Assets—100.0%   139,112,447  
       

 

See accompanying notes to financial statements.

 

34


PACIFIC CAPITAL FUNDS

Growth and Income Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $142,262,486. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 9,835,047  

Unrealized depreciation

     (12,977,836 )
        

Net unrealized depreciation

   $ (3,142,789 )
        

 

See accompanying notes to financial statements.

 

35


PACIFIC CAPITAL FUNDS

Value Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks (98.5%)  
Consumer Discretionary (11.6%)  
18,500  

Bunge Ltd.

  2,191,695
48,590  

CBS Corp., Class B

  1,223,982
30,990  

Colgate-Palmolive Co.

  2,386,230
28,730  

Family Dollar Stores, Inc.

  604,192
33,350  

Goodyear Tire & Rubber Co. (The) (a)

  839,419
19,600  

Hewitt Associates, Inc., Class A (a)

  728,532
4,480  

ITT Educational Services, Inc. (a)

  409,248
7,100  

Kimberly-Clark Corp.

  466,115
26,500  

McDonald’s Corp.

  1,419,075
5,400  

McGraw-Hill Cos., Inc. (The)

  230,904
12,000  

NIKE, Inc., Class B

  741,120
35,480  

Omnicom Group, Inc.

  1,609,728
18,390  

RadioShack Corp.

  319,066
21,700  

Tech Data Corp. (a)

  746,046
  29,080  

TJX Companies, Inc. (The)

  917,765
21,240  

Walt Disney Co. (The)

  635,713
     
      15,468,830
     
Consumer Staples (6.0%)  
21,404  

Altria Group, Inc.

  1,622,851
13,100  

Costco Wholesale Corp.

  890,014
27,400  

Eastman Kodak Co.

  546,082
44,160  

International Paper Co.

  1,424,160
61,170  

Kroger Co. (The)

  1,556,777
16,010  

PepsiCo, Inc.

  1,091,722
4,600  

Procter & Gamble Co. (The)

  303,370
20,600  

Sysco Corp.

  598,430
     
    8,033,406
     
Energy (17.9%)  
8,290  

Atmos Energy Corp.

  238,089
60,690  

Chevron Corp.

  5,128,305
31,500  

CMS Energy Corp.

  493,605
21,790  

Constellation Energy Group

  2,047,389
9,410  

Devon Energy Corp.

  799,662
98,108  

Exxon Mobil Corp.

  8,476,531
10,070  

Frontier Oil Corp.

  355,169
37,500  

Marathon Oil Corp.

  1,756,875
11,800  

McDermott International, Inc. (a)

  556,724
14,600  

Murphy Oil Corp.

  1,073,684
10,100  

Noble Energy, Inc.

  733,058
63,820  

Reliant Energy, Inc. (a)

  1,357,451
4,060  

Sempra Energy

  226,954
10,060  

Valero Energy Corp.

  595,451
     
    23,838,947
     
Financials (28.4%)  
23,390  

ACE Ltd.

  1,364,573
44,220  

Allstate Corp. (The)

  2,178,719
8,400  

American Express Co.

  414,288
5,800  

Arch Capital Group Ltd. (a)

  408,668
22,800  

Axis Capital Holdings Ltd.

  912,912
74,940  

Bank of America Corp.

  3,323,589
9,740  

Boston Properties, Inc.

  895,301
51,200  

Charles Schwab Corp. (The)

  1,141,760
21,870  

Chubb Corp. (The)

  1,132,647
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Financials, continued  
94,960  

Citigroup, Inc.

  2,679,771
14,750  

Discover Financial Services

  258,125
4,440  

Everest Re Group Ltd.

  451,504
9,200  

Fannie Mae

  311,512
17,000  

Freddie Mac

  516,630
5,840  

Goldman Sachs Group, Inc. (The)

  1,172,497
11,150  

Hospitality Properties Trust

  378,543
7,900  

Janus Capital Group, Inc.

  213,379
  112,599  

JPMorgan Chase & Co.

  5,354,082
48,500  

KeyCorp, Inc.

  1,268,275
16,690  

Loews Corp.

  779,256
3,500  

MasterCard, Inc., Class A

  724,500
27,300  

Morgan Stanley

  1,349,439
13,100  

Northern Trust Corp.

  961,016
11,800  

PartnerRe Ltd.

  935,504
10,770  

SAFECO, Inc.

  574,795
19,500  

State Street Corp.

  1,601,340
17,370  

SunTrust Banks, Inc.

  1,197,661
54,200  

Travelers Cos., Inc. (The)

  2,607,020
11,500  

U.S. Bancorp

  390,425
69,200  

Wells Fargo & Co.

  2,353,492
     
      37,851,223
     
Health Care (7.7%)  
20,030  

AmerisourceBergen Corp.

  934,400
35,570  

Baxter International, Inc.

  2,160,522
11,400  

Humana, Inc. (a)

  915,420
2,400  

Intuitive Surgical, Inc. (a)

  609,600
7,000  

Invitrogen Corp. (a)

  599,690
10,490  

Johnson & Johnson

  663,597
8,500  

Kinetic Concepts, Inc. (a)

  423,130
9,200  

Medco Health Solutions, Inc. (a)

  460,736
151,000  

Pfizer, Inc.

  3,531,890
     
    10,298,985
     
Industrials (8.7%)  
15,500  

Agco Corp. (a)

  933,410
21,500  

Boeing Co. (The)

  1,788,370
19,740  

Cummins, Inc.

  953,047
26,960  

Emerson Electric Co.

  1,370,646
9,360  

Fluor Corp.

  1,138,831
79,460  

General Electric Co.

  2,813,679
21,270  

Honeywell International, Inc.

  1,256,419
3,600  

Raytheon Co.

  234,504
11,270  

SPX Corp.

  1,133,762
     
    11,622,668
     
Information Technology (2.5%)  
27,050  

Accenture Ltd., Class A

  936,471
2,500  

Amazon.com, Inc. (a)

  194,250
3,500  

Apple Computer, Inc. (a)

  473,760
9,160  

Avnet, Inc. (a)

  326,188
19,000  

Intel Corp.

  402,800
18,300  

Juniper Networks, Inc. (a)

  496,845
6,800  

MEMC Electronic Materials, Inc. (a)

  485,928
     
    3,316,242
     

 

See accompanying notes to financial statements.

 

36


PACIFIC CAPITAL FUNDS

Value Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Materials (3.4%)  
30,400  

AK Steel Holding Corp. (a)

  1,452,512
56,910  

Celanese Corp., Series A

  2,115,914
5,350  

Lubrizol Corp. (The)

  281,463
5,200  

Mosaic Co. (The) (a)

  473,252
2,700  

United States Steel Corp.

  275,697
     
    4,598,838
     
Real Estate Investment Trusts (1.9%)  
16,950  

AMB Property Corp.

  857,670
46,800  

Annaly Capital Management, Inc.

  922,896
39,340  

HRPT Properties Trust

  312,753
1,800  

SL Green Realty Corp.

  167,058
9,000  

Weingarten Realty Investors

  302,580
     
    2,562,957
     
Telecommunications (6.4%)  
106,611  

AT&T, Inc.

  4,103,457
9,860  

CenturyTel, Inc.

  363,933
10,100  

Telephone & Data Systems, Inc.

  532,674
90,020  

Verizon Communications, Inc.

  3,496,377
     
        8,496,441
     
Shares  

Security
Description

  Value ($)
Common Stocks, continued  
Transportation (0.8%)  
17,390  

Continental Airlines, Inc., Class B (a)

  473,182
6,200  

Frontline Ltd.

  263,934
2,200  

Union Pacific Corp.

  275,066
     
    1,012,182
     
Utilities (3.2%)  
41,490  

Edison International

  2,164,118
5,600  

Energen Corp.

  352,240
37,760  

Northeast Utilities

  1,046,707
15,890  

ONEOK, Inc.

  746,830
     
    4,309,895
     
Total Common Stocks (Cost $135,010,182)   131,410,614
     
Investment Companies (1.4%)  
1,841,735  

Victory Federal Money Market Fund, Investor Shares, 3.10% (b)

  1,841,735
     
Total Investment Companies (Cost $1,841,735)   1,841,735
     
Total Investments (Cost $136,851,917)
(c)—99.9%
  133,252,349
Other assets in excess of liabilities—0.1%   66,917
     
Net Assets—100.0%   133,319,266
     

 

(a) Non-income producing security.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Cost for federal income tax purposes is $137,496,334. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 8,667,711  

Unrealized depreciation

     (12,911,696 )
        

Net unrealized depreciation

   $ (4,243,985 )
        

 

See accompanying notes to financial statements.

 

37


PACIFIC CAPITAL FUNDS

High Grade Core Fixed Income Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Corporate Bonds (31.9%)  
Consumer Discretionary (3.3%)  
1,388,000  

Colgate-Palmolive Co., Series B, 7.60%, 5/19/25, MTN

  1,698,398
2,990,000  

Comcast Corp., 5.85%, 11/15/15

  3,028,610
4,672,000  

Harvard President & Fellows of Harvard, 6.30%, 10/1/37, Callable 4/1/16 @ 100

  5,263,569
     
    9,990,577
     
Consumer Staples (3.1%)  
625,000  

Bestfoods, Series F,
6.63%, 4/15/28, MTN

  683,688
2,240,000  

Bottling Group LLC,
4.63%, 11/15/12

  2,311,525
1,500,000  

Kimberly-Clark, 6.13%, 8/1/17

  1,615,099
1,660,000  

Starbucks Corp., 6.25%, 8/15/17

  1,712,224
3,000,000  

Wal-Mart Stores, Inc.,
5.88%, 4/5/27

  2,962,380
     
    9,284,916
     
Energy (4.7%)  
1,800,000  

Apache Finance Canada,
7.75%, 12/15/29

  2,132,550
1,030,000  

Atlantic Richfield Co.,
8.50%, 4/1/12

  1,207,256
2,125,000  

Duke Capital LLC,
8.00%, 10/1/19

  2,500,020
2,252,000  

Halliburton Co., 8.75%, 2/15/21

  2,859,475
1,675,000  

Kinder Morgan Energy Partners LP, 5.85%, 9/15/12

  1,751,433
3,625,000  

Smith International, Inc.,
6.00%, 6/15/16

  3,790,594
     
      14,241,328
     
Financials (10.7%)  
Banking (3.9%)  
736,351  

Fifth Third Bancorp, Series BKNT, 2.87%, 8/10/09

  720,090
2,218,000  

JP Morgan Chase & Co.,
6.75%, 2/1/11

  2,374,267
1,500,000  

JP Morgan Chase & Co.,
5.60%, 6/1/11

  1,567,329
1,300,000  

US Bank NA, 6.30%, 2/4/14

  1,392,226
2,110,000  

US Bank NA, Series BKNT,
4.95%, 10/30/14

  2,115,707
1,825,000  

Washington Mutual Bank,
5.37% (a), 5/20/13

  1,580,282
1,980,000  

Wells Fargo & Co.,
5.63%, 12/11/17

  2,038,636
     
    11,788,537
     
Financial Services (6.8%)  
1,225,000  

Charles Schwab Corp., Series A, 6.38%, 9/1/17, MTN

  1,268,843
1,210,000  

CIT Group Funding Co. Canada, 4.65%, 7/1/10

  1,154,252
Principal
Amount ($)
 

Security
Description

  Value ($)
Corporate Bonds, continued  
Financial Services, continued  
1,050,000  

General Electric Capital Corp., 5.72%, 8/22/11, Callable
1/22/09 @ 100

  1,068,147
500,000  

Genworth Financial, Inc.,
5.75%, 6/15/14

  508,870
1,000,000  

International Lease Finance Corp., Series MTNP,
4.66% (a), 1/15/10, MTN

  1,001,570
3,450,000  

International Lease Finance Corp., 4.73% (a), 7/13/12

  3,320,984
2,150,000  

Lehman Brothers Holdings, Inc., 5.63%, 1/24/13, MTN

  2,180,121
3,700,000  

Merrill Lynch & Co., Series C,
5.37% (a), 6/5/12, MTN

  3,387,609
1,100,000  

Merrill Lynch & Co.,
5.70%, 5/2/17

  1,062,942
825,000  

Textron Financial Corp.,
5.13%, 11/1/10

  848,907
2,284,324  

Toyota Motor Credit Corp.,
2.75%, 8/6/09, MTN

  2,259,105
2,450,000  

Toyota Motor Credit Corp., Series B, 5.42%, 3/22/17, Callable 3/22/08 @ 100, MTN

  2,453,285
     
      20,514,635
     
    32,303,172
     
Industrials (1.6%)  
2,400,000  

Dominion Resources, Inc.,
5.25%, 8/1/33

  2,391,033
2,300,000  

General Electric Co.,
5.00%, 2/1/13

  2,374,081
     
    4,765,114
     
Information Technology (0.2%)  
625,000  

Pitney Bowes, Inc.,
5.25%, 1/15/37, MTN

  629,042
     
Materials (0.7%)  
2,150,000  

Placer Dome, Inc.,
6.45%, 10/15/35

  2,198,310
     
Pharmaceuticals (0.7%)  
950,000  

Abbott Laboratories,
5.60%, 5/15/11

  1,005,117
872,000  

Pharmacia Corp., 6.75%, 12/15/27

  973,825
     
    1,978,942
     
Supranational Agency (1.1%)  
3,000,000  

Inter-American Development Bank, 4.75%, 10/19/12

  3,186,321
     
Technology (0.5%)  
340,000  

Science Applications International Corp., 7.13%, 7/1/32

  364,784
1,385,000  

Science Applications International Corp., 5.50%, 7/1/33

  1,190,352
     
    1,555,136
     

 

See accompanying notes to financial statements.

 

38


PACIFIC CAPITAL FUNDS

High Grade Core Fixed Income Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Corporate Bonds, continued  
Telecommunications (2.9%)  
4,075,000  

GTE Southwest, Inc.,
First Mortgage Bond,
8.50%, 11/15/31

  4,981,647
1,550,000  

Harris Corp., 5.00%, 10/1/15

  1,530,067
2,000,000  

Harris Corp., 5.95%, 12/1/17

  2,048,378
     
    8,560,092
     
Transportation (2.0%)  
795,317  

Burlington Northern & Santa Fe Railway Co. (The),
5.14%, 1/15/21

  786,131
3,985,232  

FedEx Corp., Pass Thru Certificates, 7.50%, 1/15/18

  4,339,918
795,000  

United Parcel Service, Inc.,
4.50%, 1/15/13

  816,066
     
    5,942,115
     
Utilities (0.4%)  
1,295,000  

Alabama Power Co., Series 1, 5.65%, 3/15/35, Callable
3/15/15 @ 100

  1,197,667
     
Total Corporate Bonds (Cost $94,436,109)   95,832,732
     
Collateralized Mortgage Obligations (2.6%)  
7,947,459  

WAMU Mortgage Pass-Through Certificates, Series 2007- HY7, Class 3A1, 5.92%, 7/25/37

  7,967,152
     
Total Collateralized Mortgage Obligations
(Cost $7,921,173)
  7,967,152
     
U.S. Government Agency Mortgage-BackedObligations (34.2%)  
Federal Home Loan Mortgage Corp. (10.9%)  
2,642,622  

5.50%, 4/1/21

  2,705,709
2,180,744  

4.50%, 8/1/33

  2,112,804
2,606,143  

5.00%, 5/1/34

  2,597,710
4,706,652  

5.50%, 3/1/35

  4,768,535
1,732,135  

6.00%, 4/1/36

  1,776,441
6,236,231  

5.83%, 12/1/36

  6,388,480
6,046,486  

6.00%, 12/1/36

  6,201,150
3,288,091  

5.50%, 1/1/37

  3,309,095
2,665,457  

6.50%, 5/1/37

  2,770,154
     
      32,630,078
     
Federal National Mortgage Assoc. (22.5%)  
1,871,348  

4.50%, 6/1/14

  1,918,101
3,061,140  

4.50%, 3/1/19

  3,060,786
792,218  

4.50%, 10/1/33

  771,068
2,650,716  

5.00%, 1/1/34

  2,644,735
740,651  

5.00%, 3/1/34

  738,980
3,734,750  

5.08% (a), 9/1/34

  3,874,205
3,643,771  

5.10% (a), 10/1/34

  3,712,285
2,822,786  

5.50%, 2/1/35

  2,864,169
6,582,857  

5.50%, 2/1/35

  6,679,364
2,497,517  

5.00%, 4/1/35

  2,488,913
2,515,440  

6.00%, 4/1/35

  2,585,949
8,188,000  

5.50%, 7/25/35

  8,285,427
Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Government Agency Mortgage-BackedObligations, continued  
Federal National Mortgage Assoc., continued  
1,415,723  

5.00%, 8/1/35

  1,410,311
3,356,084  

5.00%, 8/1/35

  3,343,254
3,887,503  

5.50%, 10/1/35

  3,941,921
2,463,589  

6.00%, 12/1/35

  2,530,937
1,787,160  

6.50%, 6/1/36

  1,855,742
2,820,545  

6.50%, 6/1/36

  2,928,783
2,274,328  

6.00%, 10/1/36

  2,334,554
3,168,158  

5.50%, 12/1/36

  3,191,366
6,559,069  

5.60% (a), 1/1/37

  6,630,679
     
    67,791,529
     
Government National Mortgage Assoc. (0.8%)  
2,319,317  

5.50%, 11/15/35

  2,366,731
     
Total U.S. Government Agency Mortgage-Backed Obligations (Cost $99,084,894)   102,788,338
     
U.S. Government Agencies (9.4%)  
Federal Farm Credit Bank (0.7%)  
1,100,000  

4.75%, 6/20/11,
Callable 3/20/08 @ 100

  1,102,743
1,000,000  

4.90%, 11/21/12,
Callable 11/21/08 @ 100

  1,017,778
     
    2,120,521
     
Federal Home Loan Bank (4.2%)  
3,000,000  

7.63%, 5/14/10

  3,320,808
400,000  

5.00% (a), 5/26/10

  419,960
6,000,000  

4.88%, 11/18/11

  6,372,282
535,000  

4.87%, 9/7/12

  535,136
2,000,000  

4.45%, 2/12/13,
Callable 5/12/08 @ 100

  2,008,780
     
      12,656,966
     
Federal Home Loan Mortgage Corp. (3.7%)  
3,025,000  

5.40%, 6/15/10,
Callable 6/15/09 @ 100

  3,129,753
4,685,000  

5.13%, 11/17/17

  5,020,727
3,000,000  

6.25%, 4/7/21,
Callable 4/7/08 @ 100

  3,017,379
     
    11,167,859
     
Federal National Mortgage Assoc. (0.5%)  
1,350,000  

5.50%, 7/9/10,
Callable 1/9/09 @ 100

  1,382,049
     
Small Business Administration Corp. (0.3%)  
842,540  

6.34%, 8/1/11

  874,325
     
Total U.S. Government Agencies(Cost $27,301,686)   28,201,720
     
U.S. Treasury Obligations (20.4%)  
U.S. Treasury Bonds (1.6%)  
2,850,000  

7.88%, 2/15/21

  3,934,559
700,000  

5.50%, 8/15/28

  807,023
     
    4,741,582
     

 

See accompanying notes to financial statements.

