-----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, NTh+YKYeE1XO6i8c0u+sjfsnqQ14HNHbuPPejt3LpmoT+0su1RQO6tForuZleKBf Ur0K4k8tciCkMUrlmOORVQ== 0000750913-04-000013.txt : 20040607 0000750913-04-000013.hdr.sgml : 20040607 20040607144305 ACCESSION NUMBER: 0000750913-04-000013 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040607 EFFECTIVENESS DATE: 20040607 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: 04851713 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 cats33104ncsr.txt CASH ASSETS TRUST 3/3/04 ANNUAL REPORT 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: 3/31/04 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. SERVING INVESTORS SINCE 1984 THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST 380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017 800-228-7496 * 212-697-6666 [Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing on a twisted rope] ANNUAL REPORT [Logo of KPMG LLP: the letters KPMG in front of four solid rectangles] REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Trustees and Shareholders of Pacific Capital Funds of Cash Assets Trust: We have audited the accompanying statements of assets and liabilities of The Pacific Capital Funds of Cash Assets Trust (the "Trust") (comprised of Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust, and Pacific Capital U.S. Government Securities Cash Assets Trust) (the "Funds"), including the statements of investments, as of March 31, 2004, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2004, by correspondence with the custodian. An audit also includes assessing the accounting principles used, and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds comprising the Trust as of March 31, 2004, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles. KPMG LLP New York, New York May 18, 2004 PACIFIC CAPITAL CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 2004
FACE AMOUNT COMMERCIAL PAPER (33.9%) VALUE - --------------- -------------------------------------------------------------------------------- ------------ AUTOMOTIVE (4.9%) -------------------------------------------------------------------------------- $ 20,000,000 Toyota Motor Credit Corp., 1.02%, 04/06/04 ..................................... $ 19,997,167 ------------ BANKS (4.9%) -------------------------------------------------------------------------------- 20,000,000 Societe Generale N.A., Inc., 1.08%, 04/14/04 ................................... 19,992,200 ------------ BROKERAGE (4.4%) -------------------------------------------------------------------------------- 18,000,000 Goldman Sachs & Co., 1.09%, 12/20/04 ........................................... 17,856,665 ------------ EDUCATION (4.9%) -------------------------------------------------------------------------------- 20,000,000 Stanford University, 1.04%, 05/19/04 ........................................... 19,972,267 ------------ FINANCE (9.9%) -------------------------------------------------------------------------------- 20,000,000 American Express Credit Corp., 1.02%, 04/08/04 ................................. 19,996,033 20,000,000 General Electric Capital Corp., 1.04%, 04/05/04 ................................ 19,997,688 ------------ 39,993,721 ------------ INSURANCE (4.9%) -------------------------------------------------------------------------------- 20,000,000 MetLife Funding, 1.02%, 04/21/04 ............................................... 19,988,667 ------------ Total Commercial Paper ...................................................... 137,800,687 ------------ CORPORATE NOTE (3.7%) -------------------------------------------------------------------------------- INSURANCE (3.7%) -------------------------------------------------------------------------------- 15,000,000 Peoples Benefit Life Insurance, Variable Rate Note, 1.26%, 12/28/04 (b) ................................................................ 15,000,000 ------------ U.S. GOVERNMENT AGENCIES (53.4%) -------------------------------------------------------------------------------- FEDERAL HOME LOAN BANK (49.7%) -------------------------------------------------------------------------------- 15,000,000 1.02%, 04/07/04 ................................................................ 14,997,463 55,000,000 0.99%, 04/12/04 ................................................................ 54,983,362 24,250,000 1.03%, 04/21/04 ................................................................ 24,236,124 15,000,000 1.00%, 04/23/04 ................................................................ 14,990,879 20,000,000 1.06%, 05/19/04 ................................................................ 19,971,733 5,000,000 1.08%, 05/26/04 ................................................................ 4,991,788 30,000,000 1.17%, 06/02/04 ................................................................ 29,939,808 25,000,000 0.99%, 06/11/04 ................................................................ 24,951,188 12,615,000 3.625%, 10/15/04 ............................................................... 12,776,928 ------------ 201,839,273 ------------ TENNESSEE VALLEY AUTHORITY (3.7%) -------------------------------------------------------------------------------- $ 15,000,000 0.93%, 04/01/04 ................................................................ $ 15,000,000 ------------ Total U.S. Government Agencies .............................................. 216,839,273 ------------ REPURCHASE AGREEMENT (8.6%) -------------------------------------------------------------------------------- 35,000,000 SG Cowen, 0.97%, 04/01/04 ...................................................... 35,000,000 (Proceeds of $35,000,943 to be received at maturity), ------------ Collateral: $36,810,000 FNMA Note, due 06/09/04; Collateral Market Value $36,720,000
SHARES INVESTMENT COMPANY (0.5%) - --------------- -------------------------------------------------------------------------------- 1,782,849 One Group Government Money Market Fund, Institutional Shares ........................................................ 1,782,849 ------------ Total Investments (Amortized Cost $406,422,809) (a) ....... 100.1% 406,422,809 Other assets less liabilities ............................. (0.1) (211,529) ----- ------------ Net assets ................................................ 100.0% $406,211,280 ===== ============
(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 March 31, 2004, and the maturity date reflects the next rate change date. PORTFOLIO ABBREVIATIONS: FNMA - Federal National Mortgage Association See accompanying notes to financial statements. PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 2004
RATING FACE MOODY'S/ AMOUNT MUNICIPAL BONDS (97.9%) S&P VALUE - ------------- ---------------------------------------------------------------------- ----------- ------------ COLORADO (4.3%) ---------------------------------------------------------------------- $ 6,400,000 Colorado Housing & Financial Authority Revenue Bonds, Class I, Series A-1, 1.03%, 10/01/30, Weekly Reset VRDN*, SPA: FHLB ..................................... VMIG1/A-1+ $ 6,400,000 ------------ HAWAII (32.8%) ---------------------------------------------------------------------- 6,800,000 Department of Budget and Finance of the State of Hawaii Special Purpose Revenue Bonds (The Queen's Health System), Series A, 1.08%, 07/01/26, Weekly Reset VRDN*, SPA: Bank of Nova Scotia ...................... VMIG1/A-1 6,800,000 4,965,000 Hawaii State, Housing Finance & Development Corp. Revenue Bonds, (Affordable Rental Housing Program), Series A, 1.15%, 07/01/27, Weekly Reset VRDN*, LOC: Banque Nationale de Paris ....................... VMIG1/NR 4,965,000 Honolulu City & County, HI General Obligation Bonds, Series A, Weekly Reset VRDN*, LOC: Landesbank Hessen-Thuringen Girozentrale 800,000 1.00%, 01/01/05 ................................................... VMIG1/A-1+ 800,000 3,000,000 1.00%, 01/01/06 ................................................... VMIG1/A-1+ 3,000,000 5,800,000 1.00%, 01/01/07 ................................................... VMIG1/A-1+ 