-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PPofmD/wlTbe3KOlTZwHr376zEHSJ8Pi7b3zO8LTCs4clADfI9AdeVJjF3NbQZkq 33Foa6/PWEGJzOfcQBL0/w== 0000749748-98-000009.txt : 19980609 0000749748-98-000009.hdr.sgml : 19980609 ACCESSION NUMBER: 0000749748-98-000009 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980608 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH ASSETS TRUST CENTRAL INDEX KEY: 0000749748 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 136844974 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04066 FILM NUMBER: 98644088 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE #300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 1: 380 MADISON AVENUE STREET 2: #2300 CITY: NEW YORK STATE: NY ZIP: 10017 N-30D 1 INVESTMENT ADVISER Pacific Century Trust a division of Bank of Hawaii Financial Plaza of the Pacific * P.O. Box 3170 Honolulu, Hawaii 96802 ADMINISTRATOR Aquila Management Corporation 380 Madison Avenue, Suite 2300 * New York, New York 10017 BOARD OF TRUSTEES Lacy B. Herrmann, Chairman Vernon R. Alden Arthur K. Carlson William M. Cole Thomas W. Courtney Richard W. Gushman, II Stanley W. Hong Theodore T. Mason Russell K. Okata Douglas Philpotts Oswald K. Stender OFFICERS Lacy B. Herrmann, President Diana P. Herrmann, Senior Vice President Charles E. Childs, III, Vice President Sherri Foster, Vice President Rose F. Marotta, Chief Financial Officer Richard F. West, Treasurer Edward M.W. Hines, Secretary DISTRIBUTOR Aquila Distributors, Inc. 380 Madison Avenue, Suite 2300 * New York, New York 10017 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC Inc. 400 Bellevue Parkway * Wilmington, Delaware 19809 CUSTODIAN Bank One Trust Company, N.A. 100 East Broad Street * Columbus, Ohio 43271 INDEPENDENT AUDITORS KPMG Peat Marwick LLP 345 Park Avenue * New York, New York 10154 Further information is contained in the Prospectus, which must precede or accompany this report. ANNUAL REPORT MARCH 31, 1998 THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST PACIFIC CAPITAL CASH ASSETS TRUST PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST [Logo of The Pacific Capital Funds of Cash Assets Trust: Side view of a standing lion above a thick rope] A CASH MANAGEMENT INVESTMENT THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST ANNUAL REPORT May 15, 1998 Dear Investor: We are pleased to provide you with the Annual Report for The Pacific Capital Funds of Cash Assets Trust (the "Trust") for the fiscal year ended March 31, 1998. The enclosed Annual Report includes the three portfolios of Cash Assets Trust: Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Pacific Capital U.S. Treasuries Cash Assets Trust and its two classes of shares: Original Shares and Service Shares. Each of the three portfolios were specifically created to meet the short-term investment needs of Hawaii investors and others. * * * * * * * The current report period was marked by increasing volatility in the world financial markets. Most significant was the impact of the Asian financial crisis, which caused currency values to plunge and sent financial markets into turmoil. It is hard to believe the magnitude of the currency depreciation that has taken place in various countries versus the U.S. dollar. The currency deterioration against the U.S. dollar have ranged from 10% to well over 70% with various countries around the world. The impact of the Asian crisis on the U.S. economy and its continued expansion remains a factor that can not be ignored. Thirty percent of U.S. exports go to Asia. Now, after the currency devaluations, consumers in that region have significantly less in terms of purchasing power. As a result, some U.S. firms could find demand for their exports weakening while at the same time cheaper goods coming from Asia should force U.S. competitors to lower their prices. With fewer U.S. exports and greater imports, the Federal Reserve is hoping the U.S. economy will slow on its own from its torrid pace and that the current low level of inflation we have experienced over the past several years will continue. The lack of monetary action policy by the Fed during the Asian financial crisis kept short-term interest relatively stable during the Trust's most recent fiscal year. As mentioned in previous report letters, yields on money market funds, like the Trust, move in concert with rate policies pursued by the Federal Reserve. Each of the Pacific Capital Funds of Cash Assets Trust continues to provide competitive returns to alternative short-term investment opportunities without wavering from their conservative investment guidelines. Since the Trust's inception, the Trust's Investment Adviser, Pacific Century Trust (formerly known as Hawaiian Trust Company, Ltd.) has acted with a high level of prudence in examining the creditworthiness and marketability of all issuers of securities utilized in each of the Trust's investment portfolios. Investors in the Trust can take comfort in knowing that those securities in each portfolio are chosen on the basis of possessing high quality and minimal credit risk. This is to ensure maximum safety for investors' cash