PACIFIC CAPITAL
                                CASH ASSETS TRUST

               Supplement to the Prospectuses dated July 31, 2000

         The material under the caption "What are the Cash Fund's Investment
Strategies?" is supplemented by adding to the investments the Cash Fund can make
under current management policies the following:

         (7) Shares of investment companies with money-market portfolios.

     The material under the caption "What are the Government Securities Fund's
investment strategies?" is changed to read as follows:

              The Government Securities Fund seeks to attain this
         objective by investing only in short-term direct obligations of the
         United States Treasury, in other obligations issued or guaranteed by
         agencies or instrumentalities of the United States Government (with
         remaining maturities of one year or less), in shares of investment
         companies with money-market portfolios which invest only in U.S.
         government securities and in certain repurchase agreements secured by
         U.S. government securities.

     The material under the heading "Under the current management policies, the
Government Securities Fund invests only in the following types of Obligations"
is supplemented by adding the following:

         Investment Companies

         The Government Securities Fund may purchase shares of investment
         companies with money-market portfolios consisting only of U.S.
         government securities.

         The material under the caption "When will my order be effective under
the Second Method?" is changed to read as follows:

              Your purchase order is effective and your funds are
         deemed available for investment on that day if

              (i) you advise the Agent before 3:30 p.m. New York time on a
         Business Day of a dollar amount to be invested in the Cash Fund or
         Government Securities Fund or prior to noon of a dollar amount to be
         invested in the Tax-Free Fund; and

              (ii) your payment in Federal Funds is received by wire on that
          day.

                   The date of this supplement is May 31, 2001





                                 PACIFIC CAPITAL
                                CASH ASSETS TRUST

              Supplement to the Statement of Additional Information
                               dated July 31, 2000

The material under the caption "Additional Information About the Cash Fund's
Investments" is supplemented by adding the following:

         (9) The Cash Fund may purchase shares of investment
         companies with money-market portfolios.

The material under the caption "Additional Information About the Government
Securities Fund's Investments" is supplemented by adding the following:

          The Government Securities Fund may purchase shares of investment
          companies with money-market portfolios which consist only of U.S.
          government securities.

The following is added to the material under the caption "Investment Strategies
and Risks":

     The Funds will not purchase shares of an investment company which imposes a
sales or redemption charge of any sort; however, an investment company in which
any Fund invests may have a distribution plan under which it may pay for
distribution expenses or services. The Funds will purchase shares only of
investment companies with high-quality portfolios which the Adviser, pursuant to
procedures approved by the Board of Trustees, determines present minimal credit
risks. Such investments will ordinarily be made to provide additional liquidity
and at the same time to earn higher yields than are usually associated with the
overnight or short-term obligations in which a Fund might otherwise invest for
this purpose. While higher yields than those of alternative investments may be
obtainable, these yields will reflect management fees and operating and
distribution expenses of the investment companies and will result in duplication
of management fees with respect to assets of any Fund so invested. A Fund may
not invest in the shares of an investment company if immediately thereafter it
has invested more than 10% of the value of its total assets in such companies or
more than 5% of the value of its total assets in any one such company; it may
not invest in such a company if immediately thereafter it owns more than 3% of
the total outstanding voting stock of such a company.


                   The date of this supplement is May 31, 2001