-----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, TTnTEdhlApQqL6xQqV1eih1BJ0XdOMPBxfG/b2BfSs1QVjkfHD7bfXjjn12aa5hQ QhTv1mb5KWP9bJ+HRWiElA== 0000749748-09-000015.txt : 20090814 0000749748-09-000015.hdr.sgml : 20090814 20090814154046 ACCESSION NUMBER: 0000749748-09-000015 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090923 FILED AS OF DATE: 20090814 DATE AS OF CHANGE: 20090814 EFFECTIVENESS DATE: 20090814 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: DEF 14A SEC ACT: 1934 Act SEC FILE NUMBER: 811-04066 FILM NUMBER: 091015429 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 0000749748 S000006652 Pacific Capital Cash Assets Trust C000018146 Pacific Capital Cash Assets Trust Original Shares CATXX C000018147 Pacific Capital Cash Assets Trust Service Shares CASXX 0000749748 S000006653 Pacific Capital Tax-Free Cash Assets Trust C000018148 Pacific Capital Tax-Free Cash Assets Trust Original Shares TFCXX C000018149 Pacific Capital Tax-Free Cash Assets Trust Service Shares TFAXX 0000749748 S000006654 Pacific Capital U.S. Government Securities Cash Assets Trust C000018150 Pacific Capital U.S.Government Securities Cash Assets Trust Original Shares USCXX C000018151 Pacific Capital U.S. Government Securities Cash Assets Trust Service Shares UCSXX DEF 14A 1 pcatpx09.txt DEFINITIVE PROXY STATEMENT AND FORM OF CARDS PACIFIC CAPITAL CASH ASSETS TRUST PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST 380 Madison Avenue, Suite 2300, New York, NY 10017 Notice of Special Meeting of Shareholders to Be Held on September 23, 2009 To Shareholders: The purpose of this Notice is to advise you that a Special Meeting of the Shareholders of Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Pacific Capital U.S. Government Securities Cash Assets Trust (each, a "Fund") will be held: Place: (a) at the offices of the Funds 380 Madison Avenue Suite 2300 New York, NY 10017; Time: (b) on Wednesday, September 23, 2009 at 10:00 a.m. Eastern Daylight Time; Purposes: (c) For the following purposes: (i) to elect eight Trustees; each Trustee elected will hold office until the next meeting of each Fund's shareholders or until his or her successor is duly elected (Proposal No. 1); (ii) To ratify (that is, to approve) or reject the selection of Tait, Weller & Baker LLP as each Fund's independent registered public accounting firm for the fiscal year ending March 31, 2010 (Proposal No. 2); (iii) To act upon any other matters which may properly come before the Meeting at the scheduled time and place or any adjourned meeting or meetings. Who Can Vote What Shares: (d) To vote at the Meeting, you must have been a shareholder on the records of the applicable Fund at the close of business on June 29, 2009 (the "record date"). The number of shares of each Fund's outstanding classes of shares that you held at that time and the net asset values of each class of shares (normally $1.00 per share) at that time determine the number of votes you may cast at the Meeting (or any adjourned meeting or meetings). By order of the Board of Trustees, EDWARD M. W. HINES Secretary August 19, 2009 Please Note: If you do not expect to attend the Meeting, please vote by any of three ways: by the Internet, by telephone or by completing the enclosed proxy card and returning it in the accompanying stamped envelope. To avoid unnecessary expense to the Funds, we request your cooperation in voting no matter how large or small your holding may be. PACIFIC CAPITAL CASH ASSETS TRUST PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST Proxy Statement Introduction The purpose of the Notice preceding this Proxy Statement is to advise you of the time, place and purposes of a Meeting of the Shareholders of Pacific Capital Cash Assets Trust (the "Cash Fund"), Pacific Capital Tax-Free Cash Assets Trust (the "Tax-Free Fund") and Pacific Capital U.S. Government Securities Cash Assets Trust (the "U.S. Government Fund"). Each of these (referred to also as a "Fund" and collectively as the "Funds") is a portfolio and series of Cash Assets Trust, a Massachusetts business trust (the "Business Trust"). The purpose of this Proxy Statement is to give you information on which you may base your voting decisions. Each Fund's investment adviser (the "Adviser") is Asset Management Group of Bank of Hawaii, Financial Plaza of the Pacific, P.O. Box 3170, Honolulu, HI 96802. Each Fund's Administrator (the "Administrator") is Aquila Investment Management LLC, 380 Madison Avenue, Suite 2300, New York, NY 10017, the sole subsidiary of the Business Trust's founder, Aquila Management Corporation. Each Fund's principal underwriter (the "Distributor") is Aquila Distributors, Inc., 380 Madison Avenue, Suite 2300, New York, NY 10017. A copy of the Funds' most recent annual report will be sent to you without charge upon written request to the Distributor, at the above address, or by calling 800-437-1020 toll-free or 212-697-6666. This Notice and Proxy Statement are first being mailed on or about August 19, 2009. You should read this Proxy Statement prior to voting. If your shares are registered in the name of your broker or someone other than yourself, you may authorize that person to vote your shares. If your shares are registered in your name, then you may vote in one of