reserves. * * * * * * * On behalf of the Board of Trustees, the Investment Adviser and the Administrator of the Trust, we are pleased to announce the name change and expanded investment capabilities of Pacific Capital U.S. Treasuries Cash Assets Trust. Effective April 1, 1998, the portfolio is now called Pacific Capital U.S. Government Securities Cash Assets Trust. In addition to investing in direct obligations of the U.S. Treasury, the portfolio will invest in other obligations issued or guaranteed by agencies or instrumentalities of the United States Government (with remaining maturities of one year or less) and certain repurchase agreements secured by U.S. Government securities. The Trust's management intends to replace a significant portion of its U.S. Government repurchase agreements with U.S. Government agency notes in order to seek a higher yield while continuing to pass along income that is free from state income taxes for shareholders. Your use of The Pacific Capital Funds of Cash Assets Trust is greatly appreciated. You can be assured that every effort will be expended by all associated with the Trust to merit your continued confidence. Sincerely, /s/ Lacy B. Herrmann Lacy B. Herrmann President and Chairman of the Board of Trustees KPMG Peat Marwick LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Trustees and Shareholders of Cash Assets Trust: We have audited the accompanying statement of assets and liabilities of The Pacific Capital Funds of Cash Assets Trust (the "Trust") (comprised of Cash Fund, Tax-Free Fund and Treasuries Fund), including the statements of investments, as of March 31, 1998, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 1998, by correspondence with the custodian. An audit also includes assessing the accounting principles used, and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trust as of March 31, 1998, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP New York, New York May 8, 1998 PACIFIC CAPITAL CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 1998 FACE AMOUNT COMMERCIAL PAPER (56.6%) VALUE Automotive (3.7%) $20,000,000 Ford Motor Credit Co., 5.46%, 5/29/98 $ 19,822,778 Banking/Credit Union (9.3%) 10,000,000 Banc-Corp Andina Deforments, 5.43%, 5/08/98 9,943,061 Letter of Credit-Barclay's Bank PLC 20,000,000 Byver-Demir Funding, 5.07%, 4/13/98 19,963,467 Letter of Credit-Bayerishe Vereinsbank 20,000,000 J.P. Morgan &Co. Inc., 4.82%, 4/08/98 19,978,611 49,885,139 Borrowing Conduit (3.8%) 20,000,000 Abbey National North American Corp., 4.89%, 4/09/98 19,975,556 Brokerage (7.5%) 20,000,000 Goldman Sachs, 5.25%, 4/20/98 19,941,839 20,000,000 Merrill Lynch &Company, Inc., 5.19%, 4/17/98 19,951,111 39,892,950 Chemicals (3.7%) 20,000,000 DuPont (E.I.) de Nemours &Co., 5.24%, 4/29/98 19,916,000 Finance (21.0%) 20,000,000 A.I. Credit Corp., 5.07%, 4/15/98 19,957,844 20,000,000 American General Corp., 5.46%, 5/27/98 19,828,578 20,000,000 Associates First Capital, 5.53%, 4/02/98 19,996,928 20,000,000 General Electric Capital Corp., 5.28%, 5/01/98 19,909,500 15,000,000 National Rural Utilities, 5.47%, 6/11/98 14,837,588 17,223,000 Transamerica Finance, 5.42%, 5/06/98 17,130,235 111,660,673 Food & Beverage (3.8%) 20,000,000 Coca-Cola Company, 4.79%, 4/08/98 19,978,728 Oil &Gas (3.8%) 20,000,000 Texaco Inc., 3.69%, 4/03/98 19,993,844 Total Commercial Paper (Cost $301,125,668) 301,125,668 U.S. TREASURY BILLS (9.3%) 30,000,000 5.23%, due 4/23/98 29,903,734 20,000,000 5.11%, due 7/23/98 19,684,856 Total U.S. Treasury Bills (Cost $49,588,590) 49,588,590 NOTES (19.7%) U.S. Government Agencies (16.9%) 20,000,000 Federal Home Loan Bank, 5.30%, 5/06/98 19,879,278 20,000,000 Federal Home Loan Bank, 5.21%, 5/12/98 19,894,610 30,000,000 Farmer Mac, 4.97%, 4/10/98 29,959,575 20,000,000 Federal National Mortgage Association, 5.31%, 6/12/98 19,786,800 89,520,263 Insurance (2.8%) 15,000,000 Providian Life and Health Insurance Company, Variable Rate Note, 5.80%, 6/30/98(1) 15,000,000 Total Notes (Cost $104,520,263) 104,520,263 REPURCHASE AGREEMENTS (14.9%) 29,456,000 SBC Warburg, Dillon, Read, Inc., 5.80%, due 4/01/98 29,456,000 (Proceeds of $29,460,745 to be received at maturity) Collateral: $29,529,000 U.S. Treasury Notes 5.625% due 11/30/98 Collateral Market Value $30,045,120 25,000,000 BZW Securities, Inc., 5.75%, due 4/01/98 25,000,000 (Proceeds of $25,003,993 to be received at maturity) Collateral: $24,800,000 U.S. Treasury Notes 5.875% due 11/15/05 Collateral Market Value $25,500,000 25,000,000 Merrill Lynch Government Securities Inc., 5.75%, due 4/01/98 25,000,000 (Proceeds of $25,003,993 to be received at maturity) Collateral $25,310,000 U.S. Treasury Notes 5.875% due 02/28/99 Collateral Market Value $25,500,000 Total Repurchase Agreements (cost $79,456,000) 79,456,000 Total Investments (cost $534,690,521*) 100.5% 534,690,521 Liabilities in excess of other assets (0.5) (2,492,727) Net Assets 100.0% $532,197,794 * Cost for Federal tax purposes is identical. (1) Illiquid security. The security is considered illiquid because it may not be sold, and may be redeemed only upon at least ninety days' notice to the issuer.
