-----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, E9oM8T76Z4T39W0qMFTnakr3HeaaQbduu9aOaufjbDwG9vaWI3DGd23Q1YEiQC7W LCg03tEoutpATe8MCfOfIQ== 0000749748-04-000016.txt : 20041206 0000749748-04-000016.hdr.sgml : 20041206 20041206115311 ACCESSION NUMBER: 0000749748-04-000016 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041206 DATE AS OF CHANGE: 20041206 EFFECTIVENESS DATE: 20041206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH ASSETS TRUST CENTRAL INDEX KEY: 0000749748 IRS NUMBER: 136844974 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04066 FILM NUMBER: 041185596 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: SUITE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2126976666 MAIL ADDRESS: STREET 1: 380 MADISON AVENUE STREET 2: SUITE 2300 CITY: NEW YORK STATE: NY ZIP: 10017 N-CSR 1 catsncsr93004.txt CASH ASSETS TRUST SEMI 9/30/04 NCSR 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 811-4066 Cash Assets Trust (Exact name of Registrant as specified in charter) 380 Madison Avenue New York, New York 10017 (Address of principal executive offices) (Zip code) Joseph P. DiMaggio 380 Madison Avenue New York, New York 10017 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 697-6666 Date of fiscal year end: 3/31 Date of reporting period: 9/30/04 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. SEMI-ANNUAL REPORT SEPTEMBER 30, 2004 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: a lion standing on a twisted rope] A CASH MANAGEMENT INVESTMENT SERVING INVESTORS SINCE 1984 THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST --------------------------------------------------- 380 MADISON AVENUE, SUITE 2300 o NEW YORK, NY 10017 800-228-7496 o 212-697-6666 [Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing on a twisted rope] SEMI-ANNUAL REPORT PACIFIC CAPITAL CASH ASSETS TRUST SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2004 (UNAUDITED)
FACE AMOUNT COMMERCIAL PAPER (19.7%) VALUE - ------------ ----------------------------------------------------------------- ------------- BANKS (8.3%) $ 20,000,000 Abbey National North America LLC, 1.74%, 11/19/04 ............... $ 19,952,633 19,000,000 Societe Generale N.A., Inc., 1.69%, 12/10/04 .................... 18,937,564 ------------- 38,890,197 ------------- BROKERAGE (3.9%) 18,000,000 Goldman Sachs & Co., 1.09%, 12/20/04 ............................ 17,956,400 ------------- FINANCE (4.3%) 20,000,000 General Electric Capital Corp., 1.80%, 12/14/04 ................. 19,926,000 ------------- INSURANCE (3.2%) 15,000,000 Prudential Funding LLC, 1.53%, 10/21/04 ......................... 14,987,250 ------------- Total Commercial Paper ........................................ 91,759,847 ------------- CORPORATE NOTE (3.2%) INSURANCE (3.2%) 15,000,000 Peoples Benefit Life Insurance, Variable Rate Note, 1.81%, 10/01/04 (b) .................................................. 15,000,000 ------------- U.S. GOVERNMENT AGENCIES (77.1%) FEDERAL FARM CREDIT BANK (15.1%) 70,000,000 1.65%, 10/01/04 ................................................. 70,000,000 ------------- FEDERAL HOME LOAN BANK (62.0%) 35,000,000 1.54%, 10/01/04 ................................................. 35,000,000 40,000,000 1.51%, 10/06/04 ................................................. 39,991,610 12,615,000 3.625%, 10/15/04 ................................................ 12,626,508 35,000,000 1.74%, 10/22/04 ................................................. 34,964,475 15,000,000 1.55%, 10/27/04 ................................................. 14,983,154 25,000,000 1.71%, 11/05/04 ................................................. 24,958,438 35,000,000 1.62%, 11/19/04 ................................................. 34,922,587 30,000,000 1.68%, 12/03/04 ................................................. 29,911,800 12,000,000 1.67%, 12/08/04 ................................................. 11,962,260 25,000,000 1.92%, 02/25/05 ................................................. 24,804,408
$ 25,000,000 1.94%, 03/11/05 ................................................. $ 24,783,433 ------------- 288,908,673 ------------- Total U.S. Government Agencies ............................... 358,908,673 -------------
SHARES INVESTMENT COMPANY (0.1%) - ------------ ----------------------------------------------------------------- 537,363 One Group Government Money Market Fund, Institutional Shares .......................................... 537,363 ------------- Total Investments (Amortized Cost $466,205,883) (a) 100.1% 466,205,883 Other assets less liabilities ..................... (0.1) (354,732) ----- ------------- Net assets ........................................ 100.0% $ 465,851,151 ===== =============
(a) Cost for Federal tax purposes is identical. (b) Illiquid security. Considered illiquid because it may not be sold, and may be redeemed only upon at least ninety days' notice to the issuer. As this security is a variable rate note, the rate shown represents the rate in effect at September 30, 2004, and the maturity date reflects the next rate change date. See accompanying notes to financial statements PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2004 (UNAUDITED)