three ways: (1) Proxy Card: The enclosed proxy card authorizes the persons named (or their substitutes) to vote your shares; these persons are called the "proxy holders." If you own shares in more than one Fund, you will receive a proxy card from each Fund of which you own shares. As to the election of Trustees you may authorize the proxy holders to vote your shares for the entire slate indicated below by marking the appropriate box on the proxy card or by merely signing and returning your proxy card with no instructions. Or you may withhold the authority of the proxy holders to vote on the election of Trustees by marking the appropriate box. Also, you may withhold that authority as to any particular nominee by following the instructions on the proxy card. As to the other matter listed on the proxy card, you may direct the proxy holders to vote your shares on this proposal by marking the appropriate box "For" or "Against" or instruct them not to vote your shares on the proposal by marking the "Abstain" box. If you return your signed proxy card and do not mark a box on the proposal, the proxy holders will vote your shares for that proposal. (2) Internet Voting: To vote your shares by the Internet, please contact one or more of the Funds at the Internet address shown on your proxy card. You will be prompted to enter the control number on the proxy card. Follow the instructions on the screen, using your proxy card as a guide. If you vote by the Internet, you need not return the proxy card by mail. (3) Telephone Voting: To vote your shares by telephone, call the toll-free number on your proxy card. You will be prompted to enter the control number on the proxy card. Follow the recorded instructions using your proxy card as a guide. If you vote by phone, you need not return the proxy card by mail. General Information You may end the power of the proxy holders to vote your shares by: (i) so notifying each Fund of which you are a shareholder in writing; (ii) signing a new and different proxy card (if the Fund receives it before the old one is used); (iii) voting your shares at the meeting in person or by your duly appointed agent; or (iv) calling the toll-free number provided or contacting the Fund's Internet address, both of which are detailed on your proxy card, entering your control number and revoking your previous vote. Proxies for shares held by brokers in "street name" and not voted or marked as abstentions will be counted for purposes of determining a quorum. They will be counted as present in determining voting results, and will therefore have the same effect as negative votes. The Funds are sending you this Notice and Proxy Statement in connection with the solicitation by their Trustees of proxies to be used at the Meeting to be held at the time and place and for the purposes indicated in the Notice or any adjourned meeting or meetings. Whenever it is stated in this Proxy Statement that a matter is to be acted on at the Meeting, this means the Meeting held at the scheduled time or any adjourned meeting or meetings. The Funds pay the costs of the solicitation. Proxies are being solicited by the use of the mails; they may also be solicited by telephone, facsimile and personal interviews. Brokerage firms, banks and others may be requested to forward this Notice and Proxy Statement to beneficial owners of each Fund's shares so that these owners may authorize the voting of their shares. The Funds will pay these firms their out-of-pocket expenses for doing so. On the record date, each Fund had two classes of shares outstanding. All shareholders of each Fund are entitled to vote at its meeting. Each shareholder on the record date is entitled to one vote for each dollar (and a proportionate fractional vote for each fraction of a dollar) of net asset value (determined as of the record date) represented by full and fractional shares of any class held on the record date. On the record date, the net asset value per share of each Fund's outstanding classes of shares was $1.00. The meeting of each Fund is expected to act only upon matters that affect that Fund as a whole: the election of Trustees and the selection of an independent registered public accounting firm. On matters that affect each Fund as a whole, all shareholders of that Fund, including the shareholders of both classes of shares of that Fund, are entitled to vote at the meeting. Election of Trustees (Proposal No. 1) At the Meeting, eight Trustees are to be elected. Each Trustee elected will serve until his or her successor is duly elected. The nominees selected by the Trustees are named in the table below. See "Introduction" above for information as to how you can vote your shares in the election of Trustees. The following material includes information about each nominee and the officers of each Fund. All shares of the Funds listed as owned by the Trustees are Original Shares unless indicated otherwise. All of the nominees except for Mr. Humphreys, Mr. Kobayashi and Mr. O'Flaherty are presently Trustees and were elected by the shareholders in July 2008. The Nominating Committee is proposing the election of Mr. Humphreys, Mr. Kobayashi and Mr. O'Flaherty at the suggestion of the Trustees of the Funds. All nominees have consented to serve if elected.
