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 811-4626
Cash Assets Trust
(Exact name of Registrant as specified in charter)
380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 697-6666
Date of fiscal year end: 3/31
Date of reporting period: 9/30/03
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
SERVING INVESTORS SINCE 1984
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
380 MADISON AVENUE, SUITE 2300 * NEW YORK, NY 10017
800-437-1020 * 212-697-6666
[Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing on a
twisted rope]
SEMI-ANNUAL REPORT
PACIFIC CAPITAL
CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2003 (UNAUDITED)
FACE
AMOUNT COMMERCIAL PAPER (27.7%) VALUE
- ----------- --------------------------------------------------------------------- ------------
BANKS (18.2%):
---------------------------------------------------------------------
$20,000,000 AES Shady Point LLC, 1.09%, 11/25/03, LOC: Bank of
America Corp. .................................................... $ 19,966,542
20,000,000 Citigroup Global Markets, 1.02%, 10/03/03 ........................... 19,998,866
20,000,000 Louis Dreyfus, 1.08%, 10/27/03, LOC: Barclays Bank Plc .............. 19,984,400
20,000,000 Met-Life Funding, 1.01%, 10/30/03 ................................... 19,983,728
------------
79,933,536
------------
BROKERAGE (4.5%):
---------------------------------------------------------------------
20,000,000 Bear Stearns Cos., Inc., 1.08%, 01/06/04 ............................ 19,941,800
------------
EDUCATION (5.0%):
---------------------------------------------------------------------
22,174,000 Stanford University, 1.04%, 01/06/04 ................................ 22,111,864
------------
Total Commercial Paper ........................................... 121,987,200
------------
CORPORATE NOTE (3.4%)
---------------------------------------------------------------------
INSURANCE (3.4%):
---------------------------------------------------------------------
15,000,000 Peoples Benefit Life Insurance, Variable Rate Note, 1.29%,
06/28/04 (a) ..................................................... 15,000,000
------------
Total Corporate Note ............................................. 15,000,000
------------
U.S. GOVERNMENT AGENCIES (67.6%)
---------------------------------------------------------------------
FEDERAL FARM CREDIT BANK (14.1%):
---------------------------------------------------------------------
27,000,000 1.00%, 10/01/03 ..................................................... 27,000,000
25,000,000 1.20%, 12/15/03 ..................................................... 24,937,500
10,000,000 1.21%, 01/06/04 ..................................................... 9,967,397
------------
61,904,897
------------
FEDERAL HOME LOAN BANK (53.5%):
---------------------------------------------------------------------
40,000,000 1.03%, 10/01/03 ..................................................... 40,000,000
10,000,000 0.98%, 10/03/03 ..................................................... 9,999,458
50,000,000 0.98%, 10/10/03 ..................................................... 49,987,751
25,000,000 1.03%, 10/15/03 ..................................................... 24,989,986
20,000,000 1.03%, 10/31/03 ..................................................... 19,982,833
20,000,000 1.02%, 11/07/03 ..................................................... 19,979,033
37,900,000 1.01%, 11/19/03 ..................................................... 37,847,640
$10,000,000 1.03%, 12/03/03 ..................................................... $ 9,981,975
10,000,000 0.98%, 12/19/03 ..................................................... 9,978,494
12,615,000 3.625%, 10/15/04 .................................................... 12,927,349
------------
235,674,519
------------
Total U.S. Government Agencies ................................... 297,579,416
------------
INVESTMENT COMPANY (1.3%)
---------------------------------------------------------------------
5,570,296 One Group Government Money Market Fund (I Shares) ................... 5,570,296
------------
Total Investment Company ......................................... 5,570,296
------------
Total Investments (Amortized Cost $440,136,912) (b) ......... 100.0% 440,136,912
Other assets less liabilities ............................... 0.0 (190,202)
------ ------------
NET ASSETS .................................................. 100.0% $439,946,710
====== ============
(a) Illiquid security. Considered illiquid because it may not be sold, and may
be redeemed only upon at least ninety days' notice to the issuer. As this
security is a variable rate note, the rate shown represents the rate in effect
at September 30, 2003, and the maturity date reflects the next rate change date.
(b) Cost for Federal tax purposes is identical.