RATING FACE MOODY'S/ AMOUNT MUNICIPAL BONDS (100.0%) S&P VALUE - ------------ ------------------------------------------------------ ---------- ------------- COLORADO (4.1%) $ 6,400,000 Colorado Housing & Financial Authority Revenue Bonds, Class I, Series A-1, Weekly Reset VRDO*, SPA: FHLB, 1.70%, 10/01/30 .......................... VMIG1/A-1+ $ 6,400,000 ------------- HAWAII (24.9%) 17,300,000 Department of Budget and Finance of the State of Hawaii Special Purpose Revenue Bonds (The Queen's Health System), Series A, Weekly Reset VRDO*, SPA: Bank of Nova Scotia, 1.68%, 07/01/26 ............................. VMIG1/A-1 17,300,000 5,000,000 Hawaii State, Airports System Revenue Bonds, Weekly Reset VRDO*, LOC: Societe Generale, 1.72%, 07/01/13 ........................... VMIG1/A-1+ 5,000,000 4,000,000 Hawaii State, Housing Finance & Development Corp. Revenue Bonds, (Affordable Rental Housing Program), Series A, Weekly Reset VRDO*, LOC: Banque Nationale Paris, 1.70%, 07/01/27 ............. VMIG1/NR 4,000,000 4,000,000 Hawaii State, Housing Finance & Development Corp. Revenue Bonds (Rental Housing System), Series 89 A, Weekly Reset VRDO*, LOC: Banque Nationale Paris, 1.64%, 07/01/24 .............................. VMIG1/NR 4,000,000 8,500,000 Honolulu City & County, HI Multifamily Housing Revenue Bonds (Moanalua Hillside Apartments), AMT, Weekly Reset VRDO*, LOC: FNMA, 1.74%, 09/15/32 ............................... NR/A-1+ 8,500,000 ------------- 38,800,000 ------------- IDAHO (2.5%) 3,950,000 Idaho Health Facilities Authority Revenue Bonds (St. Lukes Regional Medical Center Project), Daily Reset VRDO*, LOC: Harris Trust & Savings Bank, 1.72%, 05/01/22 ....................... VMIG1/NR 3,950,000 -------------
ILLINOIS (10.3%) $ 3,000,000 Chicago, IL General Obligation Bonds, Series B, Weekly Reset VRDO*, FGIC Insured, 1.70%, 01/01/37 ..................................... VMIG1/A-1+ $ 3,000,000 6,800,000 Chicago, IL Metropolitan Water Reclamation District-Greater Chicago General Obligation Bonds, Series A, Weekly Reset VRDO*, SPA: Bank of America, 1.67%, 12/01/31 .................... VMIG1/A-1+ 6,800,000 6,300,000 Illinois Development Finance Authority Revenue Bonds (YMCA of Metro Chicago Project), Daily Reset VRDO*, LOC: Harris Trust & Savings Bank, 1.72%, 06/01/29 ............................... NR/A-1+ 6,300,000 ------------- 16,100,000 ------------- INDIANA (1.1%) 1,680,000 Indianapolis, IN Economic Development Revenue Bonds (Jewish Federation Campus), Weekly Reset VRDO*, LOC: Fifth Third Bank, 1.67%, 04/01/05 ..................................... VMIG1/NR 1,680,000 ------------- MICHIGAN (4.4%) 5,410,000 Eastern Michigan University, MI University Revenue Bonds, Daily Reset VRDO*, FGIC Insured, 1.72%, 06/01/27 ..................................... NR/A-1+ 5,410,000 1,400,000 Northern Michigan University Revenue Bonds, Daily Reset VRDO*, FGIC Insured, 1.72%, 06/01/31 ..................................... VMIG1/A-1+ 1,400,000 ------------- 6,810,000 ------------- MINNESOTA (3.1%) 3,875,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series A, Daily Reset VRDO*, LOC: ABN Amro Bank N.V., 1.72%, 06/01/20 ............ NR/A-1+ 3,875,000 200,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series B, Daily Reset VRDO*, LOC: ABN Amro Bank N.V., 1.72%, 06/01/13 ............ NR/A-1+ 200,000
$ 800,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series C, Daily Reset VRDO*, LOC: ABN Amro Bank N.V., 1.72%, 06/01/13 ............ NR/A-1+ $ 800,000 ------------- 4,875,000 ------------- MISSOURI (14.9%) 5,935,000 Kansas City, MO Industrial Development Authority Revenue Bonds, (Ewing Marion Kaufman Foundation), Daily Reset VRDO*, 1.72%, 04/01/27 ..................................... NR/A-1+ 5,935,000 975,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (St. Louis University), Series A, Daily Reset VRDO*, SPA: Bank of America N.A., 1.77%, 10/01/09 ....................... VMIG1/A-1+ 975,000 5,355,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (St. Louis University), Series B, Daily Reset VRDO*, SPA: Bank of America N.A., 1.77%, 10/01/24 ....................... VMIG1/A-1+ 5,355,000 2,800,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (Washington University), Series C, Daily Reset VRDO*, SPA: JP Morgan Chase Bank, 1.63%, 09/01/30 ......................... VMIG1/A-1+ 2,800,000 1,000,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (Washington University), Series C, Daily Reset VRDO*, SPA: JP Morgan Chase Bank, 1.63%, 03/01/40 ......................... VMIG1/A-1+ 1,000,000 2,100,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (Washington University), Series D, Daily Reset VRDO*, SPA: JP Morgan Chase Bank, 1.63%, 09/01/30 ......................... VMIG1/A-1+ 2,100,000 5,000,000 University of Missouri, Curators of the University of Missouri System Facilities Revenue Bonds, Series A, Daily Reset VRDO*, 1.72%, 11/01/32 .................. VMIG1/A-1+ 5,000,000 ------------- 23,165,000 -------------
MONTANA (3.6%) $ 5,620,000 Montana State, Health Facilities Authority Revenue Bonds, Series A, Weekly Reset VRDO*, FGIC Insured, SPA: Wells Fargo, 1.69%, 12/01/15 .......... VMIG1/A-1+ $ 5,620,000 ------------- NEVADA (4.4%) 6,800,000 Clark County, NV Airport Revenue Bonds, Series C, Weekly Reset VRDO*, FGIC Insured, SPA: Landesbank Baden-Wurttm, 1.66%, 07/01/29 ............ VMIG1/A-1+ 6,800,000 ------------- NEW YORK (4.5%) 6,000,000 Long Island, NY Power Authority Revenue Bonds, Series 1A, Weekly Reset VRDO*, LOC: Bayerische Landesbank, 1.68%, 05/01/33 .............. VMIG1/A-1+ 6,000,000 1,000,000 New York, NY City Transitional Finance Authority Revenue Bonds, Series 3, Daily Reset VRDO*, SPA: Bank of New York, 1.71%, 11/01/22 .............. VMIG1/A-1+ 1,000,000 ------------- 7,000,000 ------------- NORTH CAROLINA (5.8%) 5,070,000 Concord, NC Utility Systems Revenue Bonds, Series B, Weekly Reset VRDO*, FSA Insured, SPA: Wachovia Bank, 1.66%, 12/01/22 ...................... VMIG1/NR 5,070,000 Durham, NC General Obligation Bonds (Public Improvement Project), Weekly Reset VRDO*, SPA: Wachovia Bank of North Carolina, 1,150,000 1.70%, 02/01/09 .................................... VMIG1/A-1 1,150,000 1,270,000 1.32%, 02/01/12 .................................... VMIG1/A-1 1,270,000 1,475,000 1.70%, 02/01/13 .................................... VMIG1/A-1 1,475,000 ------------- 8,965,000 ------------- OHIO (2.4%) 3,675,000 Ohio Housing Finance Agency Mortgage Revenue Bonds (Residential Mortgage), Series E-AMT, Weekly Reset VRDO*, SPA:FHLB, 1.73%, 09/01/34 ..................................... VMIG1/NR 3,675,000 ------------- TEXAS (4.4%) 6,800,000 Texas State, TX Turnpike Authority Central System Revenue Bonds, Series B, Weekly Reset VRDO*, AMBAC Insured, SPA: Bank of Nova Scotia, 1.66%, 08/15/42 ..................................... Aaa/A-1 6,800,000 -------------