5,800,000 2,150,000 1.00%, 01/01/10 ................................................... VMIG1/A-1+ 2,150,000 5,900,000 1.00%, 01/01/12 ................................................... VMIG1/A-1+ 5,900,000 1,995,000 1.00%, 01/01/13 ................................................... VMIG1/A-1+ 1,995,000 2,020,000 1.00%, 01/01/15 ................................................... VMIG1/A-1+ 2,020,000 5,645,000 1.00%, 01/01/17 ................................................... VMIG1/A-1+ 5,645,000 1,645,000 1.00%, 01/01/19 ................................................... VMIG1/A-1+ 1,645,000 1,400,000 1.00%, 01/01/20 ................................................... VMIG1/A-1+ 1,400,000 1,600,000 Honolulu City & County, HI General Obligation Bonds, Series B, 1.00%, 01/01/05, Weekly Reset VRDN*, LOC: Landesbank Hessen-Thuringen Girozentrale ..................... VMIG1/A-1+ 1,600,000 5,000,000 Honolulu City & County, HI Multifamily Housing Revenue Bonds (Moanalua Hillside Apartments), AMT, 1.07%, 09/15/32, Weekly Reset VRDN*, LOC: FNMA ......................................................... NR/A-1+ 5,000,000 ------------ 48,720,000 ------------ IDAHO (2.4%) ---------------------------------------------------------------------- $ 3,600,000 Idaho Health Facilities Authority Revenue Bonds (St. Lukes Regional Medical Center Project), 1.12%, 05/01/22, Daily Reset VRDN*, LOC: Harris Trust & Savings Bank .................................. VMIG1/NR $ 3,600,000 ------------ ILLINOIS (8.5%) ---------------------------------------------------------------------- 3,000,000 Chicago, IL General Obligation Bonds, Series B, 1.04%, 01/01/37, Weekly Reset VRDN*, FGIC Insured ........................ VMIG1/A-1+ 3,000,000 5,000,000 Chicago, IL Metropolitan Water Reclamation District-Greater Chicago General Obligation Bonds, Series A, 1.00%, 12/01/31, Weekly Reset VRDN*, SPA: Bank of America ....................................... VMIG1/A-1+ 5,000,000 4,600,000 Illinois Development Finance Authority Revenue Bonds (YMCA of Metro Chicago Project), 1.12%, 06/01/29, Daily Reset VRDN*, LOC: Harris Trust & Savings Bank .............................................. NR/A-1+ 4,600,000 ------------ 12,600,000 ------------ INDIANA (2.6%) ---------------------------------------------------------------------- 3,780,000 Indianapolis, IN Economic Development Revenue Bonds (Jewish Federation Campus), 1.03%, 04/01/05, Weekly Reset VRDN*, LOC: Fifth Third Bank ......................... VMIG1/NR 3,780,000 ------------ LOUISIANA (0.7%) ---------------------------------------------------------------------- 1,000,000 St. Charles Parish, LA Pollution Control Revenue Bonds (Shell Oil Co. Project), Series A-AMT, 1.15%, 10/01/22, Daily Reset VRDN* ................................ VMIG1/A-1+ 1,000,000 ------------ MASSACHUSETTS (0.7%) ---------------------------------------------------------------------- 1,100,000 Massachusetts State, Health & Educational Facilities Authority Revenue Bonds (Wellesley College), Series G, 1.08%, 07/01/39, Daily Reset VRDN*, SPA: JP Morgan Chase Bank ......................................... VMIG1/A-1+ 1,100,000 ------------ MICHIGAN (4.6%) ---------------------------------------------------------------------- 5,410,000 Eastern Michigan University, MI University Revenue Bonds, 1.12%, 06/01/27, Daily Reset VRDN*, FGIC Insured ...................................................... NR/A-1+ 5,410,000 $ 1,400,000 Northern Michigan University Revenue Bonds, 1.12%, 06/01/31, Daily Reset VRDN*, FGIC Insured ......................... VMIG1/A-1+ $ 1,400,000 ------------ 6,810,000 ------------ MINNESOTA (3.9%) ---------------------------------------------------------------------- 3,775,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series A, 1.12%, 06/01/20, Daily Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 3,775,000 200,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series B, 1.12%, 06/01/13, Daily Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 200,000 1,790,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co. Project), Series D, 1.12%, 12/01/07, Daily Reset VRDN*, LOC: ABN Amro Bank N.V ............................... NR/A-1+ 1,790,000 ------------ 5,765,000 ------------ MISSOURI (13.5%) ---------------------------------------------------------------------- 5,935,000 Kansas City, MO Industrial Development Authority Revenue Bonds, (Ewing Marion Kaufman Foundation), 1.12%, 04/01/27, Daily Reset VRDN* ................... NR/A-1+ 5,935,000 600,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (St. Louis University), Series A, 1.17%, 10/01/09, Daily Reset VRDN*, SPA: Bank of America N.A .......................................... VMIG1/A-1+ 600,000 5,355,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (St. Louis University), Series B, 1.17%, 10/01/24, Daily Reset VRDN*, SPA: Bank of America N.A .......................................... VMIG1/A-1+ 5,355,000 2,000,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (Washington University), Series C, 1.10%, 9/01/30, Daily Reset VRDN*, SPA: JP Morgan Chase Bank .............................................. VMIG1/A-1+ 2,000,000 1,200,000 Missouri State, Health & Educational Facilities Authority Revenue Bonds (Washington University), Series D, 1.10%, 9/01/30, Daily Reset VRDN*, SPA: JP Morgan Chase Bank ......................................... VMIG1/A-1+ 1,200,000 $ 5,000,000 University of Missouri, Curators of the University of Missouri System Facilities Revenue Bonds, Series A, 1.12%, 11/01/32, Daily Reset VRDN* ............................. VMIG1/A-1+ $ 5,000,000 ------------ 20,090,000 ------------ MONTANA (3.8%) ---------------------------------------------------------------------- 5,620,000 Montana State, Health Facilities Authority Revenue Bonds, Series A, 1.02%, 12/01/15, Weekly Reset VRDN*, FGIC Insured, SPA: Wells Fargo ............................. VMIG1/A-1+ 5,620,000 ------------ NEW YORK (4.3%) ---------------------------------------------------------------------- 6,430,000 New York, NY City Transitional Finance Authority Revenue Bonds, Series 3, 1.12%, 11/01/22, Daily Reset VRDN*, SPA: Bank of New York ................................ VMIG1/A-1+ 6,430,000 ------------ NORTH CAROLINA (1.8%) ---------------------------------------------------------------------- 1,150,000 Durham, NC General Obligation Bonds (Public Improvement Project), Weekly Reset VRDN*, SPA: Wachovia Bank of North Carolina 1.06%, 02/01/09 ................... VMIG1/A-1 1,150,000 1,475,000 1.06%, 02/01/13 ................................................... 1,475,000 ------------ 2,625,000 ------------ OHIO (2.6%) ---------------------------------------------------------------------- 3,880,000 Ohio Housing Finance Agency Mortgage Revenue Bonds (Residential Mortgage), Series E-AMT, 1.07%, 09/01/34, Weekly Reset VRDN*, SPA: FHLB ........................... VMIG1/NR 3,880,000 ------------ PENNSYLVANIA (3.5%) ---------------------------------------------------------------------- 5,200,000 Philadelphia, PA Hospitals & Higher Education Facilities Authority Revenue Bonds (Children's Hospital Project), Series A, 1.12%, 02/15/14, Daily Reset VRDN*, SPA: JP Morgan Chase Bank ...................... VMIG1/A-1+ 5,200,000 ------------ TEXAS (1.5%) ---------------------------------------------------------------------- 2,200,000 West Side Calhoun County, TX Sewer & Solid Waste Disposal Revenue Bonds (BP Chemicals, Inc. Project), AMT, 1.15%, 04/01/31, Daily Reset VRDN* ........................... P-1/A-1+ 2,200,000 ------------ UTAH (2.3%) ---------------------------------------------------------------------- $ 3,450,000 University of Utah, Auxiliary & Campus Facilities Revenue Bonds, Series A, 1.03%, 04/01/27, Weekly Reset VRDN*, SPA: Bank of Nova Scotia ............................. VMIG1/A-1 $ 3,450,000 ------------ VIRGINIA (4.1%) ---------------------------------------------------------------------- 6,000,000 University of Virginia Revenue Bonds, Series A, 0.98%, 06/01/34, Weekly Reset VRDN* ............................... VMIG1/A-1+ 6,000,000 ------------ Total Municipal Bonds ........................................... 145,270,000 ------------