 

39


PACIFIC CAPITAL FUNDS

High Grade Core Fixed Income Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Treasury Obligations, continued  
U.S. Treasury Notes (18.8%)  
16,500,000  

6.50%, 2/15/10

  17,919,264
20,000,000  

4.75%, 3/31/11

  21,471,880
2,516,000  

4.63%, 7/31/12

  2,715,119
3,000,000  

4.63%, 11/15/16

  3,237,657
10,840,000  

4.25%, 11/15/17

  11,387,084
     
    56,731,004
     
Total U.S. Treasury Obligations(Cost $58,403,718)   61,472,586
     
Shares  

Security
Description

  Value ($)
Investment Companies (1.0%)  
2,938,994  

Victory Federal Money Market Fund, Investor Shares,
3.10% (a)

  2,938,994
     
Total Investment Companies (Cost $2,938,994)   2,938,994
     
Total Investments (Cost $290,086,574)
(b)—99.5%
  299,201,522
Other assets in excess of liabilities—0.5%   1,645,481
     
Net Assets—100.0%   300,847,003
     

 

(a) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(b) Cost for federal income tax purposes is $290,086,574. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 10,171,999  

Unrealized depreciation

     (1,057,051 )
        

Net unrealized appreciation

   $ 9,114,948  
        

 

LLC—Limited Liability Co.

LP—Limited Partnership

MTN—Medium Term Note

 

See accompanying notes to financial statements.

 

40


PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds (99.3%)  
Arizona (3.5%)  
7,255,000  

Phoenix Civic Improvement Corp., Civic Plaza, Convertible CAB, 0.00% (a), 7/1/31, 5.50% effective 7/1/13, FGIC

  5,784,339
2,150,000  

Phoenix Civic Improvement Corp., Wastewater Revenue,
5.25%, 7/1/16, Callable
7/1/08 @ 100, MBIA

  2,154,665
1,605,000  

Scottsdale GO, 5.38%, 7/1/16, Callable 7/1/11 @ 101

  1,734,925
     
    9,673,929
     
Arkansas (0.7%)  
1,915,000  

Arkansas State Development Finance Authority, AMT,
4.80%, 7/1/26, Callable
1/1/16 @ 100

  1,866,933
     
California (1.2%)  
2,000,000  

California State Variable Purpose GO, 4.75%, 12/1/27, Callable 12/1/17 @ 100

  1,987,180
1,275,000  

California State Variable Purpose GO, 5.00%, 8/1/33, Callable 8/1/15 @ 100

  1,277,359
     
    3,264,539
     
Colorado (0.6%)  
1,700,000  

Interlocken Metropolitan District GO, Series A, 5.75%, 12/15/19, Callable 12/15/09 @ 101,
Ins: Radian

  1,766,062
     
Connecticut (0.7%)  
2,000,000  

Connecticut State Health & Educational Facility Authority Revenue, University of Hartford, Series G, 5.25%, 7/1/26, Callable 7/1/16 @ 100

  2,018,840
     
Florida (4.6%)  
3,500,000  

Florida State Turnpike Authority Revenue, Department of Transportation, Series A,
5.75%, 7/1/17, Prerefunded
7/1/10 @ 101

      3,813,180
2,000,000  

Hillsborough County Aviation Authority Revenue, AMT,
5.25%, 10/1/18, Callable
10/1/13 @ 100, MBIA

  2,122,200
2,000,000  

Miami-Dade County Expressway Authority Toll System Revenue, 6.00%, 7/1/20, Prerefunded
7/1/10 @ 101, FGIC

  2,188,120
3,725,000  

Orlando Utilities Community Water & Electric Revenue, Series D, 6.75%, 10/1/17, ETM

  4,526,359
     
    12,649,859
     
Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Georgia (3.9%)  
2,330,000  

Metropolitan Atlanta Rapid Transportation Authority Sales Tax Revenue, Series P,
6.25%, 7/1/11, AMBAC

  2,556,336
390,000  

Municipal Electric Authority Power Revenue, Series W,
6.60%, 1/1/18, ETM, MBIA

  494,949
6,415,000  

Municipal Electric Authority Power Revenue, Series W,
6.60%, 1/1/18, Unrefunded Portion, MBIA

  7,688,185
     
      10,739,470
     
Hawaii (58.7%)  
3,000,000  

Hawaii Airport System Revenue, AMT, 5.63%, 7/1/18, Callable 7/1/11 @ 100, FGIC

  3,145,860
15,375,000  

Hawaii Airport System Revenue, Second Series, AMT,
6.90%, 7/1/12, ETM, MBIA

  16,909,271
605,000  

Hawaii County GO, Series A,
5.60%, 5/1/13, FGIC

  682,264
1,065,000  

Hawaii County GO, Series A,
5.50%, 7/15/14, Prerefunded 7/15/11 @ 100, FGIC

  1,172,022
1,340,000  

Hawaii County GO, Series A,
5.50%, 7/15/15, Prerefunded 7/15/11 @ 100, FGIC

  1,474,657
2,000,000  

Hawaii County GO, Series A,
5.50%, 5/15/16, Prerefunded 5/15/09 @ 101, FSA

  2,109,660
3,000,000  

Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co.,
5.70%, 7/1/20, Callable
7/1/10 @100, AMBAC

  3,081,840
3,000,000  

Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, AMT, 4.95%, 4/1/12, MBIA

  3,257,400
2,000,000  

Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.50%, 12/1/14, Callable 12/1/09 @ 101, AMBAC

  2,124,520
5,200,000  

Hawaii Department of Budget & Finance, Special Purpose Revenue, Hawaiian Electric Co., Series A, 5.65%, 10/1/27, Callable 10/1/12 @ 101, MBIA

  5,465,980
2,500,000  

Hawaii Department of Budget & Finance, Special Purpose Revenue, Queens Health System, Series B, 5.25%, 7/1/23, Prerefunded
7/1/08 @ 102, MBIA

  2,583,125

 

See accompanying notes to financial statements.

 

41


PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Hawaii, continued  
2,340,000  

Hawaii Housing Finance & Development Corp., University of Hawaii Faculty Housing Project Revenue, 5.70%, 10/1/25, Callable 10/1/08 @ 100, AMBAC

  2,345,897
400,000  

Hawaii Pacific Health, Special Purpose Revenue, Department of Budget & Finance, Series B, 3.85% (b), 7/1/33, Ins: Radian

  400,000
3,100,000  

Hawaii Pacific Health, Special Purpose Revenue, Department of Budget & Finance, Series B-2, 3.85% (b), 7/1/33, Ins: Radian

  3,100,000
2,000,000  

Hawaii State GO, Series BZ, 6.00%, 10/1/12, FGIC

      2,275,580
1,350,000  

Hawaii State GO, Series CH, 4.75%, 11/1/11, MBIA

  1,453,221
1,335,000  

Hawaii State GO, Series CH, 4.75%, 11/1/13, MBIA

  1,458,007
3,000,000  

Hawaii State GO, Series CM, 6.50%, 12/1/13, FGIC

  3,549,900
1,520,000  

Hawaii State GO, Series CP,
5.00%, 10/1/13, Callable
10/1/09 @ 100, FGIC

  1,538,149
1,235,000  

Hawaii State GO, Series CP,
5.00%, 10/1/15, Callable
10/1/09 @ 100, FGIC

  1,249,746
860,000  

Hawaii State GO, Series CP,
5.00%, 10/1/16, Callable
10/1/09 @ 100, FGIC

  870,268
590,000  

Hawaii State GO, Series CP,
5.00%, 10/1/17, Callable
10/1/09 @ 100, FGIC

  597,045
2,000,000  

Hawaii State GO, Series CT, 5.88%, 9/1/16, Prerefunded 9/1/09 @ 101, FSA

  2,135,160
2,000,000  

Hawaii State GO, Series CT, 5.88%, 9/1/17, Prerefunded 9/1/09 @ 101, FSA

  2,135,160
500,000  

Hawaii State GO, Series CY, 5.75%, 2/1/15, FSA

  583,365
1,000,000  

Hawaii State GO, Series DD, 5.00%, 5/1/17, Callable
5/1/14 @ 100, MBIA

  1,086,280
2,680,000  

Hawaii State GO, Series DD, 5.00%, 5/1/18, Prerefunded 5/1/14 @ 100, MBIA

  3,000,581
1,560,000  

Hawaii State GO, Series DD, 5.00%, 5/1/18, Callable
5/1/14 @ 100, MBIA

  1,682,788
1,105,000  

Hawaii State Harbor System Revenue, Series A, AMT,
5.25%, 7/1/16, FSA

  1,236,186
1,500,000  

Hawaii State Harbor System Revenue, Series B, AMT,
5.50%, 7/1/19, Callable
7/1/12 @ 100, AMBAC

  1,596,225
Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Hawaii, continued  
1,000,000  

Hawaii State Highway Revenue, 5.25%, 7/1/14, Prerefunded 7/1/08 @ 101, FGIC

  1,023,330
1,350,000  

Hawaii State Highway Revenue, 5.38%, 7/1/17, Prerefunded 7/1/10 @ 100, FSA

  1,447,227
2,530,000  

Hawaii State Highway Revenue, 5.38%, 7/1/18, Prerefunded 7/1/10 @ 100, FSA

  2,712,211
2,000,000  

Hawaii State Housing Finance & Development Corp., Single Family Mortgage Purchase Revenue, Series A, AMT,
5.40%, 7/1/29, Callable
7/1/08 @ 101.50, FNMA

  2,020,520
2,970,000  

Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/18, Callable 7/1/14 @ 100, FGIC

  3,158,506
10,865,000  

Honolulu City & County Board of Water Supply System Revenue, Series A, 4.75%, 7/1/31, Callable 7/1/16 @ 100, MBIA

    10,864,565
2,320,000  

Honolulu City & County GO, 6.00%, 12/1/11, ETM, FGIC

  2,615,058
3,500,000  

Honolulu City & County GO, Series A, 5.38%, 9/1/18, Prerefunded 9/1/11 @ 100, FSA

  3,836,735
2,125,000  

Honolulu City & County GO, Series A, 6.00%, 1/1/11, ETM, FGIC

  2,339,030
875,000  

Honolulu City & County GO, Series A, 6.00%, 1/1/11, FGIC

  957,460
4,820,000  

Honolulu City & County GO, Series A, 5.75%, 4/1/11, ETM, FGIC

  5,309,278
1,865,000  

Honolulu City & County GO, Series A, 5.75%, 4/1/12, FGIC

  2,079,344
850,000  

Honolulu City & County GO, Series A, 5.75%, 4/1/13, ETM, FGIC

  971,320
3,345,000  

Honolulu City & County GO, Series A, 5.75%, 4/1/13, FGIC

  3,776,103
1,670,000  

Honolulu City & County GO, Series A, 5.63%, 9/1/13, Prerefunded 9/1/08 @ 100, FGIC

  1,705,120
6,250,000  

Honolulu City & County GO, Series A, 5.00%, 7/1/19, Callable 7/1/15 @ 100, MBIA

  6,793,000
1,000,000  

Honolulu City & County GO, Series B, 5.13%, 7/1/10, Prerefunded 7/1/09 @ 101, FGIC

  1,051,940

 

See accompanying notes to financial statements.

 

42


PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Hawaii, continued  
640,000  

Honolulu City & County GO, Series B, 5.25%, 10/1/12, FGIC

  707,386
2,595,000  

Honolulu City & County GO, Series B, 5.13%, 7/1/18, Prerefunded 7/1/09 @ 101, FGIC

  2,729,784
2,500,000  

Honolulu City & County GO, Series C, 5.13%, 7/1/16, Callable 7/1/09 @ 101, FGIC

  2,610,625
5,000,000  

Honolulu City & County GO, Series D, 5.00%, 7/1/20, Callable 7/1/15 @ 100, MBIA

  5,394,000
2,000,000  

Honolulu City & County Waste Water System Revenue, Junior Series, 5.00%, 7/1/23, Callable 7/1/09 @ 101, FGIC

  2,048,680
2,680,000  

Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/21, Callable 7/1/17 @100, FSA

  2,934,466
5,000,000  

Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/26, Callable 7/1/15 @ 100, MBIA

  5,219,750
2,315,000  

Honolulu Hawaii City & County GO, Series A, 5.00%, 7/1/29, Callable 7/1/17 @ 100, FSA

  2,419,129
2,000,000  

Honolulu Hawaii City & County GO, Series C, 5.13%, 7/1/11, Callable 7/1/09 @ 101, FGIC

  2,093,040
2,155,000  

Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable 5/20/10 @ 102

  2,267,943
1,340,000  

Kauai County GO, Series C,
5.90%, 8/1/09, AMBAC

  1,410,404
  1,000,000  

Maui County GO,
6.00%, 12/15/08, ETM, FGIC

  1,033,250
1,125,000  

Maui County GO, Series C,
5.25%, 3/1/18, Callable
3/1/11 @ 100, FGIC

  1,196,359
1,000,000  

University of Hawaii System Revenue, Series A,
5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC

  1,119,630
1,205,000  

University of Hawaii System Revenue, Series A,
5.50%, 7/15/22, Prerefunded 7/15/12 @ 100, FGIC

  1,349,154
1,000,000  

University of Hawaii System Revenue, Series A,
5.50%, 7/15/29, Prerefunded 7/15/12 @ 100, FGIC

  1,119,630
     
    162,614,134
     
Illinois (1.8%)  
2,000,000  

Chicago Midway Airport Revenue, Series C, 5.50%, 1/1/15, MBIA

  2,263,080
Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Illinois, continued  
5,505,000  

Kane & De Kalb Counties Illinois Community Unit School District GO, 4.89% (c), 2/1/23, FGIC

  2,703,891
     
    4,966,971
     
Indiana (0.4%)  
1,000,000  

Tri-Creek High School Building Corp. Revenue, 5.00%, 7/15/15, Prerefunded 7/15/13 @ 100, FSA

  1,112,500
     
Kentucky (0.5%)  
1,250,000  

Kentucky State Property & Buildings Commission Revenue, 2nd Series, AMT, 5.50%, 11/1/16, Callable
11/1/12 @ 100, FSA

  1,395,812
     
Massachusetts (0.4%)  
1,000,000  

Massachusetts State GO, Series C, 5.75%, 10/1/20, Prerefunded 10/1/10 @ 100

  1,084,840
     
Michigan (2.1%)  
3,000,000  

Michigan Municipal Building Authority Revenue, Clean Water Revolving Fund, 5.50%, 10/1/21, Prerefunded 10/1/10 @ 101

  3,271,620
2,245,000  

Michigan State Strategic Fund Ltd. Obligation Revenue,
6.95%, 5/1/11, FGIC

  2,537,389
     
    5,809,009
     
Missouri (0.8%)  
2,000,000  

University of Missouri Revenue, Series B, 5.38%, 11/1/16, Callable 11/1/11 @ 100

  2,156,440
     
New York (4.6%)  
  2,000,000  

New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series A,
5.80%, 4/1/18, Callable
4/1/10 @ 101, FSA

  2,170,660
5,165,000  

New York, New York GO, Series J, 5.00%, 6/1/21, Callable
6/1/16 @ 100

  5,470,975
5,000,000  

New York, New York GO, Series J, 5.00%, 6/1/24, Callable
6/1/16 @ 100

  5,199,800
     
      12,841,435
     
Ohio (0.8%)  
795,000  

Hamilton County Sales Tax Revenue, Series B,
5.25%, 12/1/18, Prerefunded
12/1/10 @ 100

  858,028

 

See accompanying notes to financial statements.

 

43


PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Ohio, continued  
205,000  

Hamilton County Sales Tax Revenue, Series B,
5.25%, 12/1/18, Callable
12/1/10 @ 100, AMBAC

  218,530
1,000,000  

Ohio State Building Authority, Adult Correction Facility Revenue, Series A,
5.50%, 10/1/14, Callable
10/1/11 @ 100, FSA

  1,097,900
     
    2,174,458
     
Oregon (3.2%)  
3,100,000  

Clackamas Community College District GO, 5.25%, 6/15/16, Prerefunded 6/15/11 @ 100, FGIC

  3,379,372
5,000,000  

Portland Sewer System Revenue, Series A, 5.75%, 8/1/18, Prerefunded 8/1/10 @ 100, FGIC

  5,417,450
     
        8,796,822
     
Puerto Rico (1.3%)  
2,010,000  

Puerto Rico Commonwealth Infrastructure Financing Authority, Series A,
4.66% (c), 7/1/30, FGIC

  601,372
3,000,000  

Puerto Rico Electric Power Authority Power Revenue,
Series TT, 5.00%, 7/1/26, Callable 7/1/17 @ 100

  3,033,540
     
    3,634,912
     
Texas (3.9%)  
2,395,000  

Barbers Hill Independent School District GO, 5.00%, 2/15/24, Callable 2/15/15 @ 100,
PSF-GTD

  2,517,960
5,275,000  

Galena Park Texas Independent School District,
4.95% (c), 8/15/27, PSF-GTD

  2,081,093
2,345,000  

Grapevine GO, Series A,
5.00%, 8/15/24, Callable
2/15/15 @ 100, MBIA

  2,465,392
Shares or
Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Texas, continued  
2,000,000  

Houston Independent School District GO, Series A,
5.00%, 2/15/24, Callable
2/15/15 @ 100

  2,108,920
1,365,000  

New Braunfels GO,
5.00%, 10/1/16, Callable
10/1/14 @ 100, AMBAC

  1,501,732
     
      10,675,097
     
Washington (5.6%)  
3,475,000  

Douglas County School District
No. 206 Eastmont GO,
5.00%, 12/1/17, Callable
6/1/11 @ 100, FGIC

  3,757,100
2,000,000  

Port Seattle Washington Revenue, 5.00%, 2/1/25, Callable
2/1/16 @ 100, XLCA

  2,076,000
1,125,000  

Skagit County Public Hospital District GO, Series B,
5.38%, 12/1/17, Callable
12/1/14 @ 100, MBIA

  1,247,648
1,000,000  

Snohomish County GO,
5.70%, 12/1/14, Prerefunded 12/1/09 @ 100, MBIA

  1,063,810
2,880,000  

Snohomish County Limited Tax GO, 5.25%, 12/1/12, Callable 12/1/11 @ 100, MBIA

  3,129,610
4,000,000  

Washington State GO, Series A, 5.63%, 7/1/19, Prerefunded 7/1/10 @ 100

  4,306,480
     
    15,580,648
     
Total Municipal Bonds (Cost $259,691,129)   274,822,710
     
Investment Companies (0.0%)  
56,878  

Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 3.01% (b)

  56,878
     
Total Investment Companies (Cost $56,878)   56,878
     
Total Investments (Cost $259,748,007)
(d)—99.3%
  274,879,588
Other assets in excess of liabilities—0.7%   1,969,569
     
Net Assets—100.0%   276,849,157
     

 

(a) Rate periodically changes. Rate disclosed is rate effective January 31, 2008.
(b) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(c) Rate represents the effective yield at purchase.
(d) Cost for federal income tax purposes is $259,748,007. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 15,769,279  

Unrealized depreciation

     (637,698 )
        

Net unrealized appreciation

   $ 15,131,581  
        

 

See accompanying notes to financial statements.