LOC - Letter of Credit
See accompanying notes to financial statements
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2003 (UNAUDITED)
RATING
FACE MOODY'S/
AMOUNT MUNICIPAL BONDS (99.9%) S&P VALUE
- ----------- --------------------------------------------------------------- ---------- ------------
COLORADO (6.0%)
---------------------------------------------------------------
$ 2,800,000 Colorado Educational & Cultural Facilities Authority Revenue
Bonds (National Jewish Federation Board Program), Class
A1, 1.22%, 9/01/33, Daily Reset VRDN*, LOC: Bank of
America N.A. ............................................... VMIG1/NR $ 2,800,000
6,400,000 Colorado Housing & Financial Authority Revenue Bonds, Class
I, Series A-1, 1.07%, 10/01/30, Weekly Reset VRDN*,
SPA: FHLB .................................................. VMIG1/A-1+ 6,400,000
------------
9,200,000
------------
HAWAII (24.4%)
---------------------------------------------------------------
6,800,000 Department of Budget and Finance of the State of Hawaii
Special Purpose Revenue Bonds (The Queen's Health
System), Series A, 1.05%, 7/01/26, Weekly Reset VRDN*,
SPA: Bank of Nova Scotia ................................... VMIG1/A-1 6,800,000
5,150,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/04, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ............................................ VMIG1/A-1+ 5,150,000
800,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/05, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 800,000
3,830,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/07, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 3,830,000
2,150,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/10, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 2,150,000
1,520,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/15, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 1,520,000
5,645,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/17, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 5,645,000
1,645,000 Honolulu City & County, HI General Obligation Bonds, Series
A, 1.05%, 1/01/19, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 1,645,000
$ 1,400,000 Honolulu City & County, HI General Obligation Bonds, Series
B, 5.00%, 10/01/03 ......................................... Aa3/AA- $ 1,400,000
3,600,000 Honolulu City & County, HI General Obligation Bonds, Series
B, 1.05%, 1/01/05, Weekly Reset VRDN*, LOC: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 3,600,000
2,000,000 Honolulu City & County, HI General Obligation Bonds, Series
C, 1.30%, 12/01/06, Putable 12/04/03 @ 100, FGIC
Insured .................................................... VMIG1/A-1+ 2,000,000
3,000,000 Honolulu City & County, HI General Obligation Bonds, Series
C, 1.30%, 12/01/13, Putable 12/04/03 @ 100, FGIC
Insured .................................................... VMIG1/A-1+ 3,000,000
------------
37,540,000
------------
IDAHO (3.9%)
---------------------------------------------------------------
6,000,000 Idaho Health Facilities Authority Revenue Bonds (St. Lukes
Regional Medical Center Project), 1.20%, 5/01/22, Daily
Reset VRDN*, LOC: Bayerische Landesbank .................... VMIG1/NR 6,000,000
------------
ILLINOIS (9.8%)
---------------------------------------------------------------
3,000,000 Chicago, IL General Obligation Bonds, Series B, 1.11%,
1/01/37, Weekly Reset VRDN*, FGIC Insured .................. VMIG1/A-1+ 3,000,000
5,000,000 Chicago, IL Metropolitan Water Reclamation District-
Greater Chicago General Obligation Bonds, Series A,
1.10% , 12/01/31, Weekly Reset VRDN*, SPA: Bank of
America .................................................... VMIG1/A-1+ 5,000,000
7,000,000 Illinois Development Finance Authority Revenue Bonds (YMCA
of Metro Chicago Project), 1.22%, 6/01/29, Daily Reset
VRDN*, LOC: Harris Trust & Savings Bank .................... NR/A-1+ 7,000,000
------------
15,000,000
------------
INDIANA (2.5%)
---------------------------------------------------------------
3,780,000 Indianapolis, IN Economic Development Revenue Bonds (Jewish
Federation Campus), 1.05%, 4/01/05, Weekly Reset VRDN*,
LOC: Fifth Third Bank ...................................... VMIG1/NR 3,780,000
------------
LOUISIANA (0.6%)
---------------------------------------------------------------
$ 1,000,000 St. Charles Parish, LA Pollution Control Revenue Bonds
(Shell Oil Co. Project), Series A-AMT, 1.25%, 10/01/22,
Daily Reset VRDN* .......................................... VMIG1/A-1+ $ 1,000,000
------------
MICHIGAN (5.4%)
---------------------------------------------------------------
6,900,000 Eastern Michigan University, MI University Revenue Bonds,
1.20%, 6/01/27, Daily Reset VRDN*, FGIC Insured ............ NR/A-1+ 6,900,000
1,400,000 Northern Michigan University Revenue Bonds, 1.20%, 6/01/31,
Daily Reset VRDN*, FGIC Insured ............................ VMIG1/A-1+ 1,400,000
------------
8,300,000
------------
MINNESOTA (6.9%)
---------------------------------------------------------------
4,995,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co.
Project), Series A, 1.20%, 6/01/20, Daily Reset VRDN*,
LOC: ABN Amro Bank N.V. .................................... NR/A-1+ 4,995,000
200,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co.
Project), Series B, 1.20%, 6/01/13, Daily Reset VRDN*,
LOC: ABN Amro Bank N.V. .................................... NR/A-1+ 200,000
150,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co.
Project), Series C, 1.20%, 6/01/13, Daily Reset VRDN*,
LOC: ABN Amro Bank N.V. .................................... NR/A-1+ 150,000
1,790,000 Cohasset, MN Revenue Bonds (Minnesota Power & Light Co.
