N-CSRS 1 a2117994zn-csrs.txt N-CRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-7062 PACIFIC GLOBAL FUND INC. D/B/A PACIFIC ADVISORS FUND INC. (Exact name of registrant as specified in charter) 206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206 (Address of principal executive offices) GEORGE A. HENNING 206 N. JACKSON ST., SUITE 301 GLENDALE, CA 91206 (Name and address of agent for service) Registrant's telephone number, including area code: 818-242-6693 Date of fiscal year end: DECEMBER 31 Date of reporting period: JUNE 30, 2003 [PACIFIC ADVISORS FUND INC. LOGO] SEMI-ANNUAL REPORT JUNE 30, 2003 GOVERNMENT SECURITIES FUND INCOME AND EQUITY FUND BALANCED FUND GROWTH FUND MULTI-CAP VALUE FUND SMALL CAP FUND PACIFIC ADVISORS table of contents SCHEDULE OF INVESTMENTS........................................................1 STATEMENT OF ASSETS AND LIABILITIES...........................................18 STATEMENT OF OPERATIONS.......................................................20 STATEMENT OF CHANGES IN NET ASSETS............................................22 NOTES TO FINANCIAL STATEMENTS.................................................26 FINANCIAL HIGHLIGHTS..........................................................31 PACIFIC ADVISORS GOVERNMENT SECURITIES FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Principal Amount Value ---------------------------------------------------------------- US GOVERNMENT SECURITIES - 89.55% US Treasury Bonds US Treasury Bond 6.00% 02/15/26 $ 800,000 $ 956,282 US Treasury Bond 6.25% 08/15/23 880,000 1,077,931 US Treasury Bond 6.375% 08/15/27 900,000 1,127,425 US Treasury Bond 6.50% 11/15/26 850,000 1,078,338 US Treasury Bond 6.75% 08/15/26 800,000 1,042,469 US Treasury Bond 6.875% 08/15/25 800,000 1,054,062 US Treasury Bond 7.125% 02/15/23 760,000 1,018,430 US Treasury Bond 7.50% 11/15/24 700,000 982,734 US Treasury Bond 7.625% 11/15/22 800,000 1,125,313 US Treasury Bond 7.625% 02/15/25 700,000 995,285 US Treasury Bond 7.875% 02/15/21 750,000 1,070,742 US Treasury Bond 8.00% 11/15/21 700,000 1,014,098 US Treasury Bond 8.125% 08/15/19 770,000 1,113,643 US Treasury Bond 8.125% 08/15/21 750,000 1,096,699 US Treasury Bond 8.75% 11/15/08 580,000 596,426 ---------------------------------------------------------------- 15,349,877 ---------------------------------------------------------------- US Treasury Note US Treasury Note 3.875% 07/31/03 100,000 100,238 ---------------------------------------------------------------- US Government Agencies Federal Farm Credit Bank 6.125% 12/29/15 520,000 617,670 ---------------------------------------------------------------- TOTAL US GOVERNMENT SECURITIES (Cost: $15,612,758) 16,067,785 ----------- Number of Shares Value ---------------------------------------------------------------- COMMON STOCK - 4.66% Utilities - Electric Nisource, Inc. 14,700 279,300 Pepco Holding, Inc. 12,500 239,500 ---------------------------------------------------------------- 518,800 ---------------------------------------------------------------- Utilities - Water Philadelphia Suburban Corporation 13,000 316,940 ---------------------------------------------------------------- TOTAL COMMON STOCK (Cost: $816,201) 835,740 ----------- TOTAL INVESTMENT SECURITIES - 94.21% (Cost: $16,428,959) $16,903,525 ----------- SHORT-TERM INVESTMENTS - 4.25% United Missouri Bank Money Market Fund 761,954 OTHER ASSETS LESS LIABILITIES - 1.54% 276,590 ----------- TOTAL NET ASSETS - 100% $17,942,069 ----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 1 PACIFIC ADVISORS INCOME AND EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Principal Amount Value ----------------------------------------------------------------- CORPORATE BONDS - 60.04% Aerospace & Defense McDonnell Douglas 9.75% 04/01/12 $ 75,000 $ 98,537 ----------------------------------------------------------------- Banks - Regional Bank of America Corporation 6.00% 03/15/06 70,000 76,530 First Union Corporation 6.824% 08/01/26 25,000 31,329 ----------------------------------------------------------------- 107,859 ----------------------------------------------------------------- Communications Citizens Utilities Company 7.45% 01/15/04 80,000 82,368 ----------------------------------------------------------------- Cosmetic/Personal Care Scott Paper Company 10.00% 03/15/05 60,000 68,170 ----------------------------------------------------------------- Electrical Northwestern Corporation 7.10% 08/01/05 125,000 123,125 ----------------------------------------------------------------- Entertainment Time Warner, Inc. 8.11% 08/15/06 100,000 114,969 ----------------------------------------------------------------- Financial Services Associates Corporation N.A. 8.55% 07/15/09 80,000 101,611 Ford Motor Credit Corporation 7.375% 10/28/09 50,000 52,416 General Motors Acceptance Corporation 5.75% 11/10/03 120,000 121,654 ----------------------------------------------------------------- 275,681 ----------------------------------------------------------------- Financial Services - Diversified General Electric Capital Corporation 8.50% 07/24/08 46,000 57,252 General Electric Capital Corporation 8.65% 05/15/09 40,000 50,928 General Electric Capital Corporation 8.875% 05/15/09 125,000 160,632 Norwest Financial Notes 6.00% 02/01/04 85,000 87,301 ----------------------------------------------------------------- 356,113 ----------------------------------------------------------------- Food Retailers Safeway, Inc. 9.875% 03/15/07 229,000 278,737 ----------------------------------------------------------------- Heavy Machinery Deere & Company 8.95% 06/15/19 55,000 69,996 ----------------------------------------------------------------- Industrial Caterpillar, Inc. 9.375% 08/15/11 84,000 114,116 Tyco International Group 4.95% 08/01/03 50,000 50,125 ----------------------------------------------------------------- 164,241 ----------------------------------------------------------------- Insurance - Full Line Cigna Corporation 8.25% 01/01/07 30,000 34,804 Transamerica Corporation 9.375% 03/01/08 100,000 123,778 ----------------------------------------------------------------- 158,582 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 2 PACIFIC ADVISORS INCOME AND EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Principal Amount Value ----------------------------------------------------------------- CORPORATE BONDS CONTINUED Insurance - Life American General Finance Corporation 8.125% 08/15/09 $ 191,000 $ 237,004 ----------------------------------------------------------------- Insurance - Specialty MBIA, Inc. 9.375% 02/15/11 25,000 32,438 ----------------------------------------------------------------- Oil - Integrated Majors Enron Oil and Gas 6.50% 09/15/04 175,000 184,778 ----------------------------------------------------------------- Retailers - Broadline Dayton Hudson Company 10.00% 01/01/11 150,000 206,679 Wal-Mart Stores 8.00% 09/15/06 50,000 58,862 ----------------------------------------------------------------- 265,541 ----------------------------------------------------------------- Telephone Systems Ameritech Capital 6.30% 10/15/04 40,000 42,352 Bellsouth Capital Funding Corporation 6.04% 11/15/26 85,000 94,728 GTE Hawaiian Telecom 6.75% 02/15/05 110,000 118,218 SBC Communications 6.59% 09/29/08 215,000 248,462 ----------------------------------------------------------------- 503,760 ----------------------------------------------------------------- Utilities - Electric Baltimore Gas & Electric 6.125% 07/01/03 32,000 32,000 Niagara Mohawk Power 9.75% 11/01/05 20,000 23,334 Public Service Electric & Gas 6.75% 03/01/06 50,000 55,928 Public Service Oklahoma 6.50% 06/01/05 50,000 53,861 Public Service Oklahoma 7.375% 12/01/04 30,000 32,221 ----------------------------------------------------------------- 197,344 ----------------------------------------------------------------- TOTAL CORPORATE BONDS (Cost: $3,093,429) 3,319,243 ----------- FOREIGN BONDS - 1.35% Foreign Government Ontario Province Canada 7.625% 06/22/04 70,000 74,402 ----------------------------------------------------------------- TOTAL FOREIGN BONDS (Cost: $72,723) 74,402 ----------- Number of Shares Value ----------------------------------------------------------------- COMMON STOCK - 18.77% Automobile Parts Genuine Parts Company 2,000 64,020 ----------------------------------------------------------------- Banks - Regional Willmington Trust Company 1,000 29,350 ----------------------------------------------------------------- Chemicals - Specialty International Flavors and Fragrances 1,000 31,930 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 3 PACIFIC ADVISORS INCOME AND EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- COMMON STOCK CONTINUED Diversified Companies General Electric 2,000 $ 57,360 ----------------------------------------------------------------- Electric Dominion Resources 1,000 64,270 ----------------------------------------------------------------- Financial Services - Specialty Freddie Mac 1,000 50,770 ----------------------------------------------------------------- Healthcare Provider HCA, Inc. 1,000 32,040 ----------------------------------------------------------------- Industrial Diversified Tyco International, Ltd. 2,000 37,960 ----------------------------------------------------------------- Insurance - Property American International Group, Inc. 1,000 55,180 Chubb Corporation 500 30,000 ----------------------------------------------------------------- 85,180 ----------------------------------------------------------------- Insurance - Specialty Caremark RX, Inc.* 2,000 51,360 ----------------------------------------------------------------- Medical & Biotechnology Johnson & Johnson 3,000 155,100 ----------------------------------------------------------------- Mining - Diversified Anglogold, Ltd. 1,000 31,900 Freeport McMoran 1,000 24,500 ----------------------------------------------------------------- 56,400 ----------------------------------------------------------------- Pharmaceuticals Pfizer, Inc. 2,500 85,375 ----------------------------------------------------------------- Pipelines El Paso Energy Corporation 1,000 8,080 ----------------------------------------------------------------- Real Estate Investment Trusts Hospitality Properties 5,000 156,250 ----------------------------------------------------------------- Utilities American Electric Power Company, Inc. 1,000 29,830 Public Service Enterprise Group, Inc. 1,000 42,250 ----------------------------------------------------------------- 72,080 ----------------------------------------------------------------- TOTAL COMMON STOCK (Cost: $1,195,894) 1,037,525 ----------- PREFERRED STOCK - 11.46% Financial Services Citigroup Capital VII 7.125% 07/31/31 2,000 54,400 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 4 PACIFIC ADVISORS INCOME AND EQUITY FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- PREFERRED STOCK CONTINUED Insurance - Full Line ING Capital Funding Trust II 2,500 $ 70,975 ----------------------------------------------------------------- Insurance - Life American General Preferred C 7.875% 1,000 26,670 Northwestern Capital Financing 1,000 7,260 Phoenix Companies, Inc. 7.45% 01/15/32 3,500 91,630 Westpac Capital Trust I 8.00% 3,000 78,390 ----------------------------------------------------------------- 203,950 ----------------------------------------------------------------- Insurance - Property Farmers Group Capital II 8.25% 2,000 51,300 ----------------------------------------------------------------- Real Estate Investment Trusts Price Legacy Corporation Preferred A 8.75% 15,000 252,750 ----------------------------------------------------------------- TOTAL PREFERRED STOCK (Cost: $605,960) 633,375 ----------- COMMERCIAL PAPER - 1.01% Financial Services Citigroup Global Markets Holdings, Inc. 56,000 56,019 ----------------------------------------------------------------- TOTAL COMMERCIAL PAPER (Cost: $56,000) 56,019 ----------- TOTAL INVESTMENT SECURITIES - 92.63% (Cost: $5,024,006) $ 5,120,564 ----------- SHORT-TERM INVESTMENTS - 3.80% United Missouri Bank Money Market Fund 209,985 OTHER ASSETS LESS LIABILITIES - 3.57% 197,585 ----------- TOTAL NET ASSETS - 100% $ 5,528,134 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 5 PACIFIC ADVISORS BALANCED FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ------------------------------------------------------------------ COMMON STOCK - 45.00% Advertising Interpublic Group* 15,000 $ 200,700 ------------------------------------------------------------------ Banks Banco International De Exportes* 45,200 360,244 ------------------------------------------------------------------ Biotechnology Cambrex Corporation 20,000 460,400 ------------------------------------------------------------------ Chemicals - Specialty Cabot Corporation 4,000 114,800 Cabot Micro Electronics, Inc.