SHARES INVESTMENT COMPANY (2.1%) - ------------- ---------------------------------------------------------------------- 3,150,000 Dreyfus Tax Exempt Cash Management Fund, Institutional Shares .............................................. 3,150,000 ------------ Total Investments (Amortized Cost $148,420,000) (a) ........................................... 100.0% 148,420,000 Other assets less liabilities .................................. 0.0 25,756 ------ ------------ Net Assets ..................................................... 100.0% $148,445,756 ====== ============
* Variable rate demand notes (VRDNs) 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 SPA - Standby Bond Purchase Agreement VRDN - Variable Rate Demand Note See accompanying notes to financial statements. PACIFIC CAPITAL U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST STATEMENT OF INVESTMENTS MARCH 31, 2004
FACE AMOUNT U.S. GOVERNMENT AGENCIES (99.2%) VALUE - --------------- ------------------------------------------------------ ------------ FEDERAL FARM CREDIT BANK (12.7%) ------------------------------------------------------ $ 95,000,000 0.97%, 04/01/04 ...................................... $ 95,000,000 12,000,000 1.02%, 10/12/04 ...................................... 11,934,040 ------------ 106,934,040 ------------ FEDERAL HOME LOAN BANK (84.7%) ------------------------------------------------------ 60,000,000 1.02%, 04/07/04 ...................................... 59,989,850 85,000,000 0.99%, 04/12/04 ...................................... 84,974,287 70,000,000 0.97%, 04/14/04 ...................................... 69,975,354 50,000,000 0.98%, 04/16/04 ...................................... 49,979,583 25,000,000 1.03%, 04/21/04 ...................................... 24,985,694 50,000,000 1.00%, 04/23/04 ...................................... 49,969,597 40,000,000 0.98%, 05/05/04 ...................................... 39,962,978 50,000,000 0.98%, 05/12/04 ...................................... 49,944,194 57,000,000 1.00%, 05/19/04 ...................................... 56,923,707 57,271,000 0.98%, 05/21/04 ...................................... 57,193,048 56,328,000 1.04%, 05/26/04 ...................................... 56,238,392 50,000,000 0.98%, 05/28/04 ...................................... 49,922,417 35,200,000 1.17%, 06/02/04 ...................................... 35,129,375 25,000,000 0.99%, 06/11/04 ...................................... 24,951,188 ------------ 710,139,664 ------------ TENNESSEE VALLEY AUTHORITY (1.8%) ------------------------------------------------------ 15,000,000 0.93%, 04/01/04 ...................................... 15,000,000 ------------ Total U.S. Government Agencies .................... 832,073,704 ------------
SHARES INVESTMENT COMPANY (0.9%) - --------------- ------------------------------------------------------ 7,128,747 One Group Government Money Market Fund, Institutional Shares .............................. 7,128,747 ------------ Total Investments (Amortized Cost $839,202,451) (a) ... 100.1% 839,202,451 Other assets less liabilities ......... (0.1) (659,859) ------ ------------ Net Assets ............................ 100.0% $838,542,592 ====== ============
(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 MARCH 31, 2004
CASH TAX-FREE GOVERNMENT FUND FUND FUND ------------- ------------- ------------- ASSETS: Investments at value and amortized cost (note 2) ................. $ 406,422,809 $ 148,420,000 $ 839,202,451 Cash ............................................................. - 3,061 -- Interest receivable .............................................. 229,186 161,382 8,161 Other assets ..................................................... 3,999 1,541 7,091 ------------- ------------- ------------- Total Assets .................................................. 406,655,994 148,585,984 839,217,703 ------------- ------------- ------------- LIABILITIES: Dividends payable ................................................ 283,458 87,360 486,125 Adviser and Administrator fees payable ........................... 41,435 3,645 23,661 Distribution fees payable ........................................ 26,712 10,698 94,695 Accrued expenses ................................................. 93,109 38,525 70,630 ------------- ------------- ------------- Total Liabilities ............................................. 444,714 140,228 675,111 ------------- ------------- ------------- NET ASSETS ....................................................... $ 406,211,280 $ 148,445,756 $ 838,542,592 ============= ============= ============= NET ASSETS CONSIST OF: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ...................................... $ 4,061,981 $ 1,484,436 $ 8,384,742 Additional paid-in capital ....................................... 402,135,861 147,048,680 830,089,587 Undistributed (overdistributed) net investment income ............ 13,438 (87,360) 68,263 ------------- ------------- ------------- $ 406,211,280 $ 148,445,756 $ 838,542,592 ============= ============= ============= SHARES OF BENEFICIAL INTEREST: Original Shares Class: Net Assets .................................................... $ 287,029,261 $ 98,783,759 $ 263,464,681 ============= ============= ============= Shares outstanding ............................................ 287,248,053 98,782,301 263,435,345 ============= ============= ============= Net asset value per share ..................................... $ 1.00 $ 1.00 $ 1.00 ============= ============= ============= Service Shares Class: Net Assets .................................................... $ 119,182,019 $ 49,661,997 $ 575,077,911 ============= ============= ============= Shares outstanding ............................................ 118,950,017 49,661,274 575,038,846 ============= ============= ============= Net asset value per share ..................................... $ 1.00 $ 1.00 $ 1.00 ============= ============= =============
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST STATEMENTS OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2004
CASH TAX-FREE GOVERNMENT FUND FUND FUND ----------- ----------- ----------- INVESTMENT INCOME: Interest income ............................................... $ 5,071,964 $ 1,601,357 $ 8,186,966 ----------- ----------- ----------- EXPENSES: Investment Adviser fees (note 3) .............................. 1,637,319 464,121 2,490,502 Administrator fees (note 3) ................................... 644,444 167,539 571,912 Distribution fees (note 3) .................................... 303,195 130,457 1,190,454 Trustees' fees and expenses ................................... 107,971 49,626 124,942 Legal fees .................................................... 55,400 22,874 84,685 Shareholders' reports ......................................... 41,935 11,106 38,236 Insurance ..................................................... 41,747 14,966 69,219 Fund accounting fees .......................................... 33,020 33,742 32,889 Auditing and tax fees ......................................... 18,850 19,475 17,850 Transfer and shareholder servicing agent fees ................. 11,572 12,338 11,217 Custodian fees ................................................ 5,727 8,900 5,380 Registration fees and dues .................................... 4,889 4,609 16,154 Miscellaneous ................................................. 12,093 6,827 27,797 ----------- ----------- ----------- Total expenses ................................................ 2,918,162 946,580 4,681,237 Advisory fees contractual reduction (note 3) .................. (1,184,109) (401,358) (2,138,917) Administrative fees contractual reduction (note 3) ............ (466,062) (144,883) (491,175) Expenses paid indirectly (note 5) ............................. -- -- (4,403) ----------- ----------- ----------- Net expenses .................................................. 1,267,991 400,339 2,046,742 ----------- ----------- ----------- Net investment income ............................................ 3,803,973 1,201,018 6,140,224 Net realized gain (loss) from securities transactions ............ 1,319 38 421 ----------- ----------- ----------- Net change in net assets resulting from operations ............... $ 3,805,292 $ 1,201,056 $ 6,140,645 =========== =========== ===========