Project), Series D, 1.20%, 12/01/07, Daily Reset VRDN*,
LOC: ABN Amro Bank N.V. .................................... NR/A-1+ 1,790,000
980,000 Hennepin County, MN General Obligation Bonds, Series B,
0.95%, 12/01/20, Weekly Reset VRDN*, SPA: Landesbank
Hessen Thuringen ........................................... VMIG1/A-1+ 980,000
2,545,000 Hennepin County, MN General Obligation Bonds, Series C,
0.95%, 12/01/10, Weekly Reset VRDN*, SPA: Westdeutsche
Landesbank .................................................. VMIG1/A-1+ 2,545,000
------------
10,660,000
------------
MISSOURI (16.2%)
---------------------------------------------------------------
6,935,000 Kansas City, MO Industrial Development Authority Revenue
Bonds, (Ewing Marion Kaufman Foundation), 1.20%, 4/01/27,
Daily Reset VRDN* .......................................... NR/A-1+ 6,935,000
$ 700,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (St. Louis University),
Series A, 1.25%, 10/01/09, Daily Reset VRDN*,
SPA: Bank of America N.A. .................................. VMIG1/A-1+ $ 700,000
5,455,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (St. Louis University),
Series B, 1.25%, 10/01/24, Daily Reset VRDN*,
SPA: Bank of America N.A. .................................. VMIG1/A-1+ 5,455,000
3,000,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (Washington University),
Series C, 1.15%, 3/01/40, Daily Reset VRDN*,
SPA: JP Morgan Chase Bank .................................. VMIG1/A-1+ 3,000,000
3,800,000 Missouri State, Health & Educational Facilities
Authority Revenue Bonds (Washington University),
Series D, 1.15%, 9/01/30, Daily Reset VRDN*,
SPA: JP Morgan Chase Bank .................................. VMIG1/A-1+ 3,800,000
5,000,000 University of Missouri, Curators of the University of
Missouri System Facilities Revenue Bonds, Series
A, 1.22%, 11/01/32, Daily Reset VRDN* ...................... VMIG1/A-1+ 5,000,000
------------
24,890,000
------------
MONTANA (3.7%)
---------------------------------------------------------------
5,620,000 Montana State, Health Facilities Authority Revenue
Bonds, Series A, 1.10%, 12/01/15, Weekly Reset
VRDN*, FGIC Insured, SPA: Wells Fargo ...................... VMIG1/A-1+ 5,620,000
------------
NEW YORK (4.2%)
---------------------------------------------------------------
6,430,000 New York, NY City Transitional Finance Authority
Revenue Bonds, Series 3, 1.20%, 11/01/22, Daily
Reset VRDN*, SPA: Bank of New York ......................... VMIG1/A-1+ 6,430,000
------------
NORTH CAROLINA (1.7%)
---------------------------------------------------------------
1,475,000 Durham County, NC General Obligation Bonds (Public
Improvement Project), 1.15%, 2/01/13, Weekly Reset
VRDN*, SPA: Wachovia Bank of North Carolina ................ VMIG1/A-1 1,475,000
1,150,000 Durham, NC General Obligation Bonds (Public
Improvement Project), 1.15%, 2/01/09, Weekly Reset
VRDN*, SPA: Wachovia Bank of North Carolina ................ VMIG1/A-1 1,150,000
------------
2,625,000
------------
OHIO (2.6%)
---------------------------------------------------------------
$ 3,960,000 Ohio Housing Finance Agency Mortgage Revenue
Bonds (Residential Mortgage), Series E-AMT, 1.13%,
9/01/34, Weekly Reset VRDN*, SPA: FHLB ..................... VMIG1/NR $ 3,960,000
------------
PENNSYLVANIA (4.5%)
---------------------------------------------------------------
7,000,000 Philadelphia, PA Hospitals & Higher Education
Facilities Authority Revenue Bonds (Children's
Hospital Project), Series A, 1.22%, 2/15/14, Daily
Reset VRDN*, SPA: JP Morgan Chase Bank ..................... VMIG1/A-1+ 7,000,000
------------
TEXAS (1.4%)
---------------------------------------------------------------
2,200,000 West Side Calhoun County, TX Sewer & Solid Waste
Disposal Revenue Bonds (BP Chemicals, Inc. Project),
AMT, 1.25%, 4/01/31, Daily Reset VRDN* ..................... P-1/A-1+ 2,200,000
------------
UTAH (2.2%)
---------------------------------------------------------------
3,450,000 University of Utah, Auxiliary & Campus Facilities
Revenue Bonds, Series A, 1.07%, 4/01/27, Weekly
Reset VRDN*, SPA: Bank of Nova Scotia ...................... VMIG1/A-1 3,450,000
------------
VIRGINIA (3.9%)
---------------------------------------------------------------
6,000,000 University of Virginia Revenue Bonds, Series A,
1.02%, 6/01/34, Weekly Reset VRDN* ......................... VMIG1/A-1+ 6,000,000
------------
Total Municipal Bonds ................................... 153,655,000
------------
Total Investments (Amortized Cost
$153,655,000) (a) .................................... 99.9% 153,655,000
Other assets less liabilities ........................... 0.1 135,165
------ ------------
Net Assets .............................................. 100.0% $153,790,165
====== ============
* Variable rate demand notes (VRDNs) are payable upon demand within the same day
for securities with daily liquidity or seven days for securities with weekly
liquidity.
(a) Cost for Federal tax purposes is identical.
AMT - Alternative Minimum Tax
FGIC - Financial Guaranty Insurance Corp.
FHLB - Federal Home Loan Bank
LOC - Letter of Credit
NR - No rating
SPA - Standby Bond Purchase Agreement
See accompanying notes to financial statements.