See accompanying notes to financial statements. PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 1998 RATING FACE MOODY'S/ AMOUNT BONDS AND NOTES (99.5%) S&P VALUE ARIZONA (0.9%) Arizona State Transportation Board Highway Revenue Bonds, Refunding Bonds, $1,000,000 4.25%, 07/01/98 Aa/AAA $ 1,001,081 CALIFORNIA (0.9%) County of San Mateo, Tax and Revenue Anticipation Notes, General Obligation, 1,000,000 4.50%, 07/01/98 NR/Sp1+ 1,001,680 GEORGIA (0.9%) Polk County, GA School District, General Obligation, 1,000,000 4.25%, 02/01/99 NR/AA- 1,005,704 HAWAII (39.9%) Hawaii State, General Obligation Bonds 1990 Series BS, 1,000,000 6.80%, 09/01/98 A1/A+ 1,013,540 Hawaii State, General Obligation Bonds 1993 Series CC, 1,550,000 4.40%, 02/01/99 A1/A+ 1,559,875 Hawaii State, General Obligation Bonds 1993 Series CD, 2,750,000 4.40%, 02/01/99 A1/A+ 2,769,285 Hawaii State, General Obligation Bonds 1997 Series CQ, 3,000,000 4.25%, 10/01/98 Aaa/AAA 3,006,974 Hawaii State Department of Budget & Finance Citizens Utility - Revenue Bonds Series (Tax- Exempt Commercial Paper Series), 1,800,000 3.55%, 07/15/98 NR/A-1+ 1,800,000 Hawaii State Department of Budget & Finance Citizens Utility - Revenue Bonds Series (Tax- Exempt Commercial Paper Series), 1,000,000 3.20%, 05/08/98 NR/A-1+ 1,000,000 Hawaii State Department of Budget & Finance Citizens Utility - Revenue Bonds Series (Tax- Exempt Commercial Paper Series), 2,810,000 3.55%, 08/14/98 NR/A-1+ 2,810,000 Hawaii State Airports System Revenue Bonds, First Series, Refunding Bonds, 500,000 4.90%, 07/01/98 Aaa/AAA 501,370 Insurance: Municipal Bond Investors Assurance Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Kaiser Pemanente), Series A, 2,500,000 3.75%, 03/01/14, 6 month Put, next putable date 09/01/98 NR/A-1+ 2,500,000 Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Queens Medical Center Project), Refunding Bonds, 1,135,000 6.90%, 07/01/04, Prerefunded 07/01/98 Aaa/AAA 1,166,125 Insurance: Financial Guaranty Insurance Co. Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Queens Medical Center Project), Refunding Bonds, 1,345,000 7.00%, 07/01/08, Prerefunded 07/01/98 Aaa/AAA 1,382,238 Insurance: Financial Guaranty Insurance Co. Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Queens Medical Center Project), Refunding Bonds, 2,000,000 6.50%, 07/01/12, Prerefunded 07/01/98 Aaa/AAA 2,013,711 Insurance: Financial Guaranty Insurance Co. Hawaii State Department of Budget & Finance Special Purpose Mortgage Revenue Bonds (Kaiser Permanente) Series A, 4,900,000 3.85%, 03/01/15, Putable on 04/01/98* VMIG1/A-1+ 4,900,000 Hawaii State Housing Finance & Development Corp. Revenue Bonds (Rental Housing System) Series 89 A, 1,900,000 3.70%, 07/01/24, Putable 04/01/98* VMIG1/NR 1,900,000 Letter of Credit: Banque Nationale de Paris Hawaii State Housing Finance & Development Corp. Revenue Bonds (Affordable Rental Housing Program) Series A, 5,300,000 3.80%, 07/01/27, Putable 04/01/98* VMIG1/NR 5,300,000 Letter of Credit: Banque Nationale de Paris Honolulu County, HI General Obligation Bonds, Series A, 1,000,000 7.30%, 04/01/98 Aa2/AA 1,000,000 230,000 7.30%, 04/01/04, Prerefunded 04/01/98 Aaa/AA 233,450 1,000,000 6.00%, 04/01/98 Aa2/AA 1,000,000 500,000 5.50%, 03/01/99 Aaa/AAA 508,595 Honolulu County,HI General Obligation Bonds, Series B, 1,400,000 7.00%, 10/01/07, Prerefunded 10/01/98 Aaa/AA 1,442,876 1,750,000 4.50%, 10/01/98 Aa2/AA 1,755,607 Honolulu County,HI General Obligation Bonds, Series C, 250,000 6.70%, 06/01/98, Escrowed to Maturity Aaa/AA 251,189 Kauai County, HI General Obligation Bonds, Series A, 100,000 4.90%, 02/01/99 Aaa/AAA 100,934 450,000 4.00%, 08/01/98 Aaa/AAA 450,292 Insurance: Municipal Bond Investors Assurance Maui County, HI General Obligation Bonds, 200,000 4.20%, 09/01/98 Aaa/AAA 200,240 Insurance: Financial Guaranty Insurance Co. Maui County, HI General Obligation Bonds, Series A, 240,000 6.00%, 06/01/98 Aaa/AAA 240,823 Insurance: Municipal Bond Investors Assurance Secondary Market Services Corporation Hawaii Student Loan Revenue, Senior Series II, 4,500,000 3.80%, 09/01/2010, Putable 04/01/98* VMIG1/A-1+ 4,500,000 Letter of Credit: National Westminster, Guaranteed Student Loans Total Hawaii 45,307,124 ILLINOIS (2.3%) Illinois Health Facilities Authority Revenue Bonds (Central Dupage Health Corp. Project), 1,200,000 3.80%, 11/01/20, Putable 04/01/98* VMIG1/NR 1,200,000 Letter of Credit: Rabobank Nederland Southwestern IL Development Authority Environmental Improvement Revenue Bonds, (Shell Oil Co Wood River Project), 1,375,000 3.85%, 11/01/25, Putable 04/01/98* VMIG1/A-1+ 1,375,000 Total Illinois 2,575,000 INDIANA (9.7%) Gary, IN Environmental Improvement Revenue Bonds (US Steel Corporation Project), 3,100,000 3.35%, 07/15/02, Putable 04/07/98* P-1/A-1+ 3,100,000 Letter of Credit: Bank of Nova Scotia Indianapolis, IN Economic Development Revenue Bonds (Jewish Federation Campus), 4,720,000 3.70%, 04/01/05, Putable 04/01/98* VMIG1/NR 4,720,000 Letter of Credit: NBD Bank Purdue University, IN University Revenue Bonds (Student Fee) Series E, 80,000 3.60%, 07/01/11, Putable 04/01/98* VMIG1/A-1+ 80,000 Purdue University, IN University Revenue Bonds (Student Fee) Series H, 735,000 3.60%, 07/01/17, Putable 04/01/98* VMIG1/A-1+ 735,000 Purdue University, IN University Revenue Bonds (Student Fee) Series K, 340,000 3.60%, 07/01/20, Putable 04/01/98* VMIG1/A-1+ 340,000 Purdue University, IN University Revenue Bonds (Student Fee) Series O, 2,000,000 3.60%, 07/01/19, Putable 04/01/98* VMIG1/A-1+ 2,000,000 Total Indiana 10,975,000 KENTUCKY (1.8%) Warsaw, KY Industrial Building Revenue Bonds (Operating Partnership), 2,100,000 3.85%, 08/01/09, Putable 04/01/98* NR/A-1+ 2,100,000 Letter of Credit: Fifth Third Bank LOUISIANA (4.0%) De Soto Parish, LA Pollution Control Revenue Bonds (Central Louisiana Electric Company) Series A, 2,500,000 3.65%, 07/01/18, Putable 04/01/98* VMIG1/A-1+ 2,500,000 Letter of Credit: Westdeutsche Landesbank St. Charles Parish, LA Pollution Control Revenue Bonds (Shell Oil Co. Project) Series B, 500,000 3.70%, 10/01/22, Putable 04/01/98* VMIG1/A-1+ 500,000 St. Charles Parish, LA Pollution Control Revenue Bonds (Shell Oil Co.