-----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, MYiqapekJI8W1k0j5VYFGOczSQ1Tz2FGWeCIsvr4KbuQ5C35RiDdbn5k7E5jRgXk qY0YX2sNqCIbwsbrEV4OXA== 0000093832-03-000011.txt : 20030908 0000093832-03-000011.hdr.sgml : 20030908 20030908125033 ACCESSION NUMBER: 0000093832-03-000011 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030908 EFFECTIVENESS DATE: 20030908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL CASH MANAGEMENT TRUST CENTRAL INDEX KEY: 0000093832 IRS NUMBER: 132780114 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-02481 FILM NUMBER: 03885541 BUSINESS ADDRESS: STREET 1: 380 MADISON AVE STREET 2: STE 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 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL CAPITAL CASH MANAGEMENT TRUST DATE OF NAME CHANGE: 19820921 FORMER COMPANY: FORMER CONFORMED NAME: STCM CORP DATE OF NAME CHANGE: 19770201 N-CSR/A 1 ccmtformncsr.txt CAPITAL CASH MANAGEMENT TRUST 6/30/03 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 811-2481 Capital Cash Management 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: 6/30 Date of reporting period: 6/30/03 FORM N-CSR ITEM 1. REPORTS TO STOCKHOLDERS. CAPITAL CASH MANAGEMENT TRUST Annual Report June 30, 2003 [Logo of the Aquila Group of Funds: an eagle's head] AQUILA(SM) GROUP OF FUNDS SERVING INVESTORS SINCE 1976 CAPITAL CASH MANAGEMENT TRUST 380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017 800-437-1020 * 212-697-6666 [Logo of Capital Cash Management Trust: a triangle with a wave pattern in the left half and a grain of wheat in the right half. Beneath this triangle are the words STABILITY * LIQUIDITY * YIELD] ANNUAL REPORT 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 1-800-437-1020. [Logo of KPMG LLP: four solid rectangles with the letters KPMG in front of them] INDEPENDENT AUDITORS' REPORT To the Board of Trustees and Shareholders of Capital Cash Management Trust: We have audited the accompanying statement of assets and liabilities, including the statement of investments of the Capital Cash Management Trust ("the Fund," one of the portfolios constituting the Capital Cash Management Trust), as of June 30, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund'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 auditing standards generally accepted in the United States of America. 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 June 30, 2003, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Capital Cash Management Trust as of June 30, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two year period then ended, and financial highlights for each of the years in the five year period then ended, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP New York, New York August 8, 2003 CAPITAL CASH MANAGEMENT TRUST STATEMENT OF INVESTMENTS JUNE 30, 2003
FACE AMOUNT COMMERCIAL PAPER - 4.0% VALUE - -------- ------------------------------------------------------------ ---------- FINANCE - 4.0% -------------- $ 70,000 American Express Credit, 1.22%, 07/14/03 ................... $ 69,969 U.S. GOVERNMENT AGENCY DISCOUNT NOTES- 92.9% ------------------------------------------------------------ Federal Farm Credit Bank 125,000 1.18%, 07/11/03 ......................................... 124,959 Federal Home Loan Banks 126,000 0.89%, 07/01/03 ......................................... 126,000 100,000 1.18%, 07/02/03 ......................................... 99,997 Federal Home Loan Mortgage Corp. 100,000 1.13%, 07/08/03 ......................................... 99,978 150,000 1.16%, 07/15/03 ......................................... 149,932 100,000 1.00%, 07/17/03 ......................................... 99,955 80,000 1.16%, 07/17/03 ......................................... 79,959 100,000 0.96%, 08/11/03 ......................................... 99,891 Federal National Mortgage Association 100,000 0.70%, 07/01/03 ......................................... 100,000 259,000 0.92%, 07/09/03 ......................................... 258,947 100,000 0.90%, 07/25/03 ......................................... 99,940 100,000 0.96%, 07/28/03 ......................................... 99,928 100,000 1.00%, 07/28/03 ......................................... 99,925 100,000 1.00%, 07/31/03 ......................................... 99,917 ---------- Total U.S. Government Agency Discount Notes .......... 1,639,328 ---------- Total Investments (cost $1,709,297*) ........... 96.9% 1,709,297 Other assets less liabilities .................. 3.1 54,569 ------ ---------- Net Assets ..................................... 100.0% $1,763,866 ====== ==========
(*) Cost for Federal tax purposes is identical. See accompanying notes to financial statements. CAPITAL CASH MANAGEMENT TRUST STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2003 ASSETS: Investments at value (cost $1,709,297) ............................ $ 1,709,297 Receivable for Trust shares sold .................................. 227,285 Due from Administrator for reimbursement of expenses (note 3) ..... 6,286 Other assets ...................................................... 1,833 ----------- Total Assets ...................................................... 1,944,701 ----------- LIABILITIES: Cash overdraft .................................................... 137,559 Payable for Trust shares redeemed ................................. 22,706 Dividends payable ................................................. 716 Accrued expenses .................................................. 19,854 ----------- Total Liabilities ................................................. 180,835 ----------- NET ASSETS ........................................................ $ 1,763,866 =========== NET ASSETS CONSIST OF: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ....................................... $ 17,639 Additional paid-in capital ........................................ 1,746,961 Accumulated net investment loss ................................... (719) Accumulated net realized loss on investments ...................... (15) ----------- $ 1,763,866 =========== SHARES OF BENEFICIAL INTEREST: Original Shares Class: Net Assets ..................................................... $ 1,763,866 =========== Shares outstanding ............................................. 1,763,870 =========== Net asset value per share ...................................... $ 1.00 ===========