* 2,500 126,175 ------------------------------------------------------------------ 240,975 ------------------------------------------------------------------ Communications Nokia Corporation ADR 10,000 164,300 ------------------------------------------------------------------ Containers/Packaging Sealed Air Corporation* 5,000 238,300 ------------------------------------------------------------------ Diversified Companies General Electric 15,000 430,200 ------------------------------------------------------------------ Electric Duke Energy Corporation 25,000 498,750 Sony Corporation* 5,000 140,000 ------------------------------------------------------------------ 638,750 ------------------------------------------------------------------ Entertainment AT&T - Liberty Media Group Class A* 12,000 138,720 Viacom, Inc.* 5,000 218,300 ------------------------------------------------------------------ 357,020 ------------------------------------------------------------------ Financial Services H&R Block 10,000 432,500 ------------------------------------------------------------------ Financial Services - Diversified Convergys Corporation* 9,000 144,000 ------------------------------------------------------------------ Financial Services - Specialty Freddie Mac 5,000 253,850 ------------------------------------------------------------------ Food Cadbury Schweppes 9,000 217,620 JM Smucker Company 5,000 199,450 ------------------------------------------------------------------ 417,070 ------------------------------------------------------------------ Forest Products Rayonier, Inc. 9,000 297,000 ------------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 6 PACIFIC ADVISORS BALANCED FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ------------------------------------------------------------------ COMMON STOCK CONTINUED Industrial - Diversified Cubic Corporation* 6,000 $ 133,320 Tyco International, Ltd. 15,000 284,700 ------------------------------------------------------------------ 418,020 ------------------------------------------------------------------ Industrial & Commercial Services GATX Corporation 10,000 163,500 Reliance Steel 8,000 165,600 ------------------------------------------------------------------ 329,100 ------------------------------------------------------------------ Insurance - Full Line Berkshire Hathaway, Inc. - Class A* 3 217,500 ------------------------------------------------------------------ Insurance - Life MetLife, Inc.* 7,500 212,400 ------------------------------------------------------------------ Media AOL Time Warner 18,000 289,620 ------------------------------------------------------------------ Medical & Biotechnology Bristol Myers Squibb Company 15,000 407,250 Inverness Medical Innovations* 15,000 289,500 Johnson & Johnson 5,000 258,500 Wyeth 5,000 227,750 ------------------------------------------------------------------ 1,183,000 ------------------------------------------------------------------ Medical Equipment Perkin Elmer 8,000 110,480 ------------------------------------------------------------------ Mining - Diversified Rio Tinto PLC 3,000 229,650 ------------------------------------------------------------------ Pharmaceuticals Pfizer, Inc. 6,000 204,900 Pharmaceutical Resources, Inc.* 5,000 243,300 ------------------------------------------------------------------ 243,300 ------------------------------------------------------------------ Pipelines Williams Companies, Inc. 30,000 237,000 ------------------------------------------------------------------ Pollution/Waste Management Waste Management* 6,000 144,540 ------------------------------------------------------------------ Publishing Moodys Corporation 5,000 263,550 R H Donnelley Corporation* 6,000 218,820 Scholastic Corporation 6,000 178,680 ------------------------------------------------------------------ 661,050 ------------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 7 PACIFIC ADVISORS BALANCED FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ------------------------------------------------------------------ COMMON STOCK CONTINUED Real Estate Catellus Development Corporation* 12,000 $ 264,000 ------------------------------------------------------------------ Retailers - Specialty Michaels Stores, Inc.* 6,000 228,360 ------------------------------------------------------------------ Software & Computer Processing Equipment Reynolds & Reynolds 8,000 228,480 ------------------------------------------------------------------ Technology Lucent Technologies* 20,000 40,600 ------------------------------------------------------------------ TOTAL COMMON STOCK (Cost: $7,704,548) 9,877,309 ------------ Principal Amount Value ------------------------------------------------------------------ CORPORATE BONDS - 44.32% Aerospace & Defense McDonnell Douglas 9.75% 04/01/12 $ 386,000 507,136 ------------------------------------------------------------------ Banks - Regional Bank of America Corporation 6.00% 03/15/06 100,000 109,328 ------------------------------------------------------------------ Financial Services Beneficial Corporation 8.40% 05/15/08 95,000 114,830 General Electric Capital 7.875% 12/01/06 250,000 292,764 General Electric Capital 8.125% 05/15/02 450,000 570,315 General Motors Acceptance Corporation 5.75% 11/10/03 200,000 202,756 General Motors Acceptance Corporation 8.75% 07/15/05 649,000 697,325 National Rural Utilities 6.00% 01/15/04 179,000 183,552 ------------------------------------------------------------------ 2,061,542 ------------------------------------------------------------------ Food Retailers Albertsons, Inc 6.56% 07/26/27 150,000 166,481 Safeway, Inc. 9.30% 02/01/07 224,000 267,692 Safeway, Inc. 9.65% 01/15/04 49,000 50,920 Safeway, Inc. 9.875% 03/15/07 625,000 760,746 ------------------------------------------------------------------ 1,245,839 ------------------------------------------------------------------ Industrial Tenneco Packaging PTV 8.00% 04/15/07 60,000 68,628 Tyco International Group 4.95% 08/01/03 180,000 180,450 ------------------------------------------------------------------ 249,078 ------------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 8 PACIFIC ADVISORS BALANCED FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Principal Amount Value ------------------------------------------------------------------ CORPORATE BONDS CONTINUED Insurance - Full Line Cigna Corporation 7.40% 05/15/07 $ 145,000 $ 166,298 Cigna Corporation 8.25% 01/01/07 376,000 436,210 Transamerica Corporation 9.375% 03/01/08 100,000 123,778 ------------------------------------------------------------------ 726,286 ------------------------------------------------------------------ Media Seagrams & Sons 7.00% 04/15/08 310,000 343,194 ------------------------------------------------------------------ Medical Equipment Mallinckrodt 6.50% 11/15/07 400,000 405,000 ------------------------------------------------------------------ Oil - Integrated Majors Atlantic Richfield 10.875% 07/15/05 289,000 340,920 Enron Oil & Gas 6.70% 11/15/06 107,000 119,726 Phillips Petroleum 6.375% 03/30/09 65,000 75,734 Enron Oil & Gas 6.50% 09/15/04 325,000 343,158 ------------------------------------------------------------------ 879,538 ------------------------------------------------------------------ Semiconductor & Related Products Gerber Products 9.00% 10/15/06 110,000 130,996 ------------------------------------------------------------------ Telephone Systems Ameritech Capital 6.30% 10/15/04 85,000 89,998 NYNEX Capital Fund 8.23% 10/15/09 550,000 678,803 NYNEX Corporation 9.55% 05/01/10 8,153 9,978 Pacific Bell 5.875% 02/15/06 55,000 60,501 SBC Communications 6.55% 10/07/08 265,000 305,802 ------------------------------------------------------------------ 1,145,082 ------------------------------------------------------------------ Utilities - Electric Baltimore Gas & Electric 5.50% 04/15/04 77,000 79,572 Cleveland Electric Illuminating 9.50% 05/15/05 143,000 143,863 Niagara Mohawk Power 8.00% 06/01/04 30,000 31,708 Niagara Mohawk Power 9.75% 11/01/05 453,000 528,517 Northwestern Corporation 7.00% 08/15/23 250,000 219,062 Northwestern Corporation 7.10% 08/01/05 305,000 300,425 Potomac Electric Power 6.50% 03/15/08 82,000 93,580 Public Service Electric & Gas 6.25% 01/01/07 84,000 93,595 Public Service Electric & Gas 7.375% 03/01/14 373,000 393,683 Reliant Energy Mid Atlantic 9.237% 07/02/17 49,281 41,105 ------------------------------------------------------------------ 1,925,110 ------------------------------------------------------------------ TOTAL CORPORATE BONDS (Cost: $9,332,021) 9,728,129 ------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 9 PACIFIC ADVISORS BALANCED FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Principal Amount Value ------------------------------------------------------------------ US GOVERNMENT SECURITIES - 0.96% US Government Agencies Federal Home Loan Bank 6.75% 08/10/16 $ 200,000 $ 211,246 ------------------------------------------------------------------ TOTAL US GOVERNMENT SECURITIES (Cost: $209,285) 211,246 ------------ Number of Shares Value ------------------------------------------------------------------ PREFERRED STOCK - 2.30% Real Estate Investment Trusts Price Legacy Corporation Preferred A 8.75% 30,000 505,500 ------------------------------------------------------------------ TOTAL PREFERRED STOCK (Cost: $420,630) 505,500 ------------ COMMERCIAL PAPER - 2.42% Financial Services Citigroup Global Holdings, Inc. 531,000 531,181 ------------------------------------------------------------------ TOTAL COMMERCIAL PAPER (Cost: $529,297) 531,181 ------------ TOTAL INVESTMENT SECURITIES - 95.00% (Cost: $18,195,780) $ 20,853,365 ------------ SHORT-TERM INVESTMENTS - 2.84% United Missouri Bank Money Market Fund 623,426 ------------------------------------------------------------------ OTHER ASSETS LESS LIABILITIES - 2.16% 474,796 ------------ TOTAL NET ASSETS - 100% $ 21,951,587 ------------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 10 PACIFIC ADVISORS GROWTH FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ---------------------------------------------------------------- COMMON STOCK - 81.14% Biotechnology Cambrex Corporation 500 $ 11,510 ---------------------------------------------------------------- Commercial Services Tetra Technologies, Inc.* 1,250 21,413 ---------------------------------------------------------------- Communications HSBC Holding PLC* 160 9,458 ---------------------------------------------------------------- Computers & Related Equipment International Business Machines Corporation 200 16,500 ---------------------------------------------------------------- Containers/Packaging Pactiv Corporation* 500 9,855 ---------------------------------------------------------------- Diversified Companies General Electric 1,000 28,680 ---------------------------------------------------------------- Health Care Provider Anthem, Inc.