-Norco Project), 1,600,000 3.85%, 09/01/23, Putable 04/01/98* Aa2/AAA 1,600,000 Total Louisiana 4,600,000 MINNESOTA (0.9%) Hennepin County MN Revenue Bonds, Refunding Bonds, 1,000,000 4.90%, 10/01/98 Aaa/AAA 1,005,700 Albuquerque, NM Airport Revenue Bonds Series A, 2,000,000 3.75%, 07/01/17, Putable 04/01/98* VMIG1/A-1+ 2,000,000 Letter of Credit: Bayerische Landesbank NEW MEXICO (2.6%) New Mexico State, Tax and Revenue Anticipation Notes, Series A, 1,000,000 4.50%, 6/30/98 MIG1/Sp1+ 1,002,382 Total New Mexico 3,002,382 NEW YORK (8.0%) New York, NY General Obligation Bonds, Series B, 1,700,000 3.80%, 10/01/22, Putable 04/01/98* VMIG1/A-1+ 1,700,000 Letter of Credit: Financial Guaranty Insurance Corporation New York, NY General Obligation Bonds, Series C, 1,100,000 3.80%, 10/01/23, Putable 04/01/98* VMIG1/A-1+ 1,100,000 Letter of Credit: Morgan Guaranty Trust New York, NY Municipal Water Finance Authory Water & Sewer System Revenue Bonds, Series A, 6,300,000 4.00%, 06/15/25. Putable 04/15/98* VMIG1/A-1+ 6,300,000 Letter of Credit: Financial Guaranty Insurance Corporation Total New York 9,100,000 NORTH CAROLINA (1.2%) Durham County, NC General Obligation Bonds, Public Improvement Project, 1,400,000 3.65%, 02/01/09, Putable 04/01/98* VMIG1/A-1+ 1,400,000 Letter of Credit: Wachovia Bank of NC OHIO (8.1%) Ohio State Air Quality Development Authority Revenue Bonds, Series A, 2,800,000 4.00%, 12/01/15, Putable 04/01/98* NR/A-1+ 2,800,000 Letter of Credit: Union Bank of Switzerland Ohio State Air Quality Development Authority Revenue Bonds, Series B, 4,000,000 4.00%, 12/01/15, Putable 04/01/98* NR/A-1+ 4,000,000 Letter of Credit: Morgan (J.P.) Ohio State University Revenue Bonds, General Receipts Series B, 2,415,000 3.60%, 12/01/06, Putable 04/02/98* VMIG1/A-1+ 2,415,000 Letter of Credit: National Westminster Total Ohio 9,215,000 OREGON (1.8%) County of Multnomah, Tax and Revenue Anticipation Notes, General Obligation, 2,000,000 4.50%, 06/30/98 MIG1/NR 2,003,168 PENNSYLVANIA (1.6%) Pennsylvania State Higher Education Assistance Agency Student Loan Revenue Bonds, Series B, 1,800,000 3.80%, 07/01/2018, Putable 04/01/98 VMIG1/A-1+ 1,800,000 Letter of Credit: Student Loan Marketing TEXAS (6.1%) Austin, TX Independent School District, General Obligation Bonds, 500,000 5.00%, 08/01/98 Aaa/AAA 501,832 Letter of Credit: PSF-Guaranty Brazos, TX Higher Education Authority Incorporated Revenue Bonds, Series A-2, 1,415,000 5.45%, 06/01/98 Aaa/NR 1,418,463 Letter of Credit: GTD Student Loans Lower Neches Valley Authority of Texas Revenue Bonds (Chevron USA Income Project), 1,500,000 3.45%, 02/15/17, 6 month put, next putable date 08/15/98 P-1/A-1+ 1,500,000 San Antonio, TX Electric and Gas Revenue Bonds, Refunding Bonds, 1,500,000 5.00%, 02/01/99 Aa1/AA 1,517,061 Texas State Tax & Revenue Anticipation Notes Series A, 2,000,000 4.75%, 08/31/98 MIG1/Sp1+ 2,007,294 Total Texas 6,944,650 VERMONT (0.9%) Vermont State Student Assistance Corp. Revenue Bonds (Student Loan Revenue), 1,000,000 3.40%, 01/01/04, Putable 04/01/98* VMIG1/NR 1,000,000 Letter of Credit: National Westminster VIRGINIA (0.4%) Virginia State Transportation Board Transportation Contract Revenue Bonds, (RTE 28 Project), 500,000 5.40%, 04/01/98 Aa/AA 500,000 WASHINGTON (5.6%) King County, WA General Obligation Bonds Series C, Refunding Bonds, 2,000,000 5.25%, 01/01/99 Aa1/AA+ 2,022,701 Seattle, WA Water System Revenue Bonds, 1,000,000 3.65%, 09/01/25, Putable 04/01/98* VMIG1/A-1+ 1,000,000 Letter of Credit: Bayerische Landesbank Washington State Health Care Facility Authority Variable Rate Demand (Fred Hutchinson Cancer Research Center, Seattle) Series 1996, 2,500,000 3.80%, 01/01/23, Putable 04/01/98* VMIG1/NR 2,500,000 Letter of Credit: Morgan Guaranty Trust Washington State Health Care Facility Authority Variable Rate Demand (Fred Hutchinson Cancer Research Center, Seattle) Series 1991-B, 840,000 3.80%, 01/01/18, Putable 04/01/98* VMIG1/NR 840,000 Letter of Credit: Morgan Guaranty Trust Total Washington 6,362,701 WISCONSIN (1.9%) Wisconsin State General Obligation, Series 1, Refunding Bonds, 1,000,000 4.70%, 11/01/98 Aa2/AA 1,005,095 Wisconsin State General Obligation, Series 1, Refunding Bonds, 1,200,000 4.40%, 05/01/98 Aa2/AA 1,200,312 Total Wisconsin 2,205,407 Total Investments (cost $113,104,597**) 99.5% 113,104,597 Other assets in excess of liabilities .5 569,776 Net Assets 100.0% $113,674,373 (*) Variable rate obligation payable at par on demand at any time on no more than seven days notice. (**) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements. PACIFIC CAPITAL U.S. TREASURIES CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 1998 FACE AMOUNT U.S. TREASURY BILLS (43.77%) VALUE $ 15,000,000 5.17%, due 04/02/98 $ 14,997,867 10,000,000 5.11%, due 04/02/98 9,998,577 10,000,000 5.11%, due 04/02/98 9,998,577 10,000,000 5.05%, due 04/09/98 9,988,867 15,000,000 5.36%, due 04/16/98 14,966,719 15,000,000 5.58%, due 04/23/98 14,951,440 15,000,000 5.50%, due 04/23/98 14,951,440 10,000,000 5.57%, due 04/30/98 9,957,305 10,000,000 5.53%, due 05/28/98 9,916,875 Total U.S. Treasury Bills (cost $109,727,667) 109,727,667 U.S. TREASURY NOTES (19.98%) 10,000,000 7.875%, due 04/15/98 10,009,007 10,000,000 5.125%, due 04/30/98 9,998,362 10,000,000 6.25%, due 06/30/98 10,017,011 5,000,000 6.25%, due 07/31/98 5,014,180 5,000,000 6.125%, due 08/31/98 5,014,341 5,000,000 6.00%, due 09/30/98 5,016,158 5,000,000 5.875%, due 10/31/98 5,013,961 Total U.S. Treasury Notes (cost $50,083,020) 50,083,020 REPURCHASE AGREEMENTS (36.29%) 30,992,000 SBC Warburg, Dillon, Read Inc., 5.80%, due 04/01/98 30,992,000 (Proceeds of $30,996,993 to be received at maturity) Collateral: $31,069,000 U.S. Treasury Notes 5.625% due 11/30/98 Collateral Market Value $31,611,840 30,000,000 BZW Securities Inc., 5.75%, due 04/01/98 30,000,000 (Proceeds of $30,004,792 to be received at maturity) Collateral: $29,760,000 U.S. Treasury Notes 5.875% due 11/15/05 Collateral Market Value $30,600,000 30,000,000 Merrill Lynch Government Securities Inc., 5.75%, due 04/01/98 30,000,000 (Proceeds of $30,004,792 to be received at maturity) Collateral: $30,375,000 U.S. Treasury Notes 5.875% due 02/28/99 Collateral Market Value $30,600,000 Total Repurchase Agreements (cost $90,992,000) 90,992,000 Total Investments (cost $250,802,687*) 100.04% 250,802,687 Liabilities in excess of other assets (0.04) (97,589) Net Assets 100.0% $250,705,098 (*) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 1998
CASH TAX-FREE TREASURIES FUND FUND FUND ASSETS: Investments at value (cost $455,234,521, $113,104,597 and $159,810,687, respectively) $455,234,521 $113,104,597 $159,810,687 Repurchase agreements (cost $79,456,000, $-0- and $90,992,000, respectively) 79,456,000 - 90,992,000 Cash 723 94,272 549 Interest receivable 87,649 1,084,885 953,290 Other assets 10,628 551 7,269 Total Assets 534,789,521 114,284,305 251,763,795 LIABILITIES: Dividends payable 2,289,581 256,893 940,118 Payable for investment securities purchased - 245,623 - Adviser and Administrator fees payable 231,762 37,017 78,837 Distribution fees payable 25,076 6,202 28,905 Accrued expenses 45,308 64,197 10,837 Total Liabilities 2,591,727 609,932 1,058,697 NET ASSETS $532,197,794 $113,674,373 $250,705,098 NET ASSETS CONSIST OF: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share $ 5,328,239 $ 1,136,724 $ 2,506,785 Additional paid-in capital 527,500,955 112,537,854 248,181,282 Accumulated net realized gain (loss) on investments (631,400) (205) 17,031 $532,197,794 $113,674,373 $250,705,098 SHARES OF BENEFICIAL INTEREST: Original Shares Class: Net Assets $418,765,636 $ 76,562,453 $100,817,935 Shares outstanding 419,420,910 76,561,158 100,804,315 Net asset value per share $1.00 $1.00 $1.00 Service Shares Class: Net Assets $113,432,158 $ 37,111,920 $149,887,163 Shares outstanding 113,403,019 37,111,289 149,874,197 Net asset value per share $1.00 $1.00 $1.00
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST STATEMENTS OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1998
CASH TAX-FREE TREASURIES FUND FUND FUND INVESTMENT INCOME: Interest income $ 27,620,689 $ 3,637,941 $ 10,159,402 EXPENSES: Investment Adviser fees (note 3) 1,791,797 271,071 588,596 Administrator fees (note 3) 669,595 125,970 168,490 Distribution fees (note 3) 225,212 63,840 282,730 Trustees' fees and expenses 137,796 60,868 60,372 Legal fees 49,600 22,330 27,343 Shareholders' reports and proxy statements 47,403 14,876 16,266 Registration fees and dues 33,607 11,296 10,395 Fund accounting fees 29,564 28,867 29,749 Transfer and shareholder servicing agent fees 26,767 25,552 20,191 Audit and accounting fees 23,121 23,871 22,871 Custodian fees (note 6) 20,431 26,485 11,062 Insurance 8,858 3,121 1,712 Miscellaneous 10,565 10,916 23,141 Total expenses 3,074,316 689,063 1,262,918 Expenses paid indirectly (note 6) (20,431) (665) (840) Net expenses 3,053,885 688,398 1,262,078 Net investment income 24,566,804 2,949,543 8,897,324 Net realized gain (loss) from securities transactions 89,803 (205) 17,031 Net increase in net assets resulting from operations $ 24,656,607 $ 2,949,338 $ 8,914,355
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST STATEMENTS OF CHANGES IN NET ASSETS
CASH FUND TAX-FREE FUND TREASURIES FUND Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended March 31, March 31, March 31, March 31, March 31, March 31, 1998 1997 1998 1997 1998 1997 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $24,566,804 $19,349,816 $2,949,543 $4,151,691 $8,897,324 $5,735,313 Net realized gain (loss) from securities transactions 89,803 46,777 (205) 2,857 17,031 4,476 Net increase in net assets resulting from operations 24,656,607 19,396,593 2,949,338 4,154,548 8,914,355 5,739,789 DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares (20,260,825) (17,064,462) (2,237,687) (3,599,870) (3,695,429) (3,218,910) Service Shares (4,305,979) (2,285,354) (711,856) (551,821) (5,201,895) (2,516,403) Total dividends to shareholders from net investment income (24,566,804) (19,349,816) (2,949,543) (4,151,691) (8,897,324) (5,735,313) CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares 1,215,049,334 1,381,029,520 145,166,331 253,991,606 323,059,102 347,794,907 Service Share 287,984,097 363,384,239 66,068,395 57,483,211 858,192,771 614,489,280 1,503,033,431 1,744,413,759 211,234,726 311,474,817 1,181,251,873 962,284,187 Reinvested dividends and distributions: Original Shares 122,396 123,463 116,145 131,295 60,052 58,222 Service Shares 4,084,240 2,156,127 699,548 535,951 4,985,493 2,238,344 4,206,636 2,279,590 815,693 667,246 5,045,545 2,296,566 Cost of shares redeemed: Original Shares (1,217,844,005) (1,268,495,494) (159,715,064) (288,308,370) (288,014,215) (356,184,998) Service Shares (244,416,529) (332,639,067) (55,172,286) (50,112,294) (796,725,850) (545,111,791) (1,462,260,534) (1,601,134,561) (214,887,350) (338,420,664) (1,084,740,065) (901,296,789) Change in net assets from capital share transactions 44,979,533 145,558,788 (2,836,931) (26,278,601) 101,557,353 63,283,964 Total increase (decrease) in net assets 45,069,336 145,605,565 (2,837,136) (26,275,744) 101,574,384 63,288,440 NET ASSETS: Beginning of period 487,128,458 341,522,893 116,511,509 142,787,253 149,130,714 85,842,274 End of period $532,197,794 $487,128,458 $113,674,373 $116,511,509 $250,705,098 $149,130,714