 

44


PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

AMBAC—Insured by American Municipal Bond Assurance Corp.

AMT—Subject to alternative minimum tax

ETM—Escrowed to Maturity

FGIC—Insured by Financial Guaranty Insurance Co.

FNMA—Insured by Federal National Mortgage Association

FSA—Insured by Federal Security Assurance

GO—General Obligation

MBIA—Insured by Municipal Bond Insurance Association

PSF-GTD—Insured by Public School Funding Guarantee

XLCA—Insured by XL Capital Assurance

 

See accompanying notes to financial statements.

 

45


PACIFIC CAPITAL FUNDS

High Grade Short Intermediate Fixed Income Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Corporate Bonds (23.1%)  
Consumer Discretionary (6.9%)  
1,250,000  

Comcast Corp., 5.45%, 11/15/10

  1,291,075
2,000,000  

Daimler Chrysler NA Holding Corp., 5.88%, 3/15/11

  2,079,378
1,250,000  

Newell Rubbermaid, Inc.,
4.00%, 5/1/10

  1,242,025
     
    4,612,478
     
Consumer Staples (0.8%)  
45,000  

Diageo Capital PLC,
5.20%, 1/30/13

  46,309
225,000  

Kroger Co., 5.50%, 2/1/13

  232,055
250,000  

PepsiCo, Inc., 5.15%, 5/15/12

  264,155
     
    542,519
     
Electrical Utility (0.8%)  
500,000  

Exelon Generation Co., LLC,
6.95%, 6/15/11

  530,066
     
Financials (10.4%)  
325,000  

American General Finance, Series J, 5.63%, 8/17/11, MTN

  334,626
1,000,000  

Countrywide Financial Corp.,
4.50%, 6/15/10

  881,204
525,000  

General Electric Capital Corp., 5.72%, 8/22/11, Callable
1/22/09 @ 100

  534,074
90,000  

General Electric Capital Corp.,
Series A, 5.25%, 10/19/12, MTN

  93,496
255,000  

Genworth Financial, Inc.,
5.23%, 5/16/09

  257,909
45,000  

Goldman Sachs Group, Inc.,
5.45%, 11/1/12

  47,139
1,000,000  

HSBC Finance Corp.,
5.50%, 1/19/16

  1,001,964
215,000  

Lehman Brothers Holdings, Inc., 5.63%, 1/24/13, MTN

  218,012
1,000,000  

MetLife, Inc., 5.00%, 6/15/15

  1,003,096
1,500,000  

Morgan Stanley, 5.63%, 1/9/12

  1,546,980
1,000,000  

Toyota Motor Credit Corp.,
5.50%, 9/22/11, Callable
9/22/08 @ 100

  1,007,110
     
      6,925,610
     
Health Care (1.7%)  
875,000  

Eli Lilly & Co., 5.20%, 3/15/17

  889,876
200,000  

Johnson & Johnson,
5.15%, 8/15/12

  215,310
     
    1,105,186
     
Industrials (0.5%)  
125,000  

ConocoPhillips Canada,
5.30%, 4/15/12

  130,940
160,000  

Dominion Resource, Inc.,
4.75%, 12/15/10

  162,808
     
    293,748
     
Real Estate Investment Trust (1.5%)  
1,000,000  

Simon Property Group LP,
4.88%, 3/18/10

  1,005,945
     
Principal
Amount ($)
 

Security
Description

  Value ($)
Corporate Bonds, continued  
Transportation (0.5%)  
325,000  

United Parcel Service, Inc.,
4.50%, 1/15/13

  333,612
     
Total Corporate Bonds (Cost $15,090,263)   15,349,164
     
U.S. Government Agency Mortgage-BackedObligations (38.7%)  
Federal Home Loan Mortgage Corp. (22.6%)  
2,650,000  

5.13%, 10/15/08

  2,696,735
550,000  

4.75%, 3/5/12

  581,945
570,425  

5.00%, 1/1/19

  579,095
1,134,944  

4.50%, 4/1/19

  1,135,852
986,212  

4.50%, 12/1/19

  986,093
862,052  

6.00%, 6/1/21

  890,595
1,454,224  

5.15% (a), 11/1/35

  1,470,395
1,441,357  

6.50%, 9/1/36

  1,497,945
5,048,676  

6.00%, 10/1/37

  5,177,639
     
    15,016,294
     
Federal National Mortgage Assoc. (16.1%)  
400,000  

4.38%, 9/15/12

  418,460
549,507  

5.00%, 5/1/19

  558,074
1,566,459  

6.50%, 6/1/36

  1,626,564
3,985,367  

5.47% (a), 4/1/37

  4,080,816
3,990,623  

6.00%, 10/1/37

  4,096,175
     
    10,780,089
     
Total U.S. Government Agency Mortgage-BackedObligations (Cost $25,224,060)   25,796,383
     
U.S. Government Agencies (30.4%)  
Federal Farm Credit Bank (1.4%)  
130,000  

3.61%, 4/15/08

  130,016
610,000  

3.50%, 7/28/08,
Callable 2/1/08 @ 100

  610,000
200,000  

3.38%, 3/16/09,
Callable 2/4/08 @ 100

  200,008
     
    940,024
     
Federal Home Loan Bank (29.0%)  
254,167  

3.75%, 2/6/08

  254,141
250,000  

3.50%, 4/15/08,
Callable 2/11/08 @ 100

  250,018
575,000  

6.19%, 5/6/08

  579,967
850,000  

5.13%, 8/8/08

  860,258
100,000  

4.00%, 2/20/09,
Callable 2/20/08 @ 100

  100,075
100,000  

4.00%, 10/30/09,
Callable 4/30/08 @ 100

  100,343
1,000,000  

5.00%, 11/3/09

  1,039,817
2,185,000  

4.25%, 11/20/09

  2,245,348
222,222  

4.38%, 2/2/10,
Callable 2/11/08 @ 100

  222,266
4,875,000  

5.00%, 3/12/10

  5,101,527
200,000  

4.20%, 5/7/10

  200,000
4,000,000  

4.88%, 5/14/10

  4,185,752
200,000  

4.06%, 8/6/10,
Callable 2/6/08 @ 100

  200,035

 

See accompanying notes to financial statements.

 

46


PACIFIC CAPITAL FUNDS

High Grade Short Intermediate Fixed Income Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

    
Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Government Agencies, continued  
Federal Home Loan Bank, continued  
1,750,000  

4.13%, 8/13/10

  1,805,127
700,000  

5.25%, 6/10/11

  749,652
1,000,000  

4.88%, 11/18/11

  1,062,047
350,000  

5.13%, 8/14/13

  378,269
     
    19,334,642
     
Total U.S. Government Agencies
(Cost $19,512,428)
  20,274,666
     
U.S. Treasury Obligations (4.9%)  
U.S. Treasury Notes (4.9%)  
29,000  

2.63%, 5/15/08

  29,059
15,000  

3.25%, 8/15/08

  15,092
67,000  

3.13%, 10/15/08

  67,445
95,000  

3.00%, 2/15/09

  95,846
2,000,000  

4.88%, 6/30/09

  2,076,720
300,000  

3.88%, 5/15/10

  311,461
Shares or
Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Treasury Obligations, continued  
U.S. Treasury Notes, continued  
158,000  

3.63%, 6/15/10

  163,345
465,000  

4.13%, 5/15/15

  488,686
     
Total U.S. Treasury Obligations
(Cost $3,170,114)
  3,247,654
     
Investment Company (1.6%)  
1,053,969  

Victory Federal Money Market Fund, Investor Shares,
3.10% (a)

  1,053,969
     
Total Investment Companies (Cost $1,053,969)   1,053,969
     
Total Investments (Cost $64,050,834)
(b)—98.7%
  65,721,836
Other assets in excess of liabilities—1.3%   897,974
     
Net Assets—100.0%   66,619,810
     

 

(a) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(b) Cost for federal income tax purposes is $64,050,834. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 1,774,382  

Unrealized depreciation

     (103,380 )
        

Net unrealized appreciation

   $ 1,671,002  
        

 

LLC—Limited Liability Co.

LP—Limited Partnership

MTN—Medium Term Note

PLC—Public Liability Co.

 

See accompanying notes to financial statements.

 

47


PACIFIC CAPITAL FUNDS

Tax-Free Short Intermediate Securities Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds (100.1%)  
Arizona (1.0%)  
500,000  

Vistancia Community Facilities District GO, 4.00%, 7/15/13

  484,045
     
Florida (1.7%)  
780,000  

Highlands County Florida Health Facilities, 5.00%, 11/15/11

  822,721
     
Guam (5.0%)  
860,000  

Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series A,
5.00% (a), 5/15/09

  890,040
1,350,000  

Guam Economic Development Authority, Capital Appreciation, Convertible CAB, Series B,
5.40% (a), 5/15/15

  1,532,020
     
      2,422,060
     
Hawaii (60.1%)  
2,000,000  

City & County of Honolulu, Hawaii Waste Water, 5.25%, 7/1/18, Callable 7/1/09 @ 101, FGIC

  2,093,340
610,000  

Hawaii Airport System Revenue, Second Series, AMT,
6.90%, 7/1/12, ETM, MBIA

  670,872
1,000,000  

Hawaii County GO, Series A,
5.38%, 5/15/13, Prerefunded 5/15/09 @ 101, FSA

  1,053,260
705,000  

Hawaii County GO, Series B,
5.00%, 7/15/09

  732,805
780,000  

Hawaii Pacific Health, Special Purpose Revenue, Department of Budget & Finance, Series B,
3.85% (a), 7/1/33, Ins: Radian

  780,000
1,000,000  

Hawaii State Airports System Revenue, Second Series, AMT, 6.90%, 7/1/12, ETM

  1,098,500
1,000,000  

Hawaii State GO, Series BW,
6.40%, 3/1/09, ETM, FSA-CR

  1,047,410
1,000,000  

Hawaii State GO, Series CN,
6.25%, 3/1/08, FGIC

  1,002,430
665,000  

Hawaii State GO, Series CP,
5.00%, 10/1/12, Callable
10/1/08 @ 100.50, FGIC

  672,940
1,000,000  

Hawaii State GO, Series CR,
5.25%, 4/1/13, Prerefunded
4/1/08 @ 101, MBIA

  1,015,100
1,000,000  

Hawaii State GO, Series CU,
5.75%, 10/1/10, MBIA

  1,084,840
1,250,000  

Hawaii State GO, Series CV,
5.50%, 8/1/08, FGIC

  1,270,375
1,000,000  

Hawaii State GO, Series CZ,
5.25%, 7/1/12, FSA

  1,107,410
3,700,000  

Hawaii State GO, Series DG,
5.00%, 7/1/09, AMBAC

  3,840,452
Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
Hawaii, continued  
1,000,000  

Hawaii State Harbor System Revenue, Series A,
4.50%, 7/1/08, AMBAC

  1,009,490
750,000  

Hawaii State Highway Revenue, 4.85%, 7/1/09, FSA

  778,297
1,055,000  

Hawaii State Housing & Community Development Revenue, Series A, 3.70%, 7/1/13, FSA

  1,059,600
800,000  

Honolulu City & County GO,
Series B, 5.25%, 10/1/12, ETM

  889,400
1,150,000  

Honolulu City & County Waste Water System Revenue,
5.00%, 7/1/09, FGIC

  1,192,837
1,000,000  

Honolulu City & County Waste Water System Revenue,
5.25%, 7/1/15, Callable
7/1/09 @ 101, FGIC

  1,046,670
2,000,000  

Honolulu Hawaii City & County GO, Series C, 5.13%, 7/1/11, Callable 7/1/09 @ 101, FGIC

  2,093,040
1,000,000  

Honolulu Hawaii City & County Multifamily Revenue, AMT, 6.30%, 11/20/20, Callable
5/20/10 @ 102

  1,052,410
1,000,000  

State of Hawaii GO, Series DG, 5.00%, 7/1/12, AMBAC

  1,090,560
1,090,000  

University of Hawaii System Revenue, Series A,
5.50%, 7/15/16, Prerefunded 7/15/12 @ 100, FGIC

  1,220,397
     
    28,902,435
     
Illinois (2.2%)  
1,000,000  

Illinois State GO,
5.25%, 8/1/10, MBIA

  1,068,460
     
Michigan (1.7%)  
750,000  

Michigan State Hospital Finance Authority Revenue,
5.50%, 11/1/12

  813,570
     
Minnesota (3.4%)  
1,500,000  

Minnesota State GO,
5.00%, 8/1/16, Callable
8/1/12 @ 100

  1,615,305
     
New Jersey (2.2%)  
1,000,000  

New Jersey State Certificate of Participation, 5.00%, 6/15/09

  1,037,450
     
New York (6.6%)  
1,000,000  

New York State Environmental Facilities Corp., Solid Waste Disposal Revenue, Series A, 4.45%, 7/1/17, Mandatory Put 7/1/09 @ 100

  1,017,020

 

See accompanying notes to financial statements.

 

48


PACIFIC CAPITAL FUNDS

Tax-Free Short Intermediate Securities Fund

 

Schedule of Portfolio Investments, continued

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
Municipal Bonds, continued  
New York, continued  
1,000,000  

New York State Thruway Authority Revenue, Highway & Bridge Trust Fund, Series B, 5.25%, 4/1/12, AMBAC

  1,096,680
1,000,000  

New York, New York GO, Series C, 4.25%, 1/1/12

  1,051,750
     
    3,165,450
     
Oklahoma (4.2%)  
625,000  

McClain County Oklahoma Economic Development Authority Educational Facilities Lease Revenue, Newcastle Public Schools Project, 5.00%, 9/1/10

  654,756
1,345,000  

Tulsa Oklahoma Industrial Authority Educational Facilities Revenue, Series B, 5.00%, 12/1/14,
Callable 12/1/08 @ 101

  1,378,760
     
      2,033,516
     
Pennsylvania (2.4%)  
1,030,000  

Philadelphia Water & Wastewater Revenue, Series B,
5.50%, 11/1/11, FGIC

  1,134,184
     
Puerto Rico (6.2%)  
1,200,000  

Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue, 6.25%, 7/1/13, MBIA

  1,361,196
Principal
Amount ($)
 

Security
Description

  Value ($)  
Municipal Bonds, continued  
Puerto Rico, continued  
500,000  

Puerto Rico Commonwealth Highway & Transportation Authority Revenue, Series D, 5.75%, 7/1/41, Prerefunded
7/1/12 @ 100

  562,265  
1,000,000  

University Puerto Rico University Revenue, Series P,
5.00%, 6/1/12

  1,062,110  
       
    2,985,571  
       
Tennessee (1.1%)  
480,000  

Sullivan County Tennessee Health Educational & Housing Facilities Board Revenue, Wellmont Health Systems Project, 6.25%, 9/1/32, Prerefunded 9/1/12 @ 101

  553,032  
       
Washington (2.3%)  
1,000,000  

Washington State Health Care Facilities Authority Revenue, Providence Health System, Series A, 5.63%, 10/1/14, Callable 10/1/11 @ 100, MBIA

  1,085,140  
       
Total Investments (Cost $46,969,028)
(b)—100.1%
  48,122,939  
Liabilities in excess of other assets—(0.1)%   (43,770 )
       
Net Assets—100.0%   48,079,169  
       

 

(a) Rate periodically changes. Rate disclosed is the daily yield on January 31, 2008.
(b) Cost for federal income tax purposes is $46,969,028. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 1,171,073  

Unrealized depreciation

     (17,162 )
        

Net unrealized appreciation

   $ 1,153,911  
        

 

AMBAC—Insured by American Municipal Bond Assurance Corp.

AMT—Subject to alternative minimum tax

CAB—Capital Appreciation Bond

ETM—Escrowed to Maturity

FGIC—Insured by Financial Guaranty Insurance Co.

FSA—Insured by Federal Security Assurance

FSA-CR—Insured by Federal Security Assurance Custodial Receipts

GO—General Obligation

MBIA—Insured by Municipal Bond Insurance Association

 

See accompanying notes to financial statements.

 

49


PACIFIC CAPITAL FUNDS

U.S. Government Short Fixed Income Fund

 

Schedule of Portfolio Investments

January 31, 2008

(Unaudited)

 

Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Government Agencies (87.4%)  
Federal Farm Credit Bank (4.7%)  
3,800,000  

5.20%, 8/16/11

  4,071,225
     
Federal Home Loan Bank (82.7%)  
2,191,000  

2.05% (a), 2/1/08

  2,190,878
10,000  

4.00%, 2/22/08

  9,997
1,500,000  

4.61%, 2/28/08

  1,500,095
1,000,000  

5.10%, 3/6/08

  1,000,711
1,185,000  

4.25%, 4/21/08

  1,188,483
3,875,000  

5.13%, 8/8/08

  3,921,764
5,850,000  

4.63%, 11/21/08

    5,940,617
8,000,000  

5.00%, 2/20/09,
Callable 2/8/10 @ 100

  8,198,880
2,625,000  

5.25%, 6/11/09,
Callable 6/11/08 @ 100

  2,650,066
3,825,000  

5.25%, 8/5/09

  3,972,722
1,825,000  

5.00%, 9/18/09

  1,893,731
7,865,000  

4.25%, 11/20/09

  8,082,223
4,000,000  

5.00%, 3/12/10

  4,185,868
2,500,000  

4.38%, 3/17/10

  2,586,225
4,650,000  

4.38%, 9/17/10

  4,826,528
1,985,000  

4.85%, 2/4/11

  2,089,570
4,000,000  

4.63%, 2/18/11

  4,187,172
Principal
Amount ($)
 

Security
Description

  Value ($)
U.S. Government Agencies, continued  
Federal Home Loan Bank, continued  
5,450,000  

5.25%, 6/10/11

  5,836,579
2,000,000  

5.60%, 6/28/11

  2,166,340
750,000  

5.38%, 8/19/11

  808,673
1,000,000  

4.88%, 11/18/11

  1,062,047
2,830,000  

4.00%, 12/30/11,
Callable 3/30/08 @ 100

  2,836,908
     
    71,136,077
     
Total U.S. Government Agencies
(Cost $72,693,096)
  75,207,302
     
U.S. Treasury Obligations (11.2%)  
U.S. Treasury Notes (11.2%)  
2,875,000  

3.25%, 8/15/08

  2,892,520
6,000,000  

3.13%, 9/15/08

  6,034,224
660,000  

4.13%, 8/31/12

  698,415
     
Total U.S. Treasury Obligations
(Cost $9,539,561)
  9,625,159
     
Total Investments (Cost $82,232,657)
(b)—98.6%
  84,832,461
Other assets in excess of liabilities—1.4%   1,196,903
     
Net Assets—100.0%   86,029,364
     

 

(a) Rate disclosed represents effective yield at purchase.
(b) Cost for federal income tax purposes is $82,232,657. Unrealized appreciation/depreciation on a tax basis is as follows:

 

Unrealized appreciation

   $ 2,599,926  

Unrealized depreciation

     (122 )
        

Net unrealized appreciation

   $ 2,599,804  
        

 

See accompanying notes to financial statements.