See accompanying notes to financial statements. CAPITAL CASH MANAGEMENT TRUST STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2003 INVESTMENT INCOME: Interest income ............................................... $ 26,525 -------- EXPENSES: Investment Adviser fees (note 3) .............................. 3,721 Administrator fees (note 3) ................................... 2,791 Legal fees .................................................... 25,825 Trustees' fees and expenses ................................... 14,101 Registration fees and dues .................................... 12,102 Auditing fees ................................................. 10,167 Shareholders' reports ......................................... 7,212 Custodian fees ................................................ 4,596 Transfer and shareholder servicing agent fees ................. 4,067 Professional services ......................................... 1,692 Insurance ..................................................... 699 Miscellaneous ................................................. 4,047 -------- Total expenses ................................................ 91,020 Investment Advisory fees waived (note 3) ...................... (3,721) Administration fees waived (note 3) ........................... (2,791) Reimbursement of expenses by Administrator (note 3) ........... (77,242) Expenses paid indirectly (note 5) ............................. (635) -------- Net expenses .................................................. 6,631 -------- Net investment income ............................................ 19,894 -------- Net increase in net assets resulting from operations ............. $ 19,894 ======== See accompanying notes to financial statements. CAPITAL CASH MANAGEMENT TRUST STATEMENTS OF CHANGES IN NET ASSETS
Year Ended Year Ended June 30, 2003 June 30, 2002 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income .............................. $ 19,894 $ 38,864 Net realized loss from securities transactions ..... - (15) ----------- ----------- Change in net assets resulting from operations ..... 19,894 38,849 ----------- ----------- DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME: Original Shares .................................... (19,894) (38,864) ----------- ----------- CAPITAL SHARE TRANSACTIONS (at $1.00 per share): Proceeds from shares sold: Original Shares ................................. 4,112,943 2,397,748 Reinvested dividends and distributions: Original Shares ................................. 21,466 36,664 Cost of shares redeemed: Original Shares ................................. (3,925,694) (2,955,591) ----------- ----------- Change in net assets from capital share transactions .................................... 208,715 (521,179) ----------- ----------- Total change in net assets ............................ 208,715 (521,194) NET ASSETS: Beginning of period ................................ 1,555,151 2,076,345 ----------- ----------- End of period ...................................... $ 1,763,866 $ 1,555,151 =========== ===========
See accompanying notes to financial statements. CAPITAL CASH MANAGEMENT TRUST NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Capital Cash Management Trust (the "Trust") is a Massachusetts business trust established on August 20, 1976 as a successor to the money-market fund, the STCM Corporation, which commenced operations on July 8, 1974. It is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end investment company. The Trust consists of the following two investment portfolios: Capital Cash Management Trust (the "Fund", a diversified portfolio which commenced operations on July 8, 1974), and Capital Cash U.S. Government Securities Trust (a diversified portfolio which commenced operations on March 16, 2000). The financial statements included herein are solely those of the Fund. 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. As of the report date there were no Service Shares outstanding. The Original Shares Class of the Cash Fund includes all currently outstanding shares that were issued prior to November 1, 1999, the date on which the Capital structure was changed to include two classes rather than one. The two classes 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 Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies. a) PORTFOLIO VALUATION: The 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 Fund's shares is determined as of 4:00 p.m. New York time on each day that the New York Stock Exchange is open by dividing the value of the assets of the Fund allocable to that class less Fund liabilities allocable to the class and any liabilities charged directly to the class, exclusive of surplus, by the total number of shares of the class outstanding. Investment income, realized and unrealized gains and losses, if any, and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class. d) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The 