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Cash Assets Trust (the "Trust") was organized on May 7, 1984 as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end investment company. The Trust consists of the following three investment portfolios (referred to individually as a "Fund" and collectively as the "Funds"): Pacific Capital Cash Assets Trust (a diversified portfolio which commenced operations on December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust (a non-diversified portfolio which commenced operations on April 4, 1989), and Pacific Capital U.S. Treasuries Cash Assets Trust (a diversified portfolio which commenced operations on April 4, 1989). The Trust is authorized to issue for each Fund an unlimited number of shares of $.01 par value in two classes of shares; the Original Shares Class and the Service Shares Class. The Original Shares Class includes all currently outstanding shares of each Fund that were issued prior to January 20, 1995, the date on which the Capital structure was changed to include two classes rather than one. The two classes of shares are substantially identical, except that Service Shares bear the fees that are payable under the Trust's Distribution Plan. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles for investment companies. a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the amortized cost method permitted in accordance with Rule 2a-7 under the Investment Company Act of 1940 (the "1940 Act"), which, after considering accrued interest thereon, approximates market. Under this method, a portfolio security is valued at cost adjusted for amortization of premiums and accretion of discounts. Amortization of premiums and accretion of discounts are included in interest income. b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premiums and accretion of discounts as discussed in the preceding paragraph. c) DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES: The net asset value per share for each class of the Funds' shares is determined as of 4:00 p.m. New York time on each day that the New York Stock Exchange is open by dividing the value of the assets of the Fund allocable to that class less Fund liabilities allocable to the class and any liabilities charged directly to the class, exclusive of surplus, by the total number of shares of the class outstanding. Investment income, realized and unrealized gains and losses, if any, and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class. Class specific expenses are borne by the affected class. Service fee payments under Rule 12b-1 are borne solely by and charged to the Service Shares based on net assets of that class. d) FEDERAL INCOME TAXES: It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. Each Fund intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. e) REPURCHASE AGREEMENTS: It is each Fund's policy to monitor closely the creditworthiness of all firms with which it enters into repurchase agreements, and to take possession of, or otherwise perfect its security interest in, securities purchased under agreements to resell. The securities purchased under agreements to resell are marked to market every business day so that the value of the "collateral" is at least equal to the value of the "loan" (repurchase agreements being defined as "loans" in the 1940 Act), including the accrued interest earned thereon, plus sufficient additional market value as is considered necessary to provide a margin of safety. f) USE OF ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 3. FEES AND RELATED PARTY TRANSACTIONS a) MANAGEMENT ARRANGEMENTS: On September 30, 1997, Pacific Century Trust (the "Adviser"), a division of Bank of Hawaii, succeeded to the operations of Hawaiian Trust Company, Limited, a subsidiary of Bank of Hawaii, which had served as Investment Adviser to the Trust since its inception. In this role, under Investment Advisory Agreements, the Adviser supervises the Funds' investments and provides various services. The Funds also have Administration Agreements with Aquila Management Corporation (the "Administrator", formerly Sub-Adviser and Administrator) to provide all administrative services to the Funds other than those relating to the investment portfolio and the maintenance of the accounting books and records. Specific details as to the nature and extent of the services provided by the Adviser and the Administrator are more fully defined in the Prospectus and Statement of Additional Information of the Funds. For their services, the Adviser and the Administrator each receive a fee which is payable monthly and computed as of the close of business each day on the net assets of each Fund at the following annual rates: Pacific Capital Cash Assets Trust - On net assets up to $325 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.33% and 0.17%, respectively and on net assets above that amount at the annual rate of 0.43% and 0.07%, respectively. For the year ended March 31, 1998, the Fund incurred fees under the Advisory Agreement and the Administration Agreement of $1,791,797 and $669,595, respectively. Pacific Capital Tax-Free Cash Assets Trust - On net assets up to $95 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.27% and 0.13%, respectively and on net assets above that amount at the annual rate of 0.33% and 0.07%, respectively. For the year ended March 31, 1998, the Fund incurred fees under the Advisory Agreement and the Administration Agreement of $271,071 and $125,970, respectively. Pacific Capital U.S. Treasuries Cash Assets Trust - On net assets up to $60 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.27% and 0.13%, respectively and on net assets above that amount at the annual rate of 0.33% and 0.07%, respectively. For the year ended March 31, 1998, the Fund incurred fees under the Advisory Agreement and the Administration Agreement of $588,596 and $168,490, respectively. The Adviser and the Administrator each agrees that the above fees shall be reduced, but not below zero, by an amount equal to its proportionate share (determined on the basis of the respective fees computed as described above) of the amount, if any, by which the total expenses of a Fund in any fiscal year, exclusive of taxes, interest and brokerage fees, shall exceed the lesser of (i) 2.5% of the first $30 million of average annual net assets of the Fund plus 2% of the next $70 million of such assets and 1.5% of its average annual net assets in excess of $100 million, or (ii) 25% of the Fund's total annual investment income. The payment of the above fees at the end of any month will be reduced or postponed so that at no time will there be any accrued but unpaid liability under this expense limitation. No such reduction in fees was required during the year ended March 31, 1998. b) DISTRIBUTION AND SERVICE FEES: Each Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. A part of the Plan authorizes payment of certain distribution or service fees by the Service Shares class of the Fund. Such payments are made to "Designated Payees"- broker-dealers, other financial institutions and service providers who have entered into appropriate agreements with the Distributor and which have rendered assistance in the distribution and/or retention of the Funds' Service Shares or in the servicing of Service Share accounts. The total payments under this part of a Fund's Plan may not exceed 0.25 of 1% of its average annual assets represented by Service Shares. No such payments will be made by the Original Share class. Specific details about each Plan are more fully defined in the Prospectus and Statement of Additional Information of the Funds. Under a Distribution Agreement, Aquila Distributors, Inc. (the "Distributor") serves as the exclusive distributor of the Funds' shares. No compensation or fees are paid to the Distributor for such share distribution. 4. DISTRIBUTIONS The Funds declare dividends daily from net investment income and make payments monthly in additional shares at the net asset value per share or in cash, at the shareholder's option. At March 31, 1998, the Cash Fund had a capital loss carryover of approximately $631,000 which expires at March 31, 2003 and is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. To the extent that this loss is used to offset future realized capital gains, it is probable the gains so offset will not be distributed. 5. GUARANTEES OF CERTAIN COMMERCIAL PAPER Various banks and other institutions have issued irrevocable letters of credit or guarantees for the benefit of the holders of certain commercial paper. Payment at maturity of principal and interest of certain commercial paper held by the Funds is supported by such letters of credit or guarantees. 6. CUSTODIAN FEES The Funds have negotiated an offset arrangement with their custodian wherein they receive credit toward the reduction of custodian fees whenever there are uninvested cash balances. For the year ended March 31, 1998, the custodian fees of the Cash Fund, the Tax-Free Fund and the Treasuries Fund, amounted to $20,431, $26,485 and $11,062, respectively. Of these amounts, $20,431, $665 and $840, respectively, were offset by such credits. The Funds could have invested their cash balances in an income-producing asset if they had not agreed to a reduction in fees under the expense offset arrangement with the custodian. 7. PORTFOLIO ORIENTATION Since the Pacific Capital Tax-Free Cash Assets Trust has a significant portion of its investments in obligations of issuers within Hawaii, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Hawaii and whatever effects these may have upon Hawaii issuers ability to meet their obligations. 8. SUBSEQUENT EVENT Effective April 1, 1998, the name of the series called Pacific Capital U.S. Treasuries Cash Assets Trust was changed to Pacific Capital U.S. Government Securities Cash Assets Trust and, in addition to investing in direct obligations of the United States Treasury, it will invest in other obligations issued or guaranteed by agencies or instrumentalities of the United States Government (with remaining maturities of one year or less) and certain repurchase agreements secured by U.S. Government securities. PACIFIC CAPITAL CASH ASSETS TRUST FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
SERVICE SHARES(1) ORIGINAL SHARES(2) Period Ended Year Ended March 31, March 31, Year Ended March 31, 1998 1997 1996 1995** 1998 1997 1996 1995 1994 Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income 0.05 0.05 0.05 0.01 0.05 0.05 0.05 0.04 0.03 Less Distributions: Dividends from net investment income (0.05) (0.05) (0.05) (0.01) (0.05) (0.05) (0.05) (0.04) (0.03) Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $ 1.00 $1.00 $1.00 $1.00 Total Return (%) 4.88 4.62 5.06 0.85+ 5.15 4.88 5.32 4.40 2.74 Ratios/Supplemental Data Net Assets, End of Period ($ millions) 113.4 65.8 32.9 3.5 418.8 421.4 308.7 486.7 407.1 Ratio of Expenses to Average Net Assets (%) 0.82 0.85 0.86 0.83* 0.57 0.60 0.60 0.59 0.59 Ratio of Net Investment Income to Average Net Assets (%) 4.78 4.53 4.84 5.26* 5.04 4.79 5.24 4.40 2.71 For periods after April 1, 1995, net investment income per share and the ratios of income and expenses to average net assets without the expense offset in custodian fees for uninvested cash balances would have been: Net investment income ($) 0.05 0.05 0.05 0.05 0.05 0.05 Ratio of Expenses to Average Net Assets (%) 0.83 0.85 0.86 0.58 0.60 0.61 Ratio of Net Investment Income to Average Net Assets (%) 4.77 4.53 4.84 5.03 4.78 5.23 (1) New class of shares established on January 20, 1995. (2) Designated as the "Original Shares" class of shares on January 20, 1995. ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. + Not annualized. * Annualized.