* 500 38,575 ---------------------------------------------------------------- Home Furnishings Furniture Brands, Inc.* 500 13,050 ---------------------------------------------------------------- Industrial - Diversified Tyco International, Ltd. 1,000 18,980 ---------------------------------------------------------------- Insurance - Specialty Advance PCS* 1,000 38,230 ---------------------------------------------------------------- Medical & Biotechnology Amgen, Inc.* 250 16,745 Johnson & Johnson 800 41,360 McKesson Corporation HBOC, Inc. 500 17,870 Quest Diagnostics, Inc.* 300 19,140 ---------------------------------------------------------------- 95,115 ---------------------------------------------------------------- Medical Equipment, Devices & Supplies Becton, Dickinson and Company 500 19,425 St. Jude Medical, Inc.* 1,000 57,500 Zimmer Holdings, Inc.* 500 22,525 ---------------------------------------------------------------- 99,450 ---------------------------------------------------------------- Media Cox Communications* 1,000 31,900 ---------------------------------------------------------------- Mining - Diversified Anglogold, Ltd. 1,000 31,900 ----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 11 PACIFIC ADVISORS GROWTH FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ---------------------------------------------------------------- COMMON STOCK CONTINUED Oil - Integrated Majors Apache Corporation 500 $ 32,530 Exxon Mobil Corporation 400 14,364 ---------------------------------------------------------------- 46,894 ---------------------------------------------------------------- Pharmaceuticals Pfizer, Inc. 1,200 40,980 ---------------------------------------------------------------- Restaurants AppleBee's International 750 23,572 ---------------------------------------------------------------- Retailers - Specialty Linens 'n Things, Inc.* 1,000 23,610 ---------------------------------------------------------------- Software & Computer Processing Equipment Oracle Corporation* 800 9,616 Siebel Systems, Inc.* 500 4,770 ---------------------------------------------------------------- 14,386 ---------------------------------------------------------------- TOTAL COMMON STOCK (Cost: $661,806) 614,058 ---------- TOTAL INVESTMENT SECURITIES - 81.14% (Cost: $661,806) $ 614,058 ---------- SHORT-TERM INVESTMENTS - 20.12% United Missouri Bank Money Market Fund 152,261 OTHER ASSETS LESS LIABILITIES - (1.26%) (9,555) ---------- TOTAL NET ASSETS - 100% $ 756,764 ----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 12 PACIFIC ADVISORS MULTI-CAP VALUE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- COMMON STOCK - 90.51% Banks - Regional Bay View Capital Corporation* 5,000 $ 28,900 FleetBoston Financial Corporation 2,500 74,275 ----------------------------------------------------------------- 103,175 ----------------------------------------------------------------- Building Materials Home Depot, Inc. 2,000 66,240 ----------------------------------------------------------------- Communications AT&T Corporation 900 17,325 Comcast Corporation* 1,455 43,912 ----------------------------------------------------------------- 61,237 ----------------------------------------------------------------- Computers & Related Equipment Cisco Systems, Inc.* 5,000 82,950 EMC Corporation* 10,000 104,700 Unisys Corporation* 5,000 61,400 ----------------------------------------------------------------- 249,050 ----------------------------------------------------------------- Consumer Services Cendant Corporation* 5,000 91,600 ----------------------------------------------------------------- Electrical Components & Equipment Arrow Electronics, Inc.* 4,000 60,960 Calpine Corporation* 10,000 66,000 Qualcomm, Inc. 1,500 53,625 ----------------------------------------------------------------- 180,585 ----------------------------------------------------------------- Entertainment Vivendi Universal* 5,000 92,200 ----------------------------------------------------------------- Financial Services Nationwide Financial Services, Inc. 1,000 32,500 ----------------------------------------------------------------- Investment Companies Goldman Sachs Group, Inc. 1,000 83,750 ----------------------------------------------------------------- Media AOL Time Warner 5,000 80,450 ----------------------------------------------------------------- Medical & Biotechnology Bristol Myers Squibb Company 3,000 81,450 Serlogicals Corporation* 5,000 68,150 Watson Pharmaceutical* 1,500 60,555 ----------------------------------------------------------------- 210,155 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 13 PACIFIC ADVISORS MULTI-CAP VALUE FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- COMMON STOCK CONTINUED Pharmaceuticals Pfizer, Inc. 2,000 $ 68,300 Schering-Plough Corporation 2,400 44,640 ----------------------------------------------------------------- 112,940 ----------------------------------------------------------------- Retailers - Broadline Duane Reade, Inc.* 2,000 29,500 Pier 1 Imports, Inc. 3,000 61,200 Target Corporation 2,000 75,680 ----------------------------------------------------------------- 166,380 ----------------------------------------------------------------- Retailers - Drug Based Sola International, Inc.* 5,000 87,000 ----------------------------------------------------------------- Retailers - Specialty Gap, Inc. 5,000 93,800 Radio Shack* 2,500 65,775 ----------------------------------------------------------------- 159,575 ----------------------------------------------------------------- Semiconductor & Related Intel Corporation 3,000 62,352 ----------------------------------------------------------------- Technology Lucent Technologies* 50,000 101,500 ----------------------------------------------------------------- Telephone Systems AT&T Wireless Services, Inc.* 10,000 82,100 SBC Communications 2,000 51,100 ----------------------------------------------------------------- 133,200 ----------------------------------------------------------------- TOTAL COMMON STOCK (Cost: $1,787,767) 2,073,889 ----------- TOTAL INVESTMENT SECURITIES - 90.51% (Cost: $1,787,767) $ 2,073,889 ----------- SHORT-TERM INVESTMENTS - 8.41% United Missouri Bank Money Market Fund 192,676 OTHER ASSETS LESS LIABILITIES - 1.08% 24,642 ----------- TOTAL NET ASSETS - 100% $ 2,291,207 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 14 PACIFIC ADVISORS SMALL CAP FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- COMMON STOCK - 105.94% Apparel Ashworth, Inc.* 34,000 $ 241,060 ----------------------------------------------------------------- Auto Parts Keystone Automotive Industries, Inc.* 8,000 146,080 ----------------------------------------------------------------- Banks - Regional East West Bancorp, Inc. 6,000 216,840 Nara Bank National Association 10,000 190,000 ----------------------------------------------------------------- 406,840 ----------------------------------------------------------------- Building Materials Elcor Corporation 10,000 225,000 ----------------------------------------------------------------- Commercial Services Team, Inc.* 10,000 80,000 ----------------------------------------------------------------- Communications Bell Microproducts, Inc.* 28,000 119,560 Clearone Communications, Inc.* 15,000 33,000 ----------------------------------------------------------------- 152,560 ----------------------------------------------------------------- Computers & Related Equipment Intervoice, Inc.* 130,000 642,200 Tyler Technologies* 40,000 170,000 ----------------------------------------------------------------- 812,200 ----------------------------------------------------------------- Construction - Building Modtech Holding, Inc.* 10,000 91,900 ----------------------------------------------------------------- Consumer Services Service Corporation International* 15,000 58,050 ----------------------------------------------------------------- Containers/Packaging Mobile Mini, Inc.* 20,000 326,600 ----------------------------------------------------------------- Financial Services First Cash Financial Services, Inc.* 17,000 241,570 ----------------------------------------------------------------- Food Monterey Pasta Company* 25,000 123,750 ----------------------------------------------------------------- Footwear Genesco, Inc.* 12,000 212,400 ----------------------------------------------------------------- Gas - Integrated Denbury Resources, Inc.* 11,000 147,730 ----------------------------------------------------------------- Golfing Equipment Callaway Golf Company 10,000 132,200 ----------------------------------------------------------------- Healthcare Provider America Service Group* 22,000 393,800 United American Health Care* 50,000 92,500 ----------------------------------------------------------------- 486,300 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 15 PACIFIC ADVISORS SMALL CAP FUND SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Number of Shares Value ----------------------------------------------------------------- COMMON STOCK CONTINUED Home Furnishings Haverty Furniture 14,000 $ 245,000 ----------------------------------------------------------------- Insurance - Full Line Gainsco, Inc.* 20,000 5,600 ----------------------------------------------------------------- Insurance - Specialty Warrantech Corporation* 30,000 36,000 ----------------------------------------------------------------- Oil - Integrated Majors Chesapeake Energy Corporation 12,000 121,200 Remington Oil & Gas Corporation* 10,000 183,800 ----------------------------------------------------------------- 305,000 ----------------------------------------------------------------- Oilfield Equipment & Services Carbo Ceramics, Inc. 6,000 223,500 Seitel, Inc.* 25,000 5,500 ----------------------------------------------------------------- 229,000 ----------------------------------------------------------------- Railroads Railamerica, Inc.* 70,000 591,500 ----------------------------------------------------------------- Retail - Auto Sales/Parts Sonic Automotive, Inc.* 23,000 503,930 ----------------------------------------------------------------- Retail - Mail Order Direct Summit America Television, Inc.* 25,000 72,250 ----------------------------------------------------------------- Semiconductor & Related Camtek Limited* 85,000 80,750 ----------------------------------------------------------------- Software & Processing Carreker Corporation* 43,000 196,940 ----------------------------------------------------------------- Toys/Games Racing Champions 8,000 136,080 ----------------------------------------------------------------- Transportation SCS Transportation* 5,000 63,150 US Xpress Enterprises* 8,200 87,412 ----------------------------------------------------------------- 150,562 ----------------------------------------------------------------- Technology MKS Instruments, Inc.* 4,000 72,280 ----------------------------------------------------------------- TOTAL COMMON STOCK (Cost: $5,847,224) 6,509,132 ----------- TOTAL INVESTMENT SECURITIES - 105.94% (Cost: $5,847,224) $ 6,509,132 ----------- OTHER ASSETS LESS LIABILITIES - (5.94%) (365,124) ----------- TOTAL NET ASSETS - 100% $ 6,144,008 -----------------------------------------------------------------
* Non-income producing SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 16 (This page has been left blank intentionally.) 17 PACIFIC ADVISORS FUND INC. STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