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 ---------------------------------- ---------------------------------- Year Ended Year Ended Year Ended Year Ended March 31, 2004 March 31, 2003 March 31, 2004 March 31, 2003 --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ................. $ 3,803,973 $ 6,102,262 $ 1,201,018 $ 1,783,725 Net realized gain (loss) from securities transactions ....... 1,319 5,968 38 12 --------------- --------------- --------------- --------------- Change in net assets resulting from operations .......... 3,805,292 6,108,230 1,201,056 1,783,737 --------------- --------------- --------------- --------------- DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares .................... (3,014,705) (4,649,971) (891,803) (1,316,278) Service Shares ..................... (789,268) (1,452,291) (309,215) (466,859) --------------- --------------- --------------- --------------- Total dividends to shareholders from net investment income ......... (3,803,973) (6,102,262) (1,201,018) (1,783,137) --------------- --------------- --------------- --------------- CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares .................... 710,757,056 880,694,410 127,920,769 163,052,761 Service Shares ..................... 356,252,712 252,007,742 63,986,710 56,481,358 --------------- --------------- --------------- --------------- 1,067,009,768 1,132,702,152 191,907,479 219,534,119 --------------- --------------- --------------- --------------- Reinvested dividends: Original Shares .................... 61,263 86,494 69,733 170,364 Service Shares ..................... 802,624 1,514,672 320,397 468,256 --------------- --------------- --------------- --------------- 863,887 1,601,166 390,130 638,620 --------------- --------------- --------------- --------------- Cost of shares redeemed: Original Shares .................... (784,672,808) (873,207,779) (159,333,530) (133,496,270) Service Shares ..................... (361,048,456) (275,974,181) (70,987,619) (52,944,249) --------------- --------------- --------------- --------------- (1,145,721,264) (1,149,181,960) (230,321,149) (186,440,519) --------------- --------------- --------------- --------------- Change in net assets from capital share transactions .... (77,847,609) (14,878,642) (38,023,540) 33,732,220 --------------- --------------- --------------- --------------- Total change in net assets ............ (77,846,290) (14,872,674) (38,023,502) 33,732,820 NET ASSETS: Beginning of period ................. 484,057,570 498,930,244 186,469,258 152,736,438 --------------- --------------- --------------- --------------- End of period ....................... $ 406,211,280 $ 484,057,570 $ 148,445,756 $ 186,469,258 =============== =============== =============== =============== GOVERNMENT FUND ---------------------------------- Year Ended Year Ended March 31, 2004 March 31, 2003 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income ................... $ 6,140,224 $ 8,345,327 Net realized gain (loss) from securities transactions ......... 421 218 --------------- --------------- Change in net assets resulting from operations ............ 6,140,645 8,345,545 --------------- --------------- DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares ...................... (2,775,205) (3,725,589) Service Shares ....................... (3,365,022) (4,619,738) --------------- --------------- Total dividends to shareholders from net investment income ........... (6,140,227) (8,345,327) --------------- --------------- CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares ...................... 1,035,054,356 759,927,968 Service Shares ....................... 1,762,487,853 1,404,544,075 --------------- --------------- 2,797,542,209 2,164,472,043 --------------- --------------- Reinvested dividends: Original Shares ...................... 46,240 52,314 Service Shares ....................... 3,380,896 4,740,217 --------------- --------------- 3,427,136 4,792,531 --------------- --------------- Cost of shares redeemed: Original Shares ...................... (1,041,701,880) (795,938,638) Service Shares ....................... (1,638,518,517) (1,418,737,480) --------------- --------------- (2,680,220,397) (2,214,676,118) --------------- --------------- Change in net assets from capital share transactions ...... 120,748,948 (45,411,544) --------------- --------------- Total change in net assets .............. 120,749,366 (45,411,326) NET ASSETS: Beginning of period .................. 717,793,226 763,204,552 --------------- --------------- End of period ........................ $ 838,542,592 $ 717,793,226 =============== ===============
See accompanying notes to financial statements. THE PACIFIC CAPITAL FUNDS OF CASH ASSETS TRUST NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Cash Assets Trust (the "Trust") was organized on May 7, 1984 as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end investment company. The Trust consists of the following three investment portfolios (referred to individually as a "Fund" and collectively as the "Funds"): Pacific Capital Cash Assets Trust ("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. Investment income, realized and unrealized gains and losses, if any, and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class. Class specific expenses are borne by the affected class. Service fee payments under Rule 12b-1 are borne solely by and charged to the Service Shares based on net assets of that class. d) FEDERAL INCOME TAXES: It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. Each Fund intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. e) REPURCHASE AGREEMENTS: It is each Fund's policy to monitor closely the creditworthiness of all firms with which it enters into repurchase agreements, and to take possession of, or otherwise perfect its security interest in, securities purchased under agreements to resell. The securities purchased under agreements to resell are marked to market every business day 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. f) 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. Effective January 1, 2004, Aquila Management Corporation, assigned its Administration Agreements to its wholly-owned subsidiary, Aquila Investment Management LLC (the "Administrator"), which will continue the administration of the Funds. The transfer was made for reasons of corporate and tax planning and will have no effect on the management of the Funds or the fees being paid. 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: Pacific Capital Cash Assets Trust - On net assets up to $325 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.33% and 0.17%, respectively, and on net assets above that amount at the annual rate of 0.43% and 0.07%, respectively. Pacific Capital Tax-Free Cash Assets Trust - On net assets up to $95 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.27% and 0.13%, respectively, and on net assets above that amount at the annual rate of 0.33% and 0.07%, respectively. Pacific Capital U.S. Government Securities Cash Assets Trust - On net assets up to $60 million, the fee is paid to the Adviser and the Administrator at the annual rate of 0.27% and 0.13%, respectively, and on net assets above that amount at the annual rate of 0.33% and 0.07%, respectively. 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. For the period April 1, 2002 through March 31, 2004, advisory and administrative fees have been reduced by a contractual reduction of fees (see ii above) due to a low interest rate environment. 