UTAH (2.0%) $ 3,150,000 University of Utah, Auxiliary & Campus Facilities Revenue Bonds, Series A, Weekly Reset VRDO*, SPA: Bank of Nova Scotia, 1.70%, 04/01/27 ........... VMIG1/A-1 $ 3,150,000 ------------- VIRGINIA (3.8%) 6,000,000 University of Virginia Revenue Bonds, Series A, Weekly Reset VRDO*, 1.65%, 06/01/34 ................. VMIG1/A-1+ 6,000,000 ------------- WASHINGTON (3.8%) 6,000,000 Seattle, WA Water System Revenue Bonds, Series A, Weekly Reset VRDO*, LOC: Bayerische Landesbank, 1.68%, 03/01/32 ......................... VMIG1/A-1+ 6,000,000 ------------- Total Investments (Amortized Cost $155,790,000) (a) ................................. 100.0% 155,790,000 Other assets less liabilities ....................... 0.0 34,450 ----- ------------- Net assets .......................................... 100.0% $ 155,824,450 ===== =============
* Variable rate demand obligation (VRDOs) are payable upon demand within the same day for securities with daily liquidity or seven days for securities with weekly liquidity. (a) Cost for Federal tax purposes is identical. PORTFOLIO ABBREVIATIONS: AMT - Alternative Minimum Tax FGIC - Financial Guaranty Insurance Corporation FHLB - Federal Home Loan Bank FNMA - Federal National Mortgage Association LOC - Letter of Credit NR - Not Rated SPA - Standby Bond Purchase Agreement VRDO - Variable Rate Demand Obligation See accompanying notes to financial statements PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2004 (UNAUDITED)
FACE AMOUNT U.S. GOVERNMENT AGENCIES (98.1%) VALUE - ------------ ----------------------------------------------------------------- ------------- FEDERAL FARM CREDIT BANK (10.0%) $ 80,000,000 1.65%, 10/01/04 ................................................. $ 80,000,000 12,000,000 1.02%, 10/12/04 ................................................. 11,996,260 ------------- 91,996,260 ------------- FEDERAL HOME LOAN BANK (88.1%) 50,000,000 1.54%, 10/01/04 ................................................. 50,000,000 95,000,000 1.51%, 10/06/04 ................................................. 94,980,075 90,000,000 1.63%, 10/08/04 ................................................. 89,971,475 95,000,000 1.54%, 10/20/04 ................................................. 94,922,786 90,000,000 1.74%, 10/22/04 ................................................. 89,908,650 95,000,000 1.56%, 10/27/04 ................................................. 94,893,310 85,000,000 1.54%, 10/29/04 ................................................. 84,898,189 50,000,000 1.71%, 11/01/04 ................................................. 49,926,375 90,000,000 1.63%, 11/19/04 ................................................. 89,800,938 25,000,000 1.74%, 12/01/04 ................................................. 24,926,292 30,000,000 1.68%, 12/03/04 ................................................. 29,911,800 12,000,000 1.67%, 12/08/04 ................................................. 11,962,260 ------------- 806,102,150 ------------- Total U.S. Government Agencies .............................. 898,098,410 -------------
SHARES INVESTMENT COMPANY (2.0%) - ------------ ----------------------------------------------------------------- 18,270,460 One Group Government Money Market Fund, Institutional Shares .......................................... 18,270,460 ------------- Total Investments (Amortized Cost $916,368,870) (a) .............. 100.1% 916,368,870 Other assets less liabilities .................... (0.1) (1,025,029) ----- ------------- Net assets ....................................... 100.0% $ 915,343,841 ===== =============
(a) 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 SEPTEMBER 30, 2004 (UNAUDITED)
CASH TAX-FREE GOVERNMENT FUND FUND FUND ------------ ------------- ------------- ASSETS: Investments at value and amortized cost (note 2) ............. $466,205,883 $ 155,790,000 $ 916,368,870 Cash ......................................................... -- 412 -- Interest receivable .......................................... 235,295 226,975 12,831 Other assets ................................................. 31,304 11,867 62,422 ------------ ------------- ------------- Total Assets .............................................. 466,472,482 156,029,254 916,444,123 ------------ ------------- ------------- LIABILITIES: Dividends payable ............................................ 436,800 137,461 809,864 Adviser and Administrator fees payable ....................... 98,254 20,036 138,034 Distribution fees payable .................................... 26,030 12,754 101,674 Accrued expenses ............................................. 60,247 34,553 50,710 ------------ ------------- ------------- Total Liabilities ......................................... 621,331 204,804 1,100,282 ------------ ------------- ------------- NET ASSETS ................................................... $465,851,151 $ 155,824,450 $ 915,343,841 ============ ============= ============= NET ASSETS CONSIST OF: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share .................................. $ 4,658,379 $ 1,558,223 $ 9,152,754 Additional paid-in capital ................................... 461,179,334 154,353,587 906,122,828 Undistributed (overdistributed) net investment income ........ 13,438 (87,360) 68,263 Accumulated net realized loss on investments ................. -- -- (4) ------------ ------------- ------------- $465,851,151 $ 155,824,450 $ 915,343,841 ============ ============= ============= SHARES OF BENEFICIAL INTEREST: Original Shares Class: Net Assets ................................................ $343,185,401 $ 104,983,112 $ 355,340,336 ============ ============= ============= Shares outstanding ........................................ 343,404,192 104,981,654 355,311,002 ============ ============= ============= Net asset value per share ................................. $ 1.00 $ 1.00 $ 1.00 ============ ============= ============= Service Shares Class: Net Assets ................................................ $122,665,750 $ 50,841,338 $ 560,003,505 ============ ============= ============= Shares outstanding ........................................ 122,433,749 50,840,615 559,964,442 ============ ============= ============= 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 SIX MONTHS ENDED SEPTEMBER 30, 2004 (UNAUDITED)