INCOME GOVERNMENT AND SECURITIES EQUITY FUND FUND ------------ ------------ ASSETS Investment Securities At cost $16,428,959 $ 5,024,006 =========== =========== At market value $16,903,525 $ 5,120,564 Short-term investments, at cost, which is equal to market 761,954 209,985 Accrued income receivable 247,409 70,413 Receivable from investment manager (Note 3) 858 964 Receivable for investments sold - 71,596 Receivable for capital shares sold 119,195 68,679 Other assets 2 - ----------- ----------- Total assets 18,032,943 5,542,201 ----------- ----------- LIABILITIES Bank Overdraft - - Payable for investments purchased - - Payable for fund shares redeemed 73,897 9,362 Accounts payable 17,308 5,679 Accounts payable to related parties (Note 3) (331) (974) Payable to Investment Manager (Note 3) - - ----------- ----------- Total liabilities 90,874 14,067 ----------- ----------- NET ASSETS $17,942,069 $ 5,528,134 ----------- ----------- SUMMARY OF SHAREHOLDERS' EQUITY Paid in capital 17,421,654 5,553,737 Accumulated undistributed net investment income (2,316) 1,627 Accumulated undistributed net realized gain (losses) on security transaction 48,166 (123,788) Net unrealized appreciation (depreciation) of investments 474,565 96,558 ----------- ----------- Net assets at June 30, 2003 $17,942,069 $ 5,528,134 ----------- ----------- CLASS A: Net assets $ 3,671,023 $ 1,979,755 =========== =========== Shares authorized 50,000,000 50,000,000 Shares outstanding 352,926 195,865 Net asset value and redemption price per share $ 10.40 $ 10.11 =========== =========== Maximum offering price per share $ 10.92 $ 10.61 Sales load 4.75% 4.75% CLASS C: Net assets $14,271,046 $ 3,548,379 =========== =========== Shares authorized 50,000,000 50,000,000 Shares outstanding 1,409,129 362,269 Net asset value and redemption price per share $ 10.13 $ 9.79 =========== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 18 --------------------------------------------------------------------------------
MULTI-CAP SMALL BALANCED GROWTH VALUE CAP FUND FUND FUND FUND ------------ ------------ ------------ ------------ ASSETS Investment Securities At cost $18,195,780 $ 661,806 $ 1,787,767 $ 5,847,224 =========== =========== =========== =========== At market value $20,853,364 $ 614,057 $ 2,073,889 $ 6,509,132 Short-term investments, at cost, which is equal to market 623,426 152,261 192,676 - Accrued income receivable 203,093 592 1,223 1,017 Receivable from investment manager (Note 3) - 3,113 5,195 - Receivable for investments sold 135,972 - - 107,662 Receivable for capital shares sold 167,357 355 21,125 1,304 Other assets - - - - ----------- ----------- ----------- ----------- Total assets 21,983,212 770,378 2,294,108 6,619,115 ----------- ----------- ----------- ----------- LIABILITIES Bank Overdraft - - - 322,755 Payable for investments purchased - 10,014 - 26,320 Payable for fund shares redeemed - 1,000 - 128,475 Accounts payable 9,954 1,443 2,353 (4,675) Accounts payable to related parties (Note 3) 8,296 1,157 548 (1,501) Payable to Investment Manager (Note 3) 13,375 - - 3,733 ----------- ----------- ----------- ----------- Total liabilities 31,625 13,614 2,901 475,107 ----------- ----------- ----------- ----------- NET ASSETS $21,951,587 $ 756,764 $ 2,291,207 $ 6,144,008 ----------- ----------- ----------- ----------- SUMMARY OF SHAREHOLDERS' EQUITY Paid in capital 18,924,015 1,570,293 2,164,145 7,064,182 Accumulated undistributed net investment income 48,837 (56,439) (45,001) (2,042,730) Accumulated undistributed net realized gain (losses) on security transaction 321,150 (709,342) (114,058) 460,648 Net unrealized appreciation (depreciation) of investments 2,657,585 (47,748) 286,121 661,908 ----------- ----------- ----------- ----------- Net assets at June 30, 2003 $21,951,587 $ 756,764 $ 2,291,207 $ 6,144,008 ----------- ----------- ----------- ----------- CLASS A: Net assets $ 4,280,547 $ 560,036 $ 675,472 $ 5,525,850 =========== =========== =========== =========== Shares authorized 50,000,000 50,000,000 50,000,000 50,000,000 Shares outstanding 288,211 90,824 69,696 438,493 Net asset value and redemption price per share $ 14.85 $ 6.17 $ 9.69 $ 12.60 =========== =========== =========== =========== Maximum offering price per share $ 15.76 $ 6.55 $ 10.28 $ 13.37 Sales load 5.75% 5.75% 5.75% 5.75% CLASS C: Net assets $17,671,039 $ 196,728 $ 1,615,735 $ 618,158 =========== =========== =========== =========== Shares authorized 50,000,000 50,000,000 50,000,000 50,000,000 Shares outstanding 1,221,753 33,248 167,991 52,628 Net asset value and redemption price per share $ 14.46 $ 5.92 $ 9.62 $ 11.75 =========== =========== =========== ===========
19 PACIFIC ADVISORS FUND INC. STATEMENT OF OPERATIONS (UNAUDITED) For the period ended June 30, 2003 --------------------------------------------------------------------------------
INCOME GOVERNMENT AND SECURITIES EQUITY FUND FUND ----------- ---------- INVESTMENT INCOME Dividends $ 19,712 $ 42,212 Interest 315,584 99,949 ---------- --------- Total Income 335,296 142,161 ---------- --------- EXPENSES Investment Management Fees 52,584 20,185 Transfer Agent Fees 18,639 14,764 Fund Accounting Fees 34,707 12,336 Legal Fees 10,665 4,527 Audit Fees 11,091 4,418 Registration Fees 7,072 3,589 Printing 2,960 1,935 Custody Fees 5,437 4,287 Director Fees/Meetings 1,440 538 Distribution Fees (Note 3) 64,640 19,449 Other Expense 1,957 4,384 ---------- --------- Total Expenses, before reimbursements 211,192 90,412 Less fees waived and expenses reimbursed (Note 3) 32,361 27,751 ---------- --------- Net Expenses 178,831 62,661 ---------- --------- NET INVESTMENT INCOME (LOSS) 156,465 79,500 ---------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized gain (loss) on investments 46,946 40,534 Net Unrealized appreciation (depreciation) of investments 274,198 81,157 ---------- --------- 321,144 121,691 ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 477,609 $ 201,191 ---------- ---------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 20 --------------------------------------------------------------------------------
MULTI-CAP SMALL BALANCED GROWTH VALUE CAP FUND FUND FUND FUND --------- ---------- ---------- ------------ INVESTMENT INCOME Dividends $ 75,792 $ 2,785 $ 4,681 $ 9,695 Interest 307,786 178 295 5 -------- --------- --------- ----------- Total Income 383,578 2,963 4,976 9,700 -------- --------- --------- ----------- EXPENSES Investment Management Fees 72,090 2,557 9,589 19,088 Transfer Agent Fees 33,429 12,687 15,001 22,624 Fund Accounting Fees 52,166 7,950 8,828 17,014 Legal Fees 19,440 473 1,569 6,872 Audit Fees 17,615 631 1,721 1,869 Registration Fees 17,724 51 476 11,426 Printing 16,879 505 1,534 10,006 Custody Fees 5,767 3,474 3,447 8,227 Director Fees/Meetings 2,897 49 191 810 Distribution Fees (Note 3) 81,215 1,546 7,498 8,274 Other Expense 2,826 1,269 1,449 978 -------- --------- --------- ----------- Total Expenses, before reimbursements 322,049 31,191 51,303 107,188 Less fees waived and expenses reimbursed (Note 3) - 21,745 22,296 - -------- --------- --------- ----------- Net Expenses 322,049 9,446 29,007 107,188 -------- --------- --------- ----------- NET INVESTMENT INCOME (LOSS) 61,529 (6,483) (24,031) (97,488) -------- --------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized gain (loss) on investments 390,369 8,318 - 293,765 Net Unrealized appreciation (depreciation) of investments 1,135,642 79,211 423,689 938,383 -------- --------- --------- ----------- 1,526,011 87,529 423,689 1,232,148 -------- --------- --------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $1,587,540 $ 81,046 $ 399,658 $ 1,134,660 -------- --------- --------- -----------
21 PACIFIC ADVISORS FUND INC. STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND ---------------------------------- Period ended Year ended June 30, 2003 December 31, 2002 -------------- ------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 156,465 $ 246,914 Net realized gain (loss) on investments 46,946 20,145 Change in net unrealized appreciation (depreciation) of investments 274,198 39,088 ------------- ------------- Increase (decrease) in net assets resulting from operations 477,609 306,147 ------------- ------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Class A: Net investment income (43,076) (102,475) Net capital gains - (5,601) Class C: Net investment income (126,872) (132,819) Net capital gains - (14,669) ------------- ------------- Decrease in net assets resulting from distributions (169,948) (255,564) ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) Proceeds from shares sold 3,393,725 7,573,729 Proceeds from shares purchased by reinvestment of dividends 157,274 212,774 Cost of shares repurchased (899,583) (3,513,492) ------------- ------------- Increase (decrease) in net assets derived from capital share transactions 2,651,416 4,273,011 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 2,959,077 4,323,594 NET ASSETS Beginning of period 14,982,992 10,659,398 ------------- ------------- End of period $ 17,942,069 $ 14,982,992 ------------- -------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 22 --------------------------------------------------------------------------------
INCOME AND EQUITY FUND BALANCED FUND ---------------------------------- ---------------------------------- Period ended Year ended Period ended Year ended June 30, 2003 December 31, 2002 June 30, 2003 December 31, 2002 -------------- ------------------ -------------- ------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ 79,500 $ 145,083 $ 61,529 $ (1,817) Net realized gain (loss) on investments 40,534 (92,116) 390,369 28,521 Change in net unrealized appreciation (depreciation) of investments 81,157 (88,820) 1,135,642 (716,764) ------------- ------------- ------------- ------------- Increase (decrease) in net assets resulting from operations 201,191 (35,853) 1,587,540 (690,060) ------------- ------------- ------------- ------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Class A: Net investment income (36,997) (67,712) - (289) Net capital gains - - - - Class C: Net investment income (54,665) (66,254) - (1,031) Net capital gains - - - - ------------- ------------- ------------- ------------- Decrease in net assets resulting from distributions (91,662) (133,966) - (1,320) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) Proceeds from shares sold 341,103 2,399,131 3,156,216 8,404,741 Proceeds from shares purchased by reinvestment of dividends 84,053 113,190 - 1,320 Cost of shares repurchased (407,182) (1,014,874) (804,200) (2,119,375) ------------- ------------- ------------- ------------- Increase (decrease) in net assets derived from capital share transactions 17,974 1,497,447 2,352,016 6,286,686 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 127,503 1,327,628 3,939,556 5,595,306 NET ASSETS Beginning of period 5,400,631 4,073,003 18,012,031 12,416,725 ------------- ------------- ------------- ------------- End of period $ 5,528,134 $ 5,400,631 $ 21,951,587 $ 18,012,031 ------------- ------------- ------------- -------------
23 PACIFIC ADVISORS FUND INC. STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) --------------------------------------------------------------------------------