Nominees (1)(2) Number of Portfolios in Other Directorships Positions Held Fund Held by Trustee with Trust and Complex(5) (The position held is Name, Address(3) Length of Principal Occupation(s) Overseen by a directorship unless and Date of Birth Service(4) During Past 5 Years Trustee indicated otherwise.) Interested Trustee (6) Diana P. Herrmann Vice Chair of Vice Chair and Chief Executive 12 ICI Mutual Insurance New York, NY the Board of Officer of Aquila Management Company (02/25/58) Trustees since Corporation, Founder of the 2003, President Aquila Group of Funds((7)) and since 1998 and parent of Aquila Investment Trustee since Management LLC, Administrator 2004 since 2004, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer and Vice Chair since 2004, President and Manager of the Administrator since 2003, and Chief Operating Officer of the Administrator, 2003-2008; Chair, Vice Chair, President, Executive Vice President or Senior Vice President of funds in the Aquila Group of Funds since 1986; Director of the Distributor since 1997; Governor, Investment Company Institute (a trade organization for the U.S. mutual fund industry dedicated to protecting shareholder interests and educating the public about investing) and head of its Small Funds Committee since 2004; active in charitable and volunteer organizations. Non-interested Trustees Theodore T. Mason Chair of the Executive Director, East Wind 8 None New York, NY Board of Power Partners LTD since 1994 (11/24/35) Trustees since and Louisiana Power Partners, 2004 and 1999-2003; Trustee, Premier VIT, Trustee since 2000-2009; Treasurer, Fort 1984 Schuyler Maritime Alumni Association, Inc., successor to Alumni Association of SUNY Maritime College, since 2004 (President, 2002-2003, First Vice President, 2000-2001, Second Vice President, 1998-2000) and director of the same organization since 1997; Director, STCM Management Company, Inc., 1973-2004; twice national officer of Naval Reserve Association, Commanding Officer of four naval reserve units and Captain, USNR (Ret); director, The Navy League of the United States New York Council since 2002; trustee, The Maritime Industry Museum at Fort Schuyler, 2000-2004; and Fort Schuyler Maritime Foundation, Inc., successor to the Maritime College at Fort Schuyler Foundation, Inc., since 2000. Thomas W.Courtney Trustee President, Courtney Associates, 5 None Sewickley,PA since 1984 Inc., a venture capital firm, (08/17/33)since 1988. Stanley W. Hong Trustee President, Waste Management of 4 Trustee, Pacific Capital Honolulu, HI since 1993 Hawaii, Inc. and Corporate Vice Funds(R), which includes (04/05/36) President - Hawaii Area for 12 bond and stock funds; Waste Management, Inc., First Insurance Co. of 2001-2005; Trustee, The King Hawaii, Ltd., Lanihau William Charles Lunalilo Trust Properties, Ltd., The Estate since 2001; President and Westye Group - West Chief Executive Officer, The (Hawaii), Inc., Heald Chamber of Commerce of Hawaii, Education LLC. 1996-2001; Director PBS - Hawaii Foundation since 1998; Regent, Chaminade University of Honolulu since 1991; Trustee, the Nature Conservancy of Hawaii since 1998; Trustee, Child and Family Service since 2005; Director, The East West Center Foundation since 2006; St. Louis School since 2007; and a director of other corporate and community organizations. Richard L. Humphreys Nominee President, Hawaii Receivables None Trustee, Pacific Capital Kaneohe, HI Management, LLC (a factoring Funds(R), which includes (10/06/43) company) since 2001; President, 12 bond and stock funds; Lynk Payment Systems Hawaii, LLC (credit card processing) since 2002. Bert A. Kobayashi, Jr. Nominee President and Chief Executive None Hawaiian Electric Honolulu, HI Officer, Kobayashi Group, LLC (a Company, Inc. (04/22/70) group of companies primarily engaged in real estate enterprises) since 2001; Managing Director, KG Holdings, LLC (real estate investment) since 2009; Vice President, Nikken Holdings, LLC (real estate investment) since 2003; interested in a number of other real estate companies in Hawaii. Glenn P. O'Flaherty Nominee Chief Financial Officer and 2 None Denver, CO Chief Operating Officer of (08/03/58) Lizard Investors, LLC since 2008; Co-Founder, Chief Financial Officer and Chief Compliance Officer of Three Peaks Capital Management, LLP, 2003-2005; Vice President - Investment Accounting, Global Trading and Trade Operations, Janus Capital Corporation, and Chief Financial Officer and Treasurer, Janus Funds, 1991-2002. Russell K. Okata Trustee Executive Director, Hawaii 5 Trustee, Pacific Capital Honolulu, HI since 1993 Government Employees Association Funds(R), which includes (03/22/44) AFSCME Local 152, AFL-CIO 12 bond and stock funds. 1981-2007; International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO 1981-2007; director of various civic and charitable organizations. Other Individuals Chairman Emeritus(8) Lacy B. Herrmann Founder and Founder and Chairman of the N/A N/A New York, NY Chairman Board, Aquila Management (05/12/29) Emeritus since Corporation, the sponsoring 2004, Trustee, organization and parent of the 1984-2004, and Manager or Administrator and/or Chairman of Adviser or Sub-Adviser to each the Board of fund of the Aquila Group of Trustees, Funds; Chairman of the Manager or 1984-2003 Administrator and/or Adviser or Sub-Adviser to each since 2004; Founder and Chairman Emeritus of each fund in the Aquila Group of Funds; previously Chairman and a Trustee of each fund in the Aquila Group of Funds since its establishment until 2004 or 2005; Director of the Distributor since 1981 and formerly Vice President or Secretary, 1981-1998; Director or trustee, Premier VIT, 1994 - 2009; Director or trustee of Oppenheimer Quest Value Funds Group, Oppenheimer Small Cap Value Fund, Oppenheimer Midcap Fund, 1987 - 2009, and Oppenheimer Rochester Group of Funds, 1995 - 2009; Trustee Emeritus, Brown University and the Hopkins School; active in university, school and charitable organizations. Officers Charles E. Executive Vice Executive Vice President of all N/A N/A Childs, III President funds in the Aquila Group of New