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 year ended March 31, 2004: Pacific Capital Cash Assets Trust incurred advisory and administration fees of $1,637,319 and $644,444; due to the expense limitation, such fees were reduced by $1,184,109 and $466,062, respectively. Pacific Capital Tax-Free Cash Assets Trust incurred advisory and administration fees of $464,121 and $167,539; due to the expense limitation, such fees were reduced by $401,358 and $144,883, respectively. Pacific Capital U.S. Government Securities Cash Assets Trust incurred advisory and administration fees of $2,490,502 and $571,912; due to the expense limitation, such fees were reduced by $2,138,917 and $491,175, 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 year ended March 31, 2004, the following amounts were accrued for legal fees: Cash Fund $55,400; Tax-Free Fund $22,874; Government Fund $84,685. Of these amounts, $53,160, $21,834 and $80,109, respectively, were allocable to Hollyer Brady Smith &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 Smith & 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 Pacific Capital Tax-Free Cash Assets Trust has a significant portion of its investments in obligations of issuers within Hawaii, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Hawaii and whatever effects these may have upon Hawaii issuers' ability to meet their obligations. 7. 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. FEDERAL TAX STATUS OF DISTRIBUTIONS (UNAUDITED) This information is presented in order to comply with a requirement of the Internal Revenue Code of 1986, as amended. NO CURRENT ACTION ON THE PART OF SHAREHOLDERS IS REQUIRED. For the fiscal year ended March 31, 2004, $1,201,018 of dividends paid by the Tax-Free Fund were exempt-interest dividends. For the Cash Fund and the Government Fund all of the dividends paid were ordinary dividend income. Prior to January 31, 2004, shareholders were mailed IRS Form 1099-DIV which contained information on the status of distributions paid for the 2003 CALENDAR YEAR. PACIFIC CAPITAL CASH ASSETS TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES ------------------------------------------------------ YEAR ENDED MARCH 31, ------------------------------------------------------ 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period ......... $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ..................... 0.01 0.01 0.03 0.06 0.05 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ...... (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 ====== ====== ====== ====== ====== Total return ................................. 0.90% 1.35% 2.52% 5.90% 4.89% Ratios/supplemental data Net assets, end of period (in millions) ... $287 $361 $353 $364 $513 Ratio of expenses to average net assets ... 0.21% 0.36% 0.58% 0.57% 0.56% Ratio of net investment income to average net assets ..................... 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% 0.58% - - - Ratio of net investment income to average net assets ..................... 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 ... 0.21% 0.36% 0.57% 0.57% 0.56%
SERVICE SHARES ----------------------------------------------------- YEAR ENDED MARCH 31, ----------------------------------------------------- 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period ......... $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ..................... 0.01 0.01 0.02 0.05 0.05 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income ...... (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 ====== ====== ====== ====== ====== Total return ................................. 0.65% 1.09% 2.27% 5.63% 4.63% Ratios/supplemental data Net assets, end of period (in millions) ... $119 $123 $146 $221 $174 Ratio of expenses to average net assets ... 0.46% 0.61% 0.83% 0.82% 0.81% Ratio of net investment income to average net assets ..................... 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% 0.83% - - - Ratio of net investment income to average net assets ..................... 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 ... 0.46% 0.61% 0.82% 0.82% 0.81%
See accompanying notes to financial statements. PACIFIC CAPITAL TAX-FREE CASH ASSETS TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES -------------------------------------------------- YEAR ENDED MARCH 31, -------------------------------------------------- 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ......................... 0.01 0.01 0.02 0.04 0.03 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income .......... (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 ====== ====== ====== ====== ====== Total return 0.84% 1.15% 2.00% 3.58% 2.95% Ratios/supplemental data Net assets, end of period (in millions) ....... $99 $130 $100 $101 $100 Ratio of expenses to average net assets ....... 0.17% 0.28% 0.51% 0.53% 0.52% Ratio of net investment income to average net assets ......................... 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 ....... 0.52% 0.50% - - - Ratio of net investment income to average net assets ......................... 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 ....... 0.17% 0.27% 0.51% 0.53% 0.52%
SERVICE SHARES -------------------------------------------------- YEAR ENDED MARCH 31, -------------------------------------------------- 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ......................... 0.01 0.01 0.02 0.03 0.03 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income .......... (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 ====== ====== ====== ====== ====== Total return 0.59% 0.90% 1.75% 3.32% 2.70% Ratios/supplemental data Net assets, end of period (in millions) ....... $50 $56 $52 $54 $51 Ratio of expenses to average net assets ....... 0.42% 0.53% 0.77% 0.78% 0.77% Ratio of net investment income to average net assets ......................... 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 ....... 0.77% 0.76% - - - Ratio of net investment income to average net assets ......................... 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 ....... 0.42% 0.52% 0.77% 0.78% 0.77%
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 -------------------------------------------------- YEAR ENDED MARCH 31, -------------------------------------------------- 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ......................... 0.01 0.01 0.03 0.06 0.05 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income .......... (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 ====== ====== ====== ====== ====== Total return ...................................... 0.96% 1.34% 2.73% 5.88% 4.83% Ratios/supplemental data Net assets, end of period (in millions) ....... $263 $270 $306 $151 $166 Ratio of expenses to average net assets ....... 0.11% 0.25% 0.45% 0.47% 0.49% Ratio of net investment income to average net assets ......................... 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 ....... 0.46% 0.46% - - - Ratio of net investment income to average net assets ......................... 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 ....... 0.11% 0.24% 0.45% 0.47% 0.49%
SERVICE SHARES -------------------------------------------------- YEAR ENDED MARCH 31, -------------------------------------------------- 2004 2003 2002 2001 2000 ------ ------ ------ ------ ------ Net asset value, beginning of period .............. $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ......................... 0.01 0.01 0.02 0.05 0.04 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income .......... (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 ====== ====== ====== ====== ====== Total return ...................................... 0.71% 1.09% 2.48% 5.62% 4.56% Ratios/supplemental data Net assets, end of period (in millions) ....... $575 $448 $457 $332 $293 Ratio of expenses to average net assets ....... 0.36% 0.49% 0.70% 0.72% 0.74% Ratio of net investment income to average net assets ......................... 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 ....... 0.71% 0.71% - - - Ratio of net investment income to average net assets ......................... 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 ....... 0.36% 0.49% 0.70% 0.72% 0.74%