 

50


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements

January 31, 2008

(Unaudited)

 

1.   Organization

 

Pacific Capital Funds (the “Trust”) was organized on October 30, 1992 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company established as a Massachusetts business trust. The Trust currently consists of the following investment portfolios (collectively, the “Funds” and individually, a “Fund”): New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund, Value Fund, High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund. The Trust is authorized to issue an unlimited number of shares without par value in four classes of shares: Class A, Class B, Class C and Class Y. The sale of Class B Shares has been suspended since June 1, 2003 (except for reinvestment of dividends and exchanges of Class B Shares between Funds).

 

The assets of each Fund are segregated and a shareholder’s interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under distribution (12b-1) plans, voting rights on matters affecting a single class of shares, sales charges and exchange privileges. The Class A Shares of the New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund and Value Fund have a maximum sales charge on purchases of 5.25% of the purchase price; the Class A Shares of the High Grade Core Fixed Income Fund and Tax-Free Securities Fund have a maximum sales charge on purchases of 4.00% of the purchase price; and the Class A Shares of the High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund have a maximum sales charge on purchases of 2.25% of the purchase price. The Class B Shares have a contingent deferred sales charge (“CDSC”) of 5.00% as a percentage of the original purchase price or sale price (whichever is less) if redeemed before the sixth anniversary of purchase, declining from 5.00% within the first year to 0% after the sixth year. The Class C Shares have a CDSC of 1.00% as a percentage of the original purchase price or sales price (whichever is less) if redeemed within twelve months of purchase.

 

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust.

 

2.   Significant Accounting Policies

 

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

 

Securities Valuation:

 

Investments in securities, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which are valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available mean of the bid and asked quotations in the principal market in which such securities are normally traded. Investments in securities in which the principal market is not an exchange or an over-the-counter market are valued using an independent pricing service approved by the Board of Trustees (the “Board”). Such prices reflect fair values, which may be established through the use of electronic and matrix techniques. Short-term obligations that mature in 60 days or less are valued at amortized cost or original cost plus interest, which approximates fair value. Investments in open-end investment companies are valued at

 

51


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

their respective net asset values as reported by such companies. The differences between cost and fair values of investments are reflected as either unrealized appreciation or depreciation.

 

In cases where market prices for portfolio securities are not readily available, a Pricing Committee established and appointed by the Trust’s Board determines in good faith, subject to Trust procedures, the fair value of such portfolio securities. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net asset value is calculated, such securities may be valued at fair value in accordance with procedures adopted by the Board. In the event of an increase or decrease in the value of a designated benchmark index greater than predetermined levels, the New Asia Growth Fund and International Stock Fund may use a systematic valuation model provided by an independent third party to fair value their international equity securities.

 

Foreign Currency Transactions:

 

The accounting records of the Trust are maintained in U.S. dollars. Investment securities and other assets and liabilities of a Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions.

 

The Funds do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such changes are included with the net realized and unrealized gain or loss from investments and foreign currency transactions.

 

Reported net realized foreign currency exchange gains or losses arise from sales and maturities of portfolio securities, sales of foreign currencies, currency exchange fluctuations between the trade and settlement dates of securities transactions, and the differences between the amounts of assets and liabilities recorded and the U.S. dollar equivalents of the amounts actually received or paid. Net unrealized foreign currency appreciation or depreciation arises from changes in the values of assets and liabilities, including investments in securities, resulting from changes in currency exchange rates.

 

Foreign Currency Contracts:

 

The New Asia Growth Fund and International Stock Fund may enter into foreign currency exchange contracts to convert U.S. dollars to and from various foreign currencies. A foreign currency exchange contract is an obligation by a Fund to purchase or sell a specific foreign currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Funds do not engage in “cross-currency” foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Funds’ foreign currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. These Funds enter into foreign currency exchange contracts solely for spot or forward hedging purposes, and not for speculative purposes (i.e., the Funds do not enter into such contracts for the purpose of earning foreign currency gains). Each foreign currency exchange contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward foreign exchange currency contract or if the value of the foreign currency changes unfavorably.

 

52


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

Futures Contracts:

 

Each of the Funds (other than the U.S. Government Short Fixed Income Fund) may enter into contracts for the future delivery of specific securities, classes of securities, and financial indices; may purchase or sell exchange-listed or OTC options on any such futures contracts; and may engage in related closing transactions. A financial futures contract is an agreement to purchase or sell an agreed amount of securities or currency at a set price for delivery in the future. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. The acquisition of put and call options on futures contracts will, respectively, give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period.

 

The Small Cap Fund has entered into futures contracts for hedging purposes, such as to protect against anticipated declines in the fair value of its portfolio securities or to manage exposure to changing interest rates. The Fund receives from or pays to the broker, on a daily basis, an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Fund as unrealized gains or losses. When a futures contract closes, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

 

Restricted Securities:

 

A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”), or pursuant to the resale limitations provided by Rule 144A under the 1933 Act or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board. Not all restricted securities are considered illiquid. At January 31, 2008, the International Stock Fund held restricted securities representing 0.9% of net assets. The restricted securities held as of January 31, 2008 are identified below:

 

Issue Description

   Acquisition
Date
   Shares    Cost ($)    Value ($)
International Stock Fund:            

Evraz Group SA, GDR

   *    30,355    811,389    2,206,809

 

* Purchased on various dates beginning 4/25/06.

 

Security Transactions and Related Income:

 

During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the pro rata amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

 

Allocations:

 

Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis.

 

53


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

Income, expenses (other than expenses attributable to a specific share class) and realized/unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.

 

Distributions to Shareholders:

 

Dividends from net investment income are declared daily and paid monthly for the High Grade Core Fixed Income Fund, Tax-Free Securities Fund, High Grade Short Intermediate Fixed Income Fund, Tax-Free Short Intermediate Securities Fund and U.S. Government Short Fixed Income Fund. Dividends from net investment income are declared and paid quarterly for the New Asia Growth Fund, International Stock Fund, Small Cap Fund, Mid-Cap Fund, Growth Stock Fund, Growth and Income Fund and Value Fund. Distributable net realized capital gains, if any, are declared and distributed at least annually for all the Funds.

 

Redemption Fees:

 

The New Asia Growth Fund and International Stock Fund may impose a redemption fee of 2.00% on redemptions and exchanges of Fund shares within 30 days from the date the Fund shares were acquired. Prior to October 16, 2007, the fee could be assessed on redemptions and exchanges of Fund shares within 90 days from the date the Fund shares were acquired. For financial statement purposes, these amounts are included in the Statements of Changes in Net Assets in “Proceeds from Shares Issued”. Redemption fees collected for the Funds for the period ended January 31, 2008 and year ended July 31, 2007 were as follows:

 

     Period ended
01/31/08 ($)
   Year Ended
07/31/07 ($)

New Asia Growth Fund

   841    375

International Stock Fund

   2,342    813

 

New Accounting Pronouncement:

 

In September 2006, the Financial Accounting Standards Board issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurements. Management does not believe that the adoption of SFAS No. 157 will materially impact the Funds’ financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

 

54


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

3.   Purchases and Sales of Securities

 

Purchases and sales of securities (excluding securities maturing less than one year from acquisition and U.S. Government securities) for the period ended January 31, 2008 were as follows:

 

     Purchases ($)    Sales ($)

New Asia Growth Fund

   38,344,691    40,802,890

International Stock Fund

   66,734,865    64,874,382

Small Cap Fund

   314,800,166    408,418,824

Mid-Cap Fund

   50,290,052    47,085,422

Growth Stock Fund

   78,956,774    91,257,199

Growth and Income Fund

   44,106,816    52,779,402

Value Fund

   77,342,043    83,294,444

High Grade Core Fixed Income Fund

   44,807,115    34,573,340

Tax-Free Securities Fund

   34,033,116    51,089,223

High Grade Short Intermediate Fixed Income Fund

   4,298,455    1,246,743

Tax-Free Short Intermediate Securities Fund

   9,621,912    13,371,580

 

Purchases and sales of long-term U.S. Government securities for the period ended January 31, 2008 were as follows:

 

     Purchases ($)    Sales ($)

High Grade Core Fixed Income Fund

   62,178,446    95,513,573

High Grade Short Intermediate Fixed Income Fund

   17,653,978    20,340,077

U.S. Government Short Fixed Income Fund

   20,974,217    33,982,259

 

4.   Transactions with Affiliates

 

Investment advisory services are provided to the Trust by the Asset Management Group of Bank of Hawaii (the “Adviser”). Under terms of an advisory agreement, each Fund is charged an annual fee which is computed daily and paid monthly based upon average daily net assets. The Adviser may voluntarily waive a portion of its fees. Voluntary waivers may be terminated at any time. Fee rates for the period ended January 31, 2008 were as follows:

 

     Maximum Annual
Advisory Fee (%)
   Net Annual
Fees Paid (%)
 

New Asia Growth Fund

   0.40    0.40  

International Stock Fund

   0.45    0.35  

Small Cap Fund

   0.46    0.36 1

Mid-Cap Fund

   0.60    0.35  

Growth Stock Fund

   0.55    0.35  

Growth and Income Fund

   0.55    0.35  

Value Fund

   0.55    0.35  

High Grade Core Fixed Income Fund

   0.60    0.45  

Tax-Free Securities Fund

   0.60    0.45  

High Grade Short Intermediate Fixed Income Fund

   0.50    0.21  

Tax-Free Short Intermediate Securities Fund

   0.50    0.40  

U.S. Government Short Fixed Income Fund

   0.40    0.11  

 

  1 The Adviser has voluntarily agreed to waive a portion of its fees for the Small Cap Fund so that the total combined advisory and sub-advisory fees will not exceed 1.00%.

 

55


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

The following Funds have entered into Sub-Advisory contracts as listed below. Under the terms of each Sub-Advisory agreement, the Funds are charged the following annual fees by the Sub-Adviser based upon average daily net assets managed by the Sub-Adviser which are computed daily and paid quarterly:

 

   

Sub-Adviser

  

Annual Fees Paid

New Asia Growth Fund

  First State Investments International Limited    0.50%

International Stock Fund

  Hansberger Global Investors, Inc.    0.60% of the first $75 million; 0.35% in excess of $75 million

Small Cap Fund

  Mellon Capital Management Corp.    0.55% of the first $100 million; 0.50% on assets between $100 million and $200 million; 0.45% on assets in excess of $200 million1
 

Nicholas-Applegate Capital Management

  

0.70%2

  Wellington Management Company, LLP    0.70% of the first $150 million; 0.65% on assets in excess of $150 million3

Mid-Cap Fund

  Chicago Equity Partners, LLC    0.20%

Growth Stock Fund

  Chicago Equity Partners, LLC    0.25%

Growth and Income Fund

  Chicago Equity Partners, LLC    0.25%

Value Fund

  Chicago Equity Partners, LLC    0.25%

 

  1 On assets managed by Mellon Capital Management Corp. using a “small cap value” strategy. Prior to January 1, 2008, Mellon Equity Associates, LLP acted as Sub-Advisor to these assets and received the same fees as listed in the table.
  2 On assets managed by Nicholas-Applegate Capital Management using a “systematic small cap” strategy.
  3 On assets managed by Wellington Management Company, LLP using a “small cap growth” strategy.

 

Bank of Hawaii (the “Administrator”) acts as Administrator of the Trust and receives an annual fee of 0.04% of the average daily net assets of the Trust for this service.

 

Citi Fund Services Ohio, Inc. (“Citi”) serves the Trust as Sub-Administrator pursuant to an agreement among the Trust, the Administrator and Citi. Citi receives fees from the Trust at the annual rate of 0.05% of the average daily net assets of the Trust, subject to reduction if certain standards are not met, and $10,000 annually for providing additional regulatory services, plus out-of-pocket expenses.

 

In addition, Citi provides an employee to serve as Chief Compliance Officer for the Trust and performs certain related services. Citi receives a fee for this service and reimbursement for certain out-of-pocket expenses.

 

Citi also serves the Trust as Fund Accountant and Transfer Agent. Under the terms of the fund accounting and transfer agency agreements, Citi is entitled to receive fees, subject to reduction if certain standards are not met, and reimbursement for certain out-of-pocket expenses.

 

Foreside Distribution Services, L.P. (the “Distributor”) serves the Trust as principal underwriter and distributor. The Trust has adopted for the Class A, Class B and Class C Shares of each of the Funds the Class A Distribution Plan, Class B Distribution Plan and Class C Distribution Plan (the “Plans”) pursuant to Rule 12b-1 under the 1940 Act. Under the Plans,

 

56


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

each Fund pays the Distributor a fee which will not exceed on an annual basis, 0.40%, 1.00% and 1.00%, respectively, of the average daily net assets attributable to the Class A, Class B and Class C Shares of each Fund. The Distributor is contractually limiting the 12b-1 fee for Class A Shares to 0.25% through November 30, 2008. These fees are for payments the Distributor makes to banks, other institutions, and broker dealers, including the Administrator and its affiliates and for expenses the Distributor and any of its affiliates or subsidiaries incur for providing distribution or shareholder service assistance. The following table shows amounts received by the Distributor on commissions from sales and the amounts paid to affiliated broker dealers of the Funds during the period ended January 31, 2008:

 

     Received ($)    Paid to Affiliates ($)

Class A

   71,474    622

Class C

   51,782    157

 

Certain Officers and Trustees of the Trust are affiliated with the Administrator, the Adviser or Citi. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles. Each of the five Independent Trustees receives a fee for their services plus the reimbursement of certain expenses incurred.

 

The Adviser has entered into a reimbursement agreement with the Funds in which it agrees to reimburse the Funds for certain fees charged by various intermediaries. The intermediaries, such as broker-dealers, banks, retirement plan administrators or other institutions, make one or more Funds available to their customers in accordance with relevant Intermediary Agreements and provide certain recordkeeping, processing and/or administrative services. This agreement can be terminated by the Adviser with 60 days’ written notice. The reimbursements made by the Adviser may not be recouped in future periods.

 

5.   Risks

 

The New Asia Growth Fund, International Stock Fund and Small Cap Fund may invest in securities of foreign issuers in various countries. Investing on an international basis involves certain risks not involved in domestic investments, including fluctuations in foreign exchange rates, future adverse political and economic developments and the possible imposition of exchange controls or other foreign governmental laws or restrictions. In addition, with respect to certain foreign countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability, and/or diplomatic developments which could affect investments in those countries. Moreover, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rates of inflation, capital reinvestment, resources, self-sufficiency and balance of payments position. Certain foreign investments may also be subject to foreign withholding taxes.

 

The New Asia Growth Fund’s concentration of investments in securities of issuers located in the Far East Asia region may subject the Fund to the effects of economic and government policies within that region.

 

The Tax-Free Securities and Tax-Free Short Intermediate Securities Funds’ concentration of investments in securities of issuers located in Hawaii may subject each Fund to the effects of economic developments and government policies within Hawaii.

 

6.   Federal Income Tax Information

 

It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies as defined in applicable sections of the Internal Revenue Code, and to make distributions from net investment income and from net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Withholding taxes on foreign dividends have been paid or provided for in accordance with each applicable country’s tax rules and rates.

 

57


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., paydown reclasses and foreign currency transactions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending July 31, 2008.

 

The tax character of distributions paid during the year ended July 31, 2007 were as follows (amounts in thousands):

 

     Distributions Paid From    Total
Taxable
Distributions($)
   Return of
Capital
   Tax
Exempt
Distributions($)
   Total
Distributions
Paid($)*
     Ordinary
Income($)
   Net Long-Term
Capital Gains($)
           

New Asia Growth Fund

   2,322    7,883    10,205          10,205

International Stock Fund

   2,517    98    2,615          2,615

Small Cap Fund

   17,848    15,839    33,687          33,687

Mid-Cap Fund

   1,254    7,155    8,409          8,409

Growth Stock Fund

   217       217          217

Growth and Income Fund

   1,205    28    1,233          1,233

Value Fund

   2,637    19,141    21,778          21,778

High Grade Core Fixed Income Fund

   15,170       15,170    13       15,183

Tax-Free Securities Fund

   418    272    690       12,294    12,984

High Grade Short Intermediate Fixed Income Fund

   2,973       2,973          2,973

Tax-Free Short Intermediate Securities Fund

   122       122       1,893    2,015

U.S. Government Short Fixed Income Fund

   4,389       4,389          4,389
 
  * Total distributions paid differ from the Statements of Changes in Net Assets because, for tax purposes, dividends are recognized when actually paid.