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 the 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 accounting principles generally accepted in the United States of America 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: STCM Management Company, Inc. (the "Adviser") is the Investment Adviser to the Trust. In this role, under the Advisory Agreement, the Adviser supervises the Fund's investments and provides various services for which it receives a fee from the Fund which is payable monthly and computed at the annual rate of 0.20% of the Fund's average daily net assets. The Trust also has an Administration Agreement with Aquila Management Corporation (the "Administrator") to provide all administrative services to the Trust other than those relating to the investment portfolio. The Administrator receives a fee from the Fund for such services which is payable monthly and computed at the annual rate of 0.15% of the Fund's average daily net assets. Details regarding the services provided by the Adviser and the Administrator are provided in the Trust's Prospectus and Statement of Additional Information. With respect to the Fund, the Adviser and the Administrator each has agreed 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 the Fund in any fiscal year, exclusive of taxes, interest, and brokerage fees, shall exceed the lesser of (i) 1.5% of the first $30 million of its average annual net assets plus 1% of its average annual net assets in excess of $30 million, or (ii) 25% of its total annual investment income. No such reduction in fees was required during the year ended June 30, 2003, inasmuch as the Adviser and the Administrator voluntarily waived their entire fees in the amount of $3,721 and $2,791, respectively. In addition, in order to comply with this expense limitation, the Administrator reimbursed expenses in the amount of $77,242. Of this amount, $70,956 was paid prior to June 30, 2003 and the balance was paid in early July 2003. Also, the Administrator has undertaken to waive fees or reimburse the Fund to the extent that annual expenses exceed 0.60 of 1% of average net assets in any fiscal year. No additional reimbursement was required under this limitation. b) DISTRIBUTION AND SERVICE FEES: The 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 Fund's Service Shares or in the servicing of Service Share accounts. The total payments under this part of a Fund's Plan may not exceed 0.25 of 1% of its average annual assets represented by Service Shares. No such payments will be made by the Original Share Class. No such expenses were incurred for the year ended June 30, 2003. Specific details about each Plan, including parts that authorize certain payments not by the Fund, are more fully defined in the Prospectus and Statement of Additional Information of the Trust. Under a Distribution Agreement, Aquila Distributors, Inc. (the "Distributor") serves as the exclusive distributor of the Fund's shares. No compensation or fees are paid to the Distributor for such share distribution. c) OTHER RELATED PARTY TRANSACTIONS: For the year ended June 30, 2003, the Fund incurred $24,818 of legal fees paid 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. DISTRIBUTIONS The Fund declares dividends daily from net investment income and make payments monthly in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder's option. Due to differences between financial statement reporting and Federal income tax reporting requirements, $719 has been charged to accumulated net investment loss and $719 credited to additional paid-in capital, reflecting a permanent adjustment to undistributed net investment income computed on a tax basis as of June 30, 2003. At June 30, 2003, the Fund had a capital loss carryover of $20 of which $5 expires in the year ended June 30, 2005 and $15 of which expires in the year ended June 30, 2011. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. To the extent that this loss is used to offset future realized capital gains, it is probable the gains so offset will not be distributed. The tax character of distributions during the fiscal years ended June 30, 2003 and 2002 is as follows: Distributions from Year Ended June 30, 2003 2002 -------- -------- Ordinary income $ 19,894 $ 38,864 ======== ======== As of June 30, 2003, the components of distributable earnings on a tax basis were as follows: Accumulated net realized loss $ 20 ==== 5. EXPENSES The Fund has negotiated an expense offset arrangement with the custodian wherein the Fund receives 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, if any, and the net expenses. It is the general intention of the Fund to invest, to the extent practicable, some or all of cash balances in income-producing assets rather than leave cash on deposit. CAPITAL CASH MANAGEMENT TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
