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
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Diana P. Herrmann
President
September 8, 2003
By: /s/ Joseph P. DiMaggio
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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.