York, NY since 2003 Funds and the Administrator and (04/01/57) the Administrator's parent since 2003; Executive Vice President and Chief Operating Officer of the Administrator's parent since 2008; formerly Senior Vice President, corporate development, Vice President, Assistant Vice President and Associate of the Administrator's parent since 1987; Senior Vice President, Vice President or Assistant Vice President of the Aquila Money-Market Funds, 1988-2003. Sherri Foster Vice President Senior Vice President, Hawaiian N/A N/A Lahaina, HI (07/27/50) since 1997 Tax-Free Trust since 1993 and formerly Vice President or Assistant Vice President; Vice President since 1997 and formerly Assistant Vice President of the three Aquila Money-Market Funds; Vice President, Aquila Rocky Mountain Equity Fund since 2006; Registered Representative of the Distributor since 1985. John M. Herndon Vice President Assistant Secretary of the N/A N/A New York, NY (12/17/39) since 1990 and Aquila Group of Funds since 1995 Assistant and Vice President of the three Secretary Aquila Money-Market Funds since since 1995 1990; Vice President of the Administrator or its predecessor and current parent since 1990. Robert W. Anderson Chief Chief Compliance Officer of the N/A N/A New York, NY (08/23/40) Compliance Trust and each of the other Officer since funds in the Aquila Group of 2004 and Funds, the Administrator and Assistant the Distributor since 2004, Secretary Compliance Officer of the since 2000 Administrator or its predecessor and current parent 1998-2004; Assistant Secretary of the Aquila Group of Funds since 2000. Joseph P. DiMaggio Chief Chief Financial Officer of the N/A N/A New York, NY Financial Aquila Group of Funds since 2003 (11/06/56) Officer since and Treasurer since 2000. 2003 and Treasurer since 2000 Edward M. W. Hines Secretary Shareholder of Butzel Long, a N/A N/A New York, NY since 1984 professional corporation, (12/16/39) counsel to the Trust, since 2007; Partner of Hollyer Brady Barrett & Hines LLP, its predecessor as counsel, 1989-2007; Secretary of the Aquila Group of Funds. Lori A. Vindigni Assistant Assistant Treasurer of the N/A N/A New York, NY Treasurer since Aquila Group of Funds since (11/02/66) 2000 2000; Assistant Vice President of the Administrator or its predecessor and current parent since 1998; Fund Accountant for the Aquila Group of Funds, 1995-1998.
(1) The Funds' Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request by calling 800-437-1020 (toll free) or by visiting the EDGAR Database at the SEC's internet site at www.sec.gov. (2) From time to time Bank of Hawaii may enter into normal investment management, commercial banking and lending arrangements with one or more of the Trustees of the Trust and their affiliates. The Asset Management Group of Bank of Hawaii is the Trust's investment adviser. (3) The mailing address of each Trustee and officer is c/o Pacific Capital Funds(R) of Cash Assets Trust, 380 Madison Avenue, Suite 2300, New York, NY 10017. (4) Because the Funds do not normally hold annual meetings, each Trustee holds office for an indeterminate term. The term of office of each officer is one year. (5) Includes certain Aquila-sponsored funds that are dormant and have no public shareholders. (6) Ms. Herrmann is an interested person of the Funds as an officer of each Fund, as a director, officer and shareholder of the Administrator's corporate parent, as an officer and Manager of the Administrator, and as a shareholder and director of the Distributor. Ms. Herrmann is the daughter of Lacy B. Herrmann, the Founder and Chairman Emeritus of the Funds. (7) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S. Government Securities Cash Assets Trust and Pacific Capital Tax-Free Cash Assets Trust, each of which is a money-market fund, are called the "Aquila Money-Market Funds"; Hawaiian Tax-Free Trust, Tax-Free Trust of Arizona, Tax-Free Trust of Oregon, Tax-Free Fund of Colorado, Churchill Tax-Free Fund of Kentucky, Narragansett Insured Tax-Free Income Fund and Tax-Free Fund For Utah, each of which is a tax-free municipal bond fund, are called the "Aquila Municipal Bond Funds"; Aquila Rocky Mountain Equity Fund is an equity fund; Aquila Three Peaks High Income Fund is a high income corporate bond fund; considered together, these 12 funds, which do not include the dormant funds described in footnote 5, are called the "Aquila Group of Funds." (8) The Chairman Emeritus may attend Board meetings but has no voting power.
Securities Holdings of the Nominees (as of 6/30/09) Dollar Range of Ownership in Pacific Aggregate Dollar Range of Ownership Capital Funds(R) of in Aquila Group of Funds (1) Name of Trustee Cash Assets Trust (1) Interested Trustee Diana P. Herrmann D E Non-interested Trustees Theodore T. Mason A E Thomas W. Courtney A C Stanley W. Hong A C Richard L. Humphreys A E Bert A. Kobayashi, Jr. C C Glenn P. O'Flaherty A C Russell K. Okata A E
(1) A. None B. $1-$10,000 C. $10,001-$50,000 D. $50,001-$100,000 E. over $100,000 None of the non-interested Trustees or their immediate family members holds of record or beneficially any securities of the Adviser or the Distributor. The Funds do not currently pay fees to any of any Fund's officers or to Trustees affiliated with the Administrator. For its fiscal year ended March 31, 2009 the Funds paid the following amounts respectively to the Trustees in compensation and reimbursement of expenses: Cash Fund $99,726, Tax-Free Fund $79,386 and Government Securities Fund $261,033. No other compensation or remuneration of any type, direct or contingent, was paid by any Fund to the Trustees. Each Fund is one of the twelve funds in the Aquila Group of Funds, which consist of three money-market funds, seven tax-free municipal bond funds, a high-income corporate bond fund and an equity fund. The following table lists the compensation of all nominees for Independent Trustee from the Funds or from other funds in the Aquila Group of Funds during the Funds' fiscal year. None of such nominees has any pension or retirement benefits from the Fund or any of the other funds in the Aquila Group of Funds.