 

The tax character of distributions paid during the year ended July 31, 2006 were as follows (amounts in thousands):

 

    Distributions Paid From   Total
Taxable
Distributions($)
  Tax
Exempt
Distributions($)
  Total
Distributions
Paid($)
    Net
Investment
Income($)
  Net
Long-Term
Capital Gains($)
     

New Asia Growth Fund

  653   2,618   3,271     3,271

International Stock Fund

  1,786     1,786     1,786

Small Cap Fund

  5,368   14,808   20,176     20,176

Mid-Cap Fund

  2,202   2,495   4,697     4,697

Growth Stock Fund

         

Growth and Income Fund

  801     801     801

Value Fund

  1,921     1,921     1,921

High Grade Core Fixed Income Fund

  12,913   46   12,959     12,959

Tax-Free Securities Fund

  283   3,961   4,244   12,703   16,947

High Grade Short Intermediate Fixed Income Fund

  2,795     2,795     2,795

Tax-Free Short Intermediate Securities Fund

  371     371   1,717   2,088

U.S. Government Short Fixed Income Fund

  4,091     4,091     4,091

 

 

58


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, continued

January 31, 2008

(Unaudited)

 

As of July 31, 2007, the components of accumulated earnings/(deficit) on a tax basis were as follows (amounts in thousands):

 

     Undistributed    Accumulated
Earnings($)
   Distributions
Payable($)
    Accumulated
Capital &
Other Losses($)
    Unrealized
Appreciation/
(Depreciation)($)**
    Total
Accumulated
Earnings/
(Deficit)($)
 
     Ordinary
Income($)
   Long-Term
Capital Gain($)
           

New Asia Growth Fund

   3,221    6,105    9,326        (15 )   36,528     45,839  

International Stock Fund

      12,692    12,692        (158 )   45,137     57,671  

Small Cap Fund

   33,241    39,837    73,078            (11,534 )   61,544  

Mid-Cap Fund

   1,841    5,803    7,644            3,539     11,183  

Growth Stock Fund

   16       16        (76,835 )   2,625     (74,194 )

Growth and Income Fund

      7,925    7,925            1,047     8,972  

Value Fund

   16,899    7,045    23,944            3,525     27,469  

High Grade Core Fixed Income Fund

            (41 )   (4,145 )   (412 )   (4,598 )

High Grade Short Intermediate Fixed Income Fund

   1       1    (8 )   (2,298 )   (168 )   (2,473 )

U.S. Government Short Fixed Income Fund

   11       11    (11 )   (2,865 )   80     (2,785 )

 

    Undistributed   Accumulated
Earnings($)
  Distributions
Payable($)
    Accumulated
Capital &
Other Losses($)
    Unrealized
Appreciation/
(Depreciation)($)**
  Total
Accumulated
Earnings/
(Deficit)($)
 
    Tax-Exempt
Income($)
  Ordinary
Income($)
  Long-Term
Capital Gain($)
         

Tax-Free Securities Fund

  36   92   189   317   (36 )       11,281   11,562  

Tax-Free Short Intermediate Securities Fund

  6       6   (5 )   (763 )   52   (710 )
 
  ** The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies and return of capital adjustments.

 

As of the latest tax year end of July 31, 2007, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.

 

     Expires
     2011 ($)    2012 ($)    2013 ($)    2014 ($)    2015 ($)

Growth Stock Fund

   76,835,141            

High Grade Core Fixed Income Fund

            95,740    4,049,578

High Grade Short Intermediate Fixed Income Fund

         55,178    605,203    1,571,661

Tax-Free Short Intermediate Securities Fund

         14,258    18,908    657,223

U.S. Government Short Fixed Income Fund

      32,741    1,268,106    889,880    668,108

 

59


PACIFIC CAPITAL FUNDS

 

Notes to Financial Statements, concluded

January 31, 2008

(Unaudited)

 

During the year ended July 31, 2007, the International Stock Fund, Growth Stock Fund and Growth and Income Fund utilized $12,145, $13,688 and $11,592 in capital loss carryforwards (in thousands), respectively.

 

Under current tax law, capital and foreign currency losses realized after October 31 may be deferred and treated as occurring on the first business day of the following fiscal year. The following Funds have deferred losses, which will be treated as arising on the first day of the fiscal year to end July 31, 2008:

 

     Post October
Capital Losses ($)
   Post October
Foreign Currency
Losses ($)

New Asia Growth Fund

      14,802

High Grade Core Fixed Income Fund

      157,511

High Grade Short Intermediate Fixed Income Fund

   65,889   

Tax-Free Short Intermediate Securities Fund

   72,563   

U.S. Government Short Fixed Income Fund

   6,638   

 

As required, effective November 30, 2007, the Funds adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether it is more-likely-than-not (i.e. greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-than-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities. The adoption of FIN 48 did not impact the Funds’ net assets or results of operations.

 

7.   Legal and Regulatory Matters

 

Management of the Funds has reported to the Funds’ Board of Trustees (the “Board”) that, like many U.S. financial services companies, the Funds and certain of its affiliates have from time to time received formal requests for information from various governmental and self-regulatory agencies in connection with investigations related to mutual funds. Management has advised the Board that the Funds and their affiliates have cooperated fully with each request.

 

Citi Fund Services, Inc., certain affiliates of which provide various services to the Trust as described in footnote 4, has reached a settlement with the SEC regarding the SEC’s investigation related to its past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Fund management has not determined the degree, if any, to which the Funds are affected by the settlement. Based on management’s review and consideration of the matter to date, management does not believe the Funds’ financial statements would be adversely impacted as a result of this investigation.

 

60


 

PACIFIC CAPITAL FUNDS

New Asia Growth Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
(Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 22.06   $ 0.07     $ 1.47     $ 1.54     $ (0.11 )   $ (3.70 )   $ (3.81 )   $ 19.79   5.89 %   $ 4,780   1.57 %   0.47 %   1.72 %   31.14 %

Year Ended July 31, 2007

    16.84     0.22       7.05       7.27       (0.22 )     (1.83 )     (2.05 )     22.06   46.07       3,207   1.62     1.14     1.77     37.50  

Year Ended July 31, 2006

    15.52     0.10       2.12       2.22       (0.10 )     (0.80 )     (0.90 )     16.84   15.00       2,157   1.76     0.64     2.08     44.10  

Year Ended July 31, 2005

    11.46     0.11 (f)     4.07 (f)     4.18       (0.12 )           (0.12 )     15.52   36.68       1,770   1.96     0.84     2.48     44.06  

Year Ended July 31, 2004

    9.77     0.08       1.68       1.76       (0.07 )           (0.07 )     11.46   17.94       1,386   1.88     0.52     2.39     78.13  

Year Ended July 31, 2003

    9.83     0.02       (0.07 )     (0.05 )     (0.01 )           (0.01 )     9.77   (0.47 )     1,264   2.10     0.22     2.61     110.44  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 20.99   $ (0.01 )   $ 1.41     $ 1.40     $ (0.06 )   $ (3.70 )   $ (3.76 )   $ 18.63   5.51 %   $ 574   2.32 %   (0.20 %)   2.32 %   31.14 %

Year Ended July 31, 2007

    16.13     0.06       6.73       6.79       (0.10 )     (1.83 )     (1.93 )     20.99   44.97       679   2.37     0.35     2.37     37.50  

Year Ended July 31, 2006

    14.97           2.01       2.01       (0.05 )     (0.80 )     (0.85 )     16.13   14.05       639   2.51     (0.04 )   2.57     44.10  

Year Ended July 31, 2005

    11.09     0.01 (f)     3.93 (f)     3.94       (0.06 )           (0.06 )     14.97   35.66       446   2.71     0.09     2.73     44.06  

Year Ended July 31, 2004

    9.48     (0.02 )     1.65       1.63       (0.02 )           (0.02 )     11.09   17.18       369   2.64     (0.23 )   2.65     78.13  

Year Ended July 31, 2003

    9.60     (0.04 )     (0.08 )     (0.12 )                       9.48   (1.25 )     424   2.85     (0.51 )   2.86     110.44  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 20.97   $ (0.02 )   $ 1.41     $ 1.39     $ (0.06 )   $ (3.70 )   $ (3.76 )   $ 18.60   5.48 %   $ 689   2.32 %   (0.28 %)   2.32 %   31.14 %

Year Ended July 31, 2007

    16.12     0.07       6.72       6.79       (0.11 )     (1.83 )     (1.94 )     20.97   44.96       580   2.37     0.37     2.37     37.50  

Year Ended July 31, 2006

    14.96     (0.01 )     2.02       2.01       (0.05 )     (0.80 )     (0.85 )     16.12   14.08       413   2.51     (0.10 )   2.57     44.10  

Year Ended July 31, 2005

    11.09     0.04 (f)     3.91 (f)     3.95       (0.08 )           (0.08 )     14.96   35.73       272   2.70     0.27     2.74     44.06  

Period Ended July 31, 2004*

    11.98     (0.01 )     (0.88 )     (0.89 )                       11.09   (7.43 )     9   2.53     (0.66 )   2.53     78.13  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 22.39   $ 0.09     $ 1.50     $ 1.59     $ (0.14 )   $ (3.70 )   $ (3.84 )   $ 20.14   5.99 %   $ 115,907   1.32 %   0.76 %   1.32 %   31.14 %

Year Ended July 31, 2007

    17.07     0.26       7.15       7.41       (0.26 )     (1.83 )     (2.09 )     22.39   46.36       113,393   1.37     1.38     1.37     37.50  

Year Ended July 31, 2006

    15.72     0.14       2.15       2.29       (0.14 )     (0.80 )     (0.94 )     17.07   15.26       85,836   1.51     0.98     1.57     44.10  

Year Ended July 31, 2005

    11.60     0.15 (f)     4.13 (f)     4.28       (0.16 )           (0.16 )     15.72   37.07       44,092   1.71     1.13     1.73     44.06  

Year Ended July 31, 2004

    9.89     0.11       1.70       1.81       (0.10 )           (0.10 )     11.60   18.21       29,827   1.63     0.80     1.64     78.13  

Year Ended July 31, 2003

    9.93     0.05       (0.06 )     (0.01 )     (0.03 )           (0.03 )     9.89   (0.13 )     23,937   1.85     0.59     1.86     110.44  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Amounts calculated using the daily average shares method.

 

See notes to financial statements.

 

61


 

PACIFIC CAPITAL FUNDS

International Stock Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
(Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 13.57   $ (f)   $ (0.48 )   $ (0.48 )   $ (0.02 )   $ (0.88 )   $ (0.90 )   $ 12.19   (4.06 %)   $ 1,611   1.33 %   0.09 %   1.58 %   25.15 %

Year Ended July 31, 2007

    10.81     0.11       2.77       2.88       (0.12 )           (0.12 )     13.57   26.68       1,221   1.35     0.86     1.60     47.50  

Year Ended July 31, 2006

    8.95     0.07       1.87       1.94       (0.08 )           (0.08 )     10.81   21.65       999   1.48     0.68     1.90     46.18  

Year Ended July 31, 2005

    7.41     0.05 (g)     1.52 (g)     1.57       (0.03 )           (0.03 )     8.95   21.17       949   1.73     0.60     2.35     37.98  

Year Ended July 31, 2004

    6.46     (0.01 )     0.96       0.95                         7.41   14.71       884   1.78     (0.05 )   2.38     237.06  

Year Ended July 31, 2003

    6.37     0.03       0.06       0.09                         6.46   1.41       874   1.84     0.43     2.44     178.04  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 12.87   $ (0.04 )   $ (0.46 )   $ (0.50 )   $ (f)   $ (0.88 )   $ (0.88 )   $ 11.49   (4.45 %)   $ 508   2.08 %   (0.53 %)   2.18 %   25.15 %

Year Ended July 31, 2007

    10.27     (0.01 )     2.65       2.64       (0.04 )           (0.04 )     12.87   25.72       671   2.10     0.03     2.20     47.50  

Year Ended July 31, 2006

    8.54     (0.01 )     1.77       1.76       (0.03 )           (0.03 )     10.27   20.63       673   2.23     (0.06 )   2.39     46.18  

Year Ended July 31, 2005

    7.10     (0.01 )(g)     1.46 (g)     1.45       (0.01 )           (0.01 )     8.54   20.43       649   2.48     (0.16 )   2.60     37.98  

Year Ended July 31, 2004

    6.24     (0.05 )     0.91       0.86                         7.10   13.78       608   2.53     (0.80 )   2.63     237.06  

Year Ended July 31, 2003

    6.18     (0.03 )     0.09       0.06                         6.24   0.97       536   2.59     (0.36 )   2.69     178.04  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 12.85   $ (0.04 )   $ (0.46 )   $ (0.50 )   $ (f)   $ (0.88 )   $ (0.88 )   $ 11.47   (4.45 %)   $ 561   2.08 %   (0.54 %)   2.18 %   25.15 %

Year Ended July 31, 2007

    10.27     (f)     2.62       2.62       (0.04 )           (0.04 )     12.85   25.53       600   2.10     0.06     2.20     47.50  

Year Ended July 31, 2006

    8.53     (0.01 )     1.78       1.77       (0.03 )           (0.03 )     10.27   20.78       601   2.23     (0.04 )   2.39     46.18  

Year Ended July 31, 2005

    7.10     0.05 (g)     1.39 (g)     1.44       (0.01 )           (0.01 )     8.53   20.30       494   2.42     0.57     2.55     37.98  

Period Ended July 31, 2004*

    7.48     (0.01 )     (0.37 )     (0.38 )                       7.10   (5.08 )     9   2.60     (0.45 )   2.71     237.06  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 13.84   $ 0.02     $ (0.50 )   $ (0.48 )   $ (0.03 )   $ (0.88 )   $ (0.91 )   $ 12.45   (3.96 %)   $ 236,215   1.08 %   0.46 %   1.18 %   25.15 %

Year Ended July 31, 2007

    11.03     0.13       2.83       2.96       (0.15 )           (0.15 )     13.84   26.90       246,057   1.10     1.07     1.20     47.50  

Year Ended July 31, 2006

    9.13     0.09       1.91       2.00       (0.10 )           (0.10 )     11.03   21.90       209,795   1.23     1.15     1.39     46.18  

Year Ended July 31, 2005

    7.55     0.08 (g)     1.55 (g)     1.63       (0.05 )           (0.05 )     9.13   21.61       93,049   1.47     0.97     1.59     37.98  

Year Ended July 31, 2004

    6.57     0.01       0.97       0.98                         7.55   14.92       59,165   1.53     0.20     1.63     237.06  

Year Ended July 31, 2003

    6.44     0.05       0.08       0.13                         6.57   2.02       60,558   1.59     0.74     1.69     178.04  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Less than $0.005 per share.
(g) Amounts calculated using the daily average shares method.

 

See notes to financial statements.

 

62


 

PACIFIC CAPITAL FUNDS

Small Cap Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
(Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 18.29   $ (0.06 )(f)   $ (1.83 )   $ (1.89 )   $     $ (2.91 )   $ (2.91 )   $ 13.49   (11.80 %)   $ 164,471   1.58 %   (0.64 %)   1.83 %   65.55 %

Year Ended July 31, 2007

    17.67     (0.06 )(f)     2.09 (f)     2.03             (1.41 )     (1.41 )     18.29   11.39       228,985   1.57     (0.31 )   1.82     164.61  

Year Ended July 31, 2006

    18.10     (0.07 )(f)     0.93 (f)     0.86             (1.29 )     (1.29 )     17.67   4.97       215,270   1.62     (0.40 )   2.02     110.61  

Year Ended July 31, 2005

    16.52     (0.08 )(f)     4.39 (f)     4.31             (2.73 )     (2.73 )     18.10   27.98       103,700   1.63     (0.49 )   2.26     67.75  

Year Ended July 31, 2004

    13.24     (0.02 )     3.64       3.62             (0.34 )     (0.34 )     16.52   27.53       10,625   1.55     (0.37 )   2.15     90.26  

Year Ended July 31, 2003

    12.15     (0.01 )     2.59       2.58       (0.02 )     (1.47 )     (1.49 )     13.24   24.62       1,595   1.60     (0.08 )   2.20     105.27  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 16.99   $ (0.11 )(f)   $ (1.68 )   $ (1.79 )   $     $ (2.91 )   $ (2.91 )   $ 12.29   (12.12 %)   $ 1,825   2.33 %   (1.39 %)   2.43 %   65.55 %

Year Ended July 31, 2007

    16.62     (0.19 )(f)     1.97 (f)     1.78             (1.41 )     (1.41 )     16.99   10.57       2,510   2.32     (1.06 )   2.42     164.61  

Year Ended July 31, 2006

    17.22     (0.19 )(f)     0.88 (f)     0.69             (1.29 )     (1.29 )     16.62   4.14       3,093   2.37     (1.11 )   2.53     110.61  

Year Ended July 31, 2005

    15.94     (0.21 )     4.22       4.01             (2.73 )     (2.73 )     17.22   27.09       3,555   2.35     (1.29 )   2.46     67.75  

Year Ended July 31, 2004

    12.89     (0.17 )     3.56       3.39             (0.34 )     (0.34 )     15.94   26.48       3,099   2.29     (1.12 )   2.39     90.26  

Year Ended July 31, 2003

    11.92     (0.08 )     2.52       2.44             (1.47 )     (1.47 )     12.89   23.74       2,476   2.35     (0.83 )   2.45     105.27  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 17.00   $ (0.11 )(f)   $ (1.68 )   $ (1.79 )   $     $ (2.91 )   $ (2.91 )   $ 12.30   (12.12 %)   $ 21,007   2.33 %   (1.39 %)   2.43 %   65.55 %

Year Ended July 31, 2007

    16.63     (0.19 )(f)     1.97 (f)     1.78             (1.41 )     (1.41 )     17.00   10.56       24,083   2.32     (1.05 )   2.42     164.61  

Year Ended July 31, 2006

    17.23     (0.20 )(f)     0.89 (f)     0.69             (1.29 )     (1.29 )     16.63   4.19       14,908   2.37     (1.15 )   2.53     110.61  

Year Ended July 31, 2005

    15.95     (0.21 )(f)     4.22 (f)     4.01             (2.73 )     (2.73 )     17.23   27.00       5,832   2.40     (1.33 )   2.54     67.75  

Period Ended July 31, 2004*

    15.84     (0.03 )     0.14       0.11                         15.95   0.69       46   2.32     (1.27 )   2.42     90.26  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 18.61   $ (0.03 )(f)   $ (1.88 )   $ (1.91 )   $     $ (2.91 )   $ (2.91 )   $ 13.79   (11.70 %)   $ 200,859   1.33 %   (0.39 %)   1.43 %   65.55 %

Year Ended July 31, 2007

    17.92     (0.01 )(f)     2.11 (f)     2.10             (1.41 )     (1.41 )     18.61   11.64       280,870   1.32     (0.04 )   1.42     164.61  

Year Ended July 31, 2006

    18.29     (0.03 )(f)     0.95 (f)     0.92             (1.29 )     (1.29 )     17.92   5.26       197,701   1.37     (0.14 )   1.53     110.61  

Year Ended July 31, 2005

    16.63     (0.05 )     4.44       4.39             (2.73 )     (2.73 )     18.29   28.30       125,299   1.35     (0.29 )   1.46     67.75  

Year Ended July 31, 2004

    13.30     (0.02 )     3.69       3.67             (0.34 )     (0.34 )     16.63   27.78       117,641   1.29     (0.12 )   1.39     90.26  

Year Ended July 31, 2003

    12.18     0.03       2.60       2.63       (0.04 )     (1.47 )     (1.51 )     13.30   24.96       85,520   1.35     0.19     1.45     105.27  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Amounts calculated using the daily average shares method.

 

See notes to financial statements.