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
STATEMENT OF INVESTMENTS
SEPTEMBER 30, 2003 (UNAUDITED)
FACE
AMOUNT U.S. GOVERNMENT AGENCIES (98.8%) VALUE
- ----------- ------------------------------------------------------------------------- ------------
FEDERAL FARM CREDIT BANK (12.7%):
-------------------------------------------------------------------------
$70,000,000 1.00%, 10/01/03 ......................................................... $ 70,000,000
25,000,000 1.20%, 12/15/03 ......................................................... 24,937,500
10,000,000 1.21%, 01/06/04 ......................................................... 9,967,397
------------
104,904,897
------------
FEDERAL HOME LOAN BANK (86.1%):
-------------------------------------------------------------------------
60,000,000 1.03%, 10/01/03 ......................................................... 60,000,000
25,000,000 0.98%, 10/03/03 ......................................................... 24,998,646
40,000,000 1.01%, 10/08/03 ......................................................... 39,992,144
50,000,000 0.98%, 10/10/03 ......................................................... 49,987,750
30,000,000 1.30%, 10/15/03 ......................................................... 29,987,983
79,300,000 1.02%, 10/17/03 ......................................................... 79,263,874
25,000,000 1.03%, 10/24/03 ......................................................... 24,983,549
32,650,000 1.03%, 10/31/03 ......................................................... 32,621,975
75,000,000 1.02%, 11/07/03 ......................................................... 74,921,375
30,000,000 1.04%, 11/12/03 ......................................................... 29,963,600
90,000,000 1.01%, 11/19/03 ......................................................... 89,875,664
25,828,000 1.03%, 11/26/03 ......................................................... 25,786,618
70,000,000 1.01%, 11/28/03 ......................................................... 69,886,094
47,000,000 1.03%, 12/03/03 ......................................................... 46,915,930
30,000,000 1.01%, 12/05/03 ......................................................... 29,945,021
------------
709,130,223
------------
Total U.S. Government Agencies ....................................... 814,035,120
------------
INVESTMENT COMPANY (1.3%)
-------------------------------------------------------------------------
10,466,856 One Group Government Money Market Fund (I Shares) ....................... 10,466,856
------------
Total Investment Company ............................................. 10,466,856
------------
Total Investments (Amortized Cost
$824,501,976) (a) ...................................... 100.1% 824,501,976
Other assets less liabilities ............................. (0.1) (621,324)
------ ------------
NET ASSETS ................................................ 100.0% $823,880,652
====== ============
(a) Cost for Federal tax purposes is identical.
See accompanying notes to financial statements
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2003 (UNAUDITED)
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
------------ ------------ ------------
ASSETS:
Investments at value and amortized cost (note 2) ........ $440,136,912 $153,655,000 $824,501,976
Cash .................................................... -- 11,511 --
Interest receivable ..................................... 228,355 244,615 8,872
Other assets ............................................ 23,779 9,161 42,166
------------ ------------ ------------
Total Assets ......................................... 440,389,046 153,920,287 824,553,014
------------ ------------ ------------
LIABILITIES:
Dividends payable ....................................... 293,386 92,363 479,283
Adviser and Administrator fees payable .................. 45,259 3,944 22,800
Distribution fees payable ............................... 24,669 11,187 97,965
Accrued expenses ........................................ 79,022 22,628 72,314
------------ ------------ ------------
Total Liabilities .................................... 442,336 130,122 672,362
------------ ------------ ------------
NET ASSETS .............................................. $439,946,710 $153,790,165 $823,880,652
============ ============ ============
NET ASSETS CONSIST OF:
Capital Stock - Authorized an unlimited number of shares,
par value $.01 per share ............................. $ 4,399,342 $ 1,537,880 $ 8,238,127
Additional paid-in capital .............................. 435,534,666 152,376,781 815,574,670
Undistributed (overdistributed) net investment income ... 12,119 (124,534) 67,845
Undistributed gain (loss) ............................... 583 38 10
------------ ------------ ------------
$439,946,710 $153,790,165 $823,880,652
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
Original Shares Class:
Net Assets ........................................... $318,749,194 $103,459,928 $268,357,596
============ ============ ============
Shares outstanding ................................... 318,968,517 103,458,469 268,328,422
============ ============ ============
Net asset value per share ............................ $ 1.00 $ 1.00 $ 1.00
============ ============ ============
Service Shares Class:
Net Assets ........................................... $121,197,516 $ 50,330,237 $555,523,056
============ ============ ============
Shares outstanding ................................... 120,965,719 50,329,514 555,484,237
============ ============ ============
Net asset value per share ............................ $ 1.00 $ 1.00 $ 1.00
============ ============ ============
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2003 (UNAUDITED)
CASH TAX-FREE GOVERNMENT
FUND FUND FUND
---------- --------- -----------
INVESTMENT INCOME:
Interest income ...................................... $2,654,556 $ 861,226 $ 4,219,132
---------- --------- -----------
EXPENSES:
Investment Adviser fees (note 3) ..................... 834,967 244,329 1,242,658
Administrator fees (note 3) .......................... 324,876 86,371 285,403
Distribution fees (note 3) ........................... 153,044 68,299 595,001
Trustees' fees and expenses .......................... 57,541 25,802 64,729