Compensation Compensation Compensation from from from the Government Name the Cash Fund the Tax-Free Fund Securities Fund Theodore T. Mason $17,191 $14,652 $38,673 Thomas W. Courtney $14,087 $11,305 $37,621 Stanley W. Hong $13,469 $10,930 $34,951 Richard L. Humphreys 0 0 0 Bert A. Kobayashi, Jr. 0 0 0 Glenn P. O'Flaherty 0 0 0 Russell K. Okata $13,469 $10,930 $34,951
Compensation Number of from all funds boards on which in the Aquila the Trustee Name Group of Funds now serves* Theodore T. Mason $133,750 8 Thomas W. Courtney $104,575 5 Stanley W. Hong $76,250 4 Richard L. Humphreys 0 0 Bert A. Kobayashi, Jr. 0 0 Glenn P. O'Flaherty $34,000 2 Russell K. Okata $91,750 5
* Messrs. Hong, Humphreys and Okata are also trustees of the 12 funds in the Pacific Capital Funds(R) for which the Adviser is also investment adviser. For the same period, these funds paid Trustee Hong $40,375, Nominee Humphreys $44,434 and Trustee Okata $44,937. The Funds' Administrator is a wholly-owned subsidiary of Aquila Management Corporation ("AMC"), founder of each fund in the Aquila Group of Funds. As of July 31, 2009 these funds had aggregate assets of approximately $4.2 billion, of which approximately $1.6 billion consisted of assets of the Funds. AMC's address is the same as that of the Administrator. AMC, which was founded in 1984, is currently controlled by Mr. Lacy B. Herrmann and his wife, Mrs. Elizabeth B. Herrmann, directly and through certain trusts; however, a transaction is expected to occur in 2009 which will change the ownership of Aquila Investment Management LLC's corporate parent so that no person will own or control with power to vote more than 24.9% of the voting shares of such parent. During the fiscal year ended March 31, 2009, the Cash Fund, the Tax-Free Fund and the Government Securities Fund paid, respectively, $579,670, $263,474 and $1,129,971 in administration fees. During the fiscal year ended December 31, 2009, the Cash Fund, the Tax-Free Fund and the Government Securities Fund paid, respectively, $56,407, $39,252 and $122,520 to Butzel Long, a professional corporation, independent counsel to the Funds, for legal services. Edward M.W. Hines, Secretary of the Funds, is a shareholder of that firm. The Distributor currently handles the distribution of the shares of the funds in the Aquila Group of Funds, including the Funds. Under the Distribution Agreement, the Distributor is responsible for the payment of certain printing and distribution costs relating to prospectuses and reports as well as the costs of supplemental sales literature, advertising and other promotional activities. The shares of the Distributor are owned 24% by Diana P. Herrmann, 74% by Mr. Herrmann and other members of his immediate family and the balance by Aquila Management Corporation. Other Information on Trustees The Trustees have appointed a standing Audit Committee consisting of all of the Trustees who are "independent" and are not "interested persons" of the Funds, as that term is defined in the Investment Company Act of 1940 (the "1940 Act"). The members of the Audit Committee are Thomas W. Courtney, Stanley W. Hong, Theodore T. Mason, Russell K. Okata, Douglas Philpotts and Oswald K. Stender. The Committee (i) selects the Funds' independent registered public accounting firm; (ii) reviews the methods, scope and result of audits and the fees charged; and (iii) reviews the adequacy of the Funds' internal accounting procedures and controls. Selection of the independent registered public accounting firm is also ratified by the Board of Trustees. The Audit Committee held one meeting during the Funds' last fiscal year. The Board of Trustees has adopted a written charter for the Audit Committee. During the Funds' last fiscal year, the Board of Trustees held six meetings. Each current Trustee was present for at least 75% of the total number of Board meetings and meetings of committees of which such Trustee was a member. The Funds do not normally hold regular annual meetings. The Funds have a Nominating Committee, consisting of all of the non-"interested" Trustees. The Nominating Committee held one meeting during the last fiscal year. The committee will consider nominees recommended by the shareholders who may send recommendations to the committee in care of the Administrator at 380 Madison Avenue, New York, NY 10017. Recommendations of nominees from shareholders are not treated differently than proposals from other sources. The charter of the Nominating Committee is available on the Funds' website at www.aquilafunds.com. Shareholder communications intended for the Board of Trustees (or one or more specified Trustees) may be sent to them in care of the Administrator at the above address. Vote Required To be elected, each nominee must receive the affirmative votes of a majority of the shares of the Business Trust, considered together as a single class, present at the Meeting. Ratification or Rejection of Selection of Independent Registered Public Accounting Firm (Proposal No. 2) Tait, Weller & Baker LLP ("TWB"), which is currently serving as each Fund's independent registered public accounting firm, has been selected by the Audit Committee and ratified by the Board of Trustees, including a majority of the non-"interested" Trustees, as each Fund's independent registered public accounting firm for the fiscal year ending March 31, 2010. Such selection is submitted to the shareholders for ratification or rejection. The