See accompanying notes to financial statements. PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
SERVICE SHARES(1) ORIGINAL SHARES(2) Period Ended Year Ended March 31, March 31, Year Ended March 31, 1998 1997 1996 1995** 1998 1997 1996 1995 1994 Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income 0.03 0.03 0.03 0.01 0.03 0.03 0.03 0.03 0.02 Less Distributions: Dividends from net investment income (0.03) (0.03) (0.03) (0.01) (0.03) (0.03) (0.03) (0.03) (0.02) Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Total Return (%) 2.83 2.75 3.11 0.52+ 3.08 3.00 3.37 2.74 2.02 Ratios/Supplemental Data Net Assets, End of Period ($ millions) 37.1 25.5 17.6 1.4 76.6 91.0 125.2 138.3 113.9 Ratio of Expenses to Average Net Assets (%) 0.88 0.80 0.80 0.77* 0.63 0.55 0.54 0.55 0.56 Ratio of Net Investment Income to Average Net Assets (%) 2.79 2.70 2.97 3.22* 3.04 2.97 3.32 2.74 1.99 For the year 1994, net investment income per share and the ratios of income and expenses to average net assets without the Adviser's and Administrator's voluntary waiver of fees and for periods after April 1, 1995, without the expense offset in custodian fees for uninvested cash balances, would have been: Net Investment Income ($) 0.03 0.03 0.03 0.03 0.03 0.03 0.02 Ratio of Expenses to Average Net Assets (%) 0.88 0.80 0.80 0.63 0.55 0.54 0.58 Ratio of Net Investment Income to Average Net Assets (%) 2.79 2.70 2.97 3.04 2.97 3.32 1.97 (1) New class of shares established on January 20, 1995. (2) Designated as the "Original Shares" class of shares on January 20, 1995. ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. + Not annualized. * Annualized.
See accompanying notes to financial statements. PACIFIC CAPITAL U.S. TREASURIES CASH ASSETS TRUST FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
SERVICE SHARES(1) ORIGINAL SHARES(2) Period Ended Year Ended March 31, March 31, Year Ended March 31, 1998 1997 1996 1995** 1998 1997 1996 1995 1994 Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income 0.05 0.04 0.05 0.01 0.05 0.05 0.05 0.04 0.03 Less Distributions: Dividends from net investment income (0.05) (0.04) (0.05) (0.01) (0.05) (0.05) (0.05) (0.04) (0.03) Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Total Return (%) 4.69 4.50 4.94 0.94+ 4.95 4.76 5.20 4.20 2.59 Ratios/Supplemental Data Net Assets, End of Period ($ millions) 149.9 83.4 11.8 0.5 100.8 65.7 74.0 64.0 91.7 Ratio of Expenses to Average Net Assets (%) 0.77 0.79 0.79 0.85* 0.52 0.55 0.54 0.54 0.52 Ratio of Net Investment Income to Average Net Assets (%) 4.60 4.43 4.68 5.09* 4.85 4.66 5.07 4.04 2.58 Net investment income per share and the ratios of income and expenses to average net assets without the Adviser's and Administrator's voluntary waiver of fees for periods prior to April 1, 1996, and for periods after April 1, 1995, without the expense offset in custodian fees for uninvested cash balances, would have been: Net Investment Income ($) 0.05 0.04 0.05 0.01 0.05 0.05 0.05 0.04 0.03 Ratio of Expenses to Average Net Assets (%) 0.77 0.80 0.88 0.98* 0.52 0.56 0.63 0.59 0.52 Ratio of Net Investment Income to Average Net Assets (%) 4.60 4.42 4.60 4.96* 4.85 4.65 4.98 3.99 2.58 (1) New class of shares established on January 20, 1995. (2) Designated as the "Original Shares" class of shares on January 20, 1995. ** For the period from February 1, 1995 (commencement of operations) to March 31, 1995. + Not annualized. * Annualized.
See accompanying notes to financial statements. FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED) This information is presented in order to comply with a requirement of the Internal Revenue Code AND NO CURRENT ACTION ON THE PART OF SHAREHOLDERS IS REQUIRED. For the fiscal year ended March 31, 1998, the Federal tax status of the total amount of dividends paid by each of the investment portfolios comprising Cash Assets Trust is as follows:
Fund Federal Tax Status Pacific Capital Cash Assets Trust Ordinary dividend income Pacific Capital Tax-Free Cash Assets Trust Exempt-interest dividends Pacific Capital U.S. Treasuries Cash Assets Trust Ordinary dividend income
Prior to January 31, 1998, shareholders were mailed IRS Form 1099-DIV which contained information on the status of distributions paid for the 1997 CALENDAR YEAR. -----END PRIVACY-ENHANCED MESSAGE-----