CASH TAX-FREE GOVERNMENT FUND FUND FUND ----------- ----------- ----------- INVESTMENT INCOME: Interest income ....................................... $ 2,638,714 $ 925,813 $ 5,195,386 ----------- ----------- ----------- EXPENSES: Investment Advis er fees (note 3) ..................... 744,960 246,637 1,381,382 Administrator fees (note 3) ........................... 310,739 86,955 314,897 Distribution fees (note 3) ............................ 152,054 68,688 621,446 Trustees' fees and expenses ........................... 43,303 24,430 61,138 Insurance ............................................. 22,151 8,421 43,287 Legal fees ............................................ 16,096 11,394 33,769 Fund accounting fees .................................. 14,245 13,760 13,766 Shareholders' reports ................................. 13,619 2,376 8,731 Registration fees and dues ............................ 13,498 2,013 6,368 Auditing and tax fees ................................. 13,239 10,723 14,240 Transfer and shareholder servicing agent fees ......... 5,799 5,449 5,335 Custodian fees ........................................ 3,460 6,279 2,280 Miscellaneous ......................................... 3,228 4,009 18,510 ----------- ----------- ----------- Total expenses ........................................ 1,356,391 491,134 2,525,149 Advisory fees contractual reduction (note 3) .......... (491,568) (191,909) (997,133) Administrative fees contractual reduction (note 3) .... (205,044) (67,660) (227,304) Expenses paid indirectly (note 5) ..................... -- (912) -- ----------- ----------- ----------- Net expenses .......................................... 659,779 230,653 1,300,712 ----------- ----------- ----------- Net investment income .................................... 1,978,935 695,160 3,894,674 Net realized gain (loss) from securities transactions .... -- -- (4) ----------- ----------- ----------- Net change in net assets resulting from operations ....... $ 1,978,935 $ 695,160 $ 3,894,670 =========== =========== ===========
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 ----------------------------------- ----------------------------------- Six Months Ended Six Months Ended September 30, September 30, 2004 Year Ended 2004 Year Ended (unaudited) March 31, 2004 (unaudited) March 31, 2004 ---------------- --------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ................ $ 1,978,935 $ 3,803,973 $ 695,160 $ 1,201,018 Net realized gain (loss) from securities transactions ....... -- 1,319 -- 38 --------------- --------------- --------------- --------------- Change in net assets resulting from operations .......... 1,978,935 3,805,292 695,160 1,201,056 --------------- --------------- --------------- --------------- DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares .................... (1,520,817) (3,014,705) (511,860) (891,803) Service Shares ..................... (458,118) (789,268) (183,300) (309,215) --------------- --------------- --------------- --------------- Total dividends to shareholders from net investment income ......... (1,978,935) (3,803,973) (695,160) (1,201,018) --------------- --------------- --------------- --------------- CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares ...................... 442,351,639 710,757,056 114,692,751 127,920,769 Service Shares ....................... 204,620,554 356,252,712 37,174,698 63,986,710 --------------- --------------- --------------- --------------- 646,972,193 1,067,009,768 151,867,449 191,907,479 --------------- --------------- --------------- --------------- Reinvested dividends: Original Shares ...................... 37,490 61,263 27,200 69,733 Service Shares ....................... 426,238 802,624 166,348 320,397 --------------- --------------- --------------- --------------- 463,728 863,887 193,548 390,130 --------------- --------------- --------------- --------------- Cost of shares redeemed: Original Shares ...................... (386,232,990) (784,672,808) (108,520,598) (159,333,530) Service Shares ....................... (201,563,060) (361,048,456) (36,161,705) (70,987,619) --------------- --------------- --------------- --------------- (587,796,050) (1,145,721,264) (144,682,303) (230,321,149) --------------- --------------- --------------- --------------- Change in net assets from capital share transactions ...... 59,639,871 (77,847,609) 7,378,694 (38,023,540) --------------- --------------- --------------- --------------- Total change in net assets ........... 59,639,871 (77,846,290) 7,378,694 (38,023,502) NET ASSETS: Beginning of period .................. 406,211,280 484,057,570 148,445,756 186,469,258 --------------- --------------- --------------- --------------- End of period ........................ $ 465,851,151 $ 406,211,280 $ 155,824,450 $ 148,445,756 =============== =============== =============== =============== GOVERNMENT FUND ----------------------------------- Six Months Ended September 30, 2004 Year Ended (unaudited) March 31, 2004 ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ................ $ 3,894,674 $ 6,140,224 Net realized gain (loss) from securities transactions ....... (4) 421 --------------- --------------- Change in net assets resulting from operations .......... 3,894,670 6,140,645 --------------- --------------- DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares .................... (1,884,918) (2,775,205) Service Shares ..................... (2,009,756) (3,365,022) --------------- --------------- Total dividends to shareholders from net investment income ......... (3,894,674) (6,140,227) --------------- --------------- CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares ...................... 494,258,254 1,035,054,356 Service Shares ....................... 1,126,852,930 1,762,487,853 --------------- --------------- 1,621,111,184 2,797,542,209 --------------- --------------- Reinvested dividends: Original Shares ...................... 11,573 46,240 Service Shares ....................... 1,853,189 3,380,896 --------------- --------------- 1,864,762 3,427,136 --------------- --------------- Cost of shares redeemed: Original Shares ...................... (402,394,170) (1,041,701,880) Service Shares ....................... (1,143,780,523) (1,638,518,517) --------------- --------------- (1,546,174,693) (2,680,220,397) --------------- --------------- Change in net assets from capital share transactions ...... 76,801,253 120,748,948 --------------- --------------- Total change in net assets ........... 76,801,249 120,749,366 NET ASSETS: Beginning of period .................. 838,542,592 717,793,226 --------------- --------------- End of period ........................ $ 915,343,841 $ 838,542,592 =============== ===============
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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 ("Cash Fund") (a diversified portfolio which commenced operations on December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust ("Tax-Free Fund") (a non-diversified portfolio which commenced operations on April 4, 1989), and Pacific Capital U.S. Government Securities Cash Assets Trust ("Goverment Fund") (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 $0.01 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 U.S. generally accepted accounting principles. a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the amortized cost method permitted in accordance with Rule 2a-7 under 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 and the custodian are 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. d) MULTIPLE CLASS ALLOCATIONS: 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. e) 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. f) 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 in order to compare the value of the collateral to the amount of the "loan" (repurchase agreements being defined as "loans" in the 1940 Act), including the accrued interest earned thereon. If the value of the collateral is less than 102% of the loan plus the accrued interest thereon, additional collateral is required from the borrower. g) USE OF ESTIMATES: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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: The Asset Management Group of Bank of Hawaii (the "Adviser"), serves as Investment Adviser to the Funds. In this role, under Investment Advisory Agreements, the Adviser supervises the Funds' investments and provides various services. Aquila Investment Management LLC the ("Administrator"), a wholly-owned subsidiary of Aquila Management Corporation, the Trust's founder and sponsor, serves as the Administrator for the Trust under an Administration Agreement with the Trust. The Administrator provides all administrative services to the Funds other than those relating to the investment portfolios. 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: Cash Fund - 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. Tax-Free Fund - 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. Government Fund - 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. 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. Advisory and administrative fees in a given fiscal year may be recouped prior to the end of such year if interest rates were to increase. Contractual reduction of fees, if any, is calculated on a fiscal year basis. For the period April 1, 2002 through September 30, 2004, advisory and administrative fees have been contractually reduced (see ii above) due to the low interest rate environment. For the six months ended September 30, 2004: Cash Fund incurred advisory and administration fees of $744,960 and $310,739; due to the expense limitation, such fees were reduced by $491,568 and $205,044, respectively. Tax-Free Fund incurred advisory and administration fees of $246,637 and $86,955; due to the expense limitation, such fees were reduced by $191,909 and $67,660, respectively. Government Fund incurred advisory and administration fees of $1,381,382 and $314,897; due to the expense limitation, such fees were reduced by $997,133 and $227,304, respectively. 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 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. c) OTHER RELATED PARTY TRANSACTIONS: For the six months ended September 30, 2004, the following amounts were accrued for legal fees: Cash Fund $16,096; Tax-Free Fund $11,394; Government Fund $33,769. Of these amounts, $14,767, $10,997 and $32,085, respectively, were allocable to Hollyer Brady Barrett &Hines LLP, counsel to the Fund, for legal services in conjunction with the Fund's ongoing operations. The Secretary of the Fund is a Partner of Hollyer Brady Barrett & Hines LLP. 4. 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. 5. EXPENSES The Funds have negotiated an expense offset arrangement with their custodian, wherein they receive credit toward the reduction of custodian fees and other expenses whenever there are uninvested cash balances. The Statements of Operations reflect the total expenses before any offset, the amount of offset and the net expenses. It is the general intention of the Funds to invest, to the extent practicable, some or all of cash balances in income-producing assets rather than leave cash on deposit. 6. PORTFOLIO ORIENTATION Since the Tax-Free Fund 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. 7. INCOME TAX INFORMATION AND DISTRIBUTIONS The Funds declare dividends daily from net investment income and make payments monthly in additional shares at the net asset value per share, in cash, or a combination of both, at the shareholder's option. The tax character of distributions paid during 2004 and 2003 were as follows:
CASH FUND TAX-FREE FUND GOVERNMENT FUND -------------------------- -------------------------- -------------------------- 2004 2003 2004 2003 2004 2003 ----------- ----------- ----------- ----------- ----------- ----------- Net tax-exempt income ... $ -- $ -- $ 1,201,018 $ 1,772,705 $ -- $ -- Ordinary income ......... 3,508,396 6,248,680 37,174 12 5,586,258 8,577,138 Capital gain ............ -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total ................... $ 3,508,396 $ 6,248,680 $ 1,238,192 $ 1,772,717 $ 5,586,258 $ 8,577,138 =========== =========== =========== =========== =========== ===========
As of March 31, 2004, the components of distributable earning on a tax basis were as follows: TAX-FREE GOVERNMENT CASH FUND FUND FUND ---------- ---------- ---------- Undistributed ordinary income ........ $ 296,896 $ -- $ 554,387 Undistributed tax-exempt income ...... -- -- -- ---------- ---------- ---------- $ 296,896 $ -- $ 554,387 ========== ========== ========== RECLASSIFICATION OF CAPITAL ACCOUNTS On the statements of assets and liabilities, as a result of certain differences in the computation of net investment income and net realized capital gains under federal income tax rules and regulations versus generally accepted accounting principles, a reclassification has been made to increase (decrease) undistributed net investment income (distributions in excess of net investment income), accumulated net realized gain (loss) on investments and additional paid-in capital for the Funds as follows: TAX-FREE GOVERNMENT CASH FUND FUND FUND ---------- ---------- ---------- Paid-in Capital ....................... $ -- $ (37,136) $ -- Undistributed net investment income ... 1,319 37,174 421 Accumulated net realized gain (loss) .. (1,319) (38) (421) These reclassifications are primarily due to taxable distributions in excess of net investment income for the Tax-Free Fund and dividend redesignations for the Cash Fund and the Government Fund. Net assets are not affected by these changes. PACIFIC CAPITAL CASH ASSETS TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ .005 0.01 0.01 0.03 0.06 0.05 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (.005) (0.01) (0.01) (0.03) (0.06) (0.05) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.50%* 0.90% 1.35% 2.52% 5.90% 4.89% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 343 $ 287 $ 361 $ 353 $ 364 $ 513 Ratio of expenses to average net assets ...... 0.24%** 0.21% 0.36% 0.58% 0.57% 0.56% Ratio of net investment income to average net assets ........................ 1.01%** 0.90% 1.34% 2.51% 5.77% 4.80% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.57%** 0.57% 0.58% -- -- -- Ratio of net investment income to average net assets ........................ 0.68%** 0.54% 1.12% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ...... 0.24%** 0.21% 0.36% 0.57% 0.57% 0.56% SERVICE SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.004 0.01 0.01 0.02 0.05 0.05 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (0.004) (0.01) (0.01) (0.02) (0.05) (0.05) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.38%* 0.65% 1.09% 2.27% 5.63% 4.63% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 123 $ 119 $ 123 $ 146 $ 221 $ 174 Ratio of expenses to average net assets ...... 0.49%** 0.46% 0.61% 0.83% 0.82% 0.81% Ratio of net investment income to average net assets ........................ 0.75%** 0.65% 1.10% 2.36% 5.49% 4.53% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.82%** 0.82% 0.83% -- -- -- Ratio of net investment income to average net assets ........................ 0.42%** 0.29% 0.88% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ...... 0.49%** 0.46% 0.61% 0.82% 0.82% 0.81%
- ---------- * 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
ORIGINAL SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.005 0.01 0.01 0.02 0.04 0.03 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (0.005) (0.01) (0.01) (0.02) (0.04) (0.03) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.46%* 0.84% 1.15% 2.00% 3.58% 2.95% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 105 $ 99 $ 130 $ 100 $ 101 $ 100 Ratio of expenses to average net assets ...... 0.20%** 0.17% 0.28% 0.51% 0.53% 0.52% Ratio of net investment income to average net assets ........................ 0.91%** 0.84% 1.13% 1.94% 3.50% 2.93% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.51%** 0.52% 0.50% -- -- -- Ratio of net investment income to average net assets ........................ 0.60%** 0.50% 0.90% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ......... 0.19%** 0.17% 0.27% 0.51% 0.53% 0.52% SERVICE SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.003 0.01 0.01 0.02 0.03 0.03 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (0.003) (0.01) (0.01) (0.02) (0.03) (0.03) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.34%* 0.59% 0.90% 1.75% 3.32% 2.70% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 51 $ 50 $ 56 $ 52 $ 54 $ 51 Ratio of expenses to average net assets ...... 0.45%** 0.42% 0.53% 0.77% 0.78% 0.77% Ratio of net investment income to average net assets ........................ 0.67%** 0.59% 0.89% 1.77% 3.26% 2.66% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.76%** 0.77% 0.76% -- -- -- Ratio of net investment income to average net assets ........................ 0.35%** 0.25% 0.66% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ......... 0.44%** 0.42% 0.52% 0.77% 0.78% 0.77%