following table represents fees for professional audit services rendered by TWB for the audit of each Fund's annual financial statements, and fees billed for other services rendered by TWB, for the fiscal years ended March 31, 2008 and 2009. Cash Fund 2008 2009 Audit Fees $13,000 $13,600 Audit related fees 0 0 ------ ------ Audit and audit related fees 13,000 13,600 Tax fees (1) 1,500 1,600 All other fees 0 0 ------ ------ Total $14,500 $15,200 ====== ====== (1) Tax fees consisted of fees for tax consultation and tax compliance services. Tax-Free Fund 2008 2009 Audit Fees $13,000 $13,600 Audit related fees 0 0 ------ ------ Audit and audit related fees 13,000 13,600 Tax fees (1) 1,500 1,600 All other fees 0 0 ------ ------ Total $14,500 $15,200 ====== ====== (1) Tax fees consisted of fees for tax consultation and tax compliance services. Government Securities Fund 2008 2009 Audit Fees $13,000 $13,600 Audit related fees 0 0 ------ ------ Audit and audit related fees 13,000 13,600 Tax fees (1) 1,500 1,600 All other fees 0 0 ------ ------ Total $14,500 $15,200 ====== ====== (1) Tax fees consisted of fees for tax consultation and tax compliance services. TWB did not perform any services during the last fiscal year for the Funds' investment adviser or any entity controlling, controlled by or under common control with the adviser that provides services to the Funds. All audit and non-audit services performed by TWB on behalf of the Funds or non-audit services performed on behalf of affiliated entities within the investment company complex where such engagement relates directly to the operations and financial reporting of the Funds are pre-approved by the Audit Committee. Services to be considered between meetings of the Committee are pre-approved by a selected member of the Committee in accordance with applicable regulations and subject to additional procedures established by the Committee. The Audit Committee has reviewed all services performed and fees charged by TWB and has accepted TWB's representation that it is independent in recommending re-appointment of TWB for the fiscal year ending March 31, 2010. TWB has no direct or indirect financial interest in the Funds or the Adviser. It is expected that representatives of TWB will not be present at the meetings but will be available should any matter arise requiring their presence. Vote Required Approval requires the affirmative votes of a majority of the shares present. Other Information On the record date, the total number of shares outstanding for each class of shares of each Fund was as follows: Original Shares Service Shares Total Cash Fund: 267,390,445 90,329,046 357,719,491 Tax-Free Fund: 244,196,436 62,075,818 306,272,253 Government Securities Fund: 593,406,802 267,908,035 861,314,837 On the record date, the following institutional holders held 5% or more of a class of each Fund's outstanding shares. On the basis of information received from the institutional holders, the Fund's management believes that all of the shares indicated are held by them for the benefit of clients.
Name and address of the holder of record Number of shares Percent of class Cash Fund: Original Shares Bank of Hawaii P. O. Box 1930 Honolulu, HI 262,565,608 98.20% Cash Fund: Service Shares Bank of Hawaii P.O. Box 1930 Honolulu, HI 58,434,675 64.69% National Financial Services Corp. For Exclusive Benefit of its Customers 200 Liberty Street New York, NY 31,890,127 35.30% Tax-Free Fund: Original Shares Bank of Hawaii P.O. Box 1930 Honolulu, HI 242,924,335 99.48% Tax-Free Fund: Service Shares Bank of Hawaii P.O. Box 1930 Honolulu, HI 51,685,381 83.26% National Financial Services Corp. For Exclusive Benefit of its Customers 200 Liberty Street New York, NY 10,340,047 16.66% Government Securities Fund: Original Shares Bank of Hawaii P.O. Box 1930 Honolulu, HI 592,024,660 99.77% Government Securities Fund: Service Shares Bank of Hawaii P.O. Box 1930 Honolulu, HI 249,367,794 93.08%
Other Business. The Funds do not know of any other matter which will come up for action at the Meeting. If any other matter or matters properly come up for action at the Meeting, including any adjournment of the Meeting, the proxy holders will vote the shares which your proxy card, Internet or telephone vote entitles them to vote, in accordance with their judgment on such matter or matters, except as noted. That is, by signing and returning your proxy card or by voting by the Internet or telephone, you give the proxy holders discretionary authority as to any such matter or matters. PACIFIC CAPITAL CASH ASSETS TRUST PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST Notice of Special Meeting of Shareholders to Be Held on September 23, 2009 EVERY SHAREHOLDER'S VOTE IS IMPORTANT Your Proxy Vote is important! And now you can Vote your Proxy on the PHONE or the INTERNET. It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize expenses. It saves Time! Telephone and Internet voting is instantaneous - 24 hours a day. It's Easy! Just follow these simple steps: 1. Read your Proxy Statement and have it at hand. 2. Call toll-free 1-866-241-6192, or go to website: www.proxy-direct.com 3. Follow the recorded or on-screen directions. 