Legal fees ........................................... 23,590 9,371 35,796
Insurance ............................................ 20,931 7,504 34,704
Shareholders' reports ................................ 20,114 3,880 16,411
Fund accounting fees ................................. 15,033 15,045 14,998
Auditing fees ........................................ 9,451 9,764 10,378
Registration fees and dues ........................... 8,081 2,850 9,169
Transfer and shareholder servicing agent fees ........ 4,849 9,358 7,811
Custodian fees ....................................... 2,920 5,530 2,825
Miscellaneous ........................................ 4,896 3,128 18,325
---------- --------- -----------
Total expenses ....................................... 1,480,293 491,231 2,338,208
Advisory fees contractual reduction (note 3) ......... (588,451) (204,524) (1,041,158)
Administrative fees contractual reduction (note 3) ... (228,960) (72,300) (239,124)
Expenses paid indirectly (note 5) .................... -- -- (2,179)
---------- --------- -----------
Net expenses ......................................... 662,882 214,407 1,055,747
---------- --------- -----------
Net investment income ................................... 1,991,674 646,819 3,163,385
Net realized gain (loss) from securities transactions ... 583 38 10
---------- --------- -----------
Net change in net assets resulting from operations ...... $1,992,257 $ 646,857 $ 3,163,395
========== ========= ===========
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CASH FUND TAX-FREE FUND
------------------------------------ -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 2003 YEAR ENDED SEPTEMBER 30, 2003 YEAR ENDED
(UNAUDITED) MARCH 31,2003 (UNAUDITED) MARCH 31, 2003
------------------ --------------- ------------------ --------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income................ $ 1,991,674 $ 6,102,262 $ 646,819 $ 1,783,725
Net realized gain (loss)
from securities transactions...... 583 5,968 38 12
------------- --------------- ------------- -------------
Change in net assets
resulting from operations......... 1,992,257 6,108,230 646,857 1,783,737
------------- --------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares................... (1,577,413) (4,649,971) (479,211) (1,316,278)
Service Shares.................... (414,261) (1,452,291) (167,608) (466,859)
------------- --------------- ------------- -------------
Total dividends to shareholders
from net investment income........ (1,991,674) (6,102,262) (646,819) (1,783,137)
------------- --------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares................... 314,167,783 880,694,410 66,531,280 163,052,761
Service Shares.................... 116,893,947 252,007,742 33,646,622 56,481,358
------------- --------------- ------------- -------------
431,061,730 1,132,702,152 100,177,902 219,534,119
------------- --------------- ------------- -------------
Reinvested dividends and
distributions:
Original Shares................... 31,199 86,494 40,552 170,364
Service Shares.................... 433,929 1,514,672 178,029 468,256
------------- --------------- ------------- -------------
465,128 1,601,166 218,581 638,620
------------- --------------- ------------- -------------
Cost of shares redeemed:
Original Shares................... (356,333,007) (873,207,779) (93,238,691) (133,496,270)
Service Shares.................... (119,305,294) (275,974,181) (39,836,923) (52,944,249)
------------- --------------- ------------- -------------
(475,638,301) (1,149,181,960) (133,075,614) (186,440,519)
------------- --------------- ------------- -------------
Change in net assets from
capital share transactions..... (44,111,443) (14,878,642) (32,679,131) 33,732,220
------------- --------------- ------------- -------------
Total change in net assets........... (44,110,860) (14,872,674) (32,679,093) 33,732,820
NET ASSETS:
Beginning of period............... 484,057,570 498,930,244 186,469,258 152,736,438
------------- --------------- ------------- -------------
End of period..................... $ 439,946,710 $ 484,057,570 $ 153,790,165 $ 186,469,258
============= =============== ============= =============
GOVERNMENT FUND
------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 2003 YEAR ENDED
(UNAUDITED) MARCH 31, 2003
------------------ ---------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income................ $ 3,163,385 $ 8,345,327
Net realized gain (loss)
from securities transactions...... 10 218
--------------- ---------------
Change in net assets
resulting from operations......... 3,163,395 8,345,545
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Original Shares................... (1,422,223) (3,725,589)
Service Shares.................... (1,741,162) (4,619,738)
Total dividends to shareholders --------------- ---------------
from net investment income........ (3,163,385) (8,345,327)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS
(at $1.00 per share):
Proceeds from shares sold:
Original Shares................... 516,497,422 759,927,968
Service Shares.................... 896,214,491 1,404,544,075
--------------- ---------------
1,412,711,913 2,164,472,043
--------------- ---------------
Reinvested dividends and
distributions:
Original Shares................... 26,230 52,314
Service Shares.................... 1,745,582 4,740,217
--------------- ---------------
1,771,812 4,792,531
--------------- ---------------
Cost of shares redeemed:
Original Shares................... (518,231,858) (795,938,638)
Service Shares.................... (790,164,451) (1,418,737,480)
--------------- ---------------
(1,308,396,309) (2,214,676,118)
--------------- ---------------
Change in net assets from
capital share transactions..... 106,087,416 (45,411,544)
--------------- ---------------
Total change in net assets........... 106,087,426 (45,411,326)
NET ASSETS:
Beginning of period............... 717,793,226 763,204,552
--------------- ---------------
End of period..................... $ 823,880,652 $ 717,793,226
=============== ===============
See accompanying notes to financial statements.
THE PACIFIC CAPITAL FUNDS
OF CASH ASSETS TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Cash Assets Trust (the "Trust") was organized on May 7, 1984 as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end investment company.