See accompanying notes to financial statements. ADDITIONAL INFORMATION (UNAUDITED) TRUSTEES AND OFFICERS(1)
NUMBER OF POSITIONS PORTFOLIOS OTHER DIRECTORSHIPS HELD WITH IN FUND HELD BY TRUSTEE NAME, TRUST AND PRINCIPAL COMPLEX (THE POSITION HELD IS ADDRESS(2) LENGTH OF OCCUPATION(S) OVERSEEN A DIRECTORSHIP UNLESS AND DATE OF BIRTH SERVICE(3) DURING PAST 5 YEARS BY TRUSTEE INDICATED OTHERWISE.) - ----------------- ---------- ------------------- ---------- --------------------- INTERESTED TRUSTEES(4) Lacy B. Herrmann Founder, Founder, Chief Exective Officer and 11 Director or trustee, New York, NY Trustee since Chairman of the Board, Aquila Management Pimco Advisors VIT, (05/12/29) 1984, and Corporation, the sponsoring organization Oppenheimer Quest Value Chairman of and parent of the Manager or Funds Group, the Board of Administrator and/or Adviser or Oppenheimer Small Cap Trustees, Sub-Adviser to each fund of the Value Fund, Oppenheimer 1984-2003 Aquila(sm) Group of Funds,(5) Chairman Midcap Fund, and and Chief Executive Officer of the Oppenheimer Rochester Manager or Administrator and/or Adviser Group of Funds. or Sub-Adviser to each since 2004, and Founder, Chairman of the Board of Trustees, Trustee and (currently or until 1998) President of each since its establishment, beginning in 1984, except Chairman of the Board of Trustees of Hawaiian Tax-Free Trust, Pacific Capital Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Pacific Capital U.S. Government Securities Cash Assets Trust through 2003; Director of the Distributor since 1981 and formerly Vice President or Secretary, 1981-1998; Trustee Emeritus, Brown University and active in university, school and charitable organizations. NON-INTERESTED TRUSTEES Theodore T. Mason Chairman since Executive Director, East Wind Power 5 Trustee, Pimco Advisors New York, NY 2004 and Partners LTD since 1994 and Louisiana VIT. (11/24/35) Trustee since Power Partners, 1999-2003; Treasurer, 1984 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., since 1973; 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 and the Maritime College at Fort Schuyler Foundation, Inc. since 2000. Thomas W. Courtney Trustee since President, Courtney Associates, Inc., a 5 Chairman of the Board Sewickley, PA 1984 venture capital firm, since 1988. of Oppenheimer Quest (08/17/33) Value Funds Group, Oppenheimer Small Cap Value Fund, Oppenheimer Midcap Fund, and Oppenheimer Rochester Group of Funds; Trustee of Pimco Advisors VIT. Richard W. Gushman, II Trustee since President and Chief Executive Officer, 4 Trustee, Pacific Honolulu, HI 1993 OKOA, Inc., a diversified Hawaii-based Capital Funds, which (02/28/46) real estate organization with activities includes 11 bond and in the western U.S. and the Pacific stock funds; director, Basin, since 1972; Managing Partner of Outrigger Hotels since Summit Financial Resources, a Salt Lake 2000; director, Servco City, Utah-based financial services Pacific, Inc. and company; trustee, the Estate of James Oceanic Time-Warner Campbell since 2000 and Chairman of the since 1998; director, Board of Trustees since 2002; trustee, American Savings Bank University of Hawaii Foundation and since 2002. Hawaii Pacific University since 1997; director, United Way of America since 1998; board member of the Boys & Girls Club of Honolulu, Aloha United Way, and other charitable and civic organizations. Stanley W. Hong Trustee since President, Waste Management of Hawaii, 4 Trustee, Pacific Honolulu, HI 1993 Inc. since 2002; Corporate Vice Capital Funds, which (04/05/36) President, Hawaii Area, Waste Management, includes 11 bond and Inc. since 2002; Trustee, The King stock funds; director, William Charles Lunalilo Trust Estate First Insurance Co. of since 2001; President and Chief Executive Hawaii, Ltd., Lanilou Officer, The Chamber of Commerce of Properties, Ltd. Hawaii, 1996-2001; director, Hawaii Public Television Foundation since 1998; Regent, Chaminade University of Honolulu; Chair - trustees, Heald College; trustee, the Nature Conservancy of Hawaii; and director of other corporate and community organizations. Russell K. Okata Trustee since Executive Director, Hawaii Government 4 Trustee, Pacific Honolulu, HI 1993 Employees Association AFSCME Local 152, Capital Funds, which (03/22/44) AFL-CIO since 1981; International Vice includes 11 bond and President, American Federation of State, stock funds; Chairman, County and Municipal Employees, AFL-CIO Royal State Group. since 1981; director of various civic and charitable organizations. Douglas Philpotts Trustee since Retired; formerly director, Chairman of 4 Trustee, Pacific Honolulu, HI 1992 the Board and President of Hawaiian Trust Capital Funds, which (11/21/31) Company, Limited; present or former includes 11 bond and director of various Hawaii-based civic stock funds. and charitable organizations. Oswald K. Stender Trustee since Director, Hawaiian Electric Industries, 4 Trustee, Pacific Honolulu, HI 1993 Inc., a public utility holding company, Capital Funds, which (10/08/31) since 1993; trustee, the Bernice Pauahi includes 11 bond and Bishop Estate 1990-1999; trustee, Office stock funds; director, of Hawaiian Affairs and a member or Grace Pacific trustee of several community Corporation, an asphalt organizations. paving company. OFFICERS Diana P. Herrmann President since Vice Chair of Aquila Management N/A N/A New York, NY 1998 and Vice Corporation, Founder of the Aquila(sm) (02/25/58) Chair since Group of Funds and parent of the 2004 Administrator, since 2004, President and Chief Operating Officer since 1997, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Vice Chair since 2004 and President, Chief Operating Officer and Manager of the Administrator since 2003; Vice Chair, President, Executive Vice President or Senior Vice President of funds in the Aquila(sm) Group of Funds since 1986; Director of the Distributor since 1997; trustee, Reserve Money-Market Funds, 1999-2000 and Reserve Private Equity Series, 1998-2000; Governor, Investment Company Institute since 2004; active in charitable and volunteer organizations. Charles E. Childs, III Executive Vice Executive Vice President of all Funds N/A N/A New York, NY President since since 2003; Senior Vice President, (04/01/57) 2003 corporate development, formerly 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 Money-Market Funds since 1988. Sherri Foster Vice President Senior Vice President, Hawaiian Tax-Free N/A N/A Lahaina, HI since 1993 Trust since 1993; Vice President or (07/27/50) Assistant Vice President of three Aquila Money-Market Funds; Registered Representative of the Distributor since 1985. John M. Herndon Vice President Assistant Secretary of the Aquila(sm) N/A N/A New York, NY since 1990 and Group of Funds since 1995 and Vice (12/17/39) Assistant President of the three Aquila Secretary since Money-Market Funds since 1990; Vice 1995 President of the Administrator or its predecessor and current parent since 1990. Joseph P. DiMaggio Chief Financial Chief Financial Officer of the Aquila(sm) N/A N/A New York, NY Officer since Group of Funds since 2003 and Treasurer (11/06/56) 2003 and since 2000; Controller, Van Eck Global Treasurer since Funds, 1993-2000. 2000 Edward M. W. Hines Secretary since Partner, Hollyer Brady Smith & Hines LLP, N/A N/A New York, NY 1984 legal counsel to the Trust, since 1989; (12/16/39) Secretary of the Aquila(sm) Group of Funds. Robert W. Anderson Assistant Compliance Officer of the Administrator N/A N/A New York, NY Secretary since or its predecessor and current parent (08/23/40) 2000 since 1998 and Assistant Secretary of the Aquila(sm) Group of Funds since 2000; trustee, Alpha Strategies Fund since July, 2002; Consultant, The Wadsworth Group, 1995-1998. Lori A. Vindigni Assistant Assistant Treasurer of the Aquila(sm) N/A N/A New York, NY Treasurer since Group of Funds since 2000; Assistant Vice (11/02/66) 2000 President of the Administrator or its predecessor and current parent since 1998; Fund Accountant for the Aquila(sm) Group of Funds, 1995-1998.