YEAR ENDED JUNE 30, ---------------------------------------------------------------- 2003 2002 2001 2000 1999 -------- -------- -------- -------- -------- Net asset value, beginning of period ....................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ................................... 0.0107 0.0194 0.0540 0.0524 0.0473 -------- -------- -------- -------- -------- Less distributions: Dividends from net investment income .................... (0.0107) (0.0194) (0.0540) (0.0524) (0.0473) -------- -------- -------- -------- -------- Net asset value, end of period ............................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 ======== ======== ======== ======== ======== Total return ............................................... 1.08% 1.96% 5.54% 5.37% 4.84% Ratios/supplemental data Net assets, end of period (in thousands) ................ $1,764 $1,555 $2,076 $1,699 $1,616 Ratio of expenses to average net assets ................. 0.39% 0.41% 0.40% 0.41% 0.41% Ratio of net investment income to average net assets .... 1.03% 1.97% 5.40% 5.24% 4.72% The expense and net investment income ratios without the effect of the Adviser's and Administrator's voluntary waiver of fees and the Administrator's expense reimbursement were: Ratio of expenses to average net assets ................. 4.86% 3.47% 3.45% 5.14% 3.51% Ratio of net investment income (loss) to average net assets ................................... (3.43%) (1.09)% 2.35% 0.50% 1.62% The expense ratios after giving effect to the waivers, reimbursements and expense offset for uninvested cash balances were: Ratio of expenses to average net assets ................. 0.36% 0.40% 0.40% 0.40% 0.40%
See accompanying notes to financial statements. ADDITIONAL INFORMATION (UNAUDITED) TRUSTEES(1) AND OFFICERS
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 President and Founder and Chairman of the Board, Aquila 12 Director or trustee, New York, NY Chairman of Management Corporation, the sponsoring OCC Cash Reserves, (05/12/29) the Board of organization and Manager or Administrator and/or Inc., OCC Trustees since Adviser or Sub-Adviser to each fund of the Accumulation Trust, 1976 Aquila(SM) Group of Funds(5) and Founder, Chairman Oppenheimer Quest of the Board of Trustees and (currently or until Value Funds Group, 1998) President of each since its establishment, Oppenheimer Small beginning in 1984; Director of the Distributor Cap Value Fund, since 1981 and formerly Vice President or Oppenheimer Midcap Secretary, 1981-1998; President and a Director, Fund, and STCM Management Company, Inc., sponsor and Oppenheimer investment adviser to Capital Cash Management Rochester Group of Trust since 1973; Trustee Emeritus, Brown Funds. University and active in university, school and charitable organizations. Diana P. Herrmann Trustee since President and Chief Operating Officer of the 7 None New York, NY 1997 and Manager since 1997, a Director since 1984, (02/25/58) President since Secretary since 1986 and previously its Executive 2002 Vice President, Senior Vice President or Vice President, 1986-1997; President, Senior Vice President or Executive 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; active in mutual fund and trade organizations and in charitable and volunteer organizations. Theodore T. Mason Vice Chairman Executive Director, East Wind Power Partners LTD 6 Trustee, OCC New York, NY and Trustee since 1994 and Louisiana Power Partners, LLC since Accumulation Trust. (11/24/35) since 1981 1999; President, Alumni Association of SUNY Maritime College since 2002 (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. NON-INTERESTED TRUSTEES Paul Y. Clinton Trustee since Principal, Clinton Management Associates, a 2 Director or trustee, Osterville, MA 1979 financial and venture capital consulting firm. OCC Cash Reserves, and Naples, FL Inc., OCC (02/14/31) Accumulation Trust, Oppenheimer Quest Value Funds Group, Oppenheimer Small Cap Value Fund, Oppenheimer Midcap Fund, and Oppenheimer Rochester Group of Funds. Anne J. Mills Trustee since President, Loring Consulting Company since 2001; 5 None Castle Rock, CO 1987 Vice President for Business Affairs, Ottawa (12/23/38) University, 1992-2001; IBM Corporation, 1965-1991; Budget Review Officer, the American Baptist Churches/ USA, 1994-1997; director, the American Baptist Foundation since 1985 and Trustee Emerita, Brown University. Cornelius T. Ryan Trustee since Founder and General Partner, Oxford Ventures 3 Director of Westport, CT and 1976 Partners, a group of investment venture capital Neuberger & Berman Sun Valley, ID partnerships, since 1981 and Founder and General Equity Funds. (11/14/31) Partner, Oxford Bioscience Partners, a group of venture capital partnerships focused on life sciences, genomics, healthcare information technology and medical devices, since 1991. J. William Weeks Trustee since Retired; limited partner and investor in various 3 None Palm Beach, FL 2001 real estate partnerships since 1988; formerly (06/22/27) Senior Vice President or Vice President of the Aquila Bond Funds; and Vice President of the Distributor. OFFICERS Charles E. Childs III Senior Vice Senior Vice President, corporate development, N/A N/A New York, NY President since formerly Vice President, Assistant Vice President (04/01/57) 1988 and Associate of the Manager/Administrator since 1987; Senior Vice President, Vice President or Assistant Vice President of the Money-Market Funds since 1988. John M. Herndon Vice President Assistant Secretary of the Aquila(SM) Group of Funds N/A N/A New York, NY since 1990 and since 1995 and Vice President of the four Aquila (12/17/39) Assistant Money-Market Funds since 1990; Vice President of Secretary since the Manager since 1990. 