4. Do not mail your Proxy Card when you vote by phone or Internet. Please detach at perforation before mailing. PROXY AQUILA GROUP OF FUNDS PROXY PACIFIC CAPITAL CASH ASSETS TRUST Proxy for Special Meeting of Shareholders - September 23, 2009 Proxy Solicited on Behalf of the Board of Trustees The shareholder(s) of Pacific Capital Cash Assets Trust (the "Fund") whose signature(s) appear(s) below does/do hereby appoint DIANA P. HERRMANN, CHARLES E. CHILDS, III and EDWARD M. W. HINES, or any of them, as attorneys and proxies of the undersigned, with full power of substitution, to attend the Special Meeting of Shareholders of the Fund to be held on Wednesday, September 23, 2009, at the offices of the Fund, 380 Madison Avenue, Suite 2300, New York, New York at 10:00 a.m. Eastern Daylight Time, and all adjournments thereof, and thereat to vote the shares held in the name of the undersigned on the record date for said meeting on the matters listed on the reverse side. Such shares are entitled to one vote for every dollar of net asset value represented by the share balance printed below. Management recommends a vote FOR all nominees in Proposal No. 1 and FOR Proposal No. 2. The shares represented hereby will be voted as indicated on the reverse or FOR if no choice is indicated. VOTE VIA THE TELEPHONE: 1-866-241-6192 VOTE VIA THE INTERNET: www.proxy-direct.com Note: PLEASE SIGN EXACTLY AS YOUR NAMES(S) APPEAR(S) ON THIS PROXY CARD. When signing as custodian, attorney, executor, administrator, trustee, guardian, etc., please sign your title as such. Joint owners should each sign. ------------------------------------------------ Signature ------------------------------------------------- Signature (if held jointly) ------------------------------------------------- Date_____________________________________________ THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ABOVE. EVERY SHAREHOLDER'S VOTE IS IMPORTANT Important Notice Regarding the Availability of Proxy Materials for the Aquila Group of Funds Shareholder Meeting to Be Held on September 23, 2009. The Proxy Statement for this meeting is available at: https://www.proxy-direct.com/aqu20421 PLEASE SIGN, DATE AND RETURN YOUR PROXY TODAY Please detach at perforation before mailing. Please read the proxy statement prior to voting. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS IN THIS EXAMPLE: PACIFIC CAPITAL CASH ASSETS TRUST SPECIAL MEETING 1. Election of Trustee Nominees: 01. Thomas W. Courtney 02. Diana P. Herrmann* 03. Stanley W. Hong 04. Richard L. Humphreys 05. Bert A. Kobayashi, Jr. 06. Theodore T. Mason 07. Glenn P. O'Flaherty 08. Russell K. Okata *Interested Trustee For All Withhold All For All Except -- -- -- [--] [--] [--] To withhold authority to vote for one or more (but not all) nominees, mark "For All Except" and write the nominee number(s) and/or name(s) on the line below. - -------------------- 2. Action on selection of Tait, Weller & Baker LLP as independent registered public accounting firm. (Proposal No. 2 in Proxy Statement) For Against Abstain -- -- -- [--] [--] [--] As to any other matter said proxies shall vote in accordance with their best judgment. HAS YOUR ADDRESS CHANGED DO YOU HAVE ANY COMMENTS - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ON THE REVERSE SIDE. EVERY SHAREHOLDER'S VOTE IS IMPORTANT Your Proxy Vote is important! And now you can Vote your Proxy on the PHONE or the INTERNET. It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize expenses. It saves Time! Telephone and Internet voting is instantaneous - 24 hours a day. It's Easy! Just follow these simple steps: 1. Read your Proxy Statement and have it at hand. 2. Call toll-free 1-866-241-6192, or go to website: www.proxy-direct.com 3. Follow the recorded or on-screen directions. 4. Do not mail your Proxy Card when you vote by phone or Internet. Please detach at perforation before mailing. PROXY AQUILA GROUP OF FUNDS PROXY PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST Proxy for Special Meeting of Shareholders - September 23, 2009 Proxy Solicited on Behalf of the Board of Trustees The shareholder(s) of Pacific Capital Tax-Free Cash Assets Trust (the "Fund") whose signature(s) appear(s) below does/do hereby appoint DIANA P. HERRMANN, CHARLES E. CHILDS, III and EDWARD M. W. HINES, or any of them, as attorneys and proxies of the undersigned, with full power of substitution, to attend the Special Meeting of Shareholders of the Fund to be held on Wednesday, September 23, 2009, at the offices of the Fund, 380 Madison Avenue, Suite 2300, New York, New York at 10:00 a.m. Eastern Daylight Time, and all adjournments thereof, and thereat to vote the shares held in the name of the undersigned on the record date for said meeting on the matters listed on the reverse side. Such shares are entitled to one vote for every dollar of net asset value represented by the share balance printed below. Management recommends a vote FOR all nominees in Proposal No. 1 and FOR Proposal No. 2. The shares represented hereby will be voted as indicated on the reverse or FOR if no choice is indicated. VOTE VIA THE TELEPHONE: 1-866-241-6192 VOTE VIA THE INTERNET: www.proxy-direct.com Note: PLEASE SIGN EXACTLY AS YOUR NAMES(S) APPEAR(S) ON THIS PROXY CARD. When signing as custodian, attorney, executor, administrator, trustee, guardian, etc., please sign your title as such. Joint owners should each sign. ------------------------------------------------ Signature ------------------------------------------------- Signature (if held jointly) ------------------------------------------------- Date_____________________________________________ THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ABOVE. EVERY SHAREHOLDER'S VOTE IS IMPORTANT Important Notice Regarding the Availability of Proxy Materials for the Aquila Group of Funds Shareholder Meeting to Be Held on September 23, 2009. The Proxy Statement for this meeting is available at: https://www.proxy-direct.com/aqu20421 PLEASE SIGN, DATE AND RETURN YOUR PROXY TODAY Please detach at perforation before mailing. Please read the proxy statement prior to voting. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS IN THIS EXAMPLE: PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST SPECIAL MEETING 1. Election of Trustee Nominees: 01. Thomas W. Courtney 02. Diana P. Herrmann* 03. Stanley W. Hong 04. Richard L. Humphreys 05. Bert A. Kobayashi, Jr. 06. Theodore T. Mason 07. Glenn P. O'Flaherty 08. Russell K. Okata *Interested Trustee For All Withhold All For All Except -- -- -- [--] [--] [--] To withhold authority to vote for one or more (but not all) nominees, mark "For All Except" and write the nominee number(s) and/or name(s) on the line below. - -------------------- 2. Action on selection of Tait, Weller & Baker LLP as independent registered public accounting firm. (Proposal No. 2 in Proxy Statement) For Against Abstain -- -- -- [--] [--] [--] As to any other matter said proxies shall vote in accordance with their best judgment. HAS YOUR ADDRESS CHANGED DO YOU HAVE ANY COMMENTS - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ON THE REVERSE SIDE. EVERY SHAREHOLDER'S VOTE IS IMPORTANT Your Proxy Vote is important! And now you can Vote your Proxy on the PHONE or the INTERNET. It saves Money! Telephone and Internet voting saves postage costs. Savings which can help minimize expenses. It saves Time! Telephone and Internet voting is instantaneous - 24 hours a day. It's Easy! Just follow these simple steps: 1. Read your Proxy Statement and have it at hand. 2. Call toll-free 1-866-241-6192, or go to website: www.proxy-direct.com 3. Follow the recorded or on-screen directions. 4. Do not mail your Proxy Card when you vote by phone or Internet. Please detach at perforation before mailing. PROXY AQUILA GROUP OF FUNDS PROXY PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST Proxy for Special Meeting of Shareholders - September 23, 2009 Proxy Solicited on Behalf of the Board of Trustees The shareholder(s) of Pacific Capital U.S. Government Securities Cash Assets Trust (the "Fund") whose signature(s) appear(s) below does/do hereby appoint DIANA P. HERRMANN, CHARLES E. CHILDS, III and EDWARD M. W. HINES, or any of them, as attorneys and proxies of the undersigned, with full power of substitution, to attend the Special Meeting of Shareholders of the Fund to be held on Wednesday, September 23, 2009, at the offices of the Fund, 380 Madison Avenue, Suite 2300, New York, New York at 10:00 a.m. Eastern Daylight Time, and all adjournments thereof, and thereat to vote the shares held in the name of the undersigned on the record date for said meeting on the matters listed on the reverse side. Such shares are entitled to one vote for every dollar of net asset value represented by the share balance printed below. Management recommends a vote FOR all nominees in Proposal No. 1 and FOR Proposal No. 2. The shares represented hereby will be voted as indicated on the reverse or FOR if no choice is indicated. VOTE VIA THE TELEPHONE: 1-866-241-6192 VOTE VIA THE INTERNET: www.proxy-direct.com Note: PLEASE SIGN EXACTLY AS YOUR NAMES(S) APPEAR(S) ON THIS PROXY CARD. When signing as custodian, attorney, executor, administrator, trustee, guardian, etc., please sign your title as such. Joint owners should each sign. ------------------------------------------------ Signature ------------------------------------------------- Signature (if held jointly) ------------------------------------------------- Date_____________________________________________ THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ABOVE. EVERY SHAREHOLDER'S VOTE IS IMPORTANT Important Notice Regarding the Availability of Proxy Materials for the Aquila Group of Funds Shareholder Meeting to Be Held on September 23, 2009. The Proxy Statement for this meeting is available at: https://www.proxy-direct.com/aqu20421 PLEASE SIGN, DATE AND RETURN YOUR PROXY TODAY Please detach at perforation before mailing. Please read the proxy statement prior to voting. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS IN THIS EXAMPLE: PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST SPECIAL MEETING 1. Election of Trustee Nominees: 01. Thomas W. Courtney 02. Diana P. Herrmann* 03. Stanley W. Hong 04. Richard L. Humphreys 05. Bert A. Kobayashi, Jr. 06. Theodore T. Mason 07. Glenn P. O'Flaherty 08. Russell K. Okata *Interested Trustee For All Withhold All For All Except -- -- -- [--] [--] [--] To withhold authority to vote for one or more (but not all) nominees, mark "For All Except" and write the nominee number(s) and/or name(s) on the line below. - -------------------- 2. Action on selection of Tait, Weller & Baker LLP as independent registered public accounting firm. (Proposal No. 2 in Proxy Statement) For Against Abstain -- -- -- [--] [--] [--] As to any other matter said proxies shall vote in accordance with their best judgment. HAS YOUR ADDRESS CHANGED DO YOU HAVE ANY COMMENTS - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- - ------------------------------ ------------------------------- THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED ON THE REVERSE SIDE. -----END PRIVACY-ENHANCED MESSAGE-----