The Trust consists of the following three investment portfolios (referred
to individually as a "Fund" and collectively as the "Funds"): Pacific Capital
Cash Assets Trust ("Cash Fund") (a diversified portfolio which commenced
operations on December 5, 1984), Pacific Capital Tax-Free Cash Assets Trust
("Tax-Free Fund") (a non-diversified portfolio which commenced operations on
April 4, 1989), and Pacific Capital U.S. Government Securities Cash Assets Trust
("Goverment Fund") (a diversified portfolio which commenced operations on April
4, 1989). The Trust is authorized to issue for each Fund an unlimited number of
shares of $.01 par value in two classes of shares; the Original Shares Class and
the Service Shares Class. The Original Shares Class includes all currently
outstanding shares of each Fund that were issued prior to January 20, 1995, the
date on which the Capital structure was changed to include two classes rather
than one. The two classes of shares are substantially identical, except that
Service Shares bear the fees that are payable under the Trust's Distribution
Plan.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America for investment companies.
a) PORTFOLIO VALUATION: Each Fund's portfolio securities are valued by the
amortized cost method permitted in accordance with Rule 2a-7 under the 1940
Act, which, after considering accrued interest thereon, approximates
market. Under this method, a portfolio security is valued at cost adjusted
for amortization of premiums and accretion of discounts. Amortization of
premiums and accretion of discounts are included in interest income.
b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses from
securities transactions are reported on the identified cost basis. Interest
income is recorded daily on the accrual basis and is adjusted for
amortization of premiums and accretion of discounts as discussed in the
preceding paragraph.
c) DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES: The net asset
value per share for each class of the Funds' shares is determined as of
4:00 p.m. New York time on each day that the New York Stock Exchange and
the custodian are open by dividing the value of the assets of the Fund
allocable to that class less Fund liabilities allocable to the class and
any liabilities charged directly to the class, exclusive of surplus, by the
total number of shares of the class outstanding. Investment income,
realized and unrealized gains and losses, if any, and expenses other than
class specific expenses, are allocated daily to each class of shares based
upon the proportion of net assets of each class. Class specific expenses
are borne by the affected class. Service fee payments under Rule 12b-1 are
borne solely by and charged to the Service Shares based on net assets of
that class.
d) FEDERAL INCOME TAXES: It is the policy of each Fund to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. Each Fund
intends to make distributions of income and securities profits sufficient
to relieve it from all, or substantially all, Federal income and excise
taxes.
e) REPURCHASE AGREEMENTS: It is each Fund's policy to monitor closely the
creditworthiness of all firms with which it enters into repurchase
agreements, and to take possession of, or otherwise perfect its security
interest in, securities purchased under agreements to resell. The
securities purchased under agreements to resell are marked to market every
business day in order to compare the value of the collateral to the amount
of the "loan" (repurchase agreements being defined as "loans" in the 1940
Act), including the accrued interest earned thereon. If the value of the
collateral is less than 102% of the loan plus the accrued interest thereon,
additional collateral is required from the borrower.
f) USE OF ESTIMATES: The preparation of financial statements in conformity
with 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:
Asset Management Group of Bank of Hawaii (the "Adviser"), serves as
Investment Adviser to the Trust. In this role, under Investment Advisory
Agreements, the Adviser supervises the Funds' investments and provides various
services. The Funds also have Administration Agreements with Aquila Management
Corporation (the "Administrator") to provide all administrative services to the
Funds other than those relating to the investment portfolios. Specific details
as to the nature and extent of the services provided by the Adviser and the
Administrator are more fully defined in the Prospectus and Statement of
Additional Information of the Funds. For their services, the Adviser and the
Administrator each receive a fee which is payable monthly and computed as of the
close of business each day on the net assets of each Fund at the following
annual rates:
Pacific Capital Cash Assets Trust - On net assets up to $325 million, the
fee is paid to the Adviser and the Administrator at the annual rate of 0.33% and
0.17%, respectively, and on net assets above that amount at the annual rate of
0.43% and 0.07%, respectively.
Pacific Capital Tax-Free Cash Assets Trust - On net assets up to $95
million, the fee is paid to the Adviser and the Administrator at the annual rate
of 0.27% and 0.13%, respectively, and on net assets above that amount at the
annual rate of 0.33% and 0.07%, respectively.
Pacific Capital U.S. Government Securities Cash Assets Trust - On net
assets up to $60 million, the fee is paid to the Adviser and the Administrator
at the annual rate of 0.27% and 0.13%, respectively, and on net assets above
that amount at the annual rate of 0.33% and 0.07%, respectively.
The Adviser and the Administrator each agrees that the above fees shall be
reduced, but not below zero, by an amount equal to its proportionate share
(determined on the basis of the respective fees computed as described above) of
the amount, if any, by which the total expenses of a Fund in any fiscal year,
exclusive of taxes, interest and brokerage fees, shall exceed the lesser of (i)
2.5% of the first $30 million of average annual net assets of the Fund plus 2%
of the next $70 million of such assets and 1.5% of its average annual net assets
in excess of $100 million, or (ii) 25% of the Fund's total annual investment
income. The payment of the above fees at the end of any month will be reduced or
postponed so that at no time will there be any accrued but unpaid liability
under this expense limitation. For the period April 1, 2002 through September
30, 2003, advisory and administrative fees have been reduced by a contractual
reduction of fees (see ii above) due to a low interest rate environment.
Advisory and administrative fees may be recouped if interest rates increase.
Contractual reduction of fees, if any, are calculated on a fiscal year basis.
For the six months ended September 30, 2003:
Pacific Capital Cash Assets Trust incurred advisory and administration
fees of $834,967 and $324,876; due to the expense limitation, such
fees were reduced by $588,451 and $228,960, respectively.
Pacific Capital Tax-Free Cash Assets Trust incurred advisory and
administration fees of $244,329 and $86,371; due to the expense
limitation, such fees were reduced by $204,524 and $72,300,
respectively.