- ---------- * Not annualized. ** Annualized. See accompanying notes to financial statements. PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.005 0.01 0.01 0.03 0.06 0.05 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (0.005) (0.01) (0.01) (0.03) (0.06) (0.05) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.53%* 0.96% 1.34% 2.73% 5.88% 4.83% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 355 $ 263 $ 270 $ 306 $ 151 $ 166 Ratio of expenses to average net assets ...... 0.16%** 0.11% 0.25% 0.45% 0.47% 0.49% Ratio of net investment income to average net assets ........................ 1.07%** 0.96% 1.34% 2.47% 5.73% 4.73% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.45%** 0.46% 0.46% -- -- -- Ratio of net investment income to average net assets ........................ 0.79%** 0.62% 1.12% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ...... 0.16%** 0.11% 0.24% 0.45% 0.47% 0.49% SERVICE SHARES ---------------------------------------------------------------------- Six Months Ended Year Ended March 31, 9/30/04 ------------------------------------------------------ (unaudited) 2004 2003 2002 2001 2000 ----------- ------ ------ ------ ------ ------ Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ ------ Income from investment operations: Net investment income ........................ 0.004 0.01 0.01 0.02 0.05 0.04 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ......... (0.004) (0.01) (0.01) (0.02) (0.05) (0.04) ------ ------ ------ ------ ------ ------ Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== ====== Total return .................................... 0.40%* 0.71% 1.09% 2.48% 5.62% 4.56% Ratios/supplemental data Net assets, end of period (in millions) ...... $ 560 $ 575 $ 448 $ 457 $ 332 $ 293 Ratio of expenses to average net assets ...... 0.41%** 0.36% 0.49% 0.70% 0.72% 0.74% Ratio of net investment income to average net assets ........................ 0.81%** 0.71% 1.08% 2.39% 5.47% 4.50% The expense and net investment income ratios without the effect of the Adviser's and Administrator's contractual cap on fees were (note 3): Ratio of expenses to average net assets ...... 0.70%** 0.71% 0.71% -- -- -- Ratio of net investment income to average net assets ........................ 0.52%** 0.36% 0.86% -- -- -- The expense ratios after giving effect to the expense offset for uninvested cash balances were: Ratio of expenses to average net assets ...... 0.41%** 0.36% 0.49% 0.70% 0.72% 0.74%
- ---------- * Not annualized. ** Annualized. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- ANALYSIS OF EXPENSES (UNAUDITED) As a shareholder of the Trust, you may incur ongoing costs, including management fees; distribution (12b-1) fees; and other Trust expenses. The tables below are intended to help you understand your ongoing costs (in dollars) of investing in the Trust and to compare these costs with the ongoing costs of investing in other mutual funds. The tables below are based on an investment of $1,000 invested on April 1, 2004 and held for the six months ended September 30, 2004. ACTUAL EXPENSES This table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period". FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004 BEGINNING ENDING EXPENSES ACTUAL ACCOUNT ACCOUNT PAID DURING TOTAL RETURN(1) VALUE VALUE THE PERIOD(2) - -------------------------------------------------------------------------------- CASH FUND Original Shares 0.50% $1,000 $1,005.00 $1.21 Service Shares 0.38% $1,000 $1,003.80 $2.46 - -------------------------------------------------------------------------------- TAX-FREE FUND Original Shares 0.46% $1,000 $1,004.60 $0.95 Service Shares 0.34% $1,000 $1,003.40 $2.21 - -------------------------------------------------------------------------------- GOVERNMENT FUND Original Shares 0.53% $1,000 $1,005.30 $0.80 Service Chares 0.40% $1,000 $1,004.00 $2.06 - -------------------------------------------------------------------------------- (1) ASSUMES REINVESTMENT OF ALL DIVIDENDS. TOTAL RETURN IS NOT ANNUALIZED, AS IT MAY NOT BE REPRESENTATIVE OF THE TOTAL RETURN FOR THE YEAR. (2) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.24% AND 0.49%, RESPECTIVELY, FOR CASH FUND ORIGINAL SHARES AND SERVICE SHARES, 0.19% AND 0.44%, RESPECTIVELY, FOR TAX-FREE FUND ORIGINAL SHARES AND SERVICE SHARES, AND 0.16% AND 0.41%, RESPECTIVELY, FOR GOVERNMENT FUND ORIGINAL SHARES AND SERVICE SHARES, RESPECTIVELY, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/365 (TO REFLECT THE ONE-HALF YEAR PERIOD). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Trust's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Trust and other mutual funds. To do so, compare this 5.00% hypothetical example relating to the Trust with the 5.00% hypothetical examples that appear in the shareholder reports of other mutual funds. FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004 HYPOTHETICAL ANNUALIZED BEGINNING ENDING EXPENSES TOTAL ACCOUNT ACCOUNT PAID DURING RETURN VALUE VALUE THE PERIOD - -------------------------------------------------------------------------------- CASH FUND Original Shares 5.00% $1,000 $1,023.87 $1.22 Service Shares 5.00% $1,000 $1,022.61 $2.48 - -------------------------------------------------------------------------------- TAX-FREE FUND Original Shares 5.00% $1,000 $1,024.12 $0.96 Service Shares 5.00% $1,000 $1,022.86 $2.23 - -------------------------------------------------------------------------------- GOVERNMENT FUND Original Shares 5.00% $1,000 $1,024.27 $0.81 Service Chares 5.00% $1,000 $1,023.01 $2.08 - -------------------------------------------------------------------------------- (1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.24% AND 0.49%, RESPECTIVELY, FOR CASH FUND ORIGINAL SHARES AND SERVICE SHARES, 0.19% AND 0.44%, RESPECTIVELY, FOR TAX-FREE FUND ORIGINAL SHARES AND SERVICE SHARES, AND 0.16% AND 0.41%, RESPECTIVELY, FOR GOVERNMENT FUND ORIGINAL SHARES AND SERVICE SHARES, RESPECTIVELY, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/365 (TO REFLECT THE ONE-HALF YEAR PERIOD). - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROXY VOTING RECORD. The Trust does not invest in equity securities. Accordingly, there were no matters relating to a portfolio security considered at any shareholder meeting held during the 12 months ended June 30, 2004 with respect to which the Trust was entitled to vote. Applicable regulations require us to inform you that the foregoing proxy voting information is available on the SEC website at http://www.sec.gov. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INFORMATION AVAILABLE (UNAUDITED) Much of the information that the funds in the Aquilasm Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent the entire list of portfolio securities of your fund twice a year in the semi-annual and annual reports you receive. You should know, however, that we prepare, and have available, portfolio listings at the end of each month. Whenever you may be interested in seeing a listing of your trust's portfolio other than in your shareholder reports, please check our website (www.aquilafunds.com) or call us at 1-800-228-7496. - -------------------------------------------------------------------------------- (THIS PAGE INTENTIONALLY LEFT BLANK) INVESTMENT ADVISER Asset Management Group of Bank of Hawaii P.O. Box 3170 o Honolulu, Hawaii 96802 ADMINISTRATOR Aquila Investment Management LLC 380 Madison Avenue, Suite 2300 o New York, New York 10017 BOARD OF TRUSTEES Theodore T. Mason, Chairman Thomas W. Courtney Richard W. Gushman, II Diana P. Herrmann Stanley W. Hong Russell K. Okata Douglas Philpotts Oswald K. Stender CHAIRMAN EMERITUS AND FOUNDER Lacy B. Herrmann OFFICERS Diana P. Herrmann, Vice Chair and President Charles E. Childs, III, Executive Vice President Sherri Foster, Vice President Joseph P. DiMaggio, Chief Financial Officer and Treasurer Edward M.W. Hines, Secretary DISTRIBUTOR Aquila Distributors, Inc. 380 Madison Avenue, Suite 2300 o New York, New York 10017 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC Inc. 760 Moore Road o King of Prussia, Pennsylvania 19406 CUSTODIAN Bank One Trust Company, N.A. 1111 Polaris Parkway o Columbus, Ohio 43240 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM KPMG LLP 757 Third Avenue o New York, New York 10017 Further information is contained in the Prospectus which must precede or accompany this report. ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) as of a date within 90 days of the fling of this report, the registrant's chief financial and executive officers have concluded that the disclosure controls and procedures of the registrant are appropriately designed to ensure tat information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated t registrant's management, including its principal executive officer(s) and principal financial officer(s), to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation, including no significant deficiencies or material weaknesses that required corrective action. ITEM 10. EXHIBITS. (a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. 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. CASH ASSETS TRUST By: /s/ Diana P. Herrmann - --------------------------------- Vice Chair, Trustee and President December 6, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Chief Financial Officer and Treasurer December 6, 2004 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/ Diana P. Herrmann - --------------------------------- Diana P. Herrmann Vice Chair, Trustee and President December 6, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer and Treasurer December 6, 2004 CASH ASSETS TRUST EXHIBIT INDEX (a)(1) Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002. (a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940. EX-99.CERT 2 cat306cert.txt 306 CERTIFICATIONS EX-99.CERT I, Diana P. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Cash Assets Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: December 6, 2004 /s/ Diana P. Herrmann - ---------------------- Title: Vice Chair, Trustee and President I, Joseph P. DiMaggio, certify that: 1. I have reviewed this report on Form N-CSR of Cash Assets Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 2. Based on my knowledge, the financial statements, other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report ("Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: December 6, 2004 /s/ Joseph P. DiMaggio - ------------------------ Title: Chief Financial Officer and Treasurer EX-99.906 CERT 3 cat906cert.txt 906 CERTIFICATIONS CERTIFICATION Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (subsections and (b) of section 1350, chapter 63 of title 18,United States Code), each of the undersigned officers of Cash Assets Trust, do hereby certify to such officer's knowledge, that: The report on Form N-CSR of Cash Assets Trust for the period ended September 30, 2004 (the "Form N-CSR")fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Cash Assets Trust. Dated: December 6, 2004 /s/ Diana P. Herrmann ---------------------- Vice Chair, Trustee and President Cash Assets Trust Dated: December 6, 2004 /s/ Joseph P. DiMaggio ----------------------- Chief Financial Officer and Treasurer Cash Assets Trust A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Cash Assets Trust and will be retained by Cash Assets Trust and furnished to the Securities and Exchange Commission or its staff upon request. This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----