GROWTH FUND ---------------------------------- Period ended Year ended June 30, 2003 December 31, 2002 -------------- ------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (6,483) $ (18,437) Net realized gain (loss) on investments 8,318 (71,062) Change in net unrealized appreciation (depreciation) of investments 79,211 (116,699) ------------- ------------- Increase (decrease) in net assets resulting from operations 81,046 (206,198) ------------- ------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Class A: Net investment income - - Net capital gains - - Class C: Net investment income - - Net capital gains - - ------------- ------------- Decrease in net assets resulting from distributions - - ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) Proceeds from shares sold 55,469 122,458 Proceeds from shares purchased by reinvestment of dividends - - Cost of shares repurchased (33,670) (289,881) ------------- ------------- Increase (decrease) in net assets derived from capital share transactions 21,799 (167,423) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 102,845 (373,621) NET ASSETS Beginning of period 653,919 1,027,540 ------------- ------------- End of period $ 756,764 $ 653,919 ------------- -------------
(c) Commencement of Operations SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 24 --------------------------------------------------------------------------------
MULTI-CAP VALUE FUND SMALL CAP FUND ---------------------------------- ---------------------------------- April 1, 2002 (c) Period ended to Period ended Year ended June 30, 2003 December 31, 2002 June 30, 2003 December 31, 2002 -------------- ------------------ -------------- ------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income (loss) $ (24,031) $ (20,970) $ (97,488) $ (295,608) Net realized gain (loss) on investments - (114,058) 293,765 (712) Change in net unrealized appreciation (depreciation) of investments 423,689 (137,567) 938,383 (2,490,446) ------------- ------------- ------------- ------------- Increase (decrease) in net assets resulting from operations 399,658 (272,595) 1,134,660 (2,786,766) ------------- ------------- ------------- ------------- FROM DISTRIBUTIONS TO SHAREHOLDERS Class A: Net investment income - - - - Net capital gains - - - (2,964) Class C: Net investment income - - - - Net capital gains - - - (359) ------------- ------------- ------------- ------------- Decrease in net assets resulting from distributions - - - (3,323) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS (NOTE 5) Proceeds from shares sold 225,820 2,141,908 187,381 1,054,134 Proceeds from shares purchased by reinvestment of dividends - - - 3,323 Cost of shares repurchased (83,963) (119,621) (484,647) (1,561,561) ------------- ------------- ------------- ------------- Increase (decrease) in net assets derived from capital share transactions 141,857 2,022,287 (297,266) (504,104) ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 541,515 1,749,692 837,394 (3,294,193) NET ASSETS Beginning of period 1,749,692 - 5,306,614 8,600,807 ------------- ------------- ------------- ------------- End of period $ 2,291,207 $ 1,749,692 $ 6,144,008 $ 5,306,614 ------------- ------------- ------------- -------------
(c) Commencement of Operations 25 PACIFIC ADVISORS FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2003 -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION Pacific Advisors Fund Inc. (the "Company") is an open-end diversified investment management company registered under the Investment Company Act of 1940, as amended. The currently offers six Funds: Government Securities Fund, Income and Equity Fund, Balanced Fund, Growth Fund, Multi-Cap Value Fund and Small Cap Fund. Each Fund is a separate investment portfolio of the Company with a distinct investment objective, investment program, policies and restrictions. The Government Securities Fund seeks to provide high current income, preservation of capital, and rising future income, consistent with prudent investment risk. The Income and Equity Fund seeks to provide current income and secondarily, long-term capital appreciation. The Balanced Fund seeks to achieve long-term capital appreciation and income consistent with reduced market risk. The Growth Fund seeks to achieve long-term capital appreciation through investment in medium to large capitalization companies. The Multi-Cap Value Fund seeks long-term capital appreciation by investing in a diversified portfolio of large to small capitalization companies. The Small Cap Fund seeks to provide capital appreciation through investment in small capitalization companies. Effective April 1, 1998, the Funds offer Class A and Class C shares, each of which has equal rights as to assets and voting privileges except that Class A and Class C each has exclusive voting rights with respect to its distribution plan. Investment income, realized and unrealized capital gains and losses, and the common expenses of each Fund are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each Class of shares differs in its respective service and distribution expenses and may differ in its transfer agent, registration, and certain other class-specific fees and expenses. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES A. SECURITY VALUATION. Securities listed on a national securities exchange and certain over-the counter ("OTC") issues traded on the NASDAQ national market system are valued at the last quoted sale price at the close of the New York Stock Exchange. OTC issues not quoted on the NASDAQ system and other equity securities for which no sale price is available, are valued at the last bid price as obtained from published sources (including Quotron), where available, and otherwise from brokers who are market makers for such securities. Debt securities with a maturity of less than 60 days are valued on an amortized cost basis. Premium or discount on debt securities are amortized. B. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Security transactions are accounted for on the trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and Federal Income tax purposes. Dividends are recorded on the ex-dividend date. Interest income is recorded on an accrual basis. C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. The Government Securities Fund and Income and Equity Fund declare and distribute dividends of their net investment income, if any, quarterly. The Balanced Fund, Growth Fund, Multi-Cap Value Fund and Small Cap Fund declare and distribute dividends of their net investment income, if any, annually. The Board of Directors will determine the amount and timing of such payments. Income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments of income and gain on various investment securities held by the Funds, timing differences and differing characterization of distributions made by the Fund. E. USE OF ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the financial statements and footnotes. Actual results could differ from those estimates. NOTE 3. INVESTMENT MANAGEMENT, DISTRIBUTOR AND OTHER RELATED PARTY TRANSACTIONS The Company and the Funds have entered into investment management agreements ("Management Agreements") with Pacific Global Investment Management Company, Inc. ("Investment Manager"). The Management Agreements provide for investment management fees, payable monthly, and calculated at the maximum annual rate of 0.65% of average net assets for the Government Securities Fund, 0.75% of average net assets for the Income and Equity, Balanced, Growth and Small Cap Funds and 1.00% of average net assets for the Multi-Cap Value Fund. The Investment Manager has entered into sub-advisory agreements ("Sub-Advisory Agreement") with Bache Capital Management, Spectrum Asset Management, Inc. and Meyers Capital Management, LLC ("Advisors") for the Balanced, Government Securities and Multi-Cap Value Funds, respectively. It has also entered into a co-management agreement ("Co-management Agreement") with Bache Capital Management ("Advisor") for the Income and Equity Fund. The Investment Manager is solely responsible for the payment of these fees to the Advisors. In accordance with Expense Limitation agreements with the Company, the Investment Manager is required to waive fees and/or reimburse expenses in amounts necessary to keep the total Fund operating expenses of certain Funds (as a percentage of average net assets) at or below the percentages shown below:
Class A Class C Government Securities Fund 1.65% 2.40% Income and Equity Fund 1.85% 2.60% Growth Fund 2.50% 3.25% Multi-Cap Value Fund 2.50% 3.25%
These agreements may be terminated by either party. In addition, from time to time, the Investment Manager and Advisors may voluntarily waive their management and sub-advisory fees, and/or absorb certain expenses for the Funds. Pursuant to the Expense Limitation Agreements, voluntary waiver of fees and the assumption of expenses by the 26 PACIFIC ADVISORS FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2003 -------------------------------------------------------------------------------- Investment Manager, the following amounts were waived or reimbursed for the period ended June 30, 2003.
Management Expense Fees Reimbursements Government Securities Fund $ 29,503 $ 2,858 Income and Equity Fund 20,185 7,566 Growth Fund 2,557 19,188 Multi-Cap Value Fund 9,589 12,707
With the exception of the Growth Fund and the Multi-Cap Value Fund, these waived and reimbursed expenses may be subject to future recoupment by the Investment Manager. Fund operating expenses may not fall below the current expense levels in subsequent years until the Investment Manager has fully recouped fees forgone and expenses paid or assumed, as each fund will reimburse the Investment Manager in subsequent years during which the Fund's total assets are greater than $20,000,000. Such recoupments, if any, are limited to a period of five years from the date on which the first reimbursement is made to the Investment Manager on a fund by fund basis. As of June 30, 2003, no reimbursements have been made. The cumulative amounts unrecouped by the Investment Manager since the commencement of operations are: Government Securities Fund $946,844 Income and Equity Fund 692,900 Balanced Fund 330,893 Small Cap Fund 217,445
For the period ended June 30, 2003, Pacific Global Fund Distributors, Inc. ("PGFD"), the principal underwriter for the Company, received commissions on sales of capital stock, after deducting amounts allowed to authorized distributors as commissions. The amounts are as follows:
Underwriting Fees Commissions Retained Paid Government Securities Fund $ 515 $ 2,796 Income and Equity Fund 348 1,824 Balanced Fund 862 4,142 Growth Fund 285 1,074 Multi-Cap Value fund 435 2,072 Small Cap Fund 1,237 5,803
PGFD is a wholly-owned subsidiary of the Investment Manager. The Company and the Funds have entered into agreements with Pacific Global Investor Services, Inc. ("PGIS") to provide fund accounting services at the monthly fee of three basis points for the first one hundred million in net assets or a minimum of $1,250. In addition, agreements to provide transfer agent services has also been entered into at a rate of $18.00 per year per open account and $2.00 per year per closed account with minimum charges of $1,250 per month and $750 per month, respectively, for A and C share accounts. PGIS is a wholly owned subsidiary of the Investment Manager. Accounts payable to related parties consists of management fees payable to the Investment Manager and fund accounting and transfer agent fees payable to PGIS. The Company has adopted a plan of distribution, whereby the Funds may pay a service fee to qualified recipients in an amount up to 0.25% and 1.00% per annum of each Fund's daily net net assets for A shares and C shares, respectively. For the period ended June 30, 2003, total service fees were: Government Securities Fund $64,640 Income and Equity Fund 19,449 Balanced Fund 81,215 Growth Fund 1,546 Multi-Cap Value Fund 7,498 Small Cap Fund 8,274
NOTE 4. PURCHASE AND SALES OF SECURITIES The following summarizes purchases and sales of investment securities, other than short-term investments, and aggregate gross unrealized appreciation and depreciation on tax basis by each Fund for the period ended and as of June 30, 2003.