 

63


 

PACIFIC CAPITAL FUNDS

Mid-Cap Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income (Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income (Loss) to
Average Net
Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 12.17   $ 0.01     $ (1.35 )   $ (1.34 )   $ (0.01 )   $ (1.24 )   $ (1.25 )   $ 9.58   (11.72 %)   $ 589   1.14 %   0.23 %   1.54 %   66.46 %

Year Ended July 31, 2007

    12.21     0.05       1.76       1.81       (0.05 )     (1.80 )     (1.85 )     12.17   15.63       693   1.07     0.44     1.60     117.44  

Year Ended July 31, 2006

    12.75     0.01       0.22       0.23       (0.02 )     (0.75 )     (0.77 )     12.21   1.78       886   1.05     0.10     1.69     101.34  

Year Ended July 31, 2005

    10.33     0.03       2.42       2.45       (0.03 )           (0.03 )     12.75   23.69       760   1.05     0.25     1.95     97.23  

Period Ended July 31, 2004*

    10.00     0.02       0.33       0.35       (0.02 )           (0.02 )     10.33   3.50       186   1.05     0.34     2.08     47.75  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 11.93   $ (0.03 )   $ (1.32 )   $ (1.35 )   $     $ (1.24 )   $ (1.24 )   $ 9.34   (12.06 %)   $ 425   1.89 %   (0.51 %)   2.14 %   66.46 %

Year Ended July 31, 2007

    12.07     (0.05 )     1.74       1.69       (0.03 )     (1.80 )     (1.83 )     11.93   14.73       482   1.82     (0.29 )   2.20     117.44  

Year Ended July 31, 2006

    12.68     (0.08 )     0.22       0.14             (0.75 )     (0.75 )     12.07   1.07       547   1.80     (0.64 )   2.18     101.34  

Year Ended July 31, 2005

    10.32     (0.03 )     2.39       2.36                         12.68   22.87       509   1.80     (0.50 )   2.21     97.23  

Period Ended July 31, 2004**

    10.23     (0.01 )     0.10       0.09                         10.32   0.88       10   1.80     (0.52 )   2.35     47.75  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 12.19   $ 0.03     $ (1.35 )   $ (1.32 )   $ (0.03 )   $ (1.24 )   $ (1.27 )   $ 9.60   (11.59 %)   $ 63,797   0.89 %   0.48 %   1.14 %   66.46 %

Year Ended July 31, 2007

    12.23     0.08       1.76       1.84       (0.08 )     (1.80 )     (1.88 )     12.19   15.87       70,422   0.82     0.65     1.20     117.44  

Year Ended July 31, 2006

    12.76     0.04       0.22       0.26       (0.04 )     (0.75 )     (0.79 )     12.23   2.06       73,195   0.80     0.35     1.18     101.34  

Year Ended July 31, 2005

    10.34     0.05       2.42       2.47       (0.05 )           (0.05 )     12.76   23.92       83,141   0.80     0.47     1.19     97.23  

Year Ended July 31, 2004*

    10.00     0.03       0.34       0.37       (0.03 )           (0.03 )     10.34   3.69       30,689   0.80     0.60     1.35     47.75  

 

* For the period from December 30, 2003 (commencement of operations) to July 31, 2004.
** For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

 

See notes to financial statements.

 

64


 

PACIFIC CAPITAL FUNDS

Growth Stock Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
(Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
  Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 9.53   $ 0.02     $ (0.47 )   $ (0.45 )   $ (0.02 )   $   $ (0.02 )   $ 9.06   (4.68 %)   $ 7,371   1.15 %   0.41 %   1.50 %   47.51 %

Year Ended July 31, 2007

    8.40     (0.01 )     1.14       1.13       (f)         (f)     9.53   13.49       7,957   1.34     (0.03 )   1.51     192.57  

Year Ended July 31, 2006

    8.67     (0.02 )(g)     (0.25 )(g)     (0.27 )                     8.40   (3.11 )     7,979   1.39     (0.28 )   1.73     191.06  

Year Ended July 31, 2005

    7.87           0.81       0.81       (0.01 )         (0.01 )     8.67   10.29       9,997   1.40     (0.06 )   1.91     174.37 (h)

Year Ended July 31, 2004

    7.60     (0.05 )     0.32       0.27                       7.87   3.55       10,875   1.35     (0.56 )   1.85     60.70  

Year Ended July 31, 2003

    6.90     (0.04 )     0.74       0.70                       7.60   10.14       11,231   1.35     (0.58 )   1.85     33.11  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 8.81   $ (0.02 )   $ (0.43 )   $ (0.45 )   $ (0.01 )   $   $ (0.01 )   $ 8.35   (5.10 %)   $ 4,293   1.90 %   (0.32 %)   2.10 %   47.51 %

Year Ended July 31, 2007

    7.82     (0.09 )     1.08       0.99       (f)         (f)     8.81   12.69       5,956   2.09     (0.78 )   2.11     192.57  

Year Ended July 31, 2006

    8.14     (0.08 )(g)     (0.24 )(g)     (0.32 )                     7.82   (3.93 )     8,898   2.14     (1.03 )   2.20     191.06  

Year Ended July 31, 2005

    7.43     (0.07 )     0.78       0.71                       8.14   9.56       12,127   2.15     (0.82 )   2.16     174.37 (h)

Year Ended July 31, 2004

    7.23     (0.11 )     0.31       0.20                       7.43   2.77       12,804   2.10     (1.31 )   2.10     60.70  

Year Ended July 31, 2003

    6.62     (0.09 )     0.70       0.61                       7.23   9.21       13,630   2.10     (1.33 )   2.10     33.11  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 8.80   $ (0.02 )   $ (0.42 )   $ (0.44 )   $ (0.01 )   $   $ (0.01 )   $ 8.35   (4.99 %)   $ 1,602   1.90 %   (0.34 %)   2.10 %   47.51 %

Year Ended July 31, 2007

    7.82     (0.08 )     1.06       0.98       (f)         (f)     8.80   12.55       1,851   2.09     (0.78 )   2.11     192.57  

Year Ended July 31, 2006

    8.13     (0.08 )(g)     (0.23 )(g)     (0.31 )                     7.82   (3.81 )     1,926   2.14     (1.03 )   2.20     191.06  

Year Ended July 31, 2005

    7.43     (0.05 )     0.76       0.71       (0.01 )         (0.01 )     8.13   9.59       1,987   2.15     (1.15 )   2.18     174.37 (h)

Period Ended July 31, 2004*

    7.69     (0.02 )     (0.24 )     (0.26 )                     7.43   (3.38 )     11   2.13     (1.24 )   2.13     60.70  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 9.84   $ 0.03     $ (0.48 )   $ (0.45 )   $ (0.03 )   $   $ (0.03 )   $ 9.36   (4.55 %)   $ 137,950   0.90 %   0.66 %   1.10 %   47.51 %

Year Ended July 31, 2007

    8.66     0.02       1.17       1.19       (0.01 )         (0.01 )     9.84   13.78       153,583   1.09     0.22     1.11     192.57  

Year Ended July 31, 2006

    8.92     (g)     (0.26 )(g)     (0.26 )                     8.66   (2.91 )     144,801   1.14     (0.03 )   1.20     191.06  

Year Ended July 31, 2005

    8.09     0.02       0.83       0.85       (0.02 )         (0.02 )     8.92   10.50       218,750   1.15     0.19     1.16     174.37 (h)

Year Ended July 31, 2004

    7.79     (0.03 )     0.33       0.30                       8.09   3.85       237,799   1.10     (0.31 )   1.10     60.70  

Year Ended July 31, 2003

    7.06     (0.02 )     0.75       0.73                       7.79   10.34       251,310   1.10     (0.33 )   1.10     33.11  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Less than $0.005 per share.
(g) Amounts calculated using the daily average shares method.
(h) The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed.

 

See notes to financial statements.

 

65


 

PACIFIC CAPITAL FUNDS

Growth and Income Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
(Loss)
    Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 14.58   $ 0.06     $ (0.74 )   $ (0.68 )   $ (0.06 )   $ (0.79 )   $ (0.85 )   $ 13.05   (5.10 %)   $ 5,224   1.14 %   0.81 %   1.49 %   29.28 %

Year Ended July 31, 2007

    13.32     0.07       1.27       1.34       (0.08 )           (0.08 )     14.58   10.06       6,022   1.31     0.51     1.48     170.64  

Year Ended July 31, 2006

    13.32     0.04             0.04       (0.04 )           (0.04 )     13.32   0.28       5,519   1.38     0.29     1.71     170.39  

Year Ended July 31, 2005

    11.65     0.06       1.67       1.73       (0.06 )           (0.06 )     13.32   14.83       5,554   1.42     0.42     1.94     181.04 (f)

Year Ended July 31, 2004

    10.69     0.01       0.96       0.97       (0.01 )           (0.01 )     11.65   9.11       5,539   1.38     0.12     1.88     48.46  

Year Ended July 31, 2003

    9.89     0.02       0.80       0.82       (0.02 )           (0.02 )     10.69   8.31       5,548   1.37     0.24     1.87     46.92  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 13.66   $ (g)   $ (0.69 )   $ (0.69 )   $ (0.01 )   $ (0.79 )   $ (0.80 )   $ 12.17   (5.47 %)   $ 2,238   1.89 %   0.06 %   2.09 %   29.28 %

Year Ended July 31, 2007

    12.51     (0.04 )     1.20       1.16       (0.01 )           (0.01 )     13.66   9.24       3,141   2.06     (0.20 )   2.08     170.64  

Year Ended July 31, 2006

    12.57     (0.07 )     0.01       (0.06 )                       12.51   (0.48 )     5,330   2.13     (0.44 )   2.19     170.39  

Year Ended July 31, 2005

    11.06     (0.04 )     1.58       1.54       (0.03 )           (0.03 )     12.57   13.93       7,193   2.17     (0.33 )   2.19     181.04 (f)

Year Ended July 31, 2004

    10.21     (0.07 )     0.92       0.85                         11.06   8.33       7,509   2.13     (0.63 )   2.13     48.46  

Year Ended July 31, 2003

    9.50     (0.05 )     0.76       0.71                         10.21   7.47       7,507   2.12     (0.51 )   2.12     46.92  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 13.65   $ (g)   $ (0.70 )   $ (0.70 )   $ (0.01 )   $ (0.79 )   $ (0.80 )   $ 12.15   (5.55 %)   $ 1,689   1.89 %   0.06 %   2.09 %   29.28 %

Year Ended July 31, 2007

    12.50     (0.03 )     1.19       1.16       (0.01 )           (0.01 )     13.65   9.25       1,774   2.06     (0.23 )   2.08     170.64  

Year Ended July 31, 2006

    12.56     (0.06 )           (0.06 )                       12.50   (0.48 )     1,913   2.13     (0.45 )   2.19     170.39  

Year Ended July 31, 2005

    11.06     (0.02 )     1.57       1.55       (0.05 )           (0.05 )     12.56   14.00       1,911   2.17     (0.74 )   2.20     181.04 (f)

Period Ended July 31, 2004*

    11.17     (0.02 )     (0.09 )     (0.11 )                       11.06   (0.98 )     10   2.17     (0.78 )   2.17     48.46  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 14.70   $ 0.07     $ (0.76 )   $ (0.69 )   $ (0.07 )   $ (0.79 )   $ (0.86 )   $ 13.15   (5.08 %)   $ 129,962   0.89 %   1.05 %   1.09 %   29.28 %

Year Ended July 31, 2007

    13.42     0.12       1.28       1.40       (0.12 )           (0.12 )     14.70   10.39       144,123   1.06     0.77     1.08     170.64  

Year Ended July 31, 2006

    13.42     0.07             0.07       (0.07 )           (0.07 )     13.42   0.52       152,521   1.13     0.54     1.19     170.39  

Year Ended July 31, 2005

    11.73     0.09       1.68       1.77       (0.08 )           (0.08 )     13.42   15.12       136,311   1.17     0.67     1.19     181.04 (f)

Year Ended July 31, 2004

    10.76     0.05       0.96       1.01       (0.04 )           (0.04 )     11.73   9.39       127,883   1.13     0.38     1.13     48.46  

Year Ended July 31, 2003

    9.96     0.04       0.80       0.84       (0.04 )           (0.04 )     10.76   8.52       138,027   1.12     0.49     1.12     46.92  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed.
(g) Less than $0.005 per share.

 

See notes to financial statements.

 

66


 

PACIFIC CAPITAL FUNDS

Value Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.55   $ 0.06   $ (0.68 )   $ (0.62 )   $ (0.06 )   $ (1.75 )   $ (1.81 )   $ 8.12   (6.69 %)   $ 2,298   1.13 %   1.30 %   1.48 %   53.90 %

Year Ended July 31, 2007

    10.69     0.12     1.15       1.27       (0.12 )     (1.29 )     (1.41 )     10.55   12.10       2,962   1.28     1.05     1.45     183.84  

Year Ended July 31, 2006

    9.87     0.09     0.83       0.92       (0.10 )           (0.10 )     10.69   9.39       2,991   1.34     0.91     1.67     141.07  

Year Ended July 31, 2005

    8.37     0.08     1.50       1.58       (0.08 )           (0.08 )     9.87   18.75       2,910   1.36     0.78     1.87     129.24 (f)

Year Ended July 31, 2004

    7.37     0.06     1.00       1.06       (0.06 )           (0.06 )     8.37   14.52       2,477   1.33     0.63     1.83     73.48  

Year Ended July 31, 2003

    7.02     0.07     0.35       0.42       (0.07 )           (0.07 )     7.37   6.07       2,146   1.32     1.05     1.82     77.62  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.34   $ 0.03   $ (0.67 )   $ (0.64 )   $ (0.03 )   $ (1.75 )   $ (1.78 )   $ 7.92   (7.11 %)   $ 830   1.88 %   0.54 %   2.08 %   53.90 %

Year Ended July 31, 2007

    10.51     0.03     1.13       1.16       (0.04 )     (1.29 )     (1.33 )     10.34   11.24       1,102   2.03     0.32     2.05     183.84  

Year Ended July 31, 2006

    9.70     0.02     0.81       0.83       (0.02 )           (0.02 )     10.51   8.57       1,433   2.09     0.17     2.15     141.07  

Year Ended July 31, 2005

    8.25         1.48       1.48       (0.03 )           (0.03 )     9.70   18.00       1,460   2.11     0.04     2.12     129.24 (f)

Year Ended July 31, 2004

    7.27         0.99       0.99       (0.01 )           (0.01 )     8.25   13.55       1,349   2.08     (0.11 )   2.08     73.48  

Year Ended July 31, 2003

    6.93     0.02     0.34       0.36       (0.02 )           (0.02 )     7.27   5.22       1,291   2.07     0.31     2.07     77.62  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.37   $ 0.03   $ (0.67 )   $ (0.64 )   $ (0.03 )   $ (1.75 )   $ (1.78 )   $ 7.95   (7.05 %)   $ 1,719   1.88 %   0.54 %   2.08 %   53.90 %

Year Ended July 31, 2007

    10.54     0.03     1.13       1.16       (0.04 )     (1.29 )     (1.33 )     10.37   11.21       1,831   2.03     0.31     2.05     183.84  

Year Ended July 31, 2006

    9.74     0.02     0.81       0.83       (0.03 )           (0.03 )     10.54   8.57       2,082   2.09     0.16     2.15     141.07  

Year Ended July 31, 2005

    8.25         1.50       1.50       (0.01 )           (0.01 )     9.74   18.00       1,833   2.11     (0.19 )   2.14     129.24 (f)

Period Ended July 31, 2004*

    8.19         0.06       0.06                         8.25   0.87       10   2.11     (0.05 )   2.11     73.48  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.57   $ 0.08   $ (0.68 )   $ (0.60 )   $ (0.08 )   $ (1.75 )   $ (1.83 )   $ 8.14   (6.56 %)   $ 128,472   0.88 %   1.54 %   1.08 %   53.90 %

Year Ended July 31, 2007

    10.71     0.14     1.15       1.29       (0.14 )     (1.29 )     (1.43 )     10.57   12.33       143,807   1.03     1.30     1.05     183.84  

Year Ended July 31, 2006

    9.89     0.13     0.82       0.95       (0.13 )           (0.13 )     10.71   9.64       145,676   1.09     1.18     1.15     141.07  

Year Ended July 31, 2005

    8.39     0.10     1.50       1.60       (0.10 )           (0.10 )     9.89   19.12       182,279   1.11     1.05     1.12     129.24 (f)

Year Ended July 31, 2004

    7.38     0.08     1.01       1.09       (0.08 )           (0.08 )     8.39   14.76       178,389   1.08     0.89     1.08     73.48  

Year Ended July 31, 2003

    7.03     0.09     0.35       0.44       (0.09 )           (0.09 )     7.38   6.32       210,881   1.07     1.30     1.07     77.62  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) The portfolio turnover rate increased significantly during the period. This increase was attributable to changes in equity management staff, cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to conditions in the energy and raw materials markets. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed.

 

See notes to financial statements.