Pacific Capital U.S. Government Securities Cash Assets Trust incurred
advisory and administration fees of $1,242,658 and $285,403; due to
the expense limitation, such fees were reduced by $1,041,158 and
$239,124, respectively.
b) DISTRIBUTION AND SERVICE FEES:
Each Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. A part of the Plan authorizes payment of certain
distribution or service fees by the Service Shares Class of the Fund. Such
payments are made to "Designated Payees" - broker-dealers, other financial
institutions and service providers who have entered into appropriate agreements
with the Distributor and which have rendered assistance in the distribution
and/or retention of the Funds' Service Shares or in the servicing of Service
Share accounts. The total payments under this part of a Fund's Plan may not
exceed 0.25% of its average annual assets represented by Service Shares. No such
payments will be made by the Original Share Class. Specific details about each
Plan are more fully defined in the Prospectus and Statement of Additional
Information of the Funds.
Under a Distribution Agreement, Aquila Distributors, Inc. (the
"Distributor") serves as the exclusive distributor of the Funds' shares. No
compensation or fees are paid to the Distributor for such share distribution.
c) OTHER RELATED PARTY TRANSACTIONS:
For the six months ended September 30, 2003, the following amounts were
accrued for legal fees: Cash Fund $23,590; Tax-Free Fund $9,371; Government Fund
$35,796. Of these amounts, $22,647, $8,969 and $34,331, respectively, were
allocable to Hollyer Brady Smith &Hines LLP, counsel to the Fund, for legal
services in conjunction with the Fund's ongoing operations. The Secretary of the
Fund is a Partner of Hollyer Brady Smith & Hines LLP.
4. GUARANTEES OF CERTAIN COMMERCIAL PAPER
Various banks and other institutions have issued irrevocable letters of
credit or guarantees for the benefit of the holders of certain commercial paper.
Payment at maturity of principal and interest of certain commercial paper held
by the Funds is supported by such letters of credit or guarantees.
5. EXPENSES
The Funds have negotiated an expense offset arrangement with their
custodian, wherein they receive credit toward the reduction of custodian fees
and other expenses whenever there are uninvested cash balances. The Statements
of Operations reflect the total expenses before any offset, the amount of offset
and the net expenses. It is the general intention of the Funds to invest, to the
extent practicable, some or all of cash balances in income-producing assets
rather than leave cash on deposit.
6. PORTFOLIO ORIENTATION
Since the Pacific Capital Tax-Free Cash Assets Trust has a significant
portion of its investments in obligations of issuers within Hawaii, it is
subject to possible risks associated with economic, political, or legal
developments or industrial or regional matters specifically affecting Hawaii and
whatever effects these may have upon Hawaii issuers' ability to meet their
obligations.
7. DISTRIBUTIONS
The Funds declare dividends daily from net investment income and make
payments monthly in additional shares at the net asset value per share, in cash,
or a combination of both, at the shareholder's option.
PACIFIC CAPITAL
CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ....................... 0.005 0.01 0.03 0.06 0.05 0.05
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.005) (0.01) (0.03) (0.06) (0.05) (0.05)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.46%* 1.35% 2.52% 5.90% 4.89% 4.90%
Ratios/supplemental data
Net assets, end of period (in millions) ..... $319 $361 $353 $364 $513 $418
Ratio of expenses to average net assets ..... 0.22%** 0.36% 0.58% 0.57% 0.56% 0.57%
Ratio of net investment income to
average net assets ....................... 0.92%** 1.34% 2.51% 5.77% 4.80% 4.79%
The expense and net investment income ratios without the effect of the Adviser's and
Administrator's contractual cap on fees were (note 3):
Ratio of expenses to average net assets ..... 0.57%** 0.58% - - - -
Ratio of net investment income to
average net assets ....................... 0.57%** 1.12% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ..... 0.22%** 0.36% 0.57% 0.57% 0.56% 0.56%
SERVICE SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ....................... 0.003 0.01 0.02 0.05 0.05 0.05
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.003) (0.01) (0.02) (0.05) (0.05) (0.05)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.34%* 1.09% 2.27% 5.63% 4.63% 4.64%
Ratios/supplemental data
Net assets, end of period (in millions) ..... $121 $123 $146 $221 $174 $163
Ratio of expenses to average net assets ..... 0.47%** 0.61% 0.83% 0.82% 0.81% 0.81%
Ratio of net investment income to
average net assets ....................... 0.67%** 1.10% 2.36% 5.49% 4.53% 4.51%
The expense and net investment income ratios without the effect of the Adviser's and
Administrator's contractual cap on fees were (note 3):
Ratio of expenses to average net assets ..... 0.82%** 0.83% - - - -
Ratio of net investment income to
average net assets ....................... 0.32%** 0.88% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ..... 0.47%** 0.61% 0.82% 0.82% 0.81% 0.81%
- ----------
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
PACIFIC CAPITAL
TAX-FREE CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ----- ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations: .............
Net investment income ....................... 0.004 0.01 0.02 0.04 0.03 0.03
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.004) (0.01) (0.02) (0.04) (0.03) (0.03)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.43%* 1.15% 2.00% 3.58% 2.95% 2.91%
Ratios/supplemental data
Net assets, end of period (in millions)...... $103 $130 $100 $101 $100 $83
Ratio of expenses to average net assets...... 0.18%** 0.28% 0.51% 0.53% 0.52% 0.54%
Ratio of net investment income to average
net assets ............................... 0.87%** 1.13% 1.94% 3.50% 2.93% 2.85%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ..... 0.51%** 0.50% - - - -
Ratio of net investment income to average
net assets ............................... 0.53%** 0.90% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets...... 0.18%** 0.27% 0.51% 0.53% 0.52% 0.53%
SERVICE SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations: .............