Period ended June 30, 2003 Period ended June 30, 2003 Gross Gross Net Unrealized Cost of Proceeds Unrealized Unrealized Appreciation Purchases From Sales Appreciation Depreciation (Depreciation) Government Securities Fund $9,479,910 $12,226,046 $ 655,914 $ 181,348 $ 474,566 Income and Equity Fund 1,464,147 1,842,116 312,838 216,280 96,558 Balanced Fund 6,873,874 5,907,717 2,903,144 245,560 2,657,584 Growth Fund 180,451 177,588 69,824 117,572 (47,748) Multi-Cap Value Fund 56,050 - 365,782 79,661 286,121 Small Cap Fund 650,795 1,029,243 2,268,191 1,606,283 661,908
27 PACIFIC ADVISORS FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2003 -------------------------------------------------------------------------------- NOTE 5. CAPITAL SHARE TRANSACTIONS
Period ended Year ended June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- GOVERNMENT SECURITIES FUND CLASS A Shares Sold 8,161 $ 85,639 34,514 $ 344,746 Reinvestment of Distributions 3,012 30,912 6,725 67,376 -------- ---------- -------- ---------- 11,173 116,551 41,239 412,122 Shares Repurchased (62,675) (642,331) (275,743) (2,761,975) -------- ---------- -------- ---------- Net Increase (decrease) (51,502) $ (525,780) (234,504) $(2,349,853) ======== ========== ======== ========== CLASS C Shares Sold 330,639 $3,308,086 734,170 $7,228,983 Reinvestment of Distributions 12,620 126,362 14,769 145,398 -------- ---------- -------- ---------- 343,259 3,434,448 748,939 7,374,381 Shares Repurchased (25,794) (257,252) (76,231) (751,517) -------- ---------- -------- ---------- Net Increase 317,465 $3,177,196 672,708 $6,622,864 ======== ========== ======== ==========
Period ended Year ended June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- INCOME AND EQUITY FUND CLASS A Shares Sold 4,554 $ 46,204 21,069 $ 212,796 Reinvestment of Distributions 3,054 30,255 4,889 48,737 -------- ---------- -------- ---------- 7,608 76,459 25,958 261,533 Shares Repurchased (25,334) (252,898) (75,086) (759,225) -------- ---------- -------- ---------- Net Increase (decrease) (17,726) $ (176,439) (49,128) $ (497,692) ======== ========== ======== ========== CLASS C Shares Sold 30,604 $ 294,899 225,675 $2,186,335 Reinvestment of Distributions 5,608 53,798 6,684 64,453 -------- ---------- -------- ---------- 36,212 348,697 232,359 2,250,788 Shares Repurchased (15,945) (154,284) (26,493) (255,649) -------- ---------- -------- ---------- Net Increase 20,267 $ 194,413 205,866 $1,995,139 ======== ========== ======== ==========
28 PACIFIC ADVISORS FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
Period ended Year ended June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- BALANCED FUND CLASS A Shares Sold 25,583 $ 352,604 26,018 $ 361,430 Reinvestment of Distributions - - 21 289 -------- ---------- -------- ---------- 25,583 352,604 26,039 361,719 Shares Repurchased (27,839) (379,918) (83,109) (1,156,538) -------- ---------- -------- ---------- Net Decrease (2,256) $ (27,314) (57,070) $ (794,819) ======== ========== ======== ========== CLASS C Shares Sold 206,107 $2,803,612 597,800 $8,043,311 Reinvestment of Distributions - - 77 1,031 -------- ---------- -------- ---------- 206,107 2,803,612 597,877 8,044,342 Shares Repurchased (31,805) (424,282) (72,607) (962,837) -------- ---------- -------- ---------- Net Increase 174,302 $2,379,330 525,270 $7,081,505 ======== ========== ======== ==========
Period ended Year ended June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- GROWTH FUND CLASS A Shares Sold 9,306 $ 52,995 15,090 $ 93,215 Reinvestment of Distributions - - - - -------- ---------- -------- ---------- 9,306 52,995 15,090 93,215 Shares Repurchased (3,091) (18,279) (14,076) (91,777) -------- ---------- -------- ---------- Net Increase (decrease) 6,215 $ 34,716 1,014 $ 1,438 ======== ========== ======== ========== CLASS C Shares Sold 447 $ 2,474 4,662 $ 29,243 Reinvestment of Distributions - - - - -------- ---------- -------- ---------- 447 2,474 4,662 29,243 Shares Repurchased (2,820) (15,391) (32,761) (198,104) -------- ---------- -------- ---------- Net Decrease (2,373) $ (12,917) (28,099) $ (168,861) ======== ========== ======== ==========
29 PACIFIC ADVISORS FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2003 --------------------------------------------------------------------------------
April 1, 2002 (c) Period ended to June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- MULTI-CAP VALUE FUND CLASS A Shares Sold 14,091 $ 118,296 66,523 $ 603,547 Reinvestment of Distributions - - - - -------- ---------- -------- ---------- 14,091 $ 118,296 66,523 603,547 Shares Repurchased (7,576) (63,979) (3,342) (27,691) -------- ---------- -------- ---------- Net Increase 6,515 $ 54,317 63,181 $ 575,856 ======== ========== ======== ========== CLASS C Shares Sold 12,663 $ 107,524 169,379 $1,538,361 Reinvestment of Distributions - - - - -------- ---------- -------- ---------- 12,663 $ 107,523 169,379 1,538,361 Shares Repurchased (2,413) (19,984) (11,638) (91,930) -------- ---------- -------- ---------- Net Increase 10,250 $ 87,539 157,741 $1,446,431 ======== ========== ======== ==========
Period ended Year ended June 30, 2003 December 31, 2002 -------------------- -------------------- Shares Amount Shares Amount -------- ---------- -------- ---------- SMALL CAP FUND CLASS A Shares Sold 17,258 $ 175,383 60,959 $ 843,468 Reinvestment of Distributions - - 283 2,964 -------- ---------- -------- ---------- 17,258 $ 175,383 61,242 846,432 Shares Repurchased (40,494) (436,181) (105,947) (1,342,073) -------- ---------- -------- ---------- Net Increase (decrease) (23,236) $ (260,798) (44,705) $ (495,641) ======== ========== ======== ========== CLASS C Shares Sold 1,281 $ 11,998 16,170 $ 210,665 Reinvestment of Distributions - - 37 359 -------- ---------- -------- ---------- 1,281 $ 11,998 16,207 211,024 Shares Repurchased (4,933) (48,466) (21,161) (219,488) -------- ---------- -------- ---------- Net Increase (decrease) (3,652) $ (36,468) (4,954) $ (8,464) ======== ========== ======== ==========
(c) Commencement of operations 30 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
GOVERNMENT SECURITIES FUND ------------------------------------------------------------------------------ Class A ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 10.20 $ 10.15 $ 10.88 $ 9.74 $ 10.59 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment income 0.15 0.31 0.31 0.35 0.30 Net realized and unrealized gains (losses) on securities 0.17 (0.04) (0.37) 1.41 (0.84) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 0.32 0.27 (0.06) 1.76 (0.54) ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income (0.12) (0.21) (0.29) (0.34) (0.29) From net capital gains - (0.01) (0.38) (0.28) (0.02) ----------------- ------------ ------------ ------------ ------------ Total distributions (0.12) (0.22) (0.67) (0.62) (0.31) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 10.40 $ 10.20 $ 10.15 $ 10.88 $ 9.74 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 3.15% 2.78% (0.49)% 18.42% (5.04)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 3,671 $ 4,125 $ 6,487 $ 6,071 $ 5,220 Ratio of net investment income to average net assets With expense reductions 1.20% 2.57% 3.01% 3.46% 2.99% Without expense reductions 1.01% 1.42% 2.22% 2.08% 1.02% Ratio of expenses to average net assets With expense reductions 0.82% 1.65% 1.65% 1.65% 1.60% Without expense reductions 1.01% 2.80% 2.43% 3.03% 3.57% Fund portfolio turnover rate 71.49% 212.10% 75.81% 22.21% 147.01%
Class C ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 9.95 $ 9.96 $ 10.74 $ 9.63 $ 10.50 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment income 0.08 0.23 0.25 0.29 0.27 Net realized and unrealized gains (losses) on securities 0.20 (0.04) (0.38) 1.38 (0.88) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 0.28 0.19 (0.13) 1.67 (0.61) ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income (0.10) (0.19) (0.27) (0.28) (0.24) From net capital gains - (0.01) (0.38) (0.28) (0.02) ----------------- ------------ ------------ ------------ ------------ Total distributions (0.10) (0.20) (0.65) (0.56) (0.26) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 10.13 $ 9.95 $ 9.96 $ 10.74 $ 9.63 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 2.78% 1.98% (1.21)% 17.57% (5.77)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 14,271 $ 10,858 $ 4,172 $ 2,682 $ 1,923 Ratio of net investment income to average net assets With expense reductions 0.88% 1.90% 2.25% 2.79% 2.18% Without expense reductions 0.68% 0.81% 1.28% 1.23% 0.22% Ratio of expenses to average net assets With expense reductions 1.18% 2.40% 2.40% 2.36% 2.38% Without expense reductions 1.38% 3.49% 3.37% 3.92% 4.34%
-------------------------------------------------------------------------------- (a) The Fund's maximum sales charge is not included in the total return computation. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 31 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
INCOME AND EQUITY FUND ------------------------------------------------------------------------------ Class A ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 9.91 $ 10.31 $ 10.43 $ 10.39 $ 10.74 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment Income 0.19 0.39 0.42 0.52 0.43 Net realized and unrealized gains (losses) on securities 0.20 (0.49) (0.14) 0.07 (0.39) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 0.39 (0.10) 0.28 0.59 0.04 ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income (0.19) (0.30) (0.40) (0.55) (0.37) From net capital gains - - - - (0.02) ----------------- ------------ ------------ ------------ ------------ Total distributions (0.19) (0.30) (0.40) (0.55) (0.39) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 10.11 $ 9.91 $ 10.31 $ 10.43 $ 10.39 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 3.91% (0.92)% 2.63% 6.03% 0.19% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 1,980 $ 2,117 $ 2,708 $ 2,217 $ 2,664 Ratio of net investment income to average net assets With expense reductions 1.71% 3.43% 4.28% 4.67% 4.08% Without expense reductions 1.17% 1.75% 2.66% 2.76% 1.86% Ratio of expenses to average net assets With expense reductions 0.92% 1.85% 1.85% 1.83% 1.85% Without expense reductions 1.46% 3.53% 3.47% 3.75% 4.06% Fund portfolio turnover rate 32.21% 91.50% 43.38% 21.83% 37.34%