1995 Joseph P. DiMaggio Chief Financial Chief Financial Officer of the Aquila(SM) Group of N/A N/A New York, NY Officer since Funds since 2003 and Treasurer since 2000; (11/06/56) 2003 and Controller, Van Eck Global Funds, 1993-2000. Treasurer since 2000 Edward M. W. Hines Secretary since Partner, Hollyer Brady Smith & Hines LLP, legal N/A N/A New York, NY 1982 counsel to the Trust, since 1989; Secretary of the (12/16/39) Aquila(SM) Group of Funds. Robert W. Anderson Assistant Compliance Officer of the Manager since 1998 and N/A N/A New York, NY Secretary since Assistant Secretary of the Aquila(SM) Group of Funds (08/23/40) 2000 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) Group of Funds N/A N/A New York, NY Treasurer since since 2000; Assistant Vice President of the (11/02/66) 2000 Manager 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 Capital Cash Management Trust, 380 Madison Avenue, New York, NY 10017. (3) Each Trustee holds office until the next annual meeting of shareholders or until his or her successor is elected and qualifies. The term of office of each officer is one year. (4) Mr. Herrmann and Ms. Herrmann are interested persons of the Trust, as that term is defined in the 1940 Act, as officers of the Trust; in addition Mr. Herrmann is an officer, director and shareholder of the Adviser and of the Distributor and each is an interested person as a member of the immediate family of the other. Mr. Mason is an interested person as an officer of the Trust and as a Director and a shareholder (through ownership by his wife) of the Adviser. (5) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S. Government Securities Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Capital Cash Management 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"; and Aquila Rocky Mountain Equity Fund is an equity fund; considered together, these 12 funds are called the "Aquila(SM) Group of Funds." ADMINISTRATOR AQUILA MANAGEMENT CORPORATION 380 Madison Avenue, Suite 2300 New York, New York 10017 INVESTMENT ADVISER STCM MANAGEMENT COMPANY, INC. 380 Madison Avenue, Suite 2300 New York, New York 10017 DISTRIBUTOR AQUILA DISTRIBUTORS, INC. 380 Madison Avenue, Suite 2300 New York, New York 10017 TRUSTEES Lacy B. Herrmann, Chairman Theodore T. Mason, Vice Chairman Paul Y. Clinton Diana P. Herrmann Anne J. Mills Cornelius T. Ryan J. William Weeks OFFICERS Diana P. Herrmann, President Charles E. Childs, III, Senior Vice President & Portfolio Manager John M. Herndon, Vice President & Assistant Secretary Joseph P. DiMaggio, Chief Financial Officer and Treasurer Edward M.W. Hines, Secretary TRANSFER AND SHAREHOLDER SERVICING AGENT PFPC Inc. 400 Bellevue Parkway Wilmington, Delaware 19809 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 JUNE 30, 2003 A CASH MANAGEMENT INVESTMENT CAPITAL CASH MANAGEMENT TRUST [Logo of Capital Cash Management Trust: a triangle with a wave pattern in the left half and a grain of wheat in the right half. Beneath this triangle are the words STABILITY * LIQUIDITY * YIELD] [Logo of the Aquila Group of Funds: an eagle's head] ONE OF THE AQUILA(SM) GROUP OF FUNDS ANNUAL REPORT June 30, 2003 CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST 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 Aquilasm 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 Aquilasm 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 1-800-437-1020. Independent Auditors' Report The Board of Trustees and Shareholder of Capital Cash U.S. Government Securities Trust: We have audited the accompanying statement of assets and liabilities of Capital Cash U.S. Government Securities Trust ("the Fund", one of the portfolios constituting the Capital Cash Management Trust), as of June 30, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the three year period then ended and for the period March 16, 2000 (commencement of operations) through June 30, 2000. These financial statements and financial highlights are the responsibility of the Fund'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 auditing standards generally accepted in the United States of America. 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Capital Cash U.S. Government Securities Trust of the Capital Cash Management Trust as of June 30, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the three year period then ended and for the period March 16, 2000 (commencement of operations) through June 30, 2000, in conformity with accounting principles generally accepted in the United States of America. /s/ KPMG LLP - -------------- New York, New York August 8, 2003 CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2003 ASSETS: Cash $ 11,695 Due from Administrator for reimbursement of expenses 1,243 Total Assets 12,938 LIABILITIES: Distribution fees payable 408 Accrued expenses 11,518 Total Liabilities 11,926 NET ASSETS $ 1,012 NET ASSETS CONSIST OF: Capital Stock - Authorized an unlimited number of shares, par value $.01 per share $ 10 Additional paid-in capital 1,752 Accumulated net realized loss on investments (750) $1,012 SHARES OF BENEFICIAL INTEREST: Service Shares Class: Net Assets $1,012 Shares outstanding 1,012 Net asset value per share 1.00 See accompanying notes to financial statements. CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2003 INVESTMENT INCOME: Interest income $ 819 EXPENSES: Investment Adviser fees (note 3) 98 Administrator fees (note 3) 73 Auditing fees 8,999 Trustees' fees and expenses 5,469 Professional services 1,692 Transfer and shareholder servicing agent fees 1,209 Registration fees 445 Custodian fees 293 Shareholders' reports 289 Legal fees 196 Distribution fees (note 3) 124 Miscellaneous 839 Total expenses 19,726 Investment Advisory fees waived (note 3) (98) Administration fees waived (note 3) (73) Reimbursement of expenses by Administrator (note 3) (19,264) Expenses paid indirectly (note 5) (167) Net expenses 124 Net investment income 695 Net increase in net assets resulting from operations $695 See accompanying notes to financial statements. CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST STATEMENTS OF CHANGES IN NET ASSETS Year Ended Year Ended June 30, 2003 June 30, 2002 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $695 $88,173 Net realized loss from securities transactions - (91) Change in net assets resulting from