 

67


 

PACIFIC CAPITAL FUNDS

High Grade Core Fixed Income Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.62   $ 0.24   $ 0.43     $ 0.67     $ (0.24 )   $     $ (0.24 )   $ 11.05   6.42 %   $ 3,179   0.94 %   4.56 %   1.24 %   36.02 %

Year Ended July 31, 2007

    10.61     0.50           0.50       (0.49 )           (0.49 )     10.62   4.75       3,115   0.93     4.67     1.23     66.38  

Year Ended July 31, 2006

    11.02     0.44     (0.41 )     0.03       (0.44 )     (f)     (0.44 )     10.61   0.29       3,689   0.96     4.06     1.45     85.53  

Year Ended July 31, 2005

    11.05     0.40           0.40       (0.40 )     (0.03 )     (0.43 )     11.02   3.67       4,577   1.00     3.58     1.67     27.95  

Year Ended July 31, 2004

    11.28     0.42     (0.03 )     0.39       (0.42 )     (0.20 )     (0.62 )     11.05   3.46       5,222   0.98     3.72     1.63     48.55  

Year Ended July 31, 2003

    11.22     0.47     0.17       0.64       (0.47 )     (0.11 )     (0.58 )     11.28   5.76       8,841   0.97     4.04     1.62     52.53  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.60   $ 0.20   $ 0.43     $ 0.63     $ (0.20 )   $     $ (0.20 )   $ 11.03   6.03 %   $ 1,307   1.69 %   3.81 %   1.84 %   36.02 %

Year Ended July 31, 2007

    10.59     0.42           0.42       (0.41 )           (0.41 )     10.60   3.98       1,634   1.68     3.91     1.83     66.38  

Year Ended July 31, 2006

    11.00     0.36     (0.41 )     (0.05 )     (0.36 )     (f)     (0.36 )     10.59   (0.45 )     2,944   1.71     3.32     1.92     85.53  

Year Ended July 31, 2005

    11.03     0.32           0.32       (0.32 )     (0.03 )     (0.35 )     11.00   2.90       4,019   1.75     2.83     1.92     27.95  

Year Ended July 31, 2004

    11.26     0.33     (0.03 )     0.30       (0.33 )     (0.20 )     (0.53 )     11.03   2.70       4,397   1.73     2.97     1.88     48.55  

Year Ended July 31, 2003

    11.20     0.38     0.17       0.55       (0.38 )     (0.11 )     (0.49 )     11.26   4.96       5,193   1.72     3.30     1.87     52.53  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.60   $ 0.20   $ 0.43     $ 0.63     $ (0.20 )   $     $ (0.20 )   $ 11.03   6.03 %   $ 982   1.69 %   3.81 %   1.84 %   36.02 %

Year Ended July 31, 2007

    10.59     0.42           0.42       (0.41 )           (0.41 )     10.60   3.98       964   1.68     3.90     1.83     66.38  

Year Ended July 31, 2006

    11.00     0.36     (0.41 )     (0.05 )     (0.36 )     (f)     (0.36 )     10.59   (0.45 )     1,322   1.71     3.34     1.92     85.53  

Year Ended July 31, 2005

    11.02     0.32     0.01       0.33       (0.32 )     (0.03 )     (0.35 )     11.00   3.00       1,188   1.75     2.90     1.93     27.95  

Period Ended July 31, 2004*

    11.02     0.08           0.08       (0.08 )           (0.08 )     11.02   0.76       10   1.75     2.98     1.90     48.55  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.68   $ 0.26   $ 0.44     $ 0.70     $ (0.26 )   $     $ (0.26 )   $ 11.12   6.61 %   $ 295,379   0.69 %   4.77 %   0.84 %   36.02 %

Year Ended July 31, 2007

    10.67     0.53           0.53       (0.52 )           (0.52 )     10.68   4.98       308,116   0.68     4.88     0.83     66.38  

Year Ended July 31, 2006

    11.09     0.47     (0.42 )     0.05       (0.47 )     (f)     (0.47 )     10.67   0.45       287,360   0.71     4.30     0.92     85.53  

Year Ended July 31, 2005

    11.12     0.43           0.43       (0.43 )     (0.03 )     (0.46 )     11.09   3.90       294,240   0.74     3.81     0.91     27.95  

Year Ended July 31, 2004

    11.35     0.45     (0.03 )     0.42       (0.45 )     (0.20 )     (0.65 )     11.12   3.73       268,129   0.73     3.97     0.88     48.55  

Year Ended July 31, 2003

    11.29     0.50     0.17       0.67       (0.50 )     (0.11 )     (0.61 )     11.35   6.00       235,902   0.72     4.30     0.87     52.53  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Less than $0.005 per share.

 

See notes to financial statements.

 

68


 

PACIFIC CAPITAL FUNDS

Tax-Free Securities Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities   Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
  Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
to Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.05   $ 0.21   $ 0.12     $ 0.33   $ (0.21 )   $ (0.01 )   $ (0.22 )   $ 10.16   3.34 %   $ 5,419   0.94 %   4.18 %   1.24 %   12.11 %

Year Ended July 31, 2007

    10.11     0.41     (0.05 )     0.36     (0.41 )     (0.01 )     (0.42 )     10.05   3.57       5,513   0.93     4.02     1.23     19.29  

Year Ended July 31, 2006

    10.52     0.40     (0.28 )     0.12     (0.40 )     (0.13 )     (0.53 )     10.11   1.19       6,209   0.98     3.87     1.48     59.63 (f)

Year Ended July 31, 2005

    10.72     0.41     (0.04 )     0.37     (0.41 )     (0.16 )     (0.57 )     10.52   3.49       8,973   1.00     3.83     1.67     8.65  

Year Ended July 31, 2004

    10.75     0.44     0.02       0.46     (0.44 )     (0.05 )     (0.49 )     10.72   4.32       9,928   0.97     4.03     1.62     8.87  

Year Ended July 31, 2003

    10.86     0.43     (0.05 )     0.38     (0.43 )     (0.06 )     (0.49 )     10.75   3.54       11,829   0.96     3.93     1.61     1.24  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.05   $ 0.17   $ 0.12     $ 0.29   $ (0.17 )   $ (0.01 )   $ (0.18 )   $ 10.16   2.96 %   $ 846   1.69 %   3.42 %   1.84 %   12.11 %

Year Ended July 31, 2007

    10.11     0.33     (0.05 )     0.28     (0.33 )     (0.01 )     (0.34 )     10.05   2.80       1,103   1.68     3.24     1.83     19.29  

Year Ended July 31, 2006

    10.52     0.32     (0.28 )     0.04     (0.32 )     (0.13 )     (0.45 )     10.11   0.44       2,375   1.73     3.11     1.94     59.63 (f)

Year Ended July 31, 2005

    10.72     0.33     (0.04 )     0.29     (0.33 )     (0.16 )     (0.49 )     10.52   2.71       3,344   1.75     3.08     1.92     8.65  

Year Ended July 31, 2004

    10.75     0.35     0.02       0.37     (0.35 )     (0.05 )     (0.40 )     10.72   3.55       4,054   1.72     3.28     1.87     8.87  

Year Ended July 31, 2003

    10.85     0.35     (0.04 )     0.31     (0.35 )     (0.06 )     (0.41 )     10.75   2.86       4,643   1.71     3.18     1.86     1.24  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.05   $ 0.17   $ 0.13     $ 0.30   $ (0.17 )   $ (0.01 )   $ (0.18 )   $ 10.17   3.05 %   $ 11   1.69 %   3.42 %   1.84 %   12.11 %

Year Ended July 31, 2007

    10.11     0.33     (0.05 )     0.28     (0.33 )     (0.01 )     (0.34 )     10.05   2.79       11   1.68     3.27     1.83     19.29  

Year Ended July 31, 2006

    10.53     0.32     (0.29 )     0.03     (0.32 )     (0.13 )     (0.45 )     10.11   0.35       10   1.73     3.11     1.94     59.63 (f)

Year Ended July 31, 2005

    10.72     0.33     (0.03 )     0.30     (0.33 )     (0.16 )     (0.49 )     10.53   2.83       10   1.74     3.09     1.90     8.65  

Period Ended July 31, 2004*

    10.72     0.09           0.09     (0.09 )           (0.09 )     10.72   0.82       10   1.74     3.22     1.89     8.87  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.09   $ 0.22   $ 0.12     $ 0.34   $ (0.22 )   $ (0.01 )   $ (0.23 )   $ 10.20   3.46 %   $ 270,573   0.69 %   4.41 %   0.84 %   12.11 %

Year Ended July 31, 2007

    10.15     0.43     (0.05 )     0.38     (0.43 )     (0.01 )     (0.44 )     10.09   3.81       282,671   0.68     4.25     0.83     19.29  

Year Ended July 31, 2006

    10.57     0.42     (0.29 )     0.13     (0.42 )     (0.13 )     (0.55 )     10.15   1.34       287,126   0.73     4.09     0.94     59.63 (f)

Year Ended July 31, 2005

    10.76     0.44     (0.03 )     0.41     (0.44 )     (0.16 )     (0.60 )     10.57   3.83       315,854   0.75     4.06     0.92     8.65  

Year Ended July 31, 2004

    10.79     0.47     0.02       0.49     (0.47 )     (0.05 )     (0.52 )     10.76   4.59       343,890   0.72     4.28     0.87     8.87  

Year Ended July 31, 2003

    10.90     0.46     (0.05 )     0.41     (0.46 )     (0.06 )     (0.52 )     10.79   3.80       397,157   0.71     4.18     0.86     1.24  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) The portfolio turnover rate increased significantly during the period. This increase was attributable to cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to changing market conditions. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed.

 

See notes to financial statements.

 

69


 

PACIFIC CAPITAL FUNDS

High Grade Short Intermediate Fixed Income Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities   Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
  Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income to
Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 9.54   $ 0.21   $ 0.32     $ 0.53   $ (0.21 )   $     $ (0.21 )   $ 9.86   5.63 %   $ 974   0.77 %   4.35 %   1.21 %   33.66 %

Year Ended July 31, 2007

    9.53     0.42     0.01       0.43     (0.42 )           (0.42 )     9.54   4.61       984   0.77     4.43     1.22     88.15  

Year Ended July 31, 2006

    9.66     0.34     (0.13 )     0.21     (0.34 )           (0.34 )     9.53   2.21       1,261   0.78     3.49     1.43     74.37  

Year Ended July 31, 2005

    9.80     0.26     (0.14 )     0.12     (0.26 )     (f)     (0.26 )     9.66   1.27       1,781   0.80     2.69     1.59     35.32  

Year Ended July 31, 2004

    9.97     0.25     (0.13 )     0.12     (0.25 )     (0.04 )     (0.29 )     9.80   1.11       1,724   0.80     2.48     1.55     49.42  

Year Ended July 31, 2003

    10.06     0.31     0.02       0.33     (0.31 )     (0.11 )     (0.42 )     9.97   3.28       5,327   0.80     2.93     1.55     17.50  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 9.54   $ 0.17   $ 0.31     $ 0.48   $ (0.17 )   $     $ (0.17 )   $ 9.85   5.13 %   $ 506   1.52 %   3.60 %   1.81 %   33.66 %

Year Ended July 31, 2007

    9.52     0.35     0.02       0.37     (0.35 )           (0.35 )     9.54   3.94       511   1.52     3.67     1.82     88.15  

Year Ended July 31, 2006

    9.65     0.27     (0.13 )     0.14     (0.27 )           (0.27 )     9.52   1.45       675   1.53     2.80     1.89     74.37  

Year Ended July 31, 2005

    9.80     0.19     (0.15 )     0.04     (0.19 )     (f)     (0.19 )     9.65   0.40       631   1.55     1.99     1.84     35.32  

Period Ended July 31, 2004*

    9.84     0.04     (0.04 )         (0.04 )           (0.04 )     9.80   0.04       10   1.55     1.75     1.82     49.42  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 9.56   $ 0.22   $ 0.31     $ 0.53   $ (0.22 )   $     $ (0.22 )   $ 9.87   5.64 %   $ 65,141   0.52 %   4.59 %   0.81 %   33.66 %

Year Ended July 31, 2007

    9.55     0.45     0.01       0.46     (0.45 )           (0.45 )     9.56   4.86       62,808   0.52     4.68     0.82     88.15  

Year Ended July 31, 2006

    9.68     0.36     (0.13 )     0.23     (0.36 )           (0.36 )     9.55   2.46       60,257   0.53     3.74     0.89     74.37  

Year Ended July 31, 2005

    9.82     0.29     (0.14 )     0.15     (0.29 )     (f)     (0.29 )     9.68   1.52       85,991   0.55     2.93     0.84     35.32  

Year Ended July 31, 2004

    9.99     0.27     (0.13 )     0.14     (0.27 )     (0.04 )     (0.31 )     9.82   1.38       81,346   0.55     2.73     0.81     49.42  

Year Ended July 31, 2003

    10.09     0.33     0.01       0.34     (0.33 )     (0.11 )     (0.44 )     9.99   3.41       88,824   0.55     3.23     0.80     17.50  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) Less than $0.005 per share.

 

See notes to financial statements.

 

70


 

PACIFIC CAPITAL FUNDS

Tax-Free Short Intermediate Securities Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities   Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
  Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income
to Average
Net Assets (c)
    Ratio of
Expenses to
Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.02   $ 0.16   $ 0.23     $ 0.39   $ (0.16 )   $     $ (0.16 )   $ 10.25   3.90 %   $ 2,034   1.01 %   3.10 %   1.26 %   19.34 %

Year Ended July 31, 2007

    10.05     0.31     (0.03 )     0.28     (0.31 )           (0.31 )     10.02   2.84       2,175   0.99     3.10     1.23     68.09  

Year Ended July 31, 2006

    10.21     0.28     (0.16 )     0.12     (0.28 )           (0.28 )     10.05   1.22       2,792   1.00     2.78     1.44     112.73 (f)

Year Ended July 31, 2005

    10.30     0.23     (0.09 )     0.14     (0.23 )           (0.23 )     10.21   1.40       3,784   1.00     2.26     1.62     28.31  

Year Ended July 31, 2004

    10.36     0.22     (0.06 )     0.16     (0.22 )           (0.22 )     10.30   1.53       4,781   0.97     2.09     1.58     11.30  

Year Ended July 31, 2003

    10.39     0.25     0.02       0.27     (0.25 )     (0.05 )     (0.30 )     10.36   2.62       2,322   0.97     2.40     1.58     6.01  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.02   $ 0.12   $ 0.23     $ 0.35   $ (0.12 )   $     $ (0.12 )   $ 10.25   3.52 %   $ 11   1.76 %   2.36 %   1.86 %   19.34 %

Year Ended July 31, 2007

    10.06     0.24     (0.04 )     0.20     (0.24 )           (0.24 )     10.02   1.97       10   1.74     2.35     1.83     68.09  

Year Ended July 31, 2006

    10.21     0.20     (0.15 )     0.05     (0.20 )           (0.20 )     10.06   0.55       10   1.75     2.03     1.91     112.73 (f)

Year Ended July 31, 2005

    10.31     0.16     (0.10 )     0.06     (0.16 )           (0.16 )     10.21   0.54       10   1.75     1.52     1.87     28.31  

Period Ended July 31, 2004*

    10.32     0.04     (0.01 )     0.03     (0.04 )           (0.04 )     10.31   0.26       10   1.72     1.41     1.83     11.30  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.08   $ 0.17   $ 0.23     $ 0.40   $ (0.17 )   $     $ (0.17 )   $ 10.31   4.01 %   $ 46,034   0.76 %   3.33 %   0.86 %   19.34 %

Year Ended July 31, 2007

    10.11     0.34     (0.03 )     0.31     (0.34 )           (0.34 )     10.08   3.08       50,835   0.74     3.33     0.83     68.09  

Year Ended July 31, 2006

    10.27     0.31     (0.16 )     0.15     (0.31 )           (0.31 )     10.11   1.47       62,816   0.75     3.03     0.91     112.73 (f)

Year Ended July 31, 2005

    10.36     0.26     (0.09 )     0.17     (0.26 )           (0.26 )     10.27   1.65       65,070   0.74     2.51     0.86     28.31  

Year Ended July 31, 2004

    10.41     0.24     (0.05 )     0.19     (0.24 )           (0.24 )     10.36   1.87       67,606   0.72     2.34     0.83     11.30  

Year Ended July 31, 2003

    10.45     0.28     0.01       0.29     (0.28 )     (0.05 )     (0.33 )     10.41   2.78       63,449   0.72     2.64     0.83     6.01  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f) The portfolio turnover rate increased significantly during the period. This increase was attributable to cashflows into and out of the Fund, as well as tactical portfolio adjustments made in response to changing market conditions. The basic characteristics of the Fund in terms of market capitalization, style, and diversification have not changed.

 

See notes to financial statements.

 

71


 

PACIFIC CAPITAL FUNDS

U.S. Government Short Fixed Income Fund

 

Financial Highlights

(Selected data for a share of capital stock outstanding throughout the periods indicated)

 

        Investment Activities     Distributions               Ratios/Supplemental Data  
     Net Asset
Value,
Beginning
of Period
  Net
Investment
Income
  Net Realized
and Unrealized
Gains (Losses)
on Investments
    Total from
Investment
Activities
    Dividends
from Net
Investment
Income
    Distributions
from Net
Realized
Gains
    Total
Dividends
and
Distributions
    Net Asset
Value,
End of
Period
  Total
Return (a)(b)
    Net Assets,
End of
Period (000’s)
  Ratio of
Expenses
to Average
Net Assets (c)
    Ratio of Net
Investment
Income to
Average
Net Assets (c)
    Ratio of
Expenses
to Average
Net Assets (c)(d)
    Portfolio
Turnover (e)
 

CLASS A

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.06   $ 0.21   $ 0.31     $ 0.52     $ (0.21 )   $     $ (0.21 )   $ 10.37   5.25 %   $ 2,451   0.65 %   4.15 %   1.09 %   25.92 %

Year Ended July 31, 2007

    10.04     0.45     0.02       0.47       (0.45 )           (0.45 )     10.06   4.80       2,265   0.64     4.50     1.07     81.16  

Year Ended July 31, 2006

    10.04     0.32           0.32       (0.32 )           (0.32 )     10.04   3.27       2,355   0.63     3.03     1.36     88.38  

Year Ended July 31, 2005

    10.10     0.18     (0.06 )     0.12       (0.18 )           (0.18 )     10.04   1.19       6,552   0.62     1.76     1.47     64.16  

Year Ended July 31, 2004

    10.24     0.18     (0.14 )     0.04       (0.18 )           (0.18 )     10.10   0.36       8,743   0.62     1.74     1.43     111.13  

Year Ended July 31, 2003

    10.31     0.23     (0.06 )     0.17       (0.23 )     (0.01 )     (0.24 )     10.24   1.67       12,787   0.62     2.23     1.42     17.41  

CLASS B

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.06   $ 0.17   $ 0.31     $ 0.48     $ (0.17 )   $     $ (0.17 )   $ 10.37   4.86 %   $ 599   1.40 %   3.42 %   1.69 %   25.92 %

Year Ended July 31, 2007

    10.04     0.38     0.02       0.40       (0.38 )           (0.38 )     10.06   4.02       825   1.39     3.75     1.67     81.16  

Year Ended July 31, 2006

    10.04     0.25           0.25       (0.25 )           (0.25 )     10.04   2.50       1,238   1.38     2.44     1.77     88.38  

Year Ended July 31, 2005

    10.10     0.10     (0.06 )     0.04       (0.10 )           (0.10 )     10.04   0.43       1,609   1.37     1.01     1.72     64.16  

Year Ended July 31, 2004

    10.24     0.10     (0.14 )     (0.04 )     (0.10 )           (0.10 )     10.10   (0.38 )     1,965   1.37     0.99     1.68     111.13  

Year Ended July 31, 2003

    10.31     0.15     (0.06 )     0.09       (0.15 )     (0.01 )     (0.16 )     10.24   0.91       1,994   1.37     1.46     1.67     17.41  

CLASS C

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.06   $ 0.17   $ 0.31     $ 0.48     $ (0.17 )   $     $ (0.17 )   $ 10.37   4.86 %   $ 1,044   1.40 %   3.41 %   1.69 %   25.92 %

Year Ended July 31, 2007

    10.04     0.38     0.02       0.40       (0.38 )           (0.38 )     10.06   4.02       1,116   1.39     3.75     1.67     81.16  

Year Ended July 31, 2006

    10.04     0.25           0.25       (0.25 )           (0.25 )     10.04   2.50       1,514   1.38     2.45     1.77     88.38  

Year Ended July 31, 2005

    10.10     0.10     (0.06 )     0.04       (0.10 )           (0.10 )     10.04   0.43       1,834   1.37     1.20     1.72     64.16  

Period Ended July 31, 2004*

    10.15     0.02     (0.05 )     (0.03 )     (0.02 )           (0.02 )     10.10   (0.26 )     10   1.37     0.85     1.58     111.13  

CLASS Y

                           

Period Ended January 31, 2008 (Unaudited)

  $ 10.07   $ 0.23   $ 0.31     $ 0.54     $ (0.23 )   $     $ (0.23 )   $ 10.38   5.38 %   $ 81,936   0.40 %   4.40 %   0.69 %   25.92 %

Year Ended July 31, 2007

    10.04     0.48     0.03       0.51       (0.48 )           (0.48 )     10.07   5.17       85,818   0.39     4.74     0.67     81.16  

Year Ended July 31, 2006

    10.05     0.35     (0.01 )     0.34       (0.35 )           (0.35 )     10.04   3.42       96,102   0.38     3.43     0.77     88.38  

Year Ended July 31, 2005

    10.11     0.20     (0.06 )     0.14       (0.20 )           (0.20 )     10.05   1.44       125,349   0.37     1.98     0.71     64.16  

Year Ended July 31, 2004

    10.25     0.20     (0.14 )     0.06       (0.20 )           (0.20 )     10.11   0.61       215,124   0.37     1.99     0.68     111.13  

Year Ended July 31, 2003

    10.32     0.26     (0.06 )     0.20       (0.26 )     (0.01 )     (0.27 )     10.25   1.92       240,916   0.37     2.47     0.67     17.41  

 

* For the period from April 30, 2004 (commencement of operations) to July 31, 2004.
(a) Excludes sales charge and/or redemption fees, if applicable.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) During the period certain fees were reduced. If such fee reductions had not occurred the ratios would have been as indicated.
(e) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.