Class C ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 9.60 $ 10.03 $ 10.26 $ 10.15 $ 10.62 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment Income 0.13 0.34 0.42 0.35 0.41 Net realized and unrealized gains (losses) on securities 0.21 (0.51) (0.22) 0.10 (0.43) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 0.34 (0.17) 0.20 0.45 (0.02) ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income (0.15) (0.26) (0.43) (0.34) (0.43) From net capital gains - - - - (0.02) ----------------- ------------ ------------ ------------ ------------ Total distributions (0.15) (0.26) (0.43) (0.34) (0.45) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 9.79 $ 9.60 $ 10.03 $ 10.26 $ 10.15 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 0.98% (1.60)% 1.81% 4.32% (0.02)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 3,548 $ 3,284 $ 1,365 $ 815 $ 1,850 Ratio of net investment income to average net assets With expense reductions 1.32% 2.95% 3.58% 3.90% 3.45% Without expense reductions 0.79% 1.15% 1.65% 1.88% 1.65% Ratio of expenses to average net assets With expense reductions 1.29% 2.60% 2.60% 2.55% 2.51% Without expense reductions 1.83% 4.39% 4.54% 4.57% 4.30%
-------------------------------------------------------------------------------- (a) The Fund's maximum sales charge is not included in the total return computation. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 32 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
BALANCED FUND ------------------------------------------------------------------------------ Class A ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 13.69 $ 14.42 $ 15.22 $ 14.04 $ 12.69 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment income 0.09 0.06 0.10 0.21 0.12 Net realized and unrealized gains (losses) on securities 1.07 (0.79) (0.81) 1.19 1.47 ----------------- ------------ ------------ ------------ ------------ Total from investment operations 1.16 (0.73) (0.71) 1.40 1.59 ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income - - (0.09) (0.15) (0.12) From net capital gains - - - (0.07) (0.12) ----------------- ------------ ------------ ------------ ------------ Total distributions - - (0.09) (0.22) (0.24) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 14.85 $ 13.69 $ 14.42 $ 15.22 $ 14.04 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 8.47% (5.05)% (4.69)% 9.99% 12.61% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 4,281 $ 3,977 $ 5,013 $ 5,942 $ 7,008 Ratio of net investment income to average net assets With expense reductions 0.62% 0.30% 0.55% 1.15% 0.91% Without expense reductions 0.62% 0.30% 0.55% 0.74% 0.51% Ratio of expenses to average net assets With expense reductions 1.37% 3.47% 3.22% 2.88% 3.22% Without expense reductions 1.37% 3.47% 3.22% 3.28% 3.62% Fund portfolio turnover rate 33.88% 57.74% 42.20% 43.30% 52.47%
Class C ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 13.40 $ 14.18 $ 14.99 $ 13.91 $ 12.61 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment income 0.04 0.01 0.01 0.07 0.03 Net realized and unrealized gains (losses) on securities 1.02 (0.79) (0.80) 1.17 1.42 ----------------- ------------ ------------ ------------ ------------ Total from investment operations 1.06 (0.78) (0.79) 1.24 1.45 ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income - - (0.02) (0.09) (0.03) From net capital gains - - - (0.07) (0.12) ----------------- ------------ ------------ ------------ ------------ Total distributions - - (0.02) (0.16) (0.15) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 14.46 $ 13.40 $ 14.18 $ 14.99 $ 13.91 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 7.91% (5.49)% (5.25)% 8.92% 11.57% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 17,671 $ 14,035 $ 7,404 $ 4,559 $ 1,552 Ratio of net investment income to average net assets With expense reductions 0.24% (0.16)% (0.08)% 0.39% 0.01% Without expense reductions 0.24% (0.16)% (0.08)% (0.01)% (0.39)% Ratio of expenses to average net assets With expense reductions 1.74% 4.15% 3.99% 3.63% 4.07% Without expense reductions 1.74% 4.15% 3.99% 4.03% 4.47%
-------------------------------------------------------------------------------- (a) The Fund's maximum sales charge is not included in the total return computation. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 33 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
GROWTH FUND ----------------------------------------------------------------------------------- Class A ----------------------------------------------------------------------------------- For the six months For the year ended December 31, May 3, 1999(c) ended ------------------------------------------- to June 30, 2003 2002 2001 2000 December 31, 1999 ----------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 5.48 $ 7.04 $ 9.83 $ 11.67 $ 10.00 ----------------- ------------ ------------ ------------ ---------------- Income from investing operations Net investment expense (0.03) (0.12) (0.11) (0.01) (0.02) Net realized and unrealized gains (losses) on securities 0.72 (1.44) (2.68) (1.83) 1.69 ----------------- ------------ ------------ ------------ ---------------- Total from investment operations 0.69 (1.56) (2.79) (1.84) 1.67 ----------------- ------------ ------------ ------------ ---------------- Less distributions From net investment income - - - - - From net capital gains - - - - - ----------------- ------------ ------------ ------------ ---------------- Total distributions - - - - - ----------------- ------------ ------------ ------------ ---------------- Net asset value, end of period $ 6.17 $ 5.48 $ 7.04 $ 9.83 $ 11.67 ----------------- ------------ ------------ ------------ ---------------- TOTAL INVESTMENT RETURN (b) 12.59% (22.16)% (28.38)% (15.77)% 16.70% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 560 $ 464 $ 588 $ 825 $ 328 Ratio of net investment income to average net assets With expense reductions (0.84)% (1.97)% (1.26)% (0.24)% (0.27)%(a) Without expense reductions (3.98)% (8.25)% (5.44)% (3.98)% (8.40)%(a) Ratio of expenses to average net assets With expense reductions 1.27% 2.50% 2.44% 2.50% 1.63%(a) Without expense reductions 4.41% 8.77% 6.62% 6.23% 9.75%(a) Fund portfolio turnover rate 30.24% 78.06% 57.61% 16.00% 0.00%
Class C ----------------------------------------------------------------------------------- For the six months For the year ended December 31, May 3, 1999(c) ended ------------------------------------------- to June 30, 2003 2002 2001 2000 December 31, 1999 ----------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 5.33 $ 6.89 $ 9.70 $ 11.61 $ 10.00 ----------------- ------------ ------------ ------------ ---------------- Income from investing operations Net investment expense (1.68) (0.44) (0.22) (0.06) (0.04) Net realized and unrealized gains (losses) on securities 2.27 (1.12) (2.59) (1.85) 1.65 ----------------- ------------ ------------ ------------ ---------------- Total from investment operations 0.59 (1.56) (2.81) (1.91) 1.61 ----------------- ------------ ------------ ------------ ---------------- Less distributions From net investment income - - - - - From net capital gains - - - - - ----------------- ------------ ------------ ------------ ---------------- Total distributions - - - - - ----------------- ------------ ------------ ------------ ---------------- Net asset value, end of period $ 5.92 $ 5.33 $ 6.89 $ 9.70 $ 11.61 ----------------- ------------ ------------ ------------ ---------------- TOTAL INVESTMENT RETURN (b) 11.07% (22.64)% (28.97)% (16.45)% 16.10% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 197 $ 190 $ 439 $ 728 $ 278 Ratio of net investment income to average net assets With expense reductions (1.21)% (2.75)% (2.04)% (0.97)% (0.61)%(a) Without expense reductions (4.36)% (8.67)% (5.59)% (4.04)% (8.74)%(a) Ratio of expenses to average net assets With expense reductions 1.64% 3.25% 3.23% 3.25% 2.16%(a) Without expense reductions 4.79% 9.17% 6.77% 6.32% 10.28%(a)
-------------------------------------------------------------------------------- (a) Not annualized (b) The Fund's maximum sales charge is not included in the total return computation. (c) Commencement of operations SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 34 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
MULTI-CAP VALUE FUND -------------------------------------- Class A -------------------------------------- For the six months April 1, 2002(c) ended to June 30, 2003 December 31, 2002 -------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 7.95 $ 10.00 ----------------- ---------------- Income from investing operations Net investment expense (0.07) (0.07) Net realized and unrealized gains (losses) on securities 1.81 (1.98) ----------------- ---------------- Total from investment operations 1.74 (2.05) ----------------- ---------------- Less distributions From net investment income - - From net capital gains - - ----------------- ---------------- Total distributions - - ----------------- ---------------- Net asset value, end of period $ 9.69 $ 7.95 ----------------- ---------------- TOTAL INVESTMENT RETURN (b) 21.89% (20.50)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 675 $ 503 Ratio of net investment income to average net assets With expense reductions (0.98)% (1.09)%(a) Without expense reductions (2.13)% (4.27)%(a) Ratio of expenses to average net assets With expense reductions 1.24% 1.88%(a) Without expense reductions 2.39% 5.06%(a) Fund portfolio turnover rate 0.00% 6.22%(a)
Class C -------------------------------------- For the six months April 1, 2002 (c) ended to June 30, 2003 December 31, 2002 -------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 7.91 $ 10.00 ----------------- ---------------- Income from investing operations Net investment expense 0.31 (0.52) Net realized and unrealized gains (losses) on securities 1.40 (1.57) ----------------- ---------------- Total from investment operations 1.71 (2.09) ----------------- ---------------- Less distributions From net investment income - - From net capital gains - - ----------------- ---------------- Total distributions - - ----------------- ---------------- Net asset value, end of period $ 9.62 $ 7.91 ----------------- ---------------- TOTAL INVESTMENT RETURN (b) 21.62% (20.90)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 1,616 $ 1,247 Ratio of net investment income to average net assets With expense reductions (1.35)% (1.66)%(a) Without expense reductions (2.50)% (4.60)%(a) Ratio of expenses to average net assets With expense reductions 1.61% 2.44%(a) Without expense reductions 2.76% 5.38%(a)
-------------------------------------------------------------------------------- (a) Not annualized (b) The Fund's maximum sales charge is not included in the total return computation. (c) Commencement of operations SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 35 PACIFIC ADVISORS FUND INC. FINANCIAL HIGHLIGHTS (UNAUDITED) (For a share outstanding throughout the period) --------------------------------------------------------------------------------
SMALL CAP FUND ------------------------------------------------------------------------------ Class A ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 10.32 $ 15.23 $ 13.42 $ 11.98 $ 14.23 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment expense (0.41) (0.85) (0.42) (0.79) (0.61) Net realized and unrealized gains (losses) on securities 2.69 (4.05) 3.11 2.32 (1.63) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 2.28 (4.90) 2.69 1.53 (2.24) ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income - - - - - From net capital gains - (0.01) (0.88) (0.09) (0.01) ----------------- ------------ ------------ ------------ ------------ Total distributions - (0.01) (0.88) (0.09) (0.01) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 12.60 $ 10.32 $ 15.23 $ 13.42 $ 11.98 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 22.09% (32.20)% 20.23% 12.83% (15.75)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 5,526 $ 4,763 $ 7,715 $ 6,541 $ 6,976 Ratio of net investment income to average net assets With expense reductions (1.86)% (4.01)% (3.44)% (3.20)% (3.36)% Without expense reductions (1.86)% (4.01)% (3.44)% (3.20)% (3.36)% Ratio of expenses to average net assets With expense reductions 2.05% 4.52% 3.74% 3.58% 3.92% Without expense reductions 2.05% 4.52% 3.74% 3.58% 3.92% Fund portfolio turnover rate 11.79% 23.39% 43.89% 44.82% 68.18%
Class C ------------------------------------------------------------------------------ For the six months For the year ended December 31, ended ---------------------------------------------------------- June 30, 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 9.65 $ 14.47 $ 13.04 $ 11.93 $ 14.24 ----------------- ------------ ------------ ------------ ------------ Income from investing operations Net investment expense (0.37) (0.88) (0.08) (0.78) (0.18) Net realized and unrealized gains (losses) on securities 2.47 (3.93) 2.39 1.98 (2.12) ----------------- ------------ ------------ ------------ ------------ Total from investment operations 2.10 (4.81) 2.31 1.20 (2.30) ----------------- ------------ ------------ ------------ ------------ Less distributions From net investment income - - - - - From net capital gains - (0.01) (0.88) (0.09) (0.01) ----------------- ------------ ------------ ------------ ------------ Total distributions - (0.01) (0.88) (0.09) (0.01) ----------------- ------------ ------------ ------------ ------------ Net asset value, end of period $ 11.75 $ 9.65 $ 14.47 $ 13.04 $ 11.93 ----------------- ------------ ------------ ------------ ------------ TOTAL INVESTMENT RETURN (a) 21.76% (33.27)% 17.91% 10.11% (16.16)% RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 618 $ 543 $ 886 $ 454 $ 459 Ratio of net investment income to average net assets With expense reductions (2.23)% (5.47)% (5.48)% (5.52)% (3.78)% Without expense reductions (2.23)% (5.47)% (5.48)% (5.52)% (3.78)% Ratio of expenses to average net assets With expense reductions 2.42% 5.97% 5.78% 5.90% 4.38% Without expense reductions 2.42% 5.97% 5.78% 5.90% 4.38%
-------------------------------------------------------------------------------- (a) The Fund's maximum sales charge is not included in the total return computation. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 36 PACIFIC ADVISORS FUND INC. DIRECTORS AND OFFICERS --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE --------------------------------------------------------------------------------------------------------------------------------- Thomas M. Brinker (69) Director Since 1992 1970 - Present: Chairman 6 Pacific Advisors None 1 North Ormond Avenue Fringe Benefits,Inc/ Mutual Funds Havertown, PA 19083 Financial Foresight, Ltd., d/b/a The Brinker Organization (Financial Services Companies) Victoria Breen (52) Director Since 1992 1992 - Present: Assistant 6 Pacific Advisors None 603 West Ojai Avenue and Assistant Secretary and Director, Mutual Funds Ojai, CA 93023 Secretary Pacific Global Investment Management Company, Pacific Global Investor Services, Inc. 1994 - Present: General Agent, Transamerica Life Companies and Registered Principal, Transamerica Financial Resources, Inc. 1986 - Present: Branch Manager, Derby & Derby Inc. (Financial Services Company) Thomas H. Hanson (53) Vice Since 1992 1992 - Present: Executive 6 Pacific Advisors None 206 North Jackson Street President Vice President and Mutual Funds Suite 301 and Secretary Director, Pacific Global Glendale, CA 91206 Investment Management Company; President and Director, Pacific Global Fund Distributors, Inc.; President and Director, Pacific Global Investor Services, Inc. 1997 - 2001: Vice President and Director, Pacific Global Investment Fund Ltd. 1993 - Present: Owner, Director, Chairman, President and CEO of TriVest Capital Management, Inc.
37 PACIFIC ADVISORS FUND INC. DIRECTORS AND OFFICERS --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE --------------------------------------------------------------------------------------------------------------------------------- Catherine L. Henning (25) Assistant Since 2002 2002 - Present: Assistant 6 Pacific Advisors None 206 North Jackson Street Secretary Secretary, Pacific Global Mutual Funds Suite 301 Investment Management Glendale, CA 91206 Company, Pacific Global Fund Distributors, Inc. and Pacific Global Investor Services, Inc. 1999 - Present: Marketing Coordinator, Pacific Global Investment Management Company George A. Henning (56) President and Since 1992 1991 - Present: Chairman, 6 Pacific Advisors None 206 North Jackson Street Chairman President, and Director, Mutual Funds Suite 301 Pacific Global Investment Glendale, CA 91206 Management Company; Chairman and Director, Pacific Global Fund Distributors, Inc.; Chairman and Director, Pacific Global Investor Services, Inc. 1997 - 2001: Chairman and Director, Pacific Global Investment Fund, Ltd. Barbara A. Kelley (50) Treasurer Since 2001 2001 - Present: Executive 6 Pacific Advisors None 206 North Jackson Street Vice President, Mutual Funds Suite 301 Treasurer, Pacific Global Glendale, CA 91206 Investment Management Company; Treasurer and Director, Pacific Global Fund Distributors, Inc.; President and Treasurer, Pacific Global Investor Services, Inc. 1999 - Present: Director, Pacific Global Investment Management Company 1990 - 1999: President, Transamerica Financial Resources
38 PACIFIC ADVISORS FUND INC. DIRECTORS AND OFFICERS --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN POSITIONS(S) TERM OF OFFICES PRINCIPAL OCCUPATIONS FUND COMPLEX HELD WITH THE AND LENGTH OF DURING OVERSEEN BY OTHER DIRECTORSHIPS NAME, ADDRESS AND AGE COMPANY TIME SERVED PAST 5 YEARS TRUSTEE HELD BY TRUSTEE --------------------------------------------------------------------------------------------------------------------------------- L. Michael Haller (59) Director Since 1992 2002 - Present: Executive 6 Pacific Advisors None 5924 Colodny Vice President, Sammy Mutual Funds Agoura, CA 91301 Studios, Inc. (Entertainment Company) 2001 - 2002: Vice President and Executive Producer, Electronic Arts; President, International Media Group, Inc. (Entertainment Company) 1978 - 2001: Consultant, Asahi Broadcasting Corp. (Entertainment Company) Takashi Makinodan, Ph.D Director Since 1995 1992 - Present: Director, 6 Pacific Advisors None (78) Medical Treatment Mutual Fund 107 S. Barrington Place Effectiveness Program Los Angeles, CA 90049 (MEDTEP), Center on Asian and Pacific Islanders 1991 - Present: Associate Director of Research, Geriatric Research Education Clinic Center, VA Medical Center Gerald E. Miller (73) Director Since 1992 1992 - Present: Retired 6 Pacific Advisors None 5262 Bridgetown Place Mutual Funds Westlake Village, CA 91362 Louise K. Taylor, Ph.D (57) Director Since 1992 1991 - Present: 6 Pacific Advisors None 325 East Huntington Dr. Superintendent, Monrovia Mutual Funds Monrovia, CA 91016 Unified School District
Each director is elected to serve until the next annual shareholders meeting and until his or her successor is elected or appointed. The Companydoes not hold regular annual shareholders meetings to elect Directors. Vacancies on the Board can be filled by the action of a majority of the Directors, provided that at least two-thirds of the Directors have been elected by the shareholders. Certain Directors are considered "interested persons" of the Company as defined in the 1940 Act. All directors oversee all five Funds of the Company. 39 PACIFIC ADVISORS Fund Inc [GRAPHIC] DIRECTORS GEORGE A. HENNING, CHAIRMAN VICTORIA L. BREEN THOMAS M. BRINKER L. MICHAEL HALLER III TAKASHI MAKINODAN, PH.D. GERALD E. MILLER LOUISE K. TAYLOR, PH.D. OFFICERS GEORGE A. HENNING, PRESIDENT THOMAS H. HANSON, VICE PRESIDENT AND SECRETARY VICTORIA L. BREEN, ASSISTANT SECRETARY CATHERINE L. HENNING, ASSISTANT SECRETARY BARBARA A. KELLEY, TREASURER INVESTMENT MANAGER PACIFIC GLOBAL INVESTMENT MANAGEMENT COMPANY 206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206 BALANCED FUND ADVISER BACHE CAPITAL MANAGEMENT, INC. 206 NORTH JACKSON STREET, SUITE 201 GLENDALE, CALIFORNIA 92106 GOVERNMENT SECURITIES FUND ADVISER SPECTRUM ASSET MANAGEMENT, INC. 1301 DOVE STREET, SUITE 970 NEWPORT BEACH, CALIFORNIA 92660 MULTI-CAP VALUE FUND ADVISER MEYERS CAPITAL MANAGEMENT LLC 8901 WILSHIRE BOULEVARD BEVERLY HILLS, CALIFORNIA 90211 TRANSFER AGENT AND ADMINISTRATOR PACIFIC GLOBAL INVESTOR SERVICES, INC. 206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206 DISTRIBUTOR PACIFIC GLOBAL FUND DISTRIBUTORS, INC. 206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206 (800) 989-6693 This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current effective prospectus of the Fund, which contains information concerning the investment policies of the Fund as well as other pertinent information. PACIFIC GLOBAL FUND DISTRIBUTORS, INC. [GRAPHIC] 206 NORTH JACKSON STREET, SUITE 301 GLENDALE, CALIFORNIA 91206
pg101.898 Item 1. Report to Shareholders (filed herewith). Item 2. Not applicable. Item 3. Not applicable. Item 4. Not applicable. Item 5. Not applicable. Item 6. (Reserved) Item 7. (Reserved) Item 8. Not applicable. Item 9. Controls and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of the most recent evaluation as indicated, including no significant deficiencies or material weaknesses that required corrective action. Item 10. Exhibits (a)(1) Not applicable. (a)(2) Certifications required by Item 10(a) of Form N-CSR and Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). (b) Certification required by Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Pacific Global Fund Inc. d/b/a Pacific Advisors Fund Inc. By: /s/ George A. Henning --------------------- George A. Henning Chairman, Pacific Advisors Fund Inc. Date: September 2, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ George A. Henning --------------------- George A. Henning Chief Executive Officer Date: September 2, 2003 By: /s/ Barbara A. Henning ---------------------- Barbara A. Henning Chief Financial Officer Date: September 2, 2003