operations 695 88,082 DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME (695) (88,173) CAPITAL SHARE TRANSACTIONS Proceeds from shares sold: Service Shares 221 2,116,752 Reinvested dividends and distributions: Service Shares 596 88,028 Cost of shares redeemed: Service Shares (116,172) (6,440,623) Change in net assets from capital share transactions (115,355) (4,235,843) Total change in net assets (115,355) (4,235,934) NET ASSETS: Beginning of period 116,367 4,352,301 End of period $ 1,012 116,367 See accompanying notes to financial statements. CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Capital Cash Management Trust (the "Trust") is a Massachusetts business trust established on August 20, 1976 as a successor to the money-market fund, the STCM Corporation, which commenced operations on July 8, 1974. It is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end investment company. The Trust consists of the following two investment portfolios: Capital Cash Management Trust (a diversified portfolio which commenced operations on July 8, 1974), and Capital Cash U.S. Government Securities Trust (the "Fund", a diversified portfolio which commenced operations on March 16, 2000). The financial statements included herein are solely those of the Fund. 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 two classes are substantially identical, except that Service Shares bear the fees that are payable under the Trust's Distribution Plan. The Fund ceased operations on December 10, 2002 inasmuch as all shares outstanding, except for 1,012 shares owned by Aquila Management Corporation, had been redeemed by shareholders. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies. a) PORTFOLIO VALUATION: The 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. b) DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES: The net asset value per share for each class of the Fund's shares is determined as of 4:00 p.m. New York time on each day that the New York Stock Exchange is open by dividing the value of the assets of the Fund allocable to that class less Fund liabilities allocable to the class and any liabilities charged directly to the class, exclusive of surplus, by the total number of shares of the class outstanding. Investment income, realized and unrealized gains and losses, if any, and expenses other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class. c) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Fund intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes. d) 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. e) USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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: STCM Management Company, Inc. (the "Adviser") is the Investment Adviser to the Trust. In this role, under Advisory Agreements, the Adviser supervises the Fund's investments and provides various services for which it receives a fee from the Fund which is payable monthly and computed at the annual rate of 0.20% of each Fund's average daily net assets. The Trust also has an Administration Agreement with Aquila Management Corporation (the "Administrator") to provide all administrative services to the Trust other than those relating to the investment portfolio. The Administrator receives a fee from the Fund for such services which is payable monthly and computed at the annual rate of 0.15% of the Fund's average daily net assets. Details regarding the services provided by the Adviser and the Administrator are provided in the Trust's Prospectus and Statement of Additional Information. For the year ended June 30, 2003 the Fund incurred fees under the Advisory Agreement and Administration Agreement of $98 and $73, respectively, of which amounts the Adviser and Administrator waived $98 and $73, respectively. Additionally, the Administrator voluntarily agreed to reimburse the Fund for other expenses during this period in the amount of $19,264. For the year ended June 30, 2003, the expense reimbursements/waivers amounted to $19,435. Of the expense reimbursements, $18,021 was paid prior to June 30, 2003 and the balance was paid in early July 2003. b) DISTRIBUTION AND SERVICE FEES: The 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 Fund's Service Shares or in the servicing of Service Share accounts. The total payments under this part of the Fund's Plan may not exceed 0.25 of 1% of its average annual assets represented by Service Shares. No such payments will be made by the Original Share Class. Specific details about each Plan, including parts that authorize certain payments not by the fund are more fully defined in the Prospectus and Statement of Additional Information of the Trust. Under a Distribution Agreement, Aquila Distributors, Inc. (the "Distributor") serves as the exclusive distributor of the Fund's shares. No compensation or fees are paid to the Distributor for such share distribution. c) OTHER RELATED PARTY TRANSACTIONS: For the year ended June 30, 2003, all of the Fund's legal fees were paid to Hollyer Brady Smith & Hines LLP, counsel to the Fund, for legal services in conjunction with the Fund's operations. The Secretary of the Fund is a Partner of Hollyer Brady Smith & Hines LLP. 4. DISTRIBUTIONS The Fund declares dividends daily from net investment income and makes payments monthly in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder's option. The tax character of distributions during the fiscal years June 30, 2003 and 2002 is as follows: Year Ended June 30, 2003 2002 - ---- ---- Ordinary Income $695 $177,004 At June 30, 2002, the Fund had a capital loss carryover of $751, of which $657 expires in the year ending June 30, 2009, $3 expires in the year ending June 30, 2010 and $91 expires in the year ended June 30, 2011. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code. To the extent that this loss is used to offset future realized capital gains, it is probable the gains so offset will not be distributed. 5. EXPENSES The Fund has negotiated an expense offset arrangement with its custodian wherein it receives credit toward the reduction of custodian fees and other expenses whenever there are uninvested cash balances. The Statement of Operations reflects the total expenses before any offset, the amount of offset, if any, and the net expenses. It is the general intention of the Fund to invest, to the extent practicable, some or all of cash balances in income-producing assets rather than leave cash on deposit. CAPITAL CASH U.S. GOVERNMENT SECURITIES TRUST FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD Year Ended June 30, ------------------- Period Ended(1) 2003 2002 2001 6/30/03 - ------ ---- ---- ---- ------- Net asset value, beginning of period $1.0000 $1.0000 $1.0000 $1.0000 Income from investment operations: Net investment income 0.0062 0.0196 0.0516 0.0161 Less distributions: Dividends from net Investment income (.0062) (0.0196) (0.0516) (0.0161) Net asset value, end of period $1.0000 $1.0000 $1.0000 $1.0000 Total return 0.62% 1.98% 5.28% 1.62%+ Ratios/supplemental data Net assets, end of period (in thousands) $1 $116 $4,352 $1,688 Ratio of expenses to average net assets 0.60% 0.31% 0.59% 0.68%* Ratio of net investment income to average net assets 1.09% 2.08% 4.70% 5.30%* The expense and net investment income ratios without the effect of the Adviser's and Administrator's voluntary waiver of fees and the Administrator's expense reimbursement were: Ratio of expenses to average net assets 40.22% 1.96% 1.86% 1.24%* Ratio of net investment income (loss) to average net assets (38.53)% 0.44% 3.43% 4.73%* The expense ratios after giving effect to the waivers, reimbursements and expense offset for uninvested cash balances were: Ratio of expenses to average net assets 0.26% 0.28% 0.44% 0.65%* (1)For the period March 16, 2000 (commencement of operations) through June 30, 2000. + Not annualized. * Annualized. See accompanying notes to financial statements. Additional Information (unaudited)
Trustees(1) and Officers Number of Positions Held Portfolios Other Directorships with in Fund Held by Trustee Trust and Complex (The position held is Name, Address(2) Length of Principal 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 President and Founder and Chairman of the 12 Director or trustee, OCC Cash New York, NY Chairman of Board, Aquila Management Reserves, Inc., OCC (05/12/29) the Board of Corporation, the sponsoring Accumulation Trust, Oppenheimer Trustees since organization and Manager or Quest Value Funds Group, 1976 Administrator and/or Adviser or Oppenheimer Small Cap Value Sub-Adviser to each fund of the Fund, Oppenheimer Midcap Fund, Aquilasm Group of Funds(5) and and Oppenheimer Rochester Group Founder, Chairman of the Board of Funds. of Trustees and (currently or until 1998) President of each since its establishment, beginning in 1984; Director of the Distributor since 1981 and formerly Vice President or Secretary, 1981-1998; President and a Director, STCM Management Company, Inc., sponsor and investment adviser to Capital Cash Management Trust since 1973; Trustee Emeritus, Brown University and active in university, school and charitable organizations. Diana P. Herrmann Trustee since President and Chief Operating 7 None New York, NY 1997 and Officer of the Manager since (02/25/58) President 1997, a Director since 1984, since 2002 Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; President, Senior Vice President or Executive Vice President of funds in the Aquilasm 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; active in mutual fund and trade organizations and in charitable and volunteer organizations. Theodore T. Mason Vice Chairman Executive Director, East Wind 6 Trustee, OCC Accumulation New York, NY and Trustee Power Partners LTD since 1994 Trust. (11/24/35) since 1981 and Louisiana Power Partners, LLC since 1999; President, Alumni Association of SUNY Maritime College since 2002 (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. Non-interested Trustees - -------------- Paul Y. Clinton Trustee Principal, Clinton Management 2 Director or trustee, OCC Osterville, MA since 1979 Associates, a financial and Cash Reserves, Inc., OCC and Naples, FL venture capital consulting firm. Accumulation Trust, (02/14/31) Oppenheimer Quest Value Funds Group, Oppenheimer Small Cap Value Fund, Oppenheimer Midcap Fund, and Oppenheimer Rochester Group of Funds. Anne J. Mills Trustee President, Loring Consulting 5 None Castle Rock, CO since 1987 Company since 2001; Vice (12/23/38) President for Business Affairs, Ottawa University, 1992-2001; IBM Corporation, 1965-1991; Budget Review Officer, the American Baptist Churches/USA, 1994-1997; director, the American Baptist Foundation since 1985 and Trustee Emerita, Brown University. Cornelius T. Ryan Trustee Founder and General Partner, 3 Director of Neuberger & Westport, CT and since 1976 Oxford Ventures Partners, a Berman Equity Funds. Sun Valley, ID group of investment venture (11/14/31) capital partnerships, since 1981 and Founder and General Partner, Oxford Bioscience Partners, a group of venture capital partnerships focused on life sciences, genomics, healthcare information technology and medical devices, since 1991. J. William Weeks Trustee Retired; limited partner and 3 None Palm Beach, FL since 2001 investor in various real estate (06/22/27) partnerships