Net investment income ....................... 0.003 0.01 0.02 0.03 0.03 0.03
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.003) (0.01) (0.02) (0.03) (0.03) (0.03)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.31%* 0.90% 1.75% 3.32% 2.70% 2.65%
Ratios/supplemental data
Net assets, end of period (in millions)...... $50 $56 $52 $54 $51 $48
Ratio of expenses to average net assets...... 0.43%** 0.53% 0.77% 0.78% 0.77% 0.79%
Ratio of net investment income to average
net assets ............................... 0.61%** 0.89% 1.77% 3.26% 2.66% 2.64%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets ..... 0.76%** 0.76% - - - -
Ratio of net investment income to average
net assets ............................... 0.28%** 0.66% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets...... 0.43%** 0.52% 0.77% 0.78% 0.77% 0.78%
- ----------
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
PACIFIC CAPITAL
U.S. GOVERNMENT SECURITIES CASH ASSETS TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
ORIGINAL SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ....................... 0.005 0.01 0.03 0.06 0.05 0.04
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.005) (0.01) (0.03) (0.06) (0.05) (0.04)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.49%* 1.34% 2.73% 5.88% 4.83% 4.80%
Ratios/supplemental data
Net assets, end of period (in millions)...... $268 $270 $306 $151 $166 $140
Ratio of expenses to average net assets...... 0.12%** 0.25% 0.45% 0.47% 0.49% 0.49%
Ratio of net investment income to average
net assets ............................... 0.99%** 1.34% 2.47% 5.73% 4.73% 4.70%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets...... 0.46%** 0.46% - - - -
Ratio of net investment income to average
net assets ............................... 0.65%** 1.12% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets...... 0.12%** 0.24% 0.45% 0.47% 0.49% 0.49%
SERVICE SHARES
---------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/03 ------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period ........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ....................... 0.004 0.01 0.02 0.05 0.04 0.04
------- ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ........ (0.004) (0.01) (0.02) (0.05) (0.04) (0.04)
------- ------ ------ ------ ------ ------
Net asset value, end of period ................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ====== ====== ====== ====== ======
Total return ................................... 0.37%* 1.09% 2.48% 5.62% 4.56% 4.54%
Ratios/supplemental data
Net assets, end of period (in millions)...... $556 $448 $457 $332 $293 $214
Ratio of expenses to average net assets...... 0.37%** 0.49% 0.70% 0.72% 0.74% 0.74%
Ratio of net investment income to average
net assets ............................... 0.73%** 1.08% 2.39% 5.47% 4.50% 4.42%
The expense and net investment income ratios without the effect of the Adviser's and Administrator's
contractual cap on fees were (note 3):
Ratio of expenses to average net assets...... 0.71%** 0.71% - - - -
Ratio of net investment income to average
net assets ............................... 0.40%** 0.86% - - - -
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets...... 0.37%** 0.49% 0.70% 0.72% 0.74% 0.74%
- ----------
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
INVESTMENT ADVISER
Asset Management Group of Bank of Hawaii
P.O. Box 3170 * Honolulu, Hawaii 96802
ADMINISTRATOR
Aquila Management Corporation
380 Madison Avenue, Suite 2300 * New York, New York 10017
BOARD OF TRUSTEES
Lacy B. Herrmann, Chairman
William M. Cole
Thomas W. Courtney
Richard W. Gushman, II
Stanley W. Hong
Theodore T. Mason
Russell K. Okata
Douglas Philpotts
Oswald K. Stender
OFFICERS
Diana P. Herrmann, President
Charles E. Childs, III, Senior Vice President
Sherri Foster, Vice President
Joseph P. DiMaggio, Chief Financial Officer and Treasurer
Edward M.W. Hines, Secretary
DISTRIBUTOR
Aquila Distributors, Inc.
380 Madison Avenue, Suite 2300 * New York, New York 10017
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC Inc.
760 Moore Road o King of Prussia, Pennsylvania 19406
CUSTODIAN
Bank One Trust Company, N.A.
1111 Polaris Parkway * Columbus, Ohio 43240
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue * New York, New York 10017
Further information is contained in the Prospectus
which must precede or accompany this report.
SEMI-ANNUAL
REPORT
SEPTEMBER 30, 2003
THE PACIFIC CAPITAL FUNDS
OF
CASH ASSETS TRUST
PACIFIC CAPITAL CASH ASSETS TRUST
PACIFIC CAPITAL TAX-FREE
CASH ASSETS TRUST
PACIFIC CAPITAL U.S. GOVERNMENT
SECURITIES CASH ASSETS TRUST
[Logo of The Pacific Capital Funds of Cash Assets Trust: a lion standing
on a twisted rope]
A CASH MANAGEMENT
INVESTMENT
ITEM 2. CODE OF ETHICS.
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)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of
1940.
(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized.
CASH ASSETS TRUST
By: /s/ Lacy B. Herrmann
- ---------------------------------
Chairman of the Board
December 8, 2003
By: /s/ Diana P. Herrmann
- ---------------------------------
President
December 8, 2003
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer
December 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
December 8, 2003
By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
President
December 8, 2003
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer
December 8, 2003
CASH ASSETS 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.