 

See notes to financial statements.

 

72


PACIFIC CAPITAL FUNDS

 

Trustees and Officers

January 31, 2008

(Unaudited)

 

Interested Trustees.    The table below sets forth certain information about each of the Trustees of the Trust who is an “interested person” of the Trust as defined by the Investment Company Act of 1940, as amended (the “1940 Act”).

 

Name, Address and Age

 

Position(s)
Held with
Trust

 

Term of
Office;
Term
Served in
Office

 

Principal Occupation(s)

During Past 5 Years

  Number of
Portfolios
in Fund
Complex
Overseen
 

Other Directorships

Held by Trustee

Peter S. Ho*

130 Merchant Street,

22nd Floor

Honolulu, Hawaii 96813

Age: 42

  Trustee  

Indefinite;

Since 5/04

  Vice Chairman and Chief Banking Officer, Bank of Hawaii—Retail Banking (since 2007), Commercial Banking (Since 2006) and Investment Services Group (since 2004); Executive Vice President, Bank of Hawaii—Commercial Group (2003 - 2004); Executive Vice President/Senior Vice President/Vice President, Bank of Hawaii—Corporate Banking (1996 - 2003).   12   Member of the Board of: Rehabilitation Hospital Foundation, Hawaii Chapter of the American Red Cross, Special Olympics of Hawaii, Oceanic Institute, Hawaii Pacific University, Hanahau’oli School, Frederic Duclos Barstow Foundation, Historic Hawaii Foundation, Hawaii Community Foundation, McInerny Foundation, Nature Conservancy of Hawaii, Strong Foundation and University of Hawaii Ahahui Koa Anuenue.

 

* Mr. Ho is an “interested person” of the Trust, as identified by the 1940 Act, because of his employment with the Bank of Hawaii.

 

Independent Trustees.    The table below sets forth certain information about the Trustees of the Trust who are not “interested persons” of the Trust as defined in the 1940 Act.

 

Name, Address and Age

 

Position(s)
Held with
Trust

 

Term of
Office;
Term
Served in
Office

 

Principal Occupation(s)

During Past 5 Years

  Number of
Portfolios
in Fund
Complex
Overseen
 

Other Directorships

Held by Trustee

Stanley W. Hong

4976 Poola Street

Honolulu, Hawaii 96821

Age: 71

  Trustee  

Indefinite;

Since 10/92

 

Trustee of The King William Charles Lunalilo Trust Estate (since 2001); President of Waste Management of Hawaii, Inc. (2001-2005); Corporate Vice President, Hawaii Area Waste Management

(2001-2005); Trustee, President and Chief Executive Officer, The Chamber of Commerce of Hawaii (1996-2001).

  12   Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Member of the Board of: First Insurance Co. of Hawaii, Ltd., Lanihau Properties, LLC and Westye Group (Subzero Wolf Hawaii Advisory); Member of the Board of the following non-profit organizations: Chaminade University of Honolulu, Nature Conservancy of Hawaii, PBS Hawaii Foundation, Heald Education, LLC, Child and Family Service and East West Center Foundation.

Richard L. Humphreys

970 N Kalaheo Avenue,

Suite C110

Kailua, Hawaii 96734

Age: 64

  Trustee  

Indefinite;

Since 3/05

  President of Hawaii Receivables Management LLC (since 2001); President of Lynk Payment Systems Hawaii LLC (since 2002).   12   Member of the Board of: The Castle Group, Inc. and other charitable and civic organizations.

 

73


PACIFIC CAPITAL FUNDS

 

Trustees and Officers, continued

January 31, 2008

(Unaudited)

 

Name, Address and Age

 

Position(s)
Held with
Trust

 

Term of
Office;
Term
Served in
Office

 

Principal Occupation(s)

During Past 5 Years

  Number of
Portfolios
in Fund
Complex
Overseen
 

Other Directorships

Held by Trustee

Russell K. Okata

1015 Wilder
Avenue, #203

Honolulu, Hawaii 96822

Age: 64

  Trustee and (Since 3/05) Chairman  

Indefinite;

Since 10/92

  Retired. Formerly Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO (1981-2007); International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO
(1981-2007).
  12   Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (since 1993) and Aquila Three Peaks High Income Fund (since September 2007) (registered investment companies); former Chairman of the Royal State Group (1988-2007); Trustee of: Blood Bank of Hawaii, Bishop Museum, Judicial Council of Hawaii and other community organizations.

Douglas Philpotts

55 Dowsett Avenue

Honolulu, Hawaii 96817

Age: 76

  Trustee  

Indefinite;

Since 10/92

  Retired. Formerly Director, Chairman of the Board and President of Hawaiian Trust Co., Ltd. (until 1994), a predecessor of the Asset Management Group of Bank of Hawaii.   12   Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Trustee of the Strong Foundation (support of programs for Hawaiian youth) (since 1974).

Oswald K. Stender

711 Kapiolani Boulevard,

Suite 1250

Honolulu, Hawaii 96813

Age: 76

  Trustee  

Indefinite;

Since 10/92

  Trustee, Office of Hawaiian Affairs (since 1999); Director, Hawaiian Electric Industries, Inc. (public utility holding company) (1993-2004).   12   Trustee of Cash Assets Trust and Hawaiian Tax-Free Trust (registered investment companies) (since 1993); Director of Grace Pacific Corp.; Member of Advisory Board of Hawaiian Telecom Communications, Inc.; former Trustee of the Bernice Pauahi Bishop Estate (operation of school for children of Hawaiian ancestry) (1990-1999); Board member of various housing and real estate associations and community organizations.

 

The Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, by calling (800) 258-9232.

 

74


PACIFIC CAPITAL FUNDS

 

Trustees and Officers, continued

January 31, 2008

(Unaudited)

 

Officers.    The table below sets forth certain information about each of the Trust’s officers.

 

Name, Address and Age

  

Position(s) Held
with Trust

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s)
During Past 5 Years*

Robert I. Crowell

130 Merchant Street

Honolulu, Hawaii 96813

Age: 60

   President   

Indefinite;

Since 7/06

   Executive Vice President, Bank of Hawaii (since 2002); Senior Vice President, Bank of Hawaii (1993-2002).

Jennifer Lam

130 Merchant Street

Honolulu, Hawaii 96813

Age: 31

   Senior Vice President   

Indefinite;

Since 9/05

   Vice President, Bank of Hawaii (since 2005); Investment Analyst, International Finance Corporation, World Bank Group (2002-2005); Investment Banking Analyst, Credit Suisse First Boston (2000-2002).

George Stevens

3435 Stelzer Road

Columbus, Ohio 43219

Age: 57

   Chief Compliance Officer   

Indefinite;

Since 2/06

   Vice President, CCO Services of Citi Fund Services (since 1996).

Christopher E. Sabato

3435 Stelzer Road

Columbus, Ohio 43219

Age: 39

   Treasurer   

Indefinite;

Since 9/05

   Senior Vice President, Fund Administration of Citi Fund Services (since 1993).

Jennifer A. English

100 Summer Street,

Suite 1500

Boston, Massachusetts 02110

Age: 35

   Secretary   

Indefinite;

Since 12/07

   Vice President, Citi Fund Services, Inc. (since 2005), Assistant Counsel, PFPC, Inc. (2002-2005).

 

* Each officer may have served in various other capacities for the same organization during the length of time served.

 

75


PACIFIC CAPITAL FUNDS

 

Additional Information

January 31, 2007

(Unaudited)

 

Expense Examples

 

As a shareholder of the Pacific Capital Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and/or service fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Pacific Capital Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

 

These Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2007 through January 31, 2008.

 

Actual Expenses

 

The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

          Beginning
Account Value
8/1/07
   Ending
Account Value
1/31/08
   Expenses Paid
During Period*
8/1/07 - 1/31/08
   Expense Ratio
During Period**
8/1/07 - 1/31/08
 

New Asia Growth Fund

   Class A    $ 1,000.00    $ 1,058.90    $ 8.13    1.57 %
   Class B      1,000.00      1,055.10      11.98    2.32  
   Class C      1,000.00      1,054.80      11.98    2.32  
   Class Y      1,000.00      1,059.90      6.83    1.32  

International Stock Fund

   Class A      1,000.00      959.40      6.55    1.33  
   Class B      1,000.00      955.50      10.22    2.08  
   Class C      1,000.00      955.50      10.22    2.08  
   Class Y      1,000.00      960.40      5.32    1.08  

Small Cap Fund

   Class A      1,000.00      882.00      7.47    1.58  
   Class B      1,000.00      878.80      11.00    2.33  
   Class C      1,000.00      878.80      11.00    2.33  
   Class Y      1,000.00      883.00      6.30    1.33  

Mid-Cap Fund

   Class A      1,000.00      882.80      5.40    1.14  
   Class C      1,000.00      879.40      8.93    1.89  
   Class Y      1,000.00      884.10      4.22    0.89  

Growth Stock Fund

   Class A      1,000.00      953.20      5.65    1.15  
   Class B      1,000.00      949.00      9.31    1.90  
   Class C      1,000.00      950.10      9.31    1.90  
   Class Y      1,000.00      954.50      4.42    0.90  

Growth and Income Fund

   Class A      1,000.00      949.00      5.59    1.14  
   Class B      1,000.00      945.30      9.24    1.89  
   Class C      1,000.00      944.50      9.24    1.89  
   Class Y      1,000.00      949.20      4.36    0.89  

 

76


PACIFIC CAPITAL FUNDS

 

Additional Information, continued

January 31, 2007

(Unaudited)

 

          Beginning
Account Value
8/1/07
   Ending
Account Value
1/31/08
   Expense Paid
During Period*
8/1/07 - 1/31/08
   Expense Ratio
During Period**
8/1/07 - 1/31/08
 

Value Fund

   Class A    $ 1,000.00    $ 933.10    $ 5.49    1.13 %
   Class B      1,000.00      928.90      9.12    1.88  
   Class C      1,000.00      929.50      9.12    1.88  
   Class Y      1,000.00      934.40      4.28    0.88  

High Grade Core Fixed Income Fund

   Class A      1,000.00      1,064.20      4.88    0.94  
   Class B      1,000.00      1,060.30      8.75    1.69  
   Class C      1,000.00      1,060.30      8.75    1.69  
   Class Y      1,000.00      1,066.10      3.58    0.69  

Tax-Free Securities Fund

   Class A      1,000.00      1,033.40      4.80    0.94  
   Class B      1,000.00      1,029.60      8.62    1.69  
   Class C      1,000.00      1,030.50      8.63    1.69  
   Class Y      1,000.00      1,034.60      3.53    0.69  

High Grade Short Intermediate Fixed Income Fund

   Class A      1,000.00      1,056.30      3.98    0.77  
   Class C      1,000.00      1,051.30      7.84    1.52  
   Class Y      1,000.00      1,056.40      2.69    0.52  

Tax-Free Short Intermediate Securities Fund

   Class A      1,000.00      1,039.00      5.18    1.01  
   Class C      1,000.00      1,035.20      9.00    1.76  
   Class Y      1,000.00      1,040.10      3.90    0.76  

U.S. Government Short Fixed Income Fund

   Class A      1,000.00      1,052.50      3.35    0.65  
   Class B      1,000.00      1,048.60      7.21    1.40  
   Class C      1,000.00      1,048.60      7.21    1.40  
   Class Y      1,000.00      1,053.80      2.07    0.40  

 

* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
** Annualized.

 

77


PACIFIC CAPITAL FUNDS

 

Additional Information, continued

January 31, 2007

(Unaudited)

 

Hypothetical Example

 

The table below provides information about hypothetical account values and hypothetical expenses based on each Pacific Capital Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

          Beginning
Account Value
8/1/07
   Ending
Account Value
1/31/08
   Expense Paid
During Period*
8/1/07 - 1/31/08
   Expense Ratio
During Period**
8/1/07 - 1/31/08
 

New Asia Growth Fund

   Class A    $ 1,000.00    $ 1,017.24    $ 7.96    1.57 %
   Class B      1,000.00      1,013.47      11.74    2.32  
   Class C      1,000.00      1,013.47      11.74    2.32  
   Class Y      1,000.00      1,018.50      6.70    1.32  

International Stock Fund

   Class A      1,000.00      1,018.45      6.75    1.33  
   Class B      1,000.00      1,014.68      10.53    2.08  
   Class C      1,000.00      1,014.68      10.53    2.08  
   Class Y      1,000.00      1,019.71      5.48    1.08  

Small Cap Fund

   Class A      1,000.00      1,017.19      8.01    1.58  
   Class B      1,000.00      1,013.42      11.79    2.33  
   Class C      1,000.00      1,013.42      11.79    2.33  
   Class Y      1,000.00      1,018.45      6.75    1.33  

Mid-Cap Fund

   Class A      1,000.00      1,019.41      5.79    1.14  
   Class C      1,000.00      1,015.63      9.58    1.89  
   Class Y      1,000.00      1,020.66      4.52    0.89  

Growth Stock Fund

   Class A      1,000.00      1,019.36      5.84    1.15  
   Class B      1,000.00      1,015.58      9.63    1.90  
   Class C      1,000.00      1,015.58      9.63    1.90  
   Class Y      1,000.00      1,020.61      4.57    0.90  

Growth and Income Fund

   Class A      1,000.00      1,019.41      5.79    1.14  
   Class B      1,000.00      1,015.63      9.58    1.89  
   Class C      1,000.00      1,015.63      9.58    1.89  
   Class Y      1,000.00      1,020.66      4.52    0.89  

Value Fund

   Class A      1,000.00      1,019.46      5.74    1.13  
   Class B      1,000.00      1,015.69      9.53    1.88  
   Class C      1,000.00      1,015.69      9.53    1.88  
   Class Y      1,000.00      1,020.71      4.47    0.88  

High Grade Core Fixed Income Fund

   Class A      1,000.00      1,020.41      4.77    0.94  
   Class B      1,000.00      1,016.64      8.57    1.69  
   Class C      1,000.00      1,016.64      8.57    1.69  
   Class Y      1,000.00      1,021.67      3.51    0.69  

 

78


PACIFIC CAPITAL FUNDS

 

Additional Information, continued

January 31, 2007

(Unaudited)

 

          Beginning
Account Value
8/1/07
   Ending
Account Value
1/31/08
   Expense Paid
During Period*
8/1/07 - 1/31/08
   Expense Ratio
During Period**
8/1/07 - 1/31/08
 

Tax-Free Securities Fund

   Class A    $ 1,000.00    $ 1,020.41    $ 4.77    0.94 %
   Class B      1,000.00      1,016.64      8.57    1.69  
   Class C      1,000.00      1,016.64      8.57    1.69  
   Class Y      1,000.00      1,021.67      3.51    0.69  

High Grade Short Intermediate Fixed Income Fund

   Class A      1,000.00      1,021.27      3.91    0.77  
   Class C      1,000.00      1,017.50      7.71    1.52  
   Class Y      1,000.00      1,022.52      2.64    0.52  

Tax-Free Short Intermediate Securities Fund

   Class A      1,000.00      1,020.06      5.13    1.01  
   Class C      1,000.00      1,016.29      8.92    1.76  
   Class Y      1,000.00      1,021.32      3.86    0.76  

U.S. Government Short Fixed Income Fund

   Class A      1,000.00      1,021.87      3.30    0.65  
   Class B      1,000.00      1,018.10      7.10    1.40  
   Class C      1,000.00      1,018.10      7.10    1.40  
   Class Y      1,000.00      1,023.13      2.03    0.40  

 

* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
** Annualized.

 

Proxy Voting

 

Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-258-9232. The information also is included in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.pacificcapitalfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov.

 

Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds’ website at www.pacificcapitalfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov.

 

Portfolio Holdings Information

 

The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission’s website at www.sec.gov. You may also review, or for a fee, copy those documents by visiting the Securities and Exchange Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-202-551-8090.

 

79


LOGO


Item 2. Code of Ethics.

Not applicable – only for annual reports.

 

Item 3. Audit Committee Financial Expert.

Not applicable – only for annual reports.

 

Item 4. Principal Accountant Fees and Services.

Not applicable – only for annual reports.

 

Item 5. Audit Committee of Listed Registrants.

Not applicable.

 

Item 6. Schedule of Investments.

Included as part of the report to shareholders filed under Item 1 of this Form.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.


Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

 

Item 11. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1)
  Not applicable - Only effective for annual reports.
(a)(2)   Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3)
  Not applicable.
(b)       Certifications pursuant to Rule 30a-2(b) are furnished herewith.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)   Pacific Capital Funds
By (Signature and Title)*   /s/ Robert I. Crowell
  Robert I. Crowell, President
Date 4/4/08  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*   /s/ Robert I. Crowell
  Robert I. Crowell, President
Date 4/4/08  
By (Signature and Title)*   /s/ Christopher E. Sabato
  Christopher E. Sabato, Treasurer
Date 4/4/08