- ---------- (1) The Trust's Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request by calling 800-437-1020 (toll free). (2) The mailing address of each Trustee and officer is c/o The Pacific Capital Funds of Cash Assets Trust, 380 Madison Avenue, Suite 2300, New York, NY 10017. (3) Each Trustee holds office until the next annual meeting of shareholders or until his successor is elected and qualifies. The term of office of each officer is one year. (4) Mr. Herrmann is an interested person of the Trust as that term is defined in the 1940 Act as a shareholder and director of the Distributor. (5) 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 Bond Funds"; Aquila Rocky Mountain Equity Fund is an equity fund; considered together, these 11 funds are called the "Aquila(sm) Group of Funds." PRIVACY NOTICE (UNAUDITED) OUR PRIVACY POLICY. In providing services to you as an individual who owns or is considering investing in shares of a fund of the Aquila(SM) Group of Funds, we collect certain nonpublic personal information about you. Our policy is to keep this information strictly safeguarded and confidential, and to use or disclose it only as necessary to provide services to you or as otherwise permitted by law. Our privacy policy applies equally to former shareholders and persons who inquire about a fund. INFORMATION WE COLLECT. "Nonpublic personal information" is personally identifiable financial information about you as an individual or your family. The kinds of nonpublic personal information we have about you may include the information you provide us on your share purchase application or in telephone calls or correspondence with us, and information about your fund transactions and holdings, how you voted your shares and the account where your shares are held. INFORMATION WE DISCLOSE. We disclose nonpublic personal information about you to companies that provide necessary services to your fund, such as the fund's transfer agent, distributor, investment adviser or sub-adviser and to our affiliates, as permitted or required by law, or as authorized by you. We also may disclose this information to another fund of the Aquila(SM) Group of Funds or its distributor, or to the broker-dealer that holds your fund shares, under agreements that permit them to use the information only to provide you information about your fund, other funds in the Aquila(SM) Group of Funds or new services we are offering which may be of interest to you. Any other use is strictly prohibited. We do not sell information about you or any of our fund shareholders to anyone. HOW WE SAFEGUARD YOUR INFORMATION. We restrict access to nonpublic personal information about you to only those persons who need it to provide services to you or who are permitted by law to receive it. We maintain physical, electronic and procedural safeguards to protect the confidentiality of all nonpublic personal information we have about you. If you have any questions regarding our Privacy Policy, please contact us at 1-800-228-7496. INFORMATION AVAILABLE (UNAUDITED) Much of the information that the funds in the Aquila(sm) 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. INVESTMENT ADVISER Asset Management Group of Bank of Hawaii P.O. Box 3170 * Honolulu, Hawaii 96802 ADMINISTRATOR Aquila Investment Management LLC 380 Madison Avenue, Suite 2300 * New York, New York 10017 BOARD OF TRUSTEES Theodore T. Mason, Chairman Lacy B. Herrmann, Founder Thomas W. Courtney Richard W. Gushman, II Stanley W. Hong Russell K. Okata Douglas Philpotts Oswald K. Stender OFFICERS Diana P. Herrmann, 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 * New York, New York 10017 TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC Inc. 760 Moore Road * King of Prussia, Pennsylvania 19406 CUSTODIAN Bank One Trust Company, N.A. 1111 Polaris Parkway * Columbus, Ohio 43240 INDEPENDENT AUDITORS KPMG LLP 757 Third Avenue * New York, New York 10017 Further information is contained in the Prospectus which must precede or accompany this report. ANNUAL REPORT MARCH 31, 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 ITEM 2. CODE OF ETHICS. (a) As of March 31, 2004 (the end of the reporting period) the Trust has adopted a code of ethics that applies to the Trust's principal executive officer(s)and principal financial officer(s) and persons performing similar functions ("Covered Officers") as defined in the Aquila Group of Funds Code of Ethics for Principal Executive and Senior Financial Officers under Section 406 of the Sarbanes-Oxley Act of 2002.; (f)(1) Pursuant to Item 10(a)(1), a copy of the Trust's Code of Ethics that applies to the Trust's principal executive officer(s) and principal financial officer(s) and persons performing similar functions is included as an exhibit to its annual report on this Form N-CSR; (f)(2) The text of the Trust's Code of Ethics that applies to the Trust's principal executive officer(s) and principal financial officer(s) and persons performing similar functions has been posted on its Internet website which can be found at the Trust's Internet address at aquilafunds.com. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1)(ii) The Board of Trustees of the Trust has determined that it does not have at least one audit committee financial expert serving on its audit committee. The Trust does not have such a person serving on the audit committee because none of the persons currently serving as Trustees happens to have the technical accounting and auditing expertise included in the definition of "audit committee financial expert" recently adopted by the Securities and Exchange Commission in connection with this Form N-CSR, and the Board has not heretofore deemed it necessary to seek such a person for election to the Board. The primary mission of the Board, which is that of oversight over the operations and affairs of the Trust, confronts the Trustees with a wide and expanding range of issues and responsibilities. The Trustees believe that, accordingly, it is essential that the Board's membership consist of persons with as extensive experience as possible in fulfilling the duties and responsibilities of mutual fund directors and audit committee members and, ideally, with extensive experience and background relating to the economic and financial sectors and securities in which the Trust invests, including exposure to the financial and accounting matters commonly encountered with respect to those sectors and securities. The Board believes that its current membership satisfies those criteria. It recognizes that it would also be helpful to have a member with the relatively focused accounting and auditing expertise reflected in the applicable definition of "audit committee financial expert," just as additional members with similarly focused technical expertise in other areas relevant to the Trust's operations and affairs would also contribute added value. However, the Board believes that the Trust is better served, and its assets better employed, by a policy of hiring experts in various areas, including the specialized area of technical accounting and auditing matters, if and as the Board identifies the need, rather than by seeking to expand its numbers by adding technical experts in the areas constituting its domain of responsibility. The Trust's Audit Committee Charter explicitly authorizes the Committee to retain such experts as it deems necessary in fulfilling its duties under the Charter. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES a) Audit Fees - The aggregate fees billed for professional services rendered by the principal accountant for the audit of each portfolio of the Registrant's annual financial statements were as follows: Name of Portfolio 204 2003 - ----------------- --- ----- Cash Assets Trust $16,450 $16,000 Tax-Free Cash Assets Trust $15,450 $15,000 US Government Securities Cash Assets Trust $15,450 $15,000 b) Audit Related Fees - There were no amounts billed for audit-related fees over the past two years. c) Tax Fees - Each portfolio of the Registrant was billed by the principal accountant for return preparation as follows: Name of Portfolio 204 2003 - ----------------- --- ----- Cash Assets Trust $2,935 $3,267 Tax-Free Cash Assets Trust $2,935 $7,142 US Government Securities Cash Assets Trust $2,935 $3,267 d) All Other Fees - There were no additional fees plaid for audit and non- audit services other than those disclosed in a) thorough c) above. e)(1) Currently, the audit committee of the Registrant pre-approves audit services and fees on an engagement-by-engagement basis e)(2) None of the services described in b) through d) above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, all were pre-approved on an engagement-by-engagement basis. f) No applicable. g) There were no non-audit services fees billed by the Registrant's accountant to the Registrant's investment adviser or distributor over the past two years. h) 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 that information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated to 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)(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) 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/ Lacy B. Herrmann - --------------------------------- Trustee and Founder June 7, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Vice Chair and President June 7, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Chief Financial Officer and Treasurer June 7, 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/ Lacy B. Herrmann - --------------------------------- Lacy B. Herrmann Trustee and Founder June 7, 2004 By: /s/ Diana P. Herrmann - --------------------------------- Diana P. Herrmann Vice Chair and President June 7, 2004 By: /s/ Joseph P. DiMaggio - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer and Treasurer June 7, 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.CODE ETH 2 sarbanes.txt SARBANES OXLEY CODE OF ETHICS AQUILASM GROUP OF FUNDS CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS UNDER SECTION 406 OF THE SARBANES-OXLEY ACT OF 2002 I. Covered Officers/Purpose of the Code This is the code of ethics (the "Code") for the investment companies within the Aquilasm Group of Funds (collectively, "Funds" and each, a "Fund," each of which is detailed in Exhibit A). It applies to the Fund's Principal Executive Officer(s) and Principal Financial Officer(s) (the "Covered Officers," each of whom is listed in Exhibit B), for the purpose of promoting: *honest and ethical conduct, including the ethical handling of actual; *or apparent conflicts of interest between personal and professional relationships; *full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; *compliance with applicable laws and governmental rules and regulations; *the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and *accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his/her service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his/her family, receives improper personal benefits as a result of his/her position with the Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as "affiliated persons" of the Fund. The Fund's and the investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund or for the adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Trustees ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund. Each Covered Officer must: *not use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund; *not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Fund; There are some conflict of interest situations that should always be discussed with the general counsel of the Fund ("General Counsel"), if material. Examples of these include: *service as a director on the board of any public or private company; *the receipt of any non-nominal gifts; *the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business- related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; *any ownership interest in, or any consulting or employment relationship with, any of the Fund's service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof; *a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. III. Disclosure and Compliance Each Covered Officer should familiarize himself/herself with the disclosure requirements generally applicable to the Fund; *each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund's Trustees and auditors, and to governmental regulators and self-regulatory organizations; each Covered Officer should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. Reporting and Accountability Each Covered Officer must: *upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he/she has received, read, and understands the Code; *annually thereafter affirm to the Board that he/she has complied with the requirements of the Code; *not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and *notify the Chair of the Audit Committee of the Fund promptly if he/she knows of any violation of this Code. Failure to do so is itself a violation of this Code. *file at least annually a complete and accurate Funds' Trustees and Officers Questionnaire. The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers1 sought by the Chairman of the Board or the President will be considered by the Audit Committee (the "Committee"). The Funds will follow these procedures in investigating and enforcing this Code: *the General Counsel will take all appropriate action to investigate any potential violations reported to him; *if, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action; any matter that the General Counsel believes is a violation will be reported to the Committee; * if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer; * the Committee will be responsible for granting waivers, as appropriate; and * any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. Other Policies and Procedures This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as othe policies or procedures of the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act and the adviser's more detailed policies and procedures set forth in their respective codes are separate requirements applying to the Covered Officers and others, and are not part of this Code. VI. Amendments Any amendments to this Code, other than amendments to Exhibit B, must be approved or ratified by a majority vote of the Board, including a majority of independent Trustees. VII. Confidentiality All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and the General Counsel, and if deemed appropriate by the Board, with other Funds in the complex where the Funds share a common Covered Officer. VIII. Internal Use The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion. Exhibit A Funds Covered by this Code of Ethics Aquila Cascadia Equity Fund Aquila Rocky Mountain Equity Fund Capital Cash Management Trust Cash Assets Trust series, consisting of Pacific Capital Cash Assets Trust Pacific Capital Tax-Free Cash Assets Trust Pacific Capital U.S. Government Cash Assets Trust Churchill Cash Reserves Trust Churchill Tax-Free Trust Hawaiian Tax-Free Trust Narragansett Insured Tax-Free Income Fund Prime Cash Fund Tax-Free Fund For Utah Tax-Free Fund of Colorado Tax-Free Trust of Arizona Tax-Free Trust of Oregon Exhibit B Persons Covered by this Code of Ethics The following officers of each Fund, and the identities of such officers as of October 1, 2003: Chairman Lacy B. Herrmann President Diana P. Herrmann Treasurer and Chief Financial Officer Joseph P. DiMaggio EX-99.CERT 3 cat306cert.txt SECTION 306 CERTIFICATION EX-99.CERT CERTIFICATIONS I, Lacy B. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Cash Asset 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; 3. 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: June 7, 2004 /s/ Lacy B. Herrmann - ---------------------- Title: Founder and Trustee 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: June 7, 2004 /s/ Diana P. Herrmann - ---------------------- Title: Vice Chair 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: June 7, 2004 /s/ Joseph P. DiMaggio - ------------------------ Title: Chief Financial Officer and Treasurer EX-99.906 CERT 4 cat906cert.txt SECTION 906 CERTIFICATION 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 March 31, 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: June 7, 2004 /s/ Lacy B. Herrmann --------------------- Lacy B. Herrmann Trustee and Founder Cash Assets Trust Dated: June 7, 2004 /s/ Diana P. Herrmann ---------------------- Vice Chair and President Cash Assets Trust Dated: June 7, 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-----