since 1988; formerly Senior Vice President or Vice President of the Aquila Bond Funds; and Vice President of the Distributor. Officers - -------- Charles E. Senior Vice Senior Vice President, corporate N/A N/A Childs III President development, formerly Vice New York, NY since 1988 President, Assistant Vice (04/01/57) President and Associate of the Manager/Administrator since 1987; Senior Vice President, Vice President or Assistant Vice President of the Money-Market Funds since 1988. John M. Herndon Vice President Assistant Secretary of the N/A N/A New York, NY (12/17/39) since 1990 and Aquilasm Group of Funds since Assistant 1995 and Vice President of the Secretary four Aquila Money-Market Funds since 1995 since 1990; Vice President of the Manager since 1990. Joseph P. DiMaggio Chief Chief Financial Officer of the N/A N/A New York, NY Financial Aquilasm Group of Funds since (11/06/56) Officer since 2003 and Treasurer since 2000; 2003 and Controller, Van Eck Global Treasurer Funds, 1993-2000. since 2000 Edward M. W. Hines Secretary Partner, Hollyer Brady Smith & N/A N/A New York, NY since 1982 Hines LLP, legal counsel to the (12/16/39) Trust, since 1989; Secretary of the Aquilasm Group of Funds. Robert W. Anderson Assistant Compliance Officer of the N/A N/A New York, NY (08/23/40) Secretary Manager since 1998 and Assistant since 2000 Secretary of the Aquilasm 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 N/A N/A New York, NY Treasurer since Aquilasm Group of Funds since (11/02/66) 2000 2000; Assistant Vice President of the Manager since 1998; Fund Accountant for the Aquilasm 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 Capital Cash Management Trust, 380 Madison Avenue, New York, NY 10017. (3) Each Trustee holds office until the next annual meeting of shareholders or until his or her successor is elected and qualifies. The term of office of each officer is one year. (4) Mr. Herrmann and Ms. Herrmann are interested persons of the Trust, as that term is defined in the 1940 Act, as officers of the Trust; in addition Mr. Herrmann is an officer, director and shareholder of the Adviser and of the Distributor and each is an interested person as a member of the immediate family of the other. Mr. Mason is an interested person as an officer of the Trust and as a Director and a shareholder (through ownership by his wife) of the Adviser. (5) In this material Pacific Capital Cash Assets Trust, Pacific Capital U.S. Government Securities Cash Assets Trust, Pacific Capital Tax-Free Cash Assets Trust and Capital Cash Management 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"; and Aquila Rocky Mountain Equity Fund is an equity fund; considered together, these 12 funds are called the "Aquilasm Group of Funds." ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. 905: 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) Not applicable. (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. CAPITAL CASH MANAGEMENT TRUST By: /s/ Lacy B. Herrmann - --------------------------------- Chairman of the Board September 8, 2003 By: /s/ Diana P. Herrmann - --------------------------------- President September 8, 2003 By: /s/ Joseph P. DiMaggio - ----------------------------------- Chief Financial Officer September 8, 2003 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 Chairman of the Board September 8, 2003 By: /s/ Diana P. Herrmann - --------------------------------- Diana P. Herrmann President September 8, 2003 By: /s/ Joseph P. DiMaggio - ----------------------------------- Joseph P. DiMaggio Chief Financial Officer September 8, 2003 CAPITAL CASH MANAGEMENT TRUST EXHIBIT INDEX (a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. (b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940. EX-99.CERT 2 ccmt302cert.txt 302 CERTIFICATIONS EX-99.CERT CERTIFICATIONS I, Lacy B. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Capital Cash Management 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 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: September 8, 2003 /s/ Lacy B. Herrmann - ---------------------- Title: Chairman of the Board I, Diana P. Herrmann, certify that: 1. I have reviewed this report on Form N-CSR of Capital Cash Management 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: September 8, 2003 /s/ Diana P. Herrmann - ---------------------- Title: President I, Joseph P. DiMaggio, certify that: 1. I have reviewed this report on Form N-CSR of Capital Cash Management 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: September 8, 2003 /s/ Joseph P. DiMaggio - ------------------------ Title: Chief Financial Officer EX-99.906CERT 3 ccmt906cert.txt 906 CERTIFICATIONS CERTIFICATION Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (subsections and (b) of section 1350, chapter 63 of title 18,United States Code), each of the undersigned officers of Capital Cash Management Trust, do hereby certify to such officer's knowledge, that: The report on Form N-CSR of Capital Cash Management Trust for the period ended June 30, 2003 (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 Capital Cash Management Trust. Dated: September 8, 2003 /s/ Lacy B. Herrmann --------------------- Lacy B. Herrmann Chairman of the Board Capital Cash Management Trust Dated: September 8, 2003 /s/ Diana P. Herrmann ---------------------- President Capital Cash Management Trust Dated: September 8, 2003 /s/ Joseph P. DiMaggio ----------------------- Chief Financial Officer Capital Cash Management 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 Capital Cash Management Trust and will be retained by Capital Cash Management 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-----