ASSUMPTION

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                                                            Exhibit (h)(12)
    

                                   ASSUMPTION


                  AGREEMENT made as of April 28, 1998 among BANK OF AMERICA
NATIONAL TRUST AND SAVINGS ASSOCIATION, a banking institution chartered under
the laws of the United States ("Bank of America"), XXXXXXXXX, XXXXXXXX & COMPANY
INVESTMENT MANAGEMENT, L.P., a California limited partnership registered as an
investment adviser pursuant to the Investment Advisers Act of 1940 ("Xxxxxxxxx
Xxxxxxxx"), and PFPC Inc., a Delaware corporation ("PFPC"). Bank of America and
Xxxxxxxxx Xxxxxxxx are each indirect, wholly-owned subsidiaries of BankAmerica
Corporation, a registered bank holding company.

                  WHEREAS, Pacific Horizon Funds, Inc. (the "Company") is
registered as an open-end management investment company under the Investment
Company Act of 1940 (the "1940 Act");

                  WHEREAS, Bank of America has been previously appointed as the
Company's administrator pursuant to an Administration Agreement dated September
15, 1997 (the "Administration Agreement") and PFPC has been previously appointed
as the Company's sub-administrator pursuant to a Sub-Administration Agreement
dated September 15, 1997 (the "Sub-Administration Agreement");

                  WHEREAS, Xxxxxxxxx Xxxxxxxx pursuant to as Assumption
Agreement dated March 1, 1998 assumed the rights, responsibilities, liabilities
and obligations of Bank of America under the Administration and
Sub-Administration Agreements;

                  WHEREAS, Bank of America and Xxxxxxxxx Xxxxxxxx desire to have
Bank of America assume the rights, responsibilities, liabilities and obligations
of Xxxxxxxxx Xxxxxxxx under the Administration and Sub-Administration
Agreements; and

                  NOW THEREFORE, the parties hereto, intending to be legally
bound, agree as follows:

                  1. Bank of America hereby assumes all rights,
responsibilities, liabilities and obligations of Xxxxxxxxx Xxxxxxxx under the
Administration and Sub-Administration Agreements.

                  2. Each party hereby agrees that this Assumption shall be
attached to and made a part of the Administration and Sub-Administration
Agreements.
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                  IN WITNESS WHEREOF, intending to be legally bound hereby, the
parties hereto have caused this instrument to be executed by their officers
designated below as of the day and year first above written.


                                         BANK OF AMERICA NATIONAL TRUST AND
                                         SAVINGS ASSOCIATION


                                         By:/s/Signature Illegible
                                            -----------------------------
                                            (Authorized Officer)


                                         XXXXXXXXX, XXXXXXXX & COMPANY
                                         INVESTMENT MANAGEMENT, L.P.


                                         By:/s/Xxxx Xxxxx
                                            -----------------------------
                                            (Authorized Officer)


                                         PFPC INC.


                                         By:/s/Xxx X. Xxxxxxxx
                                            -----